Advance Music Corp. v. American Tobacco Co.

268 A.D. 707, 53 N.Y.S.2d 337, 65 U.S.P.Q. (BNA) 57, 1945 N.Y. App. Div. LEXIS 5294
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 23, 1945
StatusPublished
Cited by10 cases

This text of 268 A.D. 707 (Advance Music Corp. v. American Tobacco Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advance Music Corp. v. American Tobacco Co., 268 A.D. 707, 53 N.Y.S.2d 337, 65 U.S.P.Q. (BNA) 57, 1945 N.Y. App. Div. LEXIS 5294 (N.Y. Ct. App. 1945).

Opinion

Cohn, J.

The action is by a music publisher against two defendants, The American Tobacco Company and its advertising agency. It arises out of plaintiff’s claim of injury from allegedly unfair opinions expressed by defendants in their weekly nationwide radio program “ Your Hit Parade ” wherein they announce the nine or ten most popular songs in the country but, despite their merit, exclude from such list of popular songs those published by plaintiff. The original complaint was dismissed for legal insufficiency, with leave to amend. [709]*709(183 Misc. 645, Hecht, J.) The appeal is from an order denying a motion to dismiss the amended complaint.

The amended pleading contains three causes of action. The first is for an injunction against the continuance of the radio program; the second attempts to state a cause of action to recover damages for fraud, and the third, also for damages, is based on the alleged negligent conduct of defendants.

In the first cause of action, it is alleged that the program “ Your Hit Parade ” consists of the rendition of the nine or ten most popular songs of the nation, as determined, according to defendants’ representations made in the presentation of the programs, by an accurate survey conducted throughout the nation; that the songs in each broadcast are rated by number; that defendants also prepare and widely distribute to music stores selling sheet music and others, lists compiled from the current “ Your Hit Parade ” selections, which lists are prominently displayed; that the program conducted each week does not reflect the ten most popular songs of the nation; that defendants, without regard to a survey, choose compositions arbitrarily and that songs published by plaintiff, though.entitled by all proper standards to be listed among the nation’s ten most popular songs, are, nevertheless, omitted from “ Your Hit Parade ”; that the program has become in the minds of the public, music jobbers and dealers, motion picture studios, etc., a criterion for determining what are the nine or ten most popular songs in the country for. the particular period in question. The representations and conduct of the defendants, plaintiff asserts, are of a nature to cause and in fact have caused damage to plaintiff. In this cause of action plaintiff seeks a permanent injunction restraining defendants from advertising that the nine or ten songs performed on its weekly program constitute the nine or ten most popular songs of the week or that the selection is the result of an extensive and accurate survey, or from making any announcements, advertisements or broadcasts to that effect.

Por the second cause of action plaintiff restates allegations of the first, adding an allegation that the acts of defendants are fraudulent in purpose, false and malicious, constitute deception to the public, are made with an intent to deceive, and demands damages for $100,000.

After repeating the prior allegations of the complaint, plaintiff, in the third cause of action, declares that defendants hold themselves out as qualified to make and as having made a true survey to ascertain the nine or ten most popular songs of the [710]*710nation each week in the relative order of popularity; that persons and corporations rely upon the defendants’ undertaking to make an accurate survey; that defendants are under a duty to the plaintiff and to others to make a true survey in fact and to perform each week the compositions which are in fact the nine or ten most popular songs of the nation for the week in the true order of their popularity; that the failure of defendants to act accordingly constitutes gross negligence; that the plaintiff has been free from fault and seeks damage for the sum of $100,000 upon this cause of action.

In upholding the complaint as making out a wrong which the law recognizes as actionable, the Special Term stated that “ by undertaking to act and speak with reference thereto [the popularity of songs] they [defendants] placed themselves under the obligation of speaking and acting honestly and with reasonable care.” (183 Misc. 855, 857.)

Though a negligent statement may be the basis of recovery of damage, a cause of action exists only in favor of those who were expected to and actually do rely upon such statements to their damage. (International Products Co. v. Erie R. R. Co., 244 N. Y. 331; Glanzer v. Shepard, 233 N. Y. 236; Nichols v. Clark, MacMullen & Riley, Inc., 261 N. Y. 118, 125.) Here there is no claim that plaintiff in any manner relied upon defendants’ alleged misstatements, or that it acted upon any such misstatements to its damage, or that defendants could have anticipated that it would do so. The pertinent rule is set forth in International Products Co. v. Erie R. R. Co., (supra) at page 337, as follows: “ Not every casual response, not every idle word, however damaging the result, gives rise to a cause of action. * * * Liability in such cases arises only where there is a duty, if one speaks at all, to give the correct information. And that involves many considerations. There must be knowledge or its equivalent that the information is desired for a serious purpose; that he to whom it is given intends to rely and act upon it; that if false or erroneous he will because of it be injured in person or property. Finally the relationship of the parties, arising out of contract or otherwise, must be such that in morals and good conscience the one has the right to rely upon the other for information, and the other giving the information owes a duty to give it with care.” In Courteen Seed Co. v. Hong Kong & S. B. Co. (245 N. Y. 377, at p. 381) the court (Pound, J.) reiterated the established principle in the following language: The court has had to deal recently with cases involving liability for information negli[711]*711gently given. They all rest on the principle that negligent words are not actionable unless they are uttered directly, with knowledge or notice that they will be acted on, to one to whom the speaker is bound by some relation of duty, arising out of public calling, contract or otherwise, to act with care if he acts at all. ’ ’ The rule thus enunciated was specifically approved in Ultramares Corp. v. Touche (255 N. Y. 170, 185). To the same effect see, also, Jaillet v. Cashman (115 Misc. 383, affd. 202 App. Div. 805, affd. 235 N. Y. 511).

In the complaint there are, it is true, allegations to the effect that other members of the public relied upon defendants ’ negligent words. Defendants are charged with misleading those with whom plaintiff does business, by expressing the opinion that certain songs are more popular than those published by plaintiff. However, plaintiff may not sue on behalf of the general public or on behalf of other music publishers for injury sustained by the general public or the other music publishers. When an injury is committed against the public, that is not a matter for complaint by plaintiff. (New York & R. Cement Co. v. Coplay Cement Co., 44 F. 277; American Washboard Co. v. Saginaw Mfg. Co., 103 F. 281.)

For the foregoing reasons and for those hereinafter stated, we think that the complaint is insufficient and should have been dismissed. Giving to the allegations of the complaint every intendment and fair inference, as indeed we must (Dyer v. Broadway Central Bank, 252 N. Y.

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268 A.D. 707, 53 N.Y.S.2d 337, 65 U.S.P.Q. (BNA) 57, 1945 N.Y. App. Div. LEXIS 5294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advance-music-corp-v-american-tobacco-co-nyappdiv-1945.