Allied Artists Pictures Corp. v. Rhodes

473 F. Supp. 560, 17 Ohio Op. 3d 208, 1979 U.S. Dist. LEXIS 11540
CourtDistrict Court, S.D. Ohio
DecidedJune 22, 1979
DocketC-2-78-1031
StatusPublished
Cited by23 cases

This text of 473 F. Supp. 560 (Allied Artists Pictures Corp. v. Rhodes) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Artists Pictures Corp. v. Rhodes, 473 F. Supp. 560, 17 Ohio Op. 3d 208, 1979 U.S. Dist. LEXIS 11540 (S.D. Ohio 1979).

Opinion

MEMORANDUM AND ORDER

DUNCAN, District Judge.

Preliminary Statement

This is an action for declaratory and injunctive relief by Allied Artists Pictures Corporation and nine other companies engaged in the business of producing and distributing motion pictures. Defendants are James A. Rhodes, the Governor of Ohio; Ted W. Brown and Richard F. Celeste, the former Secretary of State and Lieutenant Governor respectively; and Vernal G. Riffe, Jr., Speaker of the Ohio House of Representatives.

Plaintiffs seek to have declared unconstitutional Sections 1333.05,1333.06 and 1833.-07 of the Ohio Revised Code (hereafter referred to as the Act). This Act, 1 which became effective on October 23, 1978, regu *562 lates the procedures by which motion picture distributors and exhibitors contract for the rights to exhibit motion pictures. The Act prohibits the practice known as “blind bidding” under which the distributors solicit bids for their films from exhibitors before the exhibitors have had an opportunity to “trade screen” or preview the film, § 1333.-06; and also regulates the bidding procedure itself so as to provide exhibitors with liberal notice and inspection rights. § 1333.07.

*563 Plaintiffs ask the Court to declare the Act unconstitutional and to enjoin its enforcement, claiming that the Act: infringes their First Amendment rights of free speech; violates the Commerce, Supremacy and Equal Protection clauses of the United States Constitution; violates the Sherman Antitrust and Federal Copyright Acts; and deprives the plaintiffs of property without due process of law. It is claimed the Court’s jurisdiction arises under the above provisions of the Constitution and laws of the United States, and is asserted under 28 U.S.C. §§ 1331(a), 1337, 1338 and 1343(3).

The case is presently before the Court on defendants’ joint motion to dismiss plaintiffs’- complaint or alternatively to abstain from assuming jurisdiction. The issues presented by this motion are substantial. They erect before the Court a constitutional threshold which cannot be lightly crossed. Indeed, the Court has paused to give the matter lengthy and deliberate consideration. Upon such consideration the Court has become convinced that defendants’ motion is not well taken at this time, and for the reasons set forth below, and with the exceptions noted, must be denied.

Positions of the Parties

According to plaintiffs’ complaint, on June 22, 1978, Amended Substitute House Bill 806 was enacted by the Ohio General Assembly. On that day defendant Riffe, acting as Speaker of the Ohio House of Representatives, and defendant Celeste, as Lieutenant Governor and President of the Ohio Senate, “approved and certified that . House Bill 806 had been duly enacted by the Ohio General Assembly.” The complaint further recites that on July 24, 1978, defendant Governor Rhodes “approved said Act,” and that defendant Brown, as Secretary of State, “accepted said Act for filing as and to become a part of the Revised Code of Ohio.” The essence of plaintiffs’ complaint is then built on the premise that these actions taken by the above parties to enact what plaintiffs claim is an unconstitutional statute, are for that reason void, invalid and beyond defendants’ power, and constitute a sufficient basis to render those parties proper defendants in an action brought to declare the statute unconstitutional. 2

The defendants claim that the Court is without jurisdiction over this matter for the reason that they are defendants in name only, the real party defendant being the State of Ohio. Defendants also claim that the complaint fails to demonstrate the existence of an actual and justiciable case or controversy between the parties as required by Article III of the United States Constitution. The Court will now address these issues.

I. The Eleventh Amendment The Eleventh Amendment to the Constitution states:

The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State.

Adopted in 1798, the Amendment was enacted in direct response to widespread dissatisfaction with the Supreme Court’s decision in Chisholm v. Georgia, 2 Dall 419, 2 U.S. 419, 1 L.Ed. 440 (1793), holding that the State of Georgia was amenable to suit in federal court by a citizen of another state. Because the Amendment was intended to reverse the Chisholm result it has been interpreted not literally but according to its purpose of restoring to Article III the “fundamental rule of jurisprudence” that “a State may not be sued without its consent.” Ex parte New York, 256 U.S. 490, 497, 41 S.Ct. 588, 589, 65 L.Ed. 1057 (1921). Thus the Supreme Court stated:

[T]he entire judicial power granted by the Constitution does not embrace authority to entertain a suit brought by private parties against a state without consent given: not one brought by citi *564 zens of another state, or . foreign state, because of the Eleventh Amendment; and not even one brought by its own citizens, because of the fundamental rule of which the Amendment is but an exemplification. Id.

See also, Monaco v. Mississippi, 292 U.S. 313, 54 S.Ct. 745, 78 L.Ed. 1282 (1934); Hans v. Louisiana, 134 U.S. 7, 10 S.Ct. 504, 33 L.Ed. 842 (1890).

In accordance with the above principle, it follows that a plaintiff cannot pierce the shield of Eleventh Amendment immunity simply by naming as defendant a party other than the State. Looking to substance rather than form the Supreme Court has decided that such immunity should not depend on “the mere names of the titular parties but [on] the essential nature and effect of the proceeding, as it appears from the entire record.” Scheuer v. Rhodes, 416 U.S. 232, 237, 94 S.Ct. 1683,1687, 40 L.Ed.2d 90 (1974); Ex parte New York, supra, 256 U.S. at 500, 41 S.Ct. 588; Harrison Construction Co. v. Ohio Turnpike Comm., 272 F.2d 337, 339 (6th Cir. 1959). Thus if an examination of this proceeding demonstrates that defendants are in fact here only as surrogates for the sovereign State of Ohio, then perforce the Eleventh Amendment shield must apply and bar further action against them.

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Bluebook (online)
473 F. Supp. 560, 17 Ohio Op. 3d 208, 1979 U.S. Dist. LEXIS 11540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-artists-pictures-corp-v-rhodes-ohsd-1979.