American Broadcasting-Paramount Theatres, Inc. v. Hazel Bishop, Inc.

31 Misc. 2d 1056, 223 N.Y.S.2d 178, 1961 N.Y. Misc. LEXIS 2001
CourtNew York Supreme Court
DecidedNovember 29, 1961
StatusPublished
Cited by2 cases

This text of 31 Misc. 2d 1056 (American Broadcasting-Paramount Theatres, Inc. v. Hazel Bishop, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Broadcasting-Paramount Theatres, Inc. v. Hazel Bishop, Inc., 31 Misc. 2d 1056, 223 N.Y.S.2d 178, 1961 N.Y. Misc. LEXIS 2001 (N.Y. Super. Ct. 1961).

Opinion

Owen McGtvern, J.

In an action for breach of a written contract for sponsorship of television programs, plaintiff has addressed a motion to certain of the defenses and counterclaims set forth in the defendants’ second amended answer. A somewhat similar motion addressed to the amended answer was granted by Mr. Justice Epstein. Since the decision of my learned colleague is the law of the case, the issue is largely whether the amendments made in the second amended answer cure the defects found by him in the earlier pleading.

1. In the second complete defense it is alleged that the writings sued on constitute only a portion of a contract which was still in process of negotiation when such writings were signed. Mr. Justice Epstein held the corresponding defense in the prior answer insufficient, among other grounds, because ‘1 the agreements themselves indicate that they are complete [1058]*1058on their face.” This is equally true of the instant defense. The added matter therein contained indicates that the subsequent negotiations dealt with a possible but unconsummated modification of the agreements upon which this action is based.

2. The fourth complete defense pleads the Statute of Frauds. Mr. Justice Epstein" held the defense in the amended answer insufficient because it was not alleged that any portion of the agreements was oral. In the second amended answer defendants seek to remedy this deficiency by alleging that certain terms of the agreements are not contained in any writing signed by them. This is based on the fact that under the signed agreements reference is made to plaintiff’s “then current rate card” for part of the charges defendants agreed to pay. No cases are cited by defendants indicating that, to satisfy the Statute of Frauds, every document referred to in the signed agreement must also be signed by the party to be charged. Such signature is manifestly unnecessary where, as here, the document referred to is clearly identifiable. For example, an agreement signed by a defendant, to assume all of another party’s liability under a specified contract is not unenforcible under the Statute of Frauds merely because that contract is not signed by defendant. The requirement which defendants seek would make documents unnecessarily lengthy.

In the prior pleading, defendants did not state what branch of the Statute of Frauds they claimed required the agreements to be in writing. In the instant pleading they allege that the agreements sued on were for the sale of goods of the value of over $500. It must be held that the agreements on which this action is brought were for the sale of services and not of goods and that, since the agreements would be performed within a year, there was no requirement that they be signed.

For each of these reasons the fourth complete defense is held insufficient.

3. The fifth complete defense pleads absence of mutuality, since plaintiff reserved the right to change its charges unilaterally. Mr. Justice Epstein" held the corresponding defense insufficient since that conclusion was not supported by the pleadings or any writings attached thereto. Defendants now allege that the rate card referred to in the written agreements gave the right to plaintiff to change prices.

Plaintiff cites Bethlehem Steel Co. v. Turner Constr. Co. (2 N Y 2d 456 [1957]) for the proposition that an agreement permitting a seller to raise prices will be construed as permitting increases only to the prices seller regularly charges all its customers and that so construed it is not void. The holding [1059]*1059of the Court of Appeals was based on finding by a Referee that Bethlehem charged uniform prices to all purchasers of its plain steel products (2 N Y 2d 460). In the instant case the rate card is not now before the court, nor has it any evidence as to the plaintiff’s practices. Whether the rate card will be construed as the Court of Appeals construed the Bethlehem agreement must await trial. As a matter of pleading, the fifth complete defense in the second amended answer is held sufficient.

4. The next branch of plaintiff’s motion is to dismiss for insufficiency the first partial defense in the second amended answer. One of the agreements sued on authorized defendants to terminate their sponsorship, effective after April 22, 1961 by written notice to plaintiff on or before January 4, 1961. In the first partial defense, it is alleged that plaintiff is estopped from holding the defendants for the period beyond April 22, 1961, because of defendants’ failure to give written notice before January 4, 1961. Such estoppel is grounded on specific agreements between the parties during the specified weeks that such sponsorship would end after April 22, 1961 and on the claim that discussions between the parties as to technical aspects of the programs dealt only with the period through such date. The corresponding defense in the first amended answer was not the subject of a motion to dismiss, but was the subject of a motion to make more definite and certain, which relief was granted by Mr. Justice Epsteiw. The first partial defense as now pleaded appears sufficiently definite. Whether the acts alleged are sufficient to constitute an estoppel is a question to be determined at the trial. Meanwhile, the defense should be permitted to stand and the motion to strike it for insufficiency is denied.

5. The second partial defense is one of waiver of the requirement of written notice before January 4, 1961. It is based on the same allegations as the first partial defense of estoppel and the motion to dismiss it for insufficiency is denied for the reasons that have been stated with regard to the first partial defense.

6. In the third partial defense set forth in the second amended answer defendants allege that their liability terminated effective April 22, 1961, because they delivered a written notice of termination of sponsorship, which, in view of the termination provision of the written agreements sued on, was effective on that date. Defendants fail to plead when the notice was given, but it is clear that the notice referred to was given January 10, 1961. This is apparent from the fact that the giving of a written notice along the lines pleaded in the third partial defense is [1060]*1060alleged, "both in paragraphs 5 of the second amended answer and in the third partial defense of the prior amended answer, to have been given on January 10, 1961. As stated above the agreement required service of notice by January 4, 1961. Defendants cannot cure defects in the prior pleading by omitting the date of the service of notice and alleging in conclusory fashion that such notice was effective. As it stands this defense is insufficient and is stricken. Leave is granted to serve a third amended answer, wherein it is alleged in the third partial defense that the notice was given, on a specified date on or before January 4, 1961, if defendants are able to verify such an allegation.

7. The first counterclaim pleaded in the second amended answer is based on section 340 of the General Business Law. It is alleged that plaintiff and two other major networks have a virtual monopoly in national television advertising and that such advertising is essential to the continued profitable existence of defendant Hazel Bishop, Inc. It is further alleged that plaintiff has made contracts with competitors of said defendants more fhvorable to them as regards charges, discounts, allowances and other factors than the contracts it made with said defendant, which benefits were without cost or competitive justification.

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31 Misc. 2d 1056, 223 N.Y.S.2d 178, 1961 N.Y. Misc. LEXIS 2001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-broadcasting-paramount-theatres-inc-v-hazel-bishop-inc-nysupct-1961.