Asa G. Candler Inc. v. Georgia Theater Co.

96 S.E. 226, 148 Ga. 188, 1918 Ga. LEXIS 251
CourtSupreme Court of Georgia
DecidedJune 14, 1918
DocketNo. 692
StatusPublished
Cited by29 cases

This text of 96 S.E. 226 (Asa G. Candler Inc. v. Georgia Theater Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Asa G. Candler Inc. v. Georgia Theater Co., 96 S.E. 226, 148 Ga. 188, 1918 Ga. LEXIS 251 (Ga. 1918).

Opinions

George, J.

On October 22, 1908, E. P. Ansley entered into an agreement with . Ben Kahn by which Ansley agreed to erect a theater with certain equipment and furnishings at a designated location in the City of Atlanta, the theater to be constructed in accordance with plans made by a named architect, subject to such alterations as Kahn might desire. The agreement provided that Kahn was to lease the theater when completed at the annual rental of $7500 for the term of five years, “with the privilege of renewal for another period of five years at an increased rental of $1000 per year.” The agreement contained the following clause, around which the controversy in this case revolves; “The said Kahn also agrees that the house will be operated at all times during the term of this lease or any renewal thereof as a first-class theater catering to the best class of people.” The theater was built with stage and dressing-rooms necessary to a regular theatrical performance. It was equipped according to the contract. About one third of the theater building is taken up with the stage and dressing-rooms, wholly unnecessary to a moving-picture show. From the completion of the theater in 1910, and during the term of the original lease, the lessee operated therein “high-class vaudeville,” at all times in connection therewith moving pictures, and for certain periods moving pictures exclusively, and at considerable expense. On February 26, 1915, and agreeably to the contract, the lease was renewed for an additional term of five years beginning March 1, 1915, and ending February 26, 1920, “upon the terms and conditions set out in said original agreement,” etc. By mesne conveyances the title to the building passed into the plaintiff, and the lease thereof, by successive transfers, to the defendant. In the spring of 1917 the Jessee ceased conducting vaudeville perform[190]*190anees, and announced the intention to exhibit thenceforth moving pictures in said theater; whereupon the plaintiff brought this suit in equity to enjoin the exhibition of moving pictures in said theater building, basing its contention on. the ground that such conduct on the part of the lessee would be a breach of the provisions of the lease requiring the house to be operated “as a first-class theater catering to the best class of people.” The contention is that a first-class moving-picture, show, although it caters to the best class of people, is not a “first-class theater” within the meaning of the provision of the contract. Upon the hearing for interlocutory injunction it was conceded and is here conceded that the lessee had and was exhibiting first-class moving pictures, showing first-class productions by the leading “artists of the screen,” and that the theater so conducted catered to and in fact attracted the best class of people. The injunction was refused, and the plaintiff excepted.

1-3. In the absence of restrictive covenants, it is generally said that the tenant has no right to use the demised premises for a pur'pose not contemplated by the parties, and materially different from that for which the premises were apparently intended. 16 E. C. L. 736, § 228. The lessor may always, by express provision, limit the general rights of the lessee as regards the use of the demises premises. Equity will enforce restrictive covenants of a lease, though irreparable damage will not result frtai a breach of the covenants. Joyce on Injunctions, §§ 584, 489; Jones on Landlord and Tenant, §§ 383, 384. The covenant in the lease under consideration is not in form a restrictive covenant, but imposes an affirmative duty upon the lessee. The duty to operate the house at all times “as a first-class theater catering to the best class of people” limits the general rights of the lessee as regards the use of the demised premises, and is in effect an implied negative covenant against the use of the building for any purpose other than that named. 2 High on Injunctions (4th ed.), § 1151a.

4. The lease under consideration was executed in 1908. At that date moving pictures were in a very crude state of development. The contract by its terms was to continue over a period of five years, with the privilege of renewal for a like period of years. It was renewed in 1915. At the latter date moving pictures had reached a very high state of development; but words in a contract [191]*191are ordinarily to be given their primary meaning at the time of the execution of the contract; and words of art, or words connected with a peculiar trade, are to be given the significance attached to them by experts in such art or trade. However, this rule is one of construction, and, like every such rule, is subordinate to the intention of the parties. The primary meaning of the word “theater” in 1908 did not include a moving-picture show, even if such exhibitions were within the secondary meaning of the word. The word “theater” from the Greek, means literally, “a place for seeing.” As defined by all the standard authorities, a theater is a building especially adapted to dramatic, operatic, or spectacular representations; a playhouse. This court in Lee v. State, 56 Ga. 477, considered a theater as a building. The adjective “theatrical,” as used by all the standard authorities, means, of or pertaining to the theater, especially in the matter of dramatic or spectacular representations; befitting the stage; dramatic. In a decision rendered by the Supreme Court of Alabama long before moving pictures were known (Jacko v. State, 22 Ala. 73), it was held that the word “drama” is “broad enough to cover any representation in which a story is told, a moral conveyed, or the passions portrayed, whether by words and actions combined, or by mere actions alone.” In Ex parte Lingenfelter, 64 Tex. Cr. 30 (142 S. W. 570, Ann. Cas. 1914C, 765), the Court of Criminal Appeals of Texas said: “A theater is but a reproduction of some play, or scene, by acting, by pantomimes, or by tableau; a moving-picture exhibition is also but a reproduction of these same scenes and plays.” This language was not precisely in point upon the question before the Texas court, and under our rule would be regarded as obiter. In 1911, in a case dealing with the right to make a moving picture of a copyrighted book, the Supreme Court of the United States held that a moving picture was a dramatic production. Kalem v. Harper, 222 U. S. 55 (32 Sup. Ct. 20, 56 L. ed. 92, Ann. Cas. 1913A, 1285). The word “theater,” as employed in the clause of the contract in the instant case, is descriptive of the character of the performance within the building, rather than of the building itself. The- precise question presented by this record is whether the word “theater,” when so used, is broad enough to permit the exhibition by the lessee of moving pictures exclusively. It can not be left out of view that the primary purpose [192]*192of the lessor, evidenced by the 'contract, was to protect the property to the end that its value might be increased rather than decreased. The lessor therefore covenanted that the building must be operated as a theater and “as a first-class theater catering to the best class of people.” He desired for his theater a reputation and a name. Taking into cohsideration the primary meaning of the words in the covenant at the date of the contract, we are of the opinion that the covenant requiring the lessee to operate the building “as a first-class theater” limited the rights of the lessee to use the building for the exhibition of theatrical performances as those terms were understood, and excluded, the right of the lessee to use the building for a moving-picture show.

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Bluebook (online)
96 S.E. 226, 148 Ga. 188, 1918 Ga. LEXIS 251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asa-g-candler-inc-v-georgia-theater-co-ga-1918.