Basle Theatres, Inc. v. Warner Bros. Pictures Distributing Corp.

168 F. Supp. 553
CourtDistrict Court, W.D. Pennsylvania
DecidedJanuary 19, 1959
DocketCiv. A. 12711
StatusPublished
Cited by3 cases

This text of 168 F. Supp. 553 (Basle Theatres, Inc. v. Warner Bros. Pictures Distributing Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Basle Theatres, Inc. v. Warner Bros. Pictures Distributing Corp., 168 F. Supp. 553 (W.D. Pa. 1959).

Opinion

McILVAINE, District Judge.

The above-entitled cause came on regularly for trial, and the Court having duly considered the evidence and being fully advised in the premises now finds the following :

Findings of Fact

1. Plaintiff has been the owner and operator of the drive-in theater at Donaldson’s Crossroads, Pennsylvania, since 1950. At the time it commenced to operate the theater, it was known as the Lakeview Drive-In Theatre, but in 1952, its name was changed to the Mt. Lebanon Drive-In Theatre.

2. The defendants: Warner Bros. Pictures Distributing Corporation (herein sometimes referred to for convenience as Warner); Loew’s, Incorporated (herein sometimes referred to for convenience as Loew’s); Universal Film Exchanges Inc. (herein sometimes referred to for convenience as Universal); Twentieth Century-Fox Film Corporation (herein sometimes referred to for convenience as Fox); United Artists Corporation (herein sometimes referred to for convenience as United Artists); and RKO Radio Pictures, Inc. (herein sometimes referred to for convenience as RKO) are corporations engaged in the distribution of motion pictures, and all of them except United Artists are either directly or through subsidiary or affiliated corporations engaged in the production of motion pictures. At the time this action was commenced, each of them maintained an office in Pittsburgh, Pennsylvania.

3. During the period from at least January 1, 1938, to at least January 1, 1950, in the ease of RKO; from at least January 1, 1938, to at least March 1, 1953, in the case of Warner; and from at least January 1, 1938, to at least October 1, 1954, in the case of Loew’s, the defendants named in this paragraph were directly or through subsidiary or affiliated corporations engaged in the operation of motion picture theaters throughout the United States.

4. From at least January 1, 1938 to March 1,1953, a subsidiary of the parent corporation of Warner was engaged in the operation of theaters in Allegheny County and in the Western part of Pennsylvania, including the Stanley and Warner Theatres in downtown Pittsburgh and theaters in McKeesport, Tarentum, New Kensington, and Ambridge.

5. For at least 17 years prior to October, 1954, Loew’s had a proprietary interest in the Penn Theatre in downtown Pittsburgh.

6. Defendants, and each of them, directly or indirectly engage in interstate commerce, and every branch of the motion picture industry involved in this action is either in or directly affects interstate commerce.

7. Defendant Fox is a successor and assign of Twentieth Century-Fox Film Corporation, a New York corporation (herein sometimes referred to for convenience as Fox-New York). The statements contained in Paragraphs two and six above are applicable to Fox-New York for the period from at least January 1, 1938, to September 27, 1952. During the period from at least January 1, 1938, to at least January 1, 1952, Fox-New York was directly or through subsidiary corporations engaged in the operations of motion picture theatres throughout the United States.

8. The principal downtown Pittsburgh theaters are the Penn, Stanley, Fulton, and J. P. Harris. These theaters ordinarily play pictures prior to their showing in any other theater in Allegheny County. The Warner Theatre has, from time to time, operated on a first run policy; that is, playing a number of pictures successively prior to their showing in any other theater in Allegheny County.

9. The Fulton Theatre is part of a theater circuit which operates not less *555 than thirty-five theaters. In 1946, and 1947, and for some time prior thereto, Edward C. Raftery was President of defendant United Artists and either Secretary or Treasurer of the corporation which was operating the Fulton Theatre. The J. P. Harris Theatre is operated by a theater circuit which also operates the South Hills Theatre in Dormont, Pennsylvania, and the Denis Theatre in Mt. Lebanon, Pennsylvania.

10. At some time prior to 1934, the defendants agreed with each other to establish and maintain a uniform system of releasing pictures for showing in Allegheny County and in towns near Allegheny County. In establishing this uniform system of release, the defendants agreed that they would license those of their pictures which received a first run showing at a downtown theater in Pittsburgh on the following availabilities, and would refrain from licensing such pictures on any earlier availability:

A. For second run showing in Allegheny County (except for theaters in McKeesport and Tarentum) twenty-eight days after the conclusion of downtown Pittsburgh first run showing.

B. For showing in theaters located in New Kensington, Tarentum, Am-bridge, McKeesport, McDonald, and Aliquippa, fourteen days after the conclusion of downtown Pittsburgh first run showing.

11. The defendants have continued to adhere to the agreement between them described in Paragraph ten above down to the present time except that in the latter part of May, 1955, Fox commenced to license its pictures for second run showing in Pittsburgh and for showing in McKeesport, New Kensington, Aliquippa, Tarentum, Ambridge, and McDonald and for showing in the remainder of Allegheny County on an availability of twenty-one days after first run showing, downtown Pittsburgh.

12. Between January 1, 1938, and March 1, 1953, a subsidiary of the parent corporation of defendant Warner operated more theaters playing on an availability of fourteen days after first run Pittsburgh, and more theaters playing on an availability of twenty-eight days after first run Pittsburgh than were operated by any other single exhibitor.

13. Since March 1, 1953, Warner Theatres, Inc., which prior to that date was a subsidiary of the parent corporation of defendant Warner, has continued to operate more theaters playing on an availability of fourteen and twenty-eight days after first run Pittsburgh than are operated by any other single exhibitor.

14. The uniform system of releasing pictures, which the defendants agreed to establish and maintain, and which with the exception of defendant Fox, noted above in Paragraph eleven, they have maintained down to this date, has foreclosed competition in at least the following respects:

(a) Between defendants with respect to length of waiting time between Pittsburgh first run and succeeding runs in Allegheny County and in Ambridge'* Aliquippa, and McDonald;

(b) Between Pittsburgh first run exhibitors and subsequent run exhibitors with respect to length of waiting time between their respective showings; and

(c) Between subsequent run theaters with respect to how soon after its Pittsburgh first run showing they may exhibit a picture.

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Bluebook (online)
168 F. Supp. 553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/basle-theatres-inc-v-warner-bros-pictures-distributing-corp-pawd-1959.