Bernstein v. Universal Pictures, Inc.

79 F.R.D. 59, 98 L.R.R.M. (BNA) 2760, 25 Fed. R. Serv. 2d 1069, 1978 U.S. Dist. LEXIS 17436
CourtDistrict Court, S.D. New York
DecidedJune 1, 1978
DocketNo. 72 Civ. 542
StatusPublished
Cited by20 cases

This text of 79 F.R.D. 59 (Bernstein v. Universal Pictures, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bernstein v. Universal Pictures, Inc., 79 F.R.D. 59, 98 L.R.R.M. (BNA) 2760, 25 Fed. R. Serv. 2d 1069, 1978 U.S. Dist. LEXIS 17436 (S.D.N.Y. 1978).

Opinion

BRIEANT, District Judge.

On March 9, 1978, at a regularly scheduled pre-trial conference attended by counsel for all the parties, the Court, on its own initiative, raised the question whether the sheer size of this antitrust litigation and the complexity of the issues involved did not place the matter beyond the capacity of a jury’s proper understanding and consequently render it unfit for jury determination. An oral order to show cause why plaintiffs’ jury demand should not be struck was made on March 9,1978. A hearing was held on April 14,1978, and briefs have been received and considered.

For the reasons stated below, plaintiffs’ demand for a jury trial is hereby stricken.

The Dimensions of the Litigation

Familiarity with all prior decisions here and in the Court of Appeals is assumed. As noted by Chief Judge Kaufman of our Court of Appeals, this case is an “elaborate class action.” Bernstein v. Universal Pictures, Inc., 517 F.2d 976, 978 (2d Cir. 1975). The original complaint, filed February 7, 1972, alleged that the defendants had conspired to restrain trade by depriving the plaintiffs, a class consisting of lyricists and composers of music (hereinafter sometimes referred to collectively as “composers”), of the copyright to music and lyrics written by them for motion pictures and television shows produced (or, in the case of defendant United Artists Corp., distributed) by defendants. Plaintiffs also charged monopolization by defendants of the American market for the publication of motion picture and television music and lyrics. In their pre-trial brief, plaintiffs have further distinguished these claims, and alleged at least seven (7) separate conspiracies by which defendants violated the antitrust laws.

Although the contracts between these defendants and the class members were entered into individually, some of the parties here have, since 1960, governed their negotiations by certain standard contract terms (the “Minimum Basic Agreements” of 1960, 1965 and 1967). These Agreements were accepted by the Composers and Lyricists Guild of America (“CLGA”), to which all of the named plaintiffs and most, but not all, of the class members belong, as a result of agreement with the Association of Motion Picture and Television Producers (“AMPTP”), to which all of the motion picture defendants belong. Neither of the television network defendants is a member of the AMPTP, but it is alleged that they conformed their contract negotiations to the terms of the Minimum Basic Agreements.

Pursuant to the minimum standard terms of the Agreements, the composer received at least 50% of the performance fees for his works. The producer was assigned the production rights for the works and became [62]*62the registered copyright owner, as the proprietor of a work for hire. See, 17 U.S.C. § 26. Each of these minimum terms has on occasion been exceeded in favor of composers and lyricists with greater public favor, to enable him to retain the copyright of their work and to receive a greater percentage, or the entirety of the performance fee. These contracts more favorable than the minimum resulted from individual arms-length bargaining and reflect the greater merchantability of the works of such composers.

This action was originally filed as a class action with seventy-one (71) named plaintiffs and sixteen (16) defendants. At present sixty-five (65) named plaintiffs1 and eleven (11) defendants2 remain in the case. Seven major law firms represent the parties. Although class action status was ordered on June 18, 1973 by Judge Sylvester J. Ryan of this Court, the exact size of the class remains in dispute.3 By a Memorandum Decision dated May 9, 1977, I held that all claims arising before February 7, 1968 were barred by the statute of limitations. Defendants assert that this ruling reduces the class to approximately 400, while plaintiffs continue to maintain that the class contains approximately 900 members. At the hearing held on March 9,1978, plaintiffs estimated that the class might be as large as 1,100. An additional defendant, the Composers and Lyricists Guild of America, Inc. (“CLGA”) has been brought into the action to respond to counterclaims brought by some, but not all, of the defendants.

The size of the class is an important consideration here, since each class member must prove his own injury and damages separately and must do so individually with respect to each contract made with each defendant. This is not the ordinary price-fixing or securities fraud case in which the mere filing of proofs of claim by class members suffices to establish the fact and amount of damages. Without regard to the absent class members, the named plaintiffs here have alleged the existence of more than a thousand individual contracts entered into between them and various defendants during the statutory period. This number does not include any of the contracts pursuant to which the named plaintiffs received all or part ownership of the copyright on their works; nor does it include any of the contracts made by the 900 (or 400) absent class members. In essence, as the defendants have aptly phrased it, resolution of this case as to the named plaintiffs alone will require more than a thousand “mini-trials” to determine for each contract entered into by each named plaintiff what percentage of the performance fee he might have been able to command from defendants but for the alleged antitrust conspiracy. This in turn will depend on a determination in the nature of a value judgment as to that individual’s bargaining position at the stage of his career at which each disputed contract was negotiated.

The case of one of the named plaintiffs, Henry Mancini, provides an illustration of the difficulties involved. Four pages of the pre-trial order are required simply to stipulate the varying percentages of the publisher’s share of the performance fees which Mr. Mancini received from the different defendants in his various contracts.

[63]*63Although the Court, by an Order dated June 2, 1976, deferred trial of the damages of absent class members until after the trial of damages of the named plaintiffs, these same considerations will eventually apply for all members of the class.

On the trial of this action, the plaintiffs will in effect call upon the finder of fact to infer, from hundreds of individual contract negotiations, the existence of a conspiracy, or rather seven separate conspiracies. More than 550 exhibits have been pre-marked for this purpose, and plaintiffs intend to call 15 witnesses. Plaintiffs have also reserved the right to call additional witnesses and produce additional exhibits as needed. In addition, if, as appears likely, it is necessary to prove what percentage of the performance fees each named plaintiff would have received on each separate contract but for the conspiracy, plaintiffs will have to call each named plaintiff (65), introduce each of the contracts (1,050) by which they claim they were injured, and give proof on the 580 individual contract negotiations involved.

To facilitate proof of their damages, plaintiffs have prepared more than 2,500 pages of accountants’ worksheets (Ex. A at the hearing), which they claim involve “merely ... an arithmetical function with which the defendants will find little to argue.” (Plaintiffs’ Memorandum, p. 10).

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79 F.R.D. 59, 98 L.R.R.M. (BNA) 2760, 25 Fed. R. Serv. 2d 1069, 1978 U.S. Dist. LEXIS 17436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bernstein-v-universal-pictures-inc-nysd-1978.