Blackstone Theatre Corp. v. Goldwyn Distributing Corp.

146 N.E. 217, 86 Ind. App. 277, 1925 Ind. App. LEXIS 202
CourtIndiana Court of Appeals
DecidedJanuary 7, 1925
DocketNo. 11,938.
StatusPublished
Cited by4 cases

This text of 146 N.E. 217 (Blackstone Theatre Corp. v. Goldwyn Distributing Corp.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blackstone Theatre Corp. v. Goldwyn Distributing Corp., 146 N.E. 217, 86 Ind. App. 277, 1925 Ind. App. LEXIS 202 (Ind. Ct. App. 1925).

Opinion

Nichols, J. —

Appellee’s first paragraph of complaint averred that the appellee was engaged in the business of leasing, furnishing and selling the right to use films and pictures for exhibition purposes in moving picture theatres, and appellant was engaged in the exhibition of moving picture films and owned and operated a theatre for that purpose; that, during the three years last past, appellee, at the special instance and request of appellant, sold to appellant, for exhibition in its theatre, the right to use moving picture films and pictures owned or controlled by appellee, at a total agreed rental or service charge of more than $20,000. That appellant neglected and refused to pay appellee, on the total amount owed to appellee for the use of said pictures, the sum of $12,830, for which appellant is indebted to appellee.

Other paragraphs, later filed, were based upon the several contracts alleged to have been entered into by appellant and appellee. Appellant answered in three *279 paragraphs, denial, payment, and non est factum, under which last paragraph of answer, appellant attempted to prove that the pretended execution of the several contracts was by the manager of appellant without authority. Appellee filed reply in denial, and a second paragraph addressed to the third paragraph of answer, in which it was averred that, throughout the whole of the year 1921, and until February 27, 1922, appellant had in its employ, as manager, one Berkson, and that said manager, in the discharge of his duties, purchased the pictures to be exhibited and managed the theatre; that he was the manager of appellant’s business during the term of his employment, and that appellant well knew that said manager, on behalf of said appellant, purchased the right to exhibit pictures, owned, produced, or in the control of appellee, for exhibition, and with the full knowledge and consent of appellant, assumed to and did execute the written agreements set out in each paragraph of complaint, and that there was no advice communicated to appellee that there was any limitation of the authority of said manager to purchase the right to exhibit pictures, and appellant permitted appellee to continue in the belief that said manager possessed full authority to make the several contracts, and that the appellant received, exhibited and paid appellee for the right to exhibit all of the moving pictures mentioned and described in the several contracts except those that it is alleged appellant refused to accept, and that all of said pictures paid for were paid for by appellant under the terms and conditions of the several contracts, and not otherwise, and without protest or notice to the appellee that appellant was not bound by said several contracts, and appellant so continued to accept, pay for, and exhibit pictures under the terms of said several contracts until March 3, 1922, when the treasurer of appellant wrote appellee that the appellant was *280 fio longer operating the Blackstone theatre, and advising appellee to ship no more films to appellant, the great expense in operation having forced appellant to lease the property to another management, which was the first notice to appellee that appellant no longer desired to perform its part of the contract, made in its behalf by appellant’s manager, and appellant did not at that time intimate that said contracts were not its contracts because the said manager did not have authority to execute them. That, by the terms of said contracts, appellee was prohibited from leasing or licensing the right of exhibition to any other theatre in South Bend, which right" was a valuable asset, and the contracts with the appellant aforesaid prevented appellee from selling said right to other persons or concerns. That on each of said contracts, appellant had deposited $500 in cash, and that said deposits were made by the treasurer of appellant, with appellant’s knowledge and consent. That appellant knew that appellee was making said contracts in reliance upon the authority of said manager to execute them, and with full knowledge thereof, appellant, on numerous occasions, asked appellee to modify said contracts and did not at any time intimate to appellee any lack of authority of said manager, and, relying upon said facts, the appellee was induced to make each of the several contracts, and except for such facts, would not have made and entered into them.

There was a trial by jury which resulted in a verdict for appellee for $5,000, on which, after appellant’s motion for a new trial was overruled, judgment was rendered. The only error assigned in this court is the action of the court in overruling appellant’s motion for a new trial, which presents the alleged errors hereinafter considered.

*281 *280 Contending that the damages are excessive, appellant states that, by the well-known rule, the burden was on *281 appellee to prove the amount of damages that it had sustained. Appellee, however, had discharged this burden by proving the contract price, appellant’s violation of the contract, and appellee’s willingness to perform. Milhollin v. Adams (1917), 66 Ind. App. 376, 379, 115 N. E. 803; Waznitski v. George B. Limbert & Co. (1918), 66 Ind. App. 382, 118 N. E. 317. Appellee was not required to prove that it bad received no other compensation for the use of the rejected films or that, by the exercise of reasonable diligence, it might have done so. If appellee had received other compensation, or if it had not been duly diligent in trying to obtain the same, appellant was entitled to a proper reduction from the contract price, but the burden of showing such compensation or want of diligence was on appellant, and, in the absence of such evidence, the contract price was the proper measure of damages. Cox v. Way (1832), 3 Blackf. (Ind.) 143; Ewing v. Codding (1840), 5 Blackf. (Ind.) 433; Hamilton v. Love (1899), 152 Ind. 641; Milhollin v. Adams, supra.

Appellant contends that it was error for the court to permit witness G. E. Berkson to testify, over appellant’s objection, that he signed the contracts in suit on .behalf of appellant, for the reason that such evidence is the statement of a conclusion. These contracts, which were in evidence, were signed “Blackstone Theatre by G. E.. Berkson, Manager” or to that effect. We regard the evidence as a statement of a fact rather than a conclusion. Citizens Bank, etc., v. Opperman (1917), 188 Ind. 212, 219; Baltes Land, etc., Co. v. Sutton (1903), 32 Ind. App. 14, 69 N. E. 179; Indiana Ins. Co., etc., v. Glenn (1895), 13 Ind. App. 534. Whether he had authority so to sign, or could bind appellant by so doing, will be hereinafter considered.

*282 Over the objection of appellant, Exhibits 1 to'13 inclusive were introduced in evidence. These exhibits were the contracts for pictures which were sued on in the several paragraphs of complaint.

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Related

Walker Theatre Co. v. R. K. O. Distributing Co.
189 N.E. 162 (Indiana Court of Appeals, 1934)
Metro-Goldwyn Pictures Corp. v. Berger
174 N.E. 926 (Indiana Court of Appeals, 1930)

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146 N.E. 217, 86 Ind. App. 277, 1925 Ind. App. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blackstone-theatre-corp-v-goldwyn-distributing-corp-indctapp-1925.