Bordonaro Bros. Theatres, Inc. v. Loew's, Inc.

7 F.R.D. 210, 1947 U.S. Dist. LEXIS 1653
CourtDistrict Court, W.D. New York
DecidedMay 2, 1947
DocketCivil Action No. 3052
StatusPublished
Cited by8 cases

This text of 7 F.R.D. 210 (Bordonaro Bros. Theatres, Inc. v. Loew's, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bordonaro Bros. Theatres, Inc. v. Loew's, Inc., 7 F.R.D. 210, 1947 U.S. Dist. LEXIS 1653 (W.D.N.Y. 1947).

Opinion

KNIGHT, District Judge.

This action is brought under Sections 4 and 16 of the Act of Congress of October 15, 1914, as amended and supplemented, 15 U.S.C.A. §§ 15, 26, commonly known as the Clayton Act, and Sections 1 and 2 of the Act of Congress of July 2, 1890, 15 U.S.C.A. §§ 1, 2, commonly known as the Sherman Anti-Trust Act, and the Act of Congress of June 19, 1936, 15 U.S.C.A. § 13, commonly known as the RobinsonPatman Act.

Plaintiff claims that it suffered loss and damages in the amount of $163,000, and it asks a preliminary injunction, and, also, until hearing on a perpetual injunction thereafter, an injunction enjoining the defendants from enforcing any contracts having the effect of preventing plaintiff from obtaining a fair proportion of first class feature motion pictures for exhibition on first run in the “Palace” theater, and that the defendants be ordered to pay treble damages and the costs of this action.

The plaintiff has propounded interrogatories to the defendants. Objections have been made to certain of these, and the question for consideration is the merit of these objections.

In material respects the complaint alleges that plaintiff is a corporation and since 1930 has leased and operated the “Palace” motion picture theatre in Olean, New York, which is fully equipped to exhibit first class motion pictures on first run; that since 1930 it has been unable to obtain fair and adequate supply of first class feature motion pictures for first run for this theatre because of the wrongful acts of defendants; that the motion picture business consists of production or manufacture of features, distribution or licensing and exhibition pictures and it, in all of its phases, constitutes part of interstate commerce.

It is alleged that certain of these defendants, either directly or through subsidiaries produce, distribute and exhibit motion pictures; that one defendant produces and distributes motion pictures; one produces motion pictures; certain others distribute, and two of the defendants distribute and exhibit motion pictures. The suit has been discontinued as against the defendant Big U. Film Exchange, Inc.

It is further alleged that defendants produce or distribute more than 90% of the first class motion pictures produced in the United States; that no picture exhibitor can successfully operate without being supplied with pictures produced by the defendants; that defendants Paramount, Loew’s, Radio-Keith, Warner Bros. Pictures, Inc., and Twentieth Century own or lease, and operate, a large number of motion picture theatres, including first-run feature motion picture theatres in various parts of the United States, and in a large number of said theatres said defendants exhibit their own productions and pictures produced and licensed by other defendants; that in a large number of cities throughout the United States all first-run feature motion picture theatres are owned or leased and operated by one of the five defendants last-named with the result that one of such defendants is enabled to monopolize the first-run exhibition business; that monopolization of the motion picture business inures to the benefit of all defendants in that the monopolization by one defendant inures to the benefit of all.

It is further alleged that there are three motion picture theatres in the city of Olean: the “Palace,” “Haven” and “State”; that the “Palace” is the largest, and that both the “Palace” and “Haven” are suitable for use in first-run exhibition, but that the “Palace” is superior to the “Haven” in material respects; that prior to 1930 none of the defendants was engaged in exhibition of motion pictures in Olean and during that period the “Palace,” “Haven” and “State” were owned by independent exhibitors and then there was leased to each a substantial and fair portion of first class feature pro-[212]*212¿factions; that in 1930 Warner Bros. Pictures Inc. leased or sub-leased the “Haven” and “State” theatres and at numerous times it attempted to obtain control of plaintiff’s theatre; that the intent of Warner Bros. Pictures, Inc., is to control all moving picture theatres in the city of Olean; that since 1930 the “Haven” theatre has been run as a first-run feature motion picture theatre in competition with plaintiff’s theatre; that on acquisition of the “Haven” and “State” theatres in 1930, all defendants, except Paramount Pictures, changed their established policy and practice of licensing pictures and refused to license any first class feature pictures for the “Palace” for the season beginning September 1, 1930, and ending August 31, 1931, but licensed ail such pictures to Warner Bros. Pictures, Inc., or to its wholly owned subsidiary corporations, for exhibition at the “Haven”; that each of these defendants knew that all the other defendants were licensing all the first class feature pictures to Warner Bros. Pictures, Inc.; that the defendants conspired among themselves to prevent plaintiff from obtaining a sufficient supply for successful operation and thus to suppress competition and to compel plaintiff to withdraw from the competitive field;

That beginning in 1931 Paramount Pictures, Inc., joined with above-named defendants to conspire, refused to license productions to plaintiff and began licensing all pictures for exhibition at the “Haven,” and in 1931-32 licensed all of its first-class feature pictures to Warner Bros. Pictures, Inc.,; that at various times since 1930, Loew’s, Twentieth Century-Fox Film Corporation and Universal Corporation withdrew from said combination and licensed to plaintiff some or all of their productions ; and that afterwards they resumed at least in part membership in the conspiracy with the other defendants and for a long time prior to this suit they have licensed one-half of their productions to the “Palace” theatre, but that these three corporations have discriminated against the plaintiff in different ways; that since 1930 to the present time defendants have been requested by plaintiff to lease a fair and proper portion of pictures to it and this request has been refused by Radio-Keith, United Artists and Warner Bros. Pictures Inc., and since 1930-31 has been refused by Paramount and allowed only limited amount by Loew’s, Twentieth Century, Universal; that Warner Bros. Pictures. Inc., has inadequate facilities at the “Haven” to exhibit first-run pictures and has exhibited these at times at the “State” theatre, which is unsuitable and inadequate.

Objections have been made by Warner Bros, to interrogatories Nos, 4, 5, 6, 7, 8, -9, 15 and 16. Paramount, Loew’s, Fox, RKO and United Artists object to the same interrogatories under different numbering and except that their interrogatories Nos. 13 and 14 are counterparts of Nos. 15 and 16 rather than identical. Universal objects tc Nos. 15 and 16 under different numbering.

Interrogatories Nos. 8 and 9, directed to Warner and the corresponding interrogatories directed to the other defendants, have been withdrawn. Interrogatories Nos. 13 and 14 as directed to Warner and the same interrogatories as directed to the other defendants and the counterparts of interrogatories Nos. 15 and 16 have been amended, and as amended it is understood the objections to these have been withdrawn. This leaves for consideration only interrogatories Nos. 4, 5, 6, and 7.

Various grounds for the objections are given, but it is deemed necessary, however, to consider only the relevancy of the interrogatories and the effect of any burden in answering placed upon the defendants.

Interrogatory No.

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Bluebook (online)
7 F.R.D. 210, 1947 U.S. Dist. LEXIS 1653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bordonaro-bros-theatres-inc-v-loews-inc-nywd-1947.