Broadway & Ninety-Sixth Street Realty Co. v. Loew's Inc.

21 F.R.D. 347, 1958 U.S. Dist. LEXIS 4322, 1958 Trade Cas. (CCH) 68,940
CourtDistrict Court, S.D. New York
DecidedJanuary 28, 1958
StatusPublished
Cited by40 cases

This text of 21 F.R.D. 347 (Broadway & Ninety-Sixth Street Realty Co. v. Loew's 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
Broadway & Ninety-Sixth Street Realty Co. v. Loew's Inc., 21 F.R.D. 347, 1958 U.S. Dist. LEXIS 4322, 1958 Trade Cas. (CCH) 68,940 (S.D.N.Y. 1958).

Opinion

BRYAN, District Judge.

These are two consolidated actions “under the Federal Anti-Trust Laws (15 U.S.C.A. Sections 1, 2, 15 and 26)” to recover treble damages totaling $101,-690,000. A counterclaim and cross-claim interposed by one of the defendants against the plaintiffs and certain added defendants, based on the same statutes, seeks treble damages of $41,250,000.

Plaintiffs are owners, lessees, operators and managers of motion picture theatres, and exhibitors of motion pictures on a very large scale. Defendants are major motion picture producers, distributors and exhibitors.

In substance, the amended complaints charge that defendants, RKO Keith-Orpheum Corporation, Warner Brothers Pictures, Inc., Paramount Pictures, Inc., Columbia Pictures Corporation, Universal Pictures Company, Inc., and United Artists Corporation, and various of their subsidiaries also named as defendants, together with Loew’s Incorporated and Twentieth-Century-Fox Film Corporation, comprising the “big eight” in the motion picture industry, since “prior to 1931” have engaged in continuing combinations and conspiracies to restrain interstate commerce and to create a monopoly in the distribution and exhibition of motion pictures throughout the United States. The conspiracy and monopoly charged are based in whole or in part upon the violations of the AntiTrust Laws found to have existed in United States v. Paramount Pictures, Inc., D.C.S.D.N.Y., 66 F.Supp. 323, 70 F.Supp. 53, affirmed in part and reversed and remanded in part 334 U.S. 131, 68 S.Ct. 915, 92 L.Ed. 1260, 85 F.Supp. 881; United States v. Loew’s, Inc., D.C.S.D. N.Y., 70 F.Supp. 53, affirmed 339 U.S. 974, 70 S.Ct. 1032, 94 L.Ed. 1380. The amended complaints allege a series of specific acts by which these conspiracies were carried out in the New York metropolitan area allegedly affecting 47 theatres owned, leased, operated or managed by the plaintiffs. The acts alleged include illegal division of territories among the conspirators, enforcement of unreasonable runs and clearances, fixing of admission prices, use of discriminatory license privileges, exclusion of independents from first runs and utilization of defendants’ monopoly powers to force plaintiffs into disadvantageous pools and sales.

Settlement has been effected with Loew’s Incorporated which had been named as one of the defendants but is .therefore no longer in the case.

The answers of the other defendants are, in substance, general denials of the material allegations of the amended complaints.

The answer of defendant RKO KeithOrpheum Theatres, Inc. also contains a counterclaim and cross-claim against the plaintiffs and against added defendants Twentieth-Century-Fox Film Corporation and George P. Skouras, Spyros P. Skouras and Charles P. Skouras, now deceased. It alleges that the corporate plaintiffs and added defendants, who were under the control and domination of the Skouras Brothers, in combination with them, owned more than a thousand theatres located throughout the United States with the largest combined seating capacity of any theatre operating group in the country. The plaintiffs and the added defendants, it charges, themselves, engaged in combinations and conspiracies to restrain trade in the exhibition of motion pictures in the areas in which their theatres operated, including the New York metropolitan area where defendant [351]*351RKO Keith-Orpheum Theatres, Inc. operated fourteen theatres. The combination and conspiracy is alleged to have been carried out in the New York area through means and practices similar to those charged in the amended complaints and the acts complained of are those which are alleged to have affected the RKO theatres in that area.

After issue had been joined in the action and consolidation had been effected, four groups of defendants and one individual defendant, each represented by separate counsel, commenced to take the deposition before trial on oral examination of George P. Skouras, pursuant to Rule 26, F.R.C.P., 28 U.S.C.A. Skouras, among other things, was the president and a major stockholder of plaintiff Skouras Theatres Corporation, and an officer, director or stockholder of various of the other plaintiffs and added defendants, and was an added defendant himself. By the time the examination had run to some two thousand pages the witness had refused to answer 422 individual questions directed to him by various of the examining counsel, afte» objection thereto by his counsel and a direction not to' answer.

Four separate motions were then brought on to compel the witness Skouras to answer the questions which had been propounded to him by the respective counsel for the examining defendants, pursuant to Rule 37(a), F.R.C.P. These motions, which will be referred to here as the RKO Theatres motion, the Columbia motion, the Warner motion and the Paramount RKO motion, are now before me for determination.

This case comes within the purview of the Report on “Procedure in Anti-Trust and Other Protracted Cases” made by the Committee headed by Judge Prettyman, which was adopted by the Judicial Conference of the United States on September 26, 1951 (13 F.R.D. 62). It is a case where “The potential range of issues, evidence and argument is so great, and the necessities of adversary representation so compelling, that the activities of counsel will result in records of fantastic size and complexity unless the trial judge exercises rigid control from the time the complaint is filed.” 13 F.R.D. 66. In such a case, as the Report pointed out, “pleadings will not serve to particularize issues sufficiently * * * and motions for particulars will not serve that purpose. Such particularization must be achieved by informal conferences between judge and counsel well in advance of a possible trial date.” 13 F.R.D. 67. Even where issues cannot be adequately formally framed and finally fixed prior to the processes of discovery.

“ * * * informal conferences between the judge and counsel should nevertheless be held when the basic pleadings are in, and before discovery processes are begun. The issues indicated or known at that point should be framed and stated. They should serve as the basis for the bounds of permissible discovery. Thereafter, if it appears advisable or necessary, the issues which are to control the subsequent course of the trial may be reframed and stated in the pre-trial order contemplated by Rule 16.” 13 F.R.D. 68.

Yet thus far in this case there have been no conferences such as were suggested in the Prettyman Report, nor has any pretrial program been worked out with the court which would carry forward the litigation in a logical and orderly manner so as to narrow and reduce to a minimum the issues to be tried, the conflicts in the evidence and the matters as to which the parties are in actual disagreement, and get down to the hard core of the litigation. Under such circumstances, as the Prettyman Report points out, “deposition or discovery proceedings outside the planned scope of the judge’s direction are likely to be at least surplusage if not quite in conflict” with such a program set by the judge, and “interparty discovery proceedings, under the Rules of Procedure” not so arranged for “are not [352]*352helpful in the elimination of unnecessary delay, expense, or volume of record.” 13 F.R.D. 83.

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Bluebook (online)
21 F.R.D. 347, 1958 U.S. Dist. LEXIS 4322, 1958 Trade Cas. (CCH) 68,940, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broadway-ninety-sixth-street-realty-co-v-loews-inc-nysd-1958.