Churchill Evangelistic Ass'n v. Columbia Broadcasting System, Inc.

142 Misc. 210, 255 N.Y.S. 134, 1931 N.Y. Misc. LEXIS 1004
CourtNew York Supreme Court
DecidedDecember 15, 1931
StatusPublished
Cited by2 cases

This text of 142 Misc. 210 (Churchill Evangelistic Ass'n v. Columbia Broadcasting System, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Churchill Evangelistic Ass'n v. Columbia Broadcasting System, Inc., 142 Misc. 210, 255 N.Y.S. 134, 1931 N.Y. Misc. LEXIS 1004 (N.Y. Super. Ct. 1931).

Opinion

Hinkley, J.

This is an action for specific performance of an alleged contract to require defendant Columbia Broadcasting System, Inc., to broadcast on its national network a one-hour program from eleven p.. m. until midnight each Sunday evening. The transmission of that program from the tabernacle of the plaintiff to the studio of the Columbia Broadcasting System, Inc., in New York city or Chicago, would require the use of certain facilities of the defendant Buffalo Broadcasting Corporation. For that and other reasons the defendant Buffalo Broadcasting Corporation, having refused to join in this action as a party plaintiff, was properly made a party defendant in order that the court might, in a proper case, allow to plaintiff the entire relief which it seeks. (Civ. Prac. Act, §§ 194, 211.)

At the very outset the court indicates its determination that there can be found in the testimony no basis for an oral or written contract with mutual considerations and obligations flowing between the plaintiff and the defendant Columbia Broadcasting System, Inc. The claim of the plaintiff must be founded on benefits accruing to it through contractual relations created and in existence between the defendant Columbia Broadcasting System, Inc., and the defendant Buffalo Broadcasting Corporation.

The plaintiff is a religious corporation formed in the year 1920. The defendant Buffalo Broadcasting Corporation is a local corporation controlling several broadcasting stations in the vicinity of Buffalo, N. Y. The defendant Columbia Broadcasting System, Inc., is a corporation in contract with various radio stations throughout the United States and Canada and operating a national network chain or system.

The plaintiff, when radio broadcasting was in its infancy, commenced about 1925 and continued within the proper scope of its corporate powers to create and broadcast religious services. Later, with the aid of those interested in the furtherance of religious [212]*212teaching and under the guidance of a minister, the Rev. Clinton H. Churchill, the plaintiff erected, developed, owned • and operated a high power full time station in the locality of Buffalo, N. Y., denominated WKBW. The Federal Radio Commission to-day and for some time past has demanded that a full time station, in order to keep its franchise alive, shall operate a minimum of sixteen hours each of the seven days of a week. The fact became patent that the plaintiff had a surplus of broadcasting time and facilities which had a vast potential commercial value. There was no legal or ethical reason to prohibit the plaintiff, as a religious corporation, nor its members as stockholders of a non-religious entity, from absorbing the surplus hours not practical for religious broadcasting. Those hours could be turned by the plaintiff corporation into a direct source of revenue for the more extended carrying of the message of God to the human race (to borrow a phrase from the complaint), and at the same time contribute to the enrichment of its active forces who, while laboring in the field, saw opportunity to provide for themselves and their families against an immediate world wide depression and the uncertainties of old age.

This situation gave birth, in the month of May, 1928, to the defendant Buffalo Broadcasting Corporation, a commercial corporation, and to a union of that corporation with the plaintiff religious association, each entity legally and properly pursuing its avowed purposes with skill, energy and foresight. The three non-participating trustees of the plaintiff, Clinton H. Churchill, Irvine J. Kittinger and Hiram W. Deyo, became the stockholders of the new corporation, the defendant Buffalo Broadcasting Corporation. The plaintiff, on June 25, 1928, leased to defendant Buffalo Broadcasting Corporation, for a period of ten years, with an option of ten more years, its station WKBW. The plaintiff reserved to itself the horns of every Sunday. On September 5, 1928, that lease was canceled by a new lease between the same parties for ninety-nine years, with a like reservation to- plaintiff of the hours of every Sunday and the obligation upon the defendant Buffalo Broadcasting Corporation to broadcast, without cost to plaintiff, the latter’s Sunday services. There were other stations which the defendant Buffalo Broadcasting Corporation had acquired or later acquired, known as WGR, WKEN and WMAK.

On November 23, 1928, the predecessor of the defendant Columbia Broadcasting System, Inc., made a definite, complete and written contract with the WMAK Broadcasting System, Inc., owning and operating a local station designated WMAK. Shortly thereafter the Federal Radio Commission reduced station WMAK to a half time station. The WMAK Broadcasting System, Inc., assigned. [213]*213its interest in that contract to the defendant Buffalo Broadcasting Corporation.

The Rev. Mr. Churchill, while retaining the active control of the plaintiff religious association, became not only the titular executive vice-president of the defendant Buffalo Broadcasting Corporation, but actually managed the latter’s affairs. The dual position occupied by Mr. Churchill in his negotiations and correspondence with the defendant Columbia Broadcasting System, Inc., is at first very confusing. While his heart was undoubtedly pleading the cause and seeking benefits for the plaintiff religious association, his hand established indubitably that in those negotiations and that correspondence he acted solely as an officer of the defendant Buffalo Broadcasting Corporation. That he could deal for both corporations contemporaneously is not contended, and by the stationery employed in the correspondence and the contents of the letters passing between the defendant Columbia Broadcasting System, Inc., and himself, the court has determined, as above indicated, that Mr. Churchill was the alter ego of the defendant Buffalo Broadcasting Corporation, and not the plaintiff, and that the Columbia Broadcasting System, Inc., had no direct contractual relations with the plaintiff.

Every one is agreed that the basis of the contractual relations created between the defendant Columbia Broadcasting System, Inc., and the defendant Buffalo Broadcasting Corporation, out of which plaintiff seeks benefit, is a series of letters between the two defendant corporations in which reference is made to the written contract between the predecessor of the defendant Columbia Broadcasting System, Inc., and the WMAK Broadcasting System, Inc., the assignor of the defendant Buffalo Broadcasting Corporation. These letters, while indicative of the skill, shrewdness and sagacity of the lay mind, nevertheless lack that certainty, clarity, brevity and completeness which characterize the product of legal training. Here is a clear instance where an ounce of legal counsel would have saved a pound of litigation.

A brief statement of the mechanics of national and local broadcasting is essential to an interpretation of the letters. There are but two nation-wide radio broadcasting chains or networks, the defendant Columbia Broadcasting System, Inc., and the National Broadcasting Company. Their methods of operation correspond and the rates charged by the National Broadcasting Company are slightly higher than those of the Columbia Broadcasting System, Inc. We are concerned with the defendant Columbia Broadcasting System, Inc., which has two central studios, one in New York city and one in Chicago. The company charges a definite rato [214]*214per hour or portion thereof for commercial use of its system, graded according to the number of local broadcasting stations employed.

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Bluebook (online)
142 Misc. 210, 255 N.Y.S. 134, 1931 N.Y. Misc. LEXIS 1004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/churchill-evangelistic-assn-v-columbia-broadcasting-system-inc-nysupct-1931.