Ehrlich v. Mills

215 A.D. 116, 213 N.Y.S. 395, 1926 N.Y. App. Div. LEXIS 10922
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 15, 1926
StatusPublished
Cited by7 cases

This text of 215 A.D. 116 (Ehrlich v. Mills) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ehrlich v. Mills, 215 A.D. 116, 213 N.Y.S. 395, 1926 N.Y. App. Div. LEXIS 10922 (N.Y. Ct. App. 1926).

Opinion

Dowling, J.

The amended complaint herein sets forth that defendant is a domestic corporation and that plaintiff is the author or writer of the words or lyric of a certain musical composition entitled “ Farewell Blues.” It is then alleged:

Third. That on or about the first day of April, 1923, plaintiff assigned to defendant, his right, title and interest to the right to copyright and print and publish the said words or lyrics, and [117]*117defendant, in consideration therefor, promised and agreed to pay-plain tiff a royalty of one ($.01) cent for each copy sold of the said composition and sixteen and two-thirds (16f%) per cent of any and all monies received by said defendant, for licenses granted to mechanically reproduce the same, and defendant further agreed to render a statement and pay said royalties semiannually on the first days of August and February of each year.

“ Fourth. That although plaintiff has heretofore requested defendant to account for the monies so received by it and to render a statement to plaintiff for the sum due him as royalty, as per agreement aforementioned, said defendant has neglected and refused so to do or to render any statement or account whatsoever.”

The judgment demanded is:

1st. That defendant be directed to account for all the monies received by it for the sale of copies and for licenses given to reproduce the said composition on the parts of the mechanical instruments.

“ 2nd. That upon the completion of said accounting, it shall be decreed to pay over to the plaintiff such sum as shall be ascertained to be due from said defendant.

“ 3rd. That plaintiff have his costs and disbursements of this action.”

The amended answer admits, by its failure to deny, that plaintiff is the author of the words or lyric in question. It denies the agreement pleaded in the complaint. It admits that plaintiff had requested it to account for moneys received, and that defendant refused so to do. By way of a first defense it is alleged:

“ Fourth. That heretofore, and on or about the 14th day of April, 1923, the plaintiff, at the special instance and request of the defendant, wrote and composed, subject to the approval of the defendant, a set of words or lyrics for one of its musical compositions entitled ‘ Farewell Blues/ for which the defendant agreed to pay the sum of Twenty-five ($25) Dollars, in full payment thereof, and the plaintiff agreed to accept such amount when the words or lyrics for the said composition were approved by the defendant.

Fifth. That thereafter, and on or about the said date, the plaintiff submitted a set of words or lyrics for the composition herein referred to, the defendant accepted the same, and, pursuant to the agreement, paid to the plaintiff the sum of Twenty-five Dollars, which the plaintiff then and there accepted in full payment of his work.”

For a second further and separate defense it is alleged that the alleged assignment, promises and agreement set forth in the-amended [118]*118complaint were oral; that they could not be performed within the period of one year' from the alleged making thereof; and that, by virtue thereof, recovery thereon was barred by the Statute of Frauds.

At the opening of the case in the court below the defendant moved to dismiss the complaint on the ground that it did not state facts sufficient to constitute a cause of action. This motion was denied by the trial court, and defendant duly excepted. The plaintiff thereupon offered testimony to support the allegations of his amended complaint. At the close of the plaintiff’s case defendant renewed its motion to dismiss the complaint, as follows: Mr. Buzzell: I now move to dismiss the complaint of the plaintiff on the ground that it appears that he has not established facts sufficient to constitute a cause of action, in that he has failed to establish the allegations of his complaint, and in that there is a vital variance between the pleadings and the proof, and in that he has failed to make out any case whatsoever against the defendant; and also upon the ground that once this complaint was framed in equity it is insufficient, even though facts may be pleaded that set up an action at law.” The court reserved decision on the motion.

The defendant offered some evidence which on its consent was stricken out, and it rested on plaintiff’s case. Again the motion was renewed. The learned trial justice again reserved decision upon the motion for a dismissal, stating that, if the motion was denied, an exception would be granted to the defendant. Subsequently the court denied the various motions to dismiss, and awarded an interlocutory judgment in favor of the plaintiff, directing the defendant to account in respect to the royalties it had received. Exceptions to the findings were duly filed, and the present appeal is from such judgment.

Because of the form of defendant’s motions, it cannot now claim that the cause was not one properly triable in equity, and should have been tried as an action at law. The sole question presented on this appeal is whether the complaint sets forth a good cause of action either at law or in equity, and if it does the judgment will have to be affirmed. But in my opinion it does not state facts sufficient to constitute a cause of action triable in either forum.

Taking the action as one in equity, as did the learned court at Special Term, I am of opinion that no cause of action was set forth. The relation created and existing between plaintiff and defendant as the result of the agreement alleged in the complaint, was one of debtor and creditor. Under it, accepting plaintiffs version, all ..his right; title and interest in his song vested; necessarily, in the [119]*119defendant, so that copies of the song, when thereafter sold, together with the right to grant licenses, were the property of the defendant and not of the plaintiff; and any money which became payable to the plaintiff was merely the price of his sale of his musical composition. Dean Langdell, in his Survey of Equity Jurisdiction ” (2d ed. p. 93), says: “ When a book is published and sold by the publisher on his own account, under an agreement by him with the author to pay the latter either a fixed sum for every copy sold, or a fixed percentage of the gross proceeds of sales, the publisher is not accountable to the author, for the books sold (and hence their proceeds) are the property of the publisher — not of the author; and the mqney payable to the latter is merely the price of his copyright in the books sold. The relation, therefore, between the publisher and the author in such a case is merely that of debtor and creditor. The same is true also of a manufacturer who works a patent, under an agreement with the patentee to pay him a royalty on all the patented articles manufactured and sold.”

The courts have repeatedly declined to extend equitable relief in the form of an accounting for royalties received. In Henderson v. Dougherty (95 App. Div. 346) it was said: “ By the contract the plaintiffs granted to the defendant a license to manufacture under these patents and for which the defendant agreed to pay the plaintiffs a royalty. An action to recover that royalty under the contract was an action at law which the defendant was entitled to have tried before a jury.

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Bluebook (online)
215 A.D. 116, 213 N.Y.S. 395, 1926 N.Y. App. Div. LEXIS 10922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ehrlich-v-mills-nyappdiv-1926.