Finnegan v. Butler

112 Misc. 280
New York Supreme Court·Decided June 15, 1920·Published·Cited by 3 cases

Opinion

Sears, J.

The plaintiff has moved for an injunction pendente lite. He is the proprietor of a daily evening newspaper known as the Buffalo Commercial, and the defendants are the proprietors and managers of all the other daily newspapers in the city of Buffalo published in the English language. The plaintiff’s action is for injunctive relief, and is based upon the theory that the defendants, together with others, have conspired together to injure the business of the plaintiff as publisher of the Buffalo Commercial.

The acts sought to be enjoined may be summarized as follows:

(1) Refusing to sell the defendants’ newspapers to persons who may also deal in and handle plaintiff’s newspaper, and inducing news boys or news men to refuse to handle or deal in plaintiff’s newspaper.

(2) Refusing to deliver “ mats ” or “ matrices ” of advertisements to plaintiffs when requested so to do by the advertiser for the preparation or publication of whose advertisement such ‘ ‘ mat ” or “ matrix ’ ’ has been made.

(3) Continuing the practice of employing men to reset “ mats ” or matrices,” and entering into an agreement with any labor union, corporation, association or person to provide for employees to be engaged in such resetting of “ mats.”

(4) Entering into any agreement with any labor union, corporation, association or person providing that defendants shall employ only union men or dis[282] charge any employees not belonging to such union or association.

(5) Combining and conspiring to create or maintain a combination or monopoly in the production or sale of newspapers, advertising therein, mats ”• or “ matrices,” or whereby competition in this state in the supply or price of any such article or commodity, or any article or commodity in common use, is or may be restrained or prevented, or whereby or as a result of which the free pursuit by plaintiff of his lawful business of publishing, circulating and selling the Buffalo Commercial may be restricted or prevented, or whereby the plaintiff may be prevented from exercising his lawful calling, or to commit any act injurious to trade or commerce, or whereby it is intended to accomplish any of the acts or things mentioned in the above subdivisions.

Before a temporary injunction can be granted the court must be satisfied that the plaintiff has shown in the motion papers at least a prima- facie case, first, that a combination exists; second, that it tends to create a monopoly in an article or commodity of common use, or is intended to injure the plaintiff in his business; third, that the acts complained of will cause the plaintiff injury.

The defendants earnestly contend that the case fails to establish any one of the three elements mentioned above. The plaintiff’s affidavits fail to establish direct proof of any contract or agreement which would constitute necessarily a combination or conspiracy. But these facts are shown: For a long time there has been an association known as the “ Buffalo Publishers Association; ’ ’ that previous to January 12,1920, there were meetings of this association at which the price of newspapers was discussed; that previously to that time the price of all daily newspapers in the city of [283] Buffalo, except the price of the Buffalo Commercial, was simultaneously increased to two cents; that employees of some of the defendants have stated to newsdealers that such newsdealers would not be supplied with any of the defendants’ papers if they handled or continued to handle the Buffalo Commercial. Such facts establish a prima facie case of a combination or conspiracy. Such a conspiracy may be established circumstantially. The Appellate Division of the fourth department in Heughes v. Board of Education, 37 App. Div. 180, said: “ Direct and positive proof of such an offense is, from the nature of things, seldom attainable, and for this reason resort is frequently had in both civil and criminal actions to circumstantial evidence, that is, to evidence of disconnected acts on the part of the individual conspirators which, when taken in connection with each other, tend to show a combination to secure a particular result; and this character of evidence is often quite as satisfactory and conclusive as more direct proof. (People v. Flack, 125 N. Y. 324; People v. Van Tassel, 156 id. 561.) ”

The defendants upon the argument conceded that it would be unlawful for the defendants to combine to prevent newsdealers or newsboys from selling the Buffalo Commercial by offering them money considerations. It would be equally unlawful to accomplish the same purpose by threatening to refuse to sell the defendants’ newspapers to newsdealers handling the Commercial. Sultan v. Star Company, 106 Misc. Rep. 55; Straus v. American Publishers’ Association, 85 App. Div. 449; 177 N. Y. 477.

The defendants deny these coercive acts and produce affidavits of their employees who are charged with the commission of such acts to substantiate their denials. On this preliminary motion this question of fact is not necessarily resolved. It is sufficient in [284] the discretion of the court to prevent irreparable injury to grant relief upon the prima facie case. Especially should that be so as here where the acts are denied, and no harm will, therefore, result to the defendants in their being enjoined. An injunction pendente lite will, therefore, be ordered restraining the defendants from the commission of the acts specified in subdivision 1 of the acts complained of, above mentioned, viz.: Refusing to sell the defendants’ newspapers to persons who may also deal in and handle plaintiff’s newspaper, and inducing newsboys or newsmen to refuse to handle or deal in plaintiff’s newspaper.

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Finnegan v. Butler, 112 Misc. 280 (N.Y. Super. Ct. 1920).

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