Fleischer v. W. P. I. X. Inc.

30 Misc. 2d 17, 213 N.Y.S.2d 632, 1961 N.Y. Misc. LEXIS 3124
CourtNew York Supreme Court
DecidedApril 3, 1961
StatusPublished
Cited by12 cases

This text of 30 Misc. 2d 17 (Fleischer v. W. P. I. X. 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
Fleischer v. W. P. I. X. Inc., 30 Misc. 2d 17, 213 N.Y.S.2d 632, 1961 N.Y. Misc. LEXIS 3124 (N.Y. Super. Ct. 1961).

Opinion

Harold Baer, J.

These actions were tried simultaneously. In Action No. 2, the plaintiff seeks the following relief: (a) a permanent injunction restraining N. T. A. from distributing or exploiting a motion picture cartoon entitled “ Mr. Bug Goes io Town ”, hereinafter referred to as the “ Mr. Bug cartoon ”, (b) an accounting from N. T. A. of all proceeds received by it from the distribution and exploitation of the Mr. Bug cartoon, (c) a declaratory judgment that the exploitation of the Mr. Bug cartoon by N. T. A. is subject to an equitable servitude ” binding on N. T. A. to pay royalties received from the distribution of the cartoon as provided in a contract dated May 24, 1941, between Fleischer Studios and Paramount Studios, Inc., hereinafter referred to as “ Paramount ”,

[19]*19The basis of plaintiff’s claim is that the 1941 agreement between Fleischer Studios and Paramount was a “ personal agreement” and that Paramount, while it had a right to exploit and exhibit the Mr. Bug cartoon, did not have a right to divest itself of same by selling it. Fleischer also claims that while the agreement was between the Paramount and Fleischer Studios, nevertheless he and his brother, Max Fleischer (a defendant in this action) were individually bound by the agreement and, therefore, had individual rights under the agreement exclusive of the rights of Fleischer Studios.

The major defenses raised by N. T. A. are as follows: (a) that under the May 24,1941 agreement Paramount acquired absolute rights to the Mr. Bug cartoon, and, therefore, had a right to sell the cartoon, (b) that Fleischer was not a party to the agreement and, therefore, could not assert a claim in his individual capacity, (c) that no cause of action could be asserted on behalf of Fleischer Studios since it had been dissolved by a Governor’s Proclamation in 1946 and under the Florida statutes any cause of action had abated, (d) that Fleischer could not assert an action on behalf of Fleischer Studios either in the capacity of trustee or receiver, and (e) that Fleischer’s prayer for a declaratory judgment is wholly academic at this time since his rights against N. T. A. could be no greater than those reserved to him under the 1941 agreement, and that he has no present rights under said agreement.

In Action No. 1, Fleischer sued W. P. I. X. Inc., hereinafter referred to as “ WPIX ’ ’, to recover $100,000 damages for an alleged invasion of his right of privacy in violation of sections 50 and 51 of the Civil Eights Law.

It is Fleischer’s contention in this action that certain motion picture cartoon films on which his name appears as director thereof are being televised over WPIX facilities without his written consent.

The principal defenses to this action are: (a) that there is no invasion of plaintiff’s right of privacy, (b) that there is no violation of the Civil Eights Law, (e) that plaintiff gave written consent to the use of his name in connection with the exploitation of the cartoon films in question, (d) that plaintiff’s name is not being used in connection with any advertising purpose or for purposes of trade.

The underlying facts are similar for both cases. Sometime in the 1920s plaintiff and his brother Max organized Fleischer Studios and they were in the business of producing cartoons. Prior to 1941 they entered into a series of contracts whereby Paramount financed the production of certain cartoons and [20]*20distributed and exploited the cartoons. In accordance with the terms of these contracts Paramount was to recoup advances for the production of the cartoons out of the proceeds realized from their distribution, and the profits realized were to be shared between Fleischer Studios and Paramount. In 1941 Fleischer Studios was heavily indebted to Paramount and was in financial difficulty. This led to the May 24, 1941 agreement (plaintiff’s exhibit 6) which is the heart of both of these lawsuits. Under this agreement Paramount purchased outright all of the assets of Fleischer Studios, and agreed to advance money for the production of certain new cartoons, among which was the Mr. Bug cartoon and 12 Popeye cartoons. Simultaneously with the execution of the 1941 agreement Dave Fleischer and Max Fleischer delivered to Paramount a letter signed by both by which they adopted and agreed to the terms and conditions of the contract.

Fleischer Studios ceased doing business in Florida and worked out of Paramount laboratories in California. After the production of the cartoons provided for in the 1941 agreement Paramount commenced to distribute same. It stopped distributing the Mr. Bug cartoon in 1946, at which time there remained about $470,000 which had not been recouped by Paramount.

The Mr. Bug cartoon as well as some 200 Popeye cartoons (old and new cartoons) remained in Paramount’s vault until sometime in 1956. In the interim, on May 16, 1946, Fleischer Studios was dissolved by a Governor’s Proclamation for failure to pay taxes, pursuant to a Florida statute (Fla. Stat., §§ 608.29-608.36).

With the advent of television, a new medium for exploitation and distribution of old motion picture films and cartoons was created. Paramount did not have the means of distribution for television, and consequently entered into several arrangements for the sale of the films in its vault.

In July, 1956 Paramount sold several of its motion pictures, including the Mr. Bug cartoon, to one of its wholly-owned subsidiaries, Bainbow Productions, Inc., hereinafter referred to as “ Bainbow ”. This was a forerunner to a package deal which had been arranged between Paramount and N. T. A. for the outright sale of these films, including the Mr. Bug cartoon, to N. T. A. for the specific purpose of distributing them to television outlets.

In September, 1956 an agreement was entered into between N. T. A. and Paramount whereby Paramount sold outright the capital stock of Bainbow, whose only assets were six films entitled: “ Bells of St. Mary’s ”, “ Good Sam”, “ Gulliver’» [21]*21Travels ”, “ Trio “ Encore ”, and “ Mr. Bug Goes to Town ” (plaintiff’s exhibit 10). Under this agreement Paramount acknowledged its contingent liability to Fleischer Studios for the Mr. Bug cartoon under the May 24, 1941 agreement, and further agreed to indemnify and hold N. T. A. harmless from all damages, losses, etc., in connection with this contingent liability (plaintiff’s exhibit 10, page 4). N. T. A. thereupon undertook to distribute the films that it acquired. There is presently some $470,000 of unrecouped moneys due and owing to Paramount under the May 24, 1941 agreement.

In June, 1956 Paramount entered into an agreement with P. R. M. Inc., WPIX’ licensor, under which Paramount sold to P. R. M. Inc. the Popeye cartoon films which are the subject matter of the suit brought against WPIX.

Finally, it is well to point out that the May 24, 1941.. agreement has been the subject of much other litigation between the parties here and between Fleischer and Paramount in Federal court actions. In none of these cases to date has the plaintiff been successful and while they are not controlling here, I shall refer to them where similar issues were raised and determined.

To determine the issues here involved it will be necessary to construe the agreement of May 24,1941 (plaintiff’s exhibit 6) between Paramount and Fleischer Studios. This can be accomplished best by setting forth the pertinent provisions of said agreement.

Article ‘ ‘ first ’ ’: inter alia, this article cancels all previous agreements between the parties.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fleischer Studios, Inc. v. A.V.E.L.A., Inc.
772 F. Supp. 2d 1135 (C.D. California, 2008)
Beverley v. Choices Women's Medical Center, Inc.
141 A.D.2d 89 (Appellate Division of the Supreme Court of New York, 1988)
MBC, INC. v. Engel
397 A.2d 636 (Supreme Court of New Hampshire, 1979)
Namath v. Sports Illustrated
80 Misc. 2d 531 (New York Supreme Court, 1975)
La Chemise Lacoste v. Alligator Company
374 F. Supp. 52 (D. Delaware, 1974)
Negri v. Schering Corporation
333 F. Supp. 101 (S.D. New York, 1971)
Nelson v. Miller
212 So. 2d 66 (District Court of Appeal of Florida, 1968)
Fleischer v. Paramount
329 F.2d 424 (Second Circuit, 1964)
Fleischer v. Paramount Pictures Corp.
329 F.2d 424 (Second Circuit, 1964)
Fleischer v. A. A. P., Inc.
222 F. Supp. 40 (S.D. New York, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
30 Misc. 2d 17, 213 N.Y.S.2d 632, 1961 N.Y. Misc. LEXIS 3124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleischer-v-w-p-i-x-inc-nysupct-1961.