Fox Midwest Theatres, Inc. v. Jay Means

221 F.2d 173, 1955 U.S. App. LEXIS 5334, 1955 Trade Cas. (CCH) 68,001
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 29, 1955
Docket15068_1
StatusPublished
Cited by22 cases

This text of 221 F.2d 173 (Fox Midwest Theatres, Inc. v. Jay Means) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fox Midwest Theatres, Inc. v. Jay Means, 221 F.2d 173, 1955 U.S. App. LEXIS 5334, 1955 Trade Cas. (CCH) 68,001 (8th Cir. 1955).

Opinion

JOHNSEN, Circuit Judge.

Appellees are the owners and operators of the Oak Park Theatre, located at 39B5 Prospect Avenue, in Kansas City, Missouri.

In 1951, they had made claim and threatened suit against the eight major film producers of the country, the producers’ subsidiary distributing corporations, and the Fox Midwest Theatres, Inc., an exhibitor, operating several theatres in Kansas City, and being owned and controlled by one of the producers and distributors. The alleged basis of the claim made was that all of the parties referred to had been engaged in an illegal combination and conspiracy in restraint of trade, affecting appellees in their operation of the Oak Park Theatre, violative of the Sherman Anti-Trust Act, 15 U.S.C.A. §§ 1 and 2, and following the pattern of that involved in United States v. Paramount Pictures, Inc., 334 U.S. 131, 68 S.Ct. 915, 92 L.Ed. 1260, with the decree conforming thereto in D.C.S.D.N.Y., 85 F.Supp. 881.

Copy of the complaint prepared for filing was furnished by appellees to all of the parties, and negotiations for settlement began, with the object of avoiding an actual suit, if possible. The gist of the particular wrong done appellees, as set out in the prepared complaint, was that the charged parties had combina-tionally placed and kept the Oak Park Theatre in an artificial and inferior film-playing position in relation to the exhibiting operations of Fox Midwest Theatres, Inc. in Kansas City, and had also conspiratorily acted together to cause appellees to pay excessive and improper rentals for such films as were supplied to the Oak Park Theatre, even in its unnaturally-accorded, third-run status. The complaint made request for damages and an injunction, under sections 4 and 16 respectively of the Clayton Act, 15 U.S.C.A. §§ 15, 26.

A compromise settlement was ultimately arrived at, under which the sum of $100,000 was paid to appellees by all of the parties jointly, and a release was taken by them from appellees. The release contained a general perambulatory recitation that appellees were claiming that they had suffered damage and injury to their property and business from alleged violation of the Sherman Act and the Clayton Act by the paying parties and had threatened to file suit on account thereof; that these parties all denied “the allegations and assertions and contentions” made by appellees; and that the parties, “to avoid prolonged litigation, controversy and expense have agreed upon a basis of compromise and settlement” — with the agreement arrived at purporting to be set out immediately following, in four numbered paragraphs.

Only paragraphs numbers 1 and 3 of the written instrument (which was captioned “Release”) are here material. They provided:

“1. In consideration of the sum of One Hundred Thousand and No/100 Dollars ($100,000.00) in hand received by the said Jay Means and Wilma Means [the appellees here] from the aforesaid defendants, said Jay Means and Wilma Means, individually and collectively, hereby compromise, settle and forever discharge the aforesaid defendants from any *176 and all causes of action, claims and demands whatsoever, whether at law or in equity, that they now have against the said defendants, and any of them, by reason of the alleged unlawful acts, contracts, combinations, conspiracies and restraint of trade, monopoly or attempt of monopoly, in violation of said acts, and every other matter whatsoever, including all claims for damages and damages, attorneys’ fees, costs and expenses, and all claims for damages by reason of violation or claimed violation of the antitrust laws and amendments thereto of the United States and of any state and all claims for damages which have accrued or are claimed to have accrued pri- or to the date hereof.”

“3. Nothing herein shall be construed as releasing or affecting any rights Jay Means and Wilma Means may have as to run, clearance or playing position of the Oak Park Theatre in the future.” Paragraph numbers 2 and 4 — the only other contractual paragraphs in the settlement agreement — merely provided, respectively, that appellees warranted that they were the sole persons entitled to assert the claims involved or having any right or interest therein, and that they further warranted that the lawyer representing them in the settlement negotiations was the only attorney they had employed, and that they had been fully advised regarding their rights and in relation to the execution of the release by them. These paragraphs have no immediate relevance to and throw no contextual light upon the intended significance or legal consequence of paragraphs numbers 1 and 3, around which the dispute- that is here involved centers, and they need accordingly not be referred to further.

In 1952, approximately a year after the settlement was made, appellees brought suit against all of the parties, claiming that they had breached a part of the accord and terms reached between them, in that, under the settlement as made, there had been a specific agreement that the Oak Park Theatre would thereafter be offered the pictures of all the producers for exhibiting purposes, on a second-run basis, and without having to bid therefor against any theatre operated by Fox Midwest Theatres, Inc.; that the Oak Park Theatre should only have to bid against any independently-owned theatres which might be located in its regular playing-and-clearance zone; that, notwithstanding this agreement on the part of the producers, and distributors, and Fox Midwest Theatres, Inc., some of them had, within a short time after the making of the settlement, commenced to allow Fox Midwest Theatres, Inc., to make purported bids against ap-pellees for films to be exhibited in Fox’s Linwood Theatre, which was located in the same general playing zone as the Oak Park Theatre, but which up to that time had never been engaged in second-run exhibition but in third-run only; and that as a result of these acts appel-lees had been deprived of films which they desired and would otherwise have shown in the Oak Park Theatre, and had also had to pay higher rentals for such films as they obtained, in consequence of all of which they had suffered' substantial pecuniary loss and damage.

The complaint prayed for a declaration that such an agreement as alleged had in fact been entered into and constituted part of the general settlement made. It further asked for a determination of the amount of damages sustained by appel-lees on account of the breach and for an injunction against further violation. The court, on a trial without a jury, found and declared the existence of such an agreement, as claimed by appellees, and granted damages and an injunction in relation thereto.

The principal attack made by appellants upon the judgment here is that the evidence offered by appellees to demonstrate the existence of these claimed terms in relation to the settlement made, and received by the trial court for that purpose over appellants’ objection, was incompetent under the parol evidence rule, and that hence there existed no proper basis on which to support the findings made and the judgment entered. Primarily, the contention is that the ex *177

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Cite This Page — Counsel Stack

Bluebook (online)
221 F.2d 173, 1955 U.S. App. LEXIS 5334, 1955 Trade Cas. (CCH) 68,001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-midwest-theatres-inc-v-jay-means-ca8-1955.