Haelan Laboratories, Inc. v. Topps Chewing Gum Co.

112 F. Supp. 904, 1953 U.S. Dist. LEXIS 2874
CourtDistrict Court, E.D. New York
DecidedMay 25, 1953
DocketCiv. No. 11852
StatusPublished

This text of 112 F. Supp. 904 (Haelan Laboratories, Inc. v. Topps Chewing Gum Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haelan Laboratories, Inc. v. Topps Chewing Gum Co., 112 F. Supp. 904, 1953 U.S. Dist. LEXIS 2874 (E.D.N.Y. 1953).

Opinion

GALSTON, District Judge.

In determining the respective rights of the parties to exclusive use of the names, pictures and biographical sketches of the baseball players, the Court must consider the terms and the validity of as many as six separate contracts for many of the players. There are involved here the contract rights in respect to over five hundred players, requiring examination of contracts numbering in the thousands. The conduct of each "party in soliciting a particular player, or in using his name or picture, is also material. The time and labor involved in determining the rights in issue on these motions have been so considerable that for final hearing on these issues, and that of damages, the aid of a master to be appointed will doubtless be called for. The contracts involving the five hundred players, or more, present as to each player in effect a cause of action in itself.

The parties, recognizing the complexities involved, have chosen to limit the bases upon which they seek temporary injunctions on this hearing; e. g. for the time being the plaintiff is not raising any issue in respect to the validity of .the Russell contracts. On the defendant’s part, it has not placed the new contracts, except for renewal, obtained with players subsequent to the trial in evidence on this hearing.

In supporting its motion for a temporary injunction restraining the defendant from seeking to obtain the licenses to the names, pictures or , biographical sketches of baseball players alleged to be under exclusive contract to it for 1953, the plaintiff has separated the players into various categories, based upon different factors which the plaintiff believes justify the Court in granting the injunction. As a general classification, the players may be separated into those with whom the plaintiff had exclusive contracts for 1953 at the time of the trial, as shown in Exhibits 29 and 29-A, and those with whom the plaintiff obtained contracts subsequent to the trial.

In view of the decision of the Court of Appeals that either party here could obtain exclusive grants of the right of publicity of players’ names, pictures and biographical sketches, the fact that one party’s contracts pre-date the contracts upon which the other party relies, should be sufficient of itself to entitle the party with [906]*906the earlier contracts to an injunction. The plaintiff relies upon this aspect of the Court’s decision in claiming the right to an injunction to some two hundred players from among the four hundred odd players appearing in Exhibits 29 and 29-A. It has renewed its contracts with these players for the year 1953. On its part, the defendant makes no claim to having any conflicting exclusive rights for 1953 with any of these two hundred players.

Miss Joan Crosby testified at the hearing on these motions that the plaintiff did not exercise its option to renew contracts with eight of the players who have been included by the plaintiff in the above group. These players are Ray Blades, Vernal L. Jones, Terry Moore, Tom Poholsky, Joe Presko, Mike Ryba, Bill Sarni and Clyde Wares. .The plaintiff, however, is entitled to an injunction in respect to the remaining players in this first group. The names of the players are embodied in finding No. 7.

Conrado Marerro may also be placed in this group. Schedule A, attached to the Shorin affidavit, in support of the defendant’s motion for a temporary injunction, lists Marerro as one of the players with whom the defendant signed a new contract as distinguished from those players renewing previous Players Enterprises contracts. In its brief, the defendant states that its exclusive right to players who signed new contracts “will be temporarily disregarded” on these motions. As noted, these new contracts are not in evidence. As a consequence, it may be concluded that the defendant does not challenge the plaintiff’s prior rights to.this player at this time.

Two players, Lumin Harris and Wally Moses, are treated together by the plaintiff. It claims exclusive contracts with the two players pre-dating the Players Enterprises contracts under which the defendant asserts conflicting rights for 1953. The plaintiff’s contract with Harris for the years 1952 to 1956 inclusive, is dated May 18, 1951, while the earliest Players Enterprises contract with this player, effective through October 31, 1952, with an option to renew, is dated May 24, 1951. The plaintiff’s contract for the years 1952 to 1956 with Moses is dated May 22, 1951, while the Players Enterprises contract with the player, effective through October 31, 1952, with an option to renew, is dated May 12, 1951. However, the plaintiff had a contract dated March 17, 1951 with Moses for the year 1951, with an option to renew for 1952.

The plaintiff’s prior rights to Harris are undisputed by the defendant. There is, however, opposition in respect to Moses.

From the record, the defendant does not have an exclusive contract with either Plarris or Moses for the year 1953. The evidence also indicates that it is not using, nor does it intend to use, either player in its 1953 card series.

In respect to the remaining players appearing in Exhibits 29 and 29-A as to whom the plaintiff seeks an injunction, it has chosen to base its claim to exclusive rights for 1953 on the additional ground of the Court of Appeals decision that use by one party, with knowledge of prior conflicting rights, constitutes a tort which makes the tortfeasor’s alleged rights “illegal” and invalid.

As to the majority of these players, the defendant does not claim to have exclusive contracts for 1953. It contends, however, that the plaintiff’s contracts with these players were executed subsequently to earlier contracts signed by them with Russell Publishing Company or with Players Enterprises. The use of these players by the plaintiff during 1952, it is argued, resulted in each of plaintiff’s contracts being “tainted with illegality” and “utterly invalid” under the decision of the Court of Appeals. 2 Cir., 202 F.2d 866, 869. Thus the parties, in supporting and in opposing the plaintiff’s claim to an injunction as to these players, rely on the same legal grounds.

The instructions of the Court of Appeals on remand require a determination (at least on final hearing) of the following facts:

“1. The date and contents of each of plaintiff’s contracts, and whether plaintiff exercised its option to renew;

“2. Defendant’s or Players’ conduct with respect to each such contract;

[907]*907“3. The date and contents of each of defendant’s contracts under which defendant claims, and whether defendant exercised its option to renew; and

“4. Plaintiff’s conduct with respect to each such contract.” (Emphasis added.)

These instructions make it clear that the “knowledge” the Court had in mind was the defendant’s or plaintiff’s knowledge, if any, of the plaintiff’s or defendant’s contract rights as to each particular player, rather than the knowledge on its part that the plaintiff or defendant had contracts with players generally. The following statement of the Court, made in respect to the Russell contracts, further bears this out:

“ * * * plaintiff, in its capacity as exclusive grantee of a player’s ‘right of publicity,’ has a valid claim against defendant if defendant used that players

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Related

Yakus v. United States
321 U.S. 414 (Supreme Court, 1944)
Haelan Laboratories, Inc. v. Topps Chewing Gum, Inc.
202 F.2d 866 (Second Circuit, 1953)
McCann v. . Chasm Power Co.
105 N.E. 416 (New York Court of Appeals, 1914)

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Bluebook (online)
112 F. Supp. 904, 1953 U.S. Dist. LEXIS 2874, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haelan-laboratories-inc-v-topps-chewing-gum-co-nyed-1953.