Hutchinson v. Brotman-Sherman Theatres, Inc.

419 N.E.2d 530, 94 Ill. App. 3d 1066, 50 Ill. Dec. 422, 1981 Ill. App. LEXIS 2390
CourtAppellate Court of Illinois
DecidedMarch 31, 1981
Docket79-2349
StatusPublished
Cited by12 cases

This text of 419 N.E.2d 530 (Hutchinson v. Brotman-Sherman Theatres, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hutchinson v. Brotman-Sherman Theatres, Inc., 419 N.E.2d 530, 94 Ill. App. 3d 1066, 50 Ill. Dec. 422, 1981 Ill. App. LEXIS 2390 (Ill. Ct. App. 1981).

Opinion

Mr. PRESIDING JUSTICE HARTMAN

delivered the opinion of the court:

Defendants appeal from a judgment granting to plaintiff both compensatory contract damages and punitive damages sounding in tort. Questions raised on the pleadings include whether a partner may sue to enforce a partnership claim without joining all the partners as plaintiffs; pleadings were improperly amended to state facts inconsistent with facts stated in prior pleadings; a party may be added as a defendant during the course of trial by filing an amended complaint without service of summons; and a defendant may be denied leave to file a counterclaim where no counterclaim has been submitted to the court. Other issues presented for review are whether punitive damages were properly awarded under the circumstances presented; contract damages may be awarded against a noncontracting party; the record supports a judgment against an added party; and other evidentiary and damage issues. For the reasons which follow, we vacate and amend in part and affirm.

The 1974 telecast of the Muhammad Ali and George Foreman heavyweight championship fight from Zaire, Africa (hereinafter the fight) was organized by two New York companies which, on June 3,1974, conveyed to Herbert Muhammad (hereinafter Muhammad) exclusive telecast rights for the fight, including Chicago, Gary-Hammond, Indiana and downstate Illinois. He was granted the authority to negotiate or assign these rights to anyone he wished. Muhammad then allegedly assigned the Chicago and Gary-Hammond rights to a partnership formed after June 3, 1974, known as TKO Productions (hereinafter TKO), consisting of six partners, Irving Bloom, James Hutchinson, Walter Turner, Terry Shoemaker, David Potter and Charles Fritsch. Under the Muhammad-TKO assignment of rights, the latter agreed to pay the former $60,000 and meet certain other conditions required by one of the New York telecast promoters. On June 19, 1974, one of the TKO partners, Bloom, an attorney, contacted Oscar Brotman, president of both Brotman-Sherman Theatres, Inc. (hereinafter BST), and South Shore Amusements, Inc. (hereinafter SSA), who had exhibited many fights in the past. Brotman said he was interested in this fight and invited the TKO partners to meet in his office, which they did.

Brotman had been trying for some time to get the telecast rights to the fight for himself and, with the TKO partners present, he called the New York telecasting company to verify Muhammad’s claim of exclusive rights, part of which TKO asserted possession. Confirmation of Muhammad’s exclusive rights was made and the TKO partners and Brotman commenced negotiations, after which the TKO partners retired to Bloom’s office and a draft agreement was typed for signatures. The partners then returned to Brotman’s office with the agreement, which revealed the contracting parties to be “James R. Hutchinson, d/b/a T.K.O. Productions, hereinafter designated as First Party and Brotman-Sherman Theatres, Inc., hereinafter designated as Second Party.” A cover letter signed by Hutchinson was attached. Brotman and Hutchinson signed the contract and some copies. The TKO partners returned to Bloom’s office where they discovered that they had taken only unsigned copies of the agreement with them and had left two signed copies with Brotman. The TKO partners returned once again to Brotman’s office and after discussion all agreed that paragraph 4 of the contract made little sense and the same was scratched out by Brotman and initialed by both Brotman and Hutchinson. Hutchinson and another partner, Shoemaker, returned to Bloom’s office and the agreement was redrafted deleting only paragraph 4, the balance being identical in all other respects. Hutchinson and Shoemaker then again returned to Brotman’s office and asked to have Brotman sign the document. Brotman’s receptionist, after announcing their visit and purpose, took it into Brotman’s office and returned with it shortly thereafter handing Hutchinson the document bearing Brotman’s signature, the authenticity of which is in dispute. The next day, a $60,000 escrow agreement was entered into between Brotman and Muhammad at Amalgamated Trust and Savings Bank in accordance with paragraph 1 of the June 19 agreement between the parties; however, a $5,000 escrow to be deposited with Chicago Title and Trust Co., in accordance with paragraph 2 of the agreement, was never opened.

The fight was telecast via closed circuit television on October 29, 1974. Plaintiff’s evidence reveals that on the night of the fight, Brotman’s general manager, Robert Kennedy, saw Hutchinson at the International Amphitheatre and showed him an alteration in paragraph 3 of the contract, which provided that instead of TKO receiving $1 per ticket after the $60,000 payable to Muhammad was recouped in gross receipts, TKO was to receive only $1 per ticket after the first 60,000 tickets were sold. This alteration was initialed only by Brotman, and Kennedy asked Hutchinson to add his initials to the alteration. Hutchinson refused, asserting reliance on the document as signed on June 19, 1974. TKO’s efforts to secure compensation under the contract were unavailing.

A two-count unverified complaint was filed in December 1974 naming “Herbert Muhammad and James R. Hutchinson dba T.K.O. Productions” as plaintiffs and “Brotman-Sherman Theatres, Inc.,” as defendant. Count I sought contract damages of the $5,000 in escrow money which would have been payable to TKO after the fight had been shown and $1 per ticket over the first $60,000 in gross receipts. Count II sought damages for BST’s having displayed the fight downstate without authority, for which additional damages were sought. BST filed an answer denying that it had any agreement with plaintiff Muhammad, admitting that it established a $60,000 escrow, and denying that it was required to do so. Muhammad subsequently signed a release with BST, and he was later dismissed by stipulation in November 1976.

BST moved to dismiss the remaining action in October 1977, claiming that Muhammad was also doing business as TKO Productions and that since he had signed the release with BST, the basis of the lawsuit had been dissipated. An unverified amended complaint at law was thereafter filed by Hutchinson “d/b/a T.K.O. Productions” as plaintiff naming BST as defendant, this time alleging in count I that: Muhammad, possessor of exclusive rights of the distribution and showing by closed circuit television of the fight, had assigned part of his rights to the distribution of said fight to plaintiff Hutchinson; the parties entered into a written contract with BST, a copy of which was attached as Exhibit A, purporting to incorporate the original June 19, 1974, agreement with paragraph 4 deleted; BST complied with the $60,000 escrow but violated the agreement to open the $5,000 escrow account; and BST refused to pay TKO the sum of $1 per ticket over the first $60,000 of gross receipts. Count II again claimed damages for the unauthorized display of the fight by BST to downstate communities. BST moved to dismiss the amended complaint based upon an asserted contradiction between allegations in the original complaint which described TKO’s right to contract with Brotman as having been based upon Muhammad’s “concurrence,” and allegations in the amended complaint that TKO’s right to contract with BST was based upon an “assignment” by Muhammad to TKO, and also upon the absence of other partners of TKO as parties plaintiff.

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Bluebook (online)
419 N.E.2d 530, 94 Ill. App. 3d 1066, 50 Ill. Dec. 422, 1981 Ill. App. LEXIS 2390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hutchinson-v-brotman-sherman-theatres-inc-illappct-1981.