Independent Productions Corp. v. Loew's, Inc.

22 F.R.D. 266, 1958 U.S. Dist. LEXIS 4318, 1958 Trade Cas. (CCH) 69,056
CourtDistrict Court, S.D. New York
DecidedMay 29, 1958
StatusPublished
Cited by76 cases

This text of 22 F.R.D. 266 (Independent Productions Corp. v. Loew's, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Independent Productions Corp. v. Loew's, Inc., 22 F.R.D. 266, 1958 U.S. Dist. LEXIS 4318, 1958 Trade Cas. (CCH) 69,056 (S.D.N.Y. 1958).

Opinion

HERLANDS, District Judge.

This is a private treble damage antitrust action by two corporate plaintiffs against one hundred and eight corporate and individual defendants engaged in various branches of the motion picture industry. Damages of $7,500,000 are sought in addition to the injunctive relief.

The gravamen of the action, commenced in September 1956, is that defendants have conspired to prevent and interfere with the production, distribution and exhibition of a film, “Salt of [270]*270the Earth,” produced and distributed by the two plaintiff corporations, Independent Productions Corporation and IPC Distributors, Inc. Defendants’ answers are, in substance, a general denial of the charges.

On May 22, 1957, defendants commenced a pre-trial examination of Simon M. Lazarus, president and sole stockholder of plaintiff-independent Productions Corporation and president of plaintiff-IPC Distributors, Inc. The Lazarus deposition was taken for five days and then adjourned on May 29, 1957. In the course of the examination, Lazarus refused to answer ninety-five questions or groups of questions.

Those questions may be classified, for purpose of analysis, into two categories. The first category relates to Lazarus’ possible connections and beliefs of a subversive character. The pertinent questions concern Lazarus’ association with and participation in the Communist Party and other subversive organizations; and his subscription to and reading of so-called subversive books and periodicals. The second category relates to the reasons for and truthfulness of Lazarus’s having invoked the Fifth Amendment in refusing to answer questions put to him in 1953 by the House Committee on Un-American Activities. The pertinent questions revolve around the fact that, during the current pre-trial examination, Lazarus has answered the very questions that he had previously refused to answer when he appeared before the House Committee.

The refusal to answer questions in the first category is based upon the following grounds:

“The question is objected to and the witness directed not to answer upon the ground that the information it seeks to elicit is neither relevant nor material to the subject matter of this action or reasonably calculated to lead to the discovery of admissible evidence; and upon the further ground that the question would require the disclosure of political beliefs and opinions of the witness and the identity of his political associates and associations in respect of which defendants’ counsel are not privileged to inquire and which the witness is not required to disclose, under the First Amendment to the Constitution of the United States.” Affidavit of George Brussel, Jr., dated September 25, 1957, p. 5, and Appendix “A,” p. 1; Affidavit of Myles J. Lane, dated September 24, 1957, Schedule “A,” pp. 2-3.

The refusal to answer questions in the second category is based upon the following grounds:

A. The First Amendment (Affidavit of Myles J. Lane, dated September 24, 1957, Schedule “A,” p. 16);

B. Relevancy (Affidavit of Myles J. Lane, dated September 24, 1957, Schedule “A,” pp. 16, 17, 21, 22, and 24) ; and

C. “Mr. Brussel (plaintiffs’ attorney) : I would like the record to reflect that with respect to the other questions you put to this witness concerning his testimony before the House Committee that we have neither asserted nor waived any constitutional privileges or immunities that we might have with respect to the other questions.” Affidavit of Myles J. Lane, dated September 24, 1957, Schedule “A,” pp. 18, 21, 24 and 32.

Defendants move, pursuant to Fed. Rules Civ.Proc., Rule 37(a), 28 U.S.C.A., for an order compelling Lazarus, as president of the plaintiff-corporations, to answer the questions listed in Schedule “A,” attached to the Myles J. Lane affidavit of September 24, 1957.

Plaintiffs cross-move, pursuant to F. R.C.P., Rule 30(b), for an order sustaining plaintiffs’ objections to those questions and directing defendants not to inquire into the subject-matter of those questions.

Upon the oral argument, the parties disposed of a controversy relating to the [271]*271production of Lazarus’ personal income tax returns.

I. Relevance

F.R.C.P., Rule 26(b), authorizes examination of a witness “regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action.” Under this rule, the courts have permitted broad discovery. Any question that is in any way relevant to the subject-matter of the litigation is proper. Rose v. Bourne, Inc., D.C.S.D.N.Y.1953, 15 F.R.D. 362, 363; Laurens Mills v. John J. Ryan & Sons, Inc., D.C.S.D.N.Y.1953, 14 F.R.D. 191; Mills Music Inc. v. Cromwell Music Inc., D.C.S.D. N.Y.1953, 14 F.R.D. 411; Kaiser-Frazer Corp. v. Otis & Co., D.C.S.D.N.Y.1951, 11 F.R.D. 50; 4 Moore, Federal Practice, para. 26.16 (2d Ed. 1950).

Equally axiomatic are the propositions that it is no ground for objection that the testimony may be inadmissible at the trial [Rule 26(b); Engl v. Aetna Life Ins. Co., 2 Cir., 1943, 139 F.2d 469]; and that discovery will be allowed unless the information sought is clearly irrelevant. Laurens Mills v. John J. Ryan & Sons, Inc., D.C.S.D.N. Y.1953, 14 F.R.D. 191.

While purely collateral points are not subject to discovery [Vilastor Kent Theatre Corp. v. Brandt, D.C.S.D.N.Y. 1955, 18 F.R.D. 199; 4 Moore, Federal Practice, para. 26.16 (2d Ed. 1950)], discovery is proper on the issue of the credibility of the witness. 4 Moore, Federal Practice, para. 26.16 (2d Ed. 1950).

Objections based on alleged irrelevancy must, therefore, be viewed in the light of the broad and liberal discovery principle consciously built into the Federal Rules of Civil Procedure.

■Questions in the First Category

As noted, the questions in the first category relate to Lazarus’ political beliefs, associations and associates. The plaintiffs have charged the defendants with a conspiracy in restraint of trade. One line of defense open to defendants would involve proof that the several defendants^ actions were individual and not conspiratorial. One method of proving this individuality of action is to demonstrate that such action on the part of a particular defendant was reasonably prompted and motivated by a condition which he had good and sufficient reason to believe existed. In order to show that he was both reasonable and sincere in believing that the condition existed, it is permissible to show that the situation did in fact exist.

That the reasonableness and good faith of a defendant’s actions are relevant to proof of individual, as distinguished from conspiratorial, activity -is a firmly established rule of evidence. Theatre Enterprises, Inc. v. Paramount Film Distributing Corp., 1954, 346 U.S. 537, 74 S.Ct. 257, 98 L.Ed. 273; Fanchon & Marco v. Paramount Pictures Inc., D.C.S.D.Cal.1951, 100 F.Supp. 84, affirmed, 9 Cir., 1954, 215 F.2d 167 (“no parallelism, conscious or unconscious, can overcome a finding of reasonableness”); United States v. Twentieth Century-Fox Film Corporation, D.C.S.D.Cal.1955, 137 F.Supp. 78.

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Bluebook (online)
22 F.R.D. 266, 1958 U.S. Dist. LEXIS 4318, 1958 Trade Cas. (CCH) 69,056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/independent-productions-corp-v-loews-inc-nysd-1958.