Johnston v. Twentieth Century-Fox Film Corp.

187 P.2d 474, 82 Cal. App. 2d 796, 76 U.S.P.Q. (BNA) 131, 1947 Cal. App. LEXIS 1277
CourtCalifornia Court of Appeal
DecidedDecember 10, 1947
DocketCiv. 15745
StatusPublished
Cited by44 cases

This text of 187 P.2d 474 (Johnston v. Twentieth Century-Fox Film Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnston v. Twentieth Century-Fox Film Corp., 187 P.2d 474, 82 Cal. App. 2d 796, 76 U.S.P.Q. (BNA) 131, 1947 Cal. App. LEXIS 1277 (Cal. Ct. App. 1947).

Opinion

VALLEE, J. pro tem.

Appeal by defendant from a judgment for plaintiffs in an action to recover damages for the breach of an oral agreement granting defendant the *800 right to the exclusive use of the title, “Queen op the Flat Tops,” for all purposes except the right of plaintiffs to continue to use the title in connection with the publication of a book.

Stanley Johnston, referred to as the “author,” was on the aircraft carrier Lexington in the battle of the Coral Sea in May, 1942. Shortly thereafter he wrote a book entitled, “Queen op the Flat Tops,” subtitled, “The U.. S. S. Lexington And The Coral Sea Battle.” The book was published and copyrighted in the United States in 1942 by E. P. Dutton & Company, Incorporated, referred to as “Dutton.” It was one of the first books published to treat in detail of the activities of an aircraft carrier and its crew in combat. The book is nonfictional. It relates historical facts, warfare in the Pacific. It does not contain any fictional character or characterization as such, or any plot or theme. The author and Dutton at all times have been the owners of the book referred to in the record as the “literary property,” and of the copyright. The book became widely known as “Queen op the Flat Tops.” It attained considerable popularity which endowed the title, “Queen op the Flat Tops,” with considerable value. Up to April 14, 1944, Dutton had sold 170,578 copies of the book throughout the world and had expended the sum of $14,669.71 in advertising and publicizing the book. A substantial number of copies of the book were sold in California. About October, 1942, the author and Dutton employed Myron Selznick Agency, referred to as “Selznick,” to vend motion picture rights in the book. Hugh King, acting as “motion picture literary agent” for Selznick, endeavored to effect a sale, contacting all motion picture companies. King was in exclusive charge of the efforts to sell. Early in 1944, appellant was engaged in the production of a motion picture centered about the operations of an aircraft carrier. The picture, like the book, related to historical facts, warfare in the Pacific. In March or April, 1944, Zanuck, executive vice-president of appellant in charge of production, empowered to make contracts in its behalf, authorized Julian Johnson, appellant's story editor, to purchase the right to the title, “Queen of the Flat Tops.” Johnson contacted King, and on behalf of appellant offered $2,500 for the use of the title alone, telling King that appellant was only interested in buying use of the title. This offer was re *801 jected by King. After some negotiation, the amount of the offer increasing each time, Johnson, upon authorization of Zanuek, offered King $20,000 for use of the title alone. King told Johnson that that was a fair price and that he would recommend to his principals, respondents, that they accept the offer. In his negotiations with King, Johnson used “the term ‘all rights’ and I meant all rights universally in the various countries.” King did not, at that time, have any authority from his principals to accept an offer. It may be inferred from the evidence that, between the $2,500 offer and that of $20,000, Johnson was in constant contact with Zanuek with respect to the amount to be offered. On April 11, 1944, King telegraphed Dutton to the effect that appellant had offered $20,000 for use of the title alone, the material in the book to remain the author’s property. On April 12, Dutton telegraphed King to the effect that it would check with the author immediately regarding the offer. On April 13, the author wrote King to the effect that Dutton and he had agreed that the price was acceptable and authorized King to accept the offer. The letter stated that Dutton was contacting King separately. On April 14, the author telegraphed King to the effect that he had spoken with Dutton and that they were in agreement to sell the title for $20,000. Immediately upon receipt of this telegram and on April 14, 1944, King telephoned Johnson, at appellant’s studio, and told him that the author and Dutton accepted the offer. Johnson replied, “Thank God, it’s over.” King then dictated an office memorandum, “the blue memo, which meant the closing of the deal.” The same day King went to Johnson’s office, at appellant’s studio, and verbally confirmed his telephone conversation, thanked Johnson for the deal, each party telling the other that he had made a good deal at a fair price, Johnson asking King in whose name the contract would be drawn. At that conversation King said, “You bought the title only; why don’t you buy the whole book and buy the material too?” Johnson replied that their only interest was in the title and “that they didn’t want the material.” Johnson testified that at that time he regarded the deal “as a good deal for the company and for the author and publisher,” and that the title “had a distinct value because Stanley Johnston had written a book giving the saga or story of *802 the ‘Lexington.’ ” On the same day, April 14, Johnson signed and sent to Schreiber, an officer of appellant authorized to make contracts in its behalf, a writing, reading:

‘ ‘ Subject Queen of the Flat-Tops (Titie purchased)
Through the Myron Selzniek Agency (Hugh King representing) we have just purchased all rights to the title of this book. Price, $20,000, which was the figure of our offer— as we discussed the other day.
This is a book published by E. P. Dutton, written by Stanley Johnston.
Mr. Wasson should know, in closing his contract, that we purchased the title only. (We were not interested in the literary material)
I have not notified anyone of this purchase, except Mr. Zanuek.”
On April 17, Schreiber signed and sent to Wasson, resident studio counsel of appellant, the following:
‘ ‘ Subject Queen of The Flat Tops Title Dear George:
We have purchased all the rights to the title of the book, Queen of the Flat Tops, for the price of $20,000. We were not interested in the property, but Mr .Zanuek wanted us to purchase the title only.
Lew Schreiber Lew Schreiber
Dear George: When the papers are ready
will you please contact Hugh King of the Myron Selzniek Agency.”

Upon receiving this writing from Schreiber, Wasson telephoned Johnson and, in his own handwriting, wrote on the same writing, the following: “J. Johnson says: Sellers retain no rights to title for mo. pie. [motion picture], telev. [television], radio or dramatic purposes. Stanley Johnston, author—Dutton.” On the same day, Wasson told Ferguson, an employee in the legal department of appellant, to prepare a contract and that the contract should contain a “waiver of similarity”—a covenant “not to sue re similarities.” On April 17, Ferguson telephoned King asking in whose name the contract should be drawn. On April 17, King telegraphed Dutton, “Closed at Twentieth Friday *803 on ‘Queen.’ In whose name should contracts be drawn? Wire.” The same day Dutton telegraphed King that the contracts should be drawn in the names of the publisher and the author.

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187 P.2d 474, 82 Cal. App. 2d 796, 76 U.S.P.Q. (BNA) 131, 1947 Cal. App. LEXIS 1277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnston-v-twentieth-century-fox-film-corp-calctapp-1947.