Leavitt v. Windsor Land & Investment Co.

54 F. 439, 4 C.C.A. 425, 1893 U.S. App. LEXIS 1462
CourtCourt of Appeals for the Eighth Circuit
DecidedFebruary 20, 1893
DocketNo. 181
StatusPublished
Cited by11 cases

This text of 54 F. 439 (Leavitt v. Windsor Land & Investment Co.) 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
Leavitt v. Windsor Land & Investment Co., 54 F. 439, 4 C.C.A. 425, 1893 U.S. App. LEXIS 1462 (8th Cir. 1893).

Opinion

CALDWELL, Circuit Judge,

(after stating the facts.) The contract between the parties, in legal effect, is a contract of partnership. By its terms one party contributes to the business of the partnership the use of the theater building, and is to pay certain expenses incident to the use thereof, and the other party contributes his time and skill in the management and conduct of the business, and is to pay a fixed sum per month for lighting and heating the building, [443]*443and in addition thereto a fixed sum for rent, and the lessor is to receive, “as additional rent, * :f one half of the net annual profits accruing from the business of the theater,” and each party is to pay one half of the losses of the business. This constitutes them partners. If the agreement between the parties was a lease, simply, the cause would not, upon the allegations of the original bill, be one of equitable cognizance; for, divested of the element of partnership, it would have been a bill for a summary proceeding in the nature of a forcible entry and detainer, or an action of ejectment, and must have been dismissed upon the ground that the complainant had a plain, speedy, and adequate remedy at law. But, in view of the partnership relation created by this contract, the jurisdiction of equity to entertain the original bill seems to be clear. The case of Marble Co. v. Ripley, 10 Wall. 339, 350, is an authority directly in point. That case shows that the contract in the ease at bar is, in the language of Mr. Justice Strong, “in a very practical sense, a com tract of partnership.” The case is also an authority for the rule that equity will interfere by injunction to restrain one partner from violating the rights of his copartner, even when the dissolution of the partnership is not contemplated. The reason for this rule is thus stated by Vice Chancellor Wigraxn in Fairthorne v. Weston, Hare, 387:

*‘If that were the rule of the court, if a Mil would In no case lie to compel a man to observe the covenants of a partnership deed unless the bill seeks a dissolution of the partnership, it is obvious that a person fraudulently inclined might, of his own mere will and pleasure, compel bis copartner to submit to the alternative of dissolving a partnership, or ruin him by a continued violation of the partnership contract.”

This doctrine is well settled. High, Inj. § 1330, and cases cited.

It is not controverted that the defendants in the original bill ejected .the complainant’s manager and employes,"and took possession of the leased premises, if not forcibly, certainly against their will and vehement protest. The contract gives the lessor the right to re-enter without process of law for a breach of any of its covenants by the lessee; and the material question, and the one upon which the case hinges, is, did the lessee fail to perform any of his covenants contained in the lease, for the breach of which the lessor was entitled to re-enter? The right to re-enter is rested chiefly on alleged breadles of the following clause of the contract:

“The party of the first pare further agrees to maintain and operate the theater as a staidly first-class place of amusement, and that no attractions shall be booked at (he said theater of a questionable character, or such as would not be regarded as first-class by the managers of the foliowin-g theaters: The Mew Broadway or Wallaek's, A. M. Palmer’s or the Byeeuin, of New York; McVTcker’s, Hooley’s Chicago Opera House, or the Columbia, Theater, of Chicago; the Olympic or Grand Opera House of St. Louis.”

The proper construction of this clause of the contract is not entirely free from difficulty; but, in the light of the testimony in the case, we have had no difficuliy in arriving at a satisfactory conclusion. We have read the testimony very carefully, and are not satisfied that the complainant did not “maintain and operate the theater as a strictly first-class place of amusement,” or that he booked for the theater attractions “of a questionable character,” as these phras[444]*444es must Rave been understood by tbe parties to tbe contract. In construing the contract of the parties, regard is to be had to the geographical location of Denver, and the character of the theatrical attractions which it is practicable to procure and produce there, and which are commonly produced there. These are considerations which must have been present in the minds of the parties when they entered into the contract. For illustration, there are what are known as “stock theaters,” and “combination theaters.” The former produce plays with their own companies the year round. The plays change, but the companies are the same. The stock theaters are confined to the large cities, which are in the center of dense populations and easy of access. The combination theaters play traveling companies entirely. The parties in this contract obviously understood they were contracting with reference to a combination, and not a stock, theater. The theatrical season at Denver is about 40 weeks, and' there is a different attraction every week, which involves the employment of at least 40 different theatrical troupes during the season. Usually these troupes have to be engaged months before the time they are to play, and the engagement is most commonly made in New York city. It will be seen at a glance that it is no easy task to secure a season’s attractions at a theater in Denver. Experience, energy, taste, and judgment in that line of business are essential to its successful accomplishment. The testimony satisfies us that the complainant displayed a fair degree of all these qualities, and that attractions which he booked for this theater were of a character that might well be booked for a “first-class place of amusement,” and were not “of a questionable character,” within the meaning of these phrases as they were understood by the parties to this contract. Those terms are probably incapable of any very exact and precise definition, as applied to theatrical attractions. Uo general definition can be given which would enable every one to. classify with precision and unerring accuracy every theatrical attraction. Theatrical managers of experience, and play-goers of intelligence, do not differ much in their general definitions of these terms. The difficulty and difference of opinion begins when they come to classify a long list of attractions. Then the fact is disclosed that an attraction which one manager ranks as. first-class in the opinion of another manager falls below that standard. In this matter we think the parties should be bound by the practical construction which they themselves put upon their contract before this litigation began. That the term “first-class attractions,” as used in this contract, was not intended by the parties to restrict the attractions to those plays, only, which occupy a high plane in dramatic literature, and are played by artists of the highest repute, and patronized chiefly by people of culture and refinement, is made apparent by the letter of Mr. Bush to the complainant, of date October 12, 1890, in which he says:

“I think you have done a very good thing in securing the ‘Clemenceau Case,’ Margaret Mather, and Sullivan, [John L. Sullivan, the prize fighter.] While some people may say that the Sullivan attraction is not just the right thing, still I am satisfied that it cannot hurt the house, and it will certainly draw a large amount of money. * ⅜ * I helieve the ‘Clemenceau [445]*445Case’ attraction will be a tremendous liit.

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Cite This Page — Counsel Stack

Bluebook (online)
54 F. 439, 4 C.C.A. 425, 1893 U.S. App. LEXIS 1462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leavitt-v-windsor-land-investment-co-ca8-1893.