Montgomery Enterprises v. Empire Theater Co.

86 So. 880, 204 Ala. 566, 19 A.L.R. 987, 1920 Ala. LEXIS 281
CourtSupreme Court of Alabama
DecidedJune 30, 1920
Docket3 Div. 446.
StatusPublished
Cited by38 cases

This text of 86 So. 880 (Montgomery Enterprises v. Empire Theater Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery Enterprises v. Empire Theater Co., 86 So. 880, 204 Ala. 566, 19 A.L.R. 987, 1920 Ala. LEXIS 281 (Ala. 1920).

Opinion

THOMAS, J.

The suit was for injunction. The Select Pictures Corporation never appeared nor was brought into court as a party defendant. The appeal is from a decree overruling defendant’s motion to dissolve a temporary injunction against Montgomery Enterprises exhibiting the photoplay in question, and for overruling demurrers to the bill; one of the grounds thereof being that Select Pictures Corporation was a necessary party defendant.

[1] The two instruments evidencing the contract are averred to have been upon printed forms furnished by Select Pictures Corporation. It is a rule of construction of printed blank contracts — as insurance policies— that they be construed with care and caution in the enforcement of forfeiture clauses contained in such printed form. Courts are, however, not at liberty to make new contracts for parties where the language is unambiguous and they are susceptible of one reasonable construction. Cont. Cas. Co. v. Ogburn, 175 Ala. 357, 57 South. 852, Ann. Cas. 1914D, 377.

[2] The two instruments in question evidencing the contract of date September 7, 1918, are to be construed; as one transaction with reference to each other. Mobile County v. Linch, 198 Ala. 57, 73 South. 423, 425; Dadeville Oil Mill v. Hicks, 184 Ala. 367, 371, 63 South. 970; Satterfield v. Fidelity Mutual Life Ins. Co., 171 Ala. 429, 434, 55 South. 200; Sewall v. Henry, 9 Ala. 24, 30; Whitehurst v. Boyd, 8 Ala. 375, 381; Holman v. Crane, 16 Ala. 570, 578; Prater v. Darby, 24 Ala. *572 496; Pierce v. Tidwell, 81 Ala. 299, 304, 2 South. 15.

[3] Whether time is of the essence of the contract is determined from the two instruments when so considered, having in view the circumstances of the parties and the object each had in view and the subject-dealt with therein. Elliott v. Howison, 146 Ala. 568, 40 South. 1018; Dowling-Martin Co. v. Lysle Milling Co., 203 Ala. 491, 83 South. 486; Home Guano Co. v. International Agri. Corp., ante, p. 274, 85 South. 713; McFadden v. Henderson, 128 Ala. 221, 29 South. 640.

[4, 5] If a contract is of doubtful import as to any of its provisions, the practical construction put by the parties on such engagement therein is controlling of its meaning and must “often prevail over its literal meaning” (Birmingham Waterworks Co. v. Windham, 190 Ala. 634, 640, 67 South. 424; Crass v. Scruggs, 115 Ala. 258, 268, 22 South. 81; Robinson v. Bullock, 58 Ala. 618, 622; Lowrey v. Hawaii, 206 U. S. 219, 27 Sup. Ct. 622, 51 L. Ed. 1026; Chicago v. Sheldon, 9 Wall. 50, 19 L. Ed. 594); and the whole contract will be construed so as to make it legal rather than illegal (McIntyre Lbr. Co. v. Jackson Lbr. Co., 165 Ala. 268, 274, 51 South. 767, 138 Am. St. Rep. 66; Ashley v. Cathcart, 159 Ala. 474, 480, 49 South. 75). In Comer v. Bankhead, 70 Ala. 136, 141, Mr. Justice Stone states Parsons’ simple rules for the construction of contracts: •

“It is a rule that the whole contract should be considered in determining the meaning of any or all its parts.” 2 Parsons on Contr. 13.
“The contract should be supported, rather than defeated.” Page 15.
“All the parts of the contract will be construed in such a way as to give force and validity to all of them, and to all of the language used, where that is possible.” Page 16.
“All instruments should be construed contra proferentem; that is, against him who gives, or undertakes, or enters into an obligation.” Page 19.

[6] A trade custom, as to the subject and objects of the contract, known to the parties as prevailing in the community where the contract is executed and where to be performed, is by implication incorporated therein between the parties as respecting the subject-matter of such custom. Crandall-Pettee Co. v. Jebeles & Colias Co., 195 Ala. 152, 157, 69 South. 964; Georgia Cot. Co. v. Lee, 196 Ala. 599, 72 South. 158, 160; German-Am. Ins. Co. v. Com’l Fire Ins. Co., 95 Ala. 469, 475, 11 South. 117, 16 L. R. A. 291; Walls v. Bailey, 49 N. Y. 464, 10 Am. Rep. 407.

[7] When the two instruments are considered under surrounding circumstances of the parties and objects in view at the time of the execution of the contract, we are of opinion, if time was of its essence, that the construction of the parties was that the same was for one year, expiring in November, 1919. On October 3, 1918, the Select Pictures Corporation, through its branch manager at Atlanta, Ga., wrote complainant that — •

“Our impression is that your contract with us is to become éffective on or about November 1st. If correct in this surmise, we will appreciate your giving us definite exhibition dates at the earliest possible moment, in order that we may give you absolute protection on the new releases,”

—and on December 12, 1918, again wrote:

“Dame Rumor * * * informs me that a report is being circulated to the effect that a local film distributing organization alleges that they have secured the services of Norma Talmadge. I desire to state most emphatically, and I base this statement on authentic advice from an authoritative source, that Select Pictures Corporation contract for Norma Talmadge pictures runs until November, 1919, and that no other distributing organization will distribute or release (new) Norma Talmadge pictures during that period. What may happen after that cannot, affect Norma Talmadge production for practically one year. In view of the fact that Miss Talmadge has released but one of the eight contracted second star series pictures and that the contract held by Select Pictures Corporation is binding in its terms for the faithful performance of all the conditions of contract, it is slightly illogical that any other company could have secured the services of Miss Talmadge until the eight pictures above mentioned shall have been delivered; therefore'we repeat most emphatically that no changes will be, nor can be, made prior to the completion of her contract with Select Pictures Corporation. All contracts written or to be written by Select Pictures Corporation for Norma Talmadge second star series of eight pictures will remain in. force as written and the full contracted quota of pictures will be delivered by Select Pictures Corporation regardless of any rumors or allegations to the contrary.”

The affidavit of Mr. Morris, general manager of the Select Pictures Corporation, showed that the negative of the picture in question, “The Isle of Conquest,” was received by Sélect Pictures Corporation on or about September 20, 1919,- and that picture was released on or about October 20, 1919; that its receipt was (in the opinion of the affiant) “nearly a month after the expiration of the period fixed by the contract as determining what pictures were covered by it and also after the cancellation of the contract.” However, the date of expiration of the contract and of effective cancellation thereof are questions of law for the determination of the court. Of the time of performance it is pertinent to note that paragraph 3 of the one instrument is:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Voyager Life Ins. Co., Inc. v. Whitson
703 So. 2d 944 (Supreme Court of Alabama, 1997)
Payne v. Alabama Farm Bureau Mutual Casualty Insurance Co.
441 So. 2d 886 (Supreme Court of Alabama, 1983)
Marcrum v. Embry
282 So. 2d 49 (Supreme Court of Alabama, 1973)
Automotive Acceptance Corporation v. Powell
234 So. 2d 593 (Court of Civil Appeals of Alabama, 1970)
Harmon v. Tanner Motor Tours of Nevada, Ltd.
377 P.2d 622 (Nevada Supreme Court, 1963)
General Motors Acceptance Corp. v. Kendrick
150 So. 2d 185 (Supreme Court of Alabama, 1962)
Cable Vision, Inc. v. KUTV, INC.
211 F. Supp. 47 (D. Idaho, 1962)
Truly Nolen, Inc. v. Orkin Exterminating Co. of South Florida, Inc.
14 Fla. Supp. 44 (Miami-Dade County Circuit Court, 1958)
Olsson v. Nelson
28 So. 2d 186 (Supreme Court of Alabama, 1946)
Smith v. Penn Mut. Life Ins. Co.
14 So. 2d 690 (Supreme Court of Alabama, 1943)
Bullock County v. Sherlock
5 So. 2d 800 (Supreme Court of Alabama, 1942)
Cole v. Yearwood
3 So. 2d 1 (Supreme Court of Alabama, 1941)
John Hancock Mut. Life Ins. Co. v. Schroder.
180 So. 327 (Supreme Court of Alabama, 1938)
Naff v. Fairfield-American Nat. Bank
165 So. 224 (Supreme Court of Alabama, 1936)
Waring v. WDAS Broadcasting Station, Inc.
27 Pa. D. & C. 297 (Philadelphia County Court of Common Pleas, 1936)
Irwin v. Baggett
164 So. 745 (Supreme Court of Alabama, 1935)
Northam v. Metropolitan Life Ins. Co.
163 So. 635 (Supreme Court of Alabama, 1935)
Kelly v. Central Hanover Bank & Trust Co.
11 F. Supp. 497 (S.D. New York, 1935)
Dade Enterprises, Inc. v. Wometco Theatres, Inc.
160 So. 209 (Supreme Court of Florida, 1935)

Cite This Page — Counsel Stack

Bluebook (online)
86 So. 880, 204 Ala. 566, 19 A.L.R. 987, 1920 Ala. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-enterprises-v-empire-theater-co-ala-1920.