Princess Amusement Co. v. Wells

271 F. 226, 1921 U.S. App. LEXIS 1772
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 19, 1921
DocketNos. 3437, 3438
StatusPublished
Cited by10 cases

This text of 271 F. 226 (Princess Amusement Co. v. Wells) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Princess Amusement Co. v. Wells, 271 F. 226, 1921 U.S. App. LEXIS 1772 (6th Cir. 1921).

Opinion

KNAPPEN, Circuit Judge.

Wells owned a vaudeville theater at Nashville, Tenn., called the Orpheum. He had an exclusive contract with the United Booking Offices for booking vaudeville attractions at the Orpheum. The Princess Amusement Company also owned a vaudeville theater at Nashville, called the Princess. The two theaters were in active competition. An agreement whereby Wells’ competition in vaudeville should be eliminated and the Princess should obtain the exclusive right to vaudeville bookings from the United Booking Offices was evidenced by three simultaneous written contracts, dated November 25, 1912, being (1) an agreement (Exhibit A) between the Princess Company, the Booking Offices, and Wells, whereby the Booking Offices agreed to book vaudeville attractions for presentation each week at the Princess for at least 35 consecutive weeks in each vaudeville season for a period of 5 years—the Princess Company agreeing to take such attractions only from the Booking Offices. The Princess Company agreed to pay to the Booking Offices $100 per week for each week that the Princess should be operated (plus a certain commission on salaries of the vaudeville “attractions”). Wells agreed not to operate a vaudeville theater in Nashville so long as the Princess faithfully performed the agreement stated. (2) By the second contract (Exhibit B) the Booking Offices agreed to pay Wells $75 [228]*228each week that it should receive the $100 from the Princess Company. ■ While not in terms expressed in the contract, Exhibit A, it was definitely understood between ¿11 the parties that Wells was to receive $75 per week out of the $100 to be paid by the Princess Company; the contract, Exhibit B, expressly reciting such payment as one of the considerations for Wells executing the agreement, Exhibit A. (3) By the third contract (Exhibit C) the Princess Company and the Booking Offices agreed that in case Wells should sell the Orpheum, and the purchaser should conduct a competing vaudeville theater, the payments of $75 per week referred to should be discontinued “during the period of such competition, but not longer; the same to be revived and. continued on the cessation of such competition.’?1 Eor 22 weeks immediately following the taking effect of these contracts the Orpheum exhibited what is called musical tabloid. The Princess Company, claiming that this production was a breach of Wells’ agreement not to operate a vaudeville theater, refused to pay to the Booking Offices the $75 per week which was to go to Wells, paying, however, the remaining $25 plus the commissions on salaries, and receiving bookings under its contract with the Booking Offices for the full 5-year period. On October 5, 1915, Wells brought suit on the equity side of the court below for the recovery of the agreed payments of $75 per week. The meritorious defense was made that Wells, by exhibiting the so-called musical tabloid for 22 weeks, had broken his contract, and so was entitled to recover nothing.2

Upon hearing on pleadings and proofs, the District Court held that Wells had violated his agreement by the 22 weeks operation in question, but that the Princess Company, having retained the full benefit and consideration otherwise, including Wells’ surrender of his exclusive contract with the Booking Offices and the procuring of the latter’s contract with the Princess Company, was liable to Wells for the amount of the agreed weekly payments, subject to the right of the Princess Company to recover such damages as it had suffered from' Wells’ breach. The master, to whom the ascertainment of such damages was referred, found that sum to be $9,906.27. The District Court set aside the master’s findings for reasons hereafter stated, and entered decree in Wells’ favor for $17,100 (the amount of the agreed weekly payments), with interest from the filing of the bill of complaint on the amount then due, arid on the weekly payments subsequently accruing from the time they respectively became due. Both parties appeal—Wells, on the ground that his showing of musical tabloid was not a breach of his contract; the Princess Company, not only because of the decree against it for the agreed weekly payments, [229]*229but because it was disallowed damages. Its further defenses will appear in the course of this opinion.

[1] 1. Jurisdiction, (a) The Princess Company contends that the present suit is not one of equitable, cognizance. This contention is without merit. The rule is well settled that one for whose benefit a promise is made, though not himself the promisee, may sue in equity for the enforcement of the promise. It is immaterial that the suit might have been maintained by the United Booking Offices.

[2] (b) The bill in the present suit was filed by Wells, as sole complainant, against the Princess Company and the Booking Offices. The District Court overruled a motion to dismiss on the ground that Wells had failed to prove that the Booking Offices had refused to join with him in bringing the suit or to lend him the use of its name. The bill alleged the Booking Offices’ refusal to institute suit or permit its name to be used for such purpose. The Booking Offices answered that it made no claim to the sum sought to be collected, had no interest in the litigation, and did not ally itself with either of the other parties. The District Court correctly held that the failure of Ihe Booking Offices to deny the allegation that it had refused to bring the suit must be deemed confessed under the Thirtieth equity rule (198 Fed. xxvi, 115 C. C. A. xxvi), and that its refusal to join as plaintiff may be inferred. Osgood v. Franklin, 2 Johns. Ch. (N. Y.) 1, 7 Am. Dec. 513. It is thus immaterial that in a former suit by Wells against the Princess Company alone the Booking Offices had been held a necessary party. There is nothing in the record of the previous suit in the state court by the Booking Offices against the Princess Company which militates against this conclusion. Moreover, Wells is not suing as assignee of the Booking Offices’ rights, nor in its interest. So far as concerns federal jurisdiction, through diversity of citizenship, it is immaterial whether the Booking Office is aligned with complainant or defendant. Wells will hereafter be called plaintiff, and the Princess Company will be called defendant.

2. Did Plaintiff Violate His Contract? The concrete question is whether, by producing musical tabloid, he in effect operated a vaudeville theater. Plaintiff produced 12 witnesses, including himself, all experienced in the theatrical world, including theatrical managers, a manager and producer, an operator and owner, a vaudeville promoter, and the editor of a theatrical paper. Their testimony tended to show the existence of a well-defined distinction between vaudeville- and musical tabloids—vaudeville consisting of a number of unrelated acts put together, thereby forming a varied or variety bill, the actors being separately engaged, and the performance having no plot; while musical tabloid, which originated but shortly before the contract in question was made, consists of a condensation of a musical comedy, given as an entirety by one company (paid as such), preserving the plot of the play,' the costumes, etc., but cutting out the dialogue, and perhaps otherwise abbreviating the performance, as well as lessening the number of performers, so enabling the presentation of the same performance several times a day and at low prices.

On the other hand, musical tabloids seem to have been devised to [230]

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Bluebook (online)
271 F. 226, 1921 U.S. App. LEXIS 1772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/princess-amusement-co-v-wells-ca6-1921.