Radio Picture Show Partnership v. Exclusive International Pictures, Inc.

482 N.E.2d 1159, 1985 Ind. App. LEXIS 2799
Indiana Court of Appeals·Decided September 24, 1985·No. 1-684A141·Published·Cited by 23 cases

Opinions

STATEMENT OF THE CASE

NEAL, Judge.

Defendant-appellants, Radio Picture Show Partnership (Radio), Roxxon Entertainment Corporation (Roxxon), 8622 Limited, Encore Properties, Inc. (Encore), and WEMCO, Inc. (WEMCO), appeal an adverse judgment for breach of contract rendered by the Knox Superior Court, without [1161] a jury, in favor of Exclusive International Pictures, Inc. (Exclusive).

We affirm.

STATEMENT OF THE FACTS

A chronological statement of the facts most favorable to support the judgment is as follows: Pursuant to various forms of correspondence occurring between K.A. Green, president of Roxxon, and Eddie Stewart, vice president of Exclusive, including numerous phone calls, letters, and promotional materials, Green sought to employ Stewart's services for the distribution of a film entitled "The Radio Picture Show." Subsequently, Green drafted the contract in question on January 29, 1980, on stationery with a letterhead "Roxxon Program Sales" in California and mailed it to "Mr. Eddie Stewart, Exelusive International Pictures" in Vincennes, Indiana. Green signed the letter "Sincerely, ROXX-ON PROGRAM SALES, division of THE RADIO PICTURE SHOW PARTNERSHIP, ... K.A. Green, President of Its General Partner, ROXXON ENTERTAINMENT CORPORATION." It was executed "READ UNDERSTOOD AND AGREED: EIP, By Eddie Stewart, Pres. Date 2-4-80.- " Eddie Stewart returned an executed copy to Green. The body of the executed copy reads as follows:

"This letter will set forth our understanding of the relationship between you, as an independent producers sales representative, and Roxxon Program Sales, division of The Radio Picture Show Partnership, hereinafter referred to as the "Company".
1. You are hereby appointed as a representative for the sale of the Company's products for the following territory, more fully described by State name: DELAWARE; DIST OF COLUMBIA; ILLINOIS; INDIANA; IOWA; KENTUCKY; MICHIGAN; MINNESOTA; MISSOURI ...; NEW JERSEY; OHIO; PENNSYLVANIA; TENNESSEE; VIRGINIA; WEST VIRGINIA; WISCONSIN. [Penned-in, N.Y. NJ. CONN. RL MASS. E.S.]
It is recognized and agreed that you are not an agent or employee of the Company for any purpose whatsoever, but have contracted to act as an independent representative, and that you will comply with the laws and regulations of the various jurisdictions in your territory in selling the Company's products.
You will devote such time, talent and effort as may be necessary to effectively promote and maximize the sale of the Company's product in your territory.
You will keep the Company advised of your activity with regards to sales and solicitation of sales and agree not to make any representations, guarantee or warranty with respect to the Company's product, except as is authorized by the Company in its policy, literature and sales material.
All exhibition license agreements are subject to the approval and acceptance by the Company at its main office.
For services rendered under this Agreement, the Company shall pay you Twenty-Five (25) *********3 commission on its Net Sales within stated territory.

For purposes hereof, the term "Net Sales" shall mean the total gross sales less discounts, all allowances and credits granted.

7T. Within 20-days after the end of each calendar month following shipment of the products, the Company shall render a report to you, showing the amount of commissions payable and basis on which it was determined. In addition, the report shall show collections due. Each such report shall be accompanied by the payment in full of any commissions due, on collected accounts, for such calendar month.
This Agreement may be altered or amended at any time by mutual agreement. This Agreement may be [1162] terminated by either party by giving thirty (80) days written notice.
If you approve and accept the provisions of this Agreement, please acknowledge the enclosed copy and return it to me as soon as possible."

Before executing the agreement, Stewart, pursuant to prior consultation and agreement with Green, made the penned in changes in the contract and initialled them, adding to his territory New York, New Jersey, Connecticut, Rhode Island, Massachusetts, and striking out the limitations on Missouri.

Thereafter, Stewart contacted 100 to 120 television stations in his territory, including Indiana stations in Evansville, Fort Wayne, Terre Haute and Elkhart, attempting to sell the film for cash rental. Promotional materials were then sent directly from Radio to those stations solicited. Stewart received a positive response, but prospective buyers indicated a desire to wait until after the NAPTI Convention (a national convention where television programs are viewed, offered and sold). Upon recontact after the convention, Stewart was told by prospective buyers that the film was being offered in his territory on a barter basis by others. (A barter is apparently where a show is traded to a station for advertising time which the seller then markets if he can). Stewart complained to Green on March 25, 1980, and Green told him he had been replaced. However, no notice of termination of the agreement was given to Exclusive in writing pursuant to paragraph 8 until March 25, 1981, when such a notice was given by letter by the law firm of Kaplan, Livingston, Goodwin, Berkowitz and Selvin of Beverly Hills The notice stated only that the contract had been can-celled on March 31, 1980, and if it wasn't, it was now cancelled pursuant to paragraph 8 of the contract. Litigation had been commenced August 14, 1980.

Radio had given one Raymond Horn an exclusive contract around May or June of 1980 to sell the film in the entire United States, and for his services, Horn received $19,190.00. Among other states in Exelu-sive's territory where Horn sold the film was Indiana, where it was sold and shown in Terre Haute, Fort Wayne and South Bend. Upon Green telling Stewart that Exclusive had been replaced, Stewart ceased further effort to sell.

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Radio Picture Show Partnership v. Exclusive International Pictures, Inc., 482 N.E.2d 1159, 1985 Ind. App. LEXIS 2799 (Ind. Ct. App. 1985).

482 N.E.2d 1159 (Radio Picture Show Partnership v. Exclusive International Pictures, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Radio Picture Show Partnership v. Exclusive International Pictures, Inc.
482 N.E.2d 1159 (Indiana Court of Appeals, 1985)