Robbinsdale Amusement Corp. v. Warner Bros. Pictures Distributing Corp.

141 F. Supp. 134, 1955 U.S. Dist. LEXIS 2171, 1955 Trade Cas. (CCH) 68,233
CourtDistrict Court, D. Minnesota
DecidedDecember 30, 1955
DocketCiv. 4584
StatusPublished
Cited by10 cases

This text of 141 F. Supp. 134 (Robbinsdale Amusement Corp. v. Warner Bros. Pictures Distributing Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robbinsdale Amusement Corp. v. Warner Bros. Pictures Distributing Corp., 141 F. Supp. 134, 1955 U.S. Dist. LEXIS 2171, 1955 Trade Cas. (CCH) 68,233 (mnd 1955).

Opinion

NORDBYE, Chief Judge.

This cause came before the Court on a complaint filed by plaintiff under the anti-trust íaws of the United States! wherein it seeks an injunction and the recovery of damages.

The plaintiff corporation is the owner' of a neighborhood or suburban theater located in Robbinsdale, Minnesota, called the Terrace, which was constructed between 1949 and 1951 at a cost of approximately $500,000. The stock of the corporation is owned principally by the Volk brothers, who also control and operate, by different corporations, however, other neighborhood or suburban theaters in Minneapolis called the Riverview, the Nile, and the Camden.

Robbinsdale is a suburban residential city of some fourteen thousand population which borders the north city limits of Minneapolis. It has no substantial industries or large hotels or business activities except those commonly found in the usual suburban city. Only one in ten of its inhabitants is employed in the commercial area of the city itself; the majority of its residents are employed in Minneapolis.

At the request of plaintiff, the Court personally visited the Terrace and observed the surrounding area. The theater is beautiful and well-designed. It is equipped with several modern and highly desirable innovations, such as staggered seats, a sound-proof nursery room, zone heating and cooling, a lounge, a soft drink and snack bar, and a television room for the use and entertainment of patrons who are awaiting the beginning of a feature picture or are tarrying in the theater lobby for any other purpose. In addition to these outstanding features, adequate and free parking grounds are furnished for its patrons. The theater is situated in a residental community surrounded by small and modest homes and is accessible mainly by automobile transportation. In view of the expensive and somewhat lavish construction of the Terrace in relation to its location and surroundings, one must' conclude that this site for such a theater is one which is not particularly desirable. '

Each of the distributor defendants is a producer and distributor of motion • *136 picture films, with the; exception of United Artists which apparently limits Redistribution to motion pictures produced, by others. Minneapolis Theatres,. Inc., is engaged in operating the Orpheum and the Pan theaters in downtown Minneapolis. It is a wholly owned subsidiary , of RKO Keith-Orpheum Theatres, Inc. The parent company operates numerous motion picture theaters throughout the Nation. The Minnesota Amusement Company is the operator of theaters in Minnesota, North and South Dakota, and Wisconsin. This exhibitor is a subsidiary of the American Broadcasting-Paramount Theatres, Inc., which controls a large national operation of motion picture theaters. The Minnesota Amusement Company, hereafter referred to as M.A.C., operates the Radio City, State, Lyric and Aster theaters in Minneapolis, which are so-called downtown theaters, and also the Uptown, the Loring, and the Rialto, which are suburban or neighborhood theaters.

Minneapolis is a city with a population well over half a million and sui’rounded by smaller cities and communities which have shown tremendous residential growth, particularly since the last war. But although the greatest growth in population in metropolitan Minneapolis is to be found in the suburban areas, nevertheless, Minneapolis remains a city with a hub or loop where the large hotels, department stores, banks, office buildings and entertainment places are located. Local shopping centers are springing up in the suburban areas, but Minneapolis, at least up to this time, has remained a so-called loop city where transients come to the large hotels and where people do the greater share of their shopping in the large department stores and numerous shops. And it is in the loop area that the people largely seek their entertainment, uplifting or otherwise. Since the early beginning of motion picture history, the downtown theaters, at least in Minneapolis, have been accorded the first run of the showing of the desirable pictures. The distributors expect that the downtown showing will not only attract downtown patronage from transients-, and others, but also will give the picture advertising and publicity. The so-called “show case” first-run exhibition of pictures downtown undoubtedly builds the picture, not only for the suburban theaters, but for theaters in the surrounding trade area of Minneapolis as well. The first-run theaters showing the better pictures in Minneapolis are the Radio City, the State, the Orpheum, and the World. The Lyric and the Pan usually operate on first run, but generally have Class B or C pictures. These two theaters, during the period in controversy, also upon occasions have operated on pictures moved over to them from the Radio City, the Orpheum, and the State. Move-over pictures exhibited by the Lyric come from either the Radio City or the State, while the Pan plays move-over pictures which come from the Orpheum.

Since 1948, the first-run theaters in Minneapolis have been accorded a minimum 28 day clearance over all other theaters. The 28 day clearance has been applied to the Terrace, the Uptown, the Boulevard, the Riverview, the Hopkins, the St. Louis Park, the Richfield, and the Edina theaters, and perhaps others. These theaters' last mentioned may be designated as neighborhood or suburban theaters. No one questions that the first showing of a picture enhances its attraction to motion picture patrons. On the other hand, it is generally recognized that first-run houses which exploit pictures under the heavy expense of advertising and a large overhead, and which are the source of the largest revenue for the distributors, are entitled to a reasonable clearance over second-run theaters which are in competition with them. Whatever the situation may be in other cities, such as Los Angeles, for instance, where there are communities within the city limits with a distinct community life of their own, Minneapolis remains a city grown populous around the proverbial downtown loop area. As illustration of the film rental paid by the first-run theaters, reference may be made to tab *137 ulations computed on forty-six of the better pictures which played first run in downtown theaters during the period in controversy. The film rentals on these pictures paid by downtown theaters on first run totaled $520,178, or 59 per cent of the film rental paid by all theaters in the Minneapolis metropolitan and suburban areas. The theaters playing these pictures 28 days after close of first run downtown paid film rental of $152,674, and from all other suburban and neighborhood theaters in the Minneapolis metropolitan area, the film rental on these pictures was $205,725.

When the Terrace was being erected, the Volks began to negotiate with the defendant distributors for a better run than the 28 day availability. Their argument was that the Terrace, with its superior appointments and comfort for its patrons and therefore its potentialities for the payment of favorable film rental, entitled it to a better run than the other suburban theaters. On March 17, 1951, it requested a 14 day availability. On October 29, 1951, it reiterated its request. On April 3, 1953, it demanded an exclusive second-run playing position in Minneapolis regardless of whether that playing position was called a second run or a move-over.

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Bluebook (online)
141 F. Supp. 134, 1955 U.S. Dist. LEXIS 2171, 1955 Trade Cas. (CCH) 68,233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robbinsdale-amusement-corp-v-warner-bros-pictures-distributing-corp-mnd-1955.