Shubert v. Woodward

167 F. 47, 92 C.C.A. 509, 1909 U.S. App. LEXIS 4322
CourtCourt of Appeals for the Eighth Circuit
DecidedFebruary 4, 1909
DocketNo. 2,954
StatusPublished
Cited by39 cases

This text of 167 F. 47 (Shubert v. Woodward) 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
Shubert v. Woodward, 167 F. 47, 92 C.C.A. 509, 1909 U.S. App. LEXIS 4322 (8th Cir. 1909).

Opinion

SANBORN, Circuit Judge

(after stating the facts as above). The complainants pray in their bill, and the orders challenged grant, a temporary injunction against the violation by the defendants of the contract of May 4, 1908. The act of Congress which confers jurisdiction of appeals from orders granting or continuing injunctions provides that an appeal may be taken where “upon a hearing in equity” such an order is made (Act April 14, 1906, c. 1627, 34 Stat. 116 [U. S. Comp. St. Supp. 1907, p. 208]), and counsel insist that these orders are not appealable, (1) because they grant an injunction until the further order of the court, but an injunction until the further order of the court is equally appealable with one until a time certain, and (2) because when the defendants presented their affidavits and letters in answer to the order to show cause why the injunction should not issue against them, the court declined to hear these affidavits and letters or to hear counter affidavits which were not prepared and hence do not appear in the record, and granted the injunction without regard to these proofs for the purpose of maintaining the existing state of affairs until the validity and construction of the contract could be judicially determined at the final hearing of the suit. But the affidavits and letters presented by the defendants constituted admissible evidence in their behalf in opposition to the order for the injunction. Either party may read pertinent affidavits and admissions at such a hearing. Equity Rule 5§; Bates on Federal Equity Procedure, § 534; 3 Daniel!, 275,. 297. These affidavits and letters were introduced in response to the order to show cause at the proper time in the presence of the court and counsel, and at the hearing upon which the court decided to grant the injunction. A hearing by a federal court in equity at which the admissible evidence of a litigant is disregarded and an order or decree is rendered against him is no less a hearing in equity than one in which his evidence is considered, and the orders granting the injunction were appealable.

Moreover, whether the court below considered the affidavits and letters or not, the appellate court may not lawfully disregard them. [53]*53because upon an appeal in equity the question always is in a national appellate court whether or not the order or decree challenged is sustained by the competent and relevant evidence presented by the record before it. Blease v. Garlington, 92 U. S. 1, 8, 23 L. Ed. 521; First National .Bank v. Abbott (C. C. A., filed November 24, 1908) 165 Fed. 852; Missouri American Electric Co. v. Hamilton Brown Shoe Co. (C. C. A., filed November 16, 1908) 165 Fed. 283; Dreulzer v. Frankfort Land Company, 65 Fed. 642, 644, 13 C. C. A. 73.

The injunctional orders in this case are unique. They enjoin the defendants from interfering with such management and control of the Shubert Theater by the complainants “as is granted unto complainants in and by the written instrument set out in plaintiffs’ petition,” and they enjoin the complainants from interfering with the management oí the theater, “except Linder the exact terms specified in the contract made between the parlies,” declare that it is the express object of the orders “to compel a strict observance of the rights granted by and the obligations incurred by the terms employed in the contract until its validity or invalidity may be determined on full proofs by final decree,” and that in case dispute should arise between the pardes, application may be made to the court for temporary construction of the contract and for further orders. When these orders were made on September 14th and September 23d respectively, the record was replete with proof that an irreconcilable conflict had arisen between the parties over the construction of the contract before the suit was commenced; and on October 2, 1908, upon further application, the court ordered that Woodward should exercise the powers of general manager of the theater and of its business, “subject, however, to the provisions of the contract in all respects”; that the defendants’ treasurer should exercise the powers of a treasurer; that disputes about claims for expenses should be determined by a special master who was appointed by the order; and that the purpose of the order was “to preserve the status of the property and require the operation and conduct of the business of the Shubert Theater in strict accordance with the contract between the parlies.” It is clear from a review of these orders that their legal effect was to enjoin the defendants from committing any breach of the terms of the agreement of' May 4. 1908.

Xu injunction against the breach oí a contract is a negative decree of specific performance of the agreement, and the general rule is that: the power and the duty of a court of equity to grant the former is jncr.sii.red by the same rules, principles, and practice as its power and duty to grant the latter relief. 4 Pomeroy’s Equity Jurisprudence (3d Ed.) § 1341; General Electric Co. v. Westinghouse Elec. & Mfg. Co. (C. C.) 144 Fed. 458, 463; Welty v. Jacobs, 171 Ill. 624, 631, 49 N. E. 723, 40 L. R. A. 98; Chicago Municipal Gas Light Co. v. Town of Lake, 130 Ill. 42, 60, 22 N. E. 616. This, like most general rules, is not without its exceptions, under which injunctions may be lawfully issued to restrain the performance of specific acts in violation of agreements whose specific performance the courts would not completely enforce, as where certain acts violative of an agreement con[54]*54stituted an infringement of complainant’s patents (General Electric Co. v. Westinghouse Electric Co. [C. C.] 151 Fed. 664, 675), or a breach of a partnership agreement (Leavitt v. Windsor Land & Investment Co., 54 Fed. 439, 443, 4 C. C. A. 425), although a court of equity will not enjoin all breaches of a partnership agreement and in that way enforce specific performance of it (Marble Co. v. Ripley, 10 Wall. 339, 350, 19 L. Ed. 955), or the violation of a negative covenant, express or implied, where the prohibition will have the effect or tendency, as in the case of a singer’s or of a ball-player’s contract, to compel performance of the agreement (Lumley v. Wagner, 1 De Gex, M. & G. 604; Philadelphia Ball Club v. Lajoie, 202 Pa. 210, 51 Atl. 973, 974, 58 L. R. A. 227, 90 Am. St. Rep. 627; Singer Sewing-Machine Co. v. Union Button Hole & Embroidery Co., 1 Holmes, 253, 22 Fed. Cas. No. 12,904; Chicago & A. R. R. Co. v. N. Y., L. E. & W. R. R. Co. [C. C.] 24 Fed. 516, 520; McCaull v. Braham [C. C.] 16 Fed. 37; Goddard v. Wilde [C. C.] 17 Fed. 845); but a prohibition of the complainants from managing other theaters would have no tendency to compel them to manage the Shubert Theater according to the agreement, and in the absence of such a tendency this contract lacks mutuality, or where the validity of the contract conditions the right to the possession and a court forbids a forcible taking until the soundness of the agreement can be determined (Western Union Co. v. St. J. & W. Ry. Co. [C. C.] 3 Fed. 430), but the_ validity of this contract is not determinative of the right of possession of the Shubert Theater. The case at bar does not fall under any of these exceptions, and it is governed by the general rule. The bill is not leveled at any specific violation or any specified series of breaches of the agreement.

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Bluebook (online)
167 F. 47, 92 C.C.A. 509, 1909 U.S. App. LEXIS 4322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shubert-v-woodward-ca8-1909.