Southwestern Publishing Co. v. Ney

302 S.W.2d 538, 227 Ark. 852, 1957 Ark. LEXIS 506
Supreme Court of Arkansas·Decided May 20, 1957·No. 5-1276·Published·Cited by 12 cases

Opinions

Carleton Harris, Chief Justice.

American Television Co., Inc., (hereinafter called American) held a construction permit issued by the Federal Communications Commission for a Channel 5 television station in Fort Smith. H. S. Nakdimen was the sole stockholder and president of American. Appellee, George T. Hernreich, held an option to purchase 50% of the stock of American. Hernreich and American agreed, by written contract, to assign said construction permit to appellant for a monetary consideration subject to approval of the Federal Communications Commission.1 The assignment agreement obligated appellant, American, and Hernreich to file application seeking FCC’s approval of the assignment, and to further cooperate in preparing and filing additional information or amendments to the application for the purpose of obtaining the Commission’s approval. The assignment provided that the agreement between the parties should be void unless the Federal Communications Commission approved the application for the assignment of the permit by February 1, 1955, except said agreement be extended by the contracting parties. All parties did agree to such extension in writing, setting the new expiration date as April 1, 1956. Shortly after the extension agreement, Mr. Nakdimen died. Appellee, Jerome M. Ney, as chairman of a group styled “Citizens Group for Two Television Stations in Fort Smith,” filed a petition with the Commission asking that the group be permitted to intervene as a party to the proceedings, and requesting that the Commission reopen the record, set the matter for oral argument, set aside the initial decision, and remand the proceedings to the examiner for further hearings.2 Because of the requests of this group, the Commission, on its own motion, set the matter for oral argument, which was heard on March 20. Since it appeared that a decision on the approval of the assignment might not be rendered before April 1st, appellant sought a further extension from the officers and directors of American and from Hernreich. This was refused. On June 20th, the Commission entered its order providing: “In our view, all the pleadings now before us for disposition, filed by Southwestern, are moot by virtue of the expiration of the assignment contract, and accordingly, they must be denied.” Appellant thereafter filed suit against appellees, later amended its complaint, and subsequently amended the amended complaint, seeking damages in the sum of $250,000. A further prayer was “that it be adjudged and decreed that any interest in or right to acquire the aforesaid television construction permit for Channel 5 at Fort Smith, held by the defendants or either of them, is held unlawfully and is impressed with a constructive trust in favor of plaintiff.” Appellees filed their separate demurrers to the complaint, amended complaint, and amended amended complaint, stating that such pleadings did not state facts sufficient to constitute a cause of action. Said demurrers were sustained by the court and the complaint dismissed; from such action comes this appeal.

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

Southwestern Publishing Co. v. Ney, 302 S.W.2d 538, 227 Ark. 852, 1957 Ark. LEXIS 506 (Ark. 1957).

302 S.W.2d 538 (Southwestern Publishing Co. v. Ney) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related