Tony Williams v. Mercury Record Corporation

295 F.2d 284, 1961 U.S. App. LEXIS 3510
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 9, 1961
Docket13283
StatusPublished
Cited by1 cases

This text of 295 F.2d 284 (Tony Williams v. Mercury Record Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tony Williams v. Mercury Record Corporation, 295 F.2d 284, 1961 U.S. App. LEXIS 3510 (7th Cir. 1961).

Opinion

ENOCH, Circuit Judge.

Under authority of the Federal Declaratory Judgment Act, Title 28 U.S.C.A. § 2201, plaintiff herein, Tony Williams, filed complaint for declaratory judgment in the District Court. Mr. Williams* complaint alleges that, as members of a singing quintet known as “The Platters”, he and the other four members of the-singing group, entered into a contract, with defendant, Mercury Record Corporation (hereinafter called “Mercury”) on or about February 19, 1959. Mr. Williams stated that he had been advised by Mercury that he could not perform individually for any other recording company during the life of the aforesaid contract, and that legal action would be instituted against him if he should attempt such; performance. Mr. Williams prayed judgment, in this action, to the effect that the-contract in question did not restrict him, individually, from entering into other-contracts with third parties respecting his services in his individual capacity as: a singer.

Mercury answered averring that the' contract was executed with Mr. Williams- and the other four singers, both individually and as a group, and moved for judgment on the pleadings. Mr. Williams moved to strike Mercury’s motion for judgment on the pleadings and renewed' his own plea that the District Court find and declare that the written contract did not prohibit his accepting individual employment as a singer. A memorandum filed in support of Mr. Williams’ motion-included, as exhibits, an affidavit, other contracts, and related correspondence. Mercury moved to strike these exhibits-on the ground that Mr. Williams’ complaint had asserted no ambiguity in the contract sought to be construed, but that he had, nevertheless, submitted immaterial parol evidence in an effort to modify the provisions of the written contract. In the alternative, Mercury suggested that if the District Court concluded that the contract could be construed without resort to parol matters, Mercury felt it had stated its position adequately; but if the District Court should conclude that the contract was ambiguous and that resort to parol matters would be necessary, then Mercury requested an opportunity *285 to submit its own affidavits and exhibits; or that the Court direct the pleadings be amended to broaden the issues and the cause be set for trial.

On October 28, 1960, Mercury’s motion for judgment on the pleadings and Mr. Williams’ motion to strike Mercury’s motion were both argued and both taken under advisement. On December 6, 1960, the District Court filed a Memorandum Opinion construing the contract in Mr. Williams’ favor. The Court did consider the contract itself, copy of which was affixed to the original complaint as an exhibit. The Court also considered and commented on some of the other exhibits which had been filed in support of Mr. Williams’ motion to strike. On the same day, in accordance with that Memorandum Opinion, Mr. Williams’ motion to strike Mercury’s motion for judgment on the pleadings was sustained. Mercury’s motion for judgment on the pleadings was overruled. In addition, the cause was set for trial on February 1, 1961.

Under date of December 29, 1960, counsel for Mr. Williams served upon counsel for Mercury a document entitled: “Notice of Motion and Motion for Judgment” which reads:

“Please Take Notice that upon the Memorandum Opinion delivered by this court December 6, 1960, and the briefs heretofore filed, the undersigned will move this court at the United States Court House, Chicago, Illinois, on the 3rd day of January, 1961, at 10 o’clock A.M., or as soon after as counsel may be heard, for a declaratory judgment.”

No other written motion for judgment appears in the record submitted for our consideration. On January 3, 1961, after oral argument, the District Court entered an order granting Mr. Williams the declaratory relief sought by him, to the effect that the contract bound him only as to his performance as a member of the singing group, “The Platters.”

Mercury moved for a new trial and for reconsideration of the judgment, in support of which Mercury submitted an affidavit, other contracts, related documents and correspondence. Mr. Williams moved to strike the exhibits to Mercury’s motion for reconsideration, to deny the motion, and to set a date for hearing on damages. The District Court denied the motion for a new trial and the motion for reconsideration of the judgment of January 3, 1961. This appeal followed. Mercury characterizes as error both the ruling on construction of the contract and the failure to grant Mercury a full hearing.

The contract in question here is headed as follows:

“Recording Agreement
Mercury Record Corporation
Date of Execution: Feb. 19, 1959.
Name: Tony Williams, David
Lynch, Zola Taylor, Paul
Robi, Herbert Reed, a/k/a
‘The Platters’.
Address: c/o Buck Ram, 1608 N. Argyle, Hollywood, California.
We hereby employ you for the purposes of making phonograph records.”

The contract provides for a minimum of' 18 phonograph record sides during each six-month period; for royalties and method of computation, with a minimum, guaranty of $50,000 annually; for a term of three years, with an option to Mercury to extend the contract for three additional years.

The provision at issue here is Paragraph 5 of the contract which reads in part as follows:

“It is agreed that the services of the Artist are unique and extraordinary. Therefore, the Artist agrees that during the term of this contract, he will not perform any material for any person other than Mercury Record Corporation, for reproduction of any kind of his performances or any part thereof, * *

Mercury argues that this paragraph standing alone is clear and unambiguous and binds Mr. Williams not only as a *286 member of the group but also as an individual singer.

We believe that the paragraph standing alone is ambiguous in that it does not identify “the Artist”. Recourse must be had to other portions of the contract. Paragraph 17 states:

“ ‘Artist’ means the party or parties hereby contracting with Mercury, whether male or female, singular or plural.”

The artist parties to the contract are listed at the outset not only by their individual names but also by the group name. The wording of the minimum recording requirements, the provisions for payment of royalties, repeated references throughout the body of the contract to the group name, and the use of the group name in the signature, all support the construction that Mercury was dealing with these singers only as a group singing together, and not as so many individuals singing solo performances.

We do not reach the questions concerning parol evidence as we are of the opinion that the sole ambiguity found in Paragraph 5 of the contract is resolved by recourse to the other portions of the contract itself. Mercury stated, in its motion to strike those exhibits attached to Mr. Williams’ motion to strike Mercury’s motion for judgment on the pleadings, that:

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Bluebook (online)
295 F.2d 284, 1961 U.S. App. LEXIS 3510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tony-williams-v-mercury-record-corporation-ca7-1961.