United Artists Corp. v. Stinnett

101 S.W.2d 300
CourtCourt of Appeals of Texas
DecidedNovember 21, 1936
DocketNo. 12008
StatusPublished
Cited by2 cases

This text of 101 S.W.2d 300 (United Artists Corp. v. Stinnett) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Artists Corp. v. Stinnett, 101 S.W.2d 300 (Tex. Ct. App. 1936).

Opinion

JONES, Chief Justice.

This suit was instituted in a district court of Dallas county, by appellant, United Artists Corporation, against appellee, Ray Stinnett, to recover damages for the breach of several contracts entered into between them, under the terms of which appellee agreed to exhibit at different theatres belonging to him, motion pictures leased to him by appellant. On the findings of the jury, judgment was entered in favor of ap-pellee, and the appeal has been duly perfected to this court. The following are the necessary facts:

Appellant is engaged in the business of leasing pictures to be exhibited by lessees in moving picture theatres. At the time of the execution of the contracts, appellee operated a moving picture house at Cleburne, known as the “Yale Theatre.” On February 11, 1930, appellee contracted with appellant for the right to exhibit seven pictures in said theatre at Cleburne, and agreed to pay for such right the stipulated price of $100 each for six of said pictures, and $90 for another of said pictures, as evidenced by the seven separate written contracts. The contracts stipulated that the pictures should be exhibited as and when they respectively became available. All of these pictures became available on different dates from August 13, 1930, the date the first one became available, to October 1, 1930, when the last one became available, except the contract in respect to “12 United Artists Featurettes,” only seven of which became available. On these seven contracts, appellant alleged that the damage was $652.50, the listed rental price of each picture contracted to be exhibited, except that of “12 United Artists Featur-ettes,” the list price of which was $90, but as only seven of said featurettes became available, only seven-twelfths of the listed price of $90 is demanded.

On January 12, 1930, the parties entered into two other written contracts, under the terms of which appellee agreed to pay to appellant a rental of 35 per cent, of the gross receipts during the exhibition of such pictures. These became available, respectively, on January 22, 1930, and January 30, 1930. None of these pictures were exhibited by appellee, for the reason that on March 1, 1931, he sold the Yale Theatre at Cleburne, to another party, and such purchaser was not required by appellee to assume these contracts.

Appellant also sought to recover of ap-pellee the sum of $115, the aggregate contract license price for the exhibition of three other pictures in a theatre owned by appellee and known as the Palace Theatre at Cleburne. This claim was evidenced by three written contracts, naming the price of each picture, and the contract was entered into January 28, 1929. These pictures were never exhibited in the Palace Theatre by appellee.

Appellant sought to recover damages for the 'breach of other contracts, entered into between the parties on September 2, 1931, by the terms of which appellee bound himself to exhibit pictures named therein for a designated price, in his Gem Theatre at Temple, as and when such pictures became available, and it is shown that they all became available during the life of the respective contracts, the earliest date on which a picture became available was October 15, 1931, and the last date on which a picture became available was April 28, 1932. None of these were exhibited in the Gem Theatre at Temple, for the reason that, before any of them became available, appellee was compelled to give up his moving picture venture in Temple. It appears that appellee, during the years of about 1924 to 1929, had engaged in the moving picture business in Temple, and that in 1929 he had sold out to the Dent moving picture concern, and, as a part of the consideration for the sale, appellee had bound himself not to engage in the moving picture business in the City of Temple for a period of ten years, and this time had not expired. The building in which the Gem Theatre was operated had become vacant, and appellee, believing that his contract had been for five years instead of ten, and also understanding that Dent had sold his picture business to the “Publix” interest, believed that he had the right again to enter the picture show business in Temple, and so believed at the time he entered into the ten contracts with appellant. However, he stated to the agent of appellant with whom he dealt that, if he was mistaken about his right to operate a pic[302]*302ture show house in Temple, because of his previous contract with the Dent interests, he would expect the contracts to be canceled, and his testimony is that the agent agreed that such would be done, but the contracts, contained no such condition.

Under the undisputed evidence, an exhibitor who should desire to contract with appellant for the lease of a motion picture would give to the traveling agent of appellant a written and duly prepared application for such contract. Appellant’s agent would then deliver the application to the Dallas office, and it would be sent from there to the New York office for approval, and would have to bear the stamp of approval by the New York office before it would be an executed contract fo.r the exhibition of the pictures. The New York office had thirty days from the receipt of the application within which to approve or disapprove the same.

A few days after these Temple contracts were sent to the New York office for approval, appellee became convinced that he could not then enter the moving picture show business in the City of Temple, for he learned that the provision of his contract of sale in respect to the time to lapse before he could again enter the picture show business in Temple, was ten years, and that it would be enforced. He at once notified the salesman, H. A. Daniel, of this fact and requested a wire to New York, to the effect that he had withdrawn his application for moving picture rights at Temple. He also notified the state manager in the Dallas office of such fact and made the same request. This was several days before the New York office approved the said ten contracts. This question of notification and request by ap-pellee to notify the New York office of his withdrawal is disputed by both the sales agent who took appellee’s application and appellant’s state manager. However, the jury found .in favor of appellee on this contradictory evidence and such finding is binding on this court. The state manager, Mr. Roberts, also testified that, if such request had been made, it would have been an end to the matter, for he would have wired the New York office that the matter was ended because of appellee’s withdrawal of his application.

In respect to the Cleburne contracts, ap-pellee makes the additionál contention that he.later entered the moving picture business in the City of San Antonio and was approached by Mr. Buchanan, appellant’s sales agent, to sell picture films for the San Antonio theatre; that he informed the agent that the Cleburne contracts had not been formerly canceled and, unless they were canceled, he would not buy any pictures; that said agent told him, in effect, that they would be canceled, for it was the policy of appellant never to sue on a claim against a client with whom it was doing business; that he could not put the cancellation of the Cleburne contracts in as a consideration for the San Antonio contracts, because the New York office would disapprove same, send it back, and it would be a long time before it could be gotten through in such form, but that he would promise appellee, that he (the agent) would see that such contracts were canceled.

Appellee’s testimony was contradicted by the agent, but the jury findings show that appellee’s testimony was accepted.

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Bluebook (online)
101 S.W.2d 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-artists-corp-v-stinnett-texapp-1936.