United States v. Schine Chain Theatres, Inc.

1 F.R.D. 205
District Court, W.D. New York·Decided January 17, 1940·No. No. 223·Published·Cited by 13 cases

Opinion

KNIGHT, District Judge.

Motions are made by the several defendants for a more definite statement and for a bill of particulars of the complaint herein under Rule 12(e) of the Federal Rules of Civil Procedure, 28 U.S.C.A. following section 723c. The suit is brought for violations of the Sherman Anti-Trust Act, 15 U.S.C.A. §§ 1-7, 15 note. The [207]*207Schine defendants operate numerous motion picture theatres in five different states. The other defendants are distributors from whom moving picture films are purchased by the Schine defendants. The complaint charges conspiracy between said operators and distributors and also a monopoly by the exhibitor defendants. It includes charges alleged to extend over a period of twenty years and involving many acts of each of the parties defendant to the suit. Demand is made for answers to many hundreds of different particulars. While the court has a broad discretion in applications of this nature, the great importance of the charges set forth in the complaint, both as regards the individual defendants and the public, compel most careful consideration of the demands and the bases upon which they are laid. Each demand and its relation to the purpose of the rule will be examined separately. As regards certain of these demands, the disposition of the major question may dispose of those which were supplementary to it.

Rule 12(e), in part, provides: “a party may move for a more definite statement or for a bill of particulars of any matter which is not averred with sufficient definiteness or particularity to enable him properly to prepare his responsive pleading •or to prepare for trial.”

The purpose in the adoption of the new Rules of Civil Procedure was to .unify and simplify the procedure in District Courts in civil actions. To this end Rule 1 declares they are to be construed '“to secure the just, speedy, and inexpensive determination of every action;” Rule •8(a) provides that “A pleading * * * •shall contain * * * a short and plain statement of the claim showing that the pleader is entitled to relief, * * * ”; Rule •8(e) provides that a pleading “shall be simple, concise, and direct”; Rule 8(f) that “All pleadings shall be so construed .as to do substantial justice”; and generally speaking, pleading ultimate facts is sufficient. Swift & Co. v. United States, 196 U.S. 375, 25 S.Ct. 276, 49 L.Ed. 518.

Former Equity Rule 20, 28 U.S.C.A. following section 723, authorized two distinct motions for two distinct purposes: 1 — to make the complaint more definite and certain; and 2 — for a bill of particulars. The former, being essentially in aid •of the answering pleader, was made before answer; the latter, in aid of the trial, was •made after issue joined. The new rules, 26 to 37, inclusive, include greatly extended provisions for taking of depositions, discovery and interrogatories. It is significant that such depositions can be taken with leave of the court upon the obtaining of jurisdiction, as well as after issue joined, without such leave.

Rule 12(e) has been considered by the courts many times. This has resulted largely because of the provision that the motion may be made to enable the party “to prepare for trial.” Standing alone, the meaning is not clear and is susceptible of the interpretation that it permits a broad examination as to the facts, on the theory that it is necessary in order to prepare for the actual trial of a suit. Doubtless this interpretation has been sought in many instances for different reasons. Since the bill of particulars becomes a part of the pleading, such examination necessarily limits an opponent in his proof. Again, after a bill had been furnished, a party may apply for a discovery covering largely, perhaps, the same ground, but from another viewpoint. Unnecessary delay and confusion in the trial would result. Duplication of proceedings is not in harmony with the new rules. However, when 12(e) is considered in connection with the provisions for discovery and interrogatories, it seems plain that the intent of the draftsmen was that the words “to prepare for trial” relate only to matters necessary to be known to a party to put his pleading in such shape that all the issues might understandingly be met. The two provisions of the rule are to be read with substantially equal effect. The bill of particulars was not intended to take the old meaning and have the old use of the former bill of particulars. Considering the discovery and interrogatory provision, this would have been a clear duplication. The meaning of this rule is clearly stated in the discussions and presentation of the rules by the drafting committee before their adoption. As was said by Dean Clark (now Circuit Judge), who was a member of the committee which drafted the rules of procedure and took active part in their preparation: “We tried to do away with any formal difference between the two in effect or in result. Each one becomes a part of the pleading.” The purpose of each of the separate provisions of Rule 12(e) is the same. Moore’s Federal Practice, p. 654; Vol. 1. Apparently Rule 12(e) was designed to avoid any distinction between these two practice motions. McKenna v. [208]*208United States Lines, D.C., 26 F.Supp. 558. There are many other opinions to the same effect.

“Evidence and proof can not he made a part of the pleadings under Rule 12(e), thereby destroying the fundamental distinction between the ultimate facts, which alone should be pleaded, and the evidence and proof upon which these facts are based.” Massachusetts Bonding & Ins. Co. v. Harrisburg Trust Co., D.C., 27 F.Supp. 987. “One way of obtaining proof before trial is through interrogatories but never through a bill of particulars. * * * To construe Rule 12(e) so as to destroy the fundamental distinction between pleading and proof has never been suggested or intimated by any commentator.” Jessup & Moore Paper Co. v. West Virginia Pulp & Paper Co., D.C., 25 F.Supp. 598, 599. “While it is- doubtless more convenient for counsel to seek the information in such a motion as this, it is not thought that Rule 12(e), 28 U.S.C.A. following section 723c, was framed as an alternative to, or supplement of, the provisions touching discovery.” Bicknell v. Lloyd-Smith, D.C., 25 F.Supp. 657, 658. Among the many other cases which have construed the meaning of this rule as here are: American LaFrance-Foamite Corp. v. American Oil Co., D.C., 25 F.Supp. 386; Fried v. Warner Bros. Circuit Management Corp., D.C., 26 F.Supp. 603; Abruzzino v. National Fire Ins. Co., D.C., 26 F.Supp. 934; Abel v. Munro, D.C., 27 F.Supp. 346; Adams v. Hendel, D.C., 28 F.Supp. 317; Sure-Fit Products Co. v. Med-Vogue Corp., D.C., 28 F.Supp. 489; Moog v. Warner Bros. Pictures, Inc., D.C., 29 F.Supp. 479; Sharp v. Pennsylvania-Reading Seashore Lines, D.C., 1 F.R.D. 16; Wisconsin Alumni Research Foundation v. Vitamin Technologists, Inc., D.C., 1 F.R.D. 8; Alropa Corp. v. Leo L. Heyn et al., D.C., 30 F. Supp. 668; McCarthy v. Thomas M. Schumacher et al., D.C., 1 F.R.D. 8.

Necessarily in applying Rule 12 (e) the court must take into consideration the nature and complexity of the suit. Preparation of the proper pleading for trial in this suit requires a statement of matters and their relation to each other far more extensive from that in a simple pleading on contract or in negligence. The court has been conscious of this. It has sought to be liberal in acting on the demands.

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United States v. Schine Chain Theatres, Inc., 1 F.R.D. 205 (W.D.N.Y. 1940).

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