United States v. Shubert

305 F. Supp. 1288, 1969 U.S. Dist. LEXIS 13057, 1969 Trade Cas. (CCH) 72,859
CourtDistrict Court, S.D. New York
DecidedJuly 24, 1969
DocketCiv. A. No. 56-72
StatusPublished
Cited by2 cases

This text of 305 F. Supp. 1288 (United States v. Shubert) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Shubert, 305 F. Supp. 1288, 1969 U.S. Dist. LEXIS 13057, 1969 Trade Cas. (CCH) 72,859 (S.D.N.Y. 1969).

Opinion

MEMORANDUM DECISION

LASKER, District Judge.

Select Theatres Corporation, a defendant herein (“Select”), moves for an order permitting it to acquire a beneficial interest in and to operate the theatre being constructed at the Century City complex in Los Angeles, California. The motion is made pursuant to the final judgment filed in this action on-[1289]*1289February 17, 1956, which provides in relevant part in Section XXVII:

“Jurisdiction is retained by this Court for the purpose of enabling any of the parties of this Final Judgment to apply to this Court at any time for such further orders or directions as may be necessary or appropriate for the construction or carrying out of this Final Judgment, for the amendment or modification of any of the provisions, for the enforcement of compliance therewith, and for the punishment of violations thereof.”

and in Section XXV:

“Defendants are enjoined from acquiring a beneficial interest in any theatre, provided that
******
“(B) * * * defendants may acquire a beneficial interest in any theatre
“(1) * * * upon an affirmative showing to this Court that such acquisition will not unduly restrain competition * *

By the terms of the 1956 decree, defendants were enjoined from a variety of practices and required to divest themselves of their interests in a large number of theatres in New York, Boston, Chicago, Detroit and Philadelphia. In addition, the Shuberts since the date of the decree have disposed of their interests in theatres in Baltimore and Toledo and theatres in Boston and Chicago other than those which they were ordered to sell.

The decree provides that representatives of the Department of Justice may have access to the records and papers of the defendants for the purpose of securing compliance, and the Department of Justice has in fact kept itself continually advised on this subject. It is undisputed that the defendants have been and are presently in compliance with the decree as it has been amended from time to.time.

In December of 1968, the defendant Select advised the Justice Department of its desire to acquire an interest in the theatre being constructed at the Century City complex in Los Angeles.1 The Department considered the proposal and found no objection from its point of view. On May 13, 1969, in anticipation of the argument on the motion herein, the Assistant Attorney General of the Antitrust Division addressed letters to persons who were operating legitimate theatres or were “connected with the production of legitimate attractions,” and who therefore, in the opinion of the Assistant Attorney General, would have an interest in the outcome of Select’s motion. The letter requested the addressees to indicate their “views on the question whether the acquisition of this theatre by Select would unduly restrain competition.” It also advised such interested persons: “In addition regardless of what the Government’s position will eventually be, if you should desire to make your position known to the Court as an amicus curiae and the Court sees fit to permit you to do so, we will have no objection to your doing this.” The letter concluded by specifying the scheduled date of the hearing on the motion and requested an early reply so that the Government would have such information available in advance of that date.

A number of persons responded to the Assistant Attorney General’s letter favoring defendant’s application. (Exhibits F-l through F-10 to Affidavit of Lawrence S. Lawrence, Jr., sworn to July 7, 1969). The only objector, and the only person to appear at the argument on the motion, was Nederlander Theatrical Corporation (“Nederlander”). At that argument a representative of the Antitrust Division ap[1290]*1290peared and orally stated to the Court that the Government found the defendants in compliance with the decree, that except for the objection of Nederlander no interested persons had indicated any opposition, and that the Government would not oppose the granting of the motion. Nederlander appeared by counsel and applied for leave to appear as amicus curiae and to submit evidence to the Court in opposition to the motion. No such evidence in affidavit or other form was offered by Nederlander at the argument. The Court allowed Nederlander two days in which to submit an affidavit intended to constitute an cf. fer of proof, and reserved decision.

Pursuant to the Court’s permission, Nederlander submitted on June 26, 1969, an affidavit of James N. Nederlander, President of Nederlander Theatrical Corporation, sworn to that day. The Nederlander affidavit argues that the acquisition by the defendant Select of an interest in the Century City theatre in Los Angeles would “unduly restrain competition” within the meaning of the decree and of the relevant statute. Nederlander contended that the relevant market by which restraints of competition in the theatre industry were to be measured consisted of Chicago, Los Angeles and New York; that the defendants already had a dominant position in New York and Chicago and that the acquisition of an interest in what will be the largest legitimate theatre in Los Angeles, when added to their ownership in Chicago and New York, would indeed restrain competition.2 Further, Nederlander contends that the characteristics and operating policies of the theatres presently being operated in Los Angeles are such that [1291]*1291if the motion were granted Select or Shubert would acquire “100% total dominance in Los Angeles of theatres able to handle large musical and dramatic attractions on an open-end booking.”

The Court requested the Antitrust Division to submit to the Court- its views as to the Nederlander position as set forth in Mr. Nederlander’s affidavit and to advise the Court, in the light of the affidavit, what its position was as to the merits of the instant motion. The Court also afforded Select an opportunity to file a supplemental affidavit in answer to that of Nederlander.

The Government has submitted a memorandum concluding, on the basis of the present record, not to oppose the granting to Select of its request to acquire an interest in the Century City theatre. Select has submitted in opposition to Nederlander’s affidavit the impressive affidavit of Lawrence S. Lawrence, Jr., sworn to July 7, 1969.

* * -35-

I.

On the basis of the documentary record described above, that is, the original affidavit of Lawrence S. Lawrence, Jr., the affidavit of Nederlander and its supporting documents, the memorandum of the Government, and the supplemental affidavit of Lawrence S. Lawrence, Jr. and its supporting documents, the Court concludes that there is no need for a hearing on the motion nor any serious doubt that the defendants have made the affirmative showing required by the decree that the acquisition by Select of the proposed interest in the Century City theatre will “not unduly restrain competition” either within the meaning of the decree or of the governing statute. While the statistics presented in the Nederlander affidavit indicate the natural narrowness of competition within the theatre industry, they do not establish that competition will be lessened by Select’s acquisition of the Century City theatre in Los Angeles. Indeed, as the Government states in its memorandum :

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

Related

United States v. Shubert
491 F. Supp. 59 (S.D. New York, 1980)
Alexander v. Hall
64 F.R.D. 152 (D. South Carolina, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
305 F. Supp. 1288, 1969 U.S. Dist. LEXIS 13057, 1969 Trade Cas. (CCH) 72,859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-shubert-nysd-1969.