Warner Bros. Theatres, Inc. v. Cooper

91 F. Supp. 277, 1950 U.S. Dist. LEXIS 2731
CourtDistrict Court, W.D. Oklahoma
DecidedJune 16, 1950
DocketCiv. No. 2924
StatusPublished

This text of 91 F. Supp. 277 (Warner Bros. Theatres, Inc. v. Cooper) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warner Bros. Theatres, Inc. v. Cooper, 91 F. Supp. 277, 1950 U.S. Dist. LEXIS 2731 (W.D. Okla. 1950).

Opinion

VAUGHT, Chief Judge.

This cause was filed in the District Court of Oklahoma County, Oklahoma, and by proper proceedings removed to this court. The plaintiff seeks to impress a certain lease dated November 19, 1945, from J. N. Harber and Mary Harber to the Cooper Foundation covering the Liberty Theatre, in Oklahoma City, Oklahoma, and the leasehold estate created by the lease, with a constructive trust for the benefit of the plaintiff, and a further judgment that any claims óf J. H. Cooper, the Cooper Foundation and Standard Theatres Corporation be held in trust, ordering and directing said parties to transfer said lease to the plaintiff as its property, and for injunctive relief, costs and such other relief to which it may be entitled.

The controversy grows out of the following transactions' pertaining to the Liberty Theatre, in Oklahoma City, Oklahoma. On May 1, 1915, F. B. Zieglar and Nettie R. Zieglar, the owners of the property, executed a lease thereon to J. G. Street, H. W. McCall and W. M.- Robertson. The interest of these lessees subsequently became the property of a corporation known as Mid-West' Enterprise Company (hereinafter referred to as “Mid-West.”) This lease contained the following provisions:

[278]*278“To have and to hold, from the 1st day of July, 1915, to midnight of the 30th day of June, 1925, with an option to continue said lease for additional periods of five (5) years each, as hereinafter provided, not exceeding or running beyond midnight of June 30, 1945.”
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“XXI. At the expiration of this lease, by limitation of time or failure to pay rent, or to perform the conditions hereof by the lessees agreed to be performed, the same shall terminate at once, * * *.” (Pltf. Ex. 1.)

On June 24, 1930, Mid-West entered into a sublease agreement with Warner Bros. Theatres, Inc., (hereinafter referred to as “Warner”), the plaintiff herein. The pertinent portions of that agreement are as follows:

“Article I. That the Lessor hereby subleases and sublets, and the Lessee hereby takes, subleases and hires from the Lessor the above described real estate, * * * including the Liberty Theatre Building thereon, subject to all of the terms, covenants and provisions of the present and existing lease under which the Lessor is now occupying and using said premises for theatre purposes, for a term commencing at midnight on June 28, 1930 and ending at midnight on June 30, 1945, provided that if said major lease shall be terminated earlier by reason of any act of the Lessee herein, this sublease shall terminate coincident with the sooner termination of said major lease.”
“Article XX. That notwithstanding any of the provisions herein contained this sublease shall in all respects be subject to all terms and provisions of the original lease of May 1, 1915, * * *.”
“Article XXI. * * * The Lessor hereunder further covenants, represents and warrants that it will exercise its option to renew said major lease at the end of each five-year term thereof so as to have and hold the same until June 30, 1945, * * *.”

The ownership of the fee in the property changed and on June 8, 1940 was owned by J. N. Harber, who on that date entered into an agreement with Mid-West, extending the lease for a period of ten years. The agreement contains the following provisions :

“Whereas, according to the terms of said original lease the second party, lessee herein, has the right and option to renew said lease for an additional period of five years from June 30, 1940, and to and until June 30, 1945; and

“Whereas, said Mid-West Enterprise Company, lessee, has exercised said option in writing, by giving the notice provided for in said lease, and in addition thereto desires to retain said lease for an additional five (5) years, and to-wit, from July 1, 1945, to and until June 30, 1950, and has-requested that said lease be extended and continued for an additional five (5) years beyond the expiration of the present lease so that the lease as thus extended by the exercise of said option and the granting of the additional time, will expire on June 30,. 1950;
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“First. That in consideration of the payment of the cash rents hereinafter set out, and the performance of each and every condition of the original lease of May 1, 1915, the said lease is hereby extended from the said 1st day of July, 1940y to and until the 30th day of June, 1950, at midnight of said day, * * *.
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“Said original lease shall remain in full force and effect and subject to all of the terms and conditions and agreements therein set. out, and modified only by this agreement, to-wit, as to date of expiration and'the payment of rentals as herein set out.” (Pltf. Ex. 2.)

On October 16, 1940, Mid-West entered into an agreement to extend the sublease held by Warner to June 30, 1950. That contract contained the following:

“First: — The term of the above mentioned sublease is hereby extended for an additional period of five years commencing at midnight on June 30, 1945 and ending at midnight on June 30, 1950, * * *.
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“Fifth: — That said sublease shall remain in full ' force and effect except only as [279]*279specifically modified by the terms of this agreement.” (Pltf. Ex. 4.)

On September 1, 1933, Warner, Criterion Theatre Corporation (hereinafter referred to as “Criterion”), Regal Theatres, Inc. (hereinafter referred to as “Regal”), and J. H. Cooper entered into an agreement by the terms of which the theaters of the parties should be pooled and a corporation organized to manage, control and operate same. The pertinent portions of the agreement are as follows:

“Whereas, Warner leases, pursuant to six (6) certain leases (including in the terms ‘lease’ or ‘leases’ wherever used in this Agreement, a sub-lease or sub-leases) dated June 24, 1930, between Mid-West Enterprise Company and Warner, the following theatres, located in Oklahoma City, in the State of Oklahoma, and the respective terms of said Leases, none of which contain any option to extend or renew the original term thereof, expire on the dates set forth below:
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Liberty June 30, 1945
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“Whereas, the parties desire that a new corporation be organized to manage, control and operate the above theatres, and that Mr. Cooper be elected President and employed as General Manager of the new corporation, and as such General Manager, have general charge and management of the affairs of the new corporation, upon the terms and conditions hereinafter set forth;
* * * * * *
“1. The parties will promptly after the execution and delivery of this Agreement ■cause a corporation to be organized under the laws of the State of Delaware, with the name ‘Standard Theatres Corporation’, or such other name as may be determined, such new corporation being hereinafter referred to as the New Corporation. * * *
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“3.

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Bluebook (online)
91 F. Supp. 277, 1950 U.S. Dist. LEXIS 2731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-bros-theatres-inc-v-cooper-okwd-1950.