Source: https://www.leagle.com/decision/1956668145fsupp5231554.xml
Timestamp: 2017-08-22 14:46:03
Document Index: 412424962

Matched Legal Cases: ['art. 1382', '§ 8563', '§ 1', 'art. 1765', 'Art. 3534', 'Art. 3536', '§ 791', '§ 1', '§ 1', '§ 1', 'art, 119', 'art, 152']

DON GEORGE, INC. v. PARAM | 145 F.Supp. 523 (1956) | Leagle.com
145 F.Supp.
DON GEORGE, INC. v. PARAMOUNT PICTURES
DON GEORGE, Inc., et al. v. PARAMOUNT PICTURES, Inc., et al.
"* * * have during the period covered by this suit engaged in a conspiracy to restrain and monopolize, and have restrained and monopolized, interstate trade and commerce by the following means: "I. Price Fixing A. Vertical B. Horizontal "II. Discriminatory and Unreasonable Clearances and Runs "III. Pooling Agreements and Joint Ownership "IV. Formula Deals, Master Agreements, and Franchises "V. Block-Booking "VI. Discrimination on Contract Provisions "That this conspiracy was carried on on a national scale, and your plaintiffs were adversely affected and damaged in their business and property by this conspiracy * * *."
"Tort, possessory and damage actions. — The following actions are also prescribed by one year: "That for injurious words, whether verbal or written, and that for damages caused by animals, or resulting from offenses or quasi offenses."
"Commencement of running of period. —Tort and possessory actions. — The prescription mentioned in the preceding article runs: * * * * * "And in the other cases from that [day] on which the injurious words, disturbance or damage were sustained."
"The characteristic therefore of offence or quasi-offence is that the act, from which the obligation arises, is unlawful. The marked distinction then between a quasi-contract, and an offence or quasi-offence, is, that the act which gives rise to a quasi-contract is a lawful act and therefore is permitted; while the offence is unlawful, and therefore is forbidden. * * * * * "The distinction between damages ex delicto and ex contractu is, that the latter ensue from the breach of a special obligation, and the former from the violation of a general duty. Marcade says: "Remarquons bien que c'est de la violation d'un devoir proprement dit qu'il s'agit, d'un de ces devoirs generaux existant au profit de toutes personnes, et non pas de la violation du devoir existant specialement de telle personne determinee a telle autre determinee, et qui constitue l'obligation. Explic. du Code Napoleon art. 1382." [Translation: Let us note well that properly speaking the matter arises from the violation of a duty, one of those duties which exist generally for the benefit of everyone, and not from the violation of a duty existing specially on the part of one certain person in favor of another certain person and which constitutes an obligation.] (Emphasis supplied.)
"It is not claimed that plaintiffs were under any special contract to furnish the cars; but that the duty arose by virtue of defendant's general obligation to furnish cars under the Interstate Commerce Act (U.S. Comp.St. § 8563 et seq. [49 U.S.C.A. § 1 et seq.]) "Hence defendant contends that its alleged failure to furnish cars was a quasi offense, and its liability for damage, if any, extinguished by the prescription of one year. On the other hand, plaintiff contends that the damage arose from the breach of a quasi contract, and is extinguished only by the prescription of ten years. "I. "In Gordon v. Stanley, 108 La. 182, 32 So. 531, this court said: "`Whilst it is true * * * that mere error, negligence, or imprudence, resulting in injury to another, may be a quasi offense, it is also true that one may by contract bind oneself to compensate such injury; and, because the sufferer may have an action in damages as for a quasi offense, it does not follow that he should be denied the right to sue on his contract, if he has one, and prefers that remedy.' (Italics ours.) "Hence it has been held that where one has bound himself by special contract, i. e., has given bond, for the performance of duties otherwise imposed upon him by law, the party injured may sue upon the contract, instead of on the tort; and, if he does so, his action is not prescribed except by the prescription of 10 years. Gordon v. Stanley, 108 La. 182, 32 So. 531; Weintz v. Kramer, 44 La.Ann. 35, 10 So. 416; Fox v. Thibault, 33 La.Ann. 32; Brigham v. Bussey, 26 La.Ann. 677; Brown v. Gunning's Curatrix, 19 La. 462; Poydras v. Patin, 5 La. 327. "On the other hand, it has been held that where the action for damages was not upon the bond or contract, but merely upon the breach of duty as imposed by law, the damages arose ex delicto, and were extinguished by the prescription of one year. Knoop v. Blaffer, 39 La.Ann. 23; Caillouet v. Franklin, 32 La. Ann. 220; New Orleans v. Southern Bank, 31 La.Ann. 566; Harvey v. Walden, 23 La.Ann. 162; Taylor v. Graham, 15 La.Ann. 418; Edwards v. Turner, 6 Rob. 382; Balfour v. Browder, 6 Mart., N.S., 708; Fisk v. Browder, 6 Mart., N.S., 691; Semple v. Buhler, 6 Mart., N.S., 665. See authorities reviewed, in Gordon v. Stanley, supra. "II. "But it has never been held that the mere fact of the law imposing upon a person some duty towards the public operates to create a quasi contract between such person and each individual member of the public. And it is of the essence of a contractual obligation (contract or quasi contract) that it be due to some particular person as distinguished from the public in general. R.C.C. art. 1765. [Emphasis supplied.] * * * * * "In the case before us, the defendant's obligation to furnish cars was to the public in general, including plaintiff, and arose solely from the law; neither that law itself, nor any act of defendant, placed the latter under any special obligation to plaintiff. Our conclusion is that the plea of prescription of one year was properly sustained by the trial judge." (Emphasis supplied.)
"* * * I am of opinion that an action for unpaid minimum wages is one for wages, and that the damages by doubling them are incidental, as interest would be; so the Louisiana Civil Code, Art. 3534, which deals alone with `actions * * * of workmen * * * for the payment of their wages', would be applicable. But where, as here, the action is for `overtime compensation' and damages, due because a prohibitory statute has been violated, it is not one for wages, but for a quasi offense, or tort, under the Louisiana Civil Code, Art. 3536. Both articles happen to name one year as the limitation, but it may be otherwise in other states. * * * "The federal statute limiting suits for penalties, 28 U.S.C.A. § 791, does not apply, for private compensation rather than public punishment is the aim here, as in the case of triple damages under the Antitrust Act, 15 U.S.C.A. §§ 1-7, 15 note, Chattanooga Foundry & Pipe Works v. Atlanta, 203 U.S. 390, 27 S.Ct. 65, 51 L.Ed. 241, or the artificially fixed damages under the Copyright Act, 17 U.S.C.A. § 1 et seq., Brady v. Daly, 175 U.S. 148, 20 S.Ct. 62, 44 L.Ed. 109, or reparation under the Interstate Commerce Act, 49 U.S. C.A. § 1 et seq., Meeker v. Lehigh, 236 U.S. 412, 35 S.Ct. 328, 59 L. Ed. 644, Ann.Cas.1916B, 691. "We must look to the State statutes for the applicable limitation, that here applying being the prescription of actions for quasi offenses. I concur in the affirmance, but think it ought to be placed squarely on that statute." (Emphasis supplied.)
"In delving for the correct solution of this problem, it is necessary, at the outset, to determine whether the acts committed by the defendants, which form the basis of the cause of action, afforded to the plaintiff two remedies — one in tort and one in quasi contract. There can be no doubt that the acts complained of were offenses within the meaning of Article 2315 of the Civil Code and that the plaintiff had a cause of action to recover all of the damages he suffered as a result of these torts. In addition to this, the wrongful taking and detention of plaintiff's property by the defendants imposed upon them an implied contractual obligation to return it and the plaintiff had the right to proceed in an action ex contractu to compel them to do so. See Articles 2292, 2293, 2294 and 2301 of the Civil Cole; Morgan's Louisiana, etc., Ry. Co. v. Stewart, 119 La. 392, 44 So. 138; Ducros v. St. Bernard Cypress Co., 164 La. 787, 114 So. 654; Roney v. Peyton, La.App., 159 So. 469; Smith v. Phillips, 175 La. 198, 143 So. 47; Bryceland Lumber Co. v. Kerlin, 143 La. 342, 78 So. 482; Bell Lumber Co. v. Stout, 134 La. 987, 64 So. 881; Martin v. Texas Co., 150 La. 556, 90 So. 922; Liles v. Barnhart, 152 La. 419, 93 So. 490; Liles v. Producers Oil Co., 155 La. 385, 386, 99 So. 339, and Carter-Allen Jewelry Co. v. Overstreet, 165 La. 887, 116 So. 222. Article 2301 of the Civil Code provides: "`He who receives what is not due to him, whether he receives it through error or knowingly, obliges himself to restore it to him from whom he has unduly received it.'"
"35. "That during the year January 1, 1949, to January 1, 1950, your petitioner was able to obtain some first-run pictures from the defendants. Although the conspiracy had not yet run its course, and although the defendants did not fully comply with the Supreme Court's decision, the Davis Theater for the first time made a profit on film exhibition. The over-all profit made by the theater for this period was $21,329.15. "That as a direct and proximate cause of the operation [of] said unlawful agreements and conspiracy against the plaintiffs' business, plaintiffs have been subjected to net loss of earnings in excess of $124,000.00 during the period covered by this suit, and that the plaintiffs' total damage, being treble damages and provided in the `Sherman Act' are in excess of $372,000.00."
"* * * The obligation which the directors incurred in favor of the bank was a special one, due to it in particular, and to the stockholders. It was not a general duty due to every one. They were elected by the stockholders to administer the affairs of the bank and accepted the trust. "Causes of action for damages which arise from the breach of such a special duty due by the directors to the bank, and constituting an obligation, are not subject to the prescription of one year applicable to causes of action arising from offenses and quasi offenses provided by article 3536 of the Civil Code, which involve the breach of a general duty, but are subject to the prescription of 10 years provided by article 3544 of that Code, to which all personal actions are subject, except those to which a different prescription is made to apply. * * * "* * * still we should feel constrained to hold that a fiduciary relation existed between a shareholder of the bank and the members of the board of directors, and that the duty which was due the shareholders was a special duty, and not a general one due everybody. The breach of that duty would be a breach of trust; and therefore damages arising therefrom would be governed, not by the prescription of one year, but by that of 10 years." (Emphasis supplied.)
"A final judgment or decree rendered in any criminal prosecution or in any suit or proceeding in equity brought by or on behalf of the United States under the antitrust laws to the effect that a defendant has violated said laws shall be prima facie evidence against such defendant in any suit or proceeding brought by any other party against such defendant under said laws as to all matters respecting which said judgment or decree would be an estoppel as between the parties thereto: Provided, This section shall not apply to consent judgments or decrees entered before any testimony has been taken. "Whenever any suit or proceeding in equity or criminal prosecution is instituted by the United States to prevent, restrain, or punish violations of any of the antitrust laws, the running of the statute of limitations in respect of each and every private right of action arising under said laws and based in whole or in part on any matter complained of in said suit or proceeding shall be suspended during the pendency thereof." (Emphasis supplied.)