Opinion ID: 400121
Heading Depth: 2
Heading Rank: 3

Heading: The Jonesboro Twin Theatre

Text: 16 Appellant Southway Theatres, Inc. was formed in 1972 for the purpose of constructing and operating a shopping center which is located in the southern Atlanta metropolitan region and which houses the Jonesboro Twin Theatres. The shopping center is situated some 15 miles from the city limits and lies close to the residential areas of Forest Park, Morrow, Jonesboro, and Riverdale in Clayton County, Georgia. When the Jonesboro Twin first opened on September 14, 1973, no other theatres were located in its direct vicinity. The nearest theatres were the South Expressway drive-in and the Old Dixie Theatre, in Forest Park. 17 Southway's President, James T. Patterson, operated the Jonesboro Twin. Mr. Patterson assumed this responsibility with virtually no previous experience in the motion picture industry, although he had consulted with several other exhibitors in Georgia. He initially engaged William Andrew of the Southern Independent Theatres booking agency to obtain films for the Jonesboro Twin. In November 1973 Mr. Patterson began to handle bookings on his own. 18 Southway opened with hopes of obtaining first run films. Patterson recognized that theatres located near, but not in, Atlanta usually could not obtain first run or intermediate run films. Atlanta's suburban theatres ordinarily waited their turn to exhibit films on wide break only, with earlier runs limited to the central theatres. Patterson hoped, however, that Southway would be deemed by the distributors to lie completely outside of the Atlanta region and therefore incapable of attracting customers from Atlanta. He hoped Southway would thus be allowed to show first run films day and date (that is, concurrently) with Atlanta. The distributors had afforded this status to theatres in Marietta, Georgia, a suburb lying to the north. When Mr. Patterson took over the responsibility for buying films, he expressed his desire for access to first run films to some of the distributors. 19 During the period encompassed by this suit, Southway encountered little luck obtaining anything but wide break films. Most of the distributors-Buena Vista, United Artists, Warner Brothers, Fox, and Paramount-never licensed a single first run film to Southway. Universal and Columbia each licensed one film on first restricted run. Some of the distributor defendants licensed a small number of intermediate run films to Southway. 20 For a portion of the relevant period the distributor defendants refused Southway even the opportunity to bid for first and second run films. United Artists never allowed Southway to bid for films that were playing in Atlanta. The remaining distributors began accepting bids between the summer of 1974 and fall of 1976. 4 21 While it is clear that the decisions of the distributor defendants to allow Southway to bid for first run films came as a result of requests from Mr. Patterson, the parties have disagreed as to the nature of the communications and as to the genuineness of Patterson's interest in competing for films against the close-in Atlanta theatres. In November 1973, when Mr. Patterson took over William Andrew's booking responsibilities, he wrote to all of the distributor defendants asking that they put Southway on their mailing lists. In 1974 and early 1975, Mr. Patterson spoke at least ten times to representatives from each distributor, requesting that Southway be offered films on as early availability as possible. 22 The parties have disputed the correct characterization of those requests. The defendants claim that Patterson never really wanted to bid for films. Southway believes that his interest in bidding was genuine and apparent; although bidding was not Southway's first choice-it would have preferred the opportunity to negotiate for films independently of the Atlanta theatres, as the Marietta exhibitors did-it was nevertheless entirely willing to follow the alternate route and join in competitive bidding as part of the Atlanta area. Because Patterson's oral communications were largely unavailing, he sent out a second letter to all of the distributors (except for Fox, which had allowed Southway to bid since 1974) on March 27, 1975. It was soon after this date that the remaining distributors began to accept bids from Southway. Southway apparently believes that the filing of the lawsuit, on August 20, 1975, also explains the decisions of some distributors to include it in the bidding process. 23 The parties have vigorously disputed the Jonesboro Twin's attractiveness to the public. The defendants argue that it is small, and indeed its overall capacity stands somewhat below the average for Atlanta theatres. Southway responds that it is more than sufficient in every respect; that it is clean, solidly constructed, and well located. Southway also lays claim to some evidence that the Jonesboro Twin is superior to its nearby circuit competitor, the Arrowhead. 24 When Southway planned, built, and opened the Jonesboro Twin, it faced little competition from neighboring theatres. The South Expressway drive-in and the old Dixie Theatre were also independent theatres and had not been exhibiting first run films that Southway coveted. In December 1974, however, defendant Weis Theatres opened its Arrowhead Theatre in a shopping center 21/2 miles north of the Jonesboro Twin. From the start, the Arrowhead succeeded in licensing major first run films. During the relevant period, it attracted such films as Godfather Part II (Warner), Jaws (Universal), and King Kong (Paramount). By comparison, the Jonesboro Twin was licensed only two first run films, Swashbuckler and Baby Blue Marine. Southway characterizes these films as stiffs. No other independent theatre in Clayton County obtained a single film on first restricted run during the relevant period.