Legal Document

342 U.S. 19 72 Supreme Court Reporter 14 96 L.Ed. SUTPHEN ESTATES, Inc.v.UNITED STATES et al. Number 25. Argued Oct. 11, 1951. Decided Nov. 5, Rehearing Denied Jan. 2, 1952. See 907, 289. Mr. or Haw. Hawai‘i Reports KFH45 A2 G. Pickering, New York City, for appellant. Charles Weston, Washington, D.C., the United States. Joseph M. Proskauer, appellees, Warner Bros. Pictures, Inc., Justice DOUGLAS delivered opinion of Court. 1 Rule 24(a) Federal Rules Civil Procedure, 28 U.S.C.A., provides in part as follows: '(a) Intervention Right. Upon timely application anyone shall be permitted to intervene an action: * (2) when representation applicant's interest by existing parties is may inadequate and applicant bound a judgment action; (3) so situated adversely affected distribution other disposition property which custody subject control court officer thereof.' 2 Appellant claims intervention right Sherman Act1 proceedings involving reorganization certain producers distributors motion picture films whose activities had been found violate Act. States versus Paramount 334 131, 68 915, 92 1260. If appellant right, order denying appealable. Brotherhood Railroad Trainmen Baltimore & O.R. Co., 331 519, 524, 67 1387, 1389, 91 1646; 32 Statutes-at-Large 823, amended, 15 Code KF62 (Supp. II) § 29, Annotated KF65 U5 29. It was resolve that question we postponed our jurisdiction appeal hearing on merits. 3 The present controversy stems from pursuant decree Act proceedings. Under this provision made divorcement Warner's theatre business its production business. various steps are not material here. sufficient note according plan stockholders will vote dissolution Warner. Two new companies formed, one receive assets, assets. Each distribute capital stock pro rata stockholders. 4 guarantor lease properties subsidiary lease, executed 1928 modified 1948, term 98 years. submitted provides, read it construed counsel appellees oral argument, liabilities class guaranty falls assumed company. seeks protect guaranty. 5 There under 24[a][2] 'when action.' However, privy Warner; rights only do derive Warner, they indeed adverse case, like Credits Commutation company States, 177 311, 20 636, 44 782, therefore res judicata sought protected through intervention. 6 Nor entitled reason (3). true case 'a *' within meaning 24(a)(3). For authority sanctions directs reorganization. supra, at pages 170 seq., page 935. argues 'adversely affected' property. points out dissolved his divided among two companies, assumes guarantor's lease. judicially ascertained equivalent And would each companies. 7 We think, however, record has shown have No showing attempted lacks financial strength assume responsibilities contingent liability imminent onerous make substantially less valuable than Warner's. all know, business, freed hazards even more pass here fairness Cf. Continental Insurance 259 156, 42 540, 66 871. hold maintained burden 24(a)(3) right. 8 Permissive governed 24(b). But said enough show claim injury too speculative unknown factors conclude there abuse discretion leave intervene. ample prevent administration being burdened with collateral issue can properly adjudicated elsewhere. dismissed. 9 Appeal 10 JACKSON, CLARK, MINTON took no consideration decision case. 11 BLACK, dissenting. 12 Brothers, theater Sutphen Estates. split up into expressly guarantee Sutphen. Sutphen's longer guaranted combined assets illegal corporation ordered dissolved. Perhaps inevitable impaired some extent, but should insure suffers fair share whatever losses result enforcement antitrust laws. 13 N Dec. Immigration Nationality Decisions am impairment best determined District Furthermore, cannot assent permits remain open adjudication elsewhere indefinite time future. Dissolution ordered, completely consummated if leaves doubt whether both jointly obligated 173—174, 545, 546, Surely, power violations, newly created permanently totally disinterested other's future activities, way united past obligations. §§ 1—7, note.

Classification Label: 8