Legal Document

369 U.S. 469 82 Supreme Court Reporter 894 8 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 44 DAIRY QUEEN, INC., Petitioner,v.Hon. Harold K. WOOD, Judge, et al. Number 244. Argued Feb. 19 and 20, 1962. Decided April 30, Michael or Haw. Hawai‘i KFH45 A2 Egnal, Philadelphia, Pa., for petitioner. Owen Judge Ooms, Chicago, Ill., respondents. Mr. Justice BLACK delivered the opinion of Court. 1 The District Eastern Pennsylvania granted a motion to strike petitioner's demand trial by jury in an action now pending before it on alternative grounds that either was 'purely equitable' or, if not purely equitable, whatever legal issues were raised 'incidental' equitable issues, and, case, no right existed.1 petitioner then sought mandamus Appeals Third Circuit compel district judge vacate this order. When court denied request without opinion, we certiorari because seemed inconsistent with protections already clearly recognized important constitutional our previous decisions.2 2 At outset, may dispose one upon which acted striking jury—that based view be lost as where those are characterized issues—for decisions make plain such rule applied federal courts. In Scott versus Neely, decided 1891, held equity could even take jurisdiction suit 'in claim properly cognizable only at law is united same pleadings relief.'3 That holding, both historical separation between duty insure 'that preserved intact,'4 created considerable inconvenience necessitated two separate trials case whenever contained claims. Consequently, when procedure courts modernized adoption Federal Rules Civil Procedure 1938, 28 U.S.C.A., deemed advisable abandon part holding Neely rested permit joinder claims single action. Thus Rule 18(a) provides plaintiff 'may join independent alternate many he have against opposing party.' And 18(b) provides: 'Whenever heretofore after another has been prosecuted conclusion, joined action; but shall grant relief accordance relative substantive rights parties. particular, state money set aside conveyance fraudulent him, first having obtained judgment establishing money.' 3 did not, however, purport change basic must preserved.5 Quite contrary, 38(a) expressly reaffirms principle, declaring: 'The declared Seventh Amendment Constitution given statute parties inviolate.' Nonetheless, Rules, attempts made indirectly undercut cases involving filed decide first. result followed any issue common finally determined party seeking deprived these commonissues. This came us Beacon Theatres, Incorporated Westover,6 which, like one, arose from denial petition his order jury. 4 Our decision reversing emphasizes responsibility Courts necessary protect also limits open determination here defining protection entitled Theatres presented 'only under most imperative circumstances, circumstances flexible procedures cannot anticipate, can through prior claims.'7 course, applies whether chooses characterize not.8 there contention 'imperative circumstances,' requires timely demanded submitted There being question timeliness correctness involved here, sole contains issues. 5 proceeding arises out controversy respondent owners trademark 'DAIRY QUEEN' regard written licensing contract them December 1949, agreed pay some $150,000 exclusive use certain portions Pennsylvania.9 terms provided small initial payment remaining payments rate 50% all amounts received sales franchises deal would completed within specified period time, further minimum annual regardless receipts. August 1960, respondents wrote letter they claimed had committed 'a material breach contract' defaulting contract's provisions notified termination cancellation unless default remedied immediately.10 continued despite notice termination, brought their occurred. 6 complaint alleged, among other things, 'ceased paying * required contract;' 'under said (was) excess $60,000.000;' constituted 'material breach' contract; its failure alleged guilty 'cured' immediate cured contesting continuing conduct business authorized dealer; continue infringement respondents' trademark; financial condition unstable; foregoing allegations, threatened irreparable injury adequate remedy law. prayed temporary permanent relief, including: (1) injunctions restrain future dealing franchise (2) accounting determine exact amount owing amount; (3) injunction prevent collecting 'Dairy Queen' stores territory. 7 answer complaint, number defenses, contract, apparently chiefly allegation January 1955 entered into oral agreement modifying original removing provision requiring receipts thus leaving obligation turning over receipts; laches estoppel arising assert promptly, permitting expend large development violations antitrust laws connection dealings trademark. Petitioner indorsed 38(b) Procedure.11 Petitioner's contention, forth reiterated briefs Court, insofar requests presents unquestionably legal. We agree contention. natural construction seem recover owed date purported plus damages since date. Alternatively, construed full theories—that is, debt due entire including contract.12 Or might possibly recovery completely solely attempted theory ignored, consequence, charge breached, used defense termination.13 find unnecessary resolve ambiguity think wholly nature however construed. As allegedly difficult conceive more traditionally character.14 infringement, less subject cognizance law.15 9 primarily fact cast 'accounting,' rather than 'debt' 'damages.' But depend choice words pleadings. prerequisite maintain accounting, remedies, pointed absence law.16 cause law, able show 'accounts parties' 'complicated nature' satisfactorily unravel them.17 powers 53(b) appoint masters assist exceptional too complicated adequately handle alone,18 burden showing considerably increased will indeed rare met.19 may, certainly case. A jury, proper instructions court, readily recovery, any, settled combination two. inadequate merely measure necessitate look records. 10 Nor rendered defenses interposed primary contract—that modified subsequent agreement—presents nothing do novation, suggested, reformation, suggested here. Such goes just what, collect parties, breached extent what is. 11 conclude therefore erred refusing factual related contract. Since based, final claims.20 should corrected error granting mandamus. reversed remanded proceedings consistent opinion. 12 Reversed remanded. 13 STEWART concurs result. 14 FRANKFURTER took 15 WHITE consideration 16 HARLAN, whom DOUGLAS joins, concurring. 17 & N Dec. Immigration Nationality Decisions am disposed accept view, strongly pressed bar, seeks damages. Even though leaves formally asking relief,* does end inquiry. 'accounting' itself dispositive issue. To render aspect truly 'equitable' appear unraveled equity. Kirby Lake Shore Michigan Southern R. Co., 120 130, 134, 430, 432, 30 L.Ed. 569. See Moore, Practice (1951), 198—202. It manifest face instance variety. calculate flowing often copyright patent cases. Cf., e.g., Hartell Tilghman, 99 547, 555, 25 357; Arnstein Porter, Cir., 154 Reporter, 2nd 464; Bruckman Hollzer, 152 730. 18 Consequently prayers relief. principles long established, 140 106, 110, 712, 35 358, 'legal' complaint. On basis concur McCullough Dairy Queen, Inc., 194 F.Supp. 686. 368 874, 121, 76. 117, 716, 358. Cates Allen, 149 451, 977, 37 804, expressed explicitly reaffirmed. Id., 714. 'Subdivision (b) (of 18) disturb doctrine (Scott Allen) bottomed principles. true abolish distinction equity, claims, safeguard issues.' Practice, 1831—1832. 359 500, 79 948, 988. 510—511, 957. 'It immaterial bar stronger present Theatres. difference outweighed so taken whole equitable. creates control. teaching construe it.' Thermo-Stitch, Chemi-Cord Processing Corp., 294 486, 491. groups addition who reason procedural posture Atlantic KF105 F3 McCullough, partnership doing McCulough's use. baron Myers, Rydeen, M. E. Montgomery, S. Dale licensees assignment. latter group responsible defaulted obligations themselves royalties assignment arrangement. portion raises relevant differ owners, discussion restricted 'respondents' refer group. text sent follows: 'This advise you your McCullough's Queen State Pennsylvania, called assignors, constitutes satisfied owing, hereby cancelled. 'Copies assignors.' 'Any triable serving therefor writing time commencement later days service last pleading directed seems passing demand. F.Supp., 687—688. possible accepted correct concurring actually least likely all. For irrespective else sought, seek $60,000 Certainly, doubt case: 'Incidental demands plaintiffs aforesaid contract.' 687. 'In complainants respect different only, defendants courts.' 714, Thompson Railroad Companies, Wall. 765. U.S., 506—510, 954—956. Wall, 137, 765; limited inroad "should seldom made, unusual exist." La Buy Howes Leather 352 249, 258, 77 309, 314, 290. re Watkins, 271 771. changes remove inadequacy sharply diminish scope traditional remedies making 'Thus, justification equity's deciding once obtains jurisdiction, dismiss subsequently becomes available, re-evaluated light liberal allow causes resolved civil Similarly need for, therefore, availability Bills Peace, Quia Timet Injunction reconsidered existence Declaratory Judgment Act well Rules.' 509, 956. 20 interfere Court's power adjudication merits. (see 290 871) Except damage dispute

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