General Talking Pictures Corp. v. Electrical Research Products, Inc.

• Decision Date: 15 June 1931
• Docket Number: 516.
• Citation: 159 S.E. 19,201 N.C. 143
• Parties: GENERAL TALKING PICTURES CORPORATION v. ELECTRICAL RESEARCH PRODUCTS, Inc., et al.
• Court: North Carolina Supreme Court

159 S.E. 19

201 N.C. 143

GENERAL TALKING PICTURES CORPORATION v. ELECTRICAL RESEARCH PRODUCTS, Inc., et al.

No. 516.

Supreme Court of North Carolina

June 15, 1931

Appeal from Superior Court, Iredell County; Clement, Judge.

Suit by the General Talking Pictures Corporation against the Electrical Research Products, Inc., and another. Judgment for defendants, and plaintiff appeals.

Affirmed.

In suit to restrain breach of contract for installation of talking picture equipment, pleadings and affidavit held to disclose no binding contract.

The plaintiff is a corporation engaged in the business of making contracts for the installation of talking picture equipment in moving picture theatres. The defendant is engaged in like business, and is a competitor of plaintiff. The defendant Joseph E. Caudell is operating a talking picture theatre in Statesville, N. C., in which there has been installed talking picture equipment supplied by plaintiff. It is alleged by plaintiff that the said Caudell, thereafter desiring to open and operate a second talking picture theatre in Statesville made a contract with plaintiff to install a "Hollywood Junior Phonofilm" in his "Broadway Theatre." A copy of the contract is set forth. That plaintiff is ready willing, and able to perform its part of the terms of the contract, but the said Caudell has failed to carry out his part of the contract, although plaintiff has demanded that he comply with same.

That plaintiff is advised, believes, and so alleges that the defendants to this action have wrongfully and unlawfully conspired to break the written contract that was entered into between the plaintiff and defendant Joseph E. Caudell on the 25th day of September, 1930, and has, in divers and sundry ways, induced the said Joseph E. Caudell, its codefendant, to breach its contract with this plaintiff and to enter into a contract with the said Electrical Research Products, Inc. for talking picture equipment for his said Broadway Theatre in Statesville, N.C. That plaintiff is advised and believes and so alleges that the said Electrical Research Products Inc., has not only unlawfully and wrongfully induced the said Joseph E. Caudell to break its contract with this plaintiff, but has further induced the said Joseph E. Caudell to enter into a contract with it, his codefendant, for the installation of the talking picture equipment of said Electrical Research Products, Inc., in the said Broadway Theatre, and that the said Caudell is now preparing to have the equipment of its codefendant so installed in said Broadway Theatre, and, if it has already been installed, to operate said Broadway Theatre with the talking picture equipment of the said Electrical Research Products, Inc., unless restrained by this court by the proper order made in this cause. That plaintiff is advised, believes, and so alleges that the said Joseph E. Caudell is insolvent and cannot be made to respond in damages that will be sustained by this plaintiff if he is allowed to breach his contract with this plaintiff. That it is wellnigh impossible for this plaintiff to estimate the damages it will suffer if the defendants are permitted to break the contract now held by this plaintiff with the defendant Joseph E. Caudell, but it verily believes it has and will be damaged in a sum not less than $25,000.

Wherefore, this plaintiff prays the court: (1) That the defendant Joseph E. Caudell be restrained from breaching its contract with this plaintiff, and that it be restrained from installing the talking picture equipment of the Electrical Research Products, Inc., or, if now installed, that he be restrained from operating the said Broadway Theatre with any equipment other than that of this plaintiff. (2) That the said Electrical Research Products, Inc., be restrained from installing any of its equipment in the Broadway Theatre to be operated by its codefendant, and, if already installed, that it be required to remove the same from said theatre. (3) That it recover of the defendants the sum of $25,000 as damages.

The defendants deny the material allegations of the complaint. The defendants also deny that any contract as alleged by plaintiff was ever entered into between plaintiff and Caudell. The said Caudell, in further answer to plaintiff's complaint, says: "That at the time the said preliminary application was signed by this defendant, he issued his check for the initial payment, but that before the said check was presented to the bank upon which it was drawn this defendant stopped the payment thereof and notified the bank, but that the bank through inadvertence paid the said check, and that the said bank offered afterwards to reimburse this defendant for its failure to stop the payment of said check, but this defendant being indebted to the plaintiff on account of other matters gave notice to the plaintiff that the said check had been paid by the said bank through inadvertence and demanded of the plaintiff that credit for...