United Artists Corp. v. Ancore Amusement Corp.
| Decision Date | 10 January 1950 |
| Citation | 91 F. Supp. 132 |
| Parties | UNITED ARTISTS CORPORATION v. ANCORE AMUSEMENT CORPORATION et al. |
| Court | U.S. District Court — Southern District of New York |
O'Brien, Driscoll, Raftery & Lawler, New York City, Attorneys for Plaintiff; (George A. Raftery and Edward J. Toner, Jr., New York City, of Counsel).
Weisman, Celler, Quinn, Allan & Spett, New York City, Attorneys for Defendants; (Milton C. Weisman, Abraham Mopper, and Harry Snetkin, all of New York City, of Counsel).
Plaintiff instituted in three different courts in the State of New York two actions against each of the above-named defendants to recover sums of money alleged to be due plaintiff as film rentals under contracts providing for the exhibition by defendants of certain motion pictures distributed by plaintiff. By consent, all four actions were consolidated on November 17, 1949, into the one action which had originally been brought in the New York Supreme Court. Answers in all four actions were served on October 31, 1949. On November 18, 1949, the defendants removed the consolidated action by filing their joint petition therefor in this court in accordance with § 1446(a) of revised Title 28 United States Code Annotated.
Section 244 of the New York Civil Practice Act provides that, within twenty days after a pleading is served, it may be once amended as of course. To their petition for removal defendants annexed a copy of a proposed amended answer which, they stated, would be served on or before November 21, 1949, the date when their right to serve an amended answer in the consolidated action would expire. The amended answer was served after the petition was filed. It contains, for the first time, two additional separate defenses, one of which is also denominated a counterclaim, in which it is alleged that the contracts sued upon are illegal and void in that plaintiff and other motion picture distributors are engaging in an unlawful monopoly in violation of the Sherman and Clayton Acts, 15 U.S.C.A. §§ 1-7, 15 note, 12 et seq., as held by the Supreme Court in United States v. Paramount Pictures, 334 U.S. 131, 68 S.Ct. 915, 92 L.Ed. 1260, to defendants' damage, including treble damages. Only federal courts have jurisdiction over actions brought under either the Sherman or Clayton Acts.
Section 1446(b) of revised Title 28, as amended on May 24, 1949, provides:
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