PICTURE SUPPLIES LTD.

Auckland Star, Volume L, Issue 202, 26 August 1919, Page 5

PICTURE SUPPLIES LTD.

. ! SUPREME COURT FINDING. | AGREEMENT STILL BINDING. j A matter of interest to proprietors ol picture theatres wa* decided :it the Supreme Court this morning, when judg- | ment was delivered by Ins Honor Mr. | .hi-ti.c Chapman in tl>e case between' j Arthur Krncut Coo, plaintiff, and the i N'eiv Zealand Picture Supplies. Ltd., de- ! fondants. On August 30, 1018, tilt' Ciiiety '1 heiitre 1-td. leased its tlieatre in Queen Street to Artlmr C'oe for a term of live ! vvur*. Thorn was no novation effeetinp ;i contract between Coc and the New I Zealand Picture Supplies Ltd., but that 'ronij>aiiv continued to act under the] I agreement as it did before the lease to ; j ( 00. A dispute had arisen between Coe i and the New Zealand Picture Rupplieel : 1.ti1., and iiis C'oe had indemnified the f'aioty Theatre Ltd. it wiu important lor | Ic-'oo to ascertain what his rights—that I v (is to say thu rights and liabilities of ' the ("iaioty Theatre Ltd. —were under I the agreement. If it woe still in force! I the Gaiety Theatre Ltd. was exposed to! in liability in respect of aliened breaches j iof tin- agreement, which .became the lia-1 I hility of Coc. The latter, therefore, raised! the- "question an to whether the original j i agreement was now binding on thetJaicty 'Theatre Ltd. It was assumed that foe could raise this question by means of an originating summons in which both: i parties to the agreement were cited. The | clause of the agreement Mi) on which too relied was as follows: "The terms of 1 this agreement shall be !ive years from the date n> the opening of the above mentioned theatre, and provided the said (iaiPty Theatre Ltd. shall no long continue a-, theatre proprietors of the above mention.'.! premi»cw. lint if at any time Idurinp tbp term of this ap-eemont the • >aid premises are no longer u.-ed as a picture theatre then the whole of the j term of this agreement shall lapse chir- ' ins; ,-iirl, period, and all rijrlits and lia- j J hilities of the parties hereunder .-hall ; absolutely cease and determine." The ; obligation of the Now Zealand Picture; J Supplier; Ltd. was to assume Uio direction; and management of the theatre, supply films, etc., and to use its best endeavours Ito ensure the success of the Gaiety Theatre Ltd. The obligation of the (iaicty Theatre Ltd. was to pay a stated rent to the New Zealand Picture Supplies Ltd. upon a scheme set out in clause S, "so lonj; as these presents continue in force." The question was how clause G I wns to be construed and whether upon the construction of that clause the agree-μ-eut continued in force? His Honor said the substantia! question was what was the meaning of the expression "continue as theatre proprietor' l of the aliovpnientioned premises"'? The plaintiff's I surest ion was thai, it did not mean j merely "continue as proprietors of the ] theatre," but that it must moan "conI tintie actively to run the theatre as proprietors." a condition which ended when j the theatre was leased. His Honor, after j giving reasons, said he read the clause as I a provision to take effect when the I tlieatre was no longer used as a picture I theatre, and that it contemplated a resumption of the relations betweeen the parties if, during the five years, the period of non-user Oβ n picture theatre came to an end. "The argument that the expression 'continue as theatre pro- : prictors of the above-mentioned premeans," his Honor said, "that the! theatre shall .be actively run by the I (raiety Theafcre Ltd. as such, carries with it the implication that the words f have quoted moan "no longer used as a picture theatre by the Gaiety Theatre Ltd.' 1 i find no Owarrant for so restricting the ! meaning of ,the passage, quoted: such a I reading might give the (Jaiety Theatre Ltd. opportunities of evading respond-; ! bility to the disadvantage of the New' i Zealand Picture. Supplies Ltd. I think', •that the preponderance of reasons is in favour of the reading 1 have already mentioned. The answer is that the ngrremeni is still binding on the Gaiety Theatre Ltd." j Dr. 11. D. Bam ford appeared for plaintill". Mr. 11. 11. fM'er for the New Zealand Picture Supplies Ltd., and Mr. Dickson for the Gaiety Theatre Ltd.