HIRE OF FILMS

New Zealand Herald, Volume LXXV, Issue 23117, 16 August 1938, Page 12

HIRE OF FILMS

DISTRIBUTORS' CLAIMS SHOWINGS NOT DISCLOSED ACTION AGAINST THEATRE JUDGMENT FOR £263 [BY TELEGRAPH—PRESS ASSOCIATION] WELLINGTON, Monday Actions flllegjng fraudulent concealment of unauthorised film exhibition dates, and failure to disclose the ad-, mission receipts on those dates, were brought by four film distributing companies in the Supreme Court to-day. against Premier Entertainments, Limited, Christchurch. Heavy damages were l not sought by the plaintiffs, it was explained, but merely adequate compensation based, perhaps, 011 the unauthorised receipts. The amount involved in all the claims, excluding those for additional rental, was just over £IOOO. The facts were not disputed by counsel for the defendant company, which is in liquidation.

The case was heard by the Chief Justice, Sir Michael Myers. ■ Plaintiffs were Metro-Goldwyn-Mnyer (N.Z.), Limited, Universal Pictures Proprietary, Limited, United Artists (Australasia), Proprietary, Limited, and Warner Brothers' First National Pictures Proprietary, Limited. Company's Share of Takings

The statement of claim of Metro-Goldwyn-Mayer detailed various films that had been rented by the defendant company for screening at the Premier Theatre, New ■ Brighton. "Tho Great Ziegfeld," it was stated, was rented for tho first four days of November, 1937, and "Pose Marie"' for four days in October of tho same year. The biro payable for "The Great Ziegfeld" was a sum equal to 50 per cent of the gross admission receipts, with a guarantee of £l2 10s, and for "Hose Marie" a sum equal to 40 per c.ent, £7 guaranteed. After the exhibition ol' the films, tho defendant company supplied to plaintiff statements that the pictures had been exhibited for the period fixed, and that tho gross admission receipts amounted to £l9 9s lor "'lhe Great Ziegfeld" und £4O 2s Gd for "Pose Marie." It had since been learned that the former picture had been exhibited on two additional dates, and the latter on one extra date. Claims Under Other Heads Five other films were mentioned, and similar allegations were made in respect of each. In the case of two other films it was alleged that they had been obtained from another Christchurch theatre without tho knowledgo or authority of tho plaintiff. It was alleged that the defendant company did not disclose tho fact that it exhibited the films, and did not pay any hire in respect of them. Claims were made under various heads for film hire, unauthorised use of films, fraud and breaches of contract. The claims made by the three other plaintiffs were similar, but smaller amounts were sought. Mr. E. P. Hay, for plaintiffs, said the company's liabilities were £4OOO, of which £2OOO was owing for equipment. Assets were £3-1 in the bank and some debts. The Chief Justice said that if he had to he did not mind going minutely into the question of damages, but he wondered if any purpose would be served by it. Lesson to Others

Mr. Hav said there were other proceedings pending. His Honor: And you want it as a lesson to others? Mr. Hay: That is the matter we are mainly concerned with. "This case is being defended by the liquidator, who had nothing whatever to do with the matters in dispute, and his only desire is to have the amounts of the companies' credits settled," said Mr. A. M. Cousins, who appeared for defendant. "He does not wisli to deprive plaintiffs of one penny to which they are entitled, hut he is in duty bound to other people interested in the liquidation." Mr. Cousins added that he could find 110 precedent for allowing damages in a case of this kind. _ "1 have 110 hesitation in saying the conduct of the company has been definitely shown to have lieen fraudulent, and ' systematically fraudulent," said His Honor, in giving oral judgment, after remarking that the liquidator had acted properly. "1 propose to give judgment which T am satisfied is just, and which I believe to be in accordance with tlio law." He awarded the following amounts to the film distributors: Motro-Gold-wvn-Mayer, £131; Universal, £47 j United Artists, £08; Warner Brothers, £27.