Paramount Pictures Corp. v. Holden (166 F. Supp. 684, 1958)

YANKWICH, Chief Judge.

On June 26, 1958, plaintiff, Paramount Pictures Corporation, a New York corporation, — to be referred to as Paramount, ■ — instituted an action for declaratory relief against William Holden, a well-known motion picture artist. **Our jurisdiction is based solely on diversity.

I

Brief Summary of the Pleadings

The original Complaint set forth a contract entered into on the 16th day of April, 1951, between Paramount and Holden which was to continue for a period sufficient to produce fourteen photo-plays, “the production year” being defined in terms which need not be gone into in detail. This will be referred to as “the old contract”. The Complaint then alleged that, pursuant to negotiations on October 12, 1956, plaintiff and defendant entered into a new oral agreement, — to be referred to hereinafter as “the new contract”, — to take the place of the old one, the terms of which it modified. A memorial of this agreement was to be executed later.

The Complaint then stated that on November 29, 1957, Paramount sent to Holden a notice designating January 2, 1958, as the starting date for the first of six photoplays in which the defendant was to render his services under the new contract.

On February 10, 1958, the Complaint continued, Holden advised them that he had never entered into the new contract, after allegedly the time for the commencement of his services under it had been extended at the request of Holden’s agent. Whereupon Paramount declared him in default and suspended him in accordance with the provisions of the new contract.

The notice and letter of suspension will be set forth in full further on in the discussion.

The prayer requested that the rights of the parties be declared and that the Court decree that the contract of October 22, 1956, is a valid and enforceable contract. It also prayed for general relief.

In the Amended Complaint filed on September 10, 1958, Mirisch Company, Inc., a corporation, and United Artists were joined as defendants. The first cause of action was, in substance, the same as the one contained in the original Complaint. A second cause of action set forth the fact that, since the commencement of the first action, Holden had given them notice that he intended to perform services in a photoplay to be produced by Mirisch Company and released by United Artists.

Alleging that the production of such picture (“The Horse Soldiers”) would result in irreparable damage to them, and that, as a result of an alleged conspiracy entered into by Holden, Mirisch and United Artists, the Complaint again asked that the contract of October 22, 1956, be declared valid and that Holden foe enjoined from performing any services for the other defendants and that they be enjoined from employing him or advertising the fact that he will make a motion picture for them.

Other allegations will be referred to in the discussion to follow.

Before us is an application for interlocutory injunction pending trial. Because of their bearing upon that issue, it is well to advert to Clauses Three (b) (1) and (2), of the “old contract”, which relate to the obligations of Holden to the Company with regard to the photoplays to be produced by Paramount or others, his right to produce within one of the yearly periods “outside photoplays” and the requirement as to notice to be given by him to the Company and their right to preempt his services.

In substance they provide: Paramount agrees to give written notice to Holden on the starting date on which and the place where he shall report for work on any of the photoplays at least thirty days prior to the date specified in the written notice. Holden agrees to report in accordance with the written notice on the starting date specified ready to render his services in conjunction with the photoplay. He also agrees to give written notice to the company specifying each date on which he has agreed to begin rendition of services in conjunction with .an outside photoplay. Written notice must be given immediately after the date is made known to him and shall specify the approximate length of time required in connection with the outside photoplay, .also the title of the photoplay, the name