# Petition — Exhibitors Poster Exchange, Inc. v. National Screen Service Corp.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1977
- **Citation:** 431 U.S. 938

## Text

ii

Su), - Court, U. S.
r~ FILED

| MICHAEL RODAK, JR., CLERK

mn

APR 11 1977,

3u the |
Supreme Court of the Anited States

OCTOBER TERM, 1976

NO. ~6°1392

EXHIBITORS POSTER EXCHANGE, INC.,
Petitioner

versus

NATIONAL SCREEN SERVICE CORPORATION,
COLUMBIA PICTURES CORP., METRO-GOLDWYN-
MAYER, INC., PARAMOUNT FILM DISTRIBUTING
CORP., TWENTIETH CENTURY-FOX FILM CORP.,

UNITED ARTISTS CORPORATION, UNIVERSAL FILM
EXCHANGES, INC., WARNER BROTHERS DISTRIBUT-
ING CORP.,

Respondents

PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS FOR THE

FIFTH CIRCUIT __

HENICAN, JAMES & CLEVELAND
C. ELLIS HENICAN, JR.

4440 One Shell Square

New Orleans, Louisiana 70139
Telephone: (504) 581-7575

Attorney for Petitioner

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Appendix D - Judgment of District Court... .
Appendix E - Petition for Rehearing........
Appendix F - Petition for Rehearing Denied ..

Appendix G - Statutes Involved............

PAGE NO.

ii

LIST OF AUTHORITIES

Lawlor v. National Screen Service Corp.,
eS, ds cb aes ee bene

Lawlor v. National Screen Service Corp.,

a SE GE SU oc ce ceesceetonsesess

PAGE NO.

2,5

PE i sh ERE ee ee

IN THE
SUPREME COURT OF THE UNITED STATES

October Term, 1976
No.

EXHIBITORS POSTER EXCHANGE, INC.,
Petitioner

versus

NATIONAL SCREEN SERVICE CORPORATION,
COLUMBIA PICTURES CORP., METRO-GOLDWYN-
MAYER, INC., PARAMOUNT FILM DISTRIBUTING
CORP., TWENTIETH CENTURY-FOX FILM CORP.,

UNITED ARTISTS CORPORATION, UNIVERSAL FILM
EXCHANGES, INC., WARNER BROTHERS DISTRIBUT-
ING CORP.,

Respondents

PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS FOR THE
FIFTH CIRCUIT

The Petitioner herein, Exhibitors Poster Exchange, Inc.,
respectfully prays that a writ of certiorari issue to review
the opinion and judgment of the United States Court of
Appeals for the Fifth Circuit entered in this proceeding on
December 10, 1976.

OPINIONS BELOW

The opinion of the Court of Appeals is reported at 543 F.
2d 1106, and is reproduced at Appendix A, infra. p. A-1.

2

The Judgment of the Court of Appeals is reproduced at
Appendix B, infra. p. A- 4. There was no writtten opinion
by the United States District Court for the Eastern District
of Louisiana. The trial Judge stated orally his reasons for
rendering judgment for respondents. A copy of the trans-
cript of such reasons is reproduced at Appendix C, infra.
p. A-7 . Acopy of the judgment of the Distirict Court is
reproduced at Appendix D, infra. p. A-10.

JURISDICTION

The judgment of the Court of Appeals was entered on
December 10, 1976, (Appendix B, infra. p. A- 4) and pe-
titioner’s timely application for a rehearing (Appendix E,
infra. p. A- 12) was denied on January 10, 1977, (Appendix
F, infra. p. A-15) This petition for certiorari iis being filed
less than 90 days from the date last abovementioned. The
jurisdiction of this Court is invoked under 28 U.S.C. Section
1254(1).

QUESTIONS PRESENTED

1. Whether a summary judgment entered without any
trial on findings of fact can have collateral estoppel
effect.

2. Whether the decision of the court below giving collat-
eral estoppel effect to a summary judgment, has the
effect of undermining enforcement of the federal
antitrust laws.

3. Whether the decision below is in conflict with the
opinion delivered by the court in the case of Lawlor

3

v. National Screen Service Corp., 349 U.S. 322
(1955).

STATUTES INVOLVED

Sections 1 and 2 of the Sherman Act, 26 Stat. 209
(15 U.S.C. 731 and 737 (15 U.S.C. Sections 15 and 16) are
reproduced at Appendix G, infra. p. A-16.

STATEMENT OF THE CASE

This is an action by Petitioner for treble damages and in-
junctive relief for alleged violation of sections 1 and 2 of
the Sherman Antitrust Act. The action was commenced in
the United States District Court for the Eastern District of
Louisiana under sections 4 and 16 of the Clayton Act, upon
which jurisdiction of the said District Court is based (See
Appendix G, infra. p. A-16).

The court below dismissed this action on the ground that
a summary judgment, dismissing a prior action between the
same parties, entered without any trial or findings of fact,
had the collateral estoppel effect of requiring entry of a
summary judgment of dismissal of this action.

ARGUMENT

In Lawlor v. National Screen Service Corp., 349 U.S.
322, 326, this Court, quoting with approval a statement
made by the Court of Appeals, said:

‘‘No question of collateral estoppel by the former
judgment is involved because the case was never
tried and there was not, therefore, such finding

4

of fact which will preclude the parties to that liti-
gation from questioning the finding thereafter.”

It is therefore correct to say that the judgment entered
by the court below in this case is in plain conflict with an
opinion written by this Court.

CONCLUSION

It is therefore submitted that this petition for issuance
of a writ of certiorari to review the opinion and judgment of
the United States Court of Appeals for the Fifth Circuit en-
tered in this case on December 10, 1976, should be granted.

Respectfully submitted,

FRANCIS T. ANDERSON
1007 Church Lane
Yeadon, Pennsylvania 19050

GLENN B. HESTER
Commerce Building
Augusta, Georgia 30902

C. ELLIS HENICAN, JR.

OF COUNSEL:

HENICAN, JAMES & CLEVELAND
4440 One Shell Square

New Orleans, Louisiana 70139
Telephone: 581-7575

5
CERTIFICATE OF SERVICE

I hereby certify that copies of the foregoing Petition for a
Writ of Certiorari have been served on Phillip A. Wittmann,
1000 Whitney Bank Building, New Orleans, Louisiana
70130; Walter S. Beck, 40 West 57th Street, New York,
New York 10019; and Gibbons Burke, One Shell Square
70139, on this 5th day of April, 1977.

C. ELLIS HENICAN, JR.

A-l
APPENDIX A

OPINION OF CIRCUIT COURT OF APPEALS - FIFTH
CIRCUIT

EXHIBITORS POSTER EXCHANGE, INC.,
Plaintiff-Appellant

v.

NATIONAL SCREEN SERVICE CORPORATION, et al.,
Defendants- Appellees.

No. 76-2463
Summary Calendar*

United States Court of Appeals, Fifth Circuit
Dec. 10, 1976

Plaintiff in antitrust action appealed from a summary
judgment rendered against it in the United States District
Court for the Eastern District of Louisiana, Alvin B. Rubin,
J. The Court of Appeals held that a previously rendered
summary judgment could have collateral estoppel effect;
and where that precise issue had been decided against
plaintiffs on a prior appeal in an earlier lawsuit, the defen-
dants’ motion for damages for frivolous appeal would be
granted and the district court required to determine the
amount of costs and damages.

Affirmed and remanded.

* Rule 18, 5 Cir.; see /sbe// Enterprises, Inc. v. Citizens Casualty Co. of

New York et al., 5 Cir. 1970, 431 F.2d 409, Part 1.

A-2
1. Judgment 653

Summary judgment could have collateral estoppel effect.

2. Courts 406.9(9)
Federal Civil Procedure 2747

Where only issue raised by appellants had been decided
against them on prior appeal in earlier lawsuit, appellees’
motion for damages for frivolous appeal would be granted
and case remanded to district court to determine amount of
costs and damages to }»2 paid appellees. 28 U.S.C.A. $1912;
Fed. Rules App. Proc. rule 38, 28 U.S.C.A.

3. Courts 403, 404(1)

Court of Appeals did not have jurisdiction to consider
appellees’ motion for injunction prohibiting appellant from
future litigation against them based on same cause of action
where there was no final or otherwise appealable decision
of district court; nor could it be considered application for
exercise of supervisory authority because relief sought was
not in aid of Court of Appeals’ jurisdiction. 28 U.S.C.A.
§§ 1291, 1292, 1651.

Appeal from the United States District Court for the
Eastern District of Louisiana.

Before COLEMAN, GOLDBERG and GEE, Circuit
Judges.

A-3
PER CURIAM.

[1] This appeal arises out of antitrust litigation of many
years’ duration. The history of this litigation is outlined in
The Poster Exchange, Inc. v. National Screen Service Corp-
oration, et al., 5 Cir., 1976, 542 F.2d 255 (No. 76-1870,
Nov. 11, 1976, slip opinion p. 6517). Once again the ap-
pellant, Exhibitors Poster Exchange, Inc., urges that a sum-
mary judgment cannot have collateral estoppel effect. The
same argument was urged to us and decided against this
same appellant in Exhibwors Poster Exchange, Inc., v.
National Screen Service Corporation, et al., 5 Cir., 1975,
517 F.2d 110, cert. denied, 423 U.S. 1054, 96 S.Ct. 784,
46 L.Ed. 2d 643 (1976).

We said in that opinion:

“It would be strange indeed if a summary judgment
court not have collateral estoppel effect. This would re-
duce the utility of this modern devide to zero.” 517 F.2d
at 115.

Despite our pronouncement, despite our denials of re-
hearings by panel and en banc, and despite the Supreme
Court’s declining certiorari in this matter, the appellant
nevertheless began yet another lawsuit in the district court
which, upon its termination by summary judgment in favor
of the yet-again appellees, confronts us with precisely the
same issue. In its brief the appellant states that it is re-
litigating the same issue with admitted forlorn hope that we
will overrule our previous decision.

[2] The appellees have filed in this Court a motion for .

A-4

damages for frivolous appeal under Rule 38, F.R.A.P. The
motion is well taken. Appellees have again been required to
file pleadings and brief, incur costs and attorneys’ fees to
protect their interests. These expenses were necessitated
only by frivolous litigation. We remand this case to the
district court to determine the amount of costs and damages
to be paid to the appellees, as provided by 28 U.S.C.$1912.

[3] Appellees have also filed a motion for an injunction
prohibiting the appellant from future litigation against them
based on the same cause of action. The motion is filed of
first instance in this Court. We are without jurisdiction to
consider this request since there is no final or otherwise
appealable decision of the district court. 28 U.S.C.§ $1291,
1292; Wooten v. Bomar, 6 Cir., 1959, 266 F.2d 27. Nor
can it be considered an application for the exercise of our
supervisory authority because the relief sought is not in aid
of our jurisdiction. 28 U.S.C. § 1651.

The judgment of the district court is affirmed and the
case is remanded for a determination of damages and costs.

A-5
APPENDIX B

UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

No. 76-2463
Summary Calendar

D.C. Docket No. CA 75-2503 ‘'C”’

EXHIBITORS POSTER EXCHANGE, INC.,
Plaintiff-Appellant

versus

NATIONAL SCREEN SERVICE CORPORATION,
ET AL.,
Defendants-Appeilees.

Appeal from the United States District Court for the
Eastern District of Louisiana

Before COLEMAN, GOLDBERG and GEE, Circuit Judges.
JUDGMENT

This cause came on to be heard on the transcript of the

record from the United States District Court for the Eastern

District of Louisiana, and was taken under submission by

the Court upon the record and briefs on file, pursuant to
Rule 18;

ON CONSIDERATION WHEREOF, It is now here order-

A-6

ed and adjudged by this Court that the judgment of the said
District Court in this cause be, and the same is hereby, af-
firmed and that this cause be and the same is hereby reman-
ded to the said District Court in accordance with the opin-
ion of this Court;

It is further ordered that plaintiff-appellant pay to defen-
dants-appellees, the costs on appeal to be taxed by the Clerk
of this Court.

December 10, 1976

Issued as Mandate:

A-7
APPENDIX C
EXCERPTS FROM TRANSCRIPT
THE COURT:
Thank you.

I’m going to grant the motion for summary judgment.

It seems to me that the matter is controlled by the
Fifth Circuit Court of Appeals decision in Exhibitors
Poster Exchange, Inc. versus National Screen Service Corp-
oration, 517 Federal Second 110. Taking the position most
favorable to the Plaintiff, which is supported not by affi-
davits or depositions, but by the pleadings as he elaborated,
by the statement of counsel for the Plaintiff this morning,
the Plaintiff contends that illegal acts were performed prior
to the institution of the various prior lawsuits, and those
illegal acts have continued to a time beyond the termination
of the other lawsuits and that damages have been suffered
at a time subsequent to the commencement of the other
lawsuits.

Now, that breaks down into two separate issues. One is
that the Plaintiff may sue for the acts committed after the
last lawsuits on the basis they were illegal; but the legality
or illegality vel non of those self-same acts has been deter-
mined. In the discussion in this regard at Page 114 II of
the Exhibitors Poster Exchange suit deals with that issue.
The whole purpose of the notion of collateral estoppel, as
distinguished from the doctrine of res judicata, is that
while res judicata pertains only to the self-same events and

A-8

the force of a decision on them, collateral estoppel is a
broader doctrine and reaches to similar acts or identical
acts performed at a different time so long as the parties
were the same. ‘‘Collateral estoppel bars a Plaintiff from
assailing the Defendants for proceeding without change
upon the course of conduct previously held lawful against
Plaintiff’s identical attack.’’ That’s at 517 Federal Second
114.

Now, as to whether or not the monopolistic practice
alleged to have continued was lawful or unlawful, collater-
al estoppel bars that claim; if, indeed, the acts were lawful
and now contended to be lawful, then the mere fact that
they caused additional damages would not, of course, give
rise to a new cause of action.

The suggestion is made in the memorandum that collat-
eral estoppel as a legal doctrine is inapplicable if there has
been no trial on the merits of the case. That position is
rejected by the Fifth Circuit in the Exhibitors Poster Ex-
change suit, and I quote from their opinion at Page 1i5:
“We reject out of hand the beguiling but superficial conten-
tion of Exhibitors that neither suit one nor number two can
have any collateral estoppel effect because no summary
judgment can have such effect.’’ Ard then, the Court con-
tinues to explain the reason for its rejection out of hand.

If the Fifth Circuit rejects the argument out of hand of-
ficiary, I must do so. Motion is granted.

Thank, you gentlemen.

MR. WITTMANN: Thank you, Your Honor.

xkxeekek*

A-9
REPORTER'S CERTIFICATE

The undersigned certifies, in his capacity of Official
Court Reporter for the United States District Court, Eastern
District of Louisiana, the foregoing to be a true and correct
transcription of his Stenograph notes during the proceedings
on the 14th day of April, 1976.

New Orleans, Louisiana, this 21st day of April, 1976.
s/ M. H. Gaudet, Jr.

M. H. Gaudet, Jr.,
Official Court Reporter

A-10
APPENDIX D
JUDGMENT OF DISTRICT COURT

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA

EXHIBITORS POSTER EXCHANGE, INC.
versus

NATIONAL SCREEN SERVICE CORPORATION, CO-
LUMBIA PICTURES INDUSTRIES, INC., METRO-
GOLDWYN-MEYER, INC., PARAMOUNT PICTURES
CORPORATION, TWENTIETH CENTURY-FOX DIS-
TRIBUTING CORP., UNITED ARTISTS CORPORA-
TION, UNIVERSAL FILM EXCHANGES, INC. and
WARNER BROS. DISTRIBUTING CORPORATION

Filed: April 15, 1976
JUDGMENT

q
The court having previously granted the motion for
summary judgment by defendants,

IT IS ORDERED, ADJUDGED AND DECREED that
there be judgment in favor of defendants, National Screen
Service Corporation, Columbia Pictures Industries, Inc.,
Metro-Goldwyn-Meyer, Inc., Paramount Pictures Corpora-
tion, Twentieth Century-Fox Distributing Corp., United
Artists Corporation, Universal Film Exchanges, Inc. and
Warner Bros. Distributing Corporation, and against plain-
tiff, Exhibitors Poster Exchange, Inc., dismissing plaintiff's
suit at its costs.

A-11

Dated at New Orleans, Louisiana, this 13th i
mn . day of April

s/ Nelson B. Jones
NELSON B. JONES, CLERK

APPROVED AS TO FORM:

s/ Alvin B. Rubin
UNITED STATES DISTRICT JUDGE

Francis T. Anderson, Esq.
Glenn B. Hester, Esq.

C. Ellis Henican, Jr., Esq.
Gibbons Burke, Esq.
Walter S. Beck, Esq.

Phillip A. Wittman, Esq.

A-12

APPENDIX E
PETITION FOR REHEARING

UNITED STATES COURT OF APPEALS
FIFTH CIRCUIT

EXHIBITORS POSTER EXCHANGE, INC.
Plaintiff-Appellant NO. 76-2463

versus

NATIONAL SCREEN SERVICE CORPORATION,

ET ALS.,
Defendants-Appellees

PETITION FOR REHEARING

It is respectfully submitted that a rehearing should be
granted because of the fact that the Court has not distin-
guished - or even mentioned - the authorities cited in plain-
tiff’s brief.

More fully, plaintiff has cited the Supreme Court case of
Lawlor v. National Screen Service Corp., 349 U.S. 322, and
Restatement of Judgments, sec. 68, Comment C. (See page
5 of plaintiff's original brief.)

Plaintiff contends that the judgment appealed from is
in direct conflict with these authorities, and therefore it
appears that they have been overlooked by the Court.

It is therefore submitted that a rehearing should be grant-
ed in order that the authorities relied on by the plaintiff
may be considered by the Court.

A-13
Respectfully submitted,

FRANCIS T. ANDERSON
1007 Church Lane
Yeadon, Pennsylvania 19050

GLENN B. HESTER
Commerce Building
Augusta, Georgia 30902

s/ C. Ellis Henican, Jr.
C. ELLIS HENICAN, JR.

OF COUNSEL:

HENICAN, JAMES & CLEVELAND

Suite 4440, One Shell Square

New Orleans, Louisiana 70139

Telephone: 581-7575

ATTORNEYS FOR PLAINTIFF-APPELLANT

A-14
CERTIFICATE OF SERVICE _

I certify that copies of the above and foregoing Petition
for Rehearing have been forwarded to opposing counsel by
depositing said copies in the U.S. Mail with proper postage
affixed, on this 22d day of December, 1976.

s/ C. Ellis Henican, Jr.
C. ELLIS HENICAN, JR.

A-15
APPENDIX F

PETITION FOR REHEARING

Filed: January 10, 1977

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

NO. 76-2463

EXHIBITORS POSTER EXCHANGE, INC.,
Plaintiff-Appellant

Versus

NATIONAL SCREEN SERVICE CORPORATION, ET AL..,
Defendants-Appellees

Appeal from the United States District Court for the
Eastern District of Louisiana

ON PETITION FOR REHEARING
(JANUARY 10, 1977)

Before COLEMAN, GOLDBERG and GEE, Circuit Judges.

PER CURIAM:

IT IS ORDERED that the petition for rehearing filed in
the above entitled and numbered cause be and the same is
hereby DENIED.

ENTERED FOR THE COURT:
S/ IRVING L. GOLDBERG
United States Circuit Judge

A-16
APPENDIX G
STATUTES INVOLVED

Sections 1 and 2 of the Sherman Act, 26 Stat. 209, 15
U.S.C. Sections 1 and 2:

Section 1.

Every contract, combination in the form of trust or
otherwise, or conspiracy, in restraint of trade or commerce
among the several States, or with Foreign nations, is declar-
ed to be illegal. . Every person who shall make any con-
tract or engage in any combination or conspiracy declared
by sections 1 to 7 of this title to be illegal shall be deemed
guilty of a misdemeanor, and, on conviction thereof, shall
be punished by fine not exceeding fifty thousand dollars,
or by imprisonment not exceeding one year, or by both said
punishments, in the discretion of the court.

Section 2.

Every person who shall monopolize, or attempt to mono-
polize, or combine or conspire with any other person or
persons, to monopolize any part of the trade or commerce
among the several States, or with foreign nations, shall be
deemed guilty of a misdemeanor, and, on conviction there-
of, shall be punished by fine not exceeding fifty thousand
dollars, or by imprisonment not exceeding one year, or by
both said punishments, in the discretion of the court.

Sections 4 and 16 of the Clayton Act, 28 Stat. 731 and
737, 15 U.S.C. Sections 15 and 26:

A-17
Section 4.

Any person who shall be injured in his business or pro-
perty by reason of anything forbidden in the antitrust laws
may sue therefor in any district court of the United States
in the district in which the defendant resides or is found or
has an agent, without respect to the amount in controversy,
and shall recover threefold the damages by him sustained,
and the cost of suit, including a reasonable attorney’s fee.

Section 16.

Any person, firm, corporation, or association shall be
entitled to sue for and have injunctive relief, in any court of
the United States having jurisdiction over the parties,
against threatened loss or damage by a violation of the anti-
trust laws, including sections 13, 14, 18 and 19 of this title,
when and under the same conditions and principles as in-
junctive relief against threatened conduct that will cause
loss or damage is granted by courts of equity, under the
rules governing such proceedings, and upon the execution
of proper bond against damages for an injunction improvi-
dently granted and a showing that the danger of irreparable
loss or damage is immediate, a preliminary injunction may
issue: Provided, That nothing herein contained shall be con-
strued to entitle any person, firm, corporation, or associ-
ation, except the United States, to bring suit in equity for
injunctive relief against any common carrier subject to the
provisions of the Act to regulate commerce, approved Feb-
ruary fourth, eighteen hundred and eighty-seven, in respect
of any matter subject to the regulation, supervision, or
other jurisdiction of the Interstate Commerce Commission.

---

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