United Artists Corp. v. Strand Productions, Inc.

The questions here arise out of two motion picture contracts bearing dates of March 18, 1948, and June 9, 1948, wherein United Artists Corporation, a Delaware company, is the distributor. Under one, James Nasser Productions, Inc., is the producer and under the other James Nasser individually is the producer.

Strand Productions, Inc., and Ressan, Incorporated, debtors, have succeeded to the Nasser interests. In all respects material to this cause, the substance of the contracts is identical.

Throughout this opinion, United Artists Corporation will be referred to as “United” or “the distributor.” For discussion purposes, the original producers will be referred to as “Nasser” or “the producer.” The debtors in bankruptcy (Chapter XI) will also be referred to as “the producer,” “the debtor” and as “Strand.” “Strand” will encompass both Strand Productions, Inc., and Ressan, Incorporated.

Each contract contains 39 printed pages plus several addenda pages. By the terms of the contracts, Nasser undertook to make four feature motion pictures and United agreed to distribute them. Apparently, United is a major distributor, but not a major producer. It restricts its business to distribution…