Hospital Television, Inc. v. Wells Television, Inc.
Hospital Television, Inc. v. Wells Television, Inc.
Opinion of the Court
In this treble damage action filed by Hospital Television, Inc. under the federal antitrust laws, the jury found against H.T.I., and it raises four points of error on this appeal. The case was tried to the jury on the rule of reason doctrine announced by Chief Justice White in Standard Oil Co. v. United States, 221 U.S. 1, 31 S.Ct. 502, 55 L.Ed. 619 (1911). On the issue of the liability under Sections 1 and 2 of the Sherman Act
In December, 1959, Jay and Arnold Wells, who had a national chain organization engaged in leasing TV equipment to hotels and motels in 25 states, approached Tishman Realty and Investment Co. of St. Louis, to purchase the Wells business. Tishman formed a wholly owned subsidiary and bought Wells’ holdings for $1,200,000 and one fifth of the stock of the subsidiary. The subsidiary later adopted the name of Wells Television, Inc. Within 9 months Wells had acquired some 250 hospital accounts over the country. On March 15, 1960, Wells acquired the eleven hospital accounts of Ball Radio in St. Louis and soon thereafter also secured the eight hospital accounts of Hospital Television Services, Inc., the former employer of Mrs. Dennis. Tishman furnished or procured the capital necessary for Wells to expand its national operations in hospital TV accounts, of which the latter had some five hundred by mid 1971. Wells standard contracts with the hospitals carried three clauses, inter alia, (1) a “right to match” provision giving Wells the option to meet any competitor’s proposal made to one of its hospital accounts on the expiration of a Wells’ contract; (2) a “not permitted” provision prohibiting any patient from bringing a TV set into the patient’s hospital room; and (3) an “ever green” clause requiring a 180-day prior notice requirement to terminate an expiring contract the failure to give which resulted in its automatic renewal. At the time of the filing of this suit in 1969, Wells had 17, hospital contracts in St. Louis, while appellant had four and six were self-operated or held by other rental concerns. There were 27 hospitals in the St. Louis area that were potential users of TV for their patients on a rental basis.
2. After a thirteen-day trial, the following issues were submitted to the jury under a charge to which no objection [other than above stated] was taken
3. In view of this finding we can only conclude that the jury was of the view that the appellees had not violated the antitrust laws.
The remaining points raised by appellant have to do with damages. On a general verdict one never knows what the jury hung its verdict upon. But since it only considered the case for twenty minutes after its submission and since the court’s instructions required a decision on liability first, it is fair to assume that it never reached the damage issue. We, therefore, do not consider those issues and the judgment is affirmed.
. 15 Ü.S.C. §§ 1 and 2 :
“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 na-
tions, is declared to be illegal
“§ 2: Every person who shall monopolize, or attempt to monopolize, 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 . . .”
. The instructions were in standard form, initially explaining the duties of jurors; the nature of the suit; the purpose, meaning and application of the Sherman Act, both Sections 1 and 2; the elements of proof necessary to show a violation of the antitrust laws; causation; damages, etc.
. In this connection the charge to the jury spelled out in detail the respective claims of the appellant, Wells and Tishman. Included were the claims of monopoly, attempt to monopolize and unreasonable restraint on Hospital Television; the issues as to creation of Wells Television, Inc.; its acquisition of Ball Radio and Hospital Television Services in St. Louis; the clauses in the Wells hospital contracts i. e. “right to match”, private sets “not permitted” etc.; all of which Hospital Television claimed was restrictive and Wells claimed was to protect its investment; “the right of first refusal” clause which Wells claimed was never invoked and Hospital Television claimed gave the contracts a perpetual existence; Wells’ claim that its growth was through superior managment etc. and that Hospital Television’s failure was lack of business efforts, undercapitalization, refusal to furnish equipment necessary, lack of salesmanship, attempts to pressure customers etc. In short, the 30-page charge fairly submitted all of the issues to the jury. As we have said, there was no objection to the charge on these grounds but solely on the damage, if any.
. Exhibits 28 and 82 were the only pages actually offered. Ex. 28 relates a conversation between Dade and Alsop of Alexian Brothers Hospital. We note it quotes Alsop as expressing “extreme satisfaction with Wells,” which is indicative of the hearsay character of all of the offerings. Ex. 82 related the incidence of a call Dade made to DePaul Hospital in July, 1965, which was beyond the limitation period of 4 years prior to suit. The efforts of appellant to secure both of these hospital accounts, inter alia, were related in Mrs. Dennis’ testimony and the diary would have been cumulative at most.
. The diary was required by the appellant and apparently was made in the regular course of business but was filled with hearsay and, in our view, was not within the contemplation of the Business Records Act. The presence of Dade in the courtroom at the time would, in any event, require his identification and explication of the proffered evidence in the light of its obvious dangers as well as its impingement upon the hearsay rule.
Reference
- Full Case Name
- HOSPITAL TELEVISION, INCORPORATED, a Corporation v. WELLS TELEVISION, INCORPORATED, a Corporation, and Tishman Realty and Construction Company, Incorporated, a Corporation
- Cited By
- 2 cases
- Status
- Published