Beacon Theatres, Inc. v. Westover
Beacon Theatres, Inc. v. Westover
Opinion of the Court
delivered the opinion of the Court.
Petitioner, Beacon Theatres, Inc., sought by mandamus to require a district judge in the Southern District of California to vacate certain orders alleged to deprive it of a jury trial of issues arising in a suit brought against it by Fox West Coast Theatres, Inc. The Court of Appeals for the Ninth Circuit refused the writ, holding that the trial judge had acted within his proper discretion in denying petitioner’s request for a jury. 252.F. 2d 864. We granted certiorari, 356 U. S. 956, because “Maintenance of the jury as a fact-finding body is of such importance and occupies so firm a place in our history and. jurisprudence that any seeming curtailment of the right to a jury trial should be scrutinized with the utmost care.” Dimick v. Schiedt, 293 U. S. 474, 486.
Beacon demanded a jury trial of the factual issues in-the case as provided by Federal Rule of Civil Procedure 38 (b). The District Court, however, viewed the issues raised by the “Complaint for Declaratory Relief,” including the question of competition between the two theatres, as essentially equitable. Acting under the purported authority of Rules 42 (b) and 57, it directed that these issues be tried to the court before jury determination of the validity of the charges of antitrust violations made in the counterclaim and cross-claim.
The District Court’s finding that the Complaint for Declaratpry Relief presented" basically equitable issues draws ,no support from the Declaratory Judgment Act, 28 Ü. S. C. §§ 2201,.2202; Fed. Rules Civ. Proc., 57. See also 48 Stat. 955, 28 U. S. C. CI940 ed.) § 400. That statute, while allowing prospective defendants to sue to establish their nonliability, specifically preserves the right to jury trial for both parties.
Nevertheless the' Court of Appeals refused to upset the order of the district judge. It held that the question of whether a right to, jury trial existed was to be judged
The basis of injunctive relief in the federal courts has always been irreparable harm and inadequacy of legal
Our decision is consistent with the plan of the Federal Rules and the Declaratory Judgment Act to effect
If there should be cases where the availability of declaratory judgment or joii.ier in one suit of legal and equitable causes would not, in all respects protect the plaintiff seeking equitable relief from irreparable harm while, affording a jury trial in the legal cause, the trial court will necessarily have to use its discretion in deciding whether the legal or equitable cause should be tried first. Since the right to jury trial is a constitutional one, however, while no similar requirement protects trials by the court,
Respondent claims mandamus is not available under the All Writs Act, 28 U. S. C. § 1651. Whatever differences of. opinion there may be in other types of cases, we think the right to grant mandamus to require jury trial where it has been improperly denied is settled.
The judgment of the Court of Appeals is
Reversed.
Beacon- allegedly stated that the clearances granted violated both the antitrust laws and the decrees issued in United States v. Paramount Pictures, Inc., 66 F. Supp. 323, 70 F. Supp. 53, affirmed in part and reversed in part, 334 U. S. 131, subsequent proceedings in the District Court, 85 F. Supp. 881. The decrees in' that case set limits on what clearances could be given when theatres were in competition with each other and. held that there should be no clearances between theatres not in substantial competition. Neither Beacon nor Fox, however, appears to have been a party to those decrees. Their relevance, therefore, seems to be only that of significant precedents.
Other prayers aside from the general equitable plea for “such further relief as the court deems proper” added nothing material to those set out.
Fed. Rules Civ. Proc., 42 (b) reads: “The court in furtherance of convenience or to avoid prejudice may order a separate trial of any claim, cross-claim, counterclaim, or third-party claim, or of any separate issue or of any number of claims, cross-claims, counterclaims, third-party claims, or issues,” Rule 57 reads in part: “The court may order a speedy hearing of an action for a declaratory judgment and may advance it on the calendar.”
See, e. g., (‘American) Lumbermens Mut. Cas. Co. v. Timms & Howard, Inc., 108 F. 2d 497; Hargrove v. American Cent. Ins. Co., 125 F. 2d 225; Johnson v. Fidelity & Casualty Co., 238 F. 2d 322. See Fed. Rules Civ. Proc., 57, 38, 39.
Compare Enelow v. New York Life Ins. Co., 293 U. S. 379, with American Life Ins. Co. v. Stewart, 300 U. S. 203. See also City of Morgantown v. Royal Ins. Co., 337 U. S. 254; Peake v. Lincoln Nat. Life Ins. Co., 15 F. 2d 303.
252 F. 2d, at 874. In Ettelson v. Metropolitan Life Ins. Co., 317 U. S. 188, 192, this Court recognized that orders enabling equitable causes to be tried before legal ones had the same effect as injunctions. In City of Morgantown v. Royal Ins. Co., 337 U. S. 254, the Court denied at least some such orders the status of injunctions for the pur
See, e. g., Smyth v. Ames, 169 U. S. 466, 515; Detroit v. Detroit Citizens’ Street R. Co., 184 U. S. 368, 378-382; cf. Matthews v. Rodgers, 284 U. S. 521.
E. g., Pennsylvania v. Wheeling & Belmont Bridge Co., 13 How. 518, 561; Parker v. Winnipiseogee Lake Cotton & Woollen Co., 2 Black 545, 551; Enelow v. New York Life Ins. Co., 293 U. S. 379.
See, e. g., Cook, Cases on Equity (4th ed.), 18; 4 Pomeroy, Equity Jurisprudence (5th ed.), § 1370; 5 Moore, Federal-Practice, 154 — 168; Morris, Jury Trial Under the Federal Fusion of Law and Equity, 20 Tex. L. Rev. 427, 441-443. Cf. Maryland Theater Corp. v. Brennan, 180 Md. 377, 389, 24 A, 2d 911; Hasselbring v. Koepke, 263 Mich. 466, 248 N. W. 869. But cf. 1 Pomeroy, Equity Jurisprudence (5th ed.), §§ 182, 183. Significantly the Court of Appeals itself relied on the procedural changes brought about by the Federal Rules when it found the plea for equitable relief valid, for it did so by relying on Conley v. Gibson, 355 U. S. 41, which emphasized the liberal construction policies of the Rules.
Since the issue of violation of the antitrust laws often turns on the reasonableness of a restraint on trade in the light of all the facts, see, e. g., Standard Oil Co. v. United States, 221 U. S. 1, 60, it is particularly undesirable to have some of the relevant considerations tried by one fact finder and some by another.
Fed. Rules Civ. Rroc., 13 (a).
See 28 U. S. C. §2072; Fed. Rules Civ. Proc., 39 (a), 57. See also Stainback v. Mo Hock Ke Lok Po, 336 U. S. 368, 382, n. 26; United States v. Yellow Cab Co., 340 U. S. 543, 555-556.
See 36 Stat. 1163, derived from Act of Sept. 24, 1789, §16, 1 Stat. 82. This provision, which antedates the Seventh Amendment, is discussed in 5 Moore, Federal Practice, 32. See, e. g., Hipp v. Babin, 19 How. 271, 277-278; Insurance Co. v. Bailey, 13 Wall. 616, 620-621; Grand Chute v. Winegar, 15 Wall. 373; Buzard v. Houston, 119 U. S. 347, 351-352.
See Fed. Rules Civ. Proc., 1, 2, 18. Cf. Prudential Ins. Co. v. Saxe, 134 F. 2d 16, 31-34; Morris, Jury Trial Under the Federal Fusion of Law and Equity, 20 Tex. L. Rev. 427, 441-443.
See 1 Pomeroy, Equity Jurisprudence (5th ed.), §§251%, 254, 264 (b); 5 Moore, Federal Practice,. 32; but cf. id., 209-21.1. See also, Note, The Joinder Rules and Equity Jurisdiction in the Avoidance of a Multiplicity of Suits, 12 Md. L. Rev.. 88. Of course, unless there is an issue of a right to jury trial or of other rights which depend on whether the cause is a “legal” or “equitable” one, the question of adequacy of legal remedies is purely academic and need nop arise.
Fed, Rules Civ. Proc., 38-(a).- In delegating to the Supreme Court Responsibility for drawing up rules, Congress declared that: “Such rules shall not abridge, enlarge or modify any substantivé' right and.shall preserve.the right of trial by jury as at common law and as declared by the Seventh Amendment to the Constitution.” 28 U. S. C. §2072. The Seventh Amendment ■ reads: “In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law.”
See Hurwitz v. Hurwitz, 78 U. S. App. D. C. 66, 136 F. 2d 796, 798-799; cf. The Genesee Chief v. Fitzhugh, 12 How. 443, 459-460.
This Court has long emphasized the importance of the jury trial. See Parsons v. Bedford, 3 Pet. 433, 446. See also Galloway v. United States, 319 U. S. 372. Id., at 396 (dissenting opinion).
For an example of the flexible procedures available under the Federal Rules, see Ring v. Spina, 166 F. 2d 546, 550.
E. g., Ex parte Simons. 247 U. S. 231, 239-240; Ex parte Peterson, 253 U. S. 300, 305-306; Bereslavsky v. Caffey, 161 F. 2d 499 (C. A. 2d Cir.); Canister Co. v. Leahy, 191 F. 2d 255 (C. A. 3d Cir.); Black v. Boyd, 248 F. 2d 156, 160-161 (C. A. 6th Cir.). Cf. Bruckman v. Hollzer, 152 F. 2d 730 (C. A. 9th Cir.). But cf. In re Chappell & Co., 201 F. 2d 343 (C. A. 1st Cir.). See also La Buy v. Howes Leather Co., 352 U. S. 249.
Dissenting Opinion
dissenting.
There can be no doubt that a litigant is entitled to a writ of mandamus to protect a clear constitutional or statutory right to a jury trial. But there was no denial of such a right here. The district judge simply exercised his inherent discretion, now explicitly confirmed by the Federal Rules of Civil Procedure, to schedule the trial of an equitable claim in advance of an action at law. Even an abuse of such discretion could not, I think, be attacked
The complaint filed by Fox stated a claim traditionally cognizable in equity. That claim, in brief, was that Beacon had wrongfully interfered with the right of Fox to compete freely with Beacon and other distributors for the licensing of films for first-run exhibition in the San Bernardino area. The complaint .alleged that the plaintiff was without an adequate remedy at law and would be irreparably harmed Unless the defendant were restrained from continuing to interfere — by coercion and threats of litigation — with the plaintiff’s lawful business relationships.-
The Court of Appeals found that the complaint, álthough inartistically drawn, contained allegations entitling the petitioner to equitable relief.
Upon motion of Fox the trial judge ordered the original action for declaratory and equitable relief to be tried separately to the ccfurt and in advance of the trial of the defendant’s counterclaim and cross-claim for damages. The court’s order, which carefully preserved the right to trial by jury upon the conspiracy and damage issues raised by the counterclaim and cross-claim, was in conformity with the specific provisions of the Federal Rules of Civil Procedure.
Assuming the existencé of a factual issue common both to the plaintiff’s original action and the defendant’s counterclaim for damages, I cannot agree that the District Court must be compelled to try the counterclaim first.
I.
The Court suggests that “the expansion of adequate legal'remedies provided by the Declaratory Judgment Act . . . necessarily affects the scope of equity.” Does the Court mean to say that the mere availability of an action for a declaratory judgment operates to furnish “an adequate remedy at law” so as to deprive a court of equity of the power to act? That novel line of reasoning is at least implied in the Court’s opinion. But the Declaratory Judgment Act did not “expand” the substantive law.
Thus, if in this case the complaint had asked merely for a judgment declaring that the plaintiff’s specified manner of business dealings with distributors and other exhibitors did not render it liable to Beacon under the antitrust laws, this would have been simply a “juxtaposition of parties.” case in which Beacon could have demanded a jury trial.
II.
The Court’s opinion does not, of course, hold or even suggest that a court of equity may never determine “legal rights.” For indeed it is precisely such rights which the Chancellor, when his jurisdiction has been properly invoked, has often been called upon to decide. Issues of fact are rarely either “legal” or “equitable.” All depends upon the context in which they arise. The examples cited by Chief Judge Pope in his thorough opinion in. the Court of Appeals in this case are illustrative: “. . . [I]n a suit by one in possession of real property to quiet title, or to remove a cloud on title, the court of equity may determine the legal title. In a suit for specific performance of a contract, the court-may determine the making, validity .and the terms of the contract involved. In a suit for an injunction against trespass to real property the court may determine the legal right of the plaintiff to the possession of that property. Cf. Pomeroy, Equity Jurisprudence, 5th ed., §§ 138-221, 221a, 221b, 221d, 250.” 252 F. 2d 864, 874.
Though apparently not disputing these principles, the Court holds, quite apart from its reliance upon the Declaratory Judgment Act, that Beacon by filing its counterclaim and cross-claim acquired a right to trial by jury of issues which otherwise would have been properly triable to the court. Support for this position is found in the principle that, “in the federal courts equity has always acted only when legal remedies were inadequate. . . .” Yet that principle is-not employed-in its traditional sense as a limitation upon the exercise of power by a court of
It has been an established .rule “that equitable jurisdiction existing at the filing of a bill is not destroyed because an adequate legal remedy may have become available thereafter.”
“A court , has control over its own docket. ... In the exercise of a sound discretion it may' hold one lawsuit in abeyance to abide the outcome of another, especially where the parties and the issues aré the same. ... If request had been made by the respondents to suspend the suits in equity till the other causes were disposed of, the District Court could have considered whether justice would not be*518 done by pursuing such a course, the remedy in equity being exceptional and the outcome of necessity. . . . There would be many circumstances to be weighed, as, for instance, the condition of the court calendar, whether the insurer had been precipitate ' or its adversaries dilatory, as well as. other factors. In the end, benefit and hardship would have to be set off, the one against the other, and a balance ascertained.” 300 U. S. 203, 215-216.9
III.
The Court today sweeps away these basic principles as “precedents decided under discarded, procedures.” I-t suggests that the Federal Rules of Ciyil Procedure have somehow worked an “expansion of adequate legal remedies” so as to oust the District Courts of equitable jurisdiction, as. well as to deprive them of their traditional power to control their own dockets. But obviously the Federal Rules could not and did not “expand” the sul> stantive law one whit.
.. Like the Declaratory Judgment Act, the Federal Rules preserve inviolate the right to trial by jury in actions historically cognizable at common law, as under the Constitution they must.
The Rules make possible the trial of legal and equitable claims in the -same proceeding, but they expressly affirnl the' power of a trial judge to determine the order in which claims shall be heard. Rule 42 (b). Certainly the Federal Rules were not intended to undermine the basic structure of equity jurisprudence, developed- over the centuries and explicitly recognized in the United States Constitution.
For these reasons I think the petition for a writ of mandamus should have been dismissed.
Compare Black v. Boyd, 248 F. 2d 156, with Black v. Boyd, 251 F. 2d 843.
Cf. De Groot v. Peters, 124 Cal. 406; California G. C. Bd. v. California P. Corp., 4 Cal. App. 2d 242, 244, 40 P. 2d 846. Compare Kessler v. Eldred, 206 U. S. 285; International News Serv. v. Associated Press, 248 U. S. 215, 236; Truax v. Raich, 239 U. S. 33, 38.
Rule 42 (b) provides: “(b) Separate Trials. The court in furtherance of convenience or to avoid prejudice may order a separate trial of any. claim, cross-claim, counterclaim, or third-party claim, or of any separate issue or of any number of claims, cross-claims, counterclaims, third-party claims, or issues.”
The Note to Rule 39 of vthe Advisory Committee on Rules states that, “When certain of the issues are to be tried by jury and others by .the court, the court may determine the sequence in which such issues shall be tried.” This language was at one time contained in a draft of the Rules, but was deleted because “the power is adequately given by Rule 42(b). . . .” Moore’s Federal Practice .(2d ed.) § 39.12, n. 8.
See also Rule 57, which provides, inter alia, that, “The court may order a speedy hearing of an action for. a declaratory judgment and may advance- it on the calendar.”
It is not altogether clear at this stage of the proceedings whether the existence of substantial competition between Fox and Beacon is actually a material issue of fact common to both the equitable claim and the counterclaim for damages. The respondent ingeniously argues that determination in the equitable suit of the issue
State Farm Mut. Auto. Ins. Co. v. Mossey, 195 F. 2d 56; Connecticut General Life Ins. Co. v. Candimat Co., 83 F. Supp. 1.
Dickinson v. General Accident F. & L. Assur. Corp., 147 F. 2d 396; Hargrove v. American Cent. Ins. Co., 125 F. 2d 225; Pacific Indemnity Co. v. McDonald, 107 F. 2d 446.
Moore’s Federal Practice (2d ed.) § 57.31 [2], “Transposition of parties” would perhaps be a more accurate description. A typical such case is one in which a plaintiff uses the declaratory judgment, procedure to seek a determination of nonliability to a legal claim asserted by the defendant. The defendant in such" a case is, of course, entitled to a jury trial.
The suggestion by the Court that' “This- was because the subsequent legal action, though providing an opportunity to try the casé to a jury, might not protect the right of the equity plaintiff to a fair, and orderly adjudication of. the controversy” is plainly inconsistent with many of the cases in which the rule has been applied. See, e. g., Beedle v. Bennett, 122 U. S. 71; Clark v. Wooster, 119 U. S. 322.
It is arguable that if á ease factually similar to American Life Ins. Co. v. Stewart were to arise under the Declaratory Judgment Act, the defendant would be entitled to a jury trial. See footnote 7. But cf. 5 Moore’s Federal Practice (2d ed.), p.,158.
Congressional authorization of the Rules expressly provided that "Said rules shall neither abridge, enlarge nor modify the substantive rights of any litigant.” ' 48.Stat. 1064. See 28 U. S. C. § 2072.
“In Suits at common law, where the value'in controversy shall exceed twenty dollars, the .right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise ^-examined in any' Court of the United States, than according to the rules of the-, common law.” U..S. Const., Amend. VII. See Rules 38, 39, Fed. Rules Civ. Proc.
This is not, of course, to suggest that the filing of a permissive' “legal” counterclaim to an “equitable” complaint would amount to a waiver of jury rights.on the issues raised by the counterclaim.
Determination of whether a claim stated by the complaint is triable by the court or by a jury will normally not be dependent upon the “legal” or “equitable” character of the counterclaim. See Borehard, Declaratory Judgments (2d ed.), p. 404. There are situations, however, such as a case in which the plaintiff seeks a declaration of invalidity or noninfringement of a patent, in which the relief sought by the counterclaim will determine the nature of the entire case. See Moore’s Federal Practice (2d ed.) § 38.29.
“The judicial Power shall extend to all Cases, in Law and Equity .Art. Ill, § 2.
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