Showmen's Trade Review (Apr-Jun 1939)

June S. 7<A>o T H ;\ N N 1 V E R S A R Y ISSUE Page 45 III. Permanent Arbitration Board (1) Appointment of panels. All distributors and affiliated exhibitors which are at the time entitled to participate in the appointment of the panel of neutral arbitrators for an exchange territory shall by unanimous action appoint a panel of ten arbitrators, and all organized exhibitor groups which are at the time entitled to participate in the appointment of said panel of neutral arbitrators shall by unanimous action appoint a panel of ten arbitrators, for such exchange territory. It is contemplated that arbitrators on said panels as well as arbitrators appointed on panels provided for in Article IV hereof will be associated with some branch of the motion picture industry and will serve without compensation. (2) Personnel of Permanent Arbitration Board. A Permanent Arbitration Board consisting of one arbitrator from the panel of neutral arbitrators and two other arbitrators, one from each panel of arbitrators appointed as provided in paragraph (1) of this Article, shall be established in each exchange territory. The members of each of the panels appointed as provided in said paragraph (1) shall serve on the Permanent Arbitration Board in rotation, in such order and for such length of time as the members of such panels shall respectively agree upon. The two arbitrators so serving from said panels shall designate a third arbitrator from said panel of neutral arbitrators, or, if they are unable to agree upon a third arbitrator, the third arbitrator shall be chosen by them by lot from said panel of neutral arbitrators. Said third arbitrator shall be chairman of the Permanent Arbitration Board and shall serve during the term of office of the arbitrators designating or choosing him. (3) Secretary. All distributors, affiliated exhibitors and organized exhibitor groups which are at the time entitled to participate in the appointment of the panel of neutral arbitrators for an exchange territory, shall by unanimous action appoint a secretary of the Permanent Arbitration Board for such exchange territory who shall also act as secretary for the Special Arbitration Boards in such territory provided for in Article IV hereof. (4) Office. Each Permanent Arbitration Board shall maintain an office and have available adequate quarters for the hearing of arbitrations. IV. Special Arbitration Boards (1) Appointment of panels. All distributors and affiliated exhibitors which are at the time entitled to participate in the appointment of the panel of neutral arbitrators for an exchange territory, shall by unanimous action appoint a panel of ten arbitrators, and each organized exhibitor group which is at the time entitled to participate in the aprointment of said panel of neutral arbitrators shall appoint a panel of ten arbitrators, for such exchange territory. An arbitrator designated by a party to a dispute submitted to a Special Arbitration Board shall preferably be a member of one of the panels, but need not be a member of any panel. (2) Two party disputes. With respect to disputes between two parties the Special Arbitration Board shall be constituted as follows: Each party to the dispute shall designate an arbitrator. The two arbitrators so designated shall designate a third arbitrator who may, but need not be a member of the panel of neutral arbitrators, or, if said two arbitrators are unable to agree upon a third arbitrator, the third arbitrator shall be chosen by them by lot from the ranel of neutral arbitrators. Such third arbitrator shall be chairman of such Special Arbitration Board. (3) Disputes relating to clearance. With respect to disputes relating to clearance, the Special Arbitration Board shall be constituted as follows: The complaining exhibitor shall designate an arbitrator, the exhibitor complained aeainst shall designate an arbitrator, and the distributors which are the third party to such dispute shall, as a group, by unanimous action designate an arbitrator. The three arbitrators so designated shall by unanimous action designate two arbitrators who may, but need not, be members of the panel of neutral arbitrators, or, if they are unable to agree uoon either or both of said two arbitrators, one or both, as the case may be, shall be chosen by them by lot from the panel of neutral arbitrators. One of said tv/o arbitrators shall be elected chairman of such Special Arbitration Board. (4) Right to eliminate arbitrator. In any case where a neutral arbitrator is chosen by lot from the ranel of neutral arbitrators each arbitrator designated by a party shall be entitled to reject one neutral arbitrator chosen by lot, and if such right is exercised with respect to any neutral arbitrator so chosen, the neutral arbitrator so rejected shall not serve and another neutral arbitrator shall be chosen by lot from among the neutral arbitrators not so rejected. V. Parties to Disputes (1) Disputes between a distributor and an exhibitor. All disDutes subject to arbitration under the Trade Practice Code except disputes relating to overbuying and to clearance shall be between two parties, a distributor and an exhibitor. (21 Disputes relating to over-buying. Disputes relating to over-bu"ing shall be between two parties, the cornplaining exhibitor and the exhibitor complained against, but each distributor which has signed the Trade Practice Code and at the time has a license agreement with the exhibitor complained against shall be entitled to notice of all hearing's and shall have all other rights which it would have if it were a party to such dispute except only the right to designate an arbitrator. f3) Disputes relating to clearance. Disputes relating to clearance shall be between three parties (a) the complaining exhibitor, (b) the exhibitor complained against and (c) the distributors, as a group, which_ at the time have license agreements with the complaining exhibitor and grant to the exhibitor complained against the clearance complained of. Each of said distributors shall be entitled to notice of all hearings and shall have all other rights of a party except only the right individually to designate an arbitrator. In the event that in any dispute relating to clearance any party thereto shall claim in writing filed with the arbitration board that any exhibitor not named as a party thereto may be prejudiced by any award made therein in favor of the complaining exhibitor, the arbitration board shall have no power to proceed with the hearing unless within a time to be fixed by the arbitration board there shall have been filed with it the consents in writing, signed by all such exhibitors, to be bound by any award which may be made in such dispute. If such consents in writing of all such exhibitors shall have been so filed, the arbitration board shall proceed with the arbitration and such exhibitors shall be entitled to notice of all hearings and shall have the right to represent themselves or be represented by others at all hearings and to examine or cross-examine all witnesses. The award of the arbitration board shall be binding upon such exhibitors to the same extent as if they had been parties to such dispute. VI. Oaths of Arbitrators Each person, upon his appointment as an arbitrator or as a member of any panel, shall take and subscribe to one or more counterparts of the form or forms of oath of office prescribed by law in the jurisdiction or jurisdictions where he shall act as arbitrator. In the event that no such form of oath is prescribed by law, he shall take and subscribe to the following form of oath : I having been duly appointed (an arbitrator) (a member of the panel of arbitrators) for the exchange territory, do solemnly swear that I will faithfully and fairly hear and examine the disputes brought before me and will determine each such dispute in accordance with the sririt and intent of the provisions of the Trade Practice Code of the motion picture industry and the Rules of Arbitration annexed thereto, and will make a just award to the best of my understanding. Said persons shall, from time to time, also take and subscribe to such other or additional oaths as may be required by law in connection with the hearing of any dispute and shall make and execute all papers necessary or convenient to make their awards binding and effective to the extent that such awards may in any particular case be made binding and effective. The oaths shall be filed in the office of the Permanent A.rbitration Board and in such other offices or places as shall be required by law in the jurisdiction or jurisdictior-s wherein the arbitration shall be held or wherei the award shall be filed to make the same binding and effective. VII. Terms of Office Arbitrators, Removals and Vacancies (1) Term of office. The members of each panel of arbitrators shall serve for six months. (2) Removals. Arbitrators in the panel appointed by distributors and affiliated exhibitors may be removed at any time by a maiority of the distributors and a majority of the affiliated exhibitors who are at the time entitled to participate in the appointment of arbitrators to such panel. Arbitrators in a panel appointed by an organized exhibitor group or groups may be removed at any time by the action of the exhibitor groun or grouns who are at the time entitled to participate in the appointment of arbitrators to such panel. (3) Vacancies. Vacancies in any panel of arbitrators occurring by reason of death, resignation, removal or disoualification shall be filled in the manner hereinabove provided for the original appointment of arbitrators to such panel. Any arbitrator so appointed shall serve for the balance of the term of his predecessor in office. VIII. Jurisdiction of Boards No Permanent Arbitration Board shall hear, and no Special Arbitration Board shall be constituted to hear, a disnute unless and until each of the parties thereto shall have become a party signatory to the Trade Practice Code, shall have otherwise complied with Article XVII thereof, and shall have signed the agreement of arbitration annexed hereto and made a part hereof. The secretary of each Permanent Arbitration Board shall keep a list of the names and addresses of the distributors and exhibitors in his exchange territory who have agreed to arbitrate disputes as above provided, which list shall be available for inspection during ordinary business hours by any interested party. Each dispute which is subject to arbitration under the Trade Practice Code may be submitted to and determined by the Permanent Arbitration Board of the exchanee territory in which it arises and shall be so submitted and determined unless one or more of the parties to such dispute shall request that such dispute be submitted to a Special Arbitration Board, in which case the dispute shall be submitted to and determined by a Special Arbitration Board. It is intended that any party to a dispute shall feel free to have such dispute submitted to a Special Arbitration Board. Until a Prmanent Arbitration Board is established in an exchange territory all disputes which are subject to arbitration under the Trade Practice Code shall be submitted to Special Arbitration Boards. An arbitration board shall have only the powers conferred upon arbitrators by the Trade Practice Code and these Rules of Arbitration and every award shall conform thereto. IX. Arbitration Proceedings (1) Statement of claim. To initiate an arbitration hereunder the complaining party shall deliver personally or mail to the secretary of the Permanent Arbitration Board a statement of claim and a cony or copies thereof, which shall set forth in non-technical language the following: (a) The name and address of the complaining party, the name ot the theatre(s) involved in the dispute and the name of the party or parties claimed against, and, in case of a dispute relating to over-buying, the names of the distributors entitled to notice as hereinabove provided. (b) A brief statement of the claim (including, if a license agreement is involved, the date of the same and the names of the parties thereto) and of the relief sought. (c) A demand for arbitration and, if the complaining party does not desire that the dispute be submitted to the Permanent Arbitration Board, a reauest that the dispute be submitted to a Special Arbitration Board. (d) The designation of an arbitrator who shall serve in the event that either the complaining party in such statement, or the party (or, in a case of a dispute relating to clearance, any part) complained against, requests the submission of the dispute to a Special Arbitration Board. The statement of claim must be accompanied by a filing fee of $5.00. (2) Notice of claim. The secretary shall promptly deliver personally or post by registered mail a copy of such statement of claim to the party (or, in case of a dispute relating to clearance, to each party) complained against. Such party (or, in case of a dispute relating to clearance, each such party entitled to designate an arbitrator) shall, within seven days after the delivery or mailing of such copy, deliver personally or post by registered mail to the secretary an acknowledgment in writing of receipt thereof and shall also at the same time designate in writing an arbitrator who shall serve in the event that either the complaining party shall in his statement of claim, or any party complained against shall in its designation, request that the dispute be submitted to a Special Arbitration Board. (3) Notification of arbitrators. If any party to a dispute shall have requested that the dispute be submitted to a Special Arbitration Board, the secretary shall forthwith unon the receipt of the designations of arbitrators notify the arbitrators designated by the parties of their designation. In the event that any party shall not have designated an arbitrator when required to do so as hereinabove provided, the then chairman of the Permanent Arbitration Board shall designate an arbitrator for such party from one of the panels of arbitrators. If no party to a dispute shall have requested that the dispute be submitted to a Special Arbitration Board, the secretary shall promptly so notify the chairman of the Permanent Arbitration Board presiding at the time the complaint is filed and the Permanent Arbitration Board as constituted at such time of filing shall hear and determine the dispute. (4) Disqualification of arbitrator. No arbitrator shall act in any dispute in which he has, either directly or indirectly, a personal or financial interest unless such disqualification shall have been waived by all the parties; provided that in any dispute relating to clearance submitted to a Special Arbitration Board the arbitrator designated by the distributors shall not be disqualified because of his personal or financial interest in any distributor other than a distributor affiliated with an exhibitor which is a party to the dispute. (5) Hearing and notice. The chairman of the arbitration board to which a dispute is submitted shall arrange for a prompt hearing thereof and give reasonable notice to the other arbitrators and to the parties of the time and place of the hearing and of the personnel of the arbitration board. In the case of any dispute relating to over-buying the chairman shall also give similar notice to all distributors who then have license agreements with the party complained against. Hearings shall be held in the city named in Article I hereof in which are located the exchanges from which the complaining exhibitor is served or, if the complaint is filed by a distributor, in the city named in Article I hereof in which are located the exchanges from which the exhibitor complained against is served. Parties may represent themselves or be represented by others at all hearings and shall have the right to examine or cross-examine all witnesses. Witnesses shall testify under oath. Any arbitration board may require any party to a dispute heard by it to produce at the hearing any records or documents deemed by it to be material and relevant. Each arbitration board shall be the judge of the relevancy and materiality of the testimony or evidence offered, but the legal rules of evidence shall not be applied and the board may inquire into the good faith of any claim or defense offered. Stenographic records of hearings will not be made unless one or more parties shall request the same and provide funds therefor, in which case the stenographer shall be designated or approved by the arbitration board. (6) Waiver of oral hearing. The parties to a dispute (including all parties entitled to notice of hearmg thereof) may by agreement in writing, filed with the secretary, waive oral hearings. In such case the complaining party shall file with the secretary a staternent under oath of his claim supported by material and relevant evidence (which may include excerpts or statements from books of account or other records and documents) and by written argument, together with conies thereof for each party complained against. Immediately upon the filing thereof a copy shall be delivered perso:ially or posted by registered mail by the secretary to each party complained against, each of whom, if he desires to make answer, shall within seven days after receipt of his copy file a statem.ent under oath of his defense, supported in like manner, together with copies thereof for each other party to dispute. Immediately upon the filing thereof a copy shall be delivered personally or posted by registered mail bv the secretary to each other party to the dispute. If any party complained against makes answer as hereinabove provided, each other party to (Continued on page 68)