Justices Rule Fox Liable for Film Block-Booking

The Supreme Court declined to review a lower court ruling today that held 20th Century Fox Film Corp. liable for a Fox employee’s illegal block-booking of movies such as “Cocoon” and “Prizzi’s Honor.”

The justices, without comment, rejected the film company’s appeal in the antitrust case.

At issue was whether a corporation can be charged with criminal contempt when one of its employees is found in contempt for violating a court-approved agreement.

Fox, in seeking high court review, argued that judges must consider any evidence a corporation has showing it did all it could to make sure its employees operate within the law.

The U.S. 2nd Circuit Court of Appeals found such evidence was irrelevant.

Fox and Leila Goldstein, manager of the film company’s branch office for Indianapolis, Milwaukee and Minneapolis, were convicted of criminal contempt for violating a 1951 consent decree in which Fox and other motion picture companies agreed to stop block-booking films. In the Fox case, Goldstein required booking agents to take a less desired film in order to receive a license for a more desired film.

For example, an independent agent was required to play “Black Widow” in order to keep dates to play “Mannequin,” and the same arrangement was required for the film pairings of “Johnny Dangerously” and “Flamingo Kid” as well as “Cocoon” and “Prizzi’s Honor.”

The government argued against review.