Desny v. Wilder
46 Cal. 2d 715, 299 P.2d 257 (1956)
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Rule of Law:
The conveyance of an idea can constitute valuable consideration and be the subject of an implied-in-fact contract, which is formed when a creator submits an idea with the clear condition that they expect payment for its use, and the recipient voluntarily accepts the submission knowing this condition and then uses the idea.
Facts:
- Victor Desny conceived and wrote a literary composition and a shorter synopsis based on the historical events of Floyd Collins, a man who was trapped in a cave in 1925.
- In November 1949, Desny telephoned the office of Billy Wilder, a writer, producer, and director for Paramount Pictures Corporation.
- Wilder's secretary answered, and after Desny briefly described the story, she stated that Wilder would only consider a synopsis, not the full 65-page story.
- Two days later, Desny called the secretary again and, at her request, read his three-to-four-page synopsis over the phone, which she transcribed in shorthand for Wilder.
- During this second call, Desny explicitly told the secretary that he expected to be paid the reasonable value of the story if defendants used it.
- The secretary acknowledged this condition, stating that if Wilder or Paramount used the story, 'naturally we will pay you for it.'
- Subsequently, Paramount produced and released a motion picture titled 'Ace in the Hole,' which Desny alleged was based on his synopsis and contained similar historical facts and fictional elements he had created.
Procedural Posture:
- Victor Desny filed a complaint in a California trial court against Billy Wilder and Paramount Pictures Corporation.
- Defendants filed a motion for summary judgment, arguing that Desny had no legally protectable interest in his idea.
- The trial court granted summary judgment in favor of the defendants.
- Desny appealed the trial court's grant of summary judgment to the Supreme Court of California.
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Issue:
Does the submission of a literary idea or synopsis to a producer's agent, with the express understanding that payment is expected if the material is used, create a triable issue of fact for breach of an implied-in-fact contract when the producer subsequently creates a photoplay substantially similar to the submitted synopsis, even if the underlying idea is based on public domain material?
Opinions:
Majority - Schauer, J.
Yes. An implied-in-fact contract to pay for the disclosure of a literary idea can be established where the facts show the idea was submitted for sale, the recipient accepted it with knowledge of the condition of payment, and then used the idea. While abstract ideas are not protectible as property, the act of conveying an idea can be valuable consideration for a contract. The court determined that Desny offered his synopsis to Wilder's secretary on the condition of payment if used. The secretary, acting as an agent for Wilder and Paramount, accepted the submission, and her knowledge of the terms of the offer is imputed to her employers. The subsequent use of the benefit (the synopsis) constitutes an acceptance of the obligation to pay for it under California Civil Code § 1589. Because the defendants' film bears substantial similarities to Desny's synopsis, including fictional elements, a triable issue of fact exists as to whether they used his composition, making summary judgment improper.
Concurring - Carter, J.
Yes. Concurring only in the result, this opinion argues that the majority's lengthy legal discussion was unnecessary to find that a triable issue of fact exists, which is the only question on review of a summary judgment. The opinion criticizes the majority for instructing the future trier of fact on how to weigh evidence. It posits that in the context of the entertainment industry, when a writer submits material to a prospective buyer, an agreement to pay for the material if it is used is implied from the circumstances and the relationship of the parties, given the inherent power imbalance. The core issue is simply whether the defendants used the proffered work without compensation, which is a question of fact for a jury to decide.
Analysis:
This landmark case established the legal framework in California for protecting ideas through contract law, rather than property law. It validated the 'implied-in-fact' contract theory for idea submission cases, providing a crucial cause of action for writers and creators. The decision separates the unprotectable abstract idea from the protectable service of disclosing that idea under circumstances indicating a bargain for payment. This precedent forces producers to be mindful of the conditions under which they accept unsolicited materials and has shaped industry practices regarding script and idea submissions.
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