Smith v. Natl. W. Life
2017 Ohio 4184
| Ohio Ct. App. | 2017Background
- Anthony Smith, an annuity agent for National Western Life, was charged back commissions after National Western settled a client lawsuit and terminated his agency; Smith had a personal guaranty.
- Smith filed bankruptcy; a third party later paid National Western, but National Western reported Smith to Vector One as having a debit balance.
- Smith sued for defamation (publication of the debt) and tortious interference with prospective economic advantage (lost employment opportunity allegedly due to the Vector One listing).
- The trial court dismissed the defamation claim under Civ.R. 12(B)(6) as barred by Ohio’s one-year statute of limitations.
- The court granted summary judgment to National Western on tortious interference, holding Smith failed to show an unprivileged, improper act or resulting damages; the appellate court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defamation claim is timely | Smith: publication continued and discovery needed to show ongoing publications; limitations period should not bar claim | Natl. W. Life: Smith alleged initial publication in 2010; complaint shows claim filed after one-year limitations | Dismissed — complaint conclusively time-barred under one-year statute; discovery not required to defeat 12(B)(6) motion |
| Whether tortious interference claim survives despite defamation dismissal | Smith: interference based on same Vector One listing caused him to lose employment; four-year statute applies | Natl. W. Life: the interference claim is based on same publication as defamation and is therefore subject to the same one-year bar; alternatively, listing was privileged and truthful | Dismissed — because both claims arise from the same tortious act, the one-year defamation limitation controls; summary judgment also proper on merit (privilege/truth) |
| Whether listing to Vector One was improper or unprivileged | Smith: bankruptcy discharge and later third-party payment made the Vector One listing false and improper | Natl. W. Life: bankruptcy discharge changes debtor’s personal liability but does not extinguish the underlying debt; reporting reflected that Smith failed to satisfy his guaranty | Held for defendant — reporting was not improper; Smith’s bankruptcy shows he did not personally satisfy the debt and the listing truthfully reflected that fact |
| Whether Smith raised new argument on appeal about continuing publication | Smith: continuing publication restarts limitations period (raised on appeal) | Natl. W. Life: argument waived because raised first on appeal; Ohio does not follow continuing-publication rule | Held for defendant — appellate waiver; Ohio applies first-publication rule for limitations |
Key Cases Cited
- Doe v. Archdiocese of Cincinnati, 109 Ohio St.3d 491 (2006) (standards for dismissal under Civ.R. 12(B)(6))
- Ohio Bur. of Workers’ Comp. v. McKinley, 130 Ohio St.3d 156 (2011) (complaint may be dismissed when it is conclusively time-barred on its face)
- Rush v. Maple Hts., 167 Ohio St. 221 (1958) (single wrongful act giving rise to one cause of action despite multiple injuries)
- Peterson v. Teodosio, 34 Ohio St.2d 161 (1973) (governing which statute of limitations applies by ground and nature of action)
- FB Acquisition Prop. I, L.L.C. v. Gentry, 807 F.3d 1222 (10th Cir.) (bankruptcy discharge changes debtor’s liability but does not extinguish underlying debt)
- Nath v. Texas Children’s Hosp., 446 S.W.3d 355 (Tex. 2014) (tortious-interference claim based solely on defamatory statements is subject to defamation limitations)