60 A.D.2d 877 | N.Y. App. Div. | 1978
In an action to recover damages for libel and slander, defendant Rothstein appeals from so much of an order of the Supreme Court, Nassau County, dated June 23, 1977, as, in granting in part his motion for summary judgment, denied the motion as to part of the second cause of action. Order reversed insofar as appealed from, on the law, with $50 costs and disbursements, and defendant Rothstein’s motion for summary judgment is granted in its entirety. The appellant, Theodore Rothstein, an attorney, was employed by the defendant Granite Equipment Leasing Corp. until February, 1973. Plaintiff Al Brennan had been employed as a repossessor by Silverman Associates, which did auction and repossession work for Granite. Brennan, whose duties included accounting for the proceeds of auctioned equipment, was well known to Granite and Rothstein. At a certain point in time Granite became concerned that all of the funds due it were not being remitted by Silverman. Rothstein, and others employed by Granite, made inquiries with respect to this problem. Many of those inquiries were directed to Brennan. Granite brought an action for .conversion against Silverman, Brennan and others in January, 1973. Judgment was recovered against Silverman and its president, but the suit was discontinued as to Brennan. In September, 1972 Brennan formed the A. C. Brennan Co., Inc., which sought to establish itself in the repossession and auction business. In February, 1973, when Rothstein terminated his employment with Granite, he became house counsel to Citicorp Leasing. In May, 1973 Brennan sought to be chosen by Citicorp as a repossessor and auctioneer on a particular matter. Brennan was interviewed by the president of Citicorp, and described his prior association with Silverman. He related how Silverman had developed a poor reputation in the industry. When Rothstein discovered that Citicorp might employ Brennan’s services, he allegedly told the company’s president that Brennan was "untrustworthy”, and should not be engaged. In June, 1973 Rothstein, as a representative of Citicorp, attended several meetings of the secured creditors of a certain securities firm. At one of the meetings it was decided that an auctioneer should be selected to conduct a public auction of the firm’s inventory. One of the other creditors at the meeting suggested Brennan. Rothstein objected and allegedly expressed the view that Brennan was untrustworthy or dishonest. On April 1, 1974 the plaintiff commenced this action against Granite and Rothstein to recover damages for libel and slander. The complaint alleges that the statements of May and June, 1973,