JOHN J. CONNELL v. A. C. L. HAASE & SONS FISH COMPANY, Appellant
SUPREME COURT OF MISSOURI
December 31, 1923
302 Mo. 48
Division One
For the error, however, heretofore pointed out, the judgment below is reversed and the cause is remanded for trial according to the views herein expressed. Lindsay, C., concurs.
PER CURIAM:—The foregoing opinion by SMALL, C., is adopted as the opinion of the court. All the judges concur; James T. Blair, J., in result.
JOHN J. CONNELL v. A. C. L. HAASE & SONS FISH COMPANY, Appellant.
Division One, December 31, 1923.
- LIBEL: Pleading: Charging Crime. In stating a cause of action for libel, it is not necessary that the words used in the publication, in order to be libelous per se, contain all the elements necessary to constitute a crime, or that they would meet the requirements of an indictment or information; they are to be taken in their plain and ordinary meaning, as ordinary persons would naturally understand them upon reading them.
- ——: ——: ——: ——: Fake Entry in Book: False Report to Bank: Inducement: Innuendo: Pointing Out Plaintiff. The petition charged that defendant maliciously wrote a letter to Mattlage containing these false charges: “Referring to Item No. 3 on page 8, this charge $860 was an intentional fake entry of 100 cases of salmon, put in merely to swell the profit account, and the stock taken April 29, 1916, was inflated to an amount exceeding $10,000. In addition to this, a false report was made to the Mechanics-American Bank, and the amount $15,000 was borrowed on this false report. The bank still holds the papers and is ready to show the statement if desired.” Held, that the words are libelous per se, and the petition needed no inducement setting forth the relation which plaintiff bore to the acts mentioned, but (the innuendo stating that the words were used of and concerning plaintiff) stated a cause of
action. The natural and ordinary conclusion to be drawn from the words is dishonesty, deception, the borrowing of money on a false report, and they fairly import to some person the commission of a felony, the crime defined in Section 3367, Revised Statutes 1919. - ——: ——: ——: ——: Application to Plaintiff: Inducement: Innuendo. If the published words, in their ordinary meaning, import an indictable offense to some one, they need not, in order to constitute libel per se, designate the person to whom they refer; nor is it necessary that the petition state extrinsic facts showing the application of the defamatory matter to plaintiff, but it is sufficient to state, generally, that such words were published concerning him.
- ——: ——: ——: ——: Acting Individually or for Company. Where the written words import that some person committed a crime by borrowing money from a bank upon a fake book entry and a false report, it is immaterial, in a libel suit based upon the words, whether such person acted for himself or for a corporation or firm, for under the statute (Sec. 3367, R. S. 1919) it was equally a crime whether the acts mentioned in the writing were performed in his own behalf or the company‘s.
- ——: Liability of Corporation: Acts of Agent: To Suppress Competition: Sufficient Evidence. The test of the liability of a corporation for libel is whether the libelous words were written and published by its agent while acting within the scope of his employment and in the actual performance of the duties of his principal touching the matter in question. And where the plaintiff had been in the active management of a fish company which was a subsidiary, and in no sense a rival, of the defendant corporation, and when his connection therewith ceased undertook to organize an independent company, and was endeavoring to get one Mattlage of New York to furnish the money for the new corporation, and thereupon the president and manager of the defendant corporation wrote Mattlage that “there is a rumor that you intend backing a certain man who was formerly engaged in the wholesale business here” and that it had occurred to him that “it would be a good thing for you to see a report made” by expert accountants “showing the conditions that prevailed and a number of transactions that occurred while the person in question was in charge” of said subsidiary company, whose stock was owned by the writer and the defendant company; and said Mattlage having expressed a desire to see the report, the defendant company‘s said president and general manager sent it to him, and wrote a letter in which he stated: “Referring to Item No. 3 on page 8, this charge, $860, was an in-
tentional fake entry of 100 cases of salmon, put in merely to swell the profit account” and that “in addition to this, a false report was made to the Mechanics-American Bank, and the amount $15,000 was borrowed on this false report;” and the evidence tends to show that the writer of this alleged libel was carrying out a definite purpose long held by the defendant corporation, which had long been in the fish business, to prevent the entry of other persons or corporations into the same line of business and the cutting of prices, and that his purpose in writing the letter was to prevent Mattlage from establishing a competing corporation and the plaintiff from engaging in such enterprise, the court cannot rule as a matter of law that there was no evidence tending to show that the writer was not in the actual performance of a duty required of him by the defendant corporation, as its agent, but the question was one for the jury. - ——: Justification: False Reports: Proof That Plaintiff Made Them. In a libel suit based on a written charge that plaintiff had made a “fake entry” on the books of a corporation “merely to swell” its profit account and had made a “false report” to a bank and borrowed $15,000 “on this false report,” a plea of justification is not established by unquestioned proof that the entry, report and statements to the bank were incorrect and false; it must also be proved that plaintiff made them; and where there is substantial evidence that plaintiff made them, and equally substantial evidence that they were made by the company‘s secretary, independently of plaintiff‘s control, the question is one for the jury to determine, and its verdict for plaintiff will not be disturbed on the assigned ground that the plea of justification was established by the evidence.
- ——: Instruction: Broader Than Petition: Understanding of Reader. Where defendant by its answer put an interpretation on the libelous words alleged in the petition, and put upon them the same interpretation placed thereon by plaintiff in his petition, and thereby excluded every other interpretation inconsistent therewith, he is in no position to complain that an instruction which adopts such interpretation is broader than the petition, or to complain that such instruction did not require a finding that the reader of the libelous words understood them in the sense alleged.
- ——: ——: Probably. The word “probably” used in an instruction telling the jury that if they find for plaintiff in the libel suit they will return a verdict for “such sum as they believe from the evidence will be fair compensation for the injury, if any, naturally and probably done to plaintiff by such publication” means “reasonably,” and is not error.
——: ——: Reference to Plaintiff. Where defendant by its answer averred that the libelous words “referred” to plaintiff, it cannot complain that the instruction authorized a verdict upon a finding that the words “referred” to plaintiff. - ——: ——: Reliance Upon False Statement: Intent and Purpose. Words of an instruction requiring the jury to find that the false statement was made “for the purpose of procuring a loan” are equivalent to a requirement that the statement was made “with intent that it be relied upon.”
- ——: ——: Consistent With Innuendo. An instruction dealing with the effect of the alleged libel upon plaintiff—to provoke him to wrath, expose him to the loss of public confidence and the like—and embodying the statutory definition of libel, and requiring a finding that the letter containing the libelous words was published and that its tendency and effect were such as is defined in the statute, sufficiently limits plaintiff‘s right to recover upon proof and a finding that the words had the meaning placed upon them by the innuendo, which charged that they were published concerning plaintiff.
- ——: ——: Omission of Justification. An instruction properly instructing the jury as to its function in determining, as to law and fact, the issue of libel or no libel, and then adding that, if they find the issue of libel in favor of plaintiff, the defense issues pertaining to plaintiff‘s damages are to be considered and decided in obedience to other instructions pertaining to damages, does not omit the defense of justification, where the issue of justification is submitted under a separate instruction.
- ——: ——: Publication: Assumption of Fact. An instruction telling the jury that “the law presumes that the defendant intended the natural consequences of its acts, and if you find from the evidence that the natural consequences of the publication complained of was to defame and injure plaintiff in his reputation and character or expose him to ridicule or contempt, you may properly infer that such was the intention of defendant, and if you further find and believe from the evidence that the publication complained of was libelous and false you may also infer that it was maliciously made,” was erroneous in carrying throughout the assumption that the defendant published the alleged libel, and was error in a case in which the publication was an essential and hotly-contested issue.
- ——: ——: Damages: According to Defendant‘s Wealth: No Special Damages Pleaded: Inconsistent With Direction for Actual Damages. The instruction told the jury that, if they found for plaintiff, “then in assessing his damages they may take into
consideration the circumstances of defendant as to wealth and possession of property, so far as these appear from the evidence, and they may render a verdict for such sum as, from the evidence, they think plaintiff ought to receive and the defendant ought to pay, under all the circumstances of the case.” The petition did not allege special damages, but asked for $25,000 general damages and the same amount as punitive damages, and the jury returned a verdict for general damages only, in the sum of $18,000. Held, that the instruction, after permitting the jury to consider the wealth of defendant, authorized them to return a verdict for such sum as they thought the plaintiff ought to receive and the defendant ought to pay and applied this broad warrant of authority to the issues both of actual general and exemplary damages, and on the issue of exemplary damages was inconsistent with other instructions given on the issue of actual damages which limited the jury to “a fair compensation for the injury, if any, naturally and probably done to the plaintiff by said publication,” and was error. - ——: ——: Justification: Truth of Charge: Confined to Plaintiff Alone. Defendant offered an instruction telling the jury that the truth of the matter published forms a complete defense, and that, although they may find that defendant published the letter maliciously, yet, if they believed from the evidence that the statements in the letter (which charged a “certain man” with making “an intentional fake entry” in a company‘s book “to swell the profit account” and with having made “a false report” to a bank on which he borrowed $15,000) were true, their verdict must be for defendant; to which the court added the words, “provided you believe from the evidence that plaintiff was the person meant in the letter above referred to.” The fake entry and false statements to the bank were made, but there was substantial evidence that they were made by the company‘s secretary, and not by plaintiff, and there was no evidence that the statements in the letter “referred to” any one else than plaintiff. Held, that the modification of the instruction by the court was proper, since it was the duty of defendant to prove, according to its pleaded defense, that plaintiff made the fake entry and false report.
- ——: ——: Agent‘s Authority: Within Scope of Employment. The instruction offered by defendant corporation required the jury to find that its agent published the libelous letter while acting as its agent “within the scope of his employment and while in the actual performance of some duty or service required by defendant to be performed by said agent so writing and transmitting said letter.” The letter was written by the president and general manager of defendant, for the purpose of forestalling a competi-
tor of defendant. Held, that, under the circumstances of the case, the court did not err in substituting for the words quoted the words, “within the scope of his employment, and while in the actual performance of some service in defendant‘s behalf.” - ——: ——: Singling Out Facts. Instructions which single out certain facts and direct the jury to find for defendant if they find them to be true, thereby omitting other important issues of the case and any direction to consider the evidence tending to sustain them, are properly refused.
- ——: ——: Withdrawing Related Charges Severally. Where the different libelous charges are related and cumulative and each adds to the meaning of the others, instructions which single out each charge and seeks to withdraw them as not severally related, should be refused.
- ——: ——: Inconsistent With Defenses. An instruction which is inconsistent with defendant‘s plea of justification and the current of the evidence, is properly refused.
- ——: Evidence: Memorandum of Bank Officer: Hearsay. A letter written by defendant‘s president and general manager, for the purpose of forestalling plaintiff in establishing a corporation to engage in the same line of business in which defendant was engaged, stated that plaintiff, while the general manager of another company, with which he was no longer connected, had made a false report to a bank and had borrowed $15,000 on said false report, and plaintiff bases his suit for libel on those statements, and defendant pleads they were true and made by plaintiff. The statements that had for some years been made to the bank were incorrect and false, but plaintiff claimed they were not made by himself, but by the company‘s secretary, over whom he had no control. At the trial, plaintiff offered in evidence a memorandum, written and signed and delivered to plaintiff, before the report was discovered to be false, by the credit of the bank, in which were set forth representations of said secretary, “cashier and credit man” of said company, including his connection therewith, his knowledge of its affairs, and its assets, sales and financial condition, the purpose of the offer being to show that said secretary was in charge of the finances of the company and was making representations for the purpose of securing credit for it at the bank, and that plaintiff was not. The memorandum was not sworn to, and the “credit man,” who made and signed it, was no longer in the employ of the bank, and was not produced as a witness. Held, that the memorandum was hearsay, and its admission was harmful, in view of the issues, and was error.
——: Abandoned Answers. Abandoned answers are usually admissible in evidence as admissions against interest, and in this case the admission of the answer and three amended answers was not reversible error, although three of them contained no admissions of fact, and although an abandoned pleading is not admissible in every case. - ——: ——: Cross-Examination: Impeachment: Collateral Issue. The plaintiff should not be permitted to cross-examine a witness for defendant on a collateral issue, such as, to inquire of the witness, after he had denied that he had extracted money from the company with which both were formerly connected, concerning various other incidents of a similar nature; but plaintiff is bound by such denial. Nor should plaintiff be permitted to testify himself in contradiction and impeachment of the witness upon the collateral issue.
- ——: Excessive Verdict: $18,000. Plaintiff‘s libel suit is based on a letter written by defendant to a man who was about to aid plaintiff with money to be used in establishing a company to engage in the salt-fish business in St. Louis. The letter charged plaintiff with the commission of a crime while engaged with a company whose stock was owned by defendant and the writer, who was its president and general manager. The words used in the letter were libelous per se, and the purpose of the letter was to prevent plaintiff from organizing a business which would compete with defendant in the same line of business. Plaintiff introduced evidence of a good reputation extending down to the trial. During all his business life he had been engaged in the wholesale salt-fish business, and no other. Knowledge of the contents of the letter appears to have been mainly confined to persons connected with that line of business. Plaintiff alleged no special damages. Held, that a verdict for $18,000 actual damages is larger than ordinary in cases in which no special damage is pleaded, but the judgment is not reversed on that ground alone.
Appeal from St. Louis City Circuit Court.—Hon. Wilson A. Taylor, Judge.
REVERSED AND REMANDED.
Rassieur, Kammerer & Rassieur and Jourdan, Rassieur & Pierce for appellant.
(1) The court erred in refusing to sustain the objection to the introduction of any evidence. (a) No cause of action was stated; the words counted upon are not libelous per se and the petition contains no inducement. Walsh v. Pulitzer, 250 Mo. 142, Ann. Cas. 1914C, 985; Cook v. Pub. Co., 241 Mo. 344; McKim v. Moore, 237 S. W. 773. (b) Where the words are not libelous per se,
Frumberg & Russell, Lyon & Swarts and Thomas J. Hoolan for respondent.
(1) The publication tended to provoke the plaintiff to wrath, exposed him to public hatred, contempt and
LINDSAY, C.—The plaintiff charged the defendant, a corporation, with writing a letter to one Charles Mattlage and making therein false and libelous statements concerning the plaintiff, to his damage. The petition, after allegation as to defendant‘s corporate character, charges:
“That on the 30th day of December, 1916, the defendant maliciously contriving and intending to injure the plaintiff in his business, good name and reputation, did falsely, maliciously and wrongfully write a letter to one Charles H. Mattlage, in which said letter defendant stated of and concerning plaintiff the following false and libelous matter, to-wit:
” ‘Referring to Item No. 3 on page 8, this charge, $860 was an intentional fake entry of 100 cases of salmon, put in merely to swell the profit account, and the stock taken April 29, 1916, was inflated to an amount exceeding $10,000.
” ‘In addition to this, a false report was made to the Mechanics-American Bank, and the amount $15,000 was borrowed on this false report. The bank still holds the papers and is ready to show the statement if desired.’
“That said reference to Item No. 3, page 8, was to a report by Price-Waterhouse & Co., chartered accountants, to the defendant under date of May 25, 1916, of an audit made of the books of Proctor-Connell Fish Company, which said report had been forwarded by said defendant to said Charles H. Mattlage; and plaintiff states that by the use of the words in reference to said item that the same was ‘an intentional entry of 100 cases of salmon, put in merely to swell the profit account,’ defendant intended and meant to charge the plaintiff with having made, or caused or permitted to be made, a false and fictitious entry on the books and records of the said Proctor-Connell Fish Company, and by the use
“Plaintiff further states that by the use of words, ‘In addition to this a false report was made to the Mechanics-American Bank, and the amount of $15,000 was borrowed on this report‘, defendant meant and intended to charge that plaintiff had made a false statement in writing to said Mechanics-American Bank of St. Louis, respecting the financial condition and means and ability to pay of the said corporation, Proctor-Connell Fish Company, for the purpose of procuring a loan from said bank, and that he did by means of said false report obtain for said corporation a loan of $15,000, and by reason thereof was guilty of a felony under the laws of the State of Missouri.”
Plaintiff secured a verdict for general damages only, in the sum of $18,000.
Defendant objected to the introduction of any testimony upon the ground that the petition did not state a cause of action, in that, it did not allege what plaintiff‘s occupation or duties were with reference to the Proctor-Connell Fish Company, nor that by reason of any position or connection with that company the contents of the alleged libel were a reflection upon him; that the alleged statement was not libelous per se, and no special damages were asked. The objection was overruled, and defendant insists here that the petition is insufficient.
Defendant insists that the words are not libelous per se, and that, as the petition contains no inducement, no cause of action is stated; and cites Walsh v. Pulitzer Pub. Co., 250 Mo. 142; Cook v. Pub. Co., 241 Mo. 326; McKim v. Moore, 291 Mo. 697. The contention is that
In this case, in the way of imputing the commission of a crime, the words used in the first sentence serve as inducement to the charge made in the second sentence. In the first sentence it said “this charge, $860, was an
Taking the words used in the first sentence, in their meaning as above outlined, there is enough farther to imply that the acts referred to were done in the prosecution of a business involving the making of book entries, and carrying a stock, about which reports or statements of assets and of profits were made. The words used im-
The inquiry reaches the contention that the words were also not actionable per se, because, they do not within themselves in any way designate the plaintiff, and there is no averment by way of inducement setting forth the relation which the plaintiff bore to the acts mentioned. The acts described in the words written, were inevitably the acts of some person. The acts so attributed were such as constituted a crime by whomsoever committed, whether in his own behalf, or in behalf of another. “To whomsoever they referred, they charged such party with being guilty of a felony, and indictable offense.” [Tilles v. Publishing Co., 241 Mo. 1. c. 632.] In that sense, if false, they were libelous to whomsoever applied. The words describing the crime charged need not within themselves and standing alone, designate the person to whom they refer. Nor, is it necessary that the pleading state “any extrinsic facts, for the purpose of showing the application to the plaintiff of the defamatory matter out of which the cause of action arose, but it shall be sufficient to state, generally, that the same was published or spoken concerning the plaintiff.” [
In Tilles v. Publishing Co., supra, the words published were as follows: “These men, he said, ‘are engaged in the commission of an open felony and the owners of the race track are equally guilty with the bookmakers under the statute. The law must be enforced, and we are going to prosecute everybody who violates it.’
“Meaning thereby that plaintiff and others as the owners of a certain race track, known as the Delmar Race Track, were engaged in the commission of an open felony.”
The objection there to the sufficiency of the petition was: “It contains no introductory averments of any matters of fact showing plaintiff‘s relation to the Delmar Race Track; that is, it contains no allegation
In that case, at page 632, this court after reference to the statute and to the decisions in Curry v. Collins, 37 Mo. 328, and Stieber v. Wensel, 19 Mo. 513, through GRAVES, J., said: “The words charged to have been published in this case are actionable per se. To whomsoever they referred, they charged such party with being guilty of a felony, an indictable offense. Under our statute it was not necessary to aver that the plaintiff was owner or manager of the Delmar Race Track, and thus identify him as the party referred to in the language quoted. It is sufficient to aver that the language published, ‘was published . . . concerning the plaintiff.‘”
In the Tilles Case the crime of felony was imputed, but not to any particular person. The imputation was against anyone in either of two classes of persons, “owners” or “bookmakers.” There was no inducement, or averment of the extrinsic fact that there was a Delmar Race Track, or that Tilles was one of the owners, or was in any way interested therein, but the innuendo explained that the felony was imputed to him as one of the owners of the Delmar Race Track. The general averment that the words were printed and published concerning him was held sufficient. In the case at bar, the words written import the commission of a crime by some person in the manner and means of borrowing a stated sum from a particular bank. Under
What has been said, is after verdict, upon a petition to which no demurrer was filed, but to which defendant filed five answers. The case was tried upon defendant‘s fourth amended answer. The first answer was a general denial.
The amended answers, after a general denial, and a special denial that defendant published the alleged
The next paragraph alleged that about April 29, 1916, the stock of the Proctor-Connell Fish Company was taken for the purpose of showing to the stockholders and others interested, the goods on hand and their value; that under the direction and supervision of plaintiff said inventory and statement of values was falsely inflated in the sum of $10,000, over the actual or fair value, and the charge that the stock taken on said date was inflated in excess of $10,000 was true. The next paragraph alleged that from the year 1910, to June, 1916, and prior to 1910, said Proctor-Connell Fish Company did its banking business with the Mechanics-American National Bank of St. Louis, and it was the custom and requirement of said bank to have said company submit statements of its financial condition, and statements were made, and said bank made loans to said company upon the faith of such statements, and alleged the making of statements annually and the procuring of loans and extensions of loans in the period mentioned, and alleged
The reply denied all new matter set up in the answer.
A brief outline of preceding events, and of the relation to each other of the companies and persons mentioned, is necessary. In the year 1902, and for some years prior thereto, there were in St. Louis, engaged in the wholesale salt-fish business, the Trask Fish Company, and the defendant Haase & Sons Fish Company. The plaintiff had been for a period of years an employee of Trask Fish Company. In 1902 that company went out of business, and upon its cessation, Proctor-Connell Fish Company was incorporated, with a capital stock of $10,000. The plaintiff, and one Proctor, and one other man, all of whom had been employed by the Trask Company, went to work for the new company. In the incorporation of the Proctor-Connell
Edward T. Haase was secretary of the Haase & Sons Fish Company in 1902, and some years later became its president and general manager, and was such until his death on May 13, 1917.
The alleged libel was written about December 30, 1916. There can be no serious doubt from the evidence, and from the nature of the statements made here on appeal, that Proctor-Connell Fish Company was not organized as a rival to Haase & Sons Fish Company, and was in reality a subsidiary to the latter company. They did not compete, or enter the same territory. Plaintiff had charge of the buying and selling for the Proctor-Connell Fish Company. His charge and control beyond that is one of the matters in dispute, as is his responsibility for the alleged false entries and statements. Proctor was president, but worked as a salesman only. At some time about the beginning of the year 1916, Proctor appears to have made demand through an attorney for the privilege of examining the books of Proctor-Connell Fish Company, and Connell at first denied to him access to the books. Immediately after that, and it appears as a result of differences, Edward T. Haase procured Price-Waterhouse & Co., public accountants, to make an examination of the books. This was begun May 16, 1916, and took as a basis, or
After Connell‘s connection with Proctor-Connell Fish Company was severed, he cast about for employment, or more particularly financial backing in the formation of a new company to engage in the wholesale salt-fish business in St. Louis. He entered into negotiation with Charles H. Mattlage of New York, who was interested in that business, with the purpose of engaging Mattlage, and also another man, in the enterprise of incorporating a company to be located in St. Louis, and to enter that business. While this was in progress, and before this enterprise was set on foot, on December 20, 1916, Edward T. Haase wrote to Mattlage. This and all other letters were written upon stationery of the defendant. It is as follows:
“Dear Sir:
“There is a rumor that you intend backing a certain man, who was formerly engaged in the wholesale fish business here.
“It occurs to me that it would be a good thing for you to see a report made by Price-Waterhouse & Co. (expert accountants), showing the conditions that prevailed and a number of transactions that occurred while the person in question was in charge, and am quite sure that if you know the circumstances you would be somewhat cautious and require a bond on any investment you contemplate in this direction. I will candidly say that my action is not prompted entirely out of considera-
tion for you, and that to a certain extent it is due to self-interest, which is no doubt obvious. “If you would like to see this report drop me a line, or wire and will be pleased to accommodate you.”
Mattlage wrote in answer, the following letter, addressed to Haase & Sons Fish Company:
“Yours of the 20th inst. at hand and very much pleased to hear from you, also would like a report from Price-Waterhouse & Company.”
In reply Edward T. Haase wrote to Mattlage as follows:
“Your letter of the 23rd was received and I now enclose the report of Price-Waterhouse & Co. Kindly return at your convenience.
“If the person in question should re-enter the fish business here, it would simply mean a period of price cutting to the advantage of no one.”
Charles H. Mattlage testified that he received the report of Price-Waterhouse & Co. mentioned in the letter. Three days later, another letter was written by Edward T. Haase to Mattlage, and in the second page of this is contained the alleged libel. As has been already stated, Mattlage testified that the first page was lost, that he did not remember the contents of the first page, nor whether it “related to Mr. Connell and his dealings with Proctor-Connell Fish Company.” The second page, containing the alleged libel, in addition to, and following the words set out in the petition, contains the following sentence: “When you get to St. Louis, call and will give you all the facts personally.”
On January 4, 1917, a letter was written by Mattlage & Sons addressed to “A. C. L. Haase & Sons Co.,” saying: “Your letters of the 27th and 30th ulto at hand with report from Price-Waterhouse & Company which we have examined.”
After that, on January 11, 1917, Mattlage & Sons wrote a letter addressed to “E. T. Haase, care A. C. L. Haase & Sons Co.,” in which they said: “Your several letters have influenced us more or less in not going into
On January 13, 1917, Edward T. Haase wrote to Mattlage, in acknowledgment of the foregoing, the following:
“Your letter of the 11th received and as requested will be considered strictly confidential.
“It seems that the person in question, in some manner learned that I had written you on the subject, as I heard from a friend of mine that he had shown a copy of my letter to several persons here in the city. Kindly advise me on the subject so that I will know conditions. I feel perfectly justified in what I have done in this matter, but naturally would like to know the exact situation.”
Pending the negotiation between Connell and Mattlage, the latter came to St. Louis to confer with Connell. At this time an attorney was engaged to prepare papers for incorporating the new company, to be known as “J. F. Connell Fish Company.” Upon the day he received the first communication from Haase, Mattlage also, on that day, December 23, 1916, wrote to this attorney, Montague Lyon, the following:
“Enclosed please find letter from A. C. L. Haase & Sons Fish Company, and apparently he is much disturbed in what we intend doing. However, we have answered his letter and asked him for that report, although we have seen one.
“We know what arrangements we have made, and as we have put Mr. Connell under bond, things no doubt will come through in the proper manner.”
Mattlage appears to have followed this up by advising Lyon, or sending to him the other communication concerning the matter. Lyon was attorney for Connell and also looking after the interests of Mattlage. Mattlage abandoned his purpose, and the project went no further than some arrangement made for a building
A great mass of evidence, oral and documentary, was introduced concerning the entry of the item of $860, the transactions with the bank, the annual statements, the manner of keeping the books and the control of the business of Proctor-Connell Fish Company. The phases of this evidence must be considered in connection with the errors assigned, of which there are many.
There was a demurrer offered at the close of the case, and it is insisted that the court should have directed a verdict for the defendant. Under this contention it is urged that the defendant did not publish the letter complained of; that there is no evidence showing or tending to show that at the time Haase wrote the letter he was in the actual performance of any duty required of him by defendant. The decisions in Fensky v. Casualty Co., 264 Mo. 154; Washington Gas Light Co. v. Lansden, 172 U.S. 534; Southern Express Co. v. Fitzner, 59 Miss. 581, and Buckeye Cotton Oil Co. v. Sloan, 250 Fed. 712, are cited. An approved rule applicable to corporations in cases of this kind is stated in 5 Fletcher, Cyclopedia of Corporations, page 5243: “The test (of liability) is whether the slanderous words were spoken by the agent of the company while acting within the scope of his employment and in the actual performance of the duties of his principal touching the matter in question.” In this case the evidence tends to show that Edward T. Haase in writing the alleged libel and the letters which preceded and followed it, was carrying out a definite purpose long held by the defendant corporation. The A. C. L. Haase & Sons Fish Company had been and was largely a family concern. The policy was to prevent, as far as possible,
It is said that the statements set forth in the letter are true, and therefore it was the duty of the court to direct a verdict for defendant. Phillips v. Pub. Co., 238 S. W. 127, is cited. In that case the plaintiff admitted that he had been employed by one or more insurance companies. That fact, stated or suggested in the alleged libelous publication, was the essential or determinative fact in testing the question of the truthfulness of the statement, which as a whole, was alleged to be libelous, and in that case there was a verdict for the defendant. In the case at bar there is no room for serious doubt that the entry of $860 for 100 cases of salmon was an improper entry. There is no room for doubt that statements were made to the bank which were
“The evidence of the expert accountants is negligible, although more than voluminous, because there is no doubt but that the books were crookedly kept, and that crooked and false statements were made to the bank.”
The plaintiff in his printed argument further states:
“The real question in the evidence in this case, and it is the only question, is not so much whether crooked things were done, as it is whether Connell or Ellis did them.”
The defendant admits there is dispute as to whether Connell had knowledge of the falsity of the entry of $860, but urges that Connell had charge of the selling, and the entry was carried on the books for four years and that Connell was in general charge. On this, and other matters, plaintiff endeavored to fix responsibility upon Ellis, as having kept the books, made up statements and having charge of the financial affairs, and defendant sought to put the responsibility upon Connell as being the person in general charge of the business, and having, as treasurer, signed the notes given to the bank, signed the earlier statements made to the bank, and done other things characteristic of management. Ellis went to work for the company in 1906. He succeeded a man named Bender, who had kept the books of the company for several years. Bender, had been employed for that place by Edward T. Haase. When Bender left he recommended Ellis. Ellis says he was engaged by Connell. Connell denies this. Two or three years before the alleged libel was written Ellis became secretary. He says Connell, and not the board of directors, made him secretary. The statement made to the
The testimony is that Connell did the buying and the selling, and had charge of the salesmen on the road and in the city. He priced the stock for the inventory taken in April, 1916, but testifies that he had nothing to do with taking the stock; that the list was furnished to him some days later, and he fixed the prices, or values. He testifies that the stock was taken or listed by a man brought over from the Haase Company. He testifies his pricing then done took into account rise in prices incident to the war in Europe. Ellis testifies that in preceding years Connell had withheld invoices of goods purchased, so that the items were not on the books at the time of making inventories and statements; that thereby, while the goods themselves were included in the inventory, the cost price charged did not appear against the company, on the books, or in the statements made. Connell testifies that his attention was called to the fact that Ellis in handling the funds of the company had with-
Edward T. Haase in his communications to Mattlage, so far as the record discloses, did not name any person, but he pointed out Connell by reference as the subject of his communication. He used an impersonal form of expression in connection with the things charged as done. They were done while the person referred to was in charge of the business. The reference to the person in charge was to Connell, and no other. The letters so show. The evidence otherwise shows this, because Connell had been discharged, but Ellis had been retained after the audit of Price-Waterhouse & Co. was made; and had charge of the “Proctor-Connell Branch” of the Haase Company at the time of the trial. The language used would not ordinarily be understood as imputing mere irregularities, or negligence on the part of the person in charge, but rather fraud, and false representations. The justification then involved not only a showing that the improper acts were committed (and the evidence shows this), but also that they were done, or caused to be done, by Connell or under his direction while he was in charge of the business to which the acts pertained. On the other hand the effort of plaintiff was to show that these things were done by Ellis. Thus, Ellis testified that in May, 1912, Connell gave him a slip containing the item of 100 cases of salmon as sold to the Union Pacific, and told him to enter and “run it through the
Defendant insists there was no evidence that Mattlage or anyone understood the letter charged the
Defendant complains of instructions numbered 1 and 2 given for plaintiff, and assigns the same reasons against each of them. Instruction 1 is as follows:
“The court instructs the jury that if they believe from the evidence that on the 30th day of December, 1916, the defendant published of and concerning plaintiff the letter to Charles H. Mattlage, as stated in plaintiff‘s petition, and as introduced in evidence, and that in said letter the following was contained:
“‘In addition to this, a false report was made to the Mechanics-American Bank, and the amount, $15,000,
was borrowed on this false report. The bank still holds the papers and is ready to show the statement if desired;’ “And if the jury further find from the evidence that said quotation from said letter is libelous and false, and referred to plaintiff, then the jury shall return a verdict herein for the plaintiff in such sum as they believe from the evidence and under the instruction will be fair compensation for the injury, if any, naturally and probably done to the plaintiff by said publication.”
Instruction 2 in the same terms sets forth the second sentence of the alleged libel.
The first objection is that the excerpts from the letter are not libelous per se. This contention has been considered.
It is next urged that the instruction authorized a verdict without a finding of facts which would give the words an actionable meaning; that it is broader than the pleadings, and that it authorized a recovery without requiring a finding that the reader of the letter understood that defendant had charged plaintiff, himself, with having done any of the reprehensible things therein mentioned. The rulings in Harriman v. Sayman, 193 S. W. 1001; State ex rel. Harriman v. Reynolds, 200 S. W. 296; Callahan v. Ingram, 122 Mo. 355; Byrne v. News Corp., 195 Mo. App. 265; Lemaster v. Ellis, 173 Mo. App. 332, and Caruth v. Richeson, 96 Mo. 186, are cited.
The defendant by its amended answer broadened the issue tendered by the petition. The defendant, averring that the entry was false and fictitious, and the stock taken inflated beyond its actual or fair value, alleged that the false and fictitious entries, and the false weights, quantities, and values, were made or reported by the plaintiff himself, or were made under and by his direction.
Defendant, averring that the statements made to the bank were false, alleges that they were made by plaintiff himself, or by his direction, he knowing them to be false.
It is also urged that the instruction authorized a verdict upon a mere finding that the words quoted “referred” to plaintiff. The language of the instruction well might have been more definite; but, defendant by its pleading “referred” the words to plaintiff, asserting their truthfulness in their sense of imputing wrongdoing, directly, or through another, and not mere negligence; and the instruction required a finding that the words were false and libelous. This assignment is ruled against the defendant.
Complaint is made of Instruction 4, of which it is said, it contained no requirement that the jury find that defendant intended to charge that plaintiff had “knowingly made or caused to be made, etc., with intent that it be relied upon,” “any false statement in writing.” The instruction is not subject to this objection. It contains an equivalent requirement. It contains the requirement that the jury find that defendant intended to charge
Complaint is lodged against Instruction 5 in that it did not limit “plaintiff‘s right to recover upon proof and a finding that the words had the meaning which was placed thereon by the innuendo in the petition.” Harriman v. Sayman, 193 S. W. 1001, and 200 S. W. 296, and Callahan v. Ingram, 122 Mo. 355, are cited. Those cases are not applicable to the point raised upon this instruction. The instruction dealt with the effect of the alleged libel upon plaintiff—to provoke him to wrath, expose him to loss of public confidence, and the like. It embodied the statutory definition of libel, and required a finding that the letter was published, and that its tendency or effect was such as is defined by the statute as a basis of right of action. It did not deal primarily with the question of the meaning of the words used, but with their tendency or effect upon the plaintiff. The instruction was not, as to the meaning of the letter, inconsistent with the meaning placed by the innuendo, as in the cases cited.
Complaint is made of Instruction 6. It is said that it limits the jury to a consideration of whether the letter sued upon was libelous and if libelous the amount of plaintiff‘s damages, and that it leaves out of consideration the defense of justification. The issue of justification was submitted under a separate instruction. Instruction 6 properly instructed the jury as to its function in determining as of law and fact, the issue of libel or no libel, and then, that if the jury found the issue of libel in favor of plaintiff the defense issues pertaining to plaintiff‘s damages were to be
Complaint is made of Instruction 8. It is as follows:
“The court instructs the jury that the law presumes that the defendant intended the natural consequences of its acts and if the jury find from the evidence that the natural consequences of the publication complained of was to defame and injure plaintiff in his reputation and character or expose him to ridicule or contempt, the jury may properly infer that such was the intention of the defendant and if you further find and believe from the evidence that the publication complained of was libelous and false, you may also infer that it was maliciously made.”
This instruction is subject to objection. The question whether the defendant corporation published the writing was a vital question. The instruction is based upon an assumption that the defendant published the alleged libel. That was an essential issue all through the case, and the instruction as given was erroneous in carrying all through it, that assumption.
Complaint is made of Instruction 10, which is as follows:
“The court instructs the jury that if they find their verdict herein for the plaintiff, then in assessing his damages, they may take into consideration the circumstances of the defendant as to wealth and possession of property, so far as these appear from the evidence, and they may render a verdict for such sum as, from the evidence, they think the plaintiff ought to receive and the defendant ought to pay, under all the circumstances of the case.”
It is to be observed that plaintiff did not plead special damages. He asked for $25,000 general damages sustained, and for the same amount as punitive damages. The instruction, after permitting considera-
Defendant also complains of Instruction 18, as modified by the court. As that instruction was offered by defendant it told the jury that the truth of the matter published forms a complete defense, and that though they found defendant published the letter maliciously for the purpose of keeping a competitor out of business, yet if they believed from the evidence that the statements in the letter were true, their verdict must be for defendant. To this, the court added the words, “provided you believe from the evidence that plaintiff was the person meant and spoken of in the letter and the portions of the letter above referred to.” Defendant objects to the modification, urging that it “deprived defendant of the defense of the truth if the letter referred to somebody else and not to the plaintiff.” But, defendant pleaded the truthfulness of the statements as applied to plaintiff, and to no other person. There was no evidence that the statements in the letter “referred to” anyone else than the plaintiff. There is no claim by defendant that they referred to Ellis. Defendant endeavored to justify by trying to show that plaintiff was the party guilty of doing the things mentioned. Plaintiff sought to show the falsity of the statement by showing that it was Ellis, and not plaintiff, who was the guilty party. The objection loses sight of the distinction between the question of falsity of the charge as to what was done, and the falsity of the charge as to the person
Defendant also complains of Instruction 22 wherein the court modified an instruction as offered by defendant. The instruction as offered by the defendant advised the jury in effect that before the defendant could be found liable the jury must find that defendant‘s agent published the letter while he was acting as its agent “within the scope of his employment and while in the actual performance of some duty or service required by the defendant to be performed by said agent so writing and transmitting said letter.” For the words in the quotation, the court substituted the words, “within the scope of his employment, and while in the actual performance of some service in defendant‘s behalf.” The argument is, that the principal has the right to fix the agent‘s authority; that he may not be forced to have one as an agent and be bound by his acts merely because the agent‘s act will be of service to him. And it is said: “It was a service or of some service and benefit to this defendant to forestall a competitor, but that does not make Haase its agent.”
In Fensky v. Casualty Co., 264 Mo. l. c. 167, the grounds of liability are stated as follows: “The things to be looked to are, (1) was the person an authorized agent of the corporation? and (2) if so, was he acting within the scope of his employment, when he used the slanderous language? and (3) was such language used in the actual performance of his duties, and touching the matter in question? If so, then the corporation is liable, whether such authorized agent be high or low in class (so he was duly authorized and was acting within the scope of his authority) and is liable, to again quote from Judge
The defendant complains of the refusal of the court to give its requested Instructions A, B and C. Instruction A told the jury that if it found certain facts concerning the transaction with the bank, as, that if false statements were made, and the money was borrowed upon the faith of the statements, the plaintiff was not entitled to recover. The instruction was properly refused, because it singled out the acts imputed, but left out of consideration the question that the doing of the acts was imputed to plaintiff or to any person. Instructions B and C respectively referred in the same manner to the book entry concerning the 100 cases of jack salmon and the inflation of the stock to an amount exceeding $10,000, and were properly refused.
Defendant also offered its Instruction F, which told the jury that if they found it was no part of the duty of Edward T. Haase as president and general manager of defendant company to write letters to any person concerning
Instructions H, I and J were refused. Each of these singled out a portion of the alleged libelous letter (“H” singled out the portion as to the salmon item) and sought to withdraw these portions as not severally being actionable charges. These were properly refused, because the charges were related, and were cumulative. Each added meaning to the others.
Defendant also urges as error the refusal of Instruction L. This instruction told the jury that if the statements of acts made in the letter were true, then, even though the jury might find plaintiff had no knowledge of them and they were done by another, this sufficiently established the truth of the matters stated, if “Haase only intended to charge that the irregularities mentioned happened while plaintiff was in charge of the business of Proctor-Connell Fish Company.” This instruction is not consistent in character with defendant‘s plea of justification, nor with the theory and current of the evidence offered. The acts charged in the letter are of a character more grave than mere irregularities, and the answer charges knowledge on the part of plaintiff, and the case was tried on that theory.
Some errors assigned upon the admission of evidence remain. Over the objection of defendant the court permitted plaintiff to read to the jury a signed but unsworn statement or memorandum, made by Switzler, dated September 28, 1912. On the date mentioned, Switzler was credit man for the Mechanics-American National Bank. This memorandum purports to give a statement of representations made to Switzler by “Mr. Ellis, cashier and credit
Error is assigned in that the court permitted the four answers of defendant, previously filed, to be introduced in evidence. The answer was a general denial. The second and third amended answers were substantially of the character of the fourth amended answer, though not so extensive. The first amended answer, after a general denial, pleaded that if defendant‘s agent wrote the letter, the matters and things complained of were true, and further that if said letter was so written, it was written in good faith, without malice, “and under an honest sense of duty and desire to fulfil a moral and social duty in a matter in which defendant and the party written to, as merchants, were interested,” and “in the interest of society.” As a general rule this court has held that the admission in evidence of the abandoned pleadings of a party was not error. [Dowzelot v. Rawlings, 58 Mo. 75; Anderson v. McPike, 86 Mo. 293.] This, generally, upon the theory that the pleading contained some admission of fact against interest. But, this has not been so in every case. [Walser v. Wear, 141 Mo. 443.] The answer, and second and third amended answers contain no admissions of fact. The first amended answer varies
Defendant complains that the court permitted plaintiff, on cross-examination, to ask Ellis if he did not at various times take funds, money of the Proctor-Connell Fish Company without the knowledge or consent of its officers, and upon his denial that he had done so, permitted plaintiff to inquire as to various incidents of that nature, and permitted plaintiff himself to testify in contradiction and impeachment of Ellis upon that point. The question was a collateral one, and not material to the issues, and plaintiff should therefore have been bound by the answer made. However, Connell, in his counter-testimony, went no small way toward placing himself in dealing with Ellis, as to charges of moneys abstracted, in the position of a person in charge of the affairs of the company. He testified that on one occasion he said to Ellis: “Well, this is the second time and I don‘t see that we can longer keep you here;” and further, that he told Ellis he would report his conduct to the Haase & Sons Fish Co., and that he did report it.
There are errors assigned upon the grounds of misconduct of counsel for plaintiff, in the character of statements made in opening the case, and in the manner of examining witnesses, and in making statements in argument to the jury not supported by any evidence. Some of these are not without merit, but this opinion has already reached too great length to justify taking them up in detail. They can be regulated upon re-trial.
The defendant also insists that the verdict is excessive, and is the result of passion and prejudice on the
The judgment should be reversed, and the cause remanded. Small, C., concurs.
PER CURIAM:—The foregoing opinion of LINDSAY, C., is hereby adopted as the opinion of the court. All of the judges concur.
