The American District Telegraph Company, an Alabama Corporation v. Brink's Incorporated, a Delaware Corporation

designation of scription false “a commerce, entering goods origin” on (1946), 15 U.S.C. § Stat. Act, Stamping 34 Stat.

the Gold amended, 294- 15 U.S.C. §§ also contends that

300. Plaintiff injunction appellant,

limitation of the upon court’s doubt that district

based juris- appellant conferred service Oregon partnership, was diction over the error; but, took cross- point.

appeal, consider this we cannot trial this action

We add that expedited upon

on the merits should party.

application of either

Affirmed. DISTRICT TELE AMERICAN COMPANY, an Alabama cor GRAPH poration, al., Plaintiffs-Appellants, et INCORPORATED, a Delaware

BRINK’S Defendant-Appellee. corporation,

No. 15849. Appeals

United Court States Seventh Circuit.

8,May

Rehearing 21, 1964, Denied June

en banc. Roger Barrett, Stern, Robert L. W. Chicago, Ill., Guthman, appel

Jack Friedlich, Spiess, Tierney, Mayer, lants. Chicago, Ill., Platt, of counsel. Brown Ashenden, Jr., James F. Robert Hanley, Foster, Robert Robert S. S. Rob- in, Dobler, O’Keefe, O’Brien, Substantially theory of John I of count Hanson, Hartenfeld, complaint & Ashenden A. ADT’s is that the words of the Feldman, Lange, by Brink’s, “although (cid:127)Daniel David L. abso- Isham, Beale, Chicago, Ill., lutely privileged part judicial for pro- Lincoln as of a appellee. ceeding they appeared in when lost all claim of when press HASTINGS, Judge, Before and Chief published part as SWYGERT, and SCHNACKENBERG release”. ADT in its brief substantially forth sets Judges. Circuit alleges that count II portions release which Judge. “the SCHNACKENBERG, Circuit in such described lawsuit so Telegraph The American District way substantially misrepresent a Company, corporation, an Alabama and charges the nature of the made”. ad- (severally corporations in- such 47 other dition, complaint that “all corporated similar names under the by done Brink’s with actual Union), other laws 47 states malice, spite and ill will toward ADT and plaintiffs, appealed from an order have dishonesty impute with the intent to and sustaining court, a motion district damage practices” dishonorable and it summary judgment by Brink’s, made reputation. its Incorporated, corporation, de- Delaware un- 2. Plaintiffs’ counsel admit that fendant, dismissing plaintiffs’ and com- qualified privi- law is a der Illinois plaint. report judicial proceedings. But ju- This a libel action in 1. which they rely 1884, on a decided in Cow- case diversity of citizen- risdiction is based ship. 392, 395, ley Pulsifer, Mass. which 137 Illinois law controls here. spoke of (a group related, Plaintiffs affili- “ ** * plain distinction be- subsidiary companies ated or ing constitut- court, place open takes tween what generally enterprise the business done out of court and that which is by charge public “ADT”) known exactly, alone, party or more one having maliciously pub- Brink’s with already said, the contents as we have defamatory statements lished false concerning paper him in the clerk's of a affecting ADT and ADT office. its dismiss business. Brink’s moved to they point out that some courts complaint or in the alternative 1927, However, Cowley. followed summary judgment, contending state of New York final of review court qualifiedly privi- the statements were York rejected Cowley v. New leged judicial proceeding, as a of a 320, Evening Post, N.E. 157 245 N.Y. accurately reported that those statements 155-156, 153, A.L.R. 1432. Similar 52 judicial proceeding, states, rulings made showing have been had not facts including Illinois. part malice on the of Brink’s. Inc., 34 Brink’s claims that the here v. Peoria statements 746, 112, 114, 746- 214 N.E.2d involved were contained re- Ill.2d (1966). Enter prepared Field it Lorillard v. lease and distributed 73-74, 65, prises, number news media Ly 1965).1 (1st publicizing 1, Dist. lawsuit 213 N.E.2d 208, brought against Co., it The release 179 S.C. ADT. brand v. State (1936). purported 580, 584, (1) 104 A.L.R. 1118 to describe Brink’s lawsuit S.E. Bratcher, allegations (2) quoted Newspapers, Inc. v. certain Paducah 178, Ky. 220, 179-180 S.W.2d Lorillard, 5, con- as fair comment at have been ”* * * judicial cerning proceeding. court said: “ * * * If suit had been filed concerning these facts 115-116, at 748 Uni Ill.2d at Langford (1938). Vanderbilt court said: versity, 287 S.W.2d Tenn. “ * * * Jour Mansfield Torski proving ac- The burden App. N.E.2d always upon plain- nal 100 Ohio malice is tual ap Ct.App.1956), (Ohio ordinary 683-684 tiff, not be the and would 245, 135 dismissed, peal Ohio St. establish could case where (1956). N.E.2d 63 report or discussion a news that only pub- governmental was activities are: effect to the same Other cases ** malice. of actual lished because Association, Press Wilson United v. Although that contends Ill.App. 238, N.E.2d guilty here was of actual defendant the malice, plaintiff Lindsay-Schaub (1951); Segall v. any not offer evi- Newspapers, remotely creating an issue of dence (1966); Watson 215 N.E.2d 295 whether defendant’s news fact as to Ill.App. Herald-Despatch Co., 221 inspired solely was conceived article Zjed (1921); Kantor v. Dziennik design injure of malicious because Ill.App. noczenia Pub. plaintiff or his business. (1938). N.E.2d 31 obligation upon plaintiff had the both argues, support in 3. summary judgment the motion allegation ac that acted with its Brink’s of the at the trial to adduce all evi- press tual re malice in reference satisfy his dence believed would he *” * * lease, press release that the that the fact burden. malice, was made is some evidence fails to show We hold that record and, addition, the extent of the distri of actual there was evidence press bution of the release is evidence of alleged by plaintiffs and, far so malice as having gone malice, the to various release complaint is main as the concerned, thrust of weekly magazines and “other business dis- no error occurred magazines”. other words ADT’s ar trict court. gument that, because Brink’s in was Finally, plaintiffs as er- cite obtaining publicity for wide terested included ror that Brink’s charges against ADT, its efforts following statement: express attributable to an on the malice “ * * * part of Brink’s. But we do not believe warning the failure * * * plaintiffs’ evidence, offered an provided devices A.D.T. attempt to sustain its contention that burglary of in the the Brink’s resulted ”*** malice, Brink’s acted was Syracuse. at vault jury question. Lulay sufficient to raise a They say read that this reference “can be Inc., supra, Peoria meaning micro- the sensitive 115-116, Ill.2d at Reed burglary phones at the site of the Albanese, Ill.App.2d 53, work, system be- not not that the failed agree We with the Restate telephone company’s wire was cause the Torts, ment of ch. 25 Title C where § read, fallaciously decep- it cut. So it is said that the accorded to tively complete insensitivity imputes representing public activity, which in system microphonic contrast to a —in judicial proceedings, cludes is lost ingenious burglar prevent an failure published “solely if the for the electrically bridging telephone defaming other and so that the alarm would not connection * * * informing (em public” go off.” phasis supplied). It seems to us that the dissemination of neither the fact of fil that one of the ing newspa- document court nor furnished to the facts services story pers, published, as to the contents of was document tended prove relating improper purpose lawsuit to Brink’s which said within the meaning Thus, equipment Lulay, of this “ADT so rule. 34 that insensitive Syracuse firing burglary had it failed to detect them be the at armor-piercing there- shells into Brink’s been successful and that reason vault.” damages in ex- had suffered Brink’s prolong opinion Rather than this $500,000. subsequent counts cess analyses subject, adopt further of this we charged that the ineffectiveness of Brink’s brief: statement damaged equipment “ had also frag- The one sentence by forcing provide it to addi- ment which ADT has seized does all of the other tional permit the inference ADT draws offices serviced and would not Thus, if did. be actionable Simultaneously of its with the clearly the District Court was Brink’s distributed law, deciding, correct in as a matter of including media, release to various news substantially that the release was Washington Times, the New York accurate.” Journal, Post, Chica- the Wall Street the foregoing reasons, For the the order go daily newspapers, three national the appeal from which this was taken is af- services, and and business wire several firmed. magazines. The news Order affirmed. headline read: Judge (dissent- SWYGERT, Circuit THREE MILLION BRINK’S FILES ing). AMER- DOLLAR AGAINST SUIT Telegraph Company American District ICAN DISTRICT TELEGRAPH (ADT) engaged in the been electric ninety industry for than more AND FRAUDULENCE CHARGES years. currently pro- supplies It such FALSE REPRESENTATION 90,000 tection to more than customers throughout country furnish- the and has press release itself announced the The burglary protection ed electric to various complaint and stated in the Brink’s, Incorpo- offices and branches of part: sixty years. rated more than One of alleges ADT Brink’s contrived Brink’s the offices thus serviced was lo- by cheat, wrong and defraud them Syracuse, cated in New York. The alarm falsely stating representing and to the system supplied by ADT at that location company that Brink’s certain benefits containing was a device sensitive micro- bur- should receive from their electric phones to detect sound installed in the glary hold-up protection equip- and bank vault. October 1965 Brink’s * * * the ment. Since failure Syracuse burglarized. branch was The warning by ADT, provided devices the burglars through hole entered the vault burglary resulted in which the by firing wall armour- blown the vault Syracuse, Brink’s Brink’s took vault piercing shells from a cannon. Previ- steps provide additional immediate burglars ously, the had somehowdefeated protection. warning by attaching ADT’s device bridging equipment telephone allega- on the The release went to recite leading severing wires to the alarm and including Brink’s the tions of wires, warning preventing the thus deceptive as a result of statement that signal being transmitted to the Syra- ADT, representations by ADT central station. burglarized by bur- cuse vault had been glars plaintiff’s vault “who entered December Brink’s filed ac- through damages against a hole blown into wall the tion ADT the firing by armour- Chicago charg- of over 30 vault the federal district court wall, piercing after ing into the vault misrepresentations by shells fraudulent burglary electric devices and complaint defendant’s that be- equipment com- been defeated and protective had cause ADT’s were not devices by burglars. promised represented the as as ADT effective had apply princi- examine such Subsequently, should in March ples. instant libel filed the Brink’s. Campbell v. The rule enunciated in contained in Evening Post, N.Y. New York false; press release release were that complaint N.E. 52 A.L.R. 1432 by filed summarized majority having stated misleading Brink’s in an inaccurate rulings” Il- followed “similar give impression that manner so as to Lorillard, does linois courts in warning were so insensi- devices submit, pre- represent, not vailing I either the firing failed to detect tive authority. or sounder line shells; armour-piercing that the view, prevailing some few with “[T]he release was distributed contrary, plead- courts to the [is] against ADT. “actual malice” ing deposition in case or a but summary judgment, Brink’s' moved for yet upon may reported under acted contending release was Prosser, privilege.” claim W. issue and that no substantial 1964). (3rd Law of Torts ed. privi- of fact to overcome sufficient of- reason for the rule that some basic respect to malice existed privilege, ficial action is essential to the granted part. The district court states, Dean Prosser is “because of the motion comment. without opportunity afforded malicious extortion, lic defamation and even expressed Contrary through begun promptly suits dis- majority, I that Brink’s believe continued. Ibid. privileged report release not a Harper similar- judicial that, Professors James proceeding even if a a ly exist, state: qualified privilege question the of actual malice should not have been disposed very generally plead- held [I]t summary judgment. may ings pleadings from or extracts protection published not be majority notes, is, opinion As judicial privilege until some quali elsewhere, a under Illinois law and reference has taken with privilege judicial proceed report fied ings. to this are rule thereto. reasons The question But the threshold here is particularly pleadings, clear. Isolated privilege whether to extends present preliminary ones, to are bound publication of a com the contents of dispute. aspect More- of a but one judicial plaint any before action has been over, tempting device it would be a respect taken with to it. Illinois could, unscrupulous if he defamer courts not to addressed themselves groundless impunity, institute question. decisions The Illinois only to dismiss suits and sensational majority opinion, notably cited in the scurrilous or after their abandon them Inc., Peoria given cur- wide had been contents (news 112, (1966) Ill.2d 214 N.E.2d 746 newspapers rency in tabloids and pro paper report held to journalism. yellow “The which run to public ceedings city department), of a health rights informa- have no to Inc., Enterprises, and Lorillard v. Field up private come suits till tion (1965) open hearing public or action in (report bigamy start suit had been pe- Thus, the of a court.” per se; ed held libel existed tition, answer, deposition an a bigamy or claimed because no suit for hearing a has been affidavit before filed), wholly inap had in fact been are held, does not receive the posite. “may In such circumstances we James, Harper privilege. 1 F. assume that state law will accord with Law of Torts generally accepted principles of substan Supreme law,” Finley, Court of In 1945 the Judicial tive Jackson v. Sam rejected minority (5th 1966), 366 F.2d Massachusetts Cir. espoused privi- in a lawsuit a who distributes judicial proceedings repeating defamatory to at- con- material immediately complaint. taches tained in his complaint. In Sanford v. Boston Herald- why privi- There are solid reasons Corp., Traveler 318 Mass. lege ought not a be extended to allow the court declared: plaintiff publicize to his own glare policy requires Public a If the issuance of a release. doings licity courts, upon the even permitted, plaintiff, such action were a though litigants individual suffer un- guise judicial reporting under the publication of merited harm. But the proceeding, engage free- would be able party accusations made one ly publicize his defamation and to pleading legal another in a is neither a defamatory beyond nor- what duty newspapers. nor a moral En- might mally be situation if the news terprise ought in that matter be media re- furnished the damages paying the risk of if the ac- acknowledge thing lease. It is one prove safe, cusations false. To be may public that there benefit which newspaper to send its re- affording newspapers warrants virtual porters hearings to listen to rather immunity liability for defamation yet than to search the files cases reporting pleadings the contents of brought before court. The older thing court.1 It is another Cowley doctrine of the and Lundin say permitted should be cases still seems to us well founded to broadcast the contents of his own com- injustice principle and without plaint, thereby inviting newspapers practical operation. supported It is publish they might what not otherwise great weight authority publish. permission, if allowed to Such jurisdictions. Am.Law.Inst. Re- plaintiff, beget gross abuses c, statement : Torts comment § any corresponding without Am.Jur., Slander, Libel and § public Further, by the benefit. as stated We adhere to it. plaintiffs case, public in this no interest just The authorities are discussed taking plaintiff steps to warrants merely representative. Nevertheless, the defama- maximize his analyses contained them allegations indicate tory moment when Illinois, question, if faced would with the proceeding instituted, is before probably priv- conclude that is through judicial tempered lication can be ilege publicize to the contents of a com- filing opposing material. plaint prior any judicial action on it. Finally, qualifiedly even if Brink’s was case, however, The instant need not release, privileged issuing turn on whether the Illinois courts malice, adopt Campbell. the rule A stated allegation by, supported question presented. more refined among things, a letter written question, That which assumes the exist- president president qualified privilege ence of a in the news parent corporation which dis- publicize pleadings, media to is whether impermissible closed motives for the is- plaintiff such a to a extends my suance of the release. 1. The cases in which the have Phillips Murchison, courts case, One adopted rule F.Supp. have (S.D.N.Y.1966), 252 held against newspapers. E.g., Lang suits in a civil suit Univ., ford distributing v. Vanderbilt relating 199 Tenn. (1956); complaint. S.W.2d Shiver v. Val of his That case Press, Ga.App. dosta S.E.2d [Campbell] followed the New York (1950); Newspapers, rule, Paducah Inc. but also York a New statute which Ky. 220, Bratcher, “any applicable 118 S.W.2d 178 makes (1938); Lybrand person.” v. State S.C. 104 A.L.R. S.E. supporting ma- release and of fact created an issue terials been re- should

malice2 which ADT on the basis

solved self-serving subsequent pleadings and a president. executed

affidavit

I would reverse.

Rehearing denied. KILEY, CUMMINGS, SWYGERT grant Judges, petition vote

Circuit rehearing en banc. ENGLAND, Appellant,

Oscar

AMERICAN SOUTHERN INSURANCE COMPANY, corporation, Appellee.

No. 11083. Appeals

United States Court of

Fourth Circuit.

Argued April 6, 1967. May 29,

Decided unsatisfactory suggests quite meaningless 2. Dean Prosser the term inappropriate appears lost term, is is “malice” to describe the primarily publication. made abuse if He furthering “Perhaps purpose inter- states: statement which for the protection.” W. best fits the decided is entitled eases is est which (3rd primary ed. Prosser, court will Torts 821—22 look to the Law of motive or appar- 1964). which the defendant ently inspired. Discarding ‘malice’ as

Case Details

Case Name: The American District Telegraph Company, an Alabama Corporation v. Brink's Incorporated, a Delaware Corporation

Court Name: Court of Appeals for the Seventh Circuit

Date Published: May 8, 1967

Citation: 380 F.2d 131

Docket Number: 15849

Court Abbreviation: 7th Cir.