Adirondack Record, Inc. v. Lawrence

202 A.D. 251, 195 N.Y.S. 627, 1922 N.Y. App. Div. LEXIS 4889
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 6, 1922
StatusPublished
Cited by13 cases

This text of 202 A.D. 251 (Adirondack Record, Inc. v. Lawrence) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adirondack Record, Inc. v. Lawrence, 202 A.D. 251, 195 N.Y.S. 627, 1922 N.Y. App. Div. LEXIS 4889 (N.Y. Ct. App. 1922).

Opinion

Hinman, J.:

It has been proved to the satisfaction of this court that the article in question was libelous so far as the editor of the plaintiff’s paper was concerned. (McKee v. Robert, 197 App. Div. 842.) We are now asked to say whether the complaint states a cause of action for libel against the corporation which owns and publishes the paper. The principles involved seem to be well settled and reiterated by the Court of Appeals in First National Bank v. Winters (225 N. Y. 47), citing Reporters’ Assn. v. Sun Printing & Publishing Assn. (186 N. Y. 437) and New York Bureau of Information v. Ridgway-Thayer Co. (119 App. Div. 339, 342; revd. on dissenting opinion, 193 N. Y. 666).

In Reporters’ Assn. v. Sun Printing & Publishing Assn. (supra, 440) the Court of Appeals said: That a corporation has the right to maintain an action of libel when the publication assails its management, or credit, and inflicts injury upon its business, or property, is a proposition which is true upon principle and which has the support of authority. * * * It is as much entitled to the protection of the law, in those respects, as is the natural person. It differs from the latter in that it has no character to be affected by a libel; but its right to be protected against false and malicious statements affecting its credit or property should be beyond question. There has been some dispute in the cases as to the necessity of setting out the specific damage which a corporation claims to have suffered from a libelous publication; but I regard the better rule to be that such an averment is not necessary when the language is of so defamatory a nature as to directly affect credit and to occasion pecuniary injury.”

In New York Bureau of Information v. Ridgway-Thayer Co. (supra, at p. 344 of the opinion adopted by the Court of Appeals) it is said: The object of requiring that special damage be alleged in an action of this kind is to restrict the recovery to actual pecuniary loss. When the libel is of such a character that such loss will necessarily flow from its publication, then such -damage will be presumed; otherwise it must be alleged. Where a libel is published of an individual affecting his character a recovery is allowed in the absence of proof of special damage, because the nature of the injury is such that the specification of the damage is impossible; but as the only injury that can be sustained by a business corporation is the pecuniary damage that is actually sustained because of the publication, such special damage must be alleged unless from the nature of the libel pecuniary damages necessarily followed.”

In South Hetton Coal Co. v. North-Eastern News Association (L. R. [1894] 1 Q. B. 133), cited by the Court of Appeals in the Winters [255]*255Case (supra), and which is a leading English case, it is said: The words complained of must attack the corporation or company in the method of conducting its affairs, must accuse it of fraud or o mismanagement, or must attack its financial position.” A corporation cannot maintain an action for slander or libel upon words spoken or published solely of and concerning its officers or members. (Hapgoods v. Crawford, 125 App. Div. 856; Brayton v. Cleveland Special Police Co., 63 Ohio St. 83; Memphis Telephone Co. v. Cumberland Tel. & Tel. Co., 145 Fed. Rep. 904.) “ To merely attack or challenge the rectitude of the officers or members of a corporation, and hold them or either of them up to scorn, hatred, contempt, or obloquy for acts done in their official capacity, or which would render them liable to criminal prosecution, does not give the corporation a right of action for libel.” (Warner Instrument Co. v. Ingersoll, 157 Fed. Rep. 311.)

To sustain this complaint, therefore, the article alleged to be libelous must contain some charge or statement in relation to the corporation itself as distinguished from its editor and which necessarily and directly affects its credit and occasions pecuniary injury, since no special damage has been alleged.

It is well established that the article in question must be construed as a whole. “ The language used is to be understood by judge and jury in the same manner as others understand it, and words are to be taken in that sense which would be naturally conveyed to persons of ordinary understanding.” (Morrison v. Smith, 177 N. Y. 366, 368.) “ If the article be susceptible of only one meaning, then the question whether or not it is libelous per se is to be decided as matter of law by the court.” (Klaw v. N. Y. Press Co., Ltd., 137 App. Div. 686, 688.) If the application or meaning of the words is ambiguous, or the sense in which they were used is uncertain, and they are capable of a construction which would make them actionable, * * * it is for the jury to determine upon all the circumstances, whether they were applied to the plaintiff, and in what sense they were used.” (Sanderson v. Caldwell, 45 N. Y. 398, 401.)

Taking the article as a whole and reading it in the sense which would be naturally conveyed to persons of ordinary understanding, we think it is susceptible of only one meaning, an attack upon the editor alone involving essentially a charge of hypocrisy in his attack upon the defendants, which we have held in McKee v. Robert (supra) to have been defamatory and libelous. The application and meaning of the article is not ambiguous. The sense in which the article is written is not uncertain. It was clearly applied to the editor in the sense of charging him with personal moral tur[256]*256pitude inconsistent with his personal authorship of articles reflecting on people guilty of failings and little offenses. It is a charge of mismanagement of himself in his own personal mode of living, inconsistent with the thoughts' to which he gave expression in the „ publication of the article concerning the defendants, and not a charge of mismanagement of the publication itself by the printing of false, filthy and degenerate facts.

A study of the article by paragraphs, seriatim, shows this to be the necessary implication. The heading of the article is The Record’s Reliability.” This, standing alone, is not libelous per se. To determine whether this heading imputes unreliability, and that the word reliability ” was used in sarcasm as applied to the corporation, no such meaning can be attributed to it unless such imputation is justly found from a perusal of the article as a whole. The controversy, as we shall see, was entirely with the editor.

The learned court below has sustained the complaint apparently on two grounds: (1) That the alleged libelous article charges or is susceptible of having charged the plaintiff corporation with having published in its paper an article relating to the Bridge Theatre which was filthy and degenerate and as such had not been equalled in a very long time; (2) that libleing the editor of a newspaper in the manner in which this editor was libeled is libeling the corporation which employs the editor and. publishes the paper.

In the first ground, the learned trial justice is clearly in error. No such meaning can fairly be attributed to the 1st sentence of the 1st paragraph of the article. It is not ambiguous or uncertain or susceptible of the construction which he places upon it.

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202 A.D. 251, 195 N.Y.S. 627, 1922 N.Y. App. Div. LEXIS 4889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adirondack-record-inc-v-lawrence-nyappdiv-1922.