American Broadcasting Companies, Inc. v. Smith Cabinet Manufacturing Co.

312 N.E.2d 85, 160 Ind. App. 367, 1974 Ind. App. LEXIS 1053
CourtIndiana Court of Appeals
DecidedJune 12, 1974
Docket1-1273A219
StatusPublished
Cited by11 cases

This text of 312 N.E.2d 85 (American Broadcasting Companies, Inc. v. Smith Cabinet Manufacturing Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Broadcasting Companies, Inc. v. Smith Cabinet Manufacturing Co., 312 N.E.2d 85, 160 Ind. App. 367, 1974 Ind. App. LEXIS 1053 (Ind. Ct. App. 1974).

Opinion

Lowdermilk, J.

— Smith Cabinet Manufacturing Company, Inc., plaintiff-appellee herein, is engaged in the business of manufacturing furniture, including in its products a baby crib made chiefly of polystyrene plastic.

American Broadcasting Companies, Inc., American Broadcasting Company, Division of American Broadcasting Com- *369 pañíes, Inc., and ABC News, Inc., defendants-appellants herein, are national television and radio broadcasting companies which have various affiliates, including a local television station at Evansville, Indiana, which receives much of its program material from the defendants-appellants’ network, hereinafter referred to collectively as “ABC.”

ABC engaged in the preparation of a special documentary some months before the commencement of the within action which documentary was entitled “ABC News Close-up — On Fire!” Included in the material prepared for the program was a film segment which depicted a human hand holding a lighted match against the bottom rail of one of plaintiff’s model cribs, the type of which plaintiff was manufacturing and delivering for sale by retailers throughout the United States, and which rail caught fire within ten seconds and the entire bed, without furnishings, burned within approximately ten minutes.

ABC, by the usual methods of the industry, sought to obtain publicity for its planned program, which had been scheduled as a documentary for telecast by ABC on November 26, 1973. Such publicity was obtained by a showing of the documentary to the press in order to obtain reviews and the distribution of various advertising materials.

Plaintiff-appellee commenced this action upon learning of the planned documentary, seeking damages for claimed loss of sales and an injunction against the showing of the film segment concerning its crib. The plaintiff alleged that the documentary was inaccurate in that it condensed a ten minute test into a period of forty seconds, which made the burning of the crib appear more rapid than it was in fact and that the test was not run under sufficiently realistic conditions, since the crib did not contain a mattress or bedclothing.

The action was filed in the trial court on Wednesday, November 21, 1973, and notice was ordered issued and served on defendants-appellants for hearing on November 23, 1973, which was the day following Thanksgiving. The hearing was *370 to determine whether the proposed national telecast of the documentary film on the following Monday evening was false and libelous and should, as to such portions, be enjoined.

Trial was commenced on Friday, November 23rd, and completed late the following day.

The trial court ordered a viewing of the specific films in question, including a film made by Professor Williamson of the University of California at Berkeley, who made the test on plaintiff-appellee’s baby bed. The court also viewed a film clip used in the advertising and promotion of the ABC special. The trial judge, in his honest endeavor to be correct in his handling of the case, before concluding the hearing requested a second viewing of the forty second segment of the film relating to Smith Cabinet’s product (baby bed.)

The trial judge took the case under advisement until the following Monday in order to study and to examine all the authorities cited by the parties. Upon reconvening, the court issued a considered and clearly drafted preliminary injunction which was directed only to those matters and films that had been personally viewed by the court and had been previously published by ABC.

Following the entry of judgment and the fixing of a preliminary injunction bond ABC filed its bond in the required amount, which bond was approved by the court. On December 3, 1973, ABC filed its praecipe for a record of the proceedings.

ABC’s only assigned error is that the court erred in entering the interlocutory order granting a preliminary injunction in favor of plaintiff-appellee and against ABC.

ABC earnestly contends that the injunction issued constituted a prior restraint order and censorship in violation of the First and Fourteenth Amendments to the United States Constitution.

It is self evident from a reading of the court’s preliminary injunction that it is in the alternative and will permit ABC *371 to run the news documentary on the condition that the forty second segment showing the burning of the plaintiff-appellee’s baby bed have inserted written notices in the video portion designating the elapsed time sequence of the fire test of their product and edit the documentary by eliminating any reference to the plaintiff or its product by name until a more thorough and comparative testing and documentation is conducted and until further order of the trial court. The second alternative provided that if ABC was unwilling to edit the documentary as ordered by the court then ABC was prohibited from showing the documentary if it included the segment in question.

Plaintiff-appellee urges that the trial court did not abuse its discretion in issuing a preliminary injunction and therefore the same should not be reversed except upon the clear showing of an abuse of discretion. Hickey v. Hickey (1973), 156 Ind. App. 610, 298 N.E.2d 29, 33.

Appellee’s position is that the order of the trial court fulfills all constitutional requirements in the First Amendment area. Appellee contends that the standard to be used is set out in the case of Rosenbloom v. Metromedia (1970), 403 U.S. 29, 29 L.Ed.2d 296, wherein our Supreme Court stated that the First Amendment does not apply to state libel actions where there is no issue of general or public interest. The reliance on Rosenbloom is dependent on a finding by this court that the segment in question is not a matter of public interest.

The standard which is applied in Rosenbloom was first set out in the case of New York Times Co. v. Sullivan (1964), 376 U.S. 254, 11 L.Ed.2d 686, wherein the Supreme Court held that damages could not be recovered in a libel action involving public officials (also matters of public interest, Rosenbloom, supra) unless actual malice was shown to exist. The finding of actual malice can be made if it is found that the statement in question is knowingly false or was made in a reckless disregard for the truth or falsity. In the case at bar the trial court found that the film segment in question *372 was knowingly false and misleading. Therefore, appellee argues that actual malice has been found.

It is the position of appellee that once a publication falls under the tests set out above in New York Times and Rosen-bloom, supra, that the republication of such a statement can be properly enjoined since that statement is not constitutionally protected by the First Amendment.

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Bluebook (online)
312 N.E.2d 85, 160 Ind. App. 367, 1974 Ind. App. LEXIS 1053, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-broadcasting-companies-inc-v-smith-cabinet-manufacturing-co-indctapp-1974.