Arrow Steamship Co. v. Bennett

25 N.Y.S. 1029, 80 N.Y. Sup. Ct. 81, 57 N.Y. St. Rep. 113, 73 Hun 81
New York Supreme Court·Decided November 17, 1893·Published·Cited by 7 cases

Opinion

PARKER, J.

The complaint alleges 10 causes of action. Of these, the ninth is not only first attacked, but is made the subject of far more extended consideration than the others, on this appeal. This indicates that the learned counsel was of the opinion, as are we, that the other causes of action alleged are still stronger than this. As we have reached the conclusion that the special term rightly overruled the demurrer as to the ninth cause of action, we shall discuss that one, only. It reads as follows:

“(1) The plaintiff is, and was at the times hereinafter mentioned, a domestic corporation, having its principal office at the city of New York, or[1030] ganized for the purpose of construction, using, and leasing vessels and machinery, under patents, inventions, and devices owned hy said company, and such as might be acquired by it. (2) The defendant, at the times hereinafter mentioned, was the proprietor and publisher of the New York Herald, a daily newspaper published at the city of New York, state of New York, which newspaper, as this plaintiff is informed and believes, is one of large circulation; so that, at the time the said articles hereinafter mentioned, were published therein, the daily circulation of said paper was in the neighborhood of two hundred thousand copies, or more. (3) The prosperity, usefulness, permanency, and progress of the plaintiff company were, from the time of its incorporation, dependent, not only on the honesty, good faith, and skill of its management, and of the agents in various capacities employed by it, but also in the confidence of the public therein, and in the officers and agents who conducted the same. (4) The plaintiff further avers, on information and belief, that the defendant undertook, as hereinafter more particularly set forth, by a series of malicious and wanton attacks on the officers of the plaintiff company, and upon the trustees of said company, and upon the general management, business, objects, and purposes of said company, to break down and ruin the credit and reputation of said officers and of said trustees, and the purposes and objects of said company. On the 27th day of December, 1887, the defendant maliciously published in the said New York Herald, and caused the same to be circulated throughout the United States and elsewhere, certain false and defamatory matter concerning the officers of this plaintiff, and the management and affairs of this plaintiff, and of the plaintiff itself; said false and defamatory matter being contained in an article in the editorial column of said paper, entitled,. ‘Real Progress in the South versus Booms,’ wherein it was stated as follows: ‘When the Arrow Steamship Company went fishing for stray twenty-doilar bills, we looked through the little scheme, and told what we saw. The Arrow Steamship Company was not pleased. They even accused us of misstating facts. But they packed up their gripsack, all the same, and started for a healthier clime,’—(meaning that, after the publication of the articles above set forth, the plaintiff company conceded to' the public that it was engaged in a swindling scheme, and, by reason of the publication of said articles, was forced to discontinue its business;) and wherein it was further stated as follows: ‘The Herald tells the exact truth about these things,’ (meaning the articles published as aforesaid, referring to plaintiff.)”

This is followed hy allegations of damage, both general and special, and a demand for judgment.

The general rule, in determining the sufficiency of a pleading demurred to, is that it must be assumed that the facts stated therein, as well as such as may, by reasonable and fair intendment, be implied from the allegations made, are true. Milliken v. Telegraph Co., 110 N. Y. 403, 18 N. E. Rep. 251. Formerly, it was necessary that the complaint should contain a preliminary averment pointing out the application to the plaintiff of the matter published. But this requirement was done away with by the Code, and it is now sufficient to state, generally, that the words were published concerning the plaintiff. Section 535. If such allegation be controverted, plaintiff may establish it on the trial. Appellant insists that the plaintiff has not complied with the requirement of the Code in such respect. But his position is not well taken. The paragraph of the complaint introducing the publication of the alleged libelous matter alleges, distinctly, that defendant published, and caused to be circulated, “certain false and defamatory matter concerning the officers of this plaintiff, * * * and of the plaintiff itself, wherein it was stated as follows.” Comment is unnecessary, for it is obvious [1031] that this allegation is in compliance with the Code. Regarding the right of a corporation to recover damages because of the use of language, spoken or written, which injuriously affects its reputation and credit, Mr. Townshend, in his work on Slander and Libel, says:

“A corporation, like an individual, may have a reputation, and a good reputation is equally as valuable to a corporation as to a natural person; and, as an individual may sustain injury by language affecting his reputation, so, in like manner, a corporation.” Section 262.
“As regards a corporation engaged in manufacturing, trading, dr banking, or other occupation in which credit may be material to its success, there language concerning such a corporation, calculated to injuriously affect' its credit, must necessarily occasion it pecuniary injury, and in such a case an action may be maintained by the corporation without proof of any special damage.” Section 263.

See, also, Bank v. Thompson, 18 Abb. Pr. 413; Mutual Reserve Fund Life Ass’n v. Spectator Co., 50 N. Y. Super Ct. 460.

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Arrow Steamship Co. v. Bennett, 25 N.Y.S. 1029, 80 N.Y. Sup. Ct. 81, 57 N.Y. St. Rep. 113, 73 Hun 81 (N.Y. Super. Ct. 1893).

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