Botsford v. Chase

66 N.W. 325, 108 Mich. 432, 1896 Mich. LEXIS 999
CourtMichigan Supreme Court
DecidedFebruary 26, 1896
StatusPublished
Cited by6 cases

This text of 66 N.W. 325 (Botsford v. Chase) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Botsford v. Chase, 66 N.W. 325, 108 Mich. 432, 1896 Mich. LEXIS 999 (Mich. 1896).

Opinion

Long, C. J.

Plaintiff, with defendant and other persons, at Kalamazoo, in the year 1892, organized what is known as the Botsford Paper-Mill Company, as a corporation. The capital stock was $100,000. The plaintiff took $10,000 of the stock, and defendant also became a large shareholder therein. The plaintiff became the general manager of the company, and the defendant its president. The whole capital stock was paid in, and the mill built and equipped in April, 1893. It was then discovered that the capital stock was not large enough, and it was increased to $120,000. Thereafter it was increased to $150,000. This $50,000 was not paid in, when the plant was mortgaged for that amount. Some feeling grew up between the parties in reference to the management of the concern; and defendant contends that plaintiff, when about to organize the corporation, represented that he was a practical paper-mill man, of large experience, and that $100,000 would be ample capital stock to build the plant and furnish sufficient working capital; that, relying upon this, he had taken $10,000 of the stock, and induced his friends to take the balance, aside from what the plaintiff took, — when in fact the plaintiff was not a practical mill man, and had had no experience whatever in paper making. Frequent meetings of the board of directors were held, and the plaintiff contends that at these meetings, and in the presence of other parties and at other places, the defendant made certain false, slanderous, and defamatory statements of and concerning him. This action 'was brought to recover damages for [434]*434such defamatory words. On tbe trial the plaintiff had verdict and judgment for $5,000. Defendant brings error.

The defamatory statements, as laid in the declaration, are:

“ He has attempted to bribe me to keep still.”
“ He has attempted to bribe me to keep still, by agreeing to give me too high a price for paper frames.”
“I offered to make the paper frames for 12 cents apiece, and he paid me 16 cents.”
“ He agreed to pay me 16 cents, and would have paid me 19 cents, or any other price I would have asked, in order to have me keep still.”

The declaration alleges that, previous to the time of such conversation, the plaintiff had made a certain contract for paper frames, in behalf of the paper-mill company, with defendant, for a fair and reasonable price, and that by the language aforesaid the defendant meant, and intended to have the public and the persons interested in said corporation to understand, that the plaintiff agreed to give the defendant a higher price for said paper frames than they could be bought for in the market, and so give it in fraud of the rights of the company, for the purpose of bribing the defendant to keep still about and conceal some act of the plaintiff, which act defendant meant, and intended the public and said persons should infer, the plaintiff had done against the interests of the said corporation.

The declaration further alleges that the defendant further stated of and concerning the plaintiff: “He is dishonest and incompetent;” also, the words:

“I have looked Botsford (meaning plaintiff) up, and find his record is not good.”
“I am informed that he has failed in business East.” “ He does not dare to own any property. Everything is in his wife’s name.”
“The Botsford Paper-Mill Company is gone to the dogs, and, unless we get Botsford out, we are gone.”
“Botsford is dishonest.”
[435]*435“He has bribed me, by making a contract to furnish slats to the company, and I have papers in my pocket to prove it.”
“Botsford is not fit to manage the mill.”
“He does not understand his business. There is no head or tail to the business.”
“Botsford is rotten.”

The declaration then alleges that the defendant intended by the expression, ‘ ‘ Botsford is dishonest and incompetent,” that the plaintiff was dishonest and incompetent in the management of such business, and as a business man in his said trade, occupation, and business as aforesaid; and that, by reason of the premises,' the plaintiff was compelled to resign his position as manager of the company, and to sell his stock in the corporation. It appears that at the request of the board of directors, after the difficulties arose, both parties resigned their positions, and the defendant purchased from the plaintiff his shares of stock, paying par value therefor.

Of the errors claimed, which were argued in this court, we think but three need be discussed:

1. The court charged the jury as follows:

“If. the jury find that the slanderous words were spoken by defendant against the plaintiff, then, in estimating the plaintiff’s damages, they may take into consideration the wealth and standing of the defendant in the community, with a view of determining the weight and influence which his false statements may have had in injuring plaintiff.”

It is contended that there was not a particle of evidence introduced on the trial showing, or tending to show, that the defendant was a man of wealth, and that the above charge, taken in connection with remarks of counsel on the trial, calling the defendant a “bloated paper-mill baron,” prejudiced the defendant before the jury.

The rule is well settled in this State that the pecuniary standing of the defendant in a civil action for slander may be shown, to prove the influence his words would have in the community. Brown v. Barnes, 39 Mich. 211. That [436]*436case has been.cited with approval many times, and the rule there laid down has at all times since been followed in this court. We are unable to say in this case that there was no testimony which would warrant the instruction. It was shown, as appears by the record, that the defendant was a large owner of stock in this corporation. But, aside from this, the record does not purport to contain all the evidence taken on the trial, and there may , have been other evidence which warranted the court in giving the charge complained of. Just what led up to the remark of counsel above quoted, the record does not show. It may have been in answer to remarks of counsel on the other side. It.may also be said that the record does not disclose that the attention of the trial court was called to these remarks, and there does not appear to have been any exception taken thereto.

2. On the trial the plaintiff contended that he had been largely instrumental in organizing the corporation, and in securing and establishing trade and business therefor, and that, by reason of the alleged slanders, his relations with the corporation were broken off, and he was compelled to resign his position and sell his stock.

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Bluebook (online)
66 N.W. 325, 108 Mich. 432, 1896 Mich. LEXIS 999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/botsford-v-chase-mich-1896.