Brown v. Farkas

511 N.E.2d 1143, 158 Ill. App. 3d 772
CourtAppellate Court of Illinois
DecidedAugust 13, 1987
Docket85-3012
StatusPublished
Cited by26 cases

This text of 511 N.E.2d 1143 (Brown v. Farkas) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Farkas, 511 N.E.2d 1143, 158 Ill. App. 3d 772 (Ill. Ct. App. 1987).

Opinion

JUSTICE JIGANTI

delivered the opinion of the court:

The issues in the appeal arise out of an action by Sanford and Gloria Brown against Allen and Eleanor Farkas for breach of an installment agreement between the parties, in addition to a counterclaim by Allen Farkas against Sanford Brown for defamation. Both actions proceeded as bench trials. The trial court awarded over $240,000 in damages to the Browns in the action on the installment agreement. This agreement was set off against the judgment entered in favor of Farkas against Brown for defamation. The Farkases appeal from the damage award on the basis that the award was inappropriate under the contract. The Browns, in turn, appeal from the defamation judgment, the trial court’s decision allowing setoff and the finding that Eleanor Farkas, as guarantor under the installment agreement, was discharged from liability.

As to the defamation action, the trial court entered a judgment against Sanford in the amount of $50,000 in compensatory damages and $1 million in punitive damages in favor of Allen Farkas as a result of a defamatory statement made by Brown. Brown appeals from this order and contends that the statute involved provides immunity to him from a damage award. Alternatively, Brown charges that the damage awards were not supported by the evidence and were excessive. Brown also appeals from the trial court order which set off the judgment received by Sanford and Gloria Brown on the installment agreement against that received by Allen Farkas in the defamation action against Sanford Brown alone. The facts giving rise to both the contract and defamation action are interrelated and are as follows.

Sanford Brown and Allen Farkas met in 1960 or 1961 and Farkas began to work for Brown in 1963, a relationship that continued for the next 20 years. The parties disagree as to whether their relationship remained solely on a business level: In 1979, Brown suffered a stroke and Farkas ran the business during that period. After that time, in 1979, Farkas purchased 50% of the capital stock of Brown’s company, Brown’s Industrial Uniforms, Inc. Later, in 1982, the Browns decided to sell their remaining interest in the business to Farkas. The sale of the business involved several transactions. Brown’s Industrial Uniforms agreed to redeem the stock held by the Browns. Allen Farkas agreed tó purchase from the Browns the premises where the business was located under an installment agreement for warranty deed. The installment agreement provided that Eleanor Farkas was to guarantee the obligations of Allen Farkas and Brown Industrial Uniforms under the contract.

During this time, in 1982, as testified to by Sanford Brown, a conversation took place between Brown and Farkas in which Farkas began to describe the breast and vaginal area of his oldest daughter. Brown stated that Farkas then proceeded to an anteroom adjoining Brown’s office, where he masturbated into an empty shirtbox and stated in a shrill voice, “Wait till we get home; we’re going to play carnival.” Brown testified that Farkas stated that the “carnival” game involved “that’s where she will sit on my face and I will guess her weight.” Brown stated that several months later he considered reporting this incident to the Department of Children and Family Services (DCFS) for investigation. Brown stated that he was aware that one of Farkas’ daughters had received psychological treatment and that one of his daughters suffered from a history of bone injuries. Brown testified that in November of 1982 he dialed the DCFS toll-free number; however, he did not make a report at that time. He further stated that at a social affair he had overheard that one of Farkas’ daughters had serious psychological problems; however, he could not recall where the affair was at or who the person was who made the comment.

Farkas testified that at some time in February of 1983 Brown called Brown’s Industrial Uniforms and left a message on the answering device as follows: “Is it true that Allen masturbates?” Farkas testified that in May of 1983 he sent his monthly payment on the installment agreement for warranty deed to the Browns. The Browns, however, claimed that they did not receive the payment and declared a forfeiture. On May 15, 1983, the Browns filed suit against Farkas to enforce the terms of the installment agreement. After the suit was filed, Eleanor Farkas attempted to present Brown with a cashier’s check for the installment due; however, Brown did not accept the payment. The check was then sent to the Browns by certified mail.

Brown testified that on May 21, 1983, he phoned the DCFS and told an intake worker that “there was an employee that I had worked with that was bragging of sexual contact with his daughter.” Farkas testified that on May 23, 1983, another message from Brown was left on their phone-answering device. This message stated, “Does Allen still masturbate?” Later that afternoon Farkas and his wife learned that a caseworker from the DCFS, Audrey Macklin, had come to the Farkas home to investigate the call made by Brown. Macklin testified that she conducted a thorough investigation of Allen Farkas in which she interviewed Eleanor, each of the employees and representatives of Brown’s Industrial Uniforms, Inc., family members, school counselors and friends. It was Macklin’s conclusion that the charge by Brown was unfounded and that there was no truth in the report.

During this time the suit by the Browns against the Farkases to enforce the installment agreement continued. In addition, Farkas filed a counterclaim alleging, among other things, that Brown had committed slander. The Browns then filed a suit against Eleanor Farkas on her contract of guaranty.

The first issue to be addressed with regard to Brown’s appeal from the slander judgment is the award of compensatory damages. Brown propounds three arguments as to this issue. Additionally, Brown challenges the award of punitive damages. Regarding the award of compensatory damages, Brown first argues that the award cannot stand because Farkas failed to present sufficient evidence to support the award. In addition, Brown charges that the Abused and Neglected Child Reporting Act (Act) (Ill. Rev. Stat. 1985, ch. 23, par. 2051 et seq.) provides immunity to him from any damages arising out of the submission of a report to the authorities. Brown further alleges that assuming an award of compensatory damages was proper, the amount of the award in this case was excessive.

In an action for defamation, the law recognizes two classes of damages, general and special. General damages are those which the law presumes must actually, proximately and necessarily result from the publication of the defamatory matter. These damages, which include mental suffering and injury to reputation, arise by inference of law and are not required to be proved by evidence. (Lorillard v. Field Enterprises, Inc. (1965), 65 Ill. App. 2d 65, 79, 213 N.E.2d 1.) Thus with regard to this element of compensatory damages, Farkas was not required to bring forth evidence of actual injury.

In addition to general damages, there are four classes of words in Illinois which, if falsely communicated, give rise to a cause of action for defamation in which a showing of special damages is not required.

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Cite This Page — Counsel Stack

Bluebook (online)
511 N.E.2d 1143, 158 Ill. App. 3d 772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-farkas-illappct-1987.