Cash v. Empire Gas Corp.

547 S.W.2d 830, 1976 Mo. App. LEXIS 2349
CourtMissouri Court of Appeals
DecidedDecember 28, 1976
Docket36992
StatusPublished
Cited by13 cases

This text of 547 S.W.2d 830 (Cash v. Empire Gas Corp.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cash v. Empire Gas Corp., 547 S.W.2d 830, 1976 Mo. App. LEXIS 2349 (Mo. Ct. App. 1976).

Opinion

ALDEN A. STOCKARD, Special Judge.

In this action for defamation, the jury awarded $15,000 actual damages against defendants Empire Gas Corporation and A. L. Leivan, and $750 against A. L. Leivan and $50,000 against Empire Gas Corporation as punitive damages. Both defendants have appealed.

Plaintiff was employed as manager of Empiregas Inc. of Potosí, a wholly owned subsidiary of Empire Gas Corporation. His employment terminated in November 1969. He thereafter submitted an application to National Life and Accident Insurance Company for employment, and Mr. L. A. Burnside, a regional administrative manager, requested “an activity report or an employment record” with respect to plaintiff from the St. Louis office of American Service Bureau, Inc. In the process of obtaining information for the report Mr. Herbert Harpstrite called Mr. A. L. Leivan, then treasurer of Empire Gas Corporation, by telephone and was told that plaintiff’s employment had been terminated “by the company” because he had written “a letter to the employment office claiming that he had more work than he could handle” and further “that [plaintiff] also won a $600 color TV set in a contest sponsored by the company in which the company later found that the figures he submitted were not correct.”

Based on the information received from Mr. Leivan and other sources, American Service Bureau, Inc. sent a report to National Life and Accident Insurance Company, which included the following:

“Prior to February 1969 [plaintiff] worked for the Empire Gas Co., [sic] Po-tosí, Mo., as their manager of their propane gas outlet, a firm with headquarters in Lebanon, Mo. He started with them in September 27, 1967. * * * He was their manager, and was terminated by the company. He wrote a letter to the unemployment [sic] office, claiming that he had more work to do than he could handle and he also won a $600 color TV set in a contest sponsored by the company in which the company later found that the figures he submitted were not correct.”

Other than the portion quoted above there is nothing in the entire report derogatory to plaintiff.

Shortly thereafter, plaintiff received a letter from National Life and Accident Insurance Company as follows:

“After carefully reviewing your application for employment, we feel that your opportunity for success will be greater in other employment. This decision was influenced by information in a consumer report made at our request by the American Service Bureau of St. Louis, Missouri, a nationally known reputable source of information for business decisions. We appreciate your interest and wish for your success.”

In this action for slander plaintiff joined as defendants Empire Gas Corporation, Em-piregas Inc. of Potosí, Mr. A. L. Leivan and American Service Bureau, Inc. Before the case was submitted to the jury, plaintiff dismissed his petition with prejudice as to American Service Bureau, Inc., and the jury returned no verdict pertaining to Empire-gas Inc. of Potosi. Hereafter, our reference *833 to “defendants” shall refer only to Mr. A. L. Leivan and Empire Gas Corporation.

Defendants’ separate answers were in the form of a general denial. Neither defendant pleaded truth or conditional privilege as a defense, and defendants offered no evidence. It is clear that plaintiff’s position at trial and on this appeal is that “Both truth and qualified privilege are affirmative defenses to be pleaded and proved by [defendants], but [since they] failed to plead these defenses * * * they were not available to [defendants] at trial.” As a general rule this is correct, at least when by his pleadings and proof plaintiff does not establish, as a matter of law, the application of an absolute or conditional privilege. See 53 C.J.S. Libel and Slander § 188; Trice v. Lancaster, 270 S.W.2d 519 (Mo.App.1954); Walker v. Kansas City Star Co., 406 S.W.2d 44 (Mo.1966). Under a general denial, when justification by reason of truth is not pleaded and privilege is not claimed by the defendant and neither is established by plaintiff, the issues in an action for slanderous words are only whether the defendant spoke of and concerning plaintiff those words, and if so, what damage plaintiff is entitled to recover. However, engrafted in the law of defamation as a matter of public policy, Lathan v. Journal Company, 30 Wis.2d 146, 140 N.W.2d 417 (1966), is the principle of qualified or conditional privilege.

“A qualified or conditionally privileged communication is one made in good faith on any subject matter in which the person communicating has an interest, or in reference to which he has a right or duty, if made to a person having a corresponding interest or duty on a privileged occasion and in a manner and under circumstances fairly warranted by the occasion and duty, right, or interest.” 50 Am.Jur.2d Libel and Slander § 195. In the application of this principle it has been stated that “It is an established general rule that a communication respecting the character of an employee or former employee is qualifiedly privileged if made in good faith by a person having a duty in the premises to one who has a definite interest therein, * * *. So long as good faith is present, the person making the statement is not limited to facts that are within his personal knowledge, but may, and should, pass on to his inquirer all relevant information that has come to him, regardless of whether he believes it to be true or not.” 50 Am.Jur.2d Libel and Slander § 273. Also, as stated in § 275, supra, “a communication in respect of the character or qualifications of an employee or former employee may be made to any person who has a legitimate interest in the subject matter thereof, such as a prospective employer * * See also Lonergan v. Love, 235 Mo.App. 1066, 150 S.W.2d 534 (1941); Estes v. Lawton-Byrne-Burner Insurance Agency Co., 437 S.W.2d 685 (Mo.App.1969).

The pleadings averred and plaintiff’s evidence established that the alleged defamatory communication was made on behalf of a former employer to the agent of a prospective employer. Whether the principle of qualified privilege applies is to be determined by the court and not the jury, Fisher v. Myers, 339 Mo. 1196, 100 S.W.2d 551 (1936); Lonergan v. Love, supra, and under the facts and circumstances of this case, as established by plaintiff’s pleadings and evidence, we necessarily conclude that as a matter of law, the principle of conditional privilege is applicable.

As previously noted, plaintiff asserts that the issue of conditional privilege is not in this case because defendants did not plead it affirmatively as a defense. However, we do not consider this to be an issue of the sufficiency of defendants’ pleadings. It is basically a question of what plaintiff was required to prove in order to make a submissible ease.

In the early case of Finley v. Steele, 159 Mo.

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Bluebook (online)
547 S.W.2d 830, 1976 Mo. App. LEXIS 2349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cash-v-empire-gas-corp-moctapp-1976.