Fargo Women's Health Organization, Inc. v. FM Women's Help & Caring Connection

444 N.W.2d 683, 1989 N.D. LEXIS 163, 1989 WL 92129
CourtNorth Dakota Supreme Court
DecidedAugust 15, 1989
DocketCiv. 880177
StatusPublished
Cited by8 cases

This text of 444 N.W.2d 683 (Fargo Women's Health Organization, Inc. v. FM Women's Help & Caring Connection) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fargo Women's Health Organization, Inc. v. FM Women's Help & Caring Connection, 444 N.W.2d 683, 1989 N.D. LEXIS 163, 1989 WL 92129 (N.D. 1989).

Opinions

GIERKE, Justice.

Patricia Larson, Darrold Larson, David Pence, Terri Carlson, John Robertson, Robyn Robertson, and Loralee Isaacson, directors of FM Women’s Help & Caring Connection, Inc., have appealed from a district court judgment holding them jointly and severally liable for damages to Fargo Women’s Health Organization, Inc. (Women’s Health). We affirm.

We related some of the underlying facts and assertions in Fargo Women’s Health Organization v. Larson, 381 N.W.2d 176, 177-178 (N.D.), cert, denied, 476 U.S. 1108, 106 S.Ct. 1957, 90 L.Ed.2d 365 (1986):

“The plaintiffs (Women’s Health) operate a medical clinic in Fargo which performs abortions. The Help Clinic,» also operating in Fargo, provides pregnancy tests and anti-abortion counseling services but does not perform abortions. During January 1985, Women’s Health filed an action for damages and injunctive relief asserting that the Help Clinic, through false and deceptive advertising and related activity, misleads persons into believing that abortions are conducted at the clinic with the intent of deceptively luring those persons to the clinic to unwittingly receive anti-abortion propaganda. Women’s Health also asserts [684]*684that the Help Clinic uses the similar name ‘Women’s Help Clinic’ to intentionally confuse women seeking abortions from Women’s Health and to cause them to mistakenly contact the Help Clinic.
* * # * *
“The trial court’s order imposing a preliminary injunction provided in relevant part:
“‘THEREFORE IT IS ORDERED, ... that the defendant be enjoined from using the name Women’s Help Clinic, or comparable words which are similar, and confusing....
“ ‘... [Tjhat the defendants ... shall be prohibited from falsely and deceptively advertising that they provide elective abortions and financial assistance for such services.
“ ‘... [Tjhat the defendants do not falsely lull people that come to them for counseling into thinking that they are, in fact, the Women’s Health Organization or the Fargo Women’s Health Organization, Inc. and that the defendants take no action or inaction which would lull people into believing that they are dealing with the Fargo Women’s Health Organization, Inc. when they are in fact dealing with defendants or F-M Women’s Help and Caring Connection, Inc....
“ ‘... [Tjhat if the defendants advertise using the term abortion, then they must state that they do not perform abortions.’ ”

We modified the injunction by striking the last sentence and affirmed it as modified.

In Fargo Women’s Health Organization, Inc. v. Larson, 391 N.W.2d 627 (N.D.1986), the trial court issued an order finding the Women’s Help Clinic and its directors in contempt for violating the preliminary injunction we affirmed in Fargo Women’s Health Organization, Inc., supra, 381 N.W.2d 176. We affirmed as to Women’s Help Clinic and some of its directors, but reversed as to other directors.

The trial court found that when the defendants started advertising there was a noticeable decline in Women’s Health’s business and that Women’s Health began advertising “to counteract the Defendants’ advertising ... in its effort to mitigate its damages.” By its special verdict, the jury found that the Defendants violated our false advertising statute, proximately causing damages to Women’s Health in the amount of $23,500, and assessed punitive damages in the amount of $5,500. Judgment was entered accordingly and the defendants appealed, contending that damages may not be recovered for violation of the false advertising statutes and that the trial court erred in allowing punitive damages and costs.

Chapter 51-12, N.D.C.C., makes false advertising unlawful, provides that a violation is a class B misdemeanor, and authorizes actions to enjoin violations of the chapter. Chapter 51-12 does not mention suits to recover damages. The defendants argue that criminal penalties and injunctions are the exclusive remedies for false advertising and that the courts may not allow damage claims. We disagree.

Violation of a statute may be both a crime and a tort, and there may be both a civil tort action and a criminal prosecution for the same act. See, e.g., Dahlen v. Landis, 314 N.W.2d 63 (N.D.1981); Prosser and Keeton on Torts, §§ 2, 36 (5th Ed.1984). The defendants’ arguments ignore the role of the judiciary in the expression of law. See § 1-01-03, N.D.C.C. [“The will of the sovereign power is expressed by: ... 7. The decisions of the tribunals enforcing those rules, which, though not enacted, form what is known as customary or common law.”j. “Tort law is overwhelmingly common law, developed in case-by-case decisionmaking by courts.” Prosser and Keeton, supra, § 3, p. 19. Defendants’ arguments also ignore legislative enactments such as §§ 9-10-01,1 9-10-0[685]*6856,2 and 32-03-01,3 N.D.C.C.

“The violation of a statute or ordinance may be considered as evidence of negligence.” Keyes v. Amundson, 391 N.W.2d 602, 608 (N.D.1986). We said in Keyes, supra, 391 N.W.2d at 608:

“We believe the appropriate approach in determining whether or not a plaintiff’s injury is of the kind that an ordinance was intended to prevent requires interpreting the purpose of the ordinance to include all risks that may reasonably be anticipated as likely to follow from its violation.”

Just as “[djanger invites rescue” [ Wagner v. International Ry. Co., 232 N.Y. 176,133 N.E. 437 (1921)], deception invites correction. Furthermore, a person injured by another’s wrongful act must “exercise reasonable care to avoid loss or to minimize the resulting damages” [Schneidt v. Absey Motors, Inc., 248 N.W.2d 792, 796 (N.D.1976)] and “may not recover for damages which could have been avoided by reasonable efforts” [,Johnson v. Monsanto Co., 303 N.W.2d 86, 92 (N.D.1981)]. Women’s Health sought to counteract the defendants’ false advertising with corrective advertising to mitigate its damages and sued to recover the cost of that advertising. In our view, injury to a competitor (and the expense of mitigating damages) is a risk that may reasonably be anticipated as likely to follow from a violation of the false advertising statutes.

Chapter 51-12, N.D.C.C., is a consumer protection statute, remedial in nature, which “must be liberally construed in favor of protecting consumers.” State ex rel. Spaeth v. Eddy Furniture Co., 386 N.W.2d 901, 903 (N.D.1986). “Disseminating false information is a wrong against both consumer and competitor.” Note, Competitive Torts, 11 Harvard L.Rev. 888, 892 (1964).

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Bluebook (online)
444 N.W.2d 683, 1989 N.D. LEXIS 163, 1989 WL 92129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fargo-womens-health-organization-inc-v-fm-womens-help-caring-nd-1989.