Fennell v. G.A.C. Finance Corp. of Baltimore No. 3

218 A.2d 492, 242 Md. 209
CourtCourt of Appeals of Maryland
DecidedMay 5, 1966
Docket[No. 138, September Term, 1965.]
StatusPublished
Cited by22 cases

This text of 218 A.2d 492 (Fennell v. G.A.C. Finance Corp. of Baltimore No. 3) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fennell v. G.A.C. Finance Corp. of Baltimore No. 3, 218 A.2d 492, 242 Md. 209 (Md. 1966).

Opinion

McWilliams, J.,

delivered the opinion of the Court.

In this libel suit the verdict of the jury was in favor of the appellant (Fennell) against the appellee (GAC). The damages came to $40,000, $35,000 of. which was styled “punitive,” the balance “compensatory.” Four months later (5 March 1965) the trial judge granted GAC’s motion for a judgment N.O.V. Fennell appealed. While there are a number of subsidiary mat *213 ters to be considered we shall be concerned principally with Judge Byrnes’ reason for granting GAC’s motion. 1 He said that “although * * * [the libelous matter] could well be morally and ethically reprehensible it is not, in this court’s opinion, actionable per se.”

Fennell was discharged (honorably) from the Air Force in 1952. He was 22 years old at the time. He drifted from one job to another until December of 1960 when he was employed as a salesman by The Jerome Apple Company and The Apple and Bond Company of Baltimore. The former is the general agent of the life insurance department of The Travelers Insurance Companies; the latter are general agents for Travelers’ Casualty, Indemnity, Fire and Marine departments.

Although his education was limited and he seems to have had no special skills, he was not without some experience in the insurance business. He was given a drawing account of $125 per week. Although the first few months were disappointing, the sales manager felt (in April) he “would make a good career agent.” Having a wife and five children to support, Fennell considered this to be the “best job of his career.”

Early in April 1961 the sales manager told Fennell that he had been “taken off of the draw” which meant that he would no longer receive an advance of $125 per week, tie explained to Fennell that he had not sold enough insurance to justify continuing the advance. Fennell testified he “wasn’t fully aware that * * * [he had been] hired strictly to sell life insurance and casualty on the side * * He expressed doubt that he could get along “without some money coming in” so it was agreed that he would receive in cash commissions on any new business he produced. Otherwise his commissions would be retained and applied against the “draw” he had already received. In the next two weeks he “went out and sold close to $200,000 worth of life insurance.” He said he “really concentrated on the life, instead of the casualty.”

In June 1960 Fennell had borrowed from GAC $1,160 which he agreed to repay at the rate of $58.00 per month. He had borrowed money (which seems to have been repaid) from GAC *214 on a number of previous occasions. He was behind in his payments when he went to work for Travelers, a. circumstance he had disclosed to his new employer. Fennell said “they knew my complete history, when I went to- work there.” Early in 1961 GAC allowed him to pay interest to date together: with ¡some sort of a penalty, and as a result his note- became “current” instead of “overdue.” ■

■ He was again unable to make the full monthly payments. :Late in .March the manager (James C. Chambers) telephoned Eennell and asked him if he “was going-to come in and make a payment that day.” (He had paid $10.00 oh 10 March and $15.00 on 23 March.) Fennell replied he “couldn’t possibly come in and make a payment that day, because * * * [he] only had a few dollars.” Chambers said “he" was going to get that payment one way or the other” and that he was going to send a man around “to speak to * * * [his] boss.” Fennell said, “If you do that, it’s going to cost me my' job.” According to Fennell, Chambers replied that “he never cared if I worked again” and that “as far as he could see, I would never get a job aumywhere.” (Emphasis supplied.) About fifteen minutes later a man from GAC (not Chambers) did come to the office. He asked for Mr. Brown, the president, but Fennell fobbed him off on the sales manager (Mr. Hooper) because Hooper 'was aware of his problems and he was afraid that if the GAC '’man got in to Mr. Brown “the job would be gone.” Whatever Hooper said or did was effective. There is no evidence that Brown ever learned of the visit;

Despite the fact that he was now without' regular income Fennell continued his struggle to sell enough insurance to support his wife and family. He was not spectacularly successful but it appears he was making some progress. He sold a number of policies which the company, for one reason or another, had tó decline but, as Mr. Brown put it,' “L would say it’s • [Fennell’s 1 ] an average record for a man who' is’ new in the insurance business; you’re going to have policies taken with the zeal of trying to write business that a' moré experienced man would not take; and I would say it’s an áverage.”'

On 18 May Chambers dictated and caused to- be mailed to *215 Travelers, with copies to Mr. Brown and Fennell, the following letter:

“Traveler’s Insurance Company
Harford [sic]
Connecticut
RE: FENNELL, Robert C. [T.]
Apple and Bond Incorporated
1 E. Redwood Street
Baltimore 1, Maryland
“Gentlemen:
“It has been brought to our attention that a letter directed to you might bring about a satisfactory settlement of the long overdue indebtedness of the above. Mr. Fennell signed a Promisory [sic] Note with our company on June 1, 1960 in the amount of $1160.00. This loan was contracted to be repaid over a period of twenty months at $58.00 a month.
“There remains as of this date an unpaid balance of $1082.10 with no payments having been received since March 2$, 1961.
“All our attempts to have Mr. Fennell pay this moral and legal obligation have been in vain:
“We realize that the Traveler’s Insurance Company cannot act as a collection agency, however, we feel quite sure they do not condone this type of behavior; in as much as this man is directly or indirectly handling your funds and is acting as a representative of your company.
“It is our contention that when a man is having financial difficulties, the greater the pressure is exerted the more likely the tendency is to infringe and tip the till.
“We feel quite certain that if your office would discuss this matter with Mr. Fennell and his immediate supervisor, Mr. Herbert C. Brown, and direct the subject to contact us, we could enter into a mutually satisfac *216 tory arrangement for the liquidation of this account. “Thank you for your cooperation in this matter:
Very truly yours,
N
James C. Chambers
Manager”

The letter was seen by one or more officers of Travelers .in Hartford, Mr. Brown, Mr.

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Bluebook (online)
218 A.2d 492, 242 Md. 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fennell-v-gac-finance-corp-of-baltimore-no-3-md-1966.