Gold Seal Chinchillas, Inc. v. State

420 P.2d 698, 69 Wash. 2d 828, 1966 Wash. LEXIS 1015
CourtWashington Supreme Court
DecidedNovember 25, 1966
Docket37858
StatusPublished
Cited by49 cases

This text of 420 P.2d 698 (Gold Seal Chinchillas, Inc. v. State) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gold Seal Chinchillas, Inc. v. State, 420 P.2d 698, 69 Wash. 2d 828, 1966 Wash. LEXIS 1015 (Wash. 1966).

Opinions

Finley, J.

On August 1, 1963, a complaint was filed by the consumer protection division of the Attorney General’s staff charging Gold Seal Chinchilla, Inc., and Gold Seal Chinchilla Association, and one Estel G. Streets (an officer of both corporations) with certain violations of the consumer protection laws, codified in chapter 19.86 RCW. On the same date, the office of the Attorney General issued a press release. It told about the initiation of the suit, the nature of the alleged violations, and it contained information specifically identifying the three defendants (appellants herein). These three defendants, apparently under the provisions of RCW 4.92.100, filed a claim with the State Auditor for damages suffered as the result of the allegedly defamatory conduct by the Attorney General and his staff in filing the consumer protection lawsuit and issuing the press release. The claim was denied by the State Auditor. A lawsuit was initiated against the State of Washington on December 5, 1963, by all three consumer-protection defendants, alleging they had suffered general and special damages, totaling $13 million, as a result of the allegedly tortious conduct of the Attorney General and his staff.

The consumer protection action against the parties was settled by a stipulated consent judgment entered on July 20, 1964, and need not concern us further. The libel action was dismissed by the trial court on June 15, 1964, for failure to state a claim upon which relief could be granted. Thereupon, plaintiffs in the libel action appealed. The issue presented in this appeal is whether the conduct of an executive officer of the state and his staff, namely, the Attorney [830]*830General and his staff, is absolutely privileged with respect to the publication of the allegedly libelous statements.

A motion to dismiss for failure to state a claim upon which relief could be granted under Rule 12(b) (6) of the Washington Rules of Pleading, Practice and Procedure requires the plaintiffs’ complaint to be scrutinized carefully. Dismissal is appropriate only if it can be said that there is no state of facts which the plaintiff could prove in support of entitling him to relief under his claim. Christensen v. Swedish Hospital, 59 Wn.2d 545, 368 P.2d 897 (1962); Sherwood v. Moxie School Dist., 58 Wn.2d 351, 363 P.2d 138 (1961); Conley v. Gibson, 355 U.S. 41 (1957).

, The defense of absolute privilege or immunity under the law of defamation avoids all liability. Prosser, Torts, § 109 (3d ed. 1964). Spalding v. Vilas, 161 U.S. 483 (1896). Thus, if the Attorney General and his staff were absolutely privileged regarding their actions in the instant matter, the motion to dismiss the appellants’ claim under Rule 12(b) (6) was properly granted.

The plaintiffs-appellants’ complaint in the instant action incorporates by reference and contains an attached copy of the claim submitted to the State Auditor. It is somewhat difficult to ascertain the specific acts alleged to be tortious, since the averments of the Auditor’s claim were not made in separately numbered paragraphs, as would be necessary under the provisions of Rule 10(b) of the Washington Rules of Pleading, Practice and Procedure. We assume from the written and oral arguments presented in behalf of appellants that their claim in no way refers to any alleged libelous matter contained in the complaint which was filed in the consumer protection action. Allegedly libelous statements, spoken or written by a party or counsel in the course of a judicial proceeding, are absolutely privileged if they are pertinent or material to the redress or relief sought, whether or not the statements are legally sufficient to obtain that relief. McClure v. Stretch, 20 Wn.2d 460, 147 P.2d 935 (1944); Johnston v. Schlarb, 7 Wn.2d 528, 110 P.2d 190, 134 A.L.R. 474 (1941).

Essentially, the problem herein is whether or not the [831]*831Attorney General and members of his staff were absolutely privileged in the issuance of the press release concerning the initiation of the litigation. The press release was furnished to national wire services and to interested trade journals by virtue of their particular sphere of activity; in this instance, the National Chinchilla Breeder and the Fur Age Weekly. Instead of paraphrasing or quoting only parts of this press release, the full text is as follows:

News Release — August 1, 1963
Pasco — Attorney General John J. O’Connell today filed suit in Franklin county Superior court against Gold Seal Chinchillas, Inc., and the Gold Seal Chinchilla Association, of Tacoma.
The Attorney General’s civil suit listed 14 separate specifications of alleged violations of the State Consumer Protection Act.
Also named as a defendant is Estell G. Streets, an officer of both corporations, and principal stockholder in Gold Seal Chinchilla, Inc., a corporation chartered by the state of Oregon. The association is a nonprofit cooperative agricultural organization doing business as a state of Washington corporation.
Principal offices for both corporations is 5446 South Washington, Tacoma. The corporations do business in 14 western states.
Attorney General O’Connell said in a statement following filing of the suit that the legal action is not an attack on the entire chinchilla raising industry in the state of Washington. A number of independent chinchilla ranchers were of great assistance to the Attorney General’s office in the investigation of the Gold Seal firms, O’Connell said.
The suit asks the court to issue a permanent injunction forbidding the various business practices complained of, that the court appoint a receiver for the assets of Gold Seal Chinchillas, Inc. and the defendant Street “to insure that said defendants are financially amenable to the legitimate claims of individuals throughout the state, who as a result of the defendants’ unfair and deceptive acts and practices have been induced to purchase animals from said defendants.”
Major points among the allegations of violation of the Consumer Protection act were:
1. “That it is practicable to raise chinchillas in the [832]*832home and large profits can be made in this manner. In truth and in fact in most cases it is not profitable to raise chinchillas in the home and large profits cannot be made in this manner. . . ”
2. “That the breeding and raising of chinchillas for pelts is easy and simple, taking just a few minutes per animal per day and that anyone can raise chinchillas and make a profit. In truth and in fact, chinchilla ranching is a highly specialized endeavor fraught with hazards for the inexperienced; . . . ”
3.

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Bluebook (online)
420 P.2d 698, 69 Wash. 2d 828, 1966 Wash. LEXIS 1015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gold-seal-chinchillas-inc-v-state-wash-1966.