James P. Caswell v. The Manhattan Fire & Marine Insurance Company

399 F.2d 417, 12 Fed. R. Serv. 2d 1043, 1968 U.S. App. LEXIS 6059
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 18, 1968
Docket25166
StatusPublished
Cited by26 cases

This text of 399 F.2d 417 (James P. Caswell v. The Manhattan Fire & Marine Insurance Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James P. Caswell v. The Manhattan Fire & Marine Insurance Company, 399 F.2d 417, 12 Fed. R. Serv. 2d 1043, 1968 U.S. App. LEXIS 6059 (5th Cir. 1968).

Opinion

GODBOLD, Circuit Judge:

The defendant, Manhattan Fire & Marine Insurance Co., was granted summary judgment. James P. Caswell, plaintiff, appeals. This Florida diversity case arose out of an allegedly libelous report published by the National Board of Fire Underwriters (now the American Insurance Association) to various insurance companies. 1

The district court granted summary judgment on the grounds that the report was not libelous per se 2 and that the record established defendant’s affirmative defense of privilege. Hence, the issue of whether the report was false was treated as immaterial.

The report was published following a fire which destroyed a portion of Cas-well’s restaurant in DeFuniak Springs, Florida, and contained a detailed account of an investigation of the cause of the fire. The report concluded:

In summary, it is noted that this fire is of incendiary origin, and because of the heavy financial obligations, including mortgages and delinquent rent as well as the drop-off of business, it appears to be financially desirable to the assured occupants. Suspicion is directed at JAMES P. CASWELL because of these circumstances as well as his presence in the building at the time the fire was discovered, and because of the lie he told regarding the $900 claimed to be in the safe. There was nothing developed to in any way connect the owner of the building with the loss.

The complaint alleged the report was libelous in that it accused plaintiff of committing arson and of lying. Defendant’s answer denied the libelous nature of the report and raised the affirmative defense of privilege. In the course of pre-trial discovery plaintiff sought a subpoena duces tecum directing the Chief Deputy Fire Marshal of the State of Florida to produce all records on Mr. and Mrs. Caswell. The district court granted the Fire Marshal’s motion to quash the subpoena, holding that any information in his files of an investigatory nature is privileged and immune to the discovery process.

Of the several errors assigned on appeal we consider three to merit discussion: whether the report was libelous per se, whether the publications alleged in the complaint were privileged, and whether the district court erred in granting the Fire Marshal’s motion to quash.

I

It is libelous per se under Florida law falsely to accuse another of the commission of a crime. LeMoine v. Spicer, 146 Fla. 758, 1 So.2d 730 (1941) ; see Richard v. Gray, 62 So.2d 597 (Fla. 1953) (en banc). The district court found the report summarized the physical evidence and statements from witnesses tending to show the fire was deliberately set and that plaintiff had an opportunity to set it and a motive for doing so. The court concluded, however, “the report contains the investigator’s conclusion that suspicion is directed to *420 ward the plaintiff,” and “nowhere in the report is there a definite accusation that the plaintiff committed arson or any other crime.” The report was held not libelous per se because there was no definite accusation of arson.

Exercising our best judgment to determine what the courts of Florida would hold had they, rather than we, been presented this question, 3 we conclude the district court erred in holding the report was not libelous per se.

Although the investigator who authored the report concluded only that under the circumstances suspicion was directed toward the plaintiff, the suspicion was supported in the body of the report by a comprehensive outline of the evidence gathered during the investigation. The tentative nature of the conclusion cannot alter the natural inference to be drawn by any reader from the facts set out in the report. 4 Those statements of facts alone, if false, are sufficient to state a libelous charge of arson.

The Florida Supreme Court long ago held it is not necessary for a published statement unequivocally to charge the crime of arson to be actionable per se. In Montgomery v. Knox, 23 Fla. 595, 3 So. 211 (1887), that court held the following statement actionable per se:

We have recently been defending a suit brought against this association by a citizen of Micanopy, who lost his stock of goods by fire during last October. There were circumstances which satisfied the board of directors that the fire was not accidental; consequently we did not feel that we had the right to - assess the members of this association to pay what we had reason to believe a fraudulent loss.

A contention that this statement was no more than an opinion or suspicion was rejected. We conclude, therefore, that under Florida law the report, if false and not privileged, contained a libelous charge of arson and is actionable without allegation or proof of special damages.

The complaint further alleged Caswell was libeled by the statement in the report that he lied about the $900 claimed to be in a safe at the time of the fire. Relying on Wade v. Sterling Gazette Co., 56 Ill.App.2d 101, 205 N.E.2d 44 (1965), the district court held a published statement which charges only that a person lied on one occasion is not libel per se.

In Richard v. Gray, supra, the Florida Supreme Court stated the general rule

that a publication is libelous per se, or actionable per se, if, when considered alone without innuendo: * * * (3) it tends to subject one to hatred, distrust, ridicule, contempt, or disgrace.

Id. 62 So.2d at 598. The general rule was applied in Walsh v. Miami Herald Publishing Co., 80 So.2d 669 (Fla.1955) (en banc). In Walsh the defendant newspaper published an account of a policeman’s testimony in court which was said to be “exactly opposite” to his own official report of an accident. The newspaper account referred only to this single instance of lying. Construing the account “as the common mind would naturally understand it,” Cooper v. Miami Herald Publishing Co., 159 Fla. 296, 31 So.2d 382 (1947), the Florida court held the libel was actionable per se because it tended to subject the officer to distrust. Although the court made reference to the fact that part of the plaintiff’s duties as a police officer was to testify in court, and the libel would thus tend to injure him .in his trade, it was pointed out that “even absent the element of injury to trade or *421 profession, imputations of untruthfulness have been considered actionable per se. See Restatement of Torts, Chapter 24, Sec. 569, Comment g.” 80 So.2d at 671. Such an observation, in a case involving but a single charge of lying, supports our conclusion the Florida Court would reject the doctrine espoused in Wade v. Sterling Gazette Co., supra.

Thus, as we view the Florida authorities the allegations of Casyrell’s, complaint are sufficient to state a claim of libel per se.

II

A second basis for the grant of summary judgment was the district court’s conclusion that the publications alleged in the complaint were privileged.

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Bluebook (online)
399 F.2d 417, 12 Fed. R. Serv. 2d 1043, 1968 U.S. App. LEXIS 6059, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-p-caswell-v-the-manhattan-fire-marine-insurance-company-ca5-1968.