Jimeno v. Commonwealth Home Builders

191 P. 64, 47 Cal. App. 660, 1920 Cal. App. LEXIS 511
CourtCalifornia Court of Appeal
DecidedMay 21, 1920
DocketCiv. No. 3187.
StatusPublished
Cited by11 cases

This text of 191 P. 64 (Jimeno v. Commonwealth Home Builders) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jimeno v. Commonwealth Home Builders, 191 P. 64, 47 Cal. App. 660, 1920 Cal. App. LEXIS 511 (Cal. Ct. App. 1920).

Opinion

FINLAYSON, P. J.

This is an action for libel. Defendants demurred to plaintiff’s second amended complaint upon the grounds that it does not state a cause of action and that, in certain particulars, it is uncertain, ambiguous, and unintelligible. The demurrer was sustained. Plaintiff declined further to amend, and judgment for defendants was. entered accordingly. From that judgment plaintiff appeals. ■>

The extrinsic circumstances alleged in the complaint by way of inducement and to be considered in connection with the alleged libel are these: Plaintiff, an investment broker, dealing in real estate and mining investments, was, at all times mentioned in the complaint, a stockholder in the defendant corporation, Commonwealth Home Builders, and chairman of a committee of stockholders organized to investigate the affairs of that corporation and protect the rights and interests of all its stockholders. The investigating committee was organized at the instance of plaintiff, with the advice and assistance of one C. E. Norton, a reputable auditor. Prior to the publication complained of, plaintiff was a stockholder in, and had been active in the promotion of, the Stone Chief Mining Company, a corporation.

The complaint alleges that, for the purpose of exposing plaintiff to contempt, hatred, ridicule, and obloquy, defendants maliciously published and circulated in the “American Globe,” a magazine, among the stockholders of the defendant corporation, of and concerning plaintiff, the following false and defamatory articles:

“NORTON’S FILIBUSTER EXPEDITION ON COMMONWEATH HOME BUILDERS—A FIZZLE.
“C. E. Norton, President of Original Home Builders of Los Angeles, as well as trustee for a little more than half of the stock, also a director of the Southern California Home *662 Builders, in conjunction with Mr. Jimeno, an official and promoter of the Stone Chief Mining Co., and a stockholder of Commonwealth Home Builders, entertained some twenty-five stockholders of Commonwealth Home Builders, in the office of the Stone Chief Mining Co. on the evening of December 1, 1916. The editor of the American Globe received no notice of this happening, but did manage to secure just the information desired by stockholders who do not desire their wealthy corporation wrecked. . . . The little gathering seemed to be a cooked and dried affair. ... As usual money was desired. It seems that the 4000 stockholders are to contribute on the assessment basis of so much per share (to these men) which has not the sanction of the present sane and responsible administration, and no statement rendered— no questions asked. An unauthorized bill for $150 was presented by Mr. Jimeno, of the Stone Chief Mining Co. . . . ”
“PROTECTIVE SYSTEM OF RUINING STOCKHOLDERS.
“Money greed will cause some people to do anything as long as they are able to keep out of jail. . . . The stockholder calls on a so-called auditor about whose antecedents no one knows anything, and whose record in corporation activities has never shown a clean winding up of affairs for stockholders of the other corporations concerned. The master brain (?) so steeped with greed for gold as to care nothing for the majority of stockholders’ interests, whom he terms ‘boobs’ autocratically rises to the occasion. He maps out the campaign in such a manner as to prevent himself from being caught on conspiracy-to-wreck-corp oration charges. ‘This will cost you nothing. I will get you in control of that corporation and between you and me we ought to milk it for a long time.’ ‘But I do not understand the building and investment company business, ’ replies the stockholder. ‘I have had some experience in oil, mining and wildcat schemes, though, if that would do any good. ’ Any office boy can do what you are to do, replied the self-styled auditor. . . . I will have another man look for certain information which we twist into such shape as to put the management of that building and investment company on the defensive. Anything to arouse suspicion and shatter confidence and the credit of the company. We don’t care how many *663 business deals we knock out, thereby depriving the stockholders of future profits, neither, do we care how much damage we may cause the company otherwise, or how much expense we put it to, all of which affects the assets of stockholders. . . . Stockholders who satisfy themselves about the character and former business records of such ‘Money Greed Meddlers’ and corporation wreckers . . . would hardly be inclined to give those ‘Intolerance Individuals’their support, proxies or votes. They have nothing at stake. . . . Protective Committee (1) composed of so-called auditor and stockholder receive: (1) Contributions from stockholders to carry on campaign of wrecking their own company, of which no account is given and which could run into some thousands of dollars. . . . Pine business for the auditor and stockholder but rather coarse financiering.”

Respondents have not favored us with any printed points or authorities, and we are, therefore, somewhat in the dark as to the precise reasons for their attack upon the complaint. At the oral argument, their counsel contented themselves with the bare statement that nowhere in the complaint has plaintiff alleged any special damages. Prom this we infer that the chief, if not the only, ground relied upon by respondents, is the absence of an allegation of special damages. If, as we believe, the alleged defamatory publication is libelous per se, then no allegation of special damages is necessary. The courts have long recognized a distinction between written and oral defamation. While whatever charge will sustain a suit for slander when the words are merely spoken will sustain a suit for libel if they are written or printed and published, yet many charges which if merely spoken of another would not be actionable without proof of special damages will be libelous per se when written or printed and published. [1] Accordingly, it may be stated as a general proposition that words written or printed may be libelous and actionable per se, that is, actionable without any allegations of special damages, if they tend to expose the plaintiff to public hatred, contempt, ridicule, aversion, or disgrace, and to induce an evil opinion of him in the minds of right-thinking persons and deprive him of their friendly intercourse an'd society, even though the same words, if spoken, would not have been actionable. (25 Cyc. 250.) [2] If, on its face, the publication is of a character that usually, *664 ordinarily, and naturally detracts from the reputation and standing of the plaintiff, and tends proximately and naturally to deprive him of the confidence and esteem of others, thus causing him to be shunned or avoided, it is libelous per se, and special damages need not be alleged or proved. From such a publication the law presumes general damages as a natural and probable consequence.

Some of the defamatory language in the libelous articles published by defendants manifestly refers solely to the auditor, C. B. Norton.

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Bluebook (online)
191 P. 64, 47 Cal. App. 660, 1920 Cal. App. LEXIS 511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jimeno-v-commonwealth-home-builders-calctapp-1920.