Korry v. International Telephone & Telegraph Corp.

444 F. Supp. 193, 1978 U.S. Dist. LEXIS 19646
CourtDistrict Court, S.D. New York
DecidedFebruary 9, 1978
Docket77 Civ. 3441
StatusPublished
Cited by37 cases

This text of 444 F. Supp. 193 (Korry v. International Telephone & Telegraph Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Korry v. International Telephone & Telegraph Corp., 444 F. Supp. 193, 1978 U.S. Dist. LEXIS 19646 (S.D.N.Y. 1978).

Opinion

MEMORANDUM AND ORDER

WHITMAN KNAPP, District Judge.

Edward M. Korry, former United States Ambassador to Chile, charges in this diversity action that defendant International Telephone & Telegraph (“ITT”) through its employees, and defendant Harold Geneen, its president, along with others not charged, conspired to and did injure him through various false statements. 1 Defendants have moved to dismiss, raising statute of limitations objections and attacking the sufficiency of each of plaintiff’s claims. 2 We dismiss the complaint but grant plaintiff leave to replead some claims.

The complaint purports to state a cause of action on five different theories. The first claim, which plaintiff characterizes as based on a theory of prima facie tort, contains allegations relied upon in each of the other claims. Taking those allegations as true, it emerges that in 1973 ITT employees made false statements before three United States Senate Committees and Subcommittees and to persons associated with those committees, to the effect that (a) ITT had not been involved in efforts to subvert Chilean elections or undermine the government of Salvatore Allende, but (b) that Ambassador Korry knew of, and had responsibility for, ITT involvement in such efforts. These statements were part of a larger course of conduct calculated to injure Kor *195 ry, upon which ITT embarked in order to protect its reputation, protect an ITT claim filed with the Overseas Private Investment Corporation (“OPIC”), shelter itself from possible civil and criminal liability, and to satisfy a vindictive desire to harm Korry. The result was the destruction of Korry’s ability to pursue a career in either international relations or journalism. The first claim contains general allegations that the conspiratorial “course of conduct” continues into the present and was not confined to the making of statements. Nowhere, however, does it mention any act other than the making of statements, or describe any statement made after April of 1973.

The other four claims rely on the core of facts set forth in the first. The second claim, styled as an action for damages for interference with economic relations, contains the added allegation that the defendants’ acts were calculated to, and did, interfere with an employment contract Korry entered into in June, 1973, with the United Nations Association. The third claim is for damages for intentional infliction of emotional distress. The fourth, a slander claim, additionally alleges that in December, 1976, one Robert Berellez, an ITT employee, told Justice Department employees that Korry had been privy to ITT plans to interfere with Chilean politics; that at an ITT shareholders’ meeting in May, 1977, one Howard Aibel, another ITT employee, falsely charged Korry with fabricating reports about ITT operations in Chile; that defendant Geneen, at the same shareholders’ meeting, called Korry a communist and described him as “a bitter, disillusioned man, who has forsaken his country.” In his fifth and final claim, plaintiff invokes all the facts previously asserted in support of a demand for injunctive relief.

Defendants move to dismiss the first claim, based on prima facie tort, for failure to state a cause of action. We grant that motion. Plaintiff alleges that defendants’ actions were motivated by four distinct desires: (a) to injure him; (b) to protect ITT’s reputation; (c) to shield the corporation from possible liability; and (d) to protect ITT’s OPIC claim. Since it is well settled that a claim of prima facie tort does not lie where the defendants’ action has any motive other than a desire to injure a plaintiff, Benton v. Kennedy-Van Suan Mfg. & Eng. Corp. (1st Dept.1956) 2 A.D.2d 27, 28-29, 152 N.Y.S.2d 955, 957-58; Glenn v. Advertising Publications (S.D.N.Y.1966) 251 F.Supp. 889, 906, the first claim must be dismissed for failure to state a claim on which relief can be granted.

Defendants contend that plaintiff’s second and third claims are time-barred. We agree. In applying statutes of limitations, we look to the essence of plaintiff’s claim, not the label he chooses to tag onto it. Morrison v. National Broadcasting Co. (1967) 19 N.Y.2d 453, 459, 280 N.Y.S. 641, 644. Any other rule would allow a plaintiff to evade the strictures of limitations statutes simply by clever characterization of claims. Since, in the instant case, all claims are for redress of injury to reputation, we find that New York’s one-year Statute of Limitations, C.P.L.R. § 215(3), for libel and slander actions, should apply. Morrison, supra; Noel v. Interboro Mutual Indemnity Insurance Co. (1st Dept.1968) 31 A.D.2d 54, 295 N.Y.S.2d 399, 400. Application of the one-year statute would leave actionable only those injuries attributable to statements made on or after July 18, 1976.

To avoid this result, plaintiff urges that the claimed wrongs are part of a “continuing conspiracy.” He contends that the Statute of Limitations should not begin to run as to any act until the course of conduct had ended — in this case May, 1977. We cannot accept this reasoning. Periods of limitations must, by statute, “be computed from the time the cause of action accrued.” C.P.L.R. § 203(a). In a civil conspiracy action, the conspiracy itself is not actionable, but recovery may be had for the injury caused by specific acts. A person harmed may sue at the time each such act occurs, without having to wait until the termination of the conspiracy. The Statute of Limitations therefore commences to run with respect to each act when it occurs. *196 Rutkin v. Reinfeld (2d Cir. 1956) 229 F.2d 248, 251, cert. denied 352 U.S. 844, 77 S.Ct. 50, 1 L.Ed.2d 60. Nor does defendants’ alleged repetition of any particular wrong require a different result. Repeated wrongs “are treated as separate rights of action and the Statute of Limitations begins to run as to each . . . upon its commission.” Baxter v. State (Ct. of Claims 1947) 189 Misc. 525, 72 N.Y.S.2d 337, 340, aff’d (4th Dept.1948) 273 App.Div. 839, 77 N.Y.S.2d 796. Also see Sachs v. Cluett Peabody & Co. (1st Dept.1943) 265 App.Div. 497, 39 N.Y.S.2d 853, 857, aff’d (1944) 291 N.Y. 772, 53 N.E.2d 241; Cross v. State (Ct. of Claims 1972) 72 Misc.2d 247, 338 N.Y.S.2d 469, 472. 3

Our holding that statements made prior to July 18, 1976 are not actionable leaves the second and third claims without substance. Remaining are only conclusory allegations that injury-causing acts took place on or after that date. Accordingly, those causes of action are dismissed. We do, however, grant plaintiff leave to replead them within 30 days if he can allege, with the requisite specificity, actionable wrongs attributable to defendants, committed on or after July 18, 1976.

Defendants also move to dismiss the fourth claim, for slander, for failure to state a cause of action.

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Bluebook (online)
444 F. Supp. 193, 1978 U.S. Dist. LEXIS 19646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/korry-v-international-telephone-telegraph-corp-nysd-1978.