Lewis v. Hayes

171 P. 293, 177 Cal. 587, 1918 Cal. LEXIS 646
California Supreme Court·Decided February 21, 1918·No. S. F. No. 7561.·Published·Cited by 12 cases

Opinion

VICTOR E. SHAW, J., pro tem.

Action to recover both general and special damages for a libel published by defendant and appellant of and concerning plaintiff.

Judgment went for plaintiff, from which, and an order denying defendant’s motion for a new trial, defendant appeals.

The case was here on a former appeal (Lewis v. Hayes, 165 Cal. 527, [Ann. Cas. 1914D, 148, 132 Pac. 122]), to the opinion in which reference is made for a full statement of the facts involved.

The claim for special damages as set out in the complaint was based upon the fact that at the time in question plaintiff was engaged in keeping a rooming-house and also conducted a dancing school, the revenues from both of which ventures were impaired. The jury by special verdict fixed plaintiff’s r damage for loss to the rooming-house business as three hundred dollars, and that for loss to the business of the dancing school at seven hundred dollars. The errors complained of relate chiefly to rulings of the court touching these special damages.

In the course of the trial it was for the first time made to conclusively appear that plaintiff’s sister was a partner with her in conducting both the rooming-house and dancing school. Appellant insists that, since the loss was sustained by the copartnership, plaintiff alone could not maintain the action for the recovery of special damage suffered by her as a member thereof, and,, hence, it is claimed the court erred in denying defendant’s motion, seasonably made at the close of the evidence, to withdraw from the jury the issue as to special damages. *589 This contention must be sustained. Any actual loss to plaintiff measurable in money was the result of damage to the copartnership business in which she and her sister Helen were jointly interested. Her special damage, as appeared from her testimony, was based solely and alone upon the damage to the business of the firm of which she was a member. If its business was damaged by any wrongful act of defend- ^ ant, then, under section 382 of the Code of Civil Procedure, - the partners jointly interested therein should be joined as plaintiffs in an action where recovery may be had for the whole injury to the copartnership business. The law will not tolerate a division of a joint right of action into several actions. (Nightingale v. Scannell, 6 Cal. 506, [65 Am. Dec. 525]; Hughes v. Boring, 16 Cal. 81.) In volume 18, American and English Encyclopedia of Law, page 1055, the author says: “It is not, however, necessary that partners against or concerning whom words actionable per se have been uttered or published, should join in seeking their remedy, for one partner may in a separate suit recover whatever damages have been caused to him by the libel or slander, but he cam not recover for any special damage which has residted to the firm as such.” (Italics ours.) (See, also, Robinson v. Merchant, 7 Q. B. 918; Havemeyer v. Fuller, 60 How. Pr. (N. Y.) 316.) Respondent, in support of the action of the court, has cited a number of eases, among them, Rosenwald v. Hammerstein, 12 Daly (N. Y.), 377; Constitution Pub. Co. v. Way, 94 Ga. 120, [21 S. E. 139], None of them, however, are applicable to the facts here presented, but are to the effect that where the libelous article concerns both a partnership and its members individually, such individuals may sue separately for their individual damages, but, as said in Collier v. Postum Cereal Co., Ltd., 150 App. Div. 169, [134 N. Y. Supp. 847], “they do not hold that each may recover in a separate suit the damages caused to him as a member of the firm,” which is precisely what plaintiff is seeking to do in this action. It would seem clear that if the recovery sought by the individual partner was for special damage only arising from loss to the business, he could not maintain such action, since he would not be affected as an individual. Neither, where partners sue jointly for damages to the firm business, could they recover general damages sustained by each as individual members of the firm. As said in the case *590 last cited, “We think that the converse of that proposition holds good and that the true rule is that the damages to the copartnership must be recovered by the partners jointly, and that damages to the partners individually must be recovered by the partners separately; otherwise it would be necessary to have a partnership accounting in a libel suit, and we can perceive no reason for making a distinction as far as the point under consideration is concerned, between actions for libel and those for other torts, or even for breach of contract.”

Our conclusion is that the court erred in not granting defendant’s motion to withdraw from the jury all consideration of the question relating to special damages. Under her own testimony, plaintiff was not entitled to recover such damage, and the jury should have been instructed accordingly. This view renders it unnecessary to discuss other alleged errors touching the subject of such damage.

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Lewis v. Hayes, 171 P. 293, 177 Cal. 587, 1918 Cal. LEXIS 646 (Cal. 1918).

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