Pennsylvania Iron Works Co. v. Vogt Machine Co.

96 S.W. 551, 139 Ky. 497, 1906 Ky. LEXIS 8
CourtCourt of Appeals of Kentucky
DecidedNovember 4, 1906
StatusPublished
Cited by29 cases

This text of 96 S.W. 551 (Pennsylvania Iron Works Co. v. Vogt Machine Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Iron Works Co. v. Vogt Machine Co., 96 S.W. 551, 139 Ky. 497, 1906 Ky. LEXIS 8 (Ky. Ct. App. 1906).

Opinion

Opinion op the Court by

John D. Carroll, Commissioner

Affirming.

The appellant is a Pennsylvania corporation and the appellee a Kentucky corporation, and they are rivals in the manufacture of ice machines.

In 1896 the appellant opened an office in Louisville, Ky., and placed it in charge of William Wilson. In 1897 appellant and appellee were competitive bidders for an ice machine desired by tbe Northern Lake Ice Company of Louisville. Appellee was tbe successful bidder, and when Wilson learned of this fact be wrote a letter to tbe Northern Lake Ice Company, tbe material parts of which áre as follows: “* * * Tbe reason we withdrew onr proposition is because yon telephoned ns that tbe tank was let to tbe Sulzer-Yogt Machine Co., and another reason is because we could not figure against a second-hand dealer. We do not recognize that company as ice machine builders, and they know absolutely nothing about tbe compression system. They never have done any work in connection with the compressed system, and at any time they do they will make a failure. * * * The material [499]*499they put in the work of this class is so far inferior to ours that we could not figure with them; and you will find this when the tank is erected. # * * Our shops and equipments are the largest in existence in our line, and we employ nothing hut union labor, whereby the other parties run a scab establishment and have not a mechanic in their whole establishment including the head of the concern. “We will not be slow to make this known to the different unions in this and other cities. * * * The above might seem strong, but it is our sentiment. We know the machine will not make its capacity with a tank built by parties who absolutely know nothing’ of it and will eventually give us a black eye as the other parties are interested in running down the compression system. They cannot make capacity with their own machines and could not try to do it with another make and the whole system will not be put in right. If it is not too late, you had, better reconsider the matter and let it to parties who know how to do it.”

This letter was written on a letter-head of the Pennsylvania Iron Works Company from Southern Office 44 Bull Block, Louisville, ITy., and was signed “Pennsylvania Iron Works Co., Wm. Wilson, Manager ‘Southern Office.”

After this time, the Sulzer-Vogt Machine Company changed its corporate name to the Henry Yogt Machine Company, but before changing its name, the Sulzer-Yogt Machine Company brought this action against appellant, alleging that appellant by the manager of its Southern office at Louisville wrote and delivered to the Northern Lake Ice Company the letter mentioned, the purpose of which was to induce the ice company to decline to award the contract to appellee, and that the letter was written falsely, wickedly [500]*500and "with the malicious intent to deprive the appellee of said contract, and to injure it in its reputation and business, and asked damages for the libelous matter in the sum of $20,000.

The appellant, in its answer, after traversing generally the allegation of the petition, denied that Wilson had any authority from or on behalf of it to write the letter, and that if Wilson did write such letter, it was entirely unauthorized. To this answer a reply was filed, in which it is averred that Wilson at the time he wrote the letter and for. a long time prior thereto, with the knowledge and approval of the appellant held himself out as the manager of the Southern office and as such manager with the knowledge and consent of the appellant was - conducting and carrying on business for it; and further that appellant after learning said letter had been written by Wilson acting as its agent, failed and refused to disavow or retract the same, but adopted and confirmed the act of Wilson in writing and delivering said letter, knowing the statements therein ,to be false and malicious. This completed the pleadings in the case, except an entry of record controverting the affirmative matter contained in the reply.

On a trial, appellee recovered judgment for $5,000, to reverse which this appeal is prosecuted; and it is urged, first, that the principal is not liable in damages for the unauthorized wrongful act of its agent; second, that there was no evidence upon which to submit to the jury the ratification of it; third, that there was. no evidence to authorize a finding of punitive damages; and fourth, that the petition does not state a cause of action.

It appears from the evidence that Wilson had been an employe of appellee, and in March, 1896, he so[501]*501licited employment from . appellant, and appellant wrote to appellee requesting information concerning Wilson. Soon after this date, Wilson became the agent of appellant. Appellant furnished the printed letterheads used by Wilson in his correspondence, but Wilson had put on the letter-heads the words “From Southern Office 44 Bull Block, Louisville, Ky.” These letter-heads Wilson used in his correspondence with appellant, and it knew that he was in the habit of signing its name by him as manager of its Southern office, that he was holding himself out as manager of its Southern office and this state of affairs continued until the latter part of December, 1899, when Wilson removed from Louisville. It also appears that appellant advertised extensively in trade journals, and always mentioned in the advertisement the fact that its Southern office was at 44 Bull Block, Louisville, Ky. Wilson also held himself out to the public generally as the agent of appellant, and testified that in the libelous letter complained of the word “we” refers to the Pennsylvania Iron Works Company.

The letter complained of fell into the hands of Dr. Satterwhite, who, as president of the board of commissioners for the Lakeland Asylum, was negotiating with different parties for the erection of an ice plant at the institution, and was delivered by Satterwhite to the president of appellee. It does not appear that appellant ever repudiated the letter written by Wilson except in its answer, and only there by denying that it wrote or authorized the writing of the letter by Wilson.

A corporation is liable in damages for the publication of a libel as it is for other torts. To establish its liability the publication must be shown to have [502]*502been made by its authority, or to have been ratified by it, or to have been made by one of its servants or agents in the scope of his employment and in the course of the business in which he was employed. And a corporation may sue for libel upon it as distinct from libel upon its individual members. Newell on Slander and Libel, p. 361; Washington Gas Light Co. v. Lansden, 172 U. S. 534; Townsend on Libel & Slander, sections 261-265; Peterson v. Western Union Telegraph Co., 75 Minn. 368.

The evidence shows very clearly that Wilson was the duly authorized agent of appellant and in charge of its Southern office at the time he wrote the letter; that it was written in the course of his business for appellant and was within the scope of his employment is made plain by the fact that it was written for the purpose of obtaining for the appellant the contract to build the ice machine for the Northern Lake Ice Company and to take this business away from appellee.

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Bluebook (online)
96 S.W. 551, 139 Ky. 497, 1906 Ky. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-iron-works-co-v-vogt-machine-co-kyctapp-1906.