Robert E. Hicks Corporation v. NATIONAL SALESMEN'S T. ASS'N

19 F.2d 963, 1927 U.S. App. LEXIS 2389
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 6, 1927
Docket3840
StatusPublished
Cited by12 cases

This text of 19 F.2d 963 (Robert E. Hicks Corporation v. NATIONAL SALESMEN'S T. ASS'N) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert E. Hicks Corporation v. NATIONAL SALESMEN'S T. ASS'N, 19 F.2d 963, 1927 U.S. App. LEXIS 2389 (7th Cir. 1927).

Opinion

ANDERSON, Circuit Judge.

The ap-pellee sued the appellants to enjoin them from making a “continued and continuous attack” upon appellee’s business, by pub-lisMng alleged false and defamatory articles concerning it. The complaint is full of conclusions and repetitions. It is unnecessarily long, covering 29 printed pages of the record. In substance it alleges that appellee conducts a correspondence school, and teaches individuals the art of salesmanship, and during the past 19 years has acquired considerable property and built up a large and lucrative business; that it gets its students by means of its good reputation, the recommendation of students and others, and by means of advertisements published in the leading magazines in the United States; that it charges tuition fees for its courses, and that when its students enroll they sign a contract to pay such tuition in installments; that it maintains a free employment department, through which it finds employment for and furnishes employment to a large number of its students; that it also publishes a magazine, which accepts and publishes advertisements; that appellants publish a magazine devoted almost exclusively to the subject of salesmanship, especially to direct selling to consumer; that these two magazines, and three others circulating in the same field and devoted to the same subjects, are competitors; that appellants entered into a conspiracy to destroy appellee and its business and its magazine, and to accomplish this purpose they formed the plan of making a “continued and continuous attack” upon appellee and its business by means of articles published in their magazine, and by writing letters and making statements derogatory to appellee and its business; that in pursuance of said conspiracy, and in furtherance of said plan, appellants published a series of articles, and wrote letters, containing false, malicious, and libelous statements of and concerning appellee, its courses of study, its magazine, its advertisements, and the magazines which published said advertisements, and wrote letters and made statements to publishers and editors of magazines, urging them not to carry appellee’s advertisements. It also sets forth at length *964 many publications, tbe like of which are sought to be enjoined in the future.

These publications make serious charges against appellee and its business, such as: Salesmanship cannot be taught by means of correspondence; success cannot be sold and delivered like a commodity; appellee advertises, not in express terms, but by implication, that it can and will procure lucrative employment for its students, and this service is offered as an inducement to prospective ' students to take this course in salesmanship, and thus it undertakes to sell success; it does not procure such positions, and hence does not deliver what it sells; it is selling a gold brick; such advertisements are dishonest and fraudulent; the persons using them are confidence destroyers, thieves, mail order crooks, direct selling jackals, frauds, crooks, vermin; they are taking money under false pretenses, and trading their honesty and their decency for dollars; their-methods are thieving contracts and schemes; in one publication appearing in its magazine the ap-pellee was guilty of forgery and dishonesty, and is a liar; and magazines and other publications which carry appellee’s advertisements are parties to the fraud, and are vermin, crooks, and scoundrels.

It is further alleged that appellee’s damages are irreparable; that, unless enjoined, appellants will continue their plan of attack, by continuing the publication of false and defamatory articles of a similar nature to those already published; and the prayer is that the appellants, and each of them and their representatives, “be enjoined and restrained from making or publishing in any future issues of their magazine or any other magazine or periodical the article or articles threatened to be published, or in any other way making, publishing, circulating or distributing any article, articles, writing or statements whatsoever in any way unfairly, misleadingly or falsely criticizing, reflecting upon or directly attacking appellee or its business or its methods or courses of study or advertisements, or intimidating or inducing or tending to intimidate or induce publishers or editors of magazines not to carry its advertisements, or students or prospective students not to take its courses of training or to discontinue the same, or to break their contracts with appellee or to refuse to make payments called for by such contracts.”

The complaint was verified, and upon it, and three affidavits filed in support of it, the injunction was granted. It is enough to say of the affidavits that they in no way strengthen the legal effect of the complaint.

The decree complained of enjoins the appellants “from continuing an attack on ap-pellee and its business, course of study and advertisements, by publishing in its November or any future issue of its magazine, or any other magazine or periodical, the article or articles of and concerning said appellee, and its business and methods, heretofore threatened by the appellants to be published in future issues of its magazine, and by publishing or circulating any articles or writings or statements whatsoever in any way falsely, unfairly, and misleadingly criticizing or reflecting upon said appellee, or its business, course of study, or advertisements, and from making any false, defamatory, unfair and misleading representations or statements directly or indirectly attacking the methods or business of the appellee.”

The appellants’ principal objection to. the injunction is that it enjoins the publication of mere libels, and that a court of equity is without jurisdiction to issue such injunction. The general rule is that a court of equity will not enjoin the publication of a libel. The operation of the rule is not affected by the fact that the false statements may injure the plaintiff in his business or as to his property, in the absence of acts of conspiracy, intimidation, or coercion. The appellee concedes this to be the rule, but contends that the averments of its complaint show such acts.

While the complaint alleges, in general terms, that the appellants formed and entered into a conspiracy, and conspired to do and to continue the acts complained of, and that these acts were acts of intimidation and coercion, there are no facts alleged to sustain these averments. The appellants are the Robert E. Hicks Corporation and Robert E. Hicks. Hicks is averred to be the president of the corporation and the editor of its'magazine. The alleged eo-eonspirators are the corporation and its president. The acts complained of are all alleged to be the acts of Hicks. These acts are the acts of Hicks individually, or as president of — that is, agent for — the corporation. There is no averment that any other officer or agent of the corporation acted with him. In Union Pacific Coal Co. v. United States, 173 F. 737, on page 745, the Circuit Court of Appeals of the Eighth Circuit said:

“But no ease has been called to our attention that sustains the position that an agent of a corporation may alone form an unlawful combination between himself and his corporation by his thoughts and acts within the scope of Ms agency, without the knowledge *965 or participation of any other agent or officer of the corporation.

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Bluebook (online)
19 F.2d 963, 1927 U.S. App. LEXIS 2389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-e-hicks-corporation-v-national-salesmens-t-assn-ca7-1927.