Schmoldt v. Oakley

1964 OK 61, 390 P.2d 882, 1964 Okla. LEXIS 293
CourtSupreme Court of Oklahoma
DecidedMarch 17, 1964
Docket40367
StatusPublished
Cited by17 cases

This text of 1964 OK 61 (Schmoldt v. Oakley) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schmoldt v. Oakley, 1964 OK 61, 390 P.2d 882, 1964 Okla. LEXIS 293 (Okla. 1964).

Opinion

WELCH, Justice.

In 1961 plaintiff sold a new Pontiac automobile to Hans Schmoldt, defendant, delivering with it a warranty covering the first 12,000 miles that the car was driven. There was a transmission failure after the car had been driven approximately 30,000 miles which resulted in expense of $561.00 for repair thereof for which sum defendant made claim to plaintiff, exhibiting him a letter which he prepared to send the Pontiac Division of General Motors Corporation, and unless his claim was honored satisfactorily to him, he would make it known generally in the community that he had been ill treated. Upon the rejection of his claim defendant displayed upon his said Pontiac automobile a sign 7x 2½ feet in size which read:

“LIKE TO HAVE A REAL LEMON —BUY THIS PONTIAC BY GENERAL MOTORS Ed 3-4607 FOR DETAILS,”

and then drove and parked his car upon the street and in the vicinity of plaintiff’s place of business. Upon the sign, suspended by strings, defendant hung real lemons.

Plaintiff’s petition alleged wrongful interference with plaintiff’s business, that he was the only manufacturer’s franchised Pontiac dealer in the vicinity, and that defendant’s conduct was injurious to his business; that defendant’s conduct was motivated by an attempt by defendant to get from plaintiff that to which he was not entitled by resort to conduct which utilized threats, intimidation and coercion.

Material occurrences at trial are that after the close of plaintiff’s evidence the defendants moved for judgment denying the injunction. When that was overruled the defendants elected to stand on the alleged insufficiency of plaintiff’s evidence, and the court rendered judgment for plaintiff granting permanent injunction.

In their briefs the contention of counsel for the defendants is that the court’s equity jurisdiction does not extend to the enjoining of libel or slander, and that the court does not have the power to restrain freedom of speech and of the press, guaranteed by the United States Constitution, Amendments 1 and 14, Sec. 1, and the Oklahoma Constitution, Art. 2, Sec. 22.

Plaintiff does not oppose the assertion of lack of jurisdiction of a state court to restrain utterance of a libelous slanderous statement that amounts to nothing more than an expression of opinion, but asserts that equity jurisdiction extends to protect the property right of plaintiff as the exclusive holder of a Pontiac dealership in the area from publication of matter defaming a Pontiac car.

In considering the issues here it must be said at the outset that for the plaintiff to obtain the relief prayed in his petition he must bring himself within the exceptions to two general principles denying injunctive relief from publishing defamatory matters. The first general principle is that equity does not exercise jurisdiction to enjoin the commission of crimes, including criminal libel; and the second general principle is that the con *884 stitutional guaranty of free speech as a general rule prohibits both the courts and the Legislature from putting previous restraint on publications. That there are exceptions to these general principles is recognized, but the plaintiff in bringing his suit for such relief must take upon himself the burden of showing facts which bring his suit within these exceptions.

43 C.J.S. Injunctions § 13S, p. 680, reads:

“According to most authorities, the operation of the rule that equity will not restrain a mere libel or slander is not affected by the fact that the false statement may injure plaintiff in his business, profession, or trade, or as to his credit or property, in the absence of acts of conspiracy, intimidation or coercion, or where no breach of trust or of contract appears, because the party wronged has an adequate remedy at law by action for damages or criminal prosecution.”

Denial of injunctive relief against trade libels has generally been based upon one or more of three reasons: (1) the adequacy of the remedy at law, (2) the right of the defendant to a trial by jury, and (3) the constitutional right of free speech. These reasons are urged by the defendants, as plaintiffs in error here, reliance being placed upon the Marlin Fire Arms Company v. Shields, 171 N.Y. 384, 64 N.E. 163, 59 L.R.A. 310; Singer v. Romerrick Realty Corp., 255 App.Div. 715, 5 N.Y.S.2d 607; Dailey v. Superior Court of City and County of San Francisco et al., 112 Cal. 94, 44 P. 458, 32 L.R.A. 273, and Marx & Haas Jeans Clothing Co. v. Watson, 168 Mo. 133, 67 S.W. 391, 56 L.R.A. 951, as showing that the court may not or will not afford plaintiff injunctive relief under the circumstances.

Plaintiff sets forth the following quotation from the decision in American Malting Company v. Keitel, (C.C.2d) 209 F. 351, to-wit:

“In all that has been said we have not lost sight of the fact that the courts have sometimes issued injunctions to restrain the publication of false statements injurious to business or property. The cases in which such a jurisdiction has been assumed have been those which have involved conspiracy, intimidation, or coercion.”

It thus may be seen that the circumstances of the case at bar are considered by plaintiff to be within the conspiracy, intimidation or coercion exception to the rule set forth by the above quotation from 43 C.J.S. supra.

In support of an affirmance of the judgment or decree of the trial court plaintiff has strongly relied upon the Alabama case of Carter et al. v. Knapp Motor Co., 243 Ala. 600, 11 So.2d 383, 144 A.L.R. 1177, which held that an automobile dealer who has a valuable selling franchise from the manufacturer of automobiles is entitled to an injunction to restrain a defendant who, for the purpose of coercing the complainant to give him another car, exhibits in the street a car bearing a sign disparaging the quality of the cars sold by him. Stating that it was clearly shown that the defendants therein were activated by but one motive, that of coercing the complainant, who was under no obligation to do so, to give them an automobile, that court said the facts before it constituted an exception to the rule prohibiting the exercise of in-junctive relief against slander and libel where that which is harmed are property rights.

The facts involved in that case at first glance appear to have been similar to those in the case at bar. However, the briefs of the parties presented to the appellate court, published by A.L.R. in connection with the reported decision, do not show that the constitutional prohibition against restraint of free speech was presented, as here; nor did the opinion undertake any reconciliation with the constitutional inhibition against restraint of freedom of speech. And, in that particular a distinction between the case and the one before ■us exists. The same may be said of Menard v. Houle, 298 Mass. 546, 11 N.E.2d 436, *885 also relied upon by plaintiff. Both of those cases were considered in the W. Va. decision, Kwass v. Kersey, 139 W.Va. 497, 81 S.E.2d 237, 47 A.L.R.2d 695, which held that the defamation of a lawyer does not involve such interference with property rights as would authorize a suit for injunction.

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Bluebook (online)
1964 OK 61, 390 P.2d 882, 1964 Okla. LEXIS 293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schmoldt-v-oakley-okla-1964.