Sinclair Refining Company v. Fuller

79 S.W.2d 736, 190 Ark. 426, 1935 Ark. LEXIS 80
CourtSupreme Court of Arkansas
DecidedFebruary 25, 1935
Docket4-3713
StatusPublished
Cited by13 cases

This text of 79 S.W.2d 736 (Sinclair Refining Company v. Fuller) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinclair Refining Company v. Fuller, 79 S.W.2d 736, 190 Ark. 426, 1935 Ark. LEXIS 80 (Ark. 1935).

Opinion

Mehaffy, J.

The appellee, Homer Fuller, was in the employ of the appellant as a commission agent in the Hope, Arkansas, territory from November 10, 1930, until April 7, 1931. During that time he operated under two contracts, but they were identical except as to the amount of commissions. Under the contracts he was required to receive, care for and sell g’as, oils, lubricants and other products for appellant. He was not to extend credit to any customers without permission in writing from appellant. It was also his duty to assist in collecting the accounts in his territory, and to make reports daily or as often as the appellant required, reporting all sales, collections, deposits and remittances, and to remit promptly all collections. He was liable to the company for any shortage or losses chargeable to him in collections, deposits, or remittances, or in the products, equipment or property coming under his control. Either party had the right to terminate the contract at any time with or without cause.

■C. C. Rogers, a traveling auditor for appellant, audited the stock and equipment of appellee and reported a shortage of $439.41. The largest item of this shortage, according to this audit, was 1,677 gallons of H. C. gasoline.

Appellee contended that the gas shortage was not correct. As to the other accounts, appellee said he did not know whether he owed appellant or not, but soon thereafter paid $200 to the auditor.

On April 7, 1931, appellee was discharged, and Sidney Stanford was checked in as commission agent at Hope, and employed appellee to work for him. Shortly thereafter appellee was discharged by 'Stanford, after Stanford had had a conversation with Sanders.

Appellee brought suit for damages for slander, alleging that appellant’s agent, Sanders, stated to Stanford: “That the plaintiff had been checked up short; and, unless he paid to the company the value of such shortage, that he would be reported to the bonding company, and criminal prosecution would be instituted against him.” It was alleged that these words were spoken and published with the malicious intent of impeaching appellee’s honesty, integrity, veracity and reputation, and exposed him to public hate, contempt and ridicule; damaged him in his reputation, and caused him to suffer loss of business.

A motion was filed to make the complaint more specific, to which appellee filed a response stating in substance that E. C. Sanders, a special representative of the company, while engaged in the appellant’s business, and in furtherance thereof, uttered and published the following slanderous and inflammatory words against the appellee, by saying to Sidney Stanford: “He (meaning the plaintiff herein) is a crook. He took money from the company and went wrong, and he will do you the same way, and you should get rid of him.”

It was also alleged that Sanders said to one Thurman Rhodes, the following words: “Well, if that crooked --picked them up, I guess they are stolen and gone. He has stolen about $500' from us and made way with it.” There were some other charges, but those above mentioned are the principal allegations in the complaint.

The appellant filed answer denying the material allegations in the complaint, and alleging' that if Sanders, Sarsgard, or Rogers, or any other servants or agents published the slanderous and defamatory words, that none of the words were spoken, uttered or published by its authority or ratified by it, and none of the acts complained of were done by servants in the course of his employment, or within the scope of his authority. And, while denying that the words alleged to have been spoken were used by the agent in the course of employment, the answer alleged that the words used by its agents were true. The appellant also alleged that the communication was privileged.

In addition to the suit for slander, the complaint contained allegations of indebtedness on account, and asked for judgment for the amount due appellee from appellant. These allegations were denied, and a cross-complaint filed by appellant, asking judgment on the account against the appellee.

There was a jury trial, and a verdict and judgment against the appellant on the slander charge for $8,500, and on the account for $63. The case is here on appeal.

The statements which are made the basis of the slander action are that the agent of the appellant stated that the appellee was a “crook,” and “will do the same thing to you. You’d better get rid of him.” One of the definitions of “crook” by Webster is: “A person given to crooked or fraudulent practices; a swindler, sharper, thief, forger, or the like.”

It is not contended that the words used are not slanderous, but it is earnestly contended that they were not made by the agent in the scope of his authority, and were not authorized or ratified by appellant.

To establish the liability of the appellant, the utterance of the slander must be shown to have been made by its authority, or ratified by it, or to have been made by its servant or agent in the scope of his employment, and in the course of the business in which he is employed. Waters-Pierce Oil Co. v. Bridwell, 103 Ark. 345, 347 S. W. 64, and oases there cited.

The court said in the Waters-Pierce Oil Company case, supra: “The simple test is whether they were acts within the scope of his employment; not whether they were done while prosecuting the master’s business, but whether they were done by the servant in furtherance thereof, and were such as may fairly be said to have been authorized by him. By ‘authorized’ is not meant authority expressly conferred, but whether the act was such as was incident to the performance of the duties intrusted to him by the master, even though in opposition to his express and positive orders.”

In the instant case, there is no evidence of express authority to utter the slanderous words given to the agent. It is not necessary that the evidence show authority express or implied, to make the defamatory statements, but there must be some evidence from which an authority might be implied on the part of the agent, to represent the corporation, as within the apparent scope of his employment in regard to the slanderous statements.

Sanders testified that he is now the general agent for the Sinclair Refining Company at Little Rock; that in April and May, 1931, he was special representative for the company in the southeast and southwest half of Arkansas as sales supervisor, supervising-' the sales and operation of all agencies in this territory. His duties were to see that the duties of each individual were carried out, and the policies of the company carried out, by the entire organization in this territory. Sanders denies that he made the statements to Stanford that, he is alleged to have made. But whether he did or not make the statements has been settled by the verdict of the jury. Sanders testified that he had no authority to accuse anybody of crime, but he did have authority to see that agents carried out their duties in a business-like manner. When Sanders is alleged to have- made the statements, it was after Fuller had been checked out, shortly after Stanford had been checked in, and after Stanford had employed Fuller to work for him.

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Bluebook (online)
79 S.W.2d 736, 190 Ark. 426, 1935 Ark. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-refining-company-v-fuller-ark-1935.