Trenton Mutual Life & Fire Insurance v. Perrine

23 N.J.L. 402
CourtSupreme Court of New Jersey
DecidedNovember 15, 1852
StatusPublished
Cited by4 cases

This text of 23 N.J.L. 402 (Trenton Mutual Life & Fire Insurance v. Perrine) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trenton Mutual Life & Fire Insurance v. Perrine, 23 N.J.L. 402 (N.J. 1852).

Opinion

The Chief Justice

delivered the opinion of the court. •

The first and most material question raised by the demurrer in this case is, whether an action for a libel may be maintained by a corporation aggregate. The question is one, so far as I am aware, of first impression. No case was cited on the argument, nor have my subsequent researches led to one in which the point has been expressly decided. There is no precedent to be found in the books of a declaration in such an action. This fact, in itself, creates a strong presumption, though by no means conclusive, against the right of action. The weight to be attached to the mere absence of all precedent, will, however, be materially diminished, when it is remembered that the great body of the existing law in regard to corporations is the growth of the present century; that within the last fifty years it was first decided in Westminster hall that a corporation aggregate was liable eiviliter for its torts; and, at a period still more recent, it was there first expressly adjudged that a corporation, like an individual, is liable to indictment. Perhaps a stronger presumption against the right of a corporation to maintain an action for libel may be found in the fact, that the prevailing sentiment of the profession is against it. All experience teaches that there are few more reliable tests of sound legal principle or correct practice than the pervading sentiment of an intelligent bar. These circumstances are grounds for caution in arriving at a different conclusion, though they certainly afford no reason for hesitating to tread wherever [408]*408sound principles may point the way, however new or untrodden the path.

If it be asked why, upon principle, an action may not be maintained by a corporation for libel, it will be difficult to find a satisfactory reply. It cannot be denied that a corporation may have a character for stability, soundness, and fair dealing in the way of its trade or business; that this character is as essential, nay more so, to its prosperity and success than that of a private individual; that banks, insurance companies, and money corporations generally, whose operations enter largely into the business of every community, depend mainly upon their reputation . in the community for their success, and often for their very existence. ISlor can it be denied that the character of corporations is more easily and more deeply affected 'by false and malicious allegations than that of private individuals ; nor that the business of a corporation is more prejudiced by an evil name, by distrust of its responsibility, or of the character of its officers, than that of an individual. If, then, the reputation of a corporation and that of its officers be essential to its prosperity, if it may suffer pecuniary loss, and even the utter destruction of its pecuniary interests from false and malicious representations, why should it not be entitled to pecuniary redress. Wherever the common law gives a right or prohibits an injury, it also gives a remedy by action. 3 Bl. Com. 23.

And in all cases -where a man has a temporal loss or damage by the wrong of another, he may have an action upon the case to be repaired in damages. 1 Com. Dig. 272, “ Action upon the Case” A.

And this general rule, says Starkie, embraces all cases where any special damage is immediately occasioned by a false Communication of noxious tendency. 1 Stark, on Slan. (2d ed.) 2.

It may be admitted, without prejudice to the present inquiry, that no words spoken or written of a corporation are in themselves actionable, but that the corporation must always show special damage in order to recover. And the reason for the distinction may be found in the fact, that a corporation has not, like an individual, any character to be affected by the [409]*409libel, independent of its trade or business. It has no individual personal character, in which it can suffer an injury independent of its pecuniary affairs ; and therefore, in an action for libel which affects its trade or business, the corporation must show that the words, not being in themselves actionable, have occasioned a special pecuniary loss or damage.

This consideration will relieve the question of another objection, which was urged with much zeal upon the argument, viz. that false and malicious words spoken or written of a corporation do not fall within any approved definition of libel or slander. By these, libel is defined to consist of personal imputations upon private men or magistrates, living or dead. For example, a libel is defined to be any writing, picture, or other sign tending, without lawful excuse, to injure the character of individuals.” Cooke on Def. 2.

It must be admitted that corporations do not fall within the scope of these, definitions. But it is also true that the definitions are equally inapplicable to the subject of numerous actions brought by individuals, which are included under the general denomination of actions for slander. Thus an action may he maintained for slander of title of real or personal estate, which contains no personal imputation and does not affect the character of either individuals or magistrates, living or dead. Gerrard v. Dickenson, Cro. Eliz. 196; 1 Stark, on Slan. (2d ed.) 191.

So it is libellous for one newspaper to publish of another newspaper that it is low in circulation, inasmuch as it affects the sale and profits to be made by advertising. Heriot v. Stewart, 1 Esp. R. 437.

So words are actionable when they throw discredit on a particular commodity in which a party deals, as to say of a trader, “ that he hath nothing but rotten goods in his shop.” Burnet v. Wells, 12 Mod. 420 ; Cro. Car. 570. Or to charge a bookseller falsely with having published an absurd poem. Tabart v. Tipper, 1 Camp. R. 330. Or to say of a ship, that she is broken and unfit to proceed to sea. 2 Chit. Pl. (7th ed.) 641 K. Or to publish of a stage coach, that it is dangerous to travel in. Cooke on Def. 314.

[410]*410The very recent case of Swan v. Tappan, 5 Cush. 110, was an action by an author for a publication disparaging the character of school books in which the plaintiff had a copy-right. The action failed for a defect in the declaration, but no doubt was expressed that, in principle, the action was sustainable. These instances are cited from a numerous and familiar class of cases, to be found in the books of actions, denominated actions for slander or libel, but which are in truth special actions on the case for the recovery of damages actually sustained by the plaintiff in consequence of the false and malicious representations of the defendant, affecting the plaintiff’s property. They do not fall within any recognized definition of slander or libel; they contain no. personal imputation. They do not affect the character either of individuals or magistrates ; but, like any other tort, they occasion damage to the property of the plaintiff, and therefore they are actionable. In all these cases, the ground of recovery is special damage actually sustained in consequence of the slander; and it may be affirmed, as a general principle, that when damages have actually been sustained, the party aggrieved may maintain an action for the malicious publication of any untruth. Sheppard v. Wakeman, 1 Lev. 53 ; Moore v. Meagher, 1

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23 N.J.L. 402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trenton-mutual-life-fire-insurance-v-perrine-nj-1852.