Williams v. Burns

463 F. Supp. 1278, 1979 U.S. Dist. LEXIS 14778
CourtDistrict Court, D. Colorado
DecidedJanuary 29, 1979
DocketCiv. A. 78-K-260
StatusPublished
Cited by17 cases

This text of 463 F. Supp. 1278 (Williams v. Burns) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Burns, 463 F. Supp. 1278, 1979 U.S. Dist. LEXIS 14778 (D. Colo. 1979).

Opinion

ORDER

KANE, District Judge.

This is an action for defamation. Jurisdiction is based on diversity of citizenship. A motion to dismiss the complaint was denied on March 21, 1978. On the same date defendants’ motion for a more definite statement was granted. After filing the more definite statement, plaintiff was permitted to file an amended complaint. Upon receipt of the amended complaint, defendants filed motions to dismiss and to strike. Briefs were ordered and received after various requests for extensions of time. The motions are now ripe for determination.

The second amended complaint alleges that plaintiff was negotiating the sale of certain workover drilling rigs and barges to defendant The Anschutz Corporation in late February and early March, 1977. He claims that the U.S. Bankruptcy Court in Lafayette, Louisiana encouraged plaintiff to make this sale since plaintiff was offering this equipment for a sales price of $1,700,-000 plus his commission; and that if plaintiff did not find a buyer in the immediate future the court would approve an auction sale bid on this same equipment for a price of $970,000.

Plaintiff alleges that on or about March 4, 1977 defendant Burns made defamatory statements of and concerning plaintiff which were directly communicated and published to Mr. Phil Anschutz, president of defendant The Anschutz Corporation, “in a manner which evidenced malice and reckless disregard for the truth of the statements, and was destitute of heed or concern for consequences, especially foolishly heedless of danger, headlong, rash, and without thought or care of consequences.” The statements allegedly made by defendant Burns are set forth with specificity in the second amended complaint: (a) That plaintiff was unable to sell the rigs and barges to defendant The Anschutz Corporation because a completed sale of the rigs had already been made to other parties, and thus the rigs and barges were no longer available for sale; (b) That plaintiff’s proposed sale of the rigs and barges to defendant The Anschutz Corporation was fraudulent; (c) That plaintiff had misled defendant The Anschutz Corporation in his negotiations over the sale. As alleged, the actual words used were:

*1280 a. “That these rigs were not owned by Mr. Williams and had been sold at the bankruptcy sale.”
b. “The fraud was that Mr. Williams was going to get this $450,000 as a part of this transaction and put it in his own pocket to the detriment of about $400-600,000 worth of unsecured creditors who were going to get nothing.”
c. “Good Lord, I have just found out that these drilling barges are subject to the bankruptcy court and that they have been sold by order of the bankruptcy court; and I have also found out there is a whole bunch of unsecured creditors in that bankruptcy.”
d. “I don’t understand what Williams is trying to do, but my advice as your attorney is to have no more dealings with him.”
e. “That is the frosting for the cake.”
f. “It looked to me like there was fraud.”
g. “Leasco and the First National Bank of Chicago had bought them on February 10, 1977, on the courthouse steps.”

Plaintiff claims that defendant Burns was retained, one day prior to making the statements, by defendant The Anschutz Corporation for the purpose of providing the corporation with information on plaintiff and plaintiff’s ability to produce the rigs and barges for sale. Defendant Burns allegedly made statements which attributed fraud and misrepresentations on the part of plaintiff. Plaintiff claims that said statements were “attended by circumstances of malice and insult as well as a wanton and reckless disregard of plaintiff’s rights and feelings.”

In the second claim for relief plaintiff alleges that defendant The Anschutz Corporation specifically authorized the acts complained of herein, and, hence, that The Anschutz Corporation is vicariously liable for damages to be assessed against defendant Burns.

In the third claim for relief plaintiff alleges that defendant Wall is liable as a general partner of defendant Burns for damages to be assessed against defendant Burns.

In the fourth claim for relief plaintiff alleges that on or about March 4, 1977, defendant Burns made defamatory statements of and concerning plaintiff, specifically concerning plaintiff’s business reputation and reputation for veracity, and that he published them to Mr. Warren Rush, the “bankruptcy lawyer.” Plaintiff claims that “these statements were published with circumstances of malice and insult as well as a wanton and reckless disregard of plaintiff’s rights and feelings.”

The statements are:

a. “He’s a crook.”
b. “He’s trying to defraud the creditors.”
c. “He lied to me.”
d. “He’s trying to screw the creditors.”

In the fifth claim for relief plaintiff alleges that defendant The Anschutz Corporation is vicariously liable for damages to be assessed against defendant Bums for statements made to Mr. Warren Rush. Similarly, his sixth claim alleges that defendant Wall is liable as a general partner for damages to be assessed against defendant Burns as a result of statements made to Warren Rush.

The first, second and third claims for relief of plaintiff’s second amended complaint relate to the alleged defamatory statements made by defendant Burns to Mr. Phil Anschutz on or about March 4, 1977. We are not presently concerned with determining whether the alleged statements are defamatory or true. Rather, the issues are: (1) Was this communication a publication, and (2) if so, was it “qualifiedly privileged”?

Defendant The Anschutz Corporation argues that the second claim for relief fails to state a claim since “a corporation does not publish a slander when one employee or agent of the corporation communicates with another employee or agent of the corporation.” Defendant’s reliance on *1281 M. F. Patterson Dental Supply Co. v. Wadley, 401 F.2d 167 (10th Cir. 1968), is misplaced. In that case the Tenth Circuit, in applying Oklahoma law, held that “defamatory words regarding a discharged employee spoken by a supervisory employee in the presence and hearing of a fellow employee [did] not constitute a publication. . The rationale is that when one corporate employee relates a defamatory statement to a fellow employee, the corporation is but communicating with itself.” Id. at 171. In that case the court recognized that there is confusion among the jurisdictions whether to treat such a defamatory communication as unactionable for lack of publication or because it is a qualifiedly privileged occasion. Determining that Oklahoma had adopted the lack of publication concept, the court ruled accordingly. Such is not controlling here. Since the statements were allegedly made in Colorado, the lex loci delictus applies.

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Bluebook (online)
463 F. Supp. 1278, 1979 U.S. Dist. LEXIS 14778, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-burns-cod-1979.