World Oil Co. v. Hicks

75 S.W.2d 905
CourtCourt of Appeals of Texas
DecidedSeptember 28, 1934
DocketNo. 13007
StatusPublished
Cited by9 cases

This text of 75 S.W.2d 905 (World Oil Co. v. Hicks) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
World Oil Co. v. Hicks, 75 S.W.2d 905 (Tex. Ct. App. 1934).

Opinions

DUNKLIN, Chief Justice.

This suit was instituted by L. R. Hicks, Jr., against Chester R. Bunker and the World Oil Company, a corporation, to recover damages for alleged libel against the plaintiff, the nature of which will be hereinafter noted. After its institution, the plaintiff died, and his widow and sole legatee, Mrs'. Catherine Hicks, together with John C. Hicks, independent executor of his last will and testament, were, by leave of court, substituted as plaintiffs, and the World Oil Company, Inc., by and through George H. Campbell, its receiver, has prosecuted this appeal from a judgment rendered against it.

The judgment was against both the oil company and Bunker jointly. It recites that Bunker had been duly served and had filed an answer in the case but did not appear at the trial.

The record shows that the World Oil Company, through its receiver, who had been duly appointed as such by the federal court, filed pleadings, and upon the trial the contest was solely between him and the plaintiffs. No appeal has been prosecuted by Bunker.

Another and separate suit had been filed by L. R. Hicks, Jr., against the World Oil Company and Chester R. Bunker to recover on an alleged contract of employment of him by defendants for services rendered as a broker in handling stocks belonging to the company. In that suit Hicks failed to recover against Bunker, but recovered a judgment against the company for $45,000, from which the oil company prosecuted an appeal, and upon appeal that judgment was reversed and judgment was rendered in favor of the oil company, as shown in opinion by this court, reported in 19 S.W.(2d) 605, and affirmed by Supreme Court, as reported in Hicks v. World Oil Co., 34 S.W.(2d) 581. Bunker,. as president of the oil company, then undertook to make a supersedeas bond in order to suspend the execution of the judgment pending the appeal, and to that end wrote and mailed a letter addressed to all the stockholders in the defendant company appealing for contributions necessary to make the supersedeas bond.

This suit for libel was based on certain statements contained in that letter. The letter was replete with assertions to the effect that the judgment recovered by Hicks was without any foundation, in that the oil company had never employed him as a broker as he claimed. It referred to Hicks as a broker who, together with other brokers, had been boosting the World Oil Company stock in their market letters, but that he had not been authorized so to do, and therefore the company was not liable to him for the commissions for which he had recovered judgment in the sum of $45,000.

The charge of libel was based chiefly upon the following statements in the letter: “These so-called brokers and bucket shops are operating in open violation of the law. They are selling stock that they haven’t got and when the accounts are paid up they are faking to make delivery right and left and as they are not very strong financially, the client is going to'be left holding the sack and in lots of cases, is going to suffer complete loss of his entire investment made with these bucket shops. The things that these brokers have said about the companies that I am en[907]*907deavoring to head have hurt us. The lies that' they have been putting out on us have been detrimental to our best interest and they have succeeded in some cases in frightening some of my stockholders into selling their stock at a ridiculous price, but I am glad to say that the great majority of the World Oil Company and the World Exploration Company stockholders are standing pat and are seeking their information from company headquarters and are not believing the lies that are being put out by these parasites that are masquerading under the name of brokers.”

It was alleged that that statement referred to, and was intended to include, the plaintiff Hicks as well as other brokers.

The contents of the letter on which this suit was instituted are more fully set out in the opinion of the Texarkana Court of Civil Appeals on a former appeal of this case and appearing in 46 S.W.(2d) 394. That court held that the letter in question was qualifiedly privileged, and that, in order to recover, the burden was upon the plaintiff to prove that when written it was prompted by actual malice towards Hicks. The Supreme Court denied a writ of error in that case.

In answer to special issues, the jury returned findings sustaining plaintiff’s allegations of libel by Bunker in writing the letter above noted; that the same was prompted by malice towards the plaintiff; and that the directors of the oil company wrote and sent out the letter, and in so doing wore actuated by malice; and assessing actual and financial damages for injuries to the character, feelings, and health of the plaintiff during his lifetime in the sum of $50,000, and punitive damages in the sum of $15,000; and judgment was entered in plaintiff’s favor for the damages so assessed, aggregating $65,-000.

The first issue submitted to the jury, inquiring whether or not the letter on which this suit was based referred to Hicks, was not subject to the objection made that the same involved the construction of a written instrument by the court, and therefore not a proper issue to be determined by the jury. We believe it clear that the jury must necessarily have construed the word “referred” as an intention to refer to Hicks as one of the brokers operating bucket shops who were parasites and thieves and who had put out propaganda and lying statements about companies and were operating in violation of the law. Nor was it necessary to further instruct the jury, as requested by appellant, that in answering that issue they should consider all the facts and circumstances surrounding and prior to the writing of the letter in determining whether the letter did refer to plaintiff as one of the brokers. We overrule the further assignment to the refusal by the court of appellant’s requested instruction that “malice can not be inferred alone from the letter or any recitation therein.”

In I. & G. N. Ry. v. Edmundson, 222 S. W. 181,184, which was a suit for libel based on a privileged communication, and therefore the burden was upon plaintiff to show malice in order to sustain the recovery, this was said by the Commission of Appeals: “Actual or express malice need not be proven by direct or extrinsic evidence. It may be inferred from the relation of the parties, the circumstances attending the publication, the terms of the publication itself, and from the words or acts of the defendant before, at, or after the time of the communication; but it must be evidence from which the jury may infer malice existing at the time of publication and actuating it. Gassett v. Gilbert, 6 Gray (Mass.) 94; Jackson v. Hopperton [16 C. B. (N. S.) 829], supra; 18 Halsbury, Laws of England, §§ 1304 and 1316.”

Over defendant’s objection, plaintiff introduced an article published in a newspaper called the “Western World,” reading as follows:

“Hicks Arrested on Fraud Charge
“Complaint Alleges Broker has Sold Stocks ‘Short’
“Fort Worth, Texas. — Charges of using the mails to defraud in connection with sales of stock were filed against L. R. Hicks, Jr., Fort Worth broker, early this week by J. Forrest McCutcheon, assistant United States district attorney.
“Filing of the charges resulted from complaints alleging that Hicks had sold stocks ‘short,’ it was stated. Bond of $5,000 was asked by Mr.

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Bluebook (online)
75 S.W.2d 905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/world-oil-co-v-hicks-texapp-1934.