Brantley v. Zantop Intern. Airlines, Inc.

Decision Date26 September 1985
Docket NumberCiv. A. No. 85CV-60070-AA.
Citation617 F. Supp. 1032
PartiesRubin H. BRANTLEY, Plaintiff, v. ZANTOP INTERNATIONAL AIRLINES, INC., Defendant.
CourtU.S. District Court — Western District of Michigan

Rubin H. Brantley, pro se.

Robert M. Vercruysse and Daniel B. Tukel, Butzel, Long, Gust, Klein & Van Zile, Detroit, Mich., for defendant.

MEMORANDUM OPINION AND ORDER

JOINER, District Judge.

This is an employment discrimination case brought by plaintiff Rubin Brantley against Zantop International Airlines, his former employer. The second amended complaint states that plaintiff was hired by Zantop in September, 1979, and promoted to the position of flight engineer trainee in April, 1983. Plaintiff's problems with Zantop allegedly began with a performance evaluation report prepared by three Zantop employees named Weir, Cole and Tucker. The report stated that plaintiff reported for work under the influence of alcohol, and called him "unreliable." Weir and Tucker showed the report to Harold Zantop, vice president in charge of personnel at Zantop, on or around March 9, 1984. On March 13, 1984, plaintiff was demoted, and on March 22, 1984, plaintiff's employment was terminated. Plaintiff strenuously denies that he was ever drunk or unreliable at work, and claims that he was the victim of racial discrimination.

The case comes before the court on defendant's motion to dismiss Count IV of the complaint. Count IV alleges that the report prepared by Weir, Cole and Tucker libeled plaintiff. It demands judgment against defendant "in the amount of $750,000.00 including exemplary damages and punitive damages in the amount of $1,500,000.00."

Defendant first urges this court to dismiss Count IV for failure to state a claim of libel. Defendant contends that plaintiff has failed to allege the requisite element of publication. It relies on the law of such states as Alabama and Oklahoma for the proposition that communication of libel among agents of a single corporation does not constitute publication of that libel. See, e.g., United States Steel Corp. v. Darby, 516 F.2d 961, 963-64 (5th Cir.1975) (interpreting Alabama law); M.F. Patterson Dental Supply Co. v. Wadley, 401 F.2d 167, 171 (10th Cir.1968) (interpreting Oklahoma law).

The Supreme Court of Michigan, however, has clearly held that intra-corporate communication can constitute the publication of libel. In Bacon v. Michigan Cent. R.R. Co., 55 Mich. 224, 21 N.W. 324 (1884), plaintiff sued his former employer for libel. The railroad had included plaintiff on its list of discharged employees, and indicated that plaintiff had been discharged for stealing. The railroad then sent the list to its twenty-nine department heads located in Michigan, Indiana and Illinois. The Michigan Supreme Court stated:

But the argument is and the circuit judge so held, that the transmission of the libel from the superintendent to the twenty-nine heads of department in Michigan, Indiana and Illinois was only passing the libel from one agent of defendant to another agent of defendant, and it had never reached the hands or knowledge of a third person, but in fact remained in the possession of the composer.
This argument is wholly untenable. If a person compose a libel and send it to his agent, to be read by him, and it reaches its destination and is read by such agent, it is a sufficient publication to support the action. There are in this country railroad and telegraph corporations whose lines extend through many states and who employ many thousand agents. There are a great number of insurance companies employing agencies in several states. Can it be possible that these corporations possess an immunity to defame any person by sending such libel to every agent in their employment? Why should they possess this immunity more than an individual employing a large number of agents? Why should it be held a publication in one case and not in the other? In my opinion every agent to whom this discharge list was delivered was a third person respecting this corporation and the plaintiff, and it constituted a publication of the libel.

55 Mich. at 228-29. See also Sias v. General Motors Corp., 372 Mich. 542, 548, 127 N.W.2d 357 (1964) (finding publication of libel when company management called in plaintiff's fellow employees to explain that plaintiff had been discharged for theft); Ball v. White, 3 Mich.App. 579, 584, 143 N.W.2d 188 (1966) (citing Bacon for the proposition that "all that is necessary for a publication to exist is the delivery of the defamatory matter to any person other than the one libeled.").

The foregoing discussion reveals that Michigan law considers intra-corporate communication of libel to be publication of that libel. Therefore, defendant's motion to dismiss Count IV for failure to state a claim must be denied.

Defendant next urges this court to dismiss plaintiff's request for punitive damages in Count IV, arguing that Michigan law does not permit an award of such damages. The relevant provisions are found in the Michigan libel statute, Mich.Comp. Laws Ann. § 600.2911(2) (West 1968):

(2) Libel or slander; damages, actual, exemplary, retraction. (a) Except as provided in (b), in actions based on libel or slander the plaintiff is entitled to recover only for the actual damages which he has suffered in respect to his property, business, trade, profession, occupation, or feelings.
(b) Exemplary and punitive damages shall not be recovered in actions for libel unless the plaintiff, before instituting his action gives notice to the defendant to publish a retraction and allows a reasonable time to do so, and proof of the publication or correction shall be admissible in evidence under a denial on the question of the good faith of the defendant, and in mitigation and reduction of exemplary or punitive damages. The retraction shall be published in the same size type, in the same editions and as far as practicable, in substantially the same position as the original libel.

At the oral hearing on defendant's motion, plaintiff claimed that § 600.2911(2)(b) entitles him to punitive damages, because he demanded a retraction of the alleged libel before instituting the present lawsuit. Defendant admits, for purposes of its motion, that it received a letter from plaintiff demanding the retraction. However, defendant denies that plaintiff's demand entitles him to punitive damages.

Defendant cites a recent Michigan Supreme Court opinion interpreting the "exemplary and punitive damage" language of § 600.2911(2). In Peisner v. Detroit Free Press, Inc., the court stated:

At first blush the use of the terms "exemplary and punitive" suggests a legislative intent to permit an award of damages—in addition to actual damages—for the purposes either of punishing (i.e., specifically deterring) defendant or of making an example of defendant for the benefit of other potential purveyors of libel (i.e., generally deterring). The history of that provision and the Michigan cases interpreting it, however, reveal that not to be the case.
Even before the original version of our libel statute was enacted, this Court had established the principle that
...

To continue reading

Request your trial
5 cases
  • Hagebak v. Stone
    • United States
    • Court of Appeals of New Mexico
    • December 9, 2002
    ...P.2d 1292, 1294 (1984); Bander v. Metro. Life Ins. Co., 313 Mass. 337, 47 N.E.2d 595, 601 (Mass.1943); Brantley v. Zantop Int'l Airlines, Inc., 617 F.Supp. 1032, 1034 (E.D.Mich.1985) (applying Michigan law); Ramos v. Henry C. Beck Co., 711 S.W.2d 331, 335 (Tex.App.1986). {12} Some of these ......
  • Bals v. Verduzco
    • United States
    • Indiana Supreme Court
    • October 21, 1992
    ...law), aff'd without opinion in 636 F.2d 1199, cert. denied, 454 U.S. 821, 102 S.Ct. 105, 70 L.Ed.2d 93; Brantley v. Zantop Int'l Airlines, Inc. (E.D.Mich.1985), 617 F.Supp. 1032 (applying Michigan law); Pirre v. Printing Developments, Inc. (S.D.N.Y.1979), 468 F.Supp. 1028, aff'd without opi......
  • Bals v. Verduzco
    • United States
    • Indiana Appellate Court
    • December 19, 1990
    ...337, 47 N.E.2d 595; Arsenault v. Allegheny Airlines Inc. (D.Mass.1980), 485 F.Supp. 1373, 1379; Brantley v. Zantop International Airlines, Inc. (E.D.Mich.1985), 617 F.Supp. 1032, 1033; Pirre v. Printing Developments, Inc. (S.D.N.Y.1979), 468 F.Supp. 1028. These courts have recognized an int......
  • Hill v. TERMINIX INTERN., INC., Civ. A. No. 85-CV-72909-DT.
    • United States
    • U.S. District Court — Western District of Michigan
    • September 26, 1985
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT