Appeal
from Superior Court, Mecklenburg County; Bowie, Judge.
Action
by A. O. Ferrell against J. E. Siegle. Judgment for
plaintiff, and defendant appeals. No error.
Punitive
damages cannot be awarded for slander unless actual malice is
proved.
This is
an actionable action for slander. The material allegations of
the complaint of plaintiff are as follows:
"That
on or about the 1st day of April, 1926, in the presence and
hearing of J. B. Staton, J. B. Edwards, Mr. and Mrs. J. E
Garris, and divers other persons, in place of business of
J. B. Staton and other times and places, J. E. Siegle
falsely and maliciously spoke and published of and
concerning the plaintiff, A. O. Ferrell, certain false and
defamatory words, in substance, as follows: 'Ferrell
has been stealing electricity from the Savona Manufacturing
Company for the past seven years, and he ought to be in the
Penitentiary.' That the plaintiff is informed and
believes, and so alleges, that the defendant wrongfully
falsely, and maliciously spoke and published the said
libelous words about the plaintiff for the intent and
purpose of injuring him in his good name and standing in
the community. That the defendant knew when he spoke and
published the said false and defamatory words, charging the
plaintiff with an infamous crime, that they were absolutely
false, and that the defendant deliberately, willfully, and
maliciously spoke and published the same with the intent
and purpose of humiliating and injuring the plaintiff in
his
character and reputation in the community, and that on
account of the said false and defamatory words, the
plaintiff has been humiliated, injured, and damaged; that
on account of the said false utterances charging the
plaintiff with the crime of larceny, he has suffered in his
good name and fame in the community, and has suffered
intense mental anguish which has affected his general
health, on account of all of which he has been greatly
damaged."
Plaintiff
prays for $10,000 actual damages and $5,000 punitive damages.
The
defendant in his answer, alleges that all the allegations of
the complaint are untrue and are denied. "The defendant,
for a further answer and defense, alleges that he was vice
president and resident manager of the Savona Manufacturing
Company. Plaintiff, prior to March, 1926, for about 8 years
had been overseer in the weave room. For the benefit of the
owners of the plant, he took charge. Soon after taking
personal charge of the affairs of said company, the defendant
was informed that the plaintiff in this action had been
taking advantage of his connections as an employee of said
company to personally use, and convert to his own use,
property of said company, material of said company, and the
time of hands and labor employed and paid by said company,
without making any report thereof to the company or making
any compensation or payment to said company for the same, and
had destroyed, or allowed to be destroyed, manufactured goods
of said company, for the purpose of concealing negligent and
defective work done by or under the supervision of plaintiff.
It became the duty of this defendant to investigate the
reports which had been made to him. The plaintiff was
operating a store, and J. B. Staton was manager of this store
of plaintiff. In the course of the investigation in the line
of his duty to said company which had employed him, it became
necessary for defendant to investigate the information he had
obtained, that the electric current of said store and café
and home of Ferrell was being wrongfully used from the
private lines of the Savona Manufacturing Company, by
plaintiff, and not being for or being reported to said
company, and for said purpose and no other, and in the line
of his duty, and in good faith, the defendant made
investigation and was informed by the Southern Public
Utilities Company, who supplied all electric current used by
plaintiff and by Savona Manufacturing Company, that there had
never been any meter upon the home of plaintiff, and that for
a long period of time there had been no meter at
plaintiff's store and café. *** All statements were made
in good faith for the purpose of inducing plaintiff to have
proper meters installed. *** At no time did the defendant
make the statements alleged in the complaint, and such
statements as he made were true, and were made in the bona
fide belief that they were true, under circumstances which
imposed duty upon the defendant, the duty to make them, and
the facts and circumstances duly justified this defendant in
making all statements which he made with reference to
plaintiff. Upon account of the matters above set forth, the
statements made by defendant were privileged, said statements
were true, and were made without malice, and in bona fide
belief in their truthfulness."
The
issues submitted to the jury and the answers thereto, were as
follows:
"(1)
Did the defendant, in substance, speak of and concerning
the plaintiff the language as alleged in the complaint?
Answer. Yes.
(2) If
so, was same false? Answer. Yes.
(3)
What damages, if any, is the plaintiff entitled to recover?
Answer. $6,750."
J.
Laurence Jones, of Charlotte, for appellant.
J. D.
McCall, of Charlotte, for appellee.
CLARKSON
J.
The
evidence introduced by plaintiff sustained fully the
allegations of the complaint that the defendant had spoken on
several occasions to different persons, and in divers places,
that plaintiff, "Ferrell, has been stealing electricity
from the Savona Manufacturing Company for the past 7 years,
and he ought to be in the Penitentiary." It was also in
evidence that defendant had likewise charged plaintiff, in
the presence of several persons, of stealing towels, cloth,
linen, and lumber from the manufacturing company. Defendant
charged also that plaintiff stole most of what he owned from
the manufacturing company; that in an effort to obtain
testimony to the above effect, defendant had tried to bribe a
person to swear falsely by attempting to give her $25. It was
in evidence that he used his position in an attempt to force
employees to give false evidence against plaintiff, and
employees were discharged when they would not testify to the
charges made by defendant against plaintiff; that he tried to
hire employees to testify to help defendant convict
plaintiff.
The
plaintiff testified that he ran a café which was an aid to
the mill, and that Mr. Lima, the president of the mill, so
considered it and allowed him to use the electricity. He
denied that he had ever stolen anything from the
manufacturing company. Plaintiff further testified as to the
damage done him by the newspaper publicity, he was
blacklisted. He testified to his mental and physical
suffering, humiliation, had a nervous breakdown, had
considerable of his property which he owed money on swept
away, and by reason of the slander and loss of position was
unable to make payments. He had been working at the mill
about 15 or 16 years; for the last 10 years assistant
superintendent
at a salary of $2,950 a year; had to leave on account of the
charges made against him, "He caused me to lose my
job." Defendant would not allow the mill employees to
patronize his café. The plaintiff showed, by numerous
witnesses, that his general reputation was good. The
defendant introduced no...
