Knight v. Patterson
| Decision Date | 23 January 1968 |
| Docket Number | No. 10861,10861 |
| Citation | 436 P.2d 801,20 Utah 2d 242 |
| Parties | d 242 James R. KNIGHT, Plaintiff and Appellant, v. Clyde C. PATTERSON and Ormond Konkle, Defendants and Respondents. |
| Court | Utah Supreme Court |
M. Matt Biljanic, Midvale, for appellant.
Robert V. Phillips, of Patterson, Foley, Phillips & Gridley, Ogden, for respondents.
Plaintiff, James R. Knight, appeals from a summary judgment dismissing his alleged cause of action against defendant, Clyde C. Patterson, an attorney, for slander of plaintiff's character. On the basis of answers to interrogatories, affidavits and depositions the trial court ruled that even accepting the facts as contended by the plaintiff, he could establish no right to recover.
In May, 1963, Patterson and Knight had an oral understanding that they would join together in a motel business in West Yellowstone, Montana. Pursuant to that understanding they signed a real estate contract as joint purchasers. Not material to the issue here, but of interest to explain the parties named as defendants, in November 1963, a one-third of their interest in the motel was conveyed to the defendant, Ormond Konkle. The varying arrangements made regarding the financing and management of the motel, which can be characterized as quite loose and informal, included that Knight would make his contribution by serving as its manager. This he did until the close of the season for the following year, 1964. At that time, Patterson's wife, who is an accountant, went to the motel to audit the books. She found several irregularities, including a number of checks drawn by Knight on the motel account, but where the funds had gone for his personal use. This fact is not disputed. Avoiding unnecessary involvement in detail, it is sufficient to say in summary that there arose a disagreement between Knight and Patterson as to the extent of Knight's authorization to draw money, the amounts which were drawn, and whether they were properly allocated and entered on the books. Just who is right and who is wrong in that dispute is not of critical concern here.
The issue presented on this appeal relates to the plaintiff's accusation that in connection with that dispute Patterson made slanderous statements about Knight. After the books were audited, Knight came down to Ogden, Utah to collect funds he claimed due him from Patterson. Plaintiff's contention is that in conversations concerning this claim Patterson stated at separate times to two individuals, Arthur F. Campbell and Frank Warner, that Knight had been embezzling money of the motel by converting its funds to his own use.
The ground which we regard as determinative of the issue here presented, and which supports the granting of the summary judgment, is that the statements allegedly made by the defendant Patterson under the circumstances shown, were within the area of conditional privilege.
Arthur F. Campbell was an employee of the Ford Finance Company, from whom Knight had obtained a loan, and for which Patterson had co-signed. They were thus all involved together in a business transaction. In his brief plaintiff makes what it seems fair to interpret as a concession that his claim is not well-founded as to the alleged publication of a slander to said Campbell. He quotes this sound statement from 33 Am.Jur., Libel and Slander, Sec. 126:
The essential elements of a conditionally privileged communication may accordingly be enumerated as good faith, an interest to be upheld, a statement limited in its scope to this purpose, a proper occasion, and publication in a proper manner and to proper parties only.
And then states that: 'The elements of a conditionally privileged communication * * * might conceivably be found to exist in the statement of (to) Arthur F. Campbell.'
More important with respect to the claim of slander uttered to Mr. Campbell is the fact that from the latter's sworn statement it is difficult to discern whether anything Patterson said to him would reasonably be regarded as defamatory of the plaintiff Knight. And when asked specifically as to the accusation of embezzlement, Mr. Campbell stated:
Q. Has Mr. Patterson ever advised you that James R. Knight embezzled motel...
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