Molton v. Commercial Credit Corp.

• Citation: 127 Ga.App. 390,193 S.E.2d 629
• Decision Date: 23 October 1972
• Docket Number: No. 47544,No. 3,47544,3
• Parties: Mary MOLTON et al. v. COMMERCIAL CREDIT CORPORATION
• Court: United States Court of Appeals (Georgia)

Page 629

193 S.E.2d 629

127 Ga.App. 390

Mary MOLTON et al. v. COMMERCIAL CREDIT CORPORATION.

No. 47544.

Court of Appeals of Georgia, Division No. 3.

Oct. 23, 1972.

Syllabus by the Court

1. To justify a recovery for libel it must appear that defamatory matter in writing, printing, pictures or signs has been published.

2. One who has engaged in credit transactions, and who seeks the extension of credit again consents, expressly or impliedly, that his former creditors be approached for information concerning their experience with him and that such information be given by them. In so doing, the former creditor does not wrongfully invade the applicant's privacy.

3. A corporation may not be held liable for slander by one of its employees or agents even if the utterance of the employee or agent is defamatory and in the interest of the corporation, unless it is further made to appear that the corporation has authorized or directed the employee or agent to use the very words in making such an utterance.

4. Where a tort is committed through mistake, ignorance, or mere negligence, the damages are limited to the actual injury received.

Melvin Malton and his wife, Mary, brought suit against Commercial Credit Corporation alleging that in June, 1967 they had been involved in an automobile wreck with an uninsured motorist, resulting in a total loss of their car; that at the time their car was financed by Commercial Credit Corporation and insured against collision loss by Allstate Insurance Company. Their debt to Commercial Credit was $2400; and, because of a serious question as to coverage in connection with the Allstate policy, Commercial Credit had negotiated a settlement of the claim with it for $1650, but had agreed that upon receipt of the negotiated amount it 'would consider the Molton account satisfied.'

Thereafter, in May, 1971, plaintiff applied to E. S. Watts & Company for a home loan, and Watts obtained from the Credit Bureau of Macon a report on plaintiffs to be used in considering whether the application would be approved. The credit report showed a charge-back of $69.32 at the Citizens & Southern Bank, and an outstanding indebtedness to Commercial Credit of $2,453 which it had charged off. The Moltons were called in and told of these items and Mrs. Molton went to Commercial Credit and asked them to clear that item since it had been settled by Allstate. The manager informed her that the file had been sent to Atlanta, that he had no authority to remove information from the credit bureau and that this would have to come from Atlanta. He testified that upon receipt of the $1,650 from Allstate the Molton account was credited with it, showing an unpaid balance of $601.84, and that this amount was charged off; that the credit bureau makes calls frequently requesting the current information as to the status of customers' accounts and that it is related to them from the records. He had received a call from the credit bureau about the Molton account about the time Mrs. Molton went to him concerning the matter, and he had related to the credit bureau just what the Commercial Credit ledger showed-a final charge-off of $601.84.

Mrs. Molton went to the Citizens & Southern Bank and exhibited to them receipts or canceled checks for the $69.32 item, and it cleared that record with the credit bureau.

Mr. Molton had filed a voluntary bankruptcy proceeding some time previously, when he had been unemployed and creditors were pressing. However, he had obtained employment, arranged to pay his creditors and dismissed the bankruptcy proceeding.

When these matters had been satisfactorily explained to E. S. Watts & Company, it recommended the Moltons as a credit risk and they obtained the home loan.

The petition was brought in three counts. Count 1 sought a recovery for libel, Count 2 for an invasion of privacy, and Count 3 for slander. At the close of the evidence the court directed a verdict for defendant, and plaintiffs appeal.

Melton, McKenna & House, Doye E. Green, Macon, for appellants.

Harris, Russell & Watkins, Joseph H. Davis, Macon, for appellee.

EBERHARDT, Presiding Judge.

1. We can find no basis for a charge of libel. 'A libel is a false and malicious defamation of another, expressed in print, or writing, or pictures, or signs, tending to injure the reputation of an individual, and exposing him to public hatred, contempt or ridicule. The publication of the libelous matter is essential to recovery.' Code § 105-701.

It does not appear that Commercial Credit has published anything in writing, printing, pictures, signs, etc. concerning the plaintiffs. Not having done so, a recovery was unauthorized. Citizens & Southern Nat. Bank v. Hendricks, 176 Ga. 692, 168 S.E. 313. The evidence is undisputed that the only information passed to the credit bureau from Commercial Credit was done by telephone when it related to the credit bureau what its record disclosed as to the Molton account. Libel is not committed by an oral defamation, even if the information passed to the credit bureau were found to be defamatory in nature.

But we see nothing in the information relayed by Commercial Credit to the credit bureau that could be said to be defamatory. It was simply a true statement that the Moltons had had an account with it and that a portion of the account had been written off. It had not received full payment of the account when the settlement was worked out between Commercial Credit and Allstate; and, in order to meet the...