Schy v. Hearst Pub. Co.

• Decision Date: 24 June 1953
• Docket Number: No. 10793.,10793.
• Citation: 205 F.2d 750
• Parties: SCHY v. HEARST PUB. CO.
• Court: U.S. Court of Appeals — Seventh Circuit

205 F.2d 750 (1953)

SCHY v. HEARST PUB. CO.

No. 10793.

United States Court of Appeals Seventh Circuit.

June 24, 1953.

John F. Sembower, Chicago, Ill., for appellant.

Kurt J. Salomon, Chicago, Ill., for appellee.

Before MAJOR, Chief Judge, and FINNEGAN and SWAIM, Circuit Judges.

FINNEGAN, Circuit Judge.

This appeal is prosecuted to reverse an order of the District Court which sustained appellee's motion to dismiss the complaint charging libel, and directing its dismissal at appellant's costs. The alleged defamatory matter was published by appellee, Hearst Publishing Company, Inc., on February 25, 1951, in its daily newspaper, "The Chicago Herald American," which is circulated in the City of Chicago, Cook County, Illinois, and elsewhere throughout the United States. The article used the following language:

"Behncke Tells How Group Jammed Way Into Sickroom"

By Meyer Zolotareff

"David L. Behncke, a legendary figure in America's aviation history and the man who raised the standards of living for thousands of pilots through the world, today bemoaned what he termed an insult by 17 employees of the union he heads.

"From a sickbed in his six-room bungalow at 6459 S. Albany Ave., the national president of the AFL Air Line Pilots Association and first president of the International Federation of Air Line Pilots Associations, denounced their charges of dictatorial treatment and refusal to bargain with union employes for wage increases.

"Lowest Blow"

"Behncke, a leading advocate of air safety and one of the great fighters for better working conditions, frankly admitted:

"`I think it is the lowest blow ever struck to any representative of workers in the labor world. It really hurts. I've never been against the establishment of agreements with employes of our union.'

"Behncke was in New York directing hearings of his union before a presidential fact-finding board, involving a dispute with American Airlines about curtailment of flying hours for 800 pilots, when, he said, the charges were made in his hotel room there Feb. 15 by Maurice H. Schy, an association lawyer and head of 17 disgruntled staff employes.

"Gestapo Action"

"Branding the entrance of Schy's group into his room, where he was ill as a Gestapo Action Behncke said:

"`At the time they made their unannounced military-manner entrance, I knew nothing about the troubles of our staff employes or that some were dissatisfied.

"`When Schy threw a contract on the bed and asked me to sign it, I told him this was too abrupt and I was in no position to sign any contracts. He threatened to set up picket lines in front of the hotel.

"`It is a lie that I am against establishing agreements with employes of the association. In fact, I have long encouraged an agreement for stabilizing their employment, but I will never recognize any shotgun approach.'

"Behncke said the association has 67 employes, of whom 50 do clerical and secretarial work. Their average wage, he said, is $58 a week for 37½ hours' work. The 17, who call themselves `professional' employees, are semi-executives whose salary ranges from $5,700 to $8,500 a year.

"The union chief continued:

"`Attorney Schy and the others griped about being away from home, that I made them work long hours and they demanded extra compensation in their new agreement. While pilots operate under the Railway Labor Act 45 U.S.C.A. § 151 et seq., employes at the office are subject to the rules of the Taft-Hartley law 29 U.S.C.A. § 141 et seq.. Under this law they must make a formal approach.'

"Defies Physicians"

"Convalescing here, Behncke said he would defy orders of his physicians and fly back to New York within a week to end hearings before the fact-finding board in an effort to aid his pilots.

"He was flown to Chicago on a stretcher after the New York hotel room incident."

The complaint of appellant, Maurice Schy, alleges that the direct statements and innuendos contained in said publication falsely charged him with wicked designs, with using Gestapo methods and actions, bad and reprehensible conduct, and that he was disloyal, dishonest, unfair, unscrupulous, and untruthful and guilty of attempting to use force to accomplish certain purposes. He charges that the statements in the publication were wholly false and that he has been injured thereby in his reputation, business, credit and profession. He seeks damages in the sum of $100,000. The appellee, Hearst Publishing Company, Inc., moved to dismiss the complaint on the following grounds:

(1) That the innuendos are not reasonably ascribed to the alleged libelous words;

(2) That the alleged libelous words are not capable of conveying the meaning ascribed to them by the innuendos;

(3) That the complaint shows on its face that the alleged libelous article is not libelous per se;

(4) That the complaint shows on its face that the alleged...