Spradlin's Market, Inc. v. Springfield Newspapers, Inc.

• Decision Date: 14 February 1966
• Docket Number: No. 2,No. 51197,51197,2
• Citation: 398 S.W.2d 859
• Parties: SPRADLIN'S MARKET, INC., Appellant, v. SPRINGFIELD NEWSPAPERS, INC., Respondent
• Court: Missouri Supreme Court

Page 859

398 S.W.2d 859

SPRADLIN'S MARKET, INC., Appellant, v. SPRINGFIELD NEWSPAPERS, INC., Respondent.

No. 51197.

Supreme Court of Missouri, Division No. 2.

Feb. 14, 1966.

Joseph Cohen, Charles S. Schnider, John E. Shamberg, Joseph P. Jenkins, Edward G. Collister, Jr., Kansas City, Kan., Sam Gardner, Monett, for appellant.

Richard Farrington, Jack S. Curtis, Farrington & Curtis, Springfield, for respondent.

STOCKARD, Commissioner.

Plaintiff has appealed from a judgment in favor of defendant in its action for libel in which actual and punitive damages totaling $250,000 were sought.

Defendant published in its newspapers two articles, the first of which appeared in the 'Springfield Leader & Press' on October 1, 1956, and was as follows:

'Spradlin, Four Others Face $775 in Penalties Orders

Permanent Injunction Against Former Fruit Dealer

'Federal Judge R. Jasper Smith this morning issued a permanent injunction against Richard B. Spradlin, former Commercial Street fruit dealer, and four other members of his family, from dealing in perishable commodities without a license.

'He also imposed civil penalties of $775 on Spradlin and the others for the 64 alleged violations.

'As the story was told the court by assistant U. S. Attorney Horace Kimbrell, the Agriculture Department had made a 'reparations award' to certain persons with whom Spradlin did interstate business, under authority of the perishable commodities act.

'Spradlin, according to Kimbrell, refused to pay the award, after which the Agriculture Department revoked his license to engage in the business of selling perishable commodities.

* * *

* * *

'But, said the government attorney, Spradlin continued to operate without a license, using various firm names with the name of Spradlin. Federal Judge Albert A. Ridge accordingly issued a temporary injunction.

'Wayne Walker, defense attorney, told the judge he would not try to condone certain violations, but said no trickery was intended in the use of various anmes. These variations, he said, originated with customers.

'Walker also said Spradlin's sons, Robert Dale and Loren Wayne, along with a son-in-law, Louis Myres, started a food business of their own while the father was involved. Eventually, he said, they took on perishable products from the senior Spradlin.

'The three younger men, along with Mrs. Mary Spradlin, wife of Richard Spradlin, were named by the government in the injunction proceedings. The penalties imposed by Judge Smith may be paid by any of the five.

'Kimbrell asked Judge Smith to assess the maximum penalty of $500 for the first violation and $25 each for 63 others.

'Walker, however, offered to show that Spradlin had already begun to pay some of the original 'reparation award' and asked Judge Smith not to make the penalty so stiff, Spradlin could not engage in business. He noted that the original Spradlin business location had been obliterated by the Commercial Street urban highway project.

'Judge Smith decided on a $100 penalty for the first violation, $10 each for the next sixty and a maximum penalty of $25 each for three allegedly committed after the complaint had been filed.'

The second article appeared in the 'Springfield Daily News' on October 2, 1956, and was as follows:

'Restraining Order Against Spradlin Made Permanent

'A temporary order restraining Richard B. Spradlin, Former Commercial Street fruit dealer, from doing business in perishable commodities was made permanent yesterday by Federal Judge R. Jasper Smith.

'Judge Smith also imposed penalties of $775 against Spradlin for 64 alleged violations of Agriculture Department regulations.

'Equally affected by the order are four of Spradlin's relatives including his wife, Mrs. Mary Spradlin, two sons, Robert Dale Spradlin and Loren Wayne Spradlin, and a son-in-law, Louis Myers.

'The case had started with a 'reparation award' assessed against Spradlin by the Agriculture Department under the perishable commodities act. Spradlin allegedly refused to pay the award and the government revoked his license. When he continued to deal in such commodities, the government asked an injunction and got a temporary one from Judge Albert A. Ridge.'

After the pleadings were at issue the defendant moved for summary judgment, and submitted as an exhibit, supported by an affidavit as to accuracy, a transcript of the proceedings in the federal court on October 1, 1956. Also submitted were copies of the newspaper articles, and an affidavit of the clerk of the federal court to the effect that a document entitled 'Findings of Fact, Conclusions of Law, Judgment, and Order Making Preliminary Injunction Permanent' entered in the proceeding in the federal court, although dated as of October 1, 1956, was not in fact filed until October 3, 1956, which was subsequent to the publication of the newspaper articles. No counter affidavits were filed. Therefore, for purposes of this appeal we accept as correct the statements in the affidavits.

Because of the length we shall not set out a verbatim statement of what occurred in the federal proceedings as reflected by the transcript. It appears that what was called a 'reparation order' was entered against Richard B. Spradlin by the United States Department of Agriculture. He refused or at least failed to pay the amount of the 'reparation order,' and his license issued pursuant to the Perishable Agriculture Commodities Act of 1930 was cancelled. Thereafter, the United States sought and obtained a temporary injunction against him, his wife, two sons and his son-in-law. The United States also brought a civil suit, as authorized by the Perishable Agriculture Commodities Act, to recover certain penalties for operating without a license, and it also sought to have the injunction made permanent. The proceeding on October 1, 1956, about which the two newspaper articles were written, pertained to the hearing on the civil action for penalties and the application to make the injunction permanent.

Counsel for the government recited generally to the court the above information, and stated that the proposed order 'makes permanent the injunction previously granted * * * to restrain all these people from operating in any fashion until such time as any one of them obtains a license from the Department of Agriculture,' and that 'at any time any one of them would obtain a license, then of course the injunction ceases to function.' Counsel also explained that illegal sales had been made under various names including 'R. B. Spradlin,' 'Spradlin Fruit,' 'Spradlin Fruit Company,' 'Spradlin Market,' 'Spradlin Market, Incorporated,' and others. In his recommendations he proposed a penalty of $500 for the first violation, and pointed out to the court that the maximum penalty for the others, of which there were sixty-three, was $25 each. Subsequently the court imposed a penalty of $100 for the first offense, $10 for each additional offense except three which occurred after the complaint had been filed, and for those three the maximum of $25 each was imposed.

Counsel for Richard B. Spradlin stated to the court that there was no ulterior motive in the use of the various names, and stated that 'prior to 1954 Mr. R. B. Spradlin was engaged in the transportation of these commodities and had a license.' Counsel then related that after their military service the two sons and the son-in-law of Richard B. Spradlin left his business and went into business for themselves 'just selling groceries, and they did not come under this Act at all,' but Richard B. Spradlin 'realized' their grocery store would be 'a good outlet for these perishable commodities' so 'the corporation applied for a license under the act,' but in the meantime 'this complaint had been filed against Mr. Richard B. Spradlin, and since the owners of the corporation were his wife, sons and son-in-law, * * * the Department did not feel they could grant them a license. So they were never granted a license.' Counsel continued as follows: 'In the meantime the young men, the two sons and the son-in-law, have been unable to live since they couldn't operate and have gone into other jobs, other business. Also, the Commercial Street widening project got under way during this time. So they were compelled to close their grocery store because it was taken in a condemnation suit. So they finally opened a little outdoor market. But since that time they haven't been able to engage in and buy these perishable commodities of other states. All they have been able to purchase was Southeast Missouri watermelons and Southeast Missouri peaches, which come on in the state and which don't come under the Act. This is about the only thing they have been able to sell in the way of perishable commodities except groceries. So the result of that, they justly, rightly and actually have no license. As I say, the boys have been compelled to quit the business and have got jobs elsewhere, and Mr. Spradlin is just running this place over on Commercial Street, being unable actually to make any profit but seeking to keep his name alive and trade alive, so when he can get himself situated so he can, he wants to go back into business.' Counsel then added that if the court 'imposes a fine which is impossible for the people ever to pay, then of course we can't ever get back into the business. None of these folks can.' Later, counsel remarked that 'They have no assets. Mr. Spradlin has a couple of trailer trucks which are mortgaged, and which he formerly used in this business. They rented the property which they formerly occupied.'

The transcript shows that counsel for both sides had agreed to the substance of an order, subject to the court's approval, which required a change after the court announced the penalty. The final order enjoined Richard B. Spradlin, his wife, his sons and his son-in-law 'from carrying on a business as a commission merchant, dealer, or broker, dealing in perishable agricultural...