U.S. Steel Corp. v. Darby, 74-2665

CourtUnited States Courts of Appeals. United States Court of Appeals (5th Circuit)
Writing for the CourtBefore BROWN, Chief Judge, and GEWIN and THORNBERRY; THORNBERRY; After reviewing the relevant Alabama decisions
Citation516 F.2d 961
PartiesUNITED STATES STEEL CORP., Plaintiff-Appellee, v. Elton H. DARBY, Defendant-Third Party Plaintiff-Appellant, v. SOUTHERN FABRICATING COMPANY, INC., Third Party Defendant.
Docket NumberNo. 74-2665,74-2665
Decision Date04 August 1975

Page 961

516 F.2d 961
UNITED STATES STEEL CORP., Plaintiff-Appellee,
v.
Elton H. DARBY, Defendant-Third Party Plaintiff-Appellant,
v.
SOUTHERN FABRICATING COMPANY, INC., Third Party Defendant.
No. 74-2665.
United States Court of Appeals,
Fifth Circuit.
Aug. 4, 1975.

Page 962

Robert L. Potts, Ernest N. Blasingame, Jr., Florence, Ala., for defendant-third party plaintiff-appellant.

John D. Clements, Birmingham, Ala., for plaintiff-appellee.

Appeal from the United States District Court for the Northern District of Alabama.

Before BROWN, Chief Judge, and GEWIN and THORNBERRY, Circuit Judges.

THORNBERRY, Circuit Judge:

In early 1970 Southern Fabricating Company, Inc. began to make regular credit purchases of steel manufactured by United States Steel Corporation (USS). The manufacturer filled steel purchase orders in April, May, and June 1971 despite Southern Fabricating's failure to keep current on its payments. Several times in May 1971 USS unsuccessfully attempted to determine the reason for the delinquency. Then in June 1971 Southern Fabricating personnel asserted that the steel had proved defective. Relations between the two companies deteriorated during the summer of 1971, and they ceased dealing with each other in August 1971. Southern Fabricating then had an outstanding balance of approximately $84,000 in their account with USS. On July 6, 1972 USS filed suit on a guaranty agreement to recover this amount from E. H. Darby, 1 owner of a controlling interest in Southern Fabricating.

In addition to denying liability under the guaranty agreement, Darby counterclaimed against USS for defamation of his business reputation, and, in a third party complaint, sought indemnity from Southern Fabricating for any amounts paid to USS. Southern Fabricating entered into the proceedings with a breach of warranty claim against USS. The parties eventually settled the quality claim that generated the litigation, with Southern Fabricating and Darby paying USS $64,500. Darby's defamation claim against USS was expressly excepted from the settlement agreement, but the district court subsequently granted USS's motion for summary judgment on that claim. That action forms the basis for Darby's appeal here. After a careful review of the record, we find the district court properly granted summary judgment for USS and affirm.

Fed.R.Civ.P. 56 governs motions for summary judgment. The district court shall render summary judgment

Page 963

for the moving party "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(c). 2 The moving party bears the burden of showing both the absence of a genuine issue as to any material fact and that judgment is warranted as a matter of law. Benton-Volvo-Metairie, Inc. v. Volvo Southwest, Inc., 479 F.2d 135 (5th Cir. 1973); Palmer v. Chamberlin, 191 F.2d 532 (5th Cir. 1951). In considering the motion, the district court must draw inferences most favorable to the party opposing the motion, and take care that no party will be improperly deprived of a trial of disputed factual issues. Dassinger v. South Central Bell Tel. Co., 505 F.2d 672 (5th Cir. 1974); 10 C. Wright & A. Miller, Federal Practice & Procedure § 2712. The appellate court reviewing the district court's action on a motion for summary judgment employs the same standards. Poller v. Columbia Broadcasting System,368 U.S. 464, 82 S.Ct. 486, 7 L.Ed.2d 458 (1962); Benton-Volvo-Metairie, Inc. v. Volvo Southwest, Inc., supra ; 10 C. Wright & A. Miller, Federal Practice & Procedure § 2716.

The essence of the tort of defamation is injury to one's public reputation. Dungan...

To continue reading

Request your trial
91 practice notes
  • Polisoto v. Weinberger, No. SA-84-CA-308.
    • United States
    • United States District Courts. 5th Circuit. Western District of Texas
    • January 29, 1986
    ...demonstrating that there is no actual dispute as to any material fact in the case." Id. at 1031; United States Steel Corporation v. Darby, 516 F.2d 961, 963 (5th In determining whether the movant has met this burden, the Court must view the evidence introduced and all factual inferences fro......
  • Strong v. Grambling State Univ., No. 3:13–CV–00808–DEW–KLH.
    • United States
    • United States District Courts. 5th Circuit. United States District Courts. 5th Circuit. Western District of Louisiana
    • March 25, 2015
    ...opposing the motion.” Reid v. State Farm Mut. Auto. Ins. Co., 784 F.2d 577, 578 (5th Cir.1986) (citing United States Steel Corp. v. Darby, 516 F.2d 961 (5th Cir.1975) ).The moving party bears the initial responsibility of informing the court of the basis for its motion and identifying those......
  • Oaks v. City of Fairhope, Ala., Civ. A. No. 80-0393-H.
    • United States
    • United States District Courts. 11th Circuit. United States District Court of Southern District of Alabama
    • May 20, 1981
    ...of Ala. 1975, § 11-47-23 (emphasis supplied). Although defamation is recognized as a tort in Alabama, United States Steel Corp. v. Darby, 516 F.2d 961, 963 (5th Cir. 1975), Oaks neither filed a claim with the city clerk of Fairhope nor brought an action within six months of the conduct upon......
  • Schiavone Const. Co. v. Time, Inc., Civ. A. No. 83-932.
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. District of New Jersey
    • October 1, 1985
    ...agrees. While some cases have held that a stockholder may not sue for the libel of a corporation, United States Steel Corp. v. Darby, 516 F.2d 961, 964 n. 4 (5th Cir.1975); McBride v. Crowell-Collier Publishing Co., 196 F.2d 187 (5th Cir. 1952), citing R.G. Dun & Co. v. Shipp, 127 Tex. 80, ......
  • Request a trial to view additional results
92 cases
  • Polisoto v. Weinberger, No. SA-84-CA-308.
    • United States
    • United States District Courts. 5th Circuit. Western District of Texas
    • January 29, 1986
    ...demonstrating that there is no actual dispute as to any material fact in the case." Id. at 1031; United States Steel Corporation v. Darby, 516 F.2d 961, 963 (5th In determining whether the movant has met this burden, the Court must view the evidence introduced and all factual inferences fro......
  • Christophersen v. Allied-Signal Corp., ALLIED-SIGNAL
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • August 15, 1991
    ...1089 (5th Cir.1989) (applying the Celotex and Rule 56 summary judgment standards de novo) (citing United States Steel Corp. v. Darby, 516 F.2d 961 (5th Cir.1975)), in Rule 56 proceedings we still apply the manifest-error standard of review to the trial court's evidentiary rulings, Lavespere......
  • Coke v. General Adjustment Bureau, Inc., No. 77-2874
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • March 23, 1981
    ...and A. Miller, Federal Practice and Procedure, § 2727 at 524-30 (1973) (footnotes omitted). See also United States Steel Corp. v. Darby, 516 F.2d 961, 963 (5th Cir. 1975); Clark v. West Chemical Products, Inc., 557 F.2d 1155, 1157 (5th Cir. 1977); 6 Moore's Federal Practice, § 56.15(3). It ......
  • In re General American Communications Corp., No. M-47B.
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • April 25, 1991
    ...1019, 1020 (7th Cir.1987); Clark v. Union Mutual Life Ins. Co., 692 F.2d 1370, 1372 (11th Cir.1982); United States Steel Corp. v. Darby, 516 F.2d 961, 963 (5th The primary purpose for granting a summary judgment motion is to avoid unnecessary trials where no genuine issue of material fact i......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT