A railroad company is responsible in its corporate capacity for
acts done by its agents, either
ex contractu or
in
delicto, in the course of its business and of their
employment.
It is responsible, therefore, in an action for the publication
of a libel.
It is within the course of its business and the employment of
the president and directors for them to investigate the conduct of
their officers and agents and report the result to the
stockholders.
But a publication of this report must be made under the
conditions and responsibilities that attach to individuals under
such circumstances.
In the absence of any malice or bad faith, a report to the
stockholders is a privileged communication. But this privilege does
not extend to the preservation of the report and evidence in a book
for distribution amongst the persons belonging to the corporation
or the members of the community.
So far, therefore, as the corporation authorized the publication
in the form employed, they are responsible in damages.
But the instruction of the circuit court was erroneous holding
the corporation responsible for a publication which took place
after the commencement of the suit. Also an instruction allowing
the jury to give exemplary damages, because there was no evidence
that the injury was inflicted maliciously or wantonly.
Under the general issue plea, no question could be raised as to
the capacity of the parties to sue in the circuit court.
This was an action on the case for libel brought by Quigley
against the railroad company under the circumstances which are
fully set forth in the opinion of the Court, which also contains
the instructions of the circuit court to the jury.
Page 62 U. S. 207
MR. JUSTICE CAMPBELL delivered the opinion of the Court.
The plaintiff, Quigley, a citizen of Delaware, complained of the
defendants, "a body corporate in the State of Maryland, by a law of
the general assembly of Maryland," for the publication of a libel
by them, in which his capacity and skill
Page 62 U. S. 208
as a mechanic and builder of depots, bridges, stationhouses, and
other structures for railroad companies had been falsely and
maliciously disparaged and undervalued. The defendants pleaded the
general issue. On the trial of the cause, it appeared that in 1854,
the president and directors then in charge of the affairs of the
defendants instituted and inquiry into the administration and
management of a person who had been the superintendent of their
railroad for ten years. Among other subjects, the nature of his
connection and dealings with the plaintiff, who had likewise been
in the service of the corporation as "general foreman of all their
carpenters," engaged the attention of the committee of
investigation. The president of the company, who conducted the
inquiry before this committee on behalf of the corporation, seems
to have been convinced that the superintendent had exhibited
partiality for the plaintiff and had allowed him extravagant
compensation for service and the privilege of free transit over the
road for himself, his workmen, and freight, to the detriment of the
company and in breach of his duty as superintendent. The
superintendent defended himself against these and other imputations
and produced testimony to the skill and fidelity of the plaintiff
while in the service of the company; also to the value of his
services and to the effect that no unusual or improper favor had
been extended to him.
The president of the company, in the course of the
investigation, addressed a letter to an architect, who had some
acquaintance with the plaintiff, to request his opinion of his
skill as a mechanic and whether the services of the plaintiff could
have had any peculiar value to a railroad company. The reply of
this architect was very pointed and depreciative of the plaintiff,
affirming that "he was not entitled to rank as a third-rate
workman," and "was unable to make the simplest geometrical
calculations." All the testimony collected by the committee, as
produced by the superintendent, was carefully reduced to writing
and printed, first for the use of the president and directors and
afterwards was submitted to the company at their meeting on the 8th
of January, 1855, with a report, which exonerated in a great
measure the superintendent
Page 62 U. S. 209
from any malpractice in consequence of his relations with the
plaintiff. The investigation was searching, and testimony which,
with the report of the committee, fills two printed volumes was
submitted to the company. The letter of the architect in answer to
the letter of the president is printed in one of these volumes, and
this publication is the libel complained of. Several of the
directors testify they were not aware of the publication, and
evidence was adduced that the plaintiff had declared that the
investigation had resulted in increasing his business. A verdict
was returned in favor of the plaintiff. The defendants are a
company incorporated by the Legislatures of Delaware and
Pennsylvania as well as of Maryland to construct a railroad to
connect the three cities which contribute to form its name, and a
portion of their directors and stockholders are citizens of
Delaware.
The defendants contend that they are not liable to be sued in
this action; that theirs is a railroad corporation, with defined
and limited faculties and powers, and having only such incidental
authority as is necessary to the full exercise of the faculties and
powers granted by their charter; that, being a mere legal entity,
they are incapable of malice, and that malice is a necessary
ingredient in a libel; that this action should have been instituted
against the natural persons who were concerned in the publication
of the libel. To support this argument, we should be required to
concede that a corporate body could only act within the limits and
according to the faculties determined by the act of incorporation,
and therefore that no crime or offense can be imputed to it. That
although illegal acts might be committed for the benefit or within
the service of the corporation and to accomplish objects for which
it was created by the direction of their dominant body, that such
acts, not being contemplated by the charter, must be referred to
the rational and sensible agents who performed them, and the whole
responsibility must be limited to those agents, and we should be
forced, as a legitimate consequence, to conclude that no action
ex delicto or indictment will lie against a corporation
for any misfeasance. But this conclusion would be entirely
inconsistent with the legislation and jurisprudence
Page 62 U. S. 210
of the states of the Union relative to these artificial persons
Legislation has encouraged their organization, as they concentrate
and employ the intelligence, energy, and capital of society for the
development of enterprises of public utility. There is scarcely an
object of general interest for which some association has not been
formed, and there are institutions whose members are found in every
part of the Union, who contribute their efforts to the common
object. To enable impersonal beings -- mere legal entities, which
exist only in contemplation of law -- to perform corporal acts or
deal with personal agents, the principle of representation has been
adopted as a part of their constitution. The powers of the
corporation are placed in the hands of a governing body selected by
the members, who manage its affairs, and who appoint the agents
that exercise its faculties for the accomplishment of the object of
its being. But these agents may infringe the rights of persons who
are unconnected with the corporation or who are brought into
relations of business or intercourse with it. As a necessary
correlative to the principle of the exercise of corporate powers
and faculties by legal representatives is the recognition of a
corporate responsibility for the acts of those representatives.
With much wariness, and after close and exact scrutiny into the
nature of their constitution, have the judicial tribunals
determined the legal relations which are established for the
corporation by their governing body and their agents with the
natural persons with whom they are brought into contact or
collision. The result of the cases is that for acts done by the
agents of a corporation, either
in contractu or
in
delicto, in the course of its business, and of their
employment, the corporation is responsible, as an individual is
responsible under similar circumstances. At a very early period it
was decided in Great Britain as well as in the United States that
actions might be maintained against corporations for torts, and
instances may be found in the judicial annals of both countries of
suits for torts arising from the acts of their agents of nearly
every variety. Trespass
quare clausum fregit was supported
in 9 Serg. & R. 94; 4 Mann. & G. 452; Assault and Battery,
4 Gray Mass. 465; 6 Ex.Ch., 314. For damages by a collision
Page 62 U. S. 211
of rail cars and steamboats,
55 U. S. 14
How. 465;
60 U. S. 19
How. 543. For a false representation, 34 L. & Eq. 14;
24 U. S. 11 Wheat.
59.
The case of the
National Exchange Co. of Glasgow v.
Drew, 2 Macqueen H. of L.Cas. 103, was that of a company in
failing circumstances whose managers sought to appreciate its stock
by a fraudulent representation to the company, and a publication of
the report as adopted by it that its affairs were prosperous. Two
of its stockholders were induced to borrow money from the company
to invest in its stock. The question in the cause was, whether the
company was responsible for the fraud. In the House of Lords, upon
appeal, Lord St. Leonards said:
"I have come to the conclusion that if representations are made
by a company fraudulently, for the purpose of enhancing the value
of stock, and they induce a third person to purchase stock, those
representations so made by them bind the company. I consider
representations by the directors of a company as representations by
the company, although they may be representations made to the
company. . . ."
The report
"becomes the act of the company by its adoption and sending it
forth as a true representation of their affairs, and if that
representation is made use of in dealing with third persons for the
benefit of the company, it subjects them to the loss which may
accrue to the party who deals, trusting to those
representations."
It would be difficult to furnish a reason for the liability of a
corporation for a fraud under such circumstances that would not
apply to sustain an action for the publication of a libel.
The defendants are a corporation, having a large capital
distributed among several hundred of persons. Their railroad
connects large cities and passes through a fertile district. Their
business brings them in competition with companies and individuals
concerned in the business of transportation. They have a numerous
body of officers, agents, and servants, for whose fidelity and
skill they are responsible and on whose care the success of their
business depends. The stock of the company is a vendible security,
and the community expects statements of its condition and
management. There is no doubt that it was the duty of the president
and directors to
Page 62 U. S. 212
investigate the conduct of their officers and agents and to
report the result of that investigation to the stockholders, and
that a publication of the evidence and report is within the scope
of the powers of the corporation.
But the publication must be made under all the conditions and
responsibilities that attach to individuals under such
circumstances. The Court of Queen's Bench, in
Whitefield v.
South Eas. R. Co., May, 1858, said:
"If we yield to the authorities which say that in an action for
defamation, malice must be alleged, notwithstanding authorities to
the contrary, this allegation may be proved by showing that the
publication of the libel took place by order of the defendants, and
was therefore wrongful, although the defendants had no ill will to
the plaintiffs and did not mean to injure them."
And the court concluded:
"That for what is done by the authority of a corporation
aggregate, that a corporation ought as such to be liable, as well
as the individuals who compose it."
The question arises whether the publication is excused by the
relations of the president and directors, as a committee from their
board, to the corporation itself. It cannot be denied that the
inquiries directed by those officers were within the scope of their
power and in the performance of a moral and legal duty, and that
the communication to their constituents of the evidence collected
by them, and their conclusions upon the evidence, was a privileged
communication in the absence of any malice or bad faith. But the
privilege of the officers of the corporation as individuals, or of
the corporate body, does not extend to the preservation of the
report and evidence in the permanent form of a book for
distribution among the persons belonging to the corporation or the
members of the community. It has never been decided that the
proceedings of a public meeting, though it may have been convened
by the authority of law or of an association engaged in an
enterprise of public utility, could be reported in a newspaper as a
privileged publication. But a libel contained in such proceedings,
if preserved in the form of a bound volume, might be attended with
more mischief to private character than any publication in a
newspaper of the same document.
Page 62 U. S. 213
The opinion of the Court is that insofar as the corporate body
authorized the publication in the form employed, they are
responsible in damages. The circuit court instructed the jury:
"1. If the jury find from the evidence in this case that the
defendants, by the president and directors of said company,
published the letter from John T. Mahoney to S. M. Felton,
president &c., dated March 3, 1854, in the declaration
mentioned, and that any or all of the statements in the said letter
respecting the plaintiff in his trade and occupation are false, and
shall further find that the said president and directors, at the
annual meeting of the stockholders of said company, held 8 January,
1855, reported to the said stockholders their action in the
premises, and that the proceedings of the committee of
investigation which contained the said letter were then being
printed, and, as soon as printed, would be distributed to the
stockholders, and that said report was accepted by the
stockholders, and if the jury shall further find that after the
meeting of the stockholders had adjourned, the president and
directors of said company distributed the book containing the said
letter among the stockholders of this company, or any of them, then
the jury may find for the plaintiff."
"2. And if the jury find for the plaintiff under the first
instruction, they are not restricted in giving damages to the
actual positive injury sustained by the plaintiff, but may give
such exemplary damages, if any, as in their opinion are called for
and justified in view of all the circumstances in this case to
render reparation to plaintiff, and act as an adequate punishment
to the defendant."
The first instruction is erroneous because the publication to
which the court referred as blameworthy, and to authorize the jury
to find a verdict against the defendant, took place after the
commencement of this suit.
The second instruction contains the same error, and is
objectionable for the additional reason that the rule of damages is
not accurately stated to the jury.
In
Day v.
Woodworth, 13 How. 371, this Court recognized the
power of a jury in certain actions of tort to assess
Page 62 U. S. 214
against the tortfeasor punitive or exemplary damages. Whenever
the injury complained of has been inflicted maliciously or
wantonly, and with circumstances of contumely or indignity, the
jury are not limited to the ascertainment of a simple compensation
for the wrong committed against the aggrieved person. But the
malice spoken of in this rule is not merely the doing of an
unlawful or injurious act. The word implies that the act complained
of was conceived in the spirit of mischief or of criminal
indifference to civil obligations. Nothing of this kind can be
imputed to these defendants.
The letter of Mahoney was reported to the company with other
evidence that rendered it innocuous, and its statements were never
adopted by them. The plaintiff has repeatedly affirmed that he had
derived an advantage from the investigation by the company, and,
upon reading all the evidence, as reported and published, we do not
perceive how an impression unfavorable to him could have been made
by it upon any candid mind. The circumstances under which the
evidence was collected and the publication made repel the
presumption of the existence of malice on the part of the
corporation, and so the jury should have been instructed.
The averments in the declaration of the facts proper to give the
circuit court jurisdiction over the parties are identical with
those which were fully considered by this Court, and received the
sanction of two-thirds of the judges in
Marshall
v. Baltimore & Ohio R. Co., 16 How. 314. A
repetition of the discussion that took place and was reported with
that case is deemed to be unnecessary.
The only plea filed in this cause is the general issue. That
plea raises an issue upon the merits of the complaint and leaves
the jurisdictional allegations without a traverse.
No question involving the capacity of the parties in the cause
to litigate in the circuit court can be raised before the jury
under such pleadings.
Conard v. Atlantic Insurance
Co., 1 Pet. 386;
Evans v.
Gee, 11 Pet. 80;
Owings v.
Wickliffe, 17 How. 47. The testimony that the
States of Delaware and Pennsylvania had respectively granted a
corporate character to the same corporators that form the
corporation in Maryland,
Page 62 U. S. 215
for the extension of the railroad through those states, to
connect the cities that appear in the name of the corporation, and
the testimony that some of the directors of the several
corporations reside in Delaware, in the condition of the pleadings,
was immaterial and irrelevant.
For the errors we have noticed, the judgment of the circuit
court is
Reversed and the cause remanded.
MR. JUSTICE DANIEL:
In the judgment of this Court so far as it directs a reversal of
that of the circuit court I fully concur. But in my view the
decision has performed but half its proper office by omitting to
order a dismission of this case by the circuit court.
It is not designed here to repeat the arguments or the
authorities so often and so unavailingly adduced in opposition to
the cognizance of the federal court of controversies in which
corporations are parties.
Some cursory recapitulation will, however, be attempted of
previous decisions made here as evincing the progress of relaxation
and inconsistency from the first departure, from what, by me at
least, are deemed sound, legal, and constitutional principles, down
to the remarkable instance exemplified in the case before us.
The first step in this progress was the decision that a
corporation might be made a party in the federal courts by entirely
destroying the existence of such a body, and by this process it was
pretended that it was made capable of suing and being used, and by
imposing liabilities on private natural persons who, by the very
nature and character of the corporate body and by the terms of its
organization, possessed not one of its powers, and could exercise
not one of its functions.
Vide 9
U. S. 5 Cranch 61,
Bank of the United States v.
Deveaux. Next, and in order to cover this glaring
irregularity, it seemed necessary to transform a corporation into a
quasi, or into so much of a citizen as would authorize its
pleading and being impleaded in the federal courts, although the
Constitution and the laws of the United States do not recognize nor
make mention of any particular part or fraction of a citizen,
Page 62 U. S. 216
but confine the cognizance of the courts to controversies
between
citizens of different states, sustaining their
full natural, political, and social relations. This was the object
attempted in the case of
Cincinnati Railroad Company v.
Letson, 2 How. 497. It then became necessary to give to this
citizen corporation a local habitation or residence in
order to fix his origin and position, on which it was, and is yet,
perhaps conceded that his admission into the courts of the United
States was dependent, and this Court, to accomplish this purpose,
seems to have settled upon one or the other of the following
conclusions, or perhaps in part on both -- that either the locality
within which this
citizen may be fabricated or that within
which his agents or factors (
viz., the president and
directors) hold their place of business, determines his political
position, his capacities and responsibilities, although it is
palpable this latter conclusion abrogates completely the previous
doctrine of this Court that the rights and powers of a corporation
remain and inhere in the individuals interested in the company, and
do not appertain regularly to the associated or organized body.
From these anomalous conclusions have arisen the curious formula in
pleading, by which access has been sought and permitted in the
courts of the United States -- as for instance,
a certain
company, a body corporate, created by some stated authority, but
without averring citizenship or residence on the part of that body,
but leaving these to be implied by the court, sues or is sued.
In the case under review, the party defendant below is averred to
be the Philadelphia, Wilmington, and Baltimore Railroad Company, a
body corporate in Maryland, incorporated by a law of Maryland.
Here, then, is averred neither citizenship, nor an identity with,
nor an equivalent for citizenship, nor residence, nor commorancy
anywhere on the part of the defendant. The corporate body is stated
to be
in Maryland, but whether in its organized
constitution, or by the citizenship of its president and directors,
or by its individual members, or whether in either character it is
or is not of Maryland, is left to the court to supply, and this too
in defiance of the unbroken chain of decisions from
3
U. S. 3 Dall. 382 down to
19 U. S. 6 Wheat.
450, comprising twelve distinct cases,
Page 62 U. S. 217
ruling,
in totidem verbis that under the second section
of the third article of the Constitution, not only must the parties
to suits in the federal courts be citizens and inhabitants of
different states, but that this character must be averred expressly
and must appear upon the record, and cannot be inferred from
residence or locality, however unequivocally stated, and that the
failure to make the required averment will be fatal to the
jurisdiction of a federal court, either original or appellate, and
is not cured by the want of a plea or of a formal exception in any
form, and that even the party who is guilty of the irregularity may
avail himself of it upon appeal.
This case is marked by peculiarities which, if they can,
consistently with the rules of pleading and evidence, be regularly
brought into view will show more clearly than has hitherto been
done the effects of the anomalous proceedings above adverted to. It
is ruled by all the cases that where want of jurisdiction in the
federal courts is apparent on the face of the pleadings, the
courts, original and appellate, are bound to take notice of this
defect, and that there can be no requisition on parties to show it
either by averment or proof. The establishment of this principle
certainly dispenses with the necessity for proofs in such a case,
for why undertake to establish by proof that which is admitted?
Moreover, the character of the defect partakes more, perhaps, of
matter of law than of fact. Hence it may be questionable how far
the introduction of any evidence, and still more of cumulative
evidence, is or was admissible to show this admitted or patent
defect, which it has been so often ruled that the court must take
notice of without plea or demurrer. But we see by the record that
evidence, extensive and documentary, was introduced as to this
point and read without objection. And to what conclusions does this
evidence, if admissible, inevitably lead? According to the
decisions previously made here with respect to corporations --
according, too, to the argument of counsel for the defendant in
error -- the Baltimore Railroad Company was created separately and
exclusively by the State of Maryland, and its attributes of suing
or being sued, and every other attribute or function, were imparted
and perfected by that separate authority, which was
Page 62 U. S. 218
limited by the power of Maryland. So too, the Philadelphia
Railroad Company was separately and independently created by
Pennsylvania, and in like manner and with like effect the Delaware
Railroad Company by the State of Delaware. Neither of the states
just mentioned had the power to create a citizen of another state,
nor to create or invest any attribute or right of citizenship
beyond its own jurisdiction. It follows, then, that the
incorporation of these companies was in each a separate,
independent, and distinct and complete act, operating only within
the sphere of the legitimate authority that performed it, and any
right or attribute of citizenship it could confer would be imparted
to its own subjects alone; it could not determine the polity of
other communities or the rights of their people. But, by some
professional magic, these three separate creations which, if
invested with any of the qualities of citizenship, were necessarily
circumscribed as to these by the authority of their respective
states, are here converted into one. These three
quasi-citizens of different states are transformed into
one, and although three-fold in form, less than one; and by this
transformation are brought into tribunals where real citizens are
not permitted to litigate without averring, and if denied, not
without proving the truth and reality of their character in
obedience to the command of the Constitution. In the present
instance, this may subserve the convenience of the individual, but
in another aspect the mischiefs incident to such a relaxation would
be apparent and serious. It would be putting it in the power of
separate corporations, deriving their origin from distinct sources
by claiming a joint name or title, to select at will, for its
purposes, a forum within that jurisdiction, within which either
corporate body was created. The averments of citizenship and
residence being dispensed with by this Court, no check is left to
such a combination and irregularity, and by this practice there is
extended to artificial bodies, which are not and cannot, from the
nature of things, be citizens, privileges which belong by the
Constitution to citizens only, and upon proof, if required, of the
reality of their character as such.
It has just been remarked that the arguments against the
Page 62 U. S. 219
jurisdiction of the federal courts over corporate bodies may be
found in some of the opinions delivered in the case of
Marshall
v. Baltimore & Ohio Railroad Company, and it is said that
these arguments it is unnecessary to repeat, and it is seen that
they have not been deemed of sufficient cogency to prevent a
concurrence in proceedings and pretensions which those arguments
were urged to condemn.
The relevancy or the justice of the above declaration I confess
myself somewhat at a loss to comprehend. If it be intended by way
of recantation prompted by a conviction of the unsoundness of those
arguments, and as a criticism upon those who are unable to chime in
with the notes of such a palinodia, it would seem to me that a
direct avowal of that conviction and of the consequences to which
it had led would have been nothing more than justice to all. If, on
the other hand, the soundness of those arguments is still regarded
as a regular deduction from constitutional principle and from
fealty to the Constitution, then a relinquishment of those
arguments, or the failure to assert them on every occasion similar
to that first calling them forth, however justifiable in the view
of others, would in myself, by myself, be felt as a compromise of a
sacred and solemn duty. The vindication of truth, whenever we shall
be called on to speak or to act, can never, in my opinion, be
properly shunned;
I therefore am bound to reassert all
which I have endeavored earnestly, however feebly, to maintain and
which I still believe.
I am further of the opinion, that apart from any question as to
the peculiar jurisdiction of the federal courts, this action could
not be maintained in any
forum possessing even general
legal powers. It is to be borne in mind that the proceedings in
this case are not founded upon any express or peculiar right or
authority vested by statute or other special and competent power,
but are claimed as the legitimate consequences inherent in, and
flowing from, the nature and constitution of corporations
aggregate. By those who affirm this doctrine it is indispensable
that they should show as inherent in and consistent with the
constitution of such corporations, the attributes and qualities to
which proceedings like the present are calculated
Page 62 U. S. 220
to apply, and with which they can by any rational or logical
comprehension be made applicable. The metamorphosis which would
transmute an aggregate corporation into a natural person must
necessarily transfuse into this new creation the capabilities and
qualities of the being into which it is changed. Upon any other
hypothesis, the fact of identity could not be. Natural persons are
capable of the passions of love and hate; can contend in mortal
combat by duel or otherwise; can go into the field in command of
armies; can sit upon the bench of justice, or in the legislative or
executive departments of the government. According to this
transmutation theory, all these qualities are imparted to its new
promethean experiment, who, of course, could he be only apprehended
or laid hold of, might, like his prototype -- or, more properly,
his other self -- be subjected for the misuse of those qualities to
the extremest penalties of the law, the scaffold or the gallows. To
my apprehension, this theory involves the confounding of all
political, legal, moral and social distinctions. By that
apprehension, derived from the definitions of corporations
aggregate, as given by Brooke, Coke, and Blackstone and by the
express language of this tribunal in the earlier cases decided by
it, these bodies are regarded as merely artificial -- a species of
fictiones juris, created for particular objects and vested
certainly with no greater or higher attributes than the creator of
those bodies has power to bestow. Man can have no power to confer
mind, passion, or moral perception, nor moral powers, upon a mere
fabrication of his own -- a mere piece of parchment or paper. No
quo animo, therefore, can be affirmed of a fiction to
which no
animus or passion or moral quality can be
imparted.
It has ever been admitted that into slander or libel malice
essentially enters. Slander or libel is an injury inflicted with a
wicked or malevolent motive. Reason and common sense would hence
conclude that where there could be motive of no kind whatsoever,
there could be no malice and therefore no offense of which malice
is the essential, the leading and distinguishing
characteristic.
In several of the English cases, it has been ruled that
trover
Page 62 U. S. 221
and trespass
quare clausum fregit may be maintained
against a corporation, and this, with respect to the latter action,
is going a great way, as it is not very easy to explain in what
mode a mere fiction or legal faculty can act
vi et armis;
yet a conceivable distinction may be taken between acts injurious
in their effects and viewed as mere facts, and performed
independently of or without motive, and for which the actor is
bound to make reparation, and conduct the character of which lies
exclusively in the motive, and which, apart from such motive, can
neither exist nor be conceived.
In conformity with these conclusions is the opinion of Aldersen
Baron, as late as the year 1854.
Vide 10 Exch.Rep. 356;
Stevens v. Midland Counties Railway Co.
But a precedent for the affirmation of such a legal, physical,
and moral anomaly as an act to be characterized and appreciated by
a quality which by no possibility can appertain to it is relied
upon in this case, and so far as that precedent is comprehended, it
seems designed, at any rate, for an application like the one made
of it in this cause. It is believed, however, to be a solitary
precedent, and as the force of that precedent (owing, perhaps, to
no fault in his Lordship's reasoning but in those who are incapable
of understanding his logic) is not very clearly apprehended, and as
it most certainly contravenes the course of decision for centuries,
the presumption of not yielding implicitly to the ruling of a Lord
Chief Justice may perhaps be pardoned. This precedent is found in
the case of
Whitfield v. Southeastern Railway Company,
just cited from the bench. That was an action for a
libel,
and the declaration was demurred to, for the reason that
malice could not be affirmed of a corporation
aggregate.
His Lordship says:
"The demurrer to the declaration in this case can only be
maintained on the ground that the action will not lie without proof
of
express malice, as contradistinguished from
legal malice."
How is this expression of his Lordship to be understood? The
averment of malice and the application of that averment to the
defendants was a question arising upon the pleadings and upon the
character or capacity of the party complained of,
Page 62 U. S. 222
as disclosed upon the face of the declaration. Whether malice,
either
express or
implied, could be imputed to
the plaintiff, could have no influence
a priori; if malice
was alleged, it opened at once the only legitimate question arising
upon the demurrer,
viz., could the defendants be guilty of
malice? The character or the degree of malice was a question
arising upon the proofs, and was the proper subject for the
instructions from the judge. It would be difficult to find a
precedent in pleading wherein a distinct averment as to
express or
implied or legal malice was made.
His Lordship proceeds: "But if we yield to the authorities which
say that in an action for defamation malice must be alleged,
notwithstanding authorities to the contrary." And here, with a
willingness always to be instructed, I would gladly learn what
authorities those are to which reference is thus made, for within
the sphere of my own inquiries, going as far back as Owen 51; Noy
85; 1 Saunders 242; 4 Bur. 2423; 3 Taunton 246, and coming down to
8 Adolph. & Ell. 652; 1 Maule & Selwin 639, it is held,
without a dissentient that the declaration must show a malicious
intent in defendant, and although the word "maliciously" is not
absolutely necessarily requisite, yet words of equivalent import
must be used, and it is said that the usual and better form of
pleading is "
falsely and
maliciously."
Vide 1 Rep. 273.
His Lordship further proceeds, or is made to say:
"This allegation may be proved by showing that the publication
of the libel took place by order of the defendants, and was
therefore wrongful, although the defendants had no ill will to the
plaintiffs and did not mean to injure them. Therefore (note the
conclusion), 'The ground on which it is contended that an action
for a libel cannot be maintained against a corporation aggregate
fails.' He who can connect this corollary with the premises
surpasses any ingenuity of mine."
To return to his Lordship's argument:
"This allegation may be proved." What allegation, we ask? Why
the
libel, a
malicious publication, "by showing
that it took place by order of the defendants, although the
defendants had no ill will to the plaintiffs, and did not intend to
injure them." Thus it is said to be the law, that a libel may
exist
Page 62 U. S. 223
without an unfriendly intention, and with equal reason might it
be alleged or imputed where the intention was amicable.
I give the concluding reasons ascribed to his Lordship for his
decision. They are as follows:
"I may mention that corporations aggregate are now so common
that I believe that a public journal is conducted by a corporation
aggregate limited. Therefore it seems to us that for what is done
by the authority of a corporation aggregate, that a corporation
aggregate ought, as such, to be liable as well
perhaps as
the individuals.
Therefore we think there ought to be
judgment for the plaintiffs."
The connection between the number of aggregate corporations and
their capacities or liabilities and the dependence in any degree of
the one upon the other I leave to those who have been favored with
greater perspicacity than has been given to me. I am wholly unable
to perceive them.
In fine, with due respect for others and with becoming
diffidence of myself, I am constrained to say, of the opinion in
the case of
Whitfield v. Southeastern Railway Company as
it has been brought to the view of this Court, that in its
arguments and conclusions it is confused and obscure, and is
incongruous and contradictory both in its reasoning and its
conclusions. In the line of English adjudications, it presents
itself as solitary and eccentric, and in opposition to the most
inveterate, the clearest and reiterated distinctions announced by
the sages of the law -- distinctions having their foundation in
reason and in the essential character of the subjects to which
those distinctions have been applied. I cannot yield to that
opinion my assent. I think, therefore, that for either of the
objections before assigned there should be added to the reversal of
the judgment of the circuit court an order for a dismission of the
suit.