Majority
Plaintiffs appeal from a judgment in favor of defendants, The Daily Review, Inc., a corporation, and Charles Hegg Peterson,[1] after a jury verdict in a libel action. The appeal is directed solely to the propriety of certain jury instructions.
Statement of the Case
Plaintiffs,[2] who are engineering contractors and whose business is conducted primarily in Southern Alameda County, were, in the fall and winter of 1960-1961, engaged in paving several blocks of “A” Street in the City of Hayward. Plaintiffs were performing this work pursuant to a contract with the City of Hayward, this job having been awarded to them as the lowest bidder. Although the original contract specified that the work was to be completed by November 5, 1960, plaintiffs had requested and been granted several extensions of time (to January 25, 1961; January 30, 1961; February 9, 1961; February 13, 1961; and finally April 25, 1961), in each case without the assessment of liquidated damages. As to each of these extension requests, plaintiffs claimed that they could not complete their work until certain utilities had been relocated by the telephone company and the City of Hayward, and that neither of these two projects had been timely performed.
On February 14, 1961, during the course of a Hayward
1 Although the complaint also named as defendants, in addition to several Does, George Lower and Floyd Sparks, the editor and the publisher and proprietor, respectively, of The Daily Review, these two defendants as well as the fictitious defendants were dismissed from the action prior to trial.
2 Plaintiffs Anthony and Irving Williams were in 1960-1961 acting as a copartnership (Williams Brothers) and were in the process of incorporating, the corporation to bear the name Williams Brothers Construction Company, Inc.
Peterson, a reporter for The Daily Review, which is published by defendant corporation and had at the time of this meeting a circulation of 26,498 generally in the cities and unincorporated areas of Southern Alameda County, attended the council meeting and prepared the following article, which appeared in The Daily Review on February 15,1961:
“A Street Work Delay Attacked
“Another of Hayward’s street paving jobs has produced a headache, both for Public Works Dept, engineers and residents along A Street east of Second Street.
“Public Works Director Edward Phillips acknowledged last night that the contractor has fallen behind schedule and has been warned that the city may assess liquidated damages for his tardiness.
“Councilman Vern Blichfeldt raised the question of delay on the job on behalf of A Street residents who have had to contend with a torn up street since last fall.
“Contractor on the project is Williams Bros., Union City, which received the contract with a bid of $80,006, some 25 per cent below the city’s estimate of more than $107,000.
“The city’s problems are reminiscent of an earlier situ
ation on Tennyson Road, where a cheaply hid job dragged on for months past the original target date for its completion.
“While the city's project has languished, the county has finished widening A Street between the city limits and Grove Way, including a four-land [sic] bridge over San Lorenzo Creek. The two jobs started at about the same time."
On February 16, 1961, Irving Williams wrote a letter to The Daily Review notifying defendants of the alleged libelous publication and demanding a correction.[3] Defendants refused to print a retraction, whereupon plaintiffs brought the instant libel action in which they sought to recover $100,000 general damages, $15,000 special damages, and $10,000 exemplary damages.
All of plaintiffs’ assignments of error on appeal deal with the instructions which the trial court gave to the jury. These assignments of error deal not only with the substance of the instructions relating to the meaning of the alleged libel and the issue of privilege, but also with the respective function and role of the court and jury in the determination of these issues.
Instructions Relating to Whether the Publication was Defamatory
Plaintiffs contend initially that the trial court should itself have determined that the publication was libelous as a matter of law or, at least, libelous on its face and should have so instructed the jury. Because of the complexity of the law in the area of libel and the diversity of meanings to which some of the relevant terms are susceptible, we precede our discussion of this contention with a general discussion of the principles of law which govern in this area.
Libel is defined in Civil Code section 45[4] as follows: “Libel is a false and unprivileged publication by writing, printing, picture, effigy, or other fixed representation to the eye, which exposes any person to hatred, contempt, ridicule, or obloquy, or which causes him to be shunned or avoided, or which has a tendency to injure Mm in his occupation. ’ ’
An important distinction is made in California between defamatory language which is libelous on its face and that
3 Civ. Code section 48a provides in part that where the publication of a libel is in a newspaper the plaintiff shall recover no more than special damages unless a correction is demanded and is not published.
4 Unless otherwise indicated all statutory references are to the Civil Code.
It should be here noted that language may be libelous on its face even though it is susceptible of an innocent interpretation. As stated by the Supreme Court in MacLeod: ‘1 The test is whether a defamatory meaning appears from the language itself without the necessity of explanation or the pleading of extrinsic facts. If it does, ‘whether the charge be directly made or merely implied, the publication—without averment, colloquium, or innuendo—will, in itself, constitute a libel' The fact that an implied defamatory charge or insinuation leaves room for an innocent interpretation as well does not establish that the defamatory meaning does not appear from the language itself. The language used may give rise to conflicting inferences as to the meaning intended, but when it is addressed to the public at large, it is reasonable to assume that at least some of the readers will take it in its defamatory sense. ” (P. 549.)
Whether a publication is libelous on its face, or, as sometimes referred to by the cases, “libelous per se,” is a question of law. (Howard v. Southern Cal. etc. Newspapers, 95 Cal.App.2d 580 , 584 [ 213 P.2d 399 ]; Freeman v. Mills, 97 Cal.App.2d 161 , 165-166 [ 217 P.2d 687 ]; Mercado v. Hoefler, 190 Cal.App.2d 12 , 21 [ 11 Cal.Rptr. 787 ].) Where there is an ambiguity as to what the words mean, semantically, the court finding two meanings reasonably possible, one derogatory
5 Section 48a, subdivision 4(b), defines ' special damages’’ as follows: “ ‘Special damages’ are all damages which plaintiff alleges and proves that he has suffered in respect to Ms property, business, trade, profession or occupation, including such amounts of money as the plaintiff alleges and proves he has expended as a result of the alleged libel, and no other; ...”
In the light of the foregoing principles, the publication in the instant case was libelous per se. The subject article tends to injure plaintiffs’ reputation with respect to their occupation. Although it contains no statement which is explicitly defamatory, the article nevertheless insinuates, without the necessity of resorting to extrinsic material, that plaintiffs were responsible for the delay in the “A” Street project and that they were incompetent in the preparation of their bids for the job and in the performance of the job itself. “A defendant is liable for what is insinuated, as well as for what is stated explicitly.” (Bates v. Campbell, 213 Cal. 438 , 442 [ 2 P.2d 383 ]; Maidman v. Jewish Publications, Inc., supra, p. 651.) In essence, the subject article impliedly charges plaintiffs with conduct inconsistent with the due fulfillment of what they, by virtue of their employment, had undertaken. Such a charge or insinuation has been held to be libelous per se. (Maidman v. Jewish Publications, Inc., supra, p. 651.) As we have indicated, the fact that the language of a publication is susceptible to an innocent interpretation as well as a defamatory one does not preclude a trial court from
However, the language of the subject article is such that it cannot be said that as a matter of law it could only be understood in a defamatory sense. The implied defamatory charge or insinuation is couched in language which leaves room for an innocent interpretation as well. Thus, while the language that “The city’s problems are reminiscent of an earlier situation on Tennyson Road, where a cheaply bid job dragged on for months past the original target date for its completion” is susceptible of the meaning that the subject job was lagging because plaintiffs were incompetent in submitting a cheap bid, it is also susceptible of the meaning that the subject delay recalled to mind a previous street construction delay caused by “a cheaply bid job. . . .” This latter interpretation would not necessarily impel the inference that the delay in the instant case was the result of plaintiffs’ low bid. Accordingly, since the subject article was also susceptible of an innocent meaning, the trial judge should have left it to the jury to determine in what sense the readers understood the article.
In the instant case, although the court instructed the jury that the article was ambiguous and susceptible of two meanings, “one, harmless, and the other defamatory” and that it was for the jury to determine whether its meaning was defamatory, false and unprivileged, it specifically instructed the jury that the article was not libelous on its face and, therefore, not actionable unless plaintiffs proved that they suffered special damage.[6] The instructions that the article was not libelous per se constituted error. The trial court was apparently under the impression that because the
6 Among these instructions are the following: “The Court has determined in this case that the language of the article as published is not libelous per se or, as we say, libelous on its face; but that the language of said article is ambiguous and that it is susceptible of two meanings— one, harmless, and the other defamatory. ’ ’ “Defamatory language, not libelous on its face, is not actionable, unless the plaintiffs allege and prove that they have suffered special damage, as a proximate result thereof. Special damages are all damages which plaintiffs allege and prove that they have suffered in respect to their property, business, trade, profession or occupation, including such amounts of money as the plaintiffs allege and prove they have expended as a result of the alleged libel, and no other. ’ ’
The Remaining Assignments of Error
Since the judgment must be reversed, it is not incumbent upon us to consider the remaining assignments of error having to do with instructions concerning the applicable “reader test” and the issue of privilege. However, since these questions may arise at retrial, we shall, for the guidance of the trial court, proceed to discuss these assignments of error.
Plaintiffs assign as error instructions advising the jury that the standard to be applied in determining the sense in which the subject article was understood is that of the “average reader” and the “general reader.”[7] The position taken by plaintiffs is that the “average reader” test is the proper one to be used initially by the court in determining whether the language is suceptible to a defamatory interpretation, but that the application of this standard ends with this determination, and “Thereafter it was a question of fact whether the language was so understood. ’ ’ Plaintiffs do not, however, suggest what test the jury should have been instructed to use in making this factual determination. Ap
7 These instructions read as follows: “Whether or not this newspaper account was so understood by the readers of The Hayward Daily Eeview is a question, for the jury to determine, and the standard by which you make such a determination is the natural and probable effect of such a publication on the mind of the average newspaper reader. In the final analysis you are to determine whether it is reasonable or unreasonable to conclude that the average reader of The Hayward Daily Eeview inferred from the article the matters alleged by the plaintiffs in their complaint, as above stated. “Unless you find from a preponderance of the evidence that such was the meaning conveyed to the average reader, your verdict should be in favor of the defendants irrespective of any other issue in the case.” “In determining whether or not the defendants have sustained their burden of proving the truth of the statement in the publication, you are to consider all of the evidence, and take the entire publication into consideration, and give to it that plain, ordinary usual, natural interpretation which would be usually given by the general reader. Neither the sense in which the plaintiffs may have understood it, nor the meaning which the defendants may have contemplated, is to govern you in your determination. In this case you are to look at the article alone, and regard it in the meaning in which it would ordinarily be accepted by the average man for whom it was intended.”
In MacLeod, the Supreme Court was called upon to determine whether a complaint stated a cause of action in a case wherein the alleged libel consisted of an article charging that the plaintiff was a communist sympathizer or fellow traveller. After stating that a charge of membership in the Communist Party or communist affiliation or sympathy is libelous on its face the court stated as follows: “Whether or not the article is reasonably susceptible of this interpretation is a question for the court and, if so, whether or not it was so understood is a question for the jury’’ (p. 546), and then reiterated the following statement from Bates v. Campbell, supra, 213 Cal. 438 , 442: “ ‘ “And in passing upon the sufficiency of such language as stating a cause of action, a court is to place itself in the situation of the hearer or reader, and determine the sense or meaning of the language of a complaint for libelous publication according to its natural and popular construction.’’ That is to say, the publication is to be measured not so much by its effect when subjected to the critical analysis of a mind trained in the law, but by the natural and probable effect upon the mind of the average reader. ’ ’ ’ (Italics added; p. 547.) (To the same effect see Sullivan v. Warner Bros. Theatres, Inc., 42 Cal.App.2d 660 , 662 [ 109 P.2d 760 ]; Smith v. Los Angeles Bookbinders Union, 133 Cal.App.2d 486 , 492-493 [ 284 P.2d 194 ]; Western Broadcast Co. v. Times-Mirror Co., 14 Cal.App.2d 120 , 124 [ 57 P.2d 977 ].) In Megarry v. Norton, 137 Cal.App.2d 581 , 583 [ 290 P.2d 571 ], we find the following statement: “In determining whether words are capable of defamatory meaning, the courts will construe them according to the fair and natural meaning that will be given
In relation to the issue of privilege plaintiffs make two contentions: Firstly, that the trial court should have ruled on the issue of privilege as a matter of law, and, secondly, that in substance the instructions given by the trial court on this issue were erroneous.[8] In urging error with respect to these
8 These instructions were as follows: “You are instructed further that the defendants, as I previously indicated in summarizing the pleadings, have raised three defenses to the complaint on file in this case, and that these defenses have heen set forth in defendants ’ answer which was read to you at the outset of my instructions. “The first of these defenses is truth; the second of these defenses is privilege, being a fair and true report of the proceedings of a public meeting; and the third of these defenses is also privilege, as being fair comment for the public benefit.” “You are instructed that section 47 of the Civil Code of the State of California, as the same was in effect at the time of the incident in question, read in part as follows: section 47, quote: “ (Eeading) : “ ‘47. A privileged publication or broadcast is one made . . . (5) By a fair and true report of (1) the proceedings of a public meeting, if such meeting was lawfully convened for a lawful purpose, and open to the public, or, (2) the publication of the matter complained of was for the public benefit.’ (End reading.) Close quote. “You are instructed that if you find that the article, as published, was a fair and true report of the proceedings of a public meeting, or that the publication of the matter complained of, was for public benefit, that such publication is privileged in the absence of malice.” “Defendants have also pleaded the defense of fair comment, that is, that the publication complained of was and is fair comment and criticism by a newspaper concerning a subject of interest to the public. The condition of streets, the use of them by taxpayers, and the inconvenience to taxpayers caused by delay in repair or alteration of streets, are matters in which the taxpayers of the City of Hayward were interested. Under these conditions, if the publication is not actuated by malice, it is privileged and, therefore, as such cannot render the defendants liable for damages.”
Adverting to the claim that the trial court should have ruled on the issue of privilege as a matter of law, we have difficulty determining whether the thrust of plaintiffs’ argument is that the trial court should have determined that privilege existed as a matter of law (an argument redounding to plaintiffs’ disadvantage), or whether the court should have found that, as a matter of law, the privilege issue was not a defense which defendants were entitled to urge. The record discloses that the trial court did determine that the “fair comment” privilege existed as a matter of law, and that, as to this issue, the only determination left for the jury was whether the publication was made maliciously. This determination was a proper one and the jury was correctly, instructed. The “fair comment” privilege allows a person to make “fair comment” on matters of “public interest.” (Maidman v. Jewish Publications, Inc., supra, 54 Cal.2d 643 , 651-652; Prosser on Torts, (3d ed. 1964) pp. 812-816.) In California the “fair comment” privilege is encompassed within the provisions of subdivision 3 of section 47 which privileges a publication made “In a communication, without malice, to a person interested therein, (1) by one who is also interested. . . .” It has been held that this qualified privilege exists whether the publication be in the form of opinion or of false statements of fact (Di Giorgio Fruit Corp. v. A.F.L.-C.I.O., 215 Cal.App.2d 560 , 569 [ 30 Cal.Rptr. 350 ]), and that the privilege extends to a newspaper. (Glenn v. Gibson, 75 Cal.App.2d 649 [ 171 P.2d 118 ]; Maidman v. Jewish Publications, Inc., supra, pp. 651-652.)
9 The pertinent portions of section 47, subd. 5, are correctly set forth as read to the jury in the instructions contained in fn. 8. Section 47, subd. 3, reads, in pertinent part, as follows: “A privileged publication . . . is one made—(3) In a communication, without malice, to a person interested therein, (1) by one who is also interested, or (2) by one who stands in such relation to the person interested as to afford a reasonable ground for supposing the motive for the communication innocent, or (3) who is requested by the person interested to give the information.”
Insofar as the section 47, subdivision 5, privilege is concerned, the jury was not properly instructed. The trial court instructed that if it found “that the article, as published, was a fair and true report of the proceedings of a public meeting, or that the publication of the matter corn
Prior to 1945 the privilege encompassed within section 47, subdivision 5, was a qualified one which could be nullified by a showing of malice. However, in 1945 the words “without malice” were deleted from this section by the Legislature. As a result of this deletion the privilege provided for in subdivision 5 of section 47 became an absolute privilege. Accordingly, it is apparent that as to publications claimed to be privileged under subdivision 5 of section 47 malice is not an issue and that, therefore, it was error to instruct the jury that a publication within the ambit of this subdivision is privileged in the absence of malice. By virtue of this erroneous instruction plaintiffs received a favorable instruction to which they were not entitled; hence they cannot complain. Such an instruction, however, was prejudicial to defendants since it advised the jury that in order to establish the defense of privilege under section 47, subdivision 5, defendants not only had to show that the publication was one that came within the provisions thereof, but also that it was made without malice.
As to whether the trial court should have determined as a matter of law that the subject article was privileged under section 47, subdivision 5, it is apparent that if the trial court had made this determination, in the light of the 1945 amendment to this section, plaintiffs’ case would at that moment have been totally and finally resolved against them. However, under the state of the record the trial court could not make this determination as a matter of law. Accordingly, the trial court was justified in leaving to the jury the determination of whether the subject publication came within the purview of subdivision 5 of section 47. The instruction given, however, was not only erroneous because it injected malice as an issue, but also because it purported to instruct the jury that if the publication was for the public benefit it was privileged. As we interpret subdivision 5 of section 47 a publication is privileged if it is a fair and true report of the proceedings of a public meeting lawfully convened for a lawful purpose and open to the public, or, alternatively, if it is a fair and true report of the proceedings of a public meeting which is not lawfully convened for a lawful purpose or not open to the public, provided that the publication is for the public benefit.
Under appropriate instructions, therefore, a determination by the jury that the publication was or was not a fair and true report of the proceedings specified in sub
The judgment is reversed.
Sullivan, P. J., and Sims, J., concurred.
A petition for a rehearing was denied September 2, 1965.
Cases cited
- Tonini v. Cevasco 114 Cal. 266 at 271 p. 410
- Schomberg v. Walker 132 Cal. 224 at 227-228 p. 410
- Macleod v. Tribune PublishIng Co. 52 Cal.2d 536 at 548-549 p. 410
- Babcock v. McClatchy Newspapers 82 Cal.App.2d 528 at 539 p. 410
- Howard v. Southern California Associated Newspapers 95 Cal.App.2d 580 at 584 p. 410
- Freeman v. Mills 97 Cal.App.2d 161 at 165-166, at 166 p. 410, p. 417
- Mercado v. Hoefler 190 Cal.App.2d 12 at 21 p. 410
- Maidman v. Jewish Publications, Inc. 54 Cal.2d 643 at 651, at 651-652 p. 411, p. 416
- Maher v. Devlin 203 Cal. 270 at 278-281 p. 411
- Bates v. Campbell 213 Cal. 438 at 442 p. 411, p. 414
- Sullivan v. Warner Bros. Theatres 42 Cal.App.2d 660 at 662 p. 414
- Smith v. Los Angeles Bookbinders Union No. 63 133 Cal.App.2d 486 at 492-493 p. 414
- Western Broadcast Co. v. Times-Mirror Co. 14 Cal.App.2d 120 at 124 p. 414
- Megarry v. Norton 137 Cal.App.2d 581 at 583 p. 414
- DiGiorgio Furit Corp. v. American Federation of Labor & Congress of Industrial Oragnizations 215 Cal.App.2d 560 at 569 p. 416
- Glenn v. Gibson 75 Cal.App.2d 649 p. 416
- Stevens v. Storke 191 Cal. 329 at 334-335, 337 p. 417
- Carpenter v. Ashley 148 Cal. 422 at 424 p. 417
- Adams v. Cameron 27 Cal.App. 625 at 638 p. 417
- Jones v. Express PubLishing Co. 87 Cal.App. 246 at 256 p. 417