Citizens Gas & Electric Co. v. Black
Citizens Gas & Electric Co. v. Black
Opinion of the Court
There is no claim that any express authority was conferred on Adams to utter a slander in connection with his agency at Lorain, nor was there any evidence of a ratification by the corporation of the agent’s action. The only question presented is whether, in the absence of express authority or ratification, the defendant could be held liable under an implied authority conferred by reason of the general scope of employment under which Adams was then acting in the furtherance of the corporate business. .Stated broadly, it may be that there is m> “agency to slander” arising from the mere fact of an agent’s employment; but, under the current of modern authority, if a corporate servant, who has been fully delegated with plenary authority to act upon a matter in his master’s stead and to whom has been committed a full discretion as to the manner of its performance, utters a slander while engaged in the furtherance of the master’s business, so delegated, the master may be held liable.
The rule of responsibility, involving the liability of corporations under the maxim respondeat superior, is stated in Little Miami Rd. Co. v. Wet
In the instant case it appears from the record that while the general offices of the plaintiff in error were in Columbus, Adams himself was the local manager and had full and complete authority over the operations of the company in the city of Lorain. The discovery that electricity was appropriated
An agent with a lower status than manager or officer of a corporation may bind his principal by a slanderous statement. This phase deals with the degree of proof required rather than in any distinction of the legal principle involved. Where
The. legal principle underlying the facts presented in the instant case has been applied in the following cases:
Washington Gas Light Co. v. Lansden, 172 U. S., 534, was an action against a corporation for libel committed by its manager. There the corporation was released from liability because the manager had no authority over the subject-matter from which the libel arose: In the course of the opinion, at page 544, Mr. Justice Peckham said, “There must be evidence of some facts from which the authority of the agent to act upon or in relation to the subject-matter involved may be fairly and legitimately inferred by the court or jury.”
Payton v. People’s Credit Clothing Co., 136 Mo. App., 577, 118 S. W. Rep., 531, was an action against a corporation for slander uttered by its manager in connection with the settlement of an unpaid bill. It was there held that, as the scope of the manager’s employment included the collection and adjustment of accounts, and the slanderous words were spoken in relation to and in the performance of that duty, the manager was the alter
Hypes v. Southern Ry. Co., 82 S. Car., 315, 64 S. E. Rep., 395, was also an action in slander against the corporation, for language used by its general division superintendent. It was there held that the corporation is liable for the slander uttered by its agent, while acting within the scope of his employment and in the actual performance of the duties of the corporation touching the matter in question.
In the case at bar the defamatory language was used by Adams in the prosecution and furtherance of his principal’s business; the subject-matter in question at the time was one which Adams had full power as manager to adjust and settle. From the record we are unable to say that there was any other or higher degree of agency employed by the company, to whom was assigned the specific duty of dealing with the matter involved and to whom had been confided fully the means and methods of adjustment. The jury passed upon these issues of fact and found against the defendant.
We are aware that in similar cases this modern and more liberal rule in favor of liability is not followed in some jurisdictions, but the weight of judicial authority supports it. The Kentucky court of appeals denies corporate liability for slander unless expressly authorized or ratified. Duquesne Distributing Co. v. Greenbaum, 135 Ky., 182, and Stewart Dry Goods Co. v. Heuchtker, 148 Ky., 228.
The judgment of the court of appeals is affirmed.
Judgment affirmed.
Reference
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- Syllabus
- Corporations — Liable for agent's slander, when — Managing agent is alter ego of company, when — Scope of employment — Authorisation and ratification. 1. A corporation is liable for slander uttered by its local managing agent while acting within the scope of his employment and in the performance and furtherance of his principal’s business, touching the matter in which he was empowered to act. 2. A local managing agent of a corporation, to whom has been entrusted the control of its local business of distributing gas and electricity in a city and the adjustment and settlement of accounts arising from leakage on the premises of its con- , sumers, is, in that connection, the alter ego of the company; and slanderous words spoken by him in the prosecution and furtherance of the business, which are unprovoked and not due merely to personal malice, are within the scope of his employment and his principal is liable therefor although it ' has neither authorized nor ratified the agent’s act.