Heath v. Hughes

Marbury, J., delivered the opinion of the Court. Having previously met in the halls of justice with appellant Heath as attorney representing clients in law suits opposing appellee Hughes, the two have now clashed in direct opposition in a libel suit instituted by the former against the latter. A directed verdict in favor of the appellee has brought the parties to this Court. We are asked to decide whether the trial court properly granted the defendant’s motion offered at the conclusion of the plaintiff’s case on the grounds that the writing was not libelous per se and, further, since there was no evidence of special damages, there was no basis for a finding of libel per quod.

The declaration was in two counts. Count I charged libel per se. Count II, adopting the allegations of Count I purported to set forth the necessary allegations to explain by inducement, colloquium and innuendo that the writing was libelous per quod. The appellant, John F. Heath, is a practicing attorney who previously operated a successful electrical contracting business, but who retired from that business in 1954 to devote his time thereafter exclusively to the practice of law.

The appellee, Joseph F. Hughes, is the president of Joseph F. Hughes & Co., Inc., general contractors. On several occasions prior to 1954, Heath had submitted unsuccessful bids to the Hughes company for electrical subcontracting, but he met Hughes personally for the first time in 1955. As an attorney representing the Central Electric Company, Heath appeared in opposition to Hughes’ unsuccessful law suit against the City of Baltimore for $610,000. Heath and Hughes had a second encounter during 1955 when ⁴⁶¹ Heath, again as an attorney, represented one William Stockhausen, trading as Central Electric Company, in a substantial claim against Hughes for money due for labor and materials.

Unsuccessful in collecting, suit was filed by Heath for Central Electric against Hughes and the plaintiff recovered a judgment. There was no further contact between Heath and Hughes until about 1961 when events leading to the instant suit occurred. At that time Heath was retained as attorney for George A. Peters of The George A. Peters Company, which had performed some electrical subcontracting work for Hughes and was having difficulty obtaining payment therefor. Peters turned the collection of the claim (approximately $59,000) against Hughes over to Heath.

Heath thereupon made demand on Hughes in behalf of Peters by letter dated October 26, 1961, as follows: John F. Heath Attorney At Law Munsey Building Baltimore 2, Maryland October 26,1961 Joseph F. Hughes Co., Inc. 5 E. Franklin Street Baltimore Maryland. Attention: Mr. Hughes. Re: Overlea Senior High School Dear Mr. Hughes: I have been retained by The George A. Peters Company to collect the amount due them for labor and materials furnished and installed by them on the Over-lea Senior High School, Baltimore County, Maryland. I am enclosing herewith their statement of the amount past due, and unless payment is made of this past due amount not later than October 30th, 1961, I expect to have the pleasure of collecting it from you, or your estate, together with interest from the date due.

I know you would not relish my getting such pleas ⁴⁶² ure, so I will expect your re-consideration of your refusal to pay this account by October 30th, 1961. Yours Positively, JOHN F. HEATH, Attorney for George A. Peters Company. Enclosure JFH/P (Rubber Stamp) Received Oct. 27, 1961 Joseph F. Hughes & Co., Inc. This letter was received by Hughes the following day. On October 31, Hughes wrote to Heath’s client, The George A. Peters Company, the following letter: Joseph F. Hughes & Co. (Incorporated) General Contractors Baltimore 2, Md. 5 E. Franklin Street MUlberry 5-4078 October 31, 1961 The George A. Peters Company 2116 Maryland Avenue Baltimore 18, Maryland Re: OVERLEA SENIOR HIGH SCHOOL Gentlemen: We are in receipt of a zany letter from a character, signing himself John F. Heath, alleging that you have turned over your affairs to him.

The only Heath, of whom the undersigned has any knowledge, is an electrician who has an office in the Munsey Building and, some time in the past, endeavored to build a business in the electrical contracting field. As we have always had great confidence in the good ⁴⁶³ sense and good judgment of your people, we hope that Heath’s allegations are completely without basis but will recognize any statement properly authorized by your corporation. Very truly yours, JOSEPH F. HUGHES & Co., Inc., JOSEPH F. HUGHES, President. JFH :rja It is this letter which gave rise to the present action.

Peters testified that upon receipt of Hughes’ letter he was disturbed and discussed it at a regular progress meeting with his five company executives. He made an appointment to see Heath to discuss with him the continuation of Heath’s services. Reassured that Heath could handle the claim, Peters allowed Pleath to continue to represent him in the matter with Hughes. Appellant was not entitled to recover under Count II of his declaration, charging libel per quod.

It is well settled that if the language used is not defamatory per se, the plaintiff is required to allege and prove that special damages resulted from the publication. Bowie v. Evening News, 148 Md. 569 , 129 Atl. 797 ; DeWitt v. Scarlett, 113 Md. 47 , 77 Atl. 271 ; 1 Poe, Pleading and Practice