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National Refining Co. v. Benzo Gas Motor Fuel Co., 20 F.2d 763, 55 A.L.R. 406

Facts

The Benzo Gas Motor Fuel Company was engaged in producing and selling a motor fuel mixture of benzol and gasoline in Kansas City, Missouri. The defendant, National Refining Company, published a leaflet containing statements that disparaged the plaintiff's product, claiming it was harmful. The plaintiff claimed these statements were false and maliciously intended to harm its business, leading to a jury verdict awarding damages. However, the defendant contended that the statements were not libelous per se and that the plaintiff did not prove special damages.

The complaint alleges that plaintiff (defendant in error) was on September 1, 1924, and for several years prior thereto had been engaged in business in Jackson County, Missouri, and elsewhere, producing and selling for profit a motor fuel consisting of a mixture of benzol and gasoline under the trade name of Benzo Gas.

Issue

Were the statements made by the defendant libelous per se against the plaintiff, and did the plaintiff adequately prove special damages?

The vital question in the case, therefore, is: Were the statements libelous per se?

Rule

A publication is considered libelous per se if it imputes fraud, deceit, or dishonesty to the plaintiff, or if it disparages the plaintiff's goods in a way that causes special damages.

In an action for libel or slander, it shall not be necessary to state in the petition any extrinsic facts, for the purpose of showing the application to the plaintiff of the defamatory matter out of which the cause of action arose, but it shall be sufficient to state, generally, that the same was published or spoken concerning the plaintiff.

Analysis

The court analyzed whether the statements in the leaflet were libelous per se by considering the nature of the statements and their implications. It concluded that the statements did not directly accuse the plaintiff of fraud or dishonesty, nor did they reflect on the integrity of the plaintiff. Instead, they primarily concerned the quality of the product, which required proof of special damages to be actionable. Since the plaintiff failed to provide such proof, the court found in favor of the defendant.

We think the article was not libelous per se, and was not actionable unless special damage was alleged and proven.

Conclusion

The court reversed the judgment in favor of the plaintiff, determining that the statements were not libelous per se and that the plaintiff did not establish a basis for recovery of damages.

The motion for a directed verdict in favor of defendant should have been sustained.

Who won?

National Refining Company prevailed in the case because the court found that the statements made were not libelous per se and that the plaintiff failed to prove special damages.

The court ultimately reversed the judgment in favor of the plaintiff, concluding that the statements were not libelous per se and that the plaintiff failed to prove special damages.

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