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Smart Summary

Factual and Procedural Background

The plaintiff, William Lynch, brought an action for libel against the defendant, The New York Times Company, based on a publication reporting the proceedings in a criminal court involving a relative of the plaintiff who had assumed the plaintiff's name. The defendant's publication included false and derogatory statements about the plaintiff, which would have been true if referring to the person arraigned but were incorrect as to the plaintiff himself. The plaintiff did not allege special damages, and it was apparent that the publication was without actual malice and resulted from a mistake.

The trial court charged the jury that the article was libelous per se and that the defendant's plea of privilege was not applicable. The jury was instructed on damages, including the possibility of nominal, substantial, or exemplary damages depending on findings of malice and injury. The jury returned a verdict for the defendant, which the court set aside as technically erroneous, reasoning that under the law and instructions given, the plaintiff was entitled at least to nominal damages. The trial court ordered a new trial, which was appealed.

Legal Issues Presented

  1. Whether a jury verdict for the defendant in a libel case is legally permissible when the court's instructions establish that the plaintiff is entitled at least to nominal damages.
  2. Whether a verdict should be set aside and a new trial ordered solely because the jury returned a verdict for the defendant instead of for the plaintiff with nominal damages.
  3. The proper scope of the jury's discretion in awarding damages in libel cases, particularly when no actual malice is found and no special damages are alleged.

Arguments of the Parties

Respondent's Arguments

  • The publication was libelous per se.
  • The defendant was not entitled to a privilege defense.
  • The jury instructions on damages were satisfactory and no exception was taken.
  • The jury's verdict for the defendant was technically erroneous given the court's instructions entitling the plaintiff to at least nominal damages.

Appellant's Arguments

  • The article was published without actual malice and was a mistake.
  • The jury was properly instructed and had the discretion to find no damage and thus render a verdict for the defendant.
  • The verdict should not have been set aside because it reflected the jury's view that the plaintiff suffered no injury.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Funk v. Evening Post Pub. Co., 76 Hun 497; affd., 152 N.Y. 619 Established rule that a verdict will not be set aside where there is no court error and no property rights involved, simply because the verdict is for the defendant instead of nominal damages for the plaintiff. The court relied on this precedent to affirm that the jury's verdict for the defendant, despite instructions entitling nominal damages, should not be set aside absent error or misdirection.
Throckmorton v. Evening Post Pub. Co., 35 App. Div. 396 Reiterated the rule that a verdict will not be disturbed solely because it awards defendant victory over nominal damages plaintiff. The court found the present case analogous, supporting reinstatement of the jury's verdict.

Court's Reasoning and Analysis

The court recognized that the plaintiff was entitled to nominal damages under the law and the trial court's instructions. However, the jury returned a verdict for the defendant, likely due to a lay misunderstanding that no damage means no verdict for the plaintiff. The court emphasized that in libel cases, damages are often subjective and difficult to quantify, and the jury is the supreme arbiter of damages. The court cited established precedent holding that a verdict will not be set aside merely because it favors the defendant over a nominal damages verdict for the plaintiff, provided there was no error or misdirection by the court and no property rights were at stake. Since the plaintiff took no exception to the jury instructions and no error was found, the court concluded that the verdict, though technically erroneous under the instructions, reflected the jury's considered view and should be reinstated. The court therefore reversed the order setting aside the verdict and reinstated the jury's decision.

Holding and Implications

The court's final decision was to REVERSE the order appealed from, with costs, and to REINSTATE the jury's verdict for the defendant.

This decision means that the jury's verdict in favor of the defendant stands despite the trial court's earlier view that nominal damages should have been awarded to the plaintiff. The ruling confirms that absent court error or misdirection, a jury verdict for the defendant in a libel case will not be disturbed simply because the plaintiff was entitled to nominal damages under the instructions. No new precedent was established beyond reaffirming existing rules regarding the finality of jury verdicts in libel damage assessments.

WILLIAM LYNCH, Respondent, v. THE NEW YORK TIMES COMPANY, Appellant.

SCOTT, J.:

The action is for libel based on the publication by defendant of the proceedings in a criminal court in which the person arraigned, a relative of the plaintiff, had assumed plaintiff's name. In connection with this report defendant had published certain statements concerning plaintiff which were false and were derogatory to him but would have been true if spoken of the person who was arraigned and who had assumed plaintiff's name. The plaintiff alleged no special damage, and it was quite apparent that the publication was without actual malice and the result of a mistake.

The trial justice charged the jury very fully on the question of damages and apparently to the entire satisfaction of plaintiff, who took no exception thereto. The jury were instructed that the article complained of was libelous per se and that the defendant was not entitled to the benefit of the plea of privilege which it had interposed. On the question of damages the jury were given the widest latitude, being instructed that they might award only nominal damages if they found that the article had been published without malice and that plaintiff had suffered no appreciable damage therefrom, or might award substantial damages if they found that the plaintiff had been damaged, and even exemplary damages if they found that the article had been inspired by malice. The jury rendered a verdict for the defendant and this the court set aside. There can be no doubt that the verdict was technically erroneous, for, under the law as expounded to the jury by the court, the plaintiff was entitled at the least to nominal damages. Having in mind the instructions of the court, it seems evident that this verdict must have been the result of a conviction in the minds of the jurymen that the plaintiff had in fact suffered no damage at all, but, being laymen, they failed to distinguish the nice, perhaps artificial, distinction between a verdict for the defendant and one for plaintiff with nominal damages. They doubtless considered, as most laymen would unless carefully instructed to the contrary, that if a plaintiff had suffered no damage he was entitled to no verdict.

In a libel case, more, perhaps, than in any other, the jury is generally considered to be the supreme arbiter on the question of damages. In actions for other torts there is generally to be found some standard by which the reasonableness of an award of damages may be tested, but it is seldom so in actions for libel and slander where the elements of wounded sensibilities and the loss of public esteem play a part. If the jury in the case at bar had given expression to the opinion that plaintiff had suffered no injury by rendering a technically correct verdict for nominal damages no fault could have been found with their verdict on the record before us. Assuming, as we are entitled to do, that another jury would take the same view of the plaintiff's damage that the first one took, the result of an affirmance of the order appealed from would be to set aside the verdict and order a new trial in order that the plaintiff might recover a verdict for nominal damages. It has now become the established rule that a verdict will not be set aside for this reason. ( Funk v. Evening Post Pub. Co., 76 Hun, 497; affd., 152 N.Y. 619; Throckmorton v. Evening Post Pub. Co., 35 App. Div. 396.)

In the case first cited Presiding Justice VAN BRUNT discussed numerous cases bearing upon the question both in England and in this State, and found the established rule to be that where there is shown no error on the part of the court, by which the jury were misled, and no property rights are involved, a verdict will never be set aside upon a motion for a new trial, simply because the verdict has been for the defendant, instead of for the plaintiff for nominal damages. That is precisely the case as we find it presented here. The charge to the jury, at least from the plaintiff's point of view, seems to have been considered entirely satisfactory and no fault is found with it by plaintiff upon this appeal. It cannot well be said, therefore, that the technically erroneous verdict was induced by any error or misdirection on the part of the court. In that regard the case is similar to the Throckmorton Case ( supra), wherein the rule above stated was reiterated and applied.

It follows that the order appealed from should be reversed, with costs, and the verdict reinstated.

CLARKE, P.J., and McLAUGHLIN, J., concurred; LAUGHLIN and PAGE, JJ., dissented.

PAGE, J. (dissenting):

The article was libelous per se. George M. Lynch, on being arrested, gave the name of his brother William and was tried and convicted. The article publishing an account of this proceeding contained statements identifying William Lynch as the former manager of the store of his mother, Theresa Lynch, and then falsely alleged that William had dissipated a fortune in riotous living and had disappeared. The court properly ruled that the article was not privileged.

The answer contained a third and partial defense in mitigation of damages that the article was published in good faith in reliance upon the truth of information received by reporters and agents, and that the publication was made without malice, express or implied.

The justice erroneously charged that this could be taken into consideration generally in the mitigation of damages, whereas he should have limited it to the question of punitive damages.

The belief in the truth cannot be taken to mitigate general damages. No exception was taken to this portion of the charge and I only mention it, as accounting in some degree for the verdict.

The defendant proved no defense, and the justice practically although not as clearly as he might, instructed the jury that they should bring in a verdict for the plaintiff for damages in such sum as they thought proper.

I do not think that this is a case for merely nominal damages, but that the publication concerning the plaintiff was made without any investigation or foundation in fact and called for substantial damages.

In my opinion the order should be affirmed.

LAUGHLIN, J., concurred.

Order reversed, with costs, and verdict reinstated. Order to be settled on notice.

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LYNCH v. NEW YORK TIMES CO
(Feb 18, 1916)