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In an action of damages for slander the pursuer averred that he had suffered injury to his business by reason of slanderous statements alleged to have been made by the defender regarding the pursuer's business character and his mode of conducting business. The pursuer's business was sold to a limited liability company between the date of the alleged slander and the date of the raising of the action.
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Held that the defender (1) was entitled to recover by diligence the business books of the pursuer so far as showing “the profits of the pursuer's business,” but (2) was not entitled to recover ( a) the pursuer's “private books,” or ( b) his income-tax returns, or ( c) the business books of the company to which the pursuer had sold his business.
Charles Gray, grain merchant, Maxwell town, Dumfries, brought an action against James Wyllie, grain merchant, Loreburn Park, Dumfries, for £3000 sterling as damages for alleged slander.
The pursuer and defender were rivals in business and competed with others in buying and selling grain in Dumfries and neighbourhood, and elsewhere.
The pursuer averred—“(Cond. 2) The defender has for some time been in the habit of making and circulating certain false, malicious, and slanderous statements regarding the pursuer, which were intended to injure him, and did injure him, in his character, reputation, and business. (Cond. 3) The pursuer believes and avers that the defender has systematically slandered him to a large number of persons, his trade customers and others, with a view to destroying his business and acquiring it for himself.”
The pursuer further set forth the slanderous statements made by the defender to several persons named, and, inter alios, to Walter Edgar, and averred—“(Cond. 4) The said Walter Edgar was influenced by the defender's statements, believing them to be true, and would not thereafter trust pursuer in business. (Cond. 7) The pursuer believes and avers that the aforesaid statements upon which he has condescended are only instances in the scheme of malicious slander which the defender conceived and carried out for the purpose of destroying the pursuer's character and business… . The said statements … have greatly injured the pursuer in his feelings, reputation, character, and business credit.”
The statements complained of were innuendoed as meaning that the pursuer did not pay his debts and was dishonest in business and that it was unsafe to have business dealings with him.
Until the month of April 1903 the pursuer carried on business under his own name, and on or about the 13th of said month he transferred his business to the South of Scotland Milling Company, Limited, Dumfries, and became their principal shareholder and managing director.
After issues had been approved for the trial of the cause, and after notice of trial at the sittings had been given—the effect of which was to remove the process to the Inner House—the defender before the trial moved for a diligence to recover, inter alia “(1) The whole business books of the pursuer, including bank books and letter books for the period from January 1, 1900, down to the date of the raising of the present action, that excerpts may be taken therefrom at the sight of the commissioner of all entries therein showing or tending to show ( a) the profits of the pursuer's business during the said period, and ( b) the nature and extent of the pursuer's business transactions and his business standing with ‘certain persons named,’ all customers of the pursuer mentioned on record, or any of said parties. (2) The private books of the pursuer, including letter books, order books, diaries, and note books, during said period, that excerpts may he taken therefrom at the sight of the commissioner of all entries therein relating to the matters mentioned in article 1 hereof. (3) The whole business books, including letter books, of the South of Scotland Milling Company, Limited, Dumfries, for the period from April 1, 1903, down to the present date, that excerpts may be taken therefrom at the sight of the commissioner of all entries therein showing or tending to show ( a) the profits of the business of said company during said period, and ( b) the nature and extent of said company's transactions with the parties mentioned in article 1 hereof, or any of them… . (5) The income-tax returns made and receipts for income-tax paid by the pursuer for the years 1900–1, 1900–2, 1902–3, and by said company for the years 1902–3, 1903–4.”
The following cases were cited:— Johnston v. Caledonian Railway Company, December 22, 1892, 20 R. 222, 30 S.L.R. 222; Christie v. Craik, July 20, 1900, 2 F. 1287, 37 S.L.R. 503; Macdonald v. Hedder-wick & Sons, May 16, 1901, 3 F. 674, 38 S.L.R. 455.
As to article 2, I do not quite know what is meant by “private books.” If they are books relating to the pursuer's business, then they will fall under article 1. If not, then I think the defender should not have them. Therefore article 2 will go out.
With regard to article 3, I do not see how the defender can be entitled to follow
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I am disposed to think that in this case the defender is not entitled to the income-tax returns. These returns are just returns of income generally, and not specially of profits arising from business.
The
Counsel for Pursuer— Shaw, K.C.— Dewar. Agent— Alexander Ramsay, S.S.C.
Counsel for Defender— Jameson, K.C.— C. D. Murray. Agents— Bonar, Hunter, & Johnstone, W.S.