Neiman-Marcus v. Lait
13 F.R.D. 311 (S.D.N.Y. 1952) (1952)
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Rule of Law:
An individual member of a small group may bring a defamation action for a libelous statement made about that group, but an individual member of a large group may not, unless the statement or circumstances can be reasonably understood to refer to that specific individual.
Facts:
- Defendants Jack Lait and Lee Mortimer authored and published a book titled 'U.S.A. Confidential.'
- The book alleged that some models at the Neiman-Marcus company in Dallas were 'call girls' and that its saleswomen were 'good, too — pretty, and often much cheaper.'
- The book also claimed that 'most of the [male] sales staff are fairies.'
- At the time of publication, Neiman-Marcus employed nine models, 25 salesmen, and 382 saleswomen.
- The Neiman-Marcus company, all nine models, 15 of the 25 salesmen, and 30 of the 382 saleswomen filed a lawsuit for libel.
- The book was distributed simultaneously in every state in the country.
Procedural Posture:
- The Neiman-Marcus Company and three groups of its employees (models, salesmen, and saleswomen) sued the book's authors for libel in the U.S. District Court for the Southern District of New York.
- The court dismissed the original complaint as to the individual plaintiffs with leave to amend for failing to state their membership in the groups at the time of publication and the size of the groups.
- The plaintiffs filed an amended complaint curing these defects.
- The defendants then moved to dismiss the amended complaint as to the salesmen and saleswomen for failure to state a claim upon which relief can be granted.
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Issue:
Does a defamatory statement directed at a group of individuals give rise to a cause of action for an individual member of that group who is not specifically named?
Opinions:
Majority - Judge Irving R. Kaufman
Yes, for small groups, but no for large groups. A defamatory statement directed at a group gives rise to a cause of action for an individual member only if the group is small enough that the statement can be reasonably understood to refer to the member. The court found that the group of 25 salesmen was sufficiently small for an individual member to state a claim, reasoning that an imputation of gross immorality to 'some' or 'most' of a small group casts suspicion upon all members. Conversely, the court held that the group of 382 saleswomen was too large for an individual member to state a claim. For such a large group, a defamatory statement is considered an impersonal generalization, and no reasonable person would conclude it referred to any single individual without specific circumstances pointing to that person.
Analysis:
This case is a foundational opinion in the doctrine of group libel, establishing a pivotal distinction based on the size of the defamed group. The court's holding creates a framework where the viability of an individual's defamation claim hinges on whether a group is small enough for a defamatory statement to 'infect' all its members. This decision provides a practical, though not numerically precise, test that balances the protection of individual reputation against the chilling effect of litigation arising from broad, generalized statements about large classes of people. It remains a key precedent for determining whether a defamatory statement is sufficiently 'of and concerning' an unnamed plaintiff who is part of a group.
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