"Spite Money"

When a federal jury in Manhattan awarded $175,001 to Reporter Quentin Reynolds in his libel suit against Westbrook Pegler, it intended to punish Columnist Pegler and his publishing sponsors within the court's jurisdiction. It had deliberated more than twelve hours over the charge of Judge Edward Weinfeld pointing out the difference between punitive damages and "compensatory" damages, i.e., those to make up for any loss in Reynolds' earning power. Said the court: "Where it is established that a defendant was inspired by actual malice . . . the jury may award . . . punitive damages ... or 'spite money' ... Its purpose is punishment, and [the setting of] an example to deter repetition of the offense . . ." In the award, only $1 was compensating damages. All the rest was punitive damages--$100,000 against Pegler himself, $50,000 against the Hearst Corp., whose King Features syndicates Pegler, and $25,000 against Pegler's New York outlet, the Journal-American.* But, Pegler's pocket will not be punished. The Hearst corporations will have to pay the entire bill, since Pegler is protected in his contract against libel damages.

At week's end Defense Counsel Charles Henry argued that the verdict should be set aside because the award was excessive in view of the token compensatory damages. One of the troubles, he implied, was that Pegler's rambunctious courtroom manner had a poor effect on the jury. Replied Reynolds' attorney, Louis Nizer: "In a day when [reckless] extremities of certain writers have caused a serious problem, [we require] just such a lesson."

If Judge Weinfeld, who will rule in a fortnight, lets the verdict stand, Pegler will probably take the case to a higher court.

*Among other dailies that publish Pegler's column: Miami Herald, Cincinnati Enquirer, Nashville Tennessean, Washington News.

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