Jackson v. General Electric Co.

514 P.2d 1170 (1973)

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Jackson v. General Electric Co.

Alaska Supreme Court
514 P.2d 1170 (1973)

Facts

Jonas Jackson (plaintiff) was a member of the United States military. In 1962, Jackson purchased an appliance that was manufactured by the General Electric Company (GE) (defendant). Jackson financed the purchase with a loan from the General Electric Credit Corporation (GECC), which was a wholly owned subsidiary of GE. Two years later, GECC sent a defamatory collection letter to Jackson’s military superiors, leading Jackson to sue GE. At GE’s behest, the trial court denied Jackson’s motion to add GECC as a defendant. Jackson contended that GE was liable for GECC’s defamation because GECC was GE’s mere instrumentality. A jury awarded Jackson $5,000 in damages, but the trial court dismissed Jackson’s case after concluding that GE was not responsible for GECC’s actions. In reaching this conclusion, the trial court found that for the nine months preceding September 1970, (1) 5 percent of GECC’s receivables involved consumer financing (of which 3 percent involved home products like Jackson’s), (2) 7 percent of GECC’s consumer and retail receivables related to GE products, and (3) 2 percent of GECC’s commercial and industrial loans related to GE products. Additionally, the trial court found that (1) $80 million of GE’s receivables were covered by GE’s 1960 agreement with GECC to repurchase appliances and televisions that GECC repossessed and another $23 million in GECC receivables were subject to GECC’s recourse rights against GE; (2) GE and GECC filed consolidated tax returns; (3) GE provided advisory services to GECC; (4) in 1970, all of GECC’s officers and directors were GE officers or employees, except for GECC’s president, who received GE stock as part of his compensation; and (5) GECC was not undercapitalized, GECC’s creditors were not disadvantaged, and GECC was not insolvent. Jackson appealed.

Rule of Law

Issue

Holding and Reasoning (Fitzgerald, J.)

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