Opinion ID: 2316708
Heading Depth: 1
Heading Rank: 6

Heading: corporate authorization or ratification

Text: Sigal next contends that, under Virginia law, it cannot be held liable for Littman's statements to Janes unless Sigal either authorized or later ratified those statements. See Oberbroeckling v. Lyle, 234 Va. 373, 378, 362 S.E.2d 682, 687 (1987) (dictum). Sigal says the trial court accordingly erred in failing to give a jury instruction, commonly called a corporate malice instruction, to that effect. Sigal adds that the evidence does not support a finding of corporate authorization or ratification. On appeal, the parties dispute whether Virginia law requires corporate authorization or ratification for compensatory, as well as punitive damages  as dicta in Oberbroeckling suggests [25]  or, instead, corporate authorization or ratification is required only for a claim for punitive damages (which is not presented in this case). [26] Given the context of the suspect language, we conclude that the Oberbroeckling dicta should not be read to overturn years of precedent, and good policy, limiting the corporate authorization or ratification requirement to claims for punitive damages. See W.T. Grant Co. v. Owens, 149 Va. 906, 908, 141 S.E. 860, 862 (1928) (quoted with approval in Oberbroeckling, 234 Va. at 378, 362 S.E.2d at 687); Hines v. Gravins, 136 Va. 313, 318, 112 S.E. 869, 874 (1922), cert. denied, 265 U.S. 583, 44 S.Ct. 458, 68 L.Ed. 1191 (1924). [27] Even other cases on which Sigal relies support the view that corporate ratification or authorization is necessary only to support claims for punitive damages. See Woodard v. City Stores Co., 334 A.2d 189, 191 (D.C.1975); May Dep't Stores Co., Inc., 314 A.2d at 770; Safeway Stores v. Gibson, 118 A.2d 386, 388 (D.C.1955). In sum, the Oberbroeckling dicta is not adequate support for appellant's position.