## Facts

- Retail Credit Company prepared and distributed investigative/credit reports about Raymond F. Russell to its subscribers.
- A report stated that Russell had been “dismissed for dishonesty,” was ineligible for rehire, and had “admitted to taking money over a period of time” from a former employer.
- In 1969, Russell learned the false information was being circulated and obtained a letter from the former employer’s owner refuting the accusations and endorsing Russell.
- Russell provided the refutation letter to Retail Credit, requested correction of its records, and asked that retractions be sent to recipients of the false report.
- Retail Credit repeatedly promised reinvestigation and corrective action but did not provide Russell the identities of report recipients and did not timely correct the misinformation.
- In October 1970, Russell saw a new Retail Credit report at a realty office that repeated the same accusations.
- After counsel became involved, Retail Credit denied circulating any libelous report and refused to retract.
- Russell sued for libel; a jury awarded $15,000, and the trial court also enjoined Retail Credit from further publishing the specific defamatory statements.

## Issues

1. Whether a credit/investigative reporting agency has a conditional privilege under Georgia law (including in light of the Fair Credit Reporting Act) insulating it from defamation liability absent proof of “actual malice.”
2. Whether a post-judgment injunction prohibiting further publication of specific statements found false and defamatory is an unconstitutional prior restraint under the First Amendment and the Georgia Constitution.

## Decision

- The Supreme Court of Georgia affirmed the jury’s damages verdict for Russell.
- The court held Retail Credit was not entitled to a conditional privilege on these facts for the defamatory statements in its reports.
- The court upheld the injunction as a narrow remedy barring only repetition of statements adjudicated false and libelous, not a general restraint on speech.

## Legal Principles

- Under Georgia law, a credit reporting agency is not automatically protected by a conditional privilege merely because it furnishes reports to subscribers.
- Continued publication of defamatory statements after notice of falsity and requests for correction supports liability and defeats a claim of good-faith privilege.
- A narrowly drawn injunction entered after trial and judgment may prohibit repetition of specific statements judicially determined to be false and defamatory without constituting an impermissible prior restraint.
- Constitutional free-speech protections do not bar courts from imposing responsibility and tailored equitable relief after adjudicated defamation.

## Conclusion

The court affirmed libel damages against a credit reporting agency that continued disseminating false accusations after notice and upheld a limited, post-judgment injunction forbidding further publication of the specific defamatory statements found false at trial.


Retail Credit Co. v. Russell, 234 Ga. 765, 218 S.E.2d 54 (Ga. 1975)