Millstone v. O’Hanlon Reports

Facts

James C. Millstone, an Assistant Managing Editor of the St. Louis Post-Dispatch with an unblemished reputation and FBI clearance, moved to St. Louis in August 1971 and applied for automobile insurance through agent Norman Kastner with Firemen’s Fund Insurance Company. O’Hanlon Reports prepared a consumer investigation report based on information gathered by agent Alexander Mayes, who spent less than thirty minutes interviewing neighbors at Millstone’s former Washington, D.C. residence. The report falsely stated that Millstone was disliked by neighbors, considered a “hippy type,” participated in demonstrations, housed demonstrators, was strongly suspected of drug use, had shoulder-length hair and a beard, and had been evicted from three previous residences. The insurance company initially cancelled Millstone’s policy based on this report. When Millstone sought disclosure, O’Hanlon delayed, mailed his file to New York, provided incomplete disclosures on multiple occasions, refused to allow him to examine his actual file, and withheld critical information about his wife until lawsuit discovery. The investigation violated O’Hanlon’s own manual requiring verification of adverse information from at least one additional source.