Articles Posted in Fault

Public officials have an uphill battle when seeking to sue media outlets for defamation. The public has a legitimate interest in the workings of government and reporters have the right and privilege to communicate information about the actions of public officials so that the government can be held accountable. Consequently, the law has evolved to make it difficult for public officials to sue media organizations for libel, even if a news story about them contains inaccuracies. Specifically, public officials can’t prevail in a defamation action based on their official conduct unless they can prove, with clear and convincing evidence, that the false story was published about them with actual malice, generally defined as knowledge of falsity (or, at a minimum, reckless disregard of the truth). Private individuals, by contrast, generally are not required to meet this standard. The high bar for public figures is designed to strike a balance between the private right against unfair attacks on one’s reputation and the First Amendment right of writers and publishers to share information on matters of public interest and concern. A recent decision of the Eastern District of Virginia shows how difficult it can be for public officials to meet their burden of proof.

The case of Joseph E. Preston v. City Council of the City of Petersburg involved a dispute between the City of Petersburg and its former City Attorney, Joseph Preston. The basic facts, according to the summary-judgment opinion, are as follows. Preston was the City Attorney from October 2016 to September 2018. On September 4, 2018, while Preston was on vacation, the City Council held a special meeting in his absence and passed two motions. One motion terminated Preston’s employment, effective immediately. The second motion stated that Preston would be allowed back into City Hall to retrieve his personal belongings “only by appointment and only if accompanied by a police officer.” The reasons for the firing and the restrictions on Preston’s ability to enter City Hall are not clear.

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Whether a particular tort is deemed intentional, as opposed to merely negligent, can have far-reaching implications. Intentional torts and negligent torts are treated very differently when it comes to things like insurance coverage, sovereign immunity, and recoverable damages. Defamation is one of those torts that cannot be easily categorized, as the degree of intent required to hold someone liable for defamation differs depending on the circumstances. If the plaintiff is a public figure, he will have to prove the defendant intentionally made a false statement, or at least made the statement with a high degree of awareness of its probably falsity. Private-figure plaintiffs, on the other hand, need only demonstrate a level of culpability akin to negligence, a standard that does not require a showing of intent. States differ in their treatment of defamation-by-implication cases, but in Virginia, the speaker must have intended to make a defamatory implication to be held liable.

Some would argue that defamation by implication should only be deemed an intentional tort in those cases where malice is required. Most court opinions involving claims of implied defamation focus solely on whether the statement implies a defamatory meaning to the reasonable listener or reader, without regard to the defendant’s subjective intent in making the statement. According to Section 563 of the Restatement (Second) of Torts, “the meaning of a communication is that which the recipient correctly, or mistakenly but reasonably, understands that it was intended to express.” If the requisite level of intent for defamation liability is mere negligence (the usual standard in cases not involving public figures or officials), it might make sense to hold the speaker liable for a reasonable defamatory inference even if that inference was not the intended meaning. Since the Virginia Supreme Court decided Pendleton v. Newsome, however, it has been clear that plaintiffs seeking to hold defendants liable based on a defamatory implication must demonstrate not only a defamatory inference but that the defendant intended to communicate that inference.

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Appearances can be deceiving. But in terms of analyzing whether a particular government employee should be treated as a “public official” for purposes of asserting a defamation claim, appearances may make all the difference in whether a plaintiff will be required to show malice or merely negligence. Horne v. WTVR was a case based on a claim of implied defamation that I wrote about back in 2017. As noted in my earlier blog post, the case ended with a directed verdict in favor of WTVR, because the trial court deemed Ms. Horne a public official and found insufficient evidence of malice to justify allowing a jury to consider the claim. Ms. Horne appealed that ruling, and on June 18, 2018, the Fourth Circuit Court of Appeals affirmed. In doing so, it elaborated on what it means to be a “public official” in Virginia.

If the plaintiff in a defamation case is a public official, he cannot “recover[] damages for a defamatory falsehood relating to his official conduct unless he proves that the statement was made with ‘actual malice’―that is, with knowledge that it was false or with reckless disregard of whether it was false or not.” (New York Times Co. v. Sullivan, 376 U.S. 254, 279–80 (1964)). This is significant, because private plaintiffs are only required to establish negligence to succeed on a defamation claim–a much lower threshold.

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Since the Supreme Court decided the seminal Curtis Publishing case back in 1967, public figures have played an important role in U.S. defamation jurisprudence. That case held that it should be more difficult for public figures to sue for libel and slander than ordinary private citizens, because if public figures have voluntarily thrust themselves “into the vortex” of a public debate, they should assume that they may become the subject of public discussion and should be willing to accept the risk that on occasion, less-careful fact-checkers may say certain things about them that aren’t true. Therefore, although private citizens will only need to demonstrate negligence to recover damages caused by defamation, public figures need to prove the defendant either knew he or she was spreading false information, or acted with reckless disregard for whether the information was true or false. This heightened level of wrongful intent is known as malice.

Some erroneously equate public figures with celebrities. In reality, the level of fame a plaintiff needs to achieve before being categorized as a “public figure” by a Virginia court is much lower than that of household-name celebrities. Moreover, courts recognize “limited purpose” public figures and subject them to the same obstacles regular all-purpose public figures face when the alleged defamation is based on the subject matter of their public participation and involvement.

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When local politicians sue media defendants over false and defamatory stories related to their official conduct, they need to show that the article in question was published with actual malice. That means that it’s not enough to show negligent reporting or that some of the facts in the article are untrue; a successful public official bringing a defamation claim against a newspaper must show that the paper either knew the facts were wrong or that they were most likely wrong, and proceeded to publish them anyway.

In Hanover County, Virginia, Supervisor Sean M. Davis is taking a crack at the publisher of Style Weekly and its reporter, Peter Galuszka, over an article written last December that questioned whether Mr. Davis was exerting improper influence on a local high school’s curriculum. After noting that several books and movies had been banned from Hanover High School, the article described “some students, former teachers and parents” as saying that Supervisor Davis had “personally intervened to have teachers suspended or face other disciplinary actions if they present ideas or images that Davis considers too liberal.” In truth, claims his lawsuit, Davis “had absolutely nothing to do with the suspension or firing of any teacher or the banning of any book.” His challenge is going to be in proving that the reporter republished the accusations against him with knowledge that they were untrue, or at least with a high degree of awareness that the accusations were probably untrue.

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In Virginia, when a defamation action is brought by a private individual (as opposed to a public figure), the plaintiff will usually only need to establish negligence to meet the “intent” element required to prevail in such actions. Public figures, on the other hand, need to prove the defendant acted with New York Times malice. A little-known exception to the rule for private individuals, however, is that if the statement at issue does not make “substantial danger to reputation” apparent to the reasonable publisher, then even private plaintiffs would need to prove malice to recover for defamation. As explained by the Virginia Supreme Court in Gazette, Inc. v. Harris, 229 Va. 1, 22-23 (1985), a threshold question of law for the trial judge is to determine “whether a reasonable and prudent editor should have anticipated that the words used contained an imputation necessarily harmful to reputation.”

Do not confuse “substantial danger to reputation” with defamatory meaning. Regardless of the state of mind of the defendant, a statement won’t be actionable if it doesn’t carry the requisite defamatory sting. Every defamatory statement must contain the sort of false characterizations that would tend to harm one’s reputation. What plaintiffs need to prove in every defamation action is not just that a statement has the potential to cause substantial danger to reputation but that it actually is the sort of statement that would tend to harm reputation. What we’re talking about now–the “Gazette test”–deals with the foreseeability and obviousness of the harmful nature of the statement. In other words, while a successful plaintiff will always need to demonstrate defamatory meaning, if that defamatory meaning would not be readily apparent to a reasonable person in the position of the defendant at the time the statement was made, the plaintiff will need to prove malice, even if he or she is a private individual.

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In every defamation case, it’s necessary to determine whether the plaintiff should be treated as a public figure, a public official, or a regular Average Joe. This is because “public” plaintiffs face a much higher burden of proof than “private” plaintiffs. A private plaintiff normally only needs to prove that a defamatory statement was made with negligence in regard to whether the statement was true or false, whereas a public plaintiff generally needs to show that the defendant acted with malice, which is much more difficult to prove than negligence. There are many justifications for the discrepancy, but the most frequently cited are that (a) public plaintiffs voluntarily assumed the spotlight, and they should know that having people talk loosely about them comes with the territory, and (b) by virtue of their notoriety, public plaintiffs have more opportunities to rebut defamatory statements. Courts sometimes use the terms “public figure” and “public official” interchangeably, but they are conceptually different, and different considerations determine whether a plaintiff should be treated as one or the other.

The main distinguishing feature is that public officials are not necessarily attention-seeking, and as a result, they are not always treated as “public” plaintiffs who would need to show malice in order to prevail in a defamation action.
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Suppose you’ve spoken your mind about someone you don’t like and have been accused of defamation. Should you apologize? If you intentionally defamed the character of another person out of ill will or spite, you’re probably not going to want to apologize. But if you’ve either had a change of heart or a sudden realization that you’re about to get sued, there are some good reasons to say you’re sorry.

For one thing, apologizing–if done right–can mitigate the plaintiff’s damages. Plaintiffs who sue for libel or slander in Virginia aren’t just limited to recovery of out-of-pocket pecuniary losses; they can also recover damages for pure emotional distress. Even without proof of actual reputational harm, Virginia courts have allowed plaintiffs to recover compensation for mental anguish, embarrassment, and humiliation. In essence, the worse the plaintiff feels, the higher the potential for a large damages award. In the business world, studies of disgruntled customers have shown that they are more than twice as likely to forgive a company that performs poorly but then apologizes than one that offers payment in lieu of an apology. It stands to reason, then, that a plaintiff’s emotional distress will likely be diminished if you make a sincere, timely apology, and publish that apology to the same group to whom you made the defamatory remarks.
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Where an otherwise defamatory statement is subject to a qualified privilege, a plaintiff can overcome that privilege by showing that the defendant acted with actual malice. However, “actual malice” in the context of a defamation action–also known as “New York Times malice,” is a different concept than the common-law malice ordinarily required to support an award of punitive damages. Actual malice does not require evil intent, spite, or ill will. A speaker acts with actual malice when he knows that his statement is false or acts with reckless disregard as to its truth. Mere dislike of the plaintiff is not sufficient to indicate a speaker acted with actual malice.

The standard for whether a defendant has uttered a defamatory statement with actual malice is a subjective one. In a lawsuit against a newspaper, for example, the plaintiff would not necessarily prevail merely by showing that the publisher failed to conduct a sufficient factual investigation or that a “reasonably prudent” publisher would not have published the story. Reckless disregard for the truth requires more than just a departure from professional journalistic standards. (See Harte-Hanks Commc’ns, Inc. v. Connaughton, 491 U.S. 657, 666 (1989)). Rather, the court must get into the mind of the publisher and determine its state of mind at the time of publication. Reckless disregard for truth requires a high degree of awareness of probable falsity, such as when a publisher entertains “serious doubts as to the truth of his publication” but publishes the story anyway. (See St. Amant v. Thompson, 390 U.S. 727, 731 (1968)).

The distinction between actual malice and common-law malice was explained last month in the Texas case of Tyson v. Austin Eating Disorders Partners, LLC. Edward Tyson worked for Austin Eating Disorders Partners (AED) as medical director of AED’s Austin eating disorder treatment center. After Tyson was removed from his position, he asked his accountant to inquire about AED’s improved financials. Mark McCallum, CFO of AED, responded to the inquiry with an email to Tyson, AED’s Board of Directors, AED’s attorney, and AED’s accountant stating that AED’s financials had improved because Tyson had been a bad medical director who had no idea how to run the treatment center and took kickbacks for referring patients to other facilities. In a Second Amended Complaint asserting various defamation theories, Tyson conceded that McCallum’s email was subject to a qualified privilege, but argued that he overcame the privilege by alleging that McCallum acted with actual malice. AED and McCallum moved to dismiss the claim.

A former bank teller’s defamation and wrongful termination action against Wells Fargo, filed in the Western District of Virginia, has been decided in Wells Fargo’s favor. Judge Samuel G. Wilson granted the bank’s motion for summary judgment due to the failure of the teller to make a coherent, factual showing that the bank was at fault, or that the alleged defamatory statements were false.

The teller, Adrienne Sewell, was terminated for violating the bank’s policies and procedures. Wells Fargo rules limited the amount of cash tellers could retain in their cash drawers. To stay below the maximum, sellers would “sell” cash to a second teller, record the transaction electronically then deliver the cash in person. On several occasions, teller Adrienne Sewell and others failed to physically move the cash, thereby misstating their balance sheets and having too much cash in their bank drawers. At the end of the day, they would “buy back” the cash, thereby righting the balances, but the practice violated bank rules. The bank investigated her activities, gathered documents, and obtained admissions from Sewell and others that they had violated bank policy and procedure.

Sewell sued Wells Fargo for defamation, breach of contract, and wrongful termination. She argued the bank defamed her by telling others she had falsified documents and had violated bank procedures.

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