The Virginia Defamation Law Blog

August 6, 2012

Target of Online Griping Files Defamation Action

Fairfax-based Direct Connect, LLC, a credit card processing company, has sued Inkthis, LLC, and its owner, Debra Sachs, for alleged defamation and tortious interference with contract. Direct Connect is upset about certain statements posted on Inkthis’ Facebook wall, including one that referred to Direct Connect as “a bunch of thieves.” The defendants recently removed the case from Fairfax Circuit Court to federal court in Alexandria.

The Facebook posts describe the author’s frustration with certain business practices of Direct Connect, including what the author believed to be excessive charges debited from Inkthis’ bank accounts. Direct Connect says the statements are false, that the defendants knew the statements were false when they made them and, by publishing descriptions of the company that included words like “inept,” “horrible,” and “thieves,” the statements harmed Direct Connect’s reputation.

Statements that are relative in nature and depend largely upon the speaker’s viewpoint are generally considered expressions of opinion. Opinions cannot form the basis of a defamation action as they are protected by the First Amendment and generally cannot be interpreted as stating a provably false fact, a prerequisite for any defamation claim. Thus, referring to Direct Connect as “inept” and “horrible” will likely be deemed non-actionable opinion. Referring to the company as “a bunch of thieves” presents a closer question.

July 30, 2012

Absolute Judicial Privilege Extends to Demand Letters Sent in Good Faith

by Lee E. Berlik

Earlier I wrote about the case of Mansfield v. Bernabei, in which Fairfax Circuit Court Judge R. Terrence Ney sustained demurrers to a defamation claim based on statements made in a draft complaint forwarded to a small group of prospective defendants for settlement purposes. Judge Ney ruled that the statements were privileged from defamation liability because they were preliminary to a proposed judicial proceeding and sent in good faith. The Virginia Supreme Court has now affirmed that decision and set forth a new test for determining the applicability of the judicial privilege in Virginia.

Under the new test, communications made outside of court but preliminary to proposed judicial proceedings will be absolutely privileged from defamation liability where (1) the statement is made preliminary to a proposed judicial proceeding; (2) the statement is “material, relevant or pertinent” to the proceeding; (3) the proceeding is contemplated in good faith and is under serious consideration; and (4) the communication is disclosed only to persons having an interest in the proposed proceeding.

(Note: The court enumerated only three elements, combining (2) and (3) above. Because the test contains four distinct concepts, I find it easier to think of this as a four-part test. But that’s just me.)

July 22, 2012

No Defamation Claim for Medical Resident’s Poor Performance Evaluation

by Lee E. Berlik

Employment reviews often lead to libel allegations due to the fact they often contain harmful statements perceived by the employee to be false and defamatory. In most cases, however, even if the performance review contains a false statement, no defamation claim will lie because (1) statements of opinion are not actionable under Virginia law (or the United States Constitution); and (2) communications between people on a subject in which they both have an “interest or duty” are deemed privileged.

The Fourth Circuit Court of Appeals recently considered–and rejected–the defamation claims of Claudine Nigro, a former medical resident at the Shenandoah Valley Family Residency Program. After a semiannual performance review in 2009, Nigro was notified that she would not be renewed for another year of residency with the program. Nigro appealed this decision, but then resigned a few months later. She brought an action against the residency program’s director and the hospital itself, claiming that she was defamed during the appeals process by the director of the program, who discussed her perceived shortcomings with the faculty appeals committee, and by employees of the hospital, who reported Nigro for allegedly recording her conversations with physicians.

Nigro alleged the Program Director defamed her with statements he made in various meetings and notices, including “There has been no evidence of improvement or intention to improve in weak areas,” “There is no change in apathetic/disinterested approach or demonstrated interest in learning despite 3-4 months of discussion and coaching,” and “There is faculty consensus that [Nigro] may be suffering from depression or poor career choice.” The court found that all the alleged statements were either opinion, factually true, not defamatory, or were protected by the qualified privilege applicable to statements made to another with a corresponding interest or duty.

July 5, 2012

Court Excludes Unreliable Expert Testimony in Defamation Case

by Lee E. Berlik

A court’s role is to act as a “gatekeeper” where evidence is concerned, and under Federal Rule of Evidence 702, a court should exclude expert testimony that is not reliable and helpful to the jury. Rule 702 provides that an expert’s opinion is reliable if (1) it is based upon sufficient facts; (2) it is the product of reliable principles and methods; and (3) the witness has applied the principles and methods reliably to the facts of the case. The United States District Court for the District of Columbia recently applied this three prong test and granted a defendant’s motion to exclude expert testimony in a defamation case.

In Parsi v. Daioleslam, Dr. Trita Parsi, president of the National Iranian American Council (NIAC) and NIAC filed a defamation action against Seid Hassan Daioleslam alleging that Daioleslam published numerous false and defamatory statements on internet websites characterizing plaintiffs as members of a subversive and illegal Iranian lobby. Plaintiffs alleged that defendant’s statements injured their reputations, hampered NIAC’s effectiveness as an advocacy group, and damaged their fundraising efforts. In support of their claims, plaintiffs proffered two experts. Plaintiffs hoped that the testimony of Debashis Aikat, a journalism professor, would establish that defendant’s writings did not meet the standard of care for journalists. Plaintiffs submitted the testimony of Joel Morse, a financial economist, to establish plaintiff’s economic damages suffered as a result of the alleged defamation. Defendant moved to exclude both men’s testimony, arguing that neither expert’s testimony met the standards of admissibility.

The court found all three reliability prongs of Rule 702 lacking in Aikat’s testimony. First, the “sufficient facts” Aikat relied on were defendant’s articles and sources cited therein. Because Aikat read only a haphazard selection of defendant’s sources and no background material, the court found the “facts and data” Aikat relied on to be insufficient. Second, the court found Aikat’s testimony was not the product of reliable principles and methods. Aikat refused to give any description of his methodology beyond reading and viewing. The court noted that Aikat’s methodology could have been to compare defendant’s performance to applicable professional standards, which would have been an acceptable methodology.

June 29, 2012

Breach of Non-Disparagement Agreement Leads to Defamation Claim

by Lee E. Berlik

The United States District Court for the Western District of Virginia has found that negative comments a customer service representative made to a customer may form the basis of a defamation action.

Charles and Donna Bates operate a school photography business. They entered a contract with Strawbridge Studios, Inc., also a school photography business, under which Strawbridge purchased the Bates’ accounts and employed them to handle certain accounts. The relationship deteriorated and ended in the Bates filing a breach of contract action again Strawbridge. The parties resolved their dispute and entered a settlement agreement which included a non-disparagement clause providing that neither party would “say, write, publish, broadcast, or in any other way participate in negative or disparaging comments about the other.”

Later, when a customer called Strawbridge looking for a photograph she believed the Bates had taken, Strawbridge’s customer service representative told the customer that the Bates were “not reputable” and “could not be trusted.” The representative also stated that “things got so bad” that Strawbridge “had to get involved in a lawsuit.” The Bates filed a second suit against Strawbridge and included a claim for defamation.

June 17, 2012

Lawyer Files Defamation Action Against Television Stations for Faulty Report

by Lee E. Berlik

Indiana lawyer Mark K. Phillips has filed a libel and slander action against two media outlets, Nexstar Broadcasting Group and Mission Broadcasting, for mistakenly identifying him as a child molester. In 2011, Mark S. Birge, Phillips’ client, pleaded guilty to child molestation in an Indiana court. When the local news companies reported this story during the next two days, they mistakenly announced instead that Birge’s attorney, Mark Phillips, had been convicted of child molestation and would be sentenced to up to 16 years in prison. The media companies published a correction to the story over a month later, but Phillips filed suit anyway for slander per se, libel per se, and defamation. He seeks more than $1 million in compensatory and punitive damages.

Likely issues will include whether the lawyer is a “public figure” required to prove malice, the extent to which the media outlets are at fault for the mistaken report, and the legal effect of the subsequent correction.

Phillips asserts that the defendants are liable for defamation because they falsely identified him as the child molester knowing the statements to be false. As a result, he claims he “has suffered ridicule, damage to his professional and personal reputation within the community and the tri-state area, emotional and physical pain, disgrace, and stress within his marriage and with his family, embarrassment, and loss of opportunity to achieve his potential as a professional.” Phillips suggests that the severity of the impact of these stories on him is a result of the fact that he is an active member of the community. He has coached a Special Olympics basketball team for over 18 years, is a member of multiple legal professional groups and country clubs, and maintains an active legal practice in multiple states.

June 11, 2012

Virginia Law Firm’s Defamation Claim Dismissed As Opinion

by Lee E. Berlik

When several law firm clients were vocally unhappy about the firm’s work product and billing practices, and expressed their views to a Virginia legal newspaper, the firm slapped them with a defamation suit in Richmond federal court. However, finding the allegedly defamatory statements to be subjective statements of opinion, the court dismissed the claim.

The Virginia law firm of Cook, Heyward, Lee, Hopper & Feehan, P.C. (“Cook Heyward”) entered into a contract for legal services with Trump Virginia Acquisitions LLC, Trump Vineyard Estates, LLC, and The Trump Organization, Inc. Cook Heyward provided the Trump Entities with invoices itemizing fees and costs over the course of the representation. The Trump Entities requested Cook Heyward to reformat the invoice but did not object to the amount billed, and they continued to request legal services from Cook Heyward.

After a second updated invoice, the Trump Entities indicated that they had no problem with the quality of the legal work, but thought the bills were “too high” and suggested Cook Heyward reduce its fees by approximately seventy percent. Cook Heyward informed the Trump Entities that they intended to file a motion to withdraw as counsel. The Trump Entities asked Cook Heyward to reconsider, then informed them that they “should expect very bad publicity” regarding their withdrawal as counsel. After repeated requests for payment, Cook Heyward filed a motion to withdraw which the court granted.

June 4, 2012

Libel Case Filed by Laurie Fine Against ESPN

by Lee E. Berlik

Laurie Fine, the wife of Bernie Fine, former Associate Coach of the Syracuse University men’s basketball team, has filed a libel and defamation action against ESPN and two of its employees, Mark Schwarz and Arthur Berko. ESPN published several stories about her relating to her husband’s alleged molestation of minors. She seeks compensatory and punitive damages.

In the 1980s, the Fines took in a Syracuse basketball ‘ball boy,’ Robert Davis, who later accused Bernie Fine of molesting him while he lived there. Davis also accused Laurie Fine of knowing about the molestation and allowing it to continue. He also claims to have had a sexual relationship with Laurie while he was in high school.

The complaint paints a picture of a troubled young man who financially took advantage of the Fines, often fabricating stories to trick them into giving him money. It asserts that, to elicit sympathy and funding, Davis told Laurie that Bernie had molested him in the 1980s but that the couple continued to enable him. The complaint portrays the plaintiff as suffering through conversations with Davis in hopes he would outgrow his problems, using sarcasm to keep from ‘going off’ on him and asking questions to ‘test’ how far the young man would go. These allegations appear to offer a different interpretation of statements attributed to her in a 2002 taped recording Davis made.

May 28, 2012

First Amendment Right to Anonymous Internet Speech Challenged by Florida Doctor

by Lee E. Berlik

The First Amendment protects the right to speak anonymously on the Internet, but that right is not absolute. Defamatory statements, in particular, are not protected. Freedom of speech does not include the right to commit libel or other torts anonymously. As demonstrated by a new case filed in Henrico County Circuit Court, however, not everyone agrees on the extent to which an online review can go before a poster’s identity must be revealed.

Armando Soto is a plastic surgeon in Orlando, Florida. A former patient, unhappy with the results of a breast augmentation procedure, posted negative comments about Dr. Soto on www.RateMDs.com. The comments included statements that scars were “horrific,” “frightening and unnecessary,” that breasts were “uneven,” that Dr. Soto charged for procedures that he did not perform, and that he is not skilled or caring.

The online comments were posted anonymously, so Dr. Soto filed a “John Doe” action and subpoenaed Internet provider Comcast for records revealing his critic’s identity. The anonymous reviewer hired a lawyer and moved to quash the subpoena to protect his identity. (Apparently the allegations are that “John” received breast augmentation surgery, which is why I’m referring to “his” identity).

May 17, 2012

Defamation Claims Asserted by Church Against Former Members

by Lee E. Berlik

Julie Anne Smith and her family attended Beaverton Grace Bible Church for over two years. When the church dismissed one of its employees for “subversive conduct,” the Smith family sought meetings with the Pastor and Elders to discuss the situation because they felt the termination was handled poorly. During the meetings, the Smiths and church officials discussed church policies and governance. Later, an elder informed Mrs. Smith that she must “recant” or her entire family would no longer be welcome at the church. The Smiths stopped attending the church.

Mrs. Smith later learned that Oregon authorities were investigating allegations of child molestation by a teenage member of the church whom she had seen in the child care area. The Pastor and Elders came unannounced to the Smith home demanding to know whether the Smiths knew who had reported the abuse. The Pastor informed the Smiths that they were “excommunicated.”

Mrs. Smith began posting comments about the church under Google’s “reviews” of the church. Congregants, former congregants, and the Pastor also posted comments, and the dialogue about church governance and doctrine continued. The Pastor removed many postings, so Mrs. Smith began her own blog, Beaverton Grace Bible Church Survivors, where she continued making and encouraging comments.