Opinion ID: 2103216
Heading Depth: 1
Heading Rank: 6

Heading: issues iii. & iv. defamation

Text: Blote's assertions of defamation by Federal are legally untenable. Federal's argument, in the unemployment compensation proceeding, that it terminated Blote for misconduct, was a privileged communication as defined by SDCL 20-11-5(2). That statute provides that malice is not inferred from publication of a communication made in any legislative or judicial proceeding, or in any other official proceeding authorized by law. In the context of judicial proceedings, we have held a communication to be privileged if it (1) was made in a judicial proceeding; (2) had some connection to the action; (3) was made to achieve the objects of the litigation; and (4) involved litigants or other participants authorized by law. Hughes v. O'Connor, 313 N.W.2d 463 (S.D.1981). Federal's claim of work-related misconduct fit these criteria, except that it was offered in an administrative hearing. Such hearings, however, are official proceedings covered by the statute. See Circus Circus Hotels, Inc. v. Witherspoon, 99 Nev. 56, 657 P.2d 101 (1983) (privilege extended to administrative hearings regarding unemployment compensation). Federal was a participant in the proceeding, and its claim was made pursuant to SDCL 61-6-14, which denies benefits in misconduct cases. Privilege attached. Similarly, Blote's defamation claim regarding kickback allegations is unsound. SDCL 20-11-5(3), which provides that a communication, without malice (and malice is not inferred from the communication or publication), to an interested person, by an interested person, is privileged. The communication in question here consisted of a discussion between Federal's directors and officers at a meeting within the four walls of the bank. There is no showing, by Blote, that malice was present. A specific showing of malice is required for purposes of raising a genuine issue of material fact. Uken v. Sloat, 296 N.W.2d 540, 543 (S.D.1980). Malice cannot be presumed. Id. We therefore also affirm the circuit court on the defamation issues. Decision of the circuit court is affirmed in all respects. WUEST, C.J., MORGAN and MILLER, JJ., concur. SABERS, J., dissents.