Opinion ID: 485223
Heading Depth: 2
Heading Rank: 2

Heading: Appellants' Defamation Claim

Text: 24 As noted earlier, appellants charge appellee with defaming appellant CCNV in the Report and in statements made by officials of HUD after the Report's issuance. Specifically, appellants allege that CCNV was in large part responsible for the realistic figure of two million homeless Americans; that the Report states that this figure has no basis and that no definitive national study has been done; and that appellee subsequently referred to the figure as a complete fabrication. Appellants further allege that [t]hese statements are wrong and baseless and a deliberate attempt to damage CCNV's reputation and [efforts], and that the statements have so damaged CCNV. In dismissing the entire complaint for lack of standing, the district court did not address the sufficiency of these allegations. To the extent the court implicitly concluded that appellants lack standing to pursue their tort claim, the court was incorrect. These allegations clearly confer standing upon CCNV. 25 Reviewing appellants' defamation on the merits, we nevertheless find that the district court correctly dismissed that portion of the claim dealing with libel. CCNV's defamation claim consists of two separate claims: one for libel and one for slander. In order to make out a cause of action for libel or slander, a plaintiff must demonstrate that defendant's remarks are defamatory. Under District of Columbia law a publication is considered defamatory 'if it tends to injure plaintiff in his trade, profession or community standing, or lower him in the estimation of the community.'  Olinger v. American Savings & Loan Association, 409 F.2d 142, 144 (D.C.Cir.1969) (quoting Afro-American Publishing Co. v. Jaffe, 366 F.2d 649, 654 (D.C.Cir.1966) (en banc)); see Smith v. District of Columbia, 399 A.2d 213, 220 (D.C.App.1979) (using identical language to describe when an oral communication is defamatory and citing Olinger, supra ). In addition, the statement must be more than merely unpleasant or offensive but [must] make the plaintiff appear 'odious, infamous, or ridiculous.'  McBride v. Merrell Dow and Pharmaceuticals Inc., 717 F.2d 1460, 1463 (D.C.Cir.1983) (quoting Johnson v. Johnson Publishing Co., 271 A.2d 696, 697 (D.C.App.1970)). In a defamation case, it is the role of the court to determine whether the challenged statement is capable of bearing a particular meaning and whether that meaning is defamatory. Restatement (Second) of Torts Sec. 614(i) at 311 (1977); see McBride, 717 F.2d at 1463. 26 In the libel portion of their complaint, appellants allege generally that the Report's comments regarding CCNV are defamatory. Essentially, appellants allege that the Report suggests that the two million figure is baseless and therefore implies that CCNV's estimate is fraudulent and imputes dishonesty to CCNV. Courts generally accept that an imputation of dishonesty or fraud is defamatory. See, e.g., Hoffman v. Washington Post Co., 433 F.Supp. 600 (D.D.C.1977), aff'd, 578 F.2d 442 (D.C.Cir.1978). Thus, we must determine if the Report can possibly be construed as CCNV alleges. 27 The Report itself belies appellants' construction. The Report begins the discussion of the extent of homelessness in America by stating that [n]o one has done a thorough census of the homeless population in the United States. Report at 8. It goes on to report that some observers have claimed that the national total is as high as two or three million persons. Report at 8. It explains that this estimate originated in testimony by CCNV before the House Committee, although it notes that CCNV never actually reported a precise figure to Congress. Report at 9. The Report then quotes from the CCNV members' book in which the authors explain how CCNV arrived at the 2.2 million figure. The Report never mentions CCNV again and in fact never mentions the two million figure again. Declaring that [t]here is a clear need for more systematic evidence to help in assessing existing estimates[,] Report at 9, the Report proceeds to lay out the four approaches used by HUD to assess the size of the homeless population and concludes with the agency's determination of the most reliable range of figures, Report at 9-18. 28 For purposes of our inquiry, the Report must be taken as a whole, and in the sense which it would be understood by the readers to whom it was addressed. Jaffe, 366 F.2d at 655. At most, a reader might conclude that CCNV's figure is grossly overestimated, is not the result of a thorough census, and was not drawn from equally systematic evidence. But a suggestion of inaccuracy and of utilizing inadequate research is not defamatory. We cannot conclude that a reader of average interest could reasonably understand the Report to signify that CCNV's figures are fraudulent or dishonest. Because we find that nothing in the Report is capable of bearing a defamatory meaning, we dismiss appellants' libel claim for failure to state a claim upon which relief may be granted. 29 The second set of allegedly defamatory remarks, pertaining to CCNV's slander claim, does not suffer from this insufficiency. As particularized in the CCNV declaration submitted in support of appellee's Motion for a Preliminary Injunction, these allegedly slanderous statements consist of two separate oral communications. The first is a comment made by the Secretary on Nightline stating that the two million figure is absolutely ridiculous and that CCNV grabbed the one percent [2.2 million] out of the air. HUD's Acting General Deputy Assistant Secretary for Policy, Development, and Research, Benjamin Bobo, made the second comment during the May 24 congressional hearing. Assistant Secretary Bobo testified that by check[ing] with Mr. Snyder [CCNV member] to determine the basis of [the two million figure], ... [i]t turned out that there was no legitimate or systematic basis or basis for the figure.... An observer could reasonably understand these comments as allegations that CCNV intentionally fabricated the two million figure out of whole cloth. Such an imputation of fraud and dishonesty in one's professional dealings is defamatory. See Hoffman, supra. Since it is not beyond doubt that a reasonable person might understand the comments as conveying defamatory falsehoods, we cannot sanction the complaint's dismissal on this count. See Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 101-02, 2 L.Ed.2d 80 (1957). We do not, of course, suggest that CCNV has actually been defamed. That issue must be resolved before the trial court. 30 The nature of the remedy that appellants seek, however, gives us pause. The sole relief appellants request is a judgment declaring the Report unlawful and an injunction ordering HUD to disavow and rescind it. The remedy sought here bears no relationship to the harm allegedly caused by the slander. Even assuming the HUD officials tortiously defamed CCNV, HUD's rescission and renunciation of the Report will do nothing to relieve the alleged damage to CCNV's reputation caused by the Secretary's and Mr. Bobo's remarks. We are mindful, however, that a court should not dismiss a complaint on grounds that the relief prayed for is inappropriate, so long as plaintiffs may be entitled to some relief if they are able to prove their claims. See Norwalk Core v. Norwalk Redevelopment Agency, 395 F.2d 920, 925-26 (2d Cir.1968); Deary v. Guardian Loan Co., 563 F.Supp. 264, 265-66 (S.D.N.Y.1983). 31 On the record before us, we are unable to find that CCNV would not be entitled to appropriate relief, although appellant faces considerable impediments to recovery. Appellants must thus be given an opportunity to seek such relief, amending their complaint if necessary to that effect. Both equitable and monetary relief may be appropriate. 32 If able to prove its slander claim, CCNV may be entitled to alternative equitable relief, e.g., a retraction. The usual rule is that equity does not enjoin a libel or slander and that the only remedy for defamation is an action for damages. Kukatush Mining Corp. v. SEC, 198 F.Supp. 508, 510-11 (D.D.C.1961) (dismissing slander claim that prayed for injunctive relief), aff'd, 309 F.2d 647 (D.C.Cir.1962); see Leo Winter Associates, Inc. v. Department of Health and Human Services, 497 F.Supp. 429 (D.D.C.1980). However, [u]nder certain circumstances, declaratory and injunctive relief may be obtained against defamatory statements by government officials. Expeditions Unlimited Aquatic Enterprises, Inc. v. Smithsonian Institution, 566 F.2d 289, 294 n. 16 (D.C.Cir.1977) (en banc) (citing Joint Anti-Fascist Refugee Committee v. McGrath, 341 U.S. 123, 139-40, 71 S.Ct. 624, 631-32, 95 L.Ed. 817 (1951)), cert. denied, 438 U.S. 915, 98 S.Ct. 3144, 57 L.Ed.2d 1160 (1978). Because the parties paid little, if any, attention to this claim either here or before the district court, there is insufficient information to enable us to determine whether those circumstances apply in this case. 33 Alternatively, if able to prove its slander claim, CCNV may be entitled to damages. But appellant would have to assume a substantial burden, both evidentiary and legal. In order to recover against the Secretary, CCNV must demonstrate that the traditional damage remedy is not foreclosed because of the doctrine of official immunity. Federal government employees enjoy immunity from liability in damages for common law defamation if they act within the outer perimeters of their official authority. See Schewmaker v. Minchew, 666 F.2d 616, 617 (D.C.Cir.1981); Expeditions Unlimited Aquatic Enterprises, 566 F.2d at 291; see also Barr v. Matteo, 360 U.S. 564, 79 S.Ct. 1335, 3 L.Ed.2d 1434 (1959). Given the Secretary's broad statutory duties, see 42 U.S.C. Sec. 3523 (1982), the Secretary's comments may fall within the outer perimeters of his authority. Cf. Barr v. Matteo, 412 U.S. at 575, 79 S.Ct. at 1341 (It would be an unduly restrictive view of the scope of the duties of a policy-making executive official to hold that a public statement of agency policy in respect to matters of wide public interest and concern is not action in the line of authority.). Again, given the dearth of information on point and the absence of a complaint that seeks monetary relief, we are unable to resolve the issue of the Secretary's immunity. 34 Both forms of relief, equitable and monetary, may be foreclosed against Assistant Secretary Bobo. Appellants have not named Mr. Bobo as a defendant and have offered no theory on which the Secretary, the named defendant, might be held liable for Mr. Bobo's tortious behavior. This oversight may preclude recovery for the Assistant Secretary's allegedly slanderous statements. Moreover, because Mr. Bobo made his remarks before the House during public hearings, his communications may be subject to the common law privilege applicable to legislative proceedings. See Webster v. Sun Co., 731 F.2d 1 (D.C.Cir.1984) (holding that legislative privilege depends upon whether statements were solicited or not, and setting out definition of privilege in context of unsolicited remarks); Restatement (Second) of Torts Secs. 588, 590A (1977). Neither party has broached this issue, and the lack of information renders this court ill-equipped to address it. 35 Despite our serious reservations about appellant's ability to overcome the obstacles enumerated above, we cannot say, based on the pleadings and declarations before us, that CCNV is not entitled to some form of appropriate relief if it is able to prove its slander claim. Accordingly, we reverse the district court's dismissal of this portion of the complaint and remand to the court for further disposition of this claim.