Opinion ID: 1300593
Heading Depth: 1
Heading Rank: 2

Heading: Defamatory Statements.

Text: Defendants claim the two statements by Ballard, I don't trust you and he was fired for stealing, are not defamatory because they are an expression of opinion, the truth or privileged. Moreover, defendants argue the verdicts were excessive, and that, as a matter of law, punitive damages were erroneously assessed against T-Bird. The uncontroverted evidence at trial sets forth the following facts: On December 19, 1984, Ballard discharged Newberry in the back offices of the T-Bird store in Artesia. After Ballard emerged from these offices, Newberry followed him onto the store floor to discuss the matter further. An argument ensued at which time Ballard said in a loud voice, I don't trust you. Then in May 1985 at a dinner, Ballard was asked by a former T-Bird employee, the spouse of a manager of a T-Bird store, why Newberry had been discharged. In response, Ballard stated, he was fired for stealing. At trial, Ballard testified that he terminated Newberry for being dishonest based on Newberry's failure to fill out the charge slips timely, and that, he was not discharged for theft. The lines of demarcation between slander (an oral communication) and libel (a written communication), subcategories of defamation, have become sufficiently blurred that we agree there are good reasons for abolishing the distinction between [them]. See Reed v. Melnick, 81 N.M. 608, 612, 471 P.2d 178, 182 (1970), overruled on other grounds, Marchiondo v. Brown, 98 N.M. 394, 649 P.2d 462 (1982) (Marchiondo II) . Generally, the elements of a defamation action include: a defamatory communication, published by the defendant, to a third person, of an asserted fact, of and concerning the plaintiff, and proximately causing actual injury to the plaintiff. See SCRA 1986, 13-1002. A statement is deemed to be defamatory per se, if, without reference to extrinsic evidence and viewed in its plain and obvious meaning, the statement imputes to plaintiff: the commission of some criminal offense involving moral turpitude; affliction with some loathesome disease, which would tend to exclude the person from society; unfitness to perform duties of office or employment for profit, or the want of integrity in discharge of the duties of such office or employment; some falsity which prejudices plaintiff in his or her profession or trade; or unchastity of a woman. Marchiondo v. New Mexico State Tribune Co., 98 N.M. 282, 287-88, 648 P.2d 321, 326-27 (Ct.App. 1981), cert. quashed, 98 N.M. 336, 648 P.2d 794 (1982) (Marchiondo I). Any other communication, though not defamatory on its face, but which becomes defamatory when its meaning is illuminated by proof of extrinsic facts is actionable per quod. See id. at 288-89, 648 P.2d at 326-27. Traditionally, if a statement was found to be defamatory per se, damages to the reputation of the plaintiff were presumed. New York Times Co. v. Sullivan, 376 U.S. 254, 262, 84 S.Ct. 710, 716, 11 L.Ed.2d 686 (1964). This per se-per quod rule, however, has probably been overtaken by rulings of the United States Supreme Court, in New York Times, and its progeny through Dun & Bradstreet Inc., v. Greenmoss Builders, Inc., 472 U.S. 749, 105 S.Ct. 2939, 86 L.Ed.2d 593 (1985), which have held that, generally, damages cannot be presumed in a defamation action. Under the now-existing law of defamation in New Mexico, the standard of strict liability no longer applies. Marchiondo II, 98 N.M. at 402, 649 P.2d at 470. Damages must be proved and cannot be presumed. Poorbaugh v. Mullen, 99 N.M. 11, 20, 653 P.2d 511, 520 (Ct.App.), cert. denied, 99 N.M. 47, 653 P.2d 878 (1982). In determining the correct standard of proof for damages, the relevant question is not whether the defamation is per se or per quod, but whether the plaintiff is a private or public figure. See Marchiondo II, 98 N.M. at 399, 649 P.2d at 467. The ordinary common-law negligence standard of proof applies to private defamation plaintiffs to establish liability, and proof of actual malice (knowledge of the falsity of the statement or reckless disregard of the truth) applies to the public official and public figure plaintiff. Id. at 402, 649 P.2d at 470. This establishes liability for compensation of actual injury. Suffice it to say that actual injury is not limited to out-of-pocket loss. Indeed, the more customary types of actual harm inflicted by defamatory falsehood include impairment of reputation and standing in the community, personal humiliation, and mental anguish and suffering. Of course, juries must be limited by appropriate instructions, and all awards must be supported by competent evidence concerning the injury, although there need be no evidence which assigns an actual dollar value to the injury. Id. (quoting Gertz v. Robert Welch, Inc., 418 U.S. 323, 350 (1974)). Further in New Mexico, a private defamation plaintiff must plead and prove special damages in order to recover them. Marchiondo II, 98 N.M. at 402, 649 P.2d at 470. Special damages encompass only pecuniary loss. Marchiondo I, 98 N.M. at 289, 648 P.2d at 328. A public figure or public official plaintiff must also show the falsity of the statements at issue in order to prevail. Philadelphia Newspapers, Inc. v. Hepps, 475 U.S. 767, 774-76, 106 S.Ct. 1558, 1563, 89 L.Ed.2d 783 (1986). The traditional rule in New Mexico is that truth is an affirmative defense to an action for defamation, and as such, the defendant has the burden of pleading and proof on the issue. NMSA 1978, § 38-2-9 (Repl.Pamp. 1987). The treatment of truth as an affirmative defense remains where the plaintiff is a private figure. See Dun & Bradstreet. Where the plaintiff is a public figure or public official, he or she must prove the falsity of the statement as an element of defamation. Philadelphia Newspapers, 475 U.S. at 774-76, 106 S.Ct. at 1563. As to punitive damages, they are recoverable if there is proof that the publication was made with actual malice. Marchiondo II, 98 N.M. at 403, 649 P.2d at 471. This requires proof by clear and convincing evidence that publication of the communication by the defendant was made with knowledge of its falsity or with reckless disregard of the truth. SCRA 1986, 13-1011; see also New York Times, 376 U.S. at 285-86, 84 S.Ct. at 728-29. The United States Supreme Court recently distinguished Gertz and declared that states may award punitive damages to private plaintiffs who are the subject of defamation on a matter not of public concern, even in the absence of malice as defined in Gertz. Dun & Bradstreet. We decline to follow Dun & Bradstreet on that issue. In the instant case we agree with defendants that the statement, I don't trust you, said during an argument is an expression of opinion and not a statement of existing fact. Whether a publication constitutes opinion or fact depends upon whether ordinary persons hearing    the matter complained of would be likely to understand it as an expression of the speaker's    opinion, or as a statement of existing fact. Marchiondo II, 98 N.M. at 404, 649 P.2d at 472 (quoting Mashburn v. Collin, 355 So.2d 879, 885 (La. 1977)). A publication is not defamatory merely because the opinion may be expressed in terms of strong invectives, profanity, or sarcastic language. Marchiondo I, 98 N.M. at 292, 648 P.2d at 331. The statement to Newberry was said in response to Ballard's discovery that Newberry had on two occasions failed to complete charge slips for merchandise he removed from the store, which was in violation of company policy. Under these circumstances, the statement is not actionable defamation. We reverse the damage award of $21,286 and enter judgment in favor of defendants on this issue. There is substantial evidence to support the jury's verdict that the statement, he was fired for stealing is defamatory. To determine the amount of damages to which plaintiff is entitled, we must first ascertain plaintiff's status. Newberry is a private plaintiff and the subject of the defamation is a private matter. Accordingly, for Newberry to be compensated for actual injury, he must prove that Ballard negligently published the communication, and that, the communication proximately caused actual injury to plaintiff's reputation. The instruction to the jury said that plaintiff had the burden of proving one or more of the following injuries: harm to plaintiff's good name and character among friends, neighbors and acquaintances; harm to plaintiff's good standing in the community; personal humiliation; and mental anguish and suffering. Testimony was presented that for a short period of time after his termination, Newberry stayed home, but, by the end of January 1985, he was employed and performed his job satisfactorily and continued to do so until the time he joined his wife's business in June 1985. There was also evidence that upon his discharge, Newberry was in shock, humiliated, his stomach was in knots, and his headaches reactivated his high blood pressure. The statement in question, however, was not made until May 1985, at which time Newberry was gainfully employed. There may not be substantial evidence to support the jury's verdict against defendants in the amount of $15,535 for actual damages. Moreover, there is no evidence that Ballard made the statement during the scope of his employment. [E]mployers may be vicariously liable for compensatory damages which result from torts of employees acting within the scope of their employment, regardless of the culpability of the employer. Samedan Oil Corp. v. Neeld, 91 N.M. 599, 602-03, 577 P.2d 1245, 1248-49 (1978) (emphasis in original). Consequently, T-Bird cannot be held liable, because the statement by Ballard was not said during the scope of his employment. For the jury to return a verdict of punitive damages against Ballard, the jury had to find by clear and convincing evidence that Ballard made the statement with actual malice (knowledge of its falsity or with a reckless disregard for whether it was false or not). Ballard testified that Newberry was not discharged for theft, but for being dishonest. The jury returned a verdict of punitive damages against both defendants for $5,000. This verdict cannot stand against T-Bird. The law in New Mexico states that a master or employer is liable for punitive damages for the tortious act of an employee acting within the scope of his employment and where the employer in some way participated in, authorized or ratified the tortious conduct of the employee. Id. at 603, 577 P.2d at 1249. Again, the statement was not made during the course of Ballard's employment and, unless compensatory damages are first found, punitive damages cannot be awarded against T-Bird, the employer. In sum, as to the statement, he was fired for stealing, we reverse the award of damages against T-Bird; we reverse and remand for a new trial limited to the issue of damages, actual and punitive, against Ballard.