Opinion ID: 769131
Heading Depth: 2
Heading Rank: 2

Heading: Elements of Defamation

Text: 10 Under New Mexico law, the elements of defamation include (1) a publication by the defendant, (2) of an asserted fact, (3) which is defamatory, (4) communicated to a third person, (5) of and concerning the plaintiff, (6) and proximately causing injury to the plaintiff. See Newberry v. Allied Stores, Inc., 773 P.2d 1231, 1236 (N.M. 1989); see N.M. Stat. Ann. Civ. U.J.I. 13-1007 (Michie 2000) (hereinafter, U.J.I.). The fourth, fifth, and sixth elements are not contested in this appeal, so we shall discuss only the relevant elements as they are qualified by the facts before us. 11 But before we analyze the elements as listed above, in order to determine the correct standard of proof for damages, we must first determine whether or not the plaintiff is a public figure. See Newberry, 773 P.2d at 1236. If the plaintiff is not a public figure or public official, the ordinary common law negligence standard of proof for damages applies. See id. If we determine that the plaintiff is a public figure, or a public figure for a limited range of issues, the plaintiff must show the falsity of the statement at issue in order to prevail. See Philadelphia Newspapers v. Hepps, 475 U.S. 767, 775 (1986); U.J.I. 13-1006. In addition, a public-figure plaintiff must also establish proof of actual malice, which is knowledge of the falsity of the statement or reckless disregard of the truth. See Masson v. New Yorker Magazine, Inc., 501 U.S. 496, 510 (1991) (citing New York Times v. Sullivan, 376 U.S. 254, 279-80 (1964)); Newberry, 773 P.2d at 1236. 12 In its October 7, 1998 order, the district court concluded that Dr. Schwartz is a public figure for a limited range of issues. Aplt's App. at 361. We agree. Whether or not a person is a public figure is a question of law for the court. Marchiondo v. Brown, 649 P.2d 462, 467 (N.M. 1982); see Ammerman v. Hubbard Broad., Inc., 572 P.2d 1258 (N.M. Ct. App. 1977). A public figure is a person who 'voluntarily injects himself or is drawn into a particular public controversy and thereby becomes a public figure for a limited range of issues.' Furgason v. Clausen, 785 P.2d 242, 249 (N.M. Ct. App. 1989) (quoting Gertz, 418 U.S. at 351). Dr. Schwartz testified he was a spokesperson for the ideas that were expressed in [his] editorial, and . . . [he] was held in high repute, . . . . Aplt's App. at 110 (Schwartz Depo. at 184). Dr. Schwartz's pleadings stated that he: 13 is a nationally-recognized pioneer in the professionalization of the field of Emergency Medicine, . . . a nationally recognized author in the Emergency Medicine profession who is editor-in-chief of a leading textbook used in medical schools nationwide, a scholar and researcher in the Emergency Medicine field . . . . 14 Aplt's App. at 11-12 (Complaint 9). Dr. Schwartz does not dispute that he has injected himself into the public controversy involved in this case. He states that when he wrote his February 1994 article, he was joining other medical magazines and journals, as well as the national news media who were reporting on similar practices involving multi-hospital contract management companies. Id. at 12. As such, we conclude that Dr. Schwartz is a public figure for purposes of this action.
15 Here, the parties do not contest the statement's republishing by defendants. Less clear is a republisher's liability under New Mexico law. Although New Mexico state courts have not addressed a republisher's liability for another party's defamatory statement, New Mexico generally follows the Restatement's approach in its law concerning the tort of defamation. See, e.g., Andrews v. Stallings, 892 P.2d 611, 615 (N.M. Ct. App. 1995) (quoting Restatement (Second) of Torts 566 (1976)); Dominguez v. Stone, 638 P.2d 423, 425 (N.M. Ct. App. 1981) (quoting Restatement (Second) of Torts 559). 16 The Restatement supports the view that one who repeats or otherwise republishes defamatory matter is subject to liability as if he had originally published it, [e]xcept as to those who only deliver or transmit defamation published by a third person. Restatement (Second) of Torts 578. [T]he republisher of a defamatory statement made by another remains subject to liability (Restatement (Second) of Torts 578 (1977)), but he cannot be held liable unless he himself knew at the time when the statement was published that it was false, or acted in reckless disregard for its truth or falsity. Catalano v. Pechous, 419 N.E.2d 350, 361 (Ill. 1980). As such, the publication of Dr. McCabe's statement in Mr. McCormick's article could support Dr. Schwartz's claim for defamation against Mr. McCormick, ACEP, or AMA.
17 In order for there to be liability, we must first confirm that the statement made is one capable of being defamatorythat is, the statement is factual--and not merely an expression of opinion. The First Amendment protects opinions under certain conditions. See Gertz v. Robert Welch, Inc., 418 U.S. 323, 339-40 (1974); Jefferson County School Dist. v. Moody's Investor's Servs., Inc., 175 F.3d 848, 852-54 (10th Cir. 1999). Certain expressions of opinion implicitly contain an assertion of objective fact, and such statements are not exempt from a defamation claim. See Milkovich v. Lorain Journal Co., 497 U.S. 1, 18-19 (1990); Gertz, 418 U.S. at 339-40. 18 New Mexico has adopted the following guidelines in an initial determination of whether a publication constitutes an opinion: 19 [T]he crucial difference between statement of fact and opinion depends upon whether ordinary persons hearing or reading the matter complained of would be likely to understand it as an expression of the speaker's or writer's opinion, or as a statement of existing fact. 20 Machiondo v. Brown, 649 P.2d at 472 (quoting Mashburn v. Collin, 355 So.2d 879, 885 (La. 1977) (footnote omitted)). Whether the statement in question is one of fact or opinion is a question of law. See id. 21 To determine whether the statement is one of fact or opinion, we first inquire whether a reasonable factfinder could conclude that the quotation of Dr. McCabe's statement implied an assertion that Dr. Schwartz had engaged in stock fraud. See Jefferson County School Dist., 175 F.3d at 853. We also must consider whether the publication of the statement that Dr. Schwartz was being sued for stock fraud was sufficiently factual to be susceptible of being proved true or false. Id.; see Milkovich, 497 U.S. at 21. 22 The plain and ordinary meaning of the statement that Dr. Schwartz was being sued for stock fraud implied that Dr. Schwartz had perhaps engaged in stock fraud. In addition, the statement is sufficiently factual to be susceptible of being proved true or false. Jefferson County School Dist., 175 F.3d at 853. We determine as a matter of law that the statement that Dr. Schwartz was being sued for stock fraud is an unambiguous statement of fact, and that Mr. McCormick was attempting to convey, not interpret, what Dr. McCabe said.
23 To support a claim for defamation, the communication must be false. U.J.I. 13-1006. The burden is on the plaintiff to establish the falsity of the statement. See Masson, 501 U.S. at 517; Hepps, 475 U.S. at 774-76; U.J.I. 13-1002(B)(4); Newberry, 773 P.2d at 1237. 24 It has long been accepted that truth is an affirmative defense to an action for defamation. Newberry, 773 P.2d at 1237. The law of defamation overlooks inaccuracies and focuses on substantial truth. See Masson, 501 U.S. at 516; U.J.I. 13-1006 Minor inaccuracies do not amount to falsity so long as 'the substance, the gist, the sting of the [defamatory] charge can be justified.' Masson, 501 U.S. at 517 (internal citation omitted). If the statement produces 'a different effect on the mind of the reader from that which the pleaded truth would have produced,' we will consider it to be false. Id. (quoting R. Sack, Libel, Slander, & Related Problems 138 (1980)). As such, [s]ubstantial truthfulness is a defense to an action for defamation. Ammerman, 572 P.2d at 1262; see U.J.I. 13-1006; Masson, 501 U.S. at 516-17. 25 Coastal filed claims of libel, slander and unfair and deceptive acts against Dr. Schwartz in North Carolina state court. See Aplt's App. at 149-60 (Coastal Complaint). Specifically, the Coastal complaint alleged that Dr. Schwartz made false and defamatory statements regarding Coastal in his February 1994 article in the Emergency Medicine News. The complaint also alleges that Dr. Schwartz made similar false and defamatory statements to stock analysts in an effort to deceive the public, to Coastal's customers, to Coastal's patients and potential patients, and to the public to cast doubt among the professional clinical community regarding Coastal's integrity. See id. at 159, 33. The Coastal complaint also asserted that Dr. Schwartz made such statements to affect negatively (i.e., lower) the price of Coastal's stock because, at the time, Dr. Schwartz held a short position in Coastal stock. See id. at 157, 24. 26 If Dr. McCabe had said Dr. Schwartz is being sued for making deceptive statements made relating to stock transactions, this statement would be unquestionably true. The record indicates that Dr. Schwartz's counsel conceded as much. See Aplt's App. at 365 (Order at 7-8). Mr. McCabe asserts his statement that Dr. Schwartz was being sued for stock fraud, although perhaps made with inattention to its legal accuracy was, under this record, only his layman's interpretation of Coastal's unfair and deceptive practices claim. See Aplt's App. at 142 (McCabe Affid. 8), 162. Also, even Dr. Schwartz's experts testified that a reasonable interpretation, from a layman's perspective, of allegations of deceit for personal gain may be characterized as fraud. Aplt's App. at 131, 136. Although technically inaccurate, the gist of Dr. McCabe's statement is substantially true and, therefore, cannot serve as the basis for a defamation action. Masson, 501 U.S. at 517; see U.J.I. 13-1006 (Insignificant inaccuracies of expression are not sufficient to support a communication that is false in a material way.). 27 We agree with the district court that [v]iewing the facts in the light most favorable to [Dr. Schwartz], he is unable to establish the legal falsity of the statement published by the defendants. Aplt's App. at 365. As such, the defendants are entitled to judgment as a matter of law. See Masson, 501 U.S. at 517; U.J.I. 13-1002(B)(4); Newberry, 773 P.2d at 1237. We recognize the accuracy of the district court's observation that the existence of malice is a factual issue that normally should survive summary judgment, but we are confused as to its relevance in this proceeding. Dr. Schwartz's inability to establish the falsity of the statement, an essential element of a defamation claim, obviates our consideration of evidence of malice. With this caveat, we AFFIRM the district court's grant of summary judgment in favor of the defendants and against Dr. Schwartz.