Court Opinion

ID: 9472717
Source: CourtListenerOpinion
Date Created: 2023-08-05 04:08:18.682543+00
Date Added: 2024-06-11T17:43:05.567675
License: Public Domain

LIVELY, Chief Judge.
This is an appeal by the plaintiff from summary judgment in favor of the defendant WZZM-TV of Grand Rapids, Michigan, in an action claiming that a broadcast by the defendant invaded the plaintiff’s right of privacy. Jurisdiction is based on diversity of citizenship, and the substantive law of Michigan controls. This appeal was originally heard by a panel of the court and its opinion, reported at 715 F.2d 1059 (6th Cir. 1983), was vacated and rehearing en banc was granted in an order reported at 718 F.2d 802 (6th Cir.1983).
I.
The plaintiff Bichler was president and the principal shareholder of Rebel Promotions, Inc., a Michigan corporation which operated the Thunderbird Dinner Theater in Alpine Township, near Grand Rapids, Michigan. As general manager of the theater Bichler booked various productions, which were advertised in the local press. The productions were also reviewed, and news stories were run about the theater in *1008The Grand Rapids Press, the only daily newspaper in the area.
Bichler hired Jerry Moore and his production company to stage several plays at the theater, including “Hair” and “Jesus Christ Superstar.” Moore and Bichler had a dispute after which Bichler stopped payment on a $9,000 check to Moore. Moore then stopped work on “Hair” which was in production and called a press conference to announce the cancellation. The press conference was held at a motel where the cast was staying. In the presence of press representatives and with cameras “rolling” Moore announced to a group of cast members that the current production would cease and that the next scheduled one (“Jesus Christ Superstar”) would not begin, at least not on schedule.
James Rummel, news anchorman for WZZM-TV, attended the conference. After it was over he interviewed Moore, some cast members and the motel manager. Moore told Rummel that he had not been paid for the current production and that he planned to sue Bichler for breach of- contract. Members of the cast confirmed that they had not been paid and that the cancellation of the production created hardships for them. Moore told Rummel that he was only a middleman; that the money came from Bichler and that Bichler was responsible for paying the salaries of the cast. The “innkeeper” told Rummel that payment for the rooms of the cast was in arrears and that this was also Bichler’s obligation.
The press conference and interviews took place between 3 and 5 p.m. on January 21, 1976. Rummel immediately attempted to reach Bichler by calling the theater, his home and a listed place of business, all without success. Later in the evening Rummel drove to, the theater with a cameraman and found the building dark and locked. Rummel then returned to the WZZM studio and prepared for the 11 p.m. newscast. David Kowalczyk and his attorney arrived at the studio before air time and attempted to dissuade Rummel from using the story about the theater. Kowalc-zyk described himself as a “silent partner" in the dinner theater. He had advanced money to Bichler and was worried about the effect the story would have on the ability of the theater to continue operations. He had learned from Moore that WZZM planned to include the story in its newscast. Kowalczyk did not tell Rum-mel that the information from Moore was false. The gist of his and his attorney’s representation to Rummel was that the story “could be the straw that broke the camel’s back.” Kowalczyk wanted the story delayed for a day or two in order to locate Bichler and get his version of the matter. Rummel refused this request, sought as a personal favor, advising Kowalczyk that the story would run.
The story was broadcast as a segment of the 11 o’clock news. The transcript of the broadcast is set forth in its entirety:
“A report on the closing of the Thunderbird Dinner Theater....
And West Michigan’s only Dinner Theater locked its doors today____leaving a production company wondering what to do next____
With no advance warning .... the Thunderbird Dinner Theater locked its doors today____, leaving about 40 members of a New York based production company and advance ticket holders in the lurch. When we got word of the closing we drove out to the Thunderbird located north of Comstock Park on Alpine Avenue. All we found were locked doors and an empty parking lot.
The news of the closing was broken to the members of the current east of “Hair ____ by the show’s producer Jerry Moore:
The Thunderbird Theater has been having financial problems in recent weeks as has it’s [sic] owner Dick Bichler. Today, it was Bichler who was catching the blame and the wrath of the cast:
The problem now becomes one of what to do for the members of the current production of ‘Hair’____and for the cast of the theater’s next scheduled production of ‘Jesus Christ Superstar.’ Most of *1009them are without money and without plane tickets home ... all of which Bichler had contracted for.
Bichler was unavailable for comment today. ...
Producer Moore will file a lawsuit against him tomorrow charging breach of contract____
And there might be a few advance reservation holders who will be wanting their money back.
According to Moore, more than 3000 dollars in advance tickets had been sold to ‘Jesus Christ Superstar’ ... slated to open January 28th”
Rummel attempted to locate Bichler the following day, again without success. He also checked the public records and found outstanding claims against Bichler and his business enterprises. The story was “repackaged” and broadcast again at 5:30 that evening.
The day following the second broadcast a local bank called its loan with the theater and repossessed personal property covered by security agreements from the theater premises. Other creditors removed equipment which had not been paid for and the building was largely stripped of its contents within a few weeks. The theater never reopened.
II.
A.
In his complaint Bichler charged WZZM with defaming him “by defaming the business entity, the Thunderbird Dinner The-ater____” The defamation charged in the complaint consisted of opening the program with a reference to “a cooked chicken” (the Thunder Chicken Rock Theater was an adjunct enterprise), relying on information from Jerry Moore without checking out the facts and making the statement that the dinner theater had “in fact terminated its business for good, which statement was absolutely false and fallacious.” An action for libel was barred by limitations and, as developed in affidavits, depositions and other discovery Bichler’s claim was for invasion of privacy consisting of broadcasting embarrassing private facts about him and placing him in a false light in the public eye. The district court identified the portions of the broadcasts objected to as follows:
The alleged disclosure of private facts complained of by plaintiff contained in the broadcast consists of the following:
(1) “The Thunder Bird Theater has been having financial problems in recent weeks as has its owner Dick Bichler. Today it was Bichler who was catching the blame and the wrath of the cast.”
The following statements are alleged to constitute publicity holding out plaintiff in a false light:
(1) that plaintiff Bichler was having financial difficulties;
(2) that the closing left ..'. about 40 members of a New York based production company and advance ticket holders in the lurch.
(3) ... Most of them are without money and without plane tickets home ... all of which Bichler had contracted for.
(4) ... More than $3,000 in advance tickets had been sold to Jesus Christ Superstar ... slated to open January 28th. (Inferring, according to plaintiff that these people also would be “waiting in the lurch for their money back.”)
(5) Thunder Bird was a cooked chicken,1 and the place was closed.
After considering the voluminous record compiled during the three and one-half years between the filing of the complaint and its decision, the district court concluded that the plaintiff had not raised a triable issue on either of his claims. The district court determined that the closing of the *1010only dinner theater in Western Michigan was a newsworthy event, as had been its opening and continued operations. Exhibits were filed which showed substantial media coverage of those events. Bichler’s financial condition as the reported “owner” and “manager” of the theater was closely related to the financial condition of the theater and the story of its closing. Concerning the “private facts” claim the district court concluded that the reference to Bichler’s financial condition was neither highly offensive nor made “for its own sake,” and was privileged under Michigan law.
The district court made alternative findings with respect to the “false light” claim. It concluded that Bichler was a public figure at least in the context of the theater business and that WZZM could not be held liable under Michigan law in the absence of a showing of actual malice. In the alternative the court found that even if Bichler were found to be a private person he was not entitled' to a trial without demonstrating that “evidence exists which creates a legitimate fact issue over whether WZZM knew that its broadcast would place plaintiff in a false light, or with reckless disregard of that result.” The court found that Michigan applies the same actual malice standard to claims of private individuals regardless of whether they are based on libel or on placing the plaintiff in a false light. After examining all the affidavits and discovery materials the district court concluded that the plaintiff had failed to come forward with evidence showing that WZZM acted with a “high degree of awareness of the probable falsity” of the report, or with “serious doubts” concerning its truth. To the contrary, this examination revealed that no one had told Rummel that his information concerning Bichler’s financial condition was false or that the circumstances surrounding the closing of the theater as reported by him were incorrect. On the other hand, Rummel checked the theater and found it closed, checked the facts with outside sources, attempted to contact Bichler for confirmation and, on January 22nd, made a personal check of public records which revealed that there were outstanding claims against Bichler or businesses controlled by him.
B.
On appeal Bichler argues that the statements in the broadcast were not privileged under Michigan law because they were not made in good faith, that the comments on Bichler’s personal finances were outside the scope of the privilege, that the district court erred in treating him as a public figure, and that summary judgment was improper because there were material issues of fact to be decided by a jury. In response WZZM argues that the broadcast concerned a newsworthy subject, that Bichler’s financial difficulties were a legitimate part of the broadcast and that such broadcasts are accorded a qualified privilege under Michigan law. The defendant now concedes that Bichler is not a public figure, but asserts that this makes no difference because the broadcaster’s privilege is lost only upon a showing of “actual malice” regardless of whether the plaintiff is a public figure or a private individual. WZZM further contends that summary judgment was proper because, in response to its motion, Bichler produced no evidence that the broadcast was made with actual malice.
III.
Consideration of Bichler’s claim and WZZM’s defense involves two distinct questions, and they must be considered separately.
The first question is whether WZZM was entitled to the privilege it claimed. The existence of the privilege is a question of law, to be determined by the court upon examining the “occasion” of the publication. The “occasion” refers to the extrinsic circumstances in which the broadcast was made. Lawrence v. Fox, 357 Mich. 134, 139-40, 97 N.W.2d 719 (1959); Peisner v. Detroit Free Press, Inc., 82 Mich.App. 153, 163, 266 N.W.2d 693 (1978). If it is concluded that WZZM was entitled *1011to the privilege, the second question is whether the privilege was lost through abuse, that is, by publishing the story of the theater’s closing with actual malice. This is a question of fact.
A.
In defamation actions Michigan has long recognized the common law defense of privileged communication. Although the claim in the present case is for invasion of privacy rather than libel, the Restatement of the Law recognizes that the same qualified privilege applies to the two types of claims. See Restatement (Second) of Torts, § 652G, comment a. (“[u]nder any circumstances that would give rise to a conditional privilege for the publication of defamation there is likewise a conditional privilege for the invasion of privacy.”) Bichler does not dispute that Michigan follows this rule and requires the same showing of actual malice to overcome the privilege regardless of whether the tort is libel or invasion of privacy.
The Michigan privilege has been described as a qualified one which “extends to all communications made bona fide upon any subject-matter in which the party communicating has an interest, or in reference to which he has a duty, to a person having a corresponding interest or duty.” Bacon v. Michigan Central R.R. Co., 66 Mich. 166, 170, 33 N.W. 181 (1887). Newspapers and broadcasters have a qualified privilege to report on matters of public interest and the privilege applies equally in actions brought by public and private figures. See Lawrence v. Fox, 357 Mich, at 137, 97 N.W.2d 719; Peisner v. Detroit Free Press, Inc., 82 Mich.App. at 160, 266 N.W.2d 693; Weeren v. Evening News Association, 2 Mich.App. 74, 77, 138 N.W.2d 526 (1965), rev’d on other grounds, 379 Mich. 475, 152 N.W.2d 676 (1967). If the privilege attaches to a published report a newspaper or broadcaster is not liable for untruths, however harmful to the person defamed, unless the privilege has been forfeited for abuse, as by publication with actual malice. Bacon, 66 Mich. at 172-73, 33 N.W. 181; Peisner, 82 Mich.App. at 163-64, 266 N.W.2d 693.
The district court held that broadcasts concerning the closing of the only dinner theater in Western Michigan dealt with a matter of legitimate concern to the public, particularly in view of the publicity which had attended its opening and its operations. Bichler contends that the district court erred in its determination because it considered only the “occasion” of the broadcast and did not inquire into the “good faith” of WZZM. This argument telescopes the two distinct and separate inquiries into one. Whether the publication is made in good faith addresses the question of malice, not the question of privilege. As the Michigan Supreme Court stated in Lawrence v. Fox, 357 Mich. at 140, 97 N.W.2d 719, “In making the determination as to the privilege of the occasion, the malice charged by the plaintiff is not considered.” The district court properly determined the question of privilege by reference to the occasion, that is, the circumstances which became the subject of the broadcast.
B.
The district court did not err in holding that the broadcast was privileged. It dealt with a matter of legitimate public interest. Contrary to assertions made at oral argument, there is no requirement that a publication or broadcast deal with a “public controversy” in order to be privileged. The proper test is whether it deals with matters of public interest. In Lawrence v. Fox, 357 Mich, at 141, 97 N.W.2d 719, the court quoted with approval Prosser on Torts, [2d ed], § 95 as follows:
The burden is upon the defendant in the first instance to establish the existence of a privileged occasion for the publication, by proof of a recognized public or private interest which would justify the utterance of the words.
(Emphasis added). See also Peisner v. Detroit Free Press, 82 Mich.App. at 161, 266 N.W.2d 693 (“Qualified privilege of a newspaper to report on matters of public inter*1012est”); Schultz v. Reader’s Digest Ass’n, 468 F.Supp. 551, 560 (E.D.Mich.1979) (“events of legitímate public interest”). As this court wrote in Orr v. Argus-Press Co., 586 F.2d 1108, 1113 (6th Cir.1978):
As a story about a matter of public concern, the article is protected under state law by the qualified privilege of “fair comment.” Lawrence v. Fox, 357 Mich. 134, 97 N.W.2d 719 (1959); Miner v. Detroit Post and Tribune Co., 49 Mich. 358, 363-65, 13 N.W. 773 (1882) (Cooley, J.). See Restatement of Torts, §§ 606, 607 at 275-85 (1938). Accord, Nuyen v. Slater, 372 Mich. 654, 127 N.W.2d 369 (1964); Bufalino v. Maxon Brothers, Inc., 368 Mich. 140, 153, 117 N.W.2d 150, 156 (1962). Everyone, citizen or reporter, has the right to comment on matters of public importance, and expressions of opinion and even misstatements of fact are not actionable in a libel suit unless made maliciously for the purpose of damaging another’s reputation.
We believe WZZM carried its burden of establishing a privileged occasion and that the district court ruled correctly on this issue of law.
C.
The plaintiff next argues that even if the article was otherwise privileged, WZZM’s statements concerning his financial situation were not within the “scope” of the privilege. Bichler contends that disclosure of his financial condition was not a matter of sufficient public interest to justify clothing the “occasion” with a privilege and that there was no logical connection between disclosure of his financial condition and the matter of public interest. A similar argument was made and rejected in Schultz v. Newsweek, Inc., 668 F.2d 911, 915 (6th Cir.1982), where the plaintiff contended that he was an “incidental figure” in the article and therefore comments about him were outside the “scope” of the privilege. Bichler relies on Clark v. American Broadcasting Companies, Inc., 684 F.2d 1208, 1216 (6th Cir.1982), cert. denied, 460 U.S. 1040, 103 S.Ct. 1433, 75 L.Ed.2d 792 (1983), where a panel of this court wrote, “The qualified privilege does not extend, however, to plaintiffs who are not the focus of the alleged public interest publication.” Upon further consideration we can find no support for this limitation on the qualified privilege of publishers and broadcasters under Michigan law and to this extent Clark is disapproved. There is no requirement under Michigan law that the plaintiff be the “focus” of the publication in order for the privilege to attach.
That is not to say that the privi-. lege extends to material which defames another and is not reasonably necessary to the development of the privileged subject matter of the publication. There must be some connection, and courts have expressed this requirement in different ways. For example, in the lower courts the plaintiff in Gertz v. Robert Welch, Inc., 418 U.S. 323, 94 S.Ct. 2997, 41 L.Ed.2d 789 (1974), claimed that even though the general subject matter of the article was of sufficient importance to be privileged the comments about him did not concern a matter of public interest. The court of appeals rejected this claim because the accusations against the plaintiff were “integral to the central thesis” of the article. Gertz v. Robert Welch, Inc., 471 F.2d 801, 806 (7th Cir.1972). The Supreme Court approved this holding. Gertz, 418 U.S. at 331 n. 4, 94 S.Ct. at 3002-3003 n. 4. Similar reasoning may be applied to the present case. Bichler was publicly identified as the “owner” and the “manager” of the theater. Moore told Rummel that Bichler was responsible for payment of past due salaries of the cast and the motel manager told him that Bichler was responsible for the unpaid room charges at the motel. The “central thesis” of the broadcast was that the theater was in financial trouble which caused it to close, and Bichler’s financial condition played an integral part in development of this thesis. We do not adopt “integral to the central thesis” of the article or broadcast as the only test. It is illustrative of the requirement that there be a reasonable relationship between the general privileged *1013subject of the publication and the references to the plaintiff who claims injury.
In summary, we find no error in the ruling by the district judge that WZZM was entitled to a qualified privilege in defense of Bichler’s claim. The remaining question is whether the district court correctly held that Biehler failed to present a jury question on the issue of malice.
IV.
The purpose of the communication privilege is to promote the free and open exchange of ideas. The privilege “provides the publisher a sanctuary of sorts” from the consequences of defamation actions. Lawrence v. Fox, 357 Mich, at 137, 97 N.W.2d 719. The publisher is not held to a standard of absolute truth; there is no liability for falsehood unless it is published with malice. We must first determine the proper definition of malice and then decide whether the plaintiff presented a triable issue in response to the defendant’s motion for summary judgment.
A.
A plaintiff who is a public official or a public figure may recover for defamation only upon showing that a publication was made with actual malice, that is, “with knowledge that it was false or with reckless disregard of whether it was false or not.” New York Times Co. v. Sullivan, 376 U.S. 254, 280, 84 S.Ct. 710, 726, 11 L.Ed.2d 686 (1964). The same constitutional standard applies in actions for invasion of privacy. Time, Inc. v. Hill, 385 U.S. 374, 387-88, 87 S.Ct. 534, 541-42, 17 L.Ed.2d 456 (1967). However, where the plaintiff is a private individual the states are free to define the standard of liability so long as they do not impose liability without fault on a publisher or broadcaster. Gertz v. Robert Welch, Inc., 418 U.S. at 347, 94 S.Ct. at 3010.
It seems clear from recent decisions of the Michigan Court of Appeals that Michigan has determined that the definition of actual malice announced by the Supreme Court of the United States in New York Times Co. v. Sullivan should be applied to actions such as the present one. See Gaynes v. Allen, 128 Mich.App. 42, 47, 339 N.W.2d 678, 680 (1983) (“In Michigan, the New York Times standard has been extended to actions brought by private individuals to recover from media defendants for defamatory falsehoods concerning matters of public interest.”); Peisner v. Detroit Free Press, Inc., 104 Mich.App. 59, 64, 304 N.W.2d 814 (1981); see also, Schultz v. Newsweek, Inc., 668 F.2d at 918.
While the existence of malice is a question of fact, as with any issue otherwise requiring a jury’s determination, the question of malice may become one of law if the defendant moves for summary judgment and the plaintiff fails to establish the existence of a genuine issue as to any material fact. Rule 56(c), Fed.R.Civ.P.; Schultz v. Newsweek, Inc., 668 F.2d at 918 (“the function of summary judgment is to dispose of cases without trial when one party is unable to demonstrate the existence of a fatual dispute which, if present, would require resolution by a jury or other trier of fact.”).
We look to the record, then, to determine whether Biehler demonstrated the existence of a genuine issue as to any material fact.
B.
Biehler argues that there was a genuine issue with respect to a material fact because Kowalczyk testified he told Rummel that Jerry Moore was a “noted liar” and Rummel denied that either Kowalczyk or his attorney made such a statement. An examination of Kowalczyk’s deposition does not support Bichler’s claim. What Kowalczyk said was that he considered Jerry Moore to be a noted liar, not that he told this to Rummel. Testifying that he asked Rummel to keep the story off the air, Kowalczyk said to his questioner, “... you know, he got all his information from Jerry Moore, and Jerry Moore is a noted liar, anyway, ...” Contrary to Bichler’s claim, neither he nor any other deponent or affiant stated that he advised *1014Rummel that Moore was untrustworthy. Further, the evidence is uncontradicted that Rummel questioned members of the cast and the motel manager, all of whom verified the version given by Moore. It is also uncontradicted that Rummel tried repeatedly to contact Bichler for his version and eventually went to the theater and found it locked and dark. Bichler failed to produce any evidence that Rummel should have believed Moore was lying.
Bichler also contends that the broadcast stated that the dinner theater was closed permanently whereas all Rummel had been told was that the current production was cancelled and the next one would not open on schedule. The corporation which owned the theater is not a party to this action and it is difficult to see how this error in the broadcast, if it was error, put Bichler in a false light. However, at this point in the inquiry we are not concerned with whether the entire broadcast was truthful. Once it has been determined that the broadcast is privileged the court does not speculate on whether it is truthful; it only looks to see if the defendant has lost its qualified privilege by making knowingly false statements or making statements with reckless disregard of whether they were false. Lins v. Evening News Ass’n, 129 Mich.App. 419, 436, 342 N.W.2d 573 (1983). The broadcast referred only to the fact that the theater locked its doors, leaving the cast of “Hair” and “Jesus Christ Superstar” stranded, and leaving advance ticket holders for “Superstar” in the lurch. The fact that some listeners might interpret this as meaning the theater was closing permanently is not in any way probative of the issue of malice.
Bichler also asserts that summary judgment was improper because depositions of some possible witnesses had not been taken and their testimony might shed light on “unresolved material issues.” The motion for summary judgment was filed by WZZM on July 25, 1980. The order granting summary judgment was entered on October 22, 1981. Both before and after WZZM filed its motion the parties actively pursued discovery, and many depositions were filed. On September 2, 1980 the district court denied a motion by WZZM for a protective order to prevent Bichler from taking certain depositions. There is no indication in the record that the district court ever limited Bichler’s discovery or that Bichler ever sought to avoid submission of WZZM’s motion on the ground that discovery had not been completed.
Finally, Bichler contends that summary judgment is improper where malice is the issue because “the subjective knowledge” of Rummel is material and malice may be inferred from proof of other facts. This argument is addressed to the first part of the New York Times test — published with actual knowledge of falsity. The Michigan Court of Appeals has affirmed summary judgment in libel actions where the controlling issue was whether a media defendant has lost its qualified privilege by publishing with actual malice. See Lins v. Evening News Ass’n, 129 Mich.App. at 437, 342 N.W.2d 573. The contrast between the present case and Arber v. Stahlin, 382 Mich. 300, 170 N.W.2d 45 (1969), cited by Bichler, where the Supreme Court of Michigan reversed summary judgment for media defendants, is striking. There, very detailed and specific affidavits pointed to the existence of a genuine issue of fact on the question of actual malice. That is not the case here. The affidavits and depositions are conclusory. Finally, the fact that a person’s mental state is involved does not preclude summary judgment in a federal court applying Rule 56, Fed.R.Civ.P. Senior District Judge Ralph Freeman dealt with a similar argument in Schultz v. Reader’s Digest Ass’n., 468 F.Supp. 551, 564 (E.D. Mich.1979):
Although the Court recognizes that Michigan courts have generally held that actual malice is a jury question, Lawrence v. Fox, supra, federal courts applying Rule 56 have granted summary judgment in cases involving subjective intent, including libel eases involving questions of malice. See generally, 6, Pt. 2. Moore’s Federal Practice 1156.17[1] *1015Cervantes v. Time, Inc., 464 F.2d 986 (8th Cir.1972), cert, denied 409 U.S. 1125, 93 S.Ct. 939, 35 L.Ed.2d 257 (1973).
Accord, Schultz v. Newsweek, 668 F.2d at 917.
We find nothing in this record which raises a factual question of whether Rum-mel made the broadcast with knowledge that the statements about Bichler were false.
The alternative basis for a finding of malice under the New York Times test is that a publication is made “with reckless disregard of whether it is false or not.” The requirements for establishing malice by proof of reckless disregard were set forth in St. Amant v. Thompson, 390 U.S. 727, 731, 88 S.Ct. 1323, 1325, 20 L.Ed.2d 262 (1968):
These cases are clear that reckless conduct is not measured by whether a reasonably prudent man would have published, or would have investigated before publishing. There must be sufficient evidence to permit the conclusion that the defendant in fact entertained serious doubts as to the truth of his publication. Publishing with such doubts shows reckless disregard for truth or falsity and demonstrates actual malice.
Again, we find nothing in the record which indicates that Rummel or WZZM “in fact entertained serious doubts as to the truth” of the broadcast.
As has been pointed out, Michigan has long recognized the desirability of public comment on issues of legitimate public interest. This is the reason for its common law communication privilege. By adopting the constitutional standard for measuring malice when a private individual claims injury from a publication or broadcast about a privileged matter of public interest Michigan has given further recognition to the necessity for a free play of ideas in an open society. WZZM established its right to rely on the privilege in this case, and Bichler failed to raise a genuine issue of abuse.
V.
The dissent of Judge Weick requires a response. It is written as if Michigan had chosen to adopt some standard other than the one established in New York Times v. Sullivan for defamation and invasion of privacy actions by private individuals against media defendants. Gertz permits a state to establish a less stringent standard, but Michigan has not done so. We noted Michigan’s move from common law “actual malice” to the New York Times standard in Schultz v. Newsweek:
The privilege of fair comment is not absolute, but may be lost by abuse. It is lost if the utterance or publication is made with actual malice. Lawrence v. Fox, supra, 357 Mich, at 141, 97 N.W.2d 719. Though “actual malice” was equated with bad faith, ill will and personal hostility at one time, more recent Michigan decisions have indicated clearly that the definition of New York Times has been adopted. Compare Lawrence v. Fox, supra, 357 Mich, at 141, 97 N.W.2d 719 with Arber v. Stahlin, 382 Mich. 300, 308, 170 N.W.2d 45 (1969), cert, denied, 397 U.S. 924, 90 S.Ct. 927, 25 L.Ed.2d 103 (1970), and Peisner v. Detroit Free Press, 104 Mich.App. 59, 64, 304 N.W.2d 814 (1981). Thus the district court properly based its decision only on evidence which would support a claim that the defendants acted with knowledge that the statements objected to were false or with reckless disregard of whether they were false or not.
668 F.2d at 918. To suggest at this late date that the Michigan Supreme Court would revert to the Lawrence standard— enunciated before New York Times v. Sullivan — ignores not only Schultz but also Michigan appellate decisions.
The dissent fails to explain why we should ignore the forthright announcement of the Michigan Court of Appeals in recent decisions that
since federal decisions like New York Times v. Sullivan, supra, and its progeny, Michigan now follows what is referred to as the New York Times stan*1016dard of actual malice, that is, publication with knowledge of falsity or in reckless disregard of whether it was false or not.
Lins v. Evening News Ass’n, 129 Mich. App. 419, 434, 342 N.W.2d 573 (1983). See Gaynes v. Allen, 128 Mich.App. 42, 47, 339 N.W.2d 678, 680 (1983); Peisner v. Detroit Free Press, Inc., 104 Mich.App. 59, 64, 304 N.W.2d 814 (1981); Wynn v. Cole, 91 Mich. App. 517, 523, 284 N.W.2d 144 (1979). Cf. Arber v. Stahlin, 382 Mich. 300, 170 N.W.2d 45 (1969). As the dissent itself points out, this court is bound to follow considered pronouncements of state law by state appellate courts absent indication from the state’s highest court that a contrary rule would be adopted.
The dissent argues for a rule which would so chill the activities of news dispensers as to render them toothless tigers. Rummel was reporting that day’s news on January 21, 1979. He made several attempts to contact Bichler, without success, and then actually drove to the theater to find out for himself if it had closed, as reported by Moore. He found a dark theater. When Kowalczyk went to the studio shortly before air time he did not deny the truth of the report of the theater’s closing. All he did was to ask Rummel not to run the story as a personal favor to him.
The financial problems of both Bichler and the theater (and of Kowalczyk) already existed when Rummel came on the scene. Contrary to the dissent’s version, these problems were not created by the broadcast. Kowalczyk had a large investment in the theater which he was in danger of losing. The dissent would apparently favor a rule that a reporter who obtained all the verification available must nevertheless kill a story of general public interest believed to be true in order to protect the investment of an acquaintance. Kowalc-zyk gave no real reason; his vague reference to Moore’s alleged unreliability and his unsubstantiated belief that Bichler could clear things up did not require Rum-mel to withhold the story.
The dissent would also apparently require the media to “unscramble the egg” in each story, separating out all that might be personally embarrassing to anyone involved. The matter of Bichler’s personal finances was so intertwined with the story of the theater’s problems that the two were inseparable. To require such a parsing of information would be absurd. A story must be presented, as nearly as possible, in its entirety so the reader or listener receives it as an intelligible whole rather than as fragments.
The dissent implies that Bichler called Rummel between the two broadcasts and attempted to stop the second one. This is completely unsupported by the record. The reference to his call is so vague that it could not be treated by the district or this court as having established excessive publication, as argued by the dissent.
Michigan has struck a balance between the public’s right to be informed on matters of general interest and each individual’s right of privacy. In doing so Michigan determined that a media defendant shall be held liable only upon a showing of publication with actual knowledge of falsity or in reckless disregard of the truth or falsity of matters published. The dissent would alter that balance by lowering the threshold which a private plaintiff must cross in order to recover. This court may not change the balance which the State has adopted.
The judgment of the district court is affirmed.

. The transcript of the broadcast does not contain any reference to "cooked chicken.” In the absence of affidavits or other evidence, I am satisfied it was not included in the WZZM broadcast.