Articles Posted in Defamation, Libel and Slander

While the internal documents Elon Musk dumped onto Twitter turned out not to have been the smoking gun on Hunter Biden that Republicans had been hoping for, it did contain some information on Representative Adam Schiff that might lead to legal action.

According to the documents, Schiff lobbied Twitter to get a journalist, Paul Sperry, banned from the social media site back in the fall of 2020 during the first impeachment of President Trump. Sperry is a senior reporter for RealClearInvestigations.com and a columnist for the New York Post. He told Fox News that he was targeted by Schiff for reporting on sources Democrats were relying on during the impeachment trial. Continue reading ›

An Illinois appellate court recently held that a former employee could not maintain his defamation claims against his former employer concerning statements about him allegedly made by certain executives and high-ranking employees of his former employer. The court found that the allegedly defamatory statements were protected by qualified privilege which the plaintiff had not presented evidence sufficient to overcome.

Plaintiff Michael Briggs was employed by SMG Food & Beverage, a company that provided food and catering service at McCormick Place. Briggs was employed by SMG as a banquet captain, and his duties entailed access to various parts of McCormick Place. He was still employed by SMG when he filed his claims against SMG.

Plaintiff alleged that on or about August 22, 2015, there was a meeting between management and union representatives during which Shaun Beard, a senior vice president of SMG managing its McCormick Place operations, allegedly stated, “We have to move the meeting because [plaintiff] is threatening the building because he is a terrorist.” Briggs also alleged that an SMG executive and SMG’s HR director allegedly repeated Beard’s remark and stated that plaintiff’s security pass for McCormick Place access “needed to be revoked.”

On November 15, 2018, Briggs filed his action alleging that defendants defamed him at the August 2015 meeting. The complaint alleged that the statement and the repetition of it were factually false and made knowing the statement was false or with reckless disregard for the truth. Briggs further alleged that the statements were defamatory per se as they accused him of being a criminal who would engage in criminal activity and impaired his “legitimacy as an employee of” SMG and his performance of his employment duties at McCormick Place.

Defendants filed a motion to dismiss the complaint as untimely, as it was filed in 2018 but alleged defamatory statements made in 2015. Briggs responded that his complaint was timely under the discovery rule as he could not have discovered the defamatory statements because they were made with the intent that they be kept confidential to prevent him from discovering them. He therefore argued that he did not learn of the statements until someone present at the meeting disclosed it to him in November 2017 and he did not learn of the repetition of the statements until March 2018. The trial court initially granted the defendants’ motion but the dismissal was reversed and remanded on appeal.

On remand, the defendants filed a motion for summary judgment where they argued that the complaint was untimely and that the alleged statement that plaintiff was a “terrorist” was non-actionable opinion. Additionally, they argued that qualified privilege protected the allegedly defamatory statements because they made them in their capacity as the plaintiff’s employer and this privilege could be overcome only if it was abused. The trial court granted defendants’ motion for summary judgment, finding that the plaintiff “failed to establish a genuine issue of material fact as to whether defendants’ alleged defamatory statements are protected by qualified privilege.” The trial court did not determine whether Beard’s alleged remark was opinion, finding it would be subject to qualified privilege even if it was defamatory. The plaintiff again appealed dismissal of his claims.

 

On appeal, the plaintiff argued that the trial court erred in granting summary judgment for defendants because there was a genuine issue of material fact as to whether their claimed qualified privilege was abused. The Court began its analysis by explaining that a defamatory statement is not actionable if the defendant can show it is (1) reasonably capable of an innocent construction, (2) an expression of opinion, or (3) subject to a privilege. The Court went on to explain that qualified privilege exists where a statement that may otherwise be considered defamatory is protected due to the circumstances or occasion of its making. “This privilege is based on the policy of protecting honest communications of misinformation in certain favored circumstances in order to facilitate the availability of correct information,” the Court noted. Under Illinois law, the Court noted that qualified privileges exist when an interest is “held by the person publishing the statement, the person to whom the matter is published, some other third person, or the public.”

While the general rule is a defamation plaintiff need only show that the defendant was negligent in making the allegedly defamatory statement, when a qualified privilege exists, the Court explained that a plaintiff must show the defendant abused the privilege, for instance by making the statements with actual malice. The Court agreed that Briggs failed to establish a genuine issue of material fact as to whether qualified privilege was abused. Continue reading ›

Every business owner knows the importance of online reviews. You might love them or hate them, but there’s no denying that they have a very real effect on your business. One of the first things people look at when investigating a business online is the number and rating of the reviews the business has received.

Managing online reviews can be tricky for any business owner, but navigating businesses that seem legitimate when they’re really posting their own positive reviews is an equally treacherous minefield for customers. Continue reading ›

The First District Illinois Appellate Court recently overturned a Cook County Circuit Court’s dismissal of a company’s defamation suit against a competitor. In its ruling, the Court held that a Chicago shipping company can claim it was defamed by emails sent to its management disparaging the company. Having cleared the hurdle of establishing a viable claim, the plaintiff company will now need to establish that it suffered reputational damage.

The allegations in this defamation suit stem from a series of anonymous emails sent in May 2019 to various board members and at least one executive of the plaintiff, project44, Inc. The complaint alleges that these emails purported to warn the project44 board members and executive of accounting fraud at project44 and connections to Chicago organized crime. Project44 allegedly was able to trace the email messages to computers used by a competitor, FourKites. Following receipt of the emails and its investigation into their source, project44 filed a commercial defamation suit against FourKites and several unknown FourKites employees.

In response, FourKites sought dismissal of the suit arguing that project44 could not sustain a defamation claim because project44 could not establish that the allegedly defamatory statements were published to any third parties. FourKites argued that no publication occurred because the emails were essentially sent to project44 itself and not to a third party. The trial court agreed with FourKites and dismissed the suit. Continue reading ›

An Illinois appeals court recently found a political candidate in Madison County could not be held liable for defamation for statements in a press release finding that the allegedly defamatory statements were privileged and thus immune from liability. Former Madison County IT director, Rob Dorman and former administrator Doug Hulme filed the lawsuit claiming that the press release statements were false and defamatory and ultimately cost them their jobs.

In April 2020, Robert Daiber, the Democrat candidate for county board chairman was identified as one of several local Democratic politicians calling for the dismissal of top officials in Madison county board chairman Kurt Prenzler’s administration. In the press release Daiber was quoted as saying “[a] criminal investigation by six law enforcement agencies has made it clear how extensive corruption and abuses of power are in the Prenzler administration. Madison County must act now to restore public trust by immediately dismissing the Prenzler aides who have committed these truly shocking actions.”

The press release also cited affidavits released from the investigation as providing “conclusive evidence that top aides . . . attempted a pay-for-play scheme by offering a county job to a congressional staff person in exchange for the appointment to a U.S. Attorney position of their political accomplice” and “a scheme to hack into and spy on e-mails of the Madison County judiciary and the offices of elected county officials (neither of which are under the jurisdiction of the County Chairman or County Board) for political purposes.”

Days after the publication of the press release Dorman and Hulme were fired from their positions with the county. Dorman filed suit against Daiber several months later and Hulme joined as a plaintiff shortly thereafter. In their complaint, the plaintiffs allege that the statements in the press release were false and defamatory and that they had been exonerated from any wrongdoing at the conclusion of the investigation and a subsequent probe by the Attorney General. Despite being exonerated, the plaintiffs alleged that the statements in the press release had caused them to lose their jobs. Continue reading ›

The Seventh Circuit federal appeals court recently determined that a Wisconsin newspaper did not commit defamation when it published a 2018 story concerning a local financial adviser. In affirming the district court’s finding in favor of the newspaper, the Seventh Circuit found that the allegedly defamatory article was largely accurate and protected under what is known under Wisconsin law as the judicial-action privilege, which protect publishers who report on court activity.

In August 2018, the Wausa Daily Herald published an article by reporter Sam Wisneski titled Wisconsin financial advisor accused of violating a dead man’s trust, mishandling $3 million. In the article Wisneski chronicled the allegedly bad-faith handling of the $3 million trust of deceased Wisconsin man Joe Geisler by his financial advisor, Thomas Batterman.

The story recounted the life of Geisler who, upon his death at the age of 88, left his more than $3 million estate to charity with detailed instructions to divide the money equally among four specific charities: the Superior Diocese of the Catholic Church, Bruce High School in northwestern Wisconsin, the Alzheimer’s Association and the American Cancer Society for local events.

A local wealth management firm, Vigil Asset Management, which was operated by Batterman, was made trustee and tasked with administrating the trust holding Geisler’s money. Batterman administered the trust but nearly a year after Geisler died, Batterman had allegedly only distributed $80,000 of the trust’s assets. This led the American Cancer Society to file suit in a Wisconsin state court to seek the removal of Vigil and Batterman as administrator of the trust.

The article detailed the judicial proceedings of the suit against Batterman and recounted the state court’s ultimate decision to remove Batterman and install a successor trustee, who disbursed the trust’s assets immediately. The article also mentioned how the court in that suit concluded that Batterman violated his fiduciary duties owed to the trust. The article went on to recount that the court ordered Batterman to pay the beneficiaries’ litigation expenses because his conduct “amounted to something of bad faith, fraud or deliberate dishonesty.”

Batterman initially demanded that the Daily Herald retract the article. Instead, the newspaper updated the article the following month by including a new paragraph clarifying that “[a]lthough a judge later found that Batterman had not committed fraud, theft or embezzlement, he ruled that the financial adviser had engaged in multiple acts of ‘bad faith’ and ordered him to be removed from handling the Geisler trust and to pay part of the charities’ legal fees.” The updated article also added the modifier “criminal” before the noun “wrongdoing” so that the sentence read: “Neither Batterman nor Richards has been charged with any criminal wrongdoing in the Geisler case.”

In October 2019, Batterman sued the Daily Herald alleging that the 2018 article was defamatory. The paper moved to dismiss the complaint for failure to state a claim. The District Court judge dismissed the majority of the case after finding that the article was substantially true and would not imply any new criminal misconduct on Batterman’s part to an ordinary reader. The paper then moved for summary judgment on the surviving claim of defamation that had not been dismissed. The District Court granted summary judgment finding that the paper had established that the article’s portrayal of Batterman as a bad faith financial actor was true, and, thus, by definition could not be defamatory. Batterman appealed. Continue reading ›

An Illinois Appellate Court recently affirmed a ruling dismissing the defamation claims filed by a manager of a homeowners association stemming from comments made about him during a meeting of the HOA. The Court ruled that the manager could not maintain his claims because the allegedly defamatory comments were protected from liability by qualified privilege.

The plaintiff in the case, Philip Kiss, managed the HOA from 2010 to 2016 and also served as its attorney during this time. The board relieved Kiss of his duties in 2016. In November 2017, one of the board members, Ellen Sheldon, stated during a meeting of the HOA, “I don’t want a person who comes to a homeowners meeting drunk managing our … association and he came drunk in 2015.” In response to a question asking how she knew Kiss was drunk, Sheldon said, “because he stood right at my face and he breathed at my face which was unbelievable[.] I wanted to pass out. And he could not speak clearly. [T]he man did not belong managing us[.] [T]hank God he’s not anymore.”

Kiss sued both the HOA and Sheldon alleging defamation and false light invasion of privacy. The defendants moved to dismiss the complaint arguing, in part, that the statements were protected by qualified privilege because they were made during a board meeting of the HOA. After several amendments to Kiss’s complaint, defendants again sought to dismiss the claims based on qualified privilege. The trial court granted the defendants’ motion and dismissed the claims with prejudice. Kiss appealed arguing that the trial court improperly dismissed his claims and refused to allow him to re-plead his claims for a fifth time. Continue reading ›

For nearly six weeks, many have followed the defamation trial between Johnny Depp and his former wife Amber Heard. The trial has provided potent insight into the destructive effects of drugs, alcohol, and stardom. It has also highlighted the perhaps more relatable lesson that ending a marriage can be a messy process. Emotions run high, tempers flare, and deep wounds can lead former spouses to lash out. Sometimes these outbursts result in saying things that are hurtful or even defamatory. Such is the basis of the case of Depp and Heard.

The dispute between Depp and Heard stems from a December 2018 opinion column by Heard printed in The Washington Post. In the column, Heard described herself as a victim of domestic violence. While the column did not name Depp directly, Depp has argued that it included enough detail and time references to allow readers to deduce that she was talking about Depp, to whom she was married briefly from 2015-2016. For instance, the 2018 column stated “two years ago, I became a public figure representing domestic abuse, and I felt the full force of our culture’s wrath for women who speak out.” Readers were quick to connect the dots recalling that she had first raised allegations of abuse during her and Depp’s 2016 divorce proceedings. These allegations were also reported in a London tabloid that Depp sued unsuccessfully in 2020 for labeling him a “wife-beater.”

Depp responded to the op-ed by suing Heard for $50 million. She responded by countersuing Depp for $100 million in damages. The seven-person jury in the case is considering Heard’s countersuit alongside Depp’s original claim.

One lesson about defamation law can be learned from considering where the suit was filed. Depp filed suit in the in Fairfax County Circuit Court in Virginia, though neither he nor Heard live or work in Virginia. Both reside, at least part time in California, but neither chose to file their claims in a California court. Why? There are at least two reasons. Continue reading ›

We previously wrote about Chicago Bears legend Richard Dent’s lawsuit seeking the identities of individuals who he alleges defamed him and cost him and his company to lose a lucrative contract. Dent initially lost at the trial court level but won in the appellate court. The Illinois Supreme Court then agreed to consider the case.  In its recent opinion, the Court ruled against Dent finding that he is not entitled to discovery to determine the names of people that he claims wrongly accused him of sexual harassment and drunken behavior in the course of an investigation, which ultimately cost him and his company a lucrative marketing contract with an energy supplier.

Justice Michael J. Burke wrote the majority opinion, which was joined by everyone but Justices Rita Garman, P. Scott Neville, and Anne Burke, who took no part in the decision. Justice Garman penned a dissenting opinion which was joined by Justice Neville.

As we previously wrote about, the case revolves around the March 2019 Rule 224 petition filed in the Cook County Circuit Court by Dent and his company, RLD Resources, seeking discovery related to the identity of certain individuals the petitioners claimed defamed Dent. In their petition, the petitioners asked the judge to order energy supplier Constellation to disclose the names and addresses of at least three individuals who allegedly defamed Dent. Continue reading ›

People who want to be entrepreneurs are often told to find a problem in the world that they can solve, then build their business (and their marketing efforts) around solving that problem for their customers. That’s exactly what Melissa Nelson and Jeremy O’Sullivan thought they were doing for McDonald’s and its customers before McDonald’s started telling its franchisees that the technology Nelson and O’Sullivan had created could lead to worker injuries.

The problem Nelson and O’Sullivan sought to solve is the prevalence of ice cream machines at McDonald’s constantly breaking down. It’s such a common occurrence that it has inspired memes (and even some conspiracy theories) that pop up all over the internet. You’d think McDonald’s would be eager for a solution to the problem, but Nelson and O’Sullivan were surprised to find that was not the case.

The two would-be problem solvers met as freshmen at Bucknell University in 2005 and started a business together, FroBot, in 2011. FroBot sold frozen desserts from automated soft-serve machines made by the same company that supplies McDonald’s ice cream machines, Taylor Company. The only problem was the machines kept breaking down and the only way to get them up and running again was to call one of the company’s technicians. But according to Nelson, the technicians were more likely to blame a lack of electrical power, if they found any problem at all. Continue reading ›

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