Sue L. Robinson, United States District Judge.
On June 2, 2011, Keiko Ono Aoki ("Aoki") and Benihana of Tokyo, Inc. ("BOT," collectively "plaintiffs") filed a complaint against Benihana, Inc. ("BI" or "defendant") for defamation and injurious falsehood. (D.I. 1) Plaintiffs filed an amended complaint on July 11, 2011. (D.I. 9) BI moved to dismiss both counts pursuant to Federal Rule of Civil Procedure 12(b)(6) and to strike plaintiffs' prayer for relief, allegations and exhibits. (D.I. 16, 18)
On March 15, 2012, the court issued a memorandum opinion denying defendant's motion to strike, denying defendant's motion to dismiss as to the defamation count and granting defendant's motion to dismiss as to the injurious falsehood count. (D.I. 25) On December 17, 2012, defendant filed an answer to the amended complaint. (D.I. 14)
A scheduling order was entered on January 10, 2013, setting deadlines for discovery,
Rocky Aoki, the founder of the original Benihana restaurant and of plaintiff BOT, passed away on July 10, 2008. His wife, at the time, was plaintiff Aoki. By virtue of her powers as sole executor of Rocky Aoki's estate and sole trustee of the testamentary trust created in Rocky Aoki's will, plaintiff Aoki was elected Chief Executive Officer of BOT. BOT is the owner of a substantial shareholder interest in the common voting stock of defendant.
On December 3, 2010, BOT initiated a lawsuit against BI and Noodle Time, Inc.
On May 17, 2011, BI, Noodle Time and Benihana National Corporation
(Id. at ¶¶ 27-30, ¶ 43)
Through its publicist, Kekst and Company, and in concert with PR Newswire Association LLC and Comtex News Network, Inc., BI issued a press release ("press release") announcing the Florida litigation. The dateline of the press release read "MIAMI, May 18, 2011 /PRNewswire via COMTEX/-." In relevant part, the press release stated:
(D.I. 52, ex. 1 at 3) On June 2, 2011, plaintiffs filed the action at bar. (D.I. 1)
"The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). The moving party bears the burden of demonstrating the absence of a genuine issue of material fact. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 n. 10, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). A party asserting that a fact cannot be—or, alternatively, is—genuinely disputed must demonstrate such, either by
To defeat a motion for summary judgment, the non-moving party must "do more than simply show that there is some metaphysical doubt as to the material facts." Matsushita, 475 U.S. at 586-87, 106 S.Ct. 1348; see also Podobnik v. U.S. Postal Serv., 409 F.3d 584, 594 (3d Cir. 2005) (stating party opposing summary judgment "must present more than just bare assertions, conclusory allegations or suspicions to show the existence of a genuine issue") (internal quotation marks omitted). Although the "mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment," a factual dispute is genuine where "the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). "If the evidence is merely colorable, or is not significantly probative, summary judgment may be granted." Id. at 249-50, 106 S.Ct. 2505 (internal citations omitted); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (stating entry of summary judgment is mandated "against a party who fails to make a showing sufficient to establish the existence of an element essential to that party's case, and on which that party will bear the burden of proof at trial").
Under New York law, defamation is "the making of a false statement which tends to expose the plaintiff to public contempt, ridicule, aversion or disgrace, or induce an evil opinion of him in the minds of right-thinking persons, and to deprive him of their friendly intercourse in society." Dillon v. City of New York, 261 A.D.2d 34, 38, 704 N.Y.S.2d 1 (N.Y.App.Div.1999). The elements are: (1) a false statement; (2) published without privilege or authorization to a third party; (3) constituting fault as judged by, at a minimum, a negligence standard; and (4) must either cause special harm or constitute defamation per se. Id.
In their second amended complaint, plaintiffs allege that the "press release included statements that plaintiffs engaged in unlawful conduct which was `motivated by a desire to perpetuate [Aoki's] position of control over BOT and influence over Benihana, directed BOT and Yoshimoto to engage in actions damaging to all Benihana stockholders, including BOT's other beneficiaries.'" (D.I. 9 at ¶ 24) Plaintiffs
"Whether particular words are defamatory presents a legal question to be resolved by the court in the first instance." Celle v. Filipino Reporter Enterprises, Inc., 209 F.3d 163, 177 (2d Cir. 2000) (quoting Aronson v. Wiersma, 65 N.Y.2d 592, 593, 493 N.Y.S.2d 1006, 483 N.E.2d 1138 (1985)). The New York Court of Appeals has developed the following test to determine whether a statement or publication is defamatory:
Celle v. Filipino Reporter Enterprises. Inc., 209 F.3d at 177-78 (citations omitted).
Considering this authority against the press release and Florida Complaint, the court finds that the press release accurately describes the allegations in the Florida Complaint. In the second paragraph of the press release, there are several specific instances of limiting language ("according to the Complaint" and "the Complaint details"), which demonstrate that the press release is a summary of the allegations in the Florida Complaint. Despite plaintiffs' protestations to the contrary, the veracity of the Florida Complaint is irrelevant to whether the press release accurately reflects the Florida Complaint. Further, the court finds that the absence of the words "motivated" and "perpetuate" from the Florida Complaint does not render the press release false, when evaluated in its entirety.
Defendant also asserts that summary judgment is appropriate because its statements are protected by the "fair and true report" privilege. New York law recognizes the "fair and true report" privilege which, in part, provides that "[a] civil action cannot be maintained against any person, firm or corporation, for the publication of a fair and true report of any judicial proceeding." N.Y. Civil Rights Law § 74. The purpose of Section 74 is "the protection of [the] reports of judicial proceedings which are made in the public interest." Williams v. Williams, 23 N.Y.2d 592, 599, 298 N.Y.S.2d 473, 246 N.E.2d 333 (N.Y. 1969). The privilege protects the media as well as litigants who provide a "substantially accurate description" of the pending litigation. Fishof v. Abady, 280 A.D.2d 417, 418, 720 N.Y.S.2d 505 (N.Y.App.Div. 2001).
A report is "fair and true" if "the substance of the article [is] "substantially accurate." Holy Spirit Assn. for Unification
Considering the press release under the liberal construction afforded the "fair and true report privilege," the court finds that the press release accurately describes the Florida Complaint in the ongoing judicial proceeding. The fact that the press release does not parrot the exact language used in the Florida Complaint is inconsequential.
Similarly, plaintiffs' reliance on the Williams
For all the above reasons, defendant's motion for summary judgment is granted. An order will issue.
At Wilmington this 22
1. Defendant's motion for summary judgment (D.I. 50) is granted.
2. The clerk of court is directed to enter judgment in favor of defendant and against plaintiffs.