GUIDRY, J.
A local restaurant business and its owner appeal a judgment dismissing their defamation claims against a local publishing company, its chairman, and one of its reporters pursuant to a special motion to strike under La. C.C.P. art. 971, known as Louisiana's Anti-SLAPP statute.
On May 16, 2014, an online news article written by Stephanie Riegel was published on the Baton Rouge Business Report website about a jury's verdict in a tort suit between two companies, the Little Village CWA, LLC and CDR Properties, LLC. The original article, published in May 2014, was titled "Stabiler loses legal battle over damage at former home of Little Village." The article then went on to recount that "Restaurateur Wayne Stabiler will have to pay $15,000 in damages plus attorneys fees to the owners of the downtown building at 453 Lafayette St., which previously housed one of his most popular restaurants, The Little Village." The article further recounted that "The Little Village intentionally damaged the building in the process of moving out" and that the CDR Properties' suit alleged "The Little Village used sledgehammers, saws and wrecking bars to destroy a custom-built bar made from reclaimed cypress that had been in the restaurant." The article also contained a quote from Rob Miller, a member and owner of CDR Properties, stating "The jury decided that the restaurant intentionally damaged the property and awarded damages to us because of that."
In 2015, following the online publication of the above-referenced article, counsel for the Little Village CWA, LLC contacted Louisiana Business, Inc., the company that publishes the print and online editions of the Baton Rouge Business Report, to complain about certain statements made in the May 16, 2014 article. In light of the complaint, the article was revised to identify the corporate entity, The Little Village CWA, LLC, as the owner of The Little Village Restaurant and the party cast in judgment in the lawsuit filed by CDR Properties.
In May 2015,
The trial court held a hearing on the special motion to strike on April 18, 2016. After hearing the argument of counsel, the trial court found:
In so finding, the trial court granted the special motion to strike as to the LBI defendants, dismissing the plaintiffs' defamation suit against those defendants without prejudice, and awarded attorney fees in the amount of $3,500.00. The plaintiffs, Stabiler and The Little Village CWA, have appealed the May 3, 2016 judgment signed by the trial court encompassing those rulings. The LBI defendants have answered the appeal seeking an increase in the trial court's award of attorney fees and further seeking an additional award of attorney fees and costs for work performed on appeal.
The granting of a special motion to strike presents a question of law. Appellate review of a question of law is simply a review of whether the trial court was legally correct or legally incorrect. On legal issues, the appellate court gives no special weight to the findings of the trial court, but exercises its constitutional duty to review questions of law and renders a judgment on the record.
In this appeal of the judgment granting the special motion to strike, the plaintiffs have raised two assignments of error. In their first assignment of error, the plaintiffs contend that the matter reported on by the LBI defendants was simply a private landlord-tenant dispute concerning damages, and there was nothing of public interest at issue on which to premise the special motion to strike and the award of attorney fees. We disagree.
Louisiana Code of Civil Procedure article 971 states, in pertinent part:
Louisiana Code of Civil Procedure article 971 was enacted by 1999 La. Acts, No. 734, § 1. Section 2 of the Act provides:
Hence, Article 971 was enacted by the legislature as a procedural device to be used in the early stages of litigation to screen out meritless claims brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for redress of grievances.
Pursuant to Article 971, a cause of action against a person arising from any act in furtherance of the person's right of petition or free speech under the United States or Louisiana Constitution in connection with a public issue shall be subject to a special motion to strike, unless the court determines that the plaintiff has established a probability of success on the claim. La. C.C.P. art. 971(A)(1). Under the shifting burdens of proof established by the article, the mover must first establish that the cause of action against him arises from an act by him in the exercise of his right of petition or free speech under the United States or Louisiana Constitution in connection with a public issue. If the mover satisfies this initial burden of proof, the burden then shifts to the plaintiff to demonstrate a probability of success on the claim.
To meet their initial burden on the special motion to strike, the LBI defendants asserted that the articles in dispute were statements or writings made in connection with an issue under consideration or review by a judicial body, and thus the plaintiffs' defamation suit was subject to the special motion to strike pursuant to La. C.C.P. art. 971(F)(1)(b). In opposition, the plaintiffs argue that the May 16, 2014 articles do not fall under the purview of La. C.C.P. art. 971(F)(1)(b), primarily relying on the holding of the Louisiana Fifth Circuit Court of Appeal in
In a recent, unpublished decision handed down by this Court, however, another panel expressed disagreement with the
We likewise agree with the holdings of this Court regarding the interpretation of La. C.C.P. art. 971(F)(1)(b). Therefore, we find that because the statements in the May 16, 2014 articles were in connection with a judicial proceeding, the statements at issue satisfy the LBI defendants' initial burden under Article 971, thereby shifting the burden to the plaintiffs to demonstrate a probability of success on their defamation action.
In their second assignment of error, the plaintiffs basically assert that the trial court erred in finding that they did not meet their burden of demonstrating a probability of success on their defamation action because the record shows that the statements made in the May 16, 2014 articles were made in reckless disregard of the truth sufficient to show actual malice.
The Louisiana Supreme Court has recognized that the legacy of United States Supreme Court decisions regarding defamation is that "the protections afforded by the First Amendment supercede the common law presumptions of [malice], falsity, and damages with respect to speech involving matters of public concern, at least insofar as media defendants are concerned."
Thus, in order to maintain a cause of action for defamation in a matter of public concern
The LBI defendants recognized the error in the original article that incorrectly identified Stabiler as the defendant in the CDR Properties suit and the party liable to pay the damages awarded to CDR Properties. Accordingly, they revised the article to reflect that The Little Village
After being contacted by counsel for Stabiler and The Little Village CWA, Riegel stated that the title of the original article was corrected and the body of the article was revised "to reflect the correct corporate name of the business." As to the statement by Miller contained in the article, Riegel stated "LBI refused to remove Mr. Miller's statement as it was a statement made by an individual who was present during the trial and it was made based upon his perception of the proceedings." No explanation was provided for why the other statements, regarding the building being "intentionally" damaged and the use of sledgehammers, saws, and wrecking bars, were not removed.
Initially, we observe that jurisprudence has held that where false statements were initially published based on information known at the time, but later retracted once the party became aware of the falsity, claims of defamation have not been sustained.
The question of whether a communication is capable of a particular meaning and whether that meaning is defamatory is ultimately a legal question for the court.
As previously discussed, the LBI defendants appear to rely on the fact that even if false, it cannot be shown that the information was negligently published so as to support the plaintiffs' defamation action, because, as they assert, they published the article based on the information known and available to them at the time. Even if this argument is sustainable with respect
The original and the supplemental and amending petitions from the CDR Properties' lawsuit reveal no allegations of The Little Village damaging property using any sledgehammers, saws, or wrecking bars, although in the supplemental and amending petition, it is alleged that "Defendant deliberately cut the [w]ires connected to the fire alarm system disabling same." Further, even in statements attributed to Miller, there is no mention of the use of sledgehammers, saws, or wrecking bars. As neither the petitions nor Miller appear to have asserted any claims of sledgehammers, saws, and wrecking bars being used by The Little Village, it is unclear on what authority Riegel relied to assert that such allegations were made in the lawsuit in both the original and revised articles.
Moreover, while only the petitions, rather than the entire suit record, were submitted in connection with the hearing on the motion to strike, we find this evidence was sufficient to sustain the plaintiffs' burden of establishing a probability of success on their claim of defamation. In particular, we observe that the statements from the articles that the plaintiffs highlight as being false and defaming each contain the word "allege." In civil proceedings, allegations of fact are made in pleadings.
Accordingly, we find that the plaintiffs met their burden of demonstrating a probability of success on their defamation claim as to the Little Village CWA, LLC sufficient to defeat the special motion to strike. The record shows the plaintiffs established the falsity of the published statement contained in the revised article. The record further shows the plaintiffs established that the LBI defendants published the false statement with actual malice — that is, in reckless disregard of the truth premised on their failure to verify the statements in the revised article against court records that were clearly available at the time the revised article was published. Proof of actual malice in this instance is underscored by the fact that the LBI defendants were advised by the plaintiffs of the falsity, yet they refused to correct the statement or even attempt to verify the accuracy of the statement,
For the foregoing reasons, we reverse the judgment granting the LBI defendants' special motion to strike in part and vacate the trial court's award of attorney fees to those defendants. Consequently, we remand this matter to the trial court for assessment and apportionment of reasonable attorney fees and costs against the LBI defendants
Whipple, C.J. dissents and assigns reasons.
Crain, J. concurs in part and dissents in part and assigns reasons.
Pettigrew, J. concurs in part and dissents in part and assigns reasons.
McClendon, J. concurs and assigns reasons.
WHIPPLE, C.J., dissenting.
I agree with the majority insofar as the majority concludes that the LBI defendants demonstrated that the published statements at issue in this case constitute constitutionally protected free speech. The statements are statements of opinion or interpretation of the meaning or basis of a jury's verdict as related to an earlier damage lawsuit. Thus, I agree that the contested statements were "made in connection with an issue under consideration ... by a judicial body." LSA-C.C.P. art. 971(F)(1)(b).
Moreover, in my view, the published statements are a matter of public concern. LSA-C.C.P. art. 971(F)(1)(c). The United States Supreme Court has defined matters of "public concern" very broadly,
As noted by the majority, since the LBI defendants demonstrated that the statements at issue herein constitute constitutionally protected free speech, the burden then shifted to plaintiffs to demonstrate a probability of success on their defamation claim in order to defeat the motion to strike.
Accordingly, I respectfully dissent from of the majority's determination that plaintiffs met their burden of demonstrating a probability of success on their defamation claim as to the Little Village CWA, LLC sufficient to defeat the granting of the LBI defendants' special motion to strike. Specifically, on the record before us, I am unable to find that plaintiffs demonstrated the falsity of the challenged statements.
Plaintiffs allege that they were defamed by the published newspaper article insofar as the article reported that: (1) the CDR Properties lawsuit alleged that the Little Village intentionally damaged the building; (2) the CDR Properties lawsuit alleged that the Little Village used sledgehammers, saws, and wrecking bars to destroy a bar; and (3) the jury decided that the restaurant intentionally damaged the property and awarded damages because of that.
With regard to the allegation of intentional damaging, the supplemental and amended petition filed in the underlying CDR Properties lawsuit did allege that "[d]efendant [the Little Village] deliberately cut the [w]ires connected to the fire alarm system disabling the same." While this allegation states "deliberately" and not "intentionally," I am unable to find a material difference between these two words. Thus, in my view, plaintiffs did not demonstrate the probability of the falsity of the published statement that the CDR Properties lawsuit alleged that the Little Village "intentionally damaged the building."
Moreover, while the petition(s) in the underlying CDR Properties lawsuit may not have specifically alleged that the Little Village used "sledgehammers, saws, and wrecking bars" in the damaging or destruction of the property, this does not establish the
Additionally, plaintiffs failed to prove the
Finally, I am unable to find that the plaintiffs demonstrated the probability of malice, actual or implied, by the LBI defendants in publishing the subject newspaper article, particularly given the fact that the LBI defendants later corrected the publication to reflect the actual named defendant in the CDR Properties lawsuit. In my view, the LBI defendants acted within their rights in reporting the information that was reported to them and made available at the time of the report. As succinctly stated by the LBI defendants, "[r]eporting on the results of litigation has long been one of the basic obligations of a free press." Indeed, the ability to have open and public discourse, including the expression of opinions as to the meaning, basis, and merits of a legal claim or result in a legal proceeding, is a fundamental tenet and hallmark of a democracy.
In my view, maintaining either plaintiff's defamation claim against the LBI defendants would have a crippling effect on free speech. In sum, such an approach would subject a person to damages any time that person discussed or opined on a jury's verdict or the basis of the same. This is precisely why anti-SLAPP laws were enacted.
For these reasons, I respectfully dissent.
CRAIN, J., concurs in part and dissents in part.
I concur with the majority's conclusion that the relevant published statements are constitutionally protected free speech, because they were "made in connection with an issue under consideration ... by a judicial body." La. Code Civ. Pro. art. 971(F)(1)(b). However, for the reasons assigned by Chief Judge Whipple relative to the plaintiffs' failure to meet their burden of proof under Article 971, I dissent from the remainder of the majority opinion.
PETTIGREW, J., CONCURS IN PART AND DISSENTS IN PART, AND ASSIGNS REASONS.
I concur with the majority on reversing the trial court's grant of a special motion to strike in favor of defendants as to The Little Village CWA, LLC claim. I dissent with the majority's affirmance as to the trial court's grant of the special motion to strike in favor of defendants as to Wayne Stabiler, Jr.'s claim. I am of the opinion that Stabiler's claim against defendants does not fall within the scope of La. Code of Civil Procedure art. 971.
Stabiler was not a party to the lawsuit between The Little Village CWA, LLC and CDR Properties, LLC that the defendants' online news article of May 16, 2014, was reporting on. False statement about him in said article was gratuitously added to the article, even though he was not a party. At the time of that news article on May 16, 2014, Stabiler was not a public figure and was not involved with any issue of public concern. The alleged retraction by the defendants did not occur until at least eight months after the original article, after which the damage had already been done.
I am of the opinion the facts of this case are distinguishable from the case of Michael Aloise, Jr. v. Capital Management, 2016 CA 1174. I would reverse the judgment of the trial court granting the special motion to strike of the defendants, and remand the matter for further proceedings.
McCLENDON, J., concurring.
Given that the record before us is devoid of any basis for the source of the