LOKEN, Circuit Judge.
In August 2011, the Better Business Bureau of Greater St. Louis ("the BBB") published a news release ("the Release") expressing concern about Others First, Inc. ("Others First"), a Michigan-based charity that had recently begun soliciting vehicle donations in the St. Louis area. A copy of the Release is attached as Appendix A to this opinion. In June 2014, Others First filed this diversity action in the Eastern District of Missouri, asserting tort claims for injurious falsehood, based on alleged falsehoods contained in the Release, and for interference with business expectancy, based on allegations that the BBB published the Release to direct car donations to a competing BBB member, took actions to keep the Release on the first page of Google search results for the search term "Others First," and induced a Kansas City television station to run a story in November 2014 based on the Release.
The BBB filed motions to dismiss and for summary judgment. The district court
Others First's principal argument on appeal is that the district court erred in concluding that the tortious interference claim necessarily fails because the Release contained no actionable injurious falsehood. Under Missouri law, "[t]ortious interference with a contract or business expectancy requires proof of: (1) a contract or valid business expectancy; (2) defendant's knowledge of the contract or relationship; (3) a breach induced or caused by defendant's intentional interference; (4) absence of justification; and (5) damages."
"[W]here a tortious interference claim is based upon an alleged defamation,
Others First argues that it submitted sufficient evidence of three independently wrongful acts: the BBB (1) published the Release "to help a BBB member... obtain an unfair and illegal competitive advantage over Others First"; (2) republished the Release to keep it at the top of Google search engine results; and (3) induced or assisted a Kansas City television station to run the November 2014 story based on the Release. Assuming without deciding that sufficient evidence supporting these allegations of wrongful motive and actions would defeat a defamation defendant's motion for summary judgment, the record contains no evidence supporting these allegations, other than their assertion in the First Amended Complaint, and declarations by an officer and a contracting agent stating that the assertions are what Others First believes to be true. "Mere opinion fails to raise any issue of material fact that precludes summary judgment."
Under Missouri law, although defamation and injurious falsehood are distinct torts, for a statement to be actionable as injurious falsehood it must be defamatory.
If a statement is true, it is not defamatory as a matter of law.
Others First failed to plead alleged defamatory statements with the particularity required by Missouri law. However, the district court denied the BBB's motion to dismiss because Others First's response in opposition to summary judgment alleged that eight specific statements in the Release were defamatory as a matter of law. Like the district court, we will limit our analysis to those eight statements.
1. "BBB Urges Caution On Others First Car Donation Programs." Others First solicits car donations nationwide, operating under various names including Cars Helping Veterans, Cars Fighting Cancer, and Mikie's Minutes. The BBB began investigating Others First in March 2011 when it began soliciting car donations in the St. Louis area under the name Cars Helping Veterans. The Release suggested caution because of possible ties between Others First and Rick Frazier, who was the subject of prior complaints for his work with vehicle donation programs in other States. Urging caution was an expression of the BBB's opinion because it was "a subjective assessment and not an objectively verifiable fact."
2. "The BBB advises caution when dealing with Rick Frazier and the charity Others First. Others First is a two-year-old nonprofit that raises money for causes, such as disabled and homeless veterans, cancer research, children and animals. In recent months, Others First has mailed solicitations to St. Louis area consumers on behalf of an affiliated charity, Cars Helping Veterans." Like statement 1, this statement urging caution was a protected opinion. The facts set forth are undisputed.
3. "A national charity that is seeking car donations in the St. Louis area has ties to a Detroit area businessman who has been criticized for alleged improprieties in running similar programs, the [BBB] warns." In support of its motion for summary judgment, the BBB submitted a December 1998 article from the Detroit Free Press stating that Charity Motors, "the largest of metro Detroit's used-car donation programs," gave less than 40% of its money to charity last year and paid its "founder," Rick Frazier, "a huge sum ... drawing sharp criticism from [the] Michigan Attorney General"; and that Frazier had previously been sued by Mother Waddles Perpetual Mission for allegedly withholding money he earned by
Others First argues that it had no "ties" to Frazier because Frazier was not the founder of Others First. Considering the statement in context and giving the words their ordinary meaning, a reader would construe "ties" more broadly than Others First. Frazier's undisputed "tie" to Others First was a contract to run its vehicle donation program for a percentage of the profits. It was also true that Frazier was "criticized for alleged improprieties" in the Detroit Free Press article and the Foundation countersuit. Thus, stripped of pleaded innuendo, statement 3 was factual and not defamatory.
4. "Michelle L. Corey, BBB President and CEO, said the BBB is concerned about Frazier's controversial history with other charitable vehicle donation programs. `Mr. Frazier's past problems are reason to be cautious about his newest venture,' she said." This statement was Corey's opinion, another expression of caution like the protected opinion in statements 1 and 2. There was nothing in Corey's opinion to suggest an implicit defamatory fact. The Release provided the context for her opinion, including details of Frazier's "controversial history." Others First argues the phrase "newest venture" falsely implied that Frazier founded Others First. But the plain meaning of "newest venture" is not so limited. Frazier unquestionably joined in a business venture with Others First by agreeing to manage its vehicle donation program. The statement was not defamatory as a matter of law.
5. "Corey also said it appears that a former associate of Frazier, and perhaps even Frazier himself, may have potential conflicts of interest over their involvement in the Others First donation program." Alleging a conflict of interest is not defamatory unless it implies undisclosed defamatory facts.
6. "Frazier is described in the media and on the website of an Others First charity as the charity's founder, although he denies that role. Banks is the previous treasurer of Others First." This statement is non-actionable as a matter of law because it was true, whether or not Frazier was in fact Other First's founder. The BBB included Other First's response in the Release: "Kennedy ... said in a letter to the BBB that Frazier has never been a board member or officer of Others First and any reference to him as founder is `unauthorized and misguided.'"
7. "Frazier's problems in the charity arena have been the subject of news reports. The Detroit Free Press reported in 1998 that the Mother Waddles Perpetual Mission charity in Detroit accused Frazier of several improprieties in that donation program. The newspaper also raised questions about Frazier's involvement with the Charity Motors donation program in Detroit."
8. "Last year, the Virginia-based Military Order of the Purple Heart Foundation alleged in a court suit that an audit found widespread problems with Frazier's role in that program, including self-dealing, illegal practices and destruction of incriminating records." Others First does not contest the fact that the Detroit Free Press wrote articles critical of Frazier and that the Foundation made allegations in a countersuit. The Release noted that "Frazier denied the claims." These statements were non-defamatory because the facts stated were true.
Others First argues that "[n]o materials are provided to the reader to assess the veracity" of the statements in the Release. However, there is no requirement that readers be provided source materials for non-defamatory speech to be protected.
The judgment of the district court is affirmed.
The BBB advises caution when dealing with
In recent months, Others First has mailed solicitations to St. Louis area consumers on behalf of an affiliated charity,
Michelle L. Corey, BBB President and CEO, said the BBB is concerned about Frazier's controversial history with other charitable vehicle donation programs. "Mr. Frazier's past problems are reason to be cautious about his newest venture," she said.
Corey also said it appears that a former associate of Frazier, and perhaps even Frazier himself, may have potential conflicts of interest over their involvement in the Others First donation program.
Frazier and former coworker Maurice E. Banks recently signed potentially lucrative contracts to run vehicle donation programs for the charity. Frazier is described in the media and on the website of an Others First charity as the charity's founder, although he denies that role. Banks is the previous treasurer of Others First.
Frazier's
Frazier's problems in the charity arena have been the subject of news reports. The Detroit Free Press reported in 1998 that the Mother Waddles Perpetual Mission charityin Detroit accused Frazier of several improprieties in that donation program. The newspaper also raised questions about Frazier's involvement with the Charity Motors donation program in Detroit.
Last year, the Virginia-based Military Order of the Purple Heart Foundation alleged in a court suit that an audit found widespread problems with Frazier's role in that program, including self-dealing, illegal practices and destruction of incriminating records. Frazier denied the claims.
About two years ago, Frazier began operating a car donation program for Vietnam Veterans of America in about a dozen states. That organization has said it is satisfied with the program.
Records on file with Michigan show that Others First was registered as a nonprofit in September 2009. The incorporator was listed as David S. Kennedy of West Bloomfield, Mich.
In the months that followed its incorporation, Others First registered several assumed names, including:
Others First is registered to do business in at least eight states — Missouri, Illinois, New York, North Carolina, Washington, Colorado, Arizona and Utah — although its various websites say it accepts donations from all 50 states.
The BBB could not determine how much Others First has raised through its vehicle donation program or how much Frazier and Banks have received for running the program. But financial information made public by the Military Order of the Purple Heart http//www.bbb.org/us/article-urges-caution-on-others-first-car-donation-programs-28610 ½
Foundation two months ago shows that foundation made $15.9 million from its car donation program in the 11 months ending June 30, 2010, with most of that coming from five states.
Frazier and Banks did not respond to a BBB request for interviews. Kennedy, president of Others First, said in a letter to the BBB that Frazier has never been a board member or officer of Others First and any reference to him as founder is "unauthorized and misguided." He added that because Banks resigned from the Others First board before signing contracts with the charity, "there never was a conflict of interest."
The BBB has these tips to consumers considering donating a vehicle to charity.