600 West 115th Street Corp. v. Von Gutfeld

603 N.E.2d 930, 80 N.Y.2d 130, 589 N.Y.S.2d 825, 21 Media L. Rep. (BNA) 1811, 1992 N.Y. LEXIS 3424
CourtNew York Court of Appeals
DecidedOctober 20, 1992
StatusPublished
Cited by150 cases

This text of 603 N.E.2d 930 (600 West 115th Street Corp. v. Von Gutfeld) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
600 West 115th Street Corp. v. Von Gutfeld, 603 N.E.2d 930, 80 N.Y.2d 130, 589 N.Y.S.2d 825, 21 Media L. Rep. (BNA) 1811, 1992 N.Y. LEXIS 3424 (N.Y. 1992).

Opinion

OPINION OF THE COURT

Simons, J.

Plaintiff seeks to recover damages for allegedly defamatory statements made by defendant in opposition to plaintiff’s application for a building permit during a public hearing conducted by a New York City Community Board. Defendant contends that his statements were absolutely privileged under the common law and that they were protected speech under the State and Federal Constitutions. We conclude the statements were constitutionally protected and therefore reverse the order of the Appellate Division and grant defendant’s motion for summary judgment dismissing the complaint.

I

The events giving rise to this litigation occurred in the fall of 1988 during a public hearing. Defendant, Robert Von Gutfeld, was one of several persons who spoke in opposition to a proposal by the plaintiff corporation to create a sidewalk cafe adjacent to its restaurant in Manhattan. The restaurant [134]*134had opened the year before on the ground floor of an apartment building where Von Gutfeld had resided for more than 30 years. At the time the proposal was put forward, plaintiff was leasing its space from Excelsior Associates, owner of one of the building’s four ground-floor commercial condominium units, which, together with the cooperative residential units in the upper floors, comprised a condominium governed by a Board of Managers.

In the months leading up to the public hearing, plaintiff had begun the process of seeking City permission to create its sidewalk cafe. The City Department of Consumer Affairs initially rejected the application because plaintiff had failed to get the approval of the building’s Board of Managers. Subsequently, plaintiff submitted to the Department an affidavit of consent from Excelsior, its landlord. In response, and apparently confused by the document before it, the Department informed the Board of Managers it was proceeding on the application because it had what appeared to be a valid consent. Months later, the Department discovered its error and reversed itself, but it was during this period of confusion about the City’s position that Community Board No. 9, pursuant to the City Charter, held a public hearing on plaintiff’s proposal.

Von Gutfeld had served as president of the condominium’s Board of Managers from March 1985 to June 1988, and at the time of the hearing in October 1988 he was a member of the Board’s Building Committee. During his time as president, he had complained about a number of problems with the restaurant, including smells in the building and parking problems caused by restaurant employees. When he arrived at the hearing, Von Gutfeld filled out a registration statement, indicating that he wished to speak against the sidewalk cafe and stating his belief that the "permit [from Consumer Affairs] is * * * fraudulent.” After plaintiff’s representatives and one neighbor spoke in favor of the project, several persons, including Von Gutfeld, were recognized and stated their objections. The parties now disagree about the transcription of some parts of a tape recording of the hearing, but both sides acknowledge that Von Gutfeld once more raised the problems with smells and parking congestion and complained that the restaurant "denigrated” the building. He went on to say:

"Why do they want to do it? Because they have an illegal lease with Coronet [plaintiff’s prior landlord] that said they could take the sidewalk.”
[135]*135"Therefore this entire lease and proposition [the word found in plaintiff’s transcript]/composition [the word found in defendant’s transcript] is as fraudulent as you can get and it smells of bribery and corruption.”

He then concluded, "No such permission [from the Board of Managers] has ever been granted and we sure as hell are not going to grant it now,” and then he hit the table with his hand. The audience applauded.

Following the meeting, the Community Board voted against plaintiff’s application. Later, in March 1989, the Department of Consumer Affairs ceased processing the application for the sidewalk cafe when it discovered its error and learned that the Board of Managers had not consented.

Plaintiff subsequently commenced this defamation action alleging that three of Von Gutfeld’s statements were defamatory: his reference to the denigration of the building, his statement about the illegal lease, and his comments about fraud and the smell of bribery and corruption. Von Gutfeld moved for summary judgment, arguing that the statements were absolutely privileged and that as a matter of constitutional law, both State and Federal, the statements identified as defamatory made no factual assertions and were therefore not actionable. Supreme Court denied the motion, finding no absolute privilege and holding that "[i]t cannot be said as a matter of law that the average recipient of these statements would not interpret them as meaning that plaintiff had actually bribed, corrupted or fraudulently obtained the license or permit.” A divided Appellate Division affirmed.

II

Defendant contends first that his comments are protected under the common law by an absolute privilege extended to those participating in judicial, legislative or executive proceedings. Our cases have made clear, however, that absolute privilege is based upon the personal position or status of the speaker and is limited to the speaker’s official participation in the processes of government (Park Knoll Assocs. v Schmidt, 59 NY2d 205, 209; Toker v Poliak, 44 NY2d 211, 219; Andrews v Gardiner, 224 NY 440, 446-447; Restatement [Second] of Torts, ch 25, tit B, Introductory Note to § 585 et seq., at 242-244). An absolute privilege is available only to those who in speaking are discharging a public function arising from the [136]*136duties of their office (Park Knoll Assocs. v Schmidt, supra, at 209-210). Von Gutfeld, unlike the members of the Community Board, had no office at the hearing, and no absolute privilege attached to his remarks. As a speaker at the public hearing, he may have enjoyed a qualified privilege protecting him from liability in the absence of malice (see generally, Loughry v Lincoln First Bank, 67 NY2d 369, 376; Restatement [Second] of Torts § 598), as the courts below found, but he has not raised that issue before this Court.

Ill

Defendant next contends that his statements were constitutionally protected opinion under both the Federal and State Constitutions. His argument is undifferentiated although, as Immuno AG. v Moor-Jankowski (77 NY2d 235) made clear, this Court perceives the protection afforded by the First Amendment of the United States Constitution and that afforded by article I, § 8 of the New York Constitution to be quite different. Our analysis of defendant’s claims under the two documents, therefore, is made separately following an examination of the governing concerns in this area. As in Immuno, we analyze first the Federal provision, resolving the issue according to our understanding of the holding in Milkovich v Lorain Journal Co. (497 US 1), and then examine defendant’s rights under the State Constitution. Our determination that the order must be reversed rests on our conclusion that defendant’s statements cannot be construed to allege facts under either analysis (see, Michigan v Long, 463 US 1032).

A

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Bluebook (online)
603 N.E.2d 930, 80 N.Y.2d 130, 589 N.Y.S.2d 825, 21 Media L. Rep. (BNA) 1811, 1992 N.Y. LEXIS 3424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/600-west-115th-street-corp-v-von-gutfeld-ny-1992.