Aafco Heating & Air Conditioning Co. v. Northwest Publications, Inc.

321 N.E.2d 580, 162 Ind. App. 671, 1 Media L. Rep. (BNA) 1683, 1974 Ind. App. LEXIS 894
CourtIndiana Court of Appeals
DecidedDecember 30, 1974
Docket3-1073A133
StatusPublished
Cited by99 cases

This text of 321 N.E.2d 580 (Aafco Heating & Air Conditioning Co. v. Northwest Publications, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aafco Heating & Air Conditioning Co. v. Northwest Publications, Inc., 321 N.E.2d 580, 162 Ind. App. 671, 1 Media L. Rep. (BNA) 1683, 1974 Ind. App. LEXIS 894 (Ind. Ct. App. 1974).

Opinions

Staton, J.

The Gary Post Tribune published a series of ten articles concerning an electrical fire at the home of Mrs. Matilda Collins which caused the death of her two small grandchildren. Aafco Heating and Air Conditioning Company had installed a furnace in the home of Mrs. Collins three weeks before the fire on October 21, 1970. The articles reported that no permit had been obtained by Aafco before making the installation and that one fire official observed that “a heavy duty blower on the furnace may have caused an overload in the electrical service” which ignited the fire. A formal complaint against Aafco was filed with the Gary Contractors’ Licensing Board which resulted in Aafco’s suspension.

Aafco filed a libel complaint for $250,000.00 in actual damages and $500,000.00 in punitive damages. Northwest Publications, Inc., publishers of the Gary Post Tribune, filed its answer which relied on the defensive grounds of truth and qualified constitutional privilege. Later, Northwest’s motion for summary judgment was sustained by the trial court. Aafco’s appeal from this summary judgment presents the following questions for our review:

1. Does the qualified constitutional privilege announced in New York Times v. Sullivan and Rosenbloom v. Metromedia, Inc. apply to an alleged libel of a private individual in Indiana when the published statements relate to an issue of general and public concern ?
2. Is there a genuine issue of material fact upon the question of privilege?

Our review examines the development of privilege as a defense and its First Amendment dimensions. Gertz v. Robert Welch, Inc. (1974), 418 U.S. 323, 94 S.Ct. 2997, 41 L.Ed.2d 789, gives the states the option of defining the standards of constitutional privilege for “private individuals.” Our opinion rejects the simple negligence standard suggested in Gertz v. Robert Welch, Inc., supra. We [674]*674redefine the Indiana libel standard for the private individual. We conclude that a qualified constitutional privilege does apply to a private individual in Indiana and that there was no genuine issue of material fact upon the question of privilege. We affirm the trial court’s summary judgment.

I.

Privilege

Until a decade ago, privilege had no First Amendment dimensions. The common law development of defamation had been left to the several states. Times Film Corp. v. City of Chicago (1961), 365 U.S. 43, 81 S.Ct. 391, 5 L.Ed.2d 403; Beauharnais v. Illinois (1952), 343 U.S. 250, 72 S.Ct. 725, 96 L.Ed. 919; Chaplinsky v. New Hampshire (1941), 315 U.S. 568, 62 S.Ct. 766, 86 L.Ed. 1031. For example, a state legislator in Indiana is immune from liability even if he publishes defamatory material with an improper motive and with knowledge of its falsity (absolute privilege). IND. CONST., Art. 4, § 8. A similar absolute privilege attaches to judges, attorneys, parties and witnesses in connection with a judicial proceeding. See, e.g., Griffith v. Slinkard (1896), 146 Ind. 117, 44 N.E. 1001. The dissemination of news by the communications media has traditionally been safeguarded by two qualified or conditional privileges which may be pleaded as affirmative defenses in a libel action:

1. The privilege of “fair comment” (limited to opinions on public officials and their conduct — not applicable to private individuals or newsworthy events) and
2. The privilege attached to the reporting of public proceedings.

See Henderson v. Evansville Press, Inc. (1957), 127 Ind. App. 592, 142 N.E.2d 920; 18 I.L.E. Libel & Slander § 61, at 474-75. See generally Note, Fair Comment, 62 HARV. L. REV. 1207 (1949).

[675]*675[674]*674In most states, the law of defamation regarding privileged communications follows a similar pattern. RESTATEMENT [675]*675OF TORTS §§ 585-92 (1938). But, prior to the landmark decision in New York Times Co. v. Sullivan (1964), 376 U.S. 254, 84 S.Ct. 710, 11 L.Ed.2d 686, qualified privileges for the protection of the mass media were limited hy numerous restrictions and were often narrowly construed. While there would appear to be no Indiana authority to explicate the scope of these privileges, the weight of authority traditionally recognized only statements of opinion as privileged; false statements of fact were never privileged. See Post Publishing Co. v. Hallam (6th Cir. 1893), 59 F. 530; Noel, Defamation of Public Officers and Candidates, 49 COLUM. L. REV. 875 (1949). Even in cases where the privilege was applicable, the publisher-defendant could suffer the loss of his defense of privilege if the libeled plaintiff could adduce evidence of either negligence or ill will. RESTATEMENT OF TORTS § 606(c) (1938). Moreover, many courts limited the privilege of fair comment to the discussion of public events or the conduct of public officials; there was no privilege accorded the media to comment on matters merely because they were newsworthy. See, e.g., Broking v. Phoenix Newspapers (1953), 76 Ariz. 334, 264 P.2d 413; W. PROSSER, THE LAW OF TORTS 814-15 (4th ed. 1971).

The common law of qualified privilege for media expression was transplanted into the realm of emerging First Amendment doctrine in the landmark case of New York Times Co. v. Sullivan, supra. The basic starting point of the New York Times opinion was that the publisher discussing public questions is engaged in an activity protected by the First Amendment. Confined to its narrowest formulation, this decision held that the First and Fourteenth Amendments forbade “a public official from recovering damages for a defamatory falsehood relating to his official conduct unless he proved that the statement was made with ‘actual malice’ — that is with knowledge that it was false or with reckless disregard of whether it was false or not.” 376 U.S. at 279-280, 84 S.Ct. at 726. In a subsequent decision, Curtis Publishing Co. v. Butts [676]*676(1967), 388 U.S. 130, 87 S.Ct. 1975, 18 L.Ed.2d 1094, the Court extended the New York Times privilege to media comments on matters of public interest concerning “public figures.” While the meaning of the term “public official” has caused the Court little difficulty,1 the question of who is or who is not a “public figure” has not been fully resolved by the Court. In Curtis Publishing Co. v. Butts, supra, Mr. Justice Harlan spoke of the “public figure” as commanding “a substantial amount of independent public interest” at the time of publication. 388 U.S. at 154, 87 S.Ct. at 1991. Several state court cases interpreting the federal standard have found a wide variety of persons to be “public figures” within the Butts

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321 N.E.2d 580, 162 Ind. App. 671, 1 Media L. Rep. (BNA) 1683, 1974 Ind. App. LEXIS 894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aafco-heating-air-conditioning-co-v-northwest-publications-inc-indctapp-1974.