Anderson v. Colorado Mountain News Media, Co.

CourtDistrict Court, D. Colorado
DecidedDecember 18, 2019
Docket1:18-cv-02934
StatusUnknown

This text of Anderson v. Colorado Mountain News Media, Co. (Anderson v. Colorado Mountain News Media, Co.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Colorado Mountain News Media, Co., (D. Colo. 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Christine M. Arguello

Civil Action No. 18-cv-02934-CMA-STV

CAROLYN ANDERSON,

Plaintiff,

v.

COLORADO MOUNTAIN NEWS MEDIA, CO. and RANDY WYRICK,

Defendants.

ORDER ADOPTING AND AFFIRMING RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE ______________________________________________________________________

This matter is before the Court on the Recommendation (Doc. # 45) by Magistrate Judge Gordon P. Gallagher wherein he recommends that this Court grant in part and deny in part Defendants’ Motion to Dismiss Plaintiff’s Amended Complaint (Doc. # 34). On June 5, 2019, Plaintiff Carolyn Anderson and Defendants Colorado Mountain News Media and Randy Wyrick filed Objections to the Recommendation. (Doc. ## 47, 48.) Both Objections have been fully briefed. (Doc. ## 49, 50, 53.) For the following reasons, the Court adopts and affirms the Recommendation. I. BACKGROUND The magistrate judge’s Recommendation provides a recitation of the factual and procedural background of this dispute and is incorporated herein by reference. See 28 U.S.C. § 636(b)(1)(B); Fed. R. Civ. P. 72(b). Accordingly, this Order will reiterate only what is necessary to address the Parties’ Objections. On November 16, 2017, Vail Daily published an article (“the Article”) written by Defendant Wyrick, which described a fraudulent scheme that had been orchestrated by Plaintiff’s late husband. The Article created the impression that Plaintiff was materially involved in the scheme through the following statements: • “Vail widow sued for scam”

• “Securities and Exchange Commission lawsuit claims woman and now- deceased husband defrauded investors of $5.3M”

• “Vail widow accused of securities fraud”

• “A federal financial watchdog is suing the widow of a former Vail resident, saying she was part of her deceased husband’s ponzi scheme.”

• “The [SEC] sued [Plaintiff] . . . claiming that she and husband Michael Anderson scammed 18 investors out of more than $5.3 million . . . .”

• “SEC attorney Leslie Hughes is charging [Plaintiff] with securities fraud . . . .”

(Doc. # 1-1 at 2) (emphasis added).1 The Article was based, in large part, on a complaint that the SEC filed (“the SEC Complaint”) in this district on November 8, 2017. See Sec. and Exch. Comm’n v. End of the Rainbow Partners, L.L.C., No. 17-cv-02670-MSK-NYW (Doc. # 1) (original complaint); (Doc. # 34-3) (copy of complaint filed as Exhibit 2 to Defendants’ Motion to Dismiss). The named defendants in the SEC Complaint were The End of the Rainbow

1 The list of quotations from the Article is illustrative of statements that created the impression that Plaintiff was materially involved in the scheme; it is not necessarily exhaustive. Partners, L.L.C. and The Estate of Michael F. Anderson. Plaintiff was included as a relief defendant in her individual capacity as well as her capacity as the personal representative of the Estate of Michael F. Anderson, and as trustee for the Michael Anderson Trust. The SEC Complaint explained that the named defendants allegedly “violated the anti-fraud provisions of the federal securities laws.” (Doc. # 34-3 at 4.) By contrast, the SEC Complaint explained that the relief defendants allegedly “received investors’ funds misappropriated by Mr. Anderson, and were unjustly enriched because they provided no or negligible bona fide services or consideration in exchange for the funds

received.” (Id.) The SEC Complaint did not allege that Plaintiff was part of the fraudulent scheme at issue or that she violated the federal securities laws. Rather, the SEC Complaint portrays Plaintiff as—at best—an unwitting recipient of the fruits of the scheme, as evidenced by the following statements: • Mr. Anderson executed electronic inter-bank transfers by electronically logging in under [Plaintiff’s] user credentials, without her knowledge or consent.

• [Mr. Anderson] directed [Plaintiff] to sign blank checks on behalf of Rainbow Partners, and then he subsequently completed the payment information on the Rainbow Partners’ checks.

• [Mr. Anderson] also forged [Plaintiff’s] signature on brokerage account documents.

• Mr. Anderson caused [Plaintiff] to create the Rainbow Foundation, which he used as a fraudulent device to misappropriate investors’ funds through the guise of contributions to a charitable organization.

• Mr. Anderson caused [Plaintiff] to create Seaoma, which he used as a fraudulent device to misappropriate investors’ funds through the guise of paying Seaoma for purported services. (Id. at 8–9, 13–14) (emphasis added). The differences between the Article and the SEC Complaint gave rise to the instant case. Plaintiff’s Amended Complaint raises four claims against Defendants: • Claim 1 – defamation; • Claim 2 – defamation for republished statements; • Claim 3 – negligent defamation; and • Claim 4 – negligent infliction of emotional distress. (Doc. # 30.) On March 21, 2019, Defendants filed a Motion to Dismiss all of Plaintiff’s claims. (Doc. # 34.) This Court referred the Motion to Magistrate Judge Gallagher, who issued a Recommendation which concluded that Defendants’ Motion to Dismiss should be granted as to Claims 3 and 4 but denied as to Claims 1 and 2. (Doc. # 45 at 1–2.) II. LEGAL STANDARDS

A. REVIEW OF A RECOMMENDATION When a magistrate judge issues a recommendation on a dispositive matter, Federal Rule of Civil Procedure 72(b)(3) requires that the district judge “determine de novo any part of the magistrate judge’s [recommended] disposition that has been properly objected to.” An objection is properly made if it is both timely and specific. United States v. One Parcel of Real Property Known As 2121 East 30th Street, 73 F.3d 1057, 1059 (10th Cir. 1996). In conducting its review, “[t]he district judge may accept, reject, or modify the recommended disposition; receive further evidence; or return the matter to the magistrate judge with instructions.” Fed. R. Civ. P. 72(b)(3). B. FEDERAL RULE OF CIVIL PROCEDURE 12(b)(6) Federal Rule of Civil Procedure 12(b)(6) provides that a defendant may move to dismiss a claim for “failure to state a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). “The court’s function on a Rule 12(b)(6) motion is not to weigh potential evidence that the parties might present at trial, but to assess whether the plaintiff’s complaint alone is legally sufficient to state a claim for which relief may be granted.” Dubbs v. Head Start, Inc., 336 F.3d 1194, 1201 (10th Cir. 2003) (citations and quotation marks omitted). “A court reviewing the sufficiency of a complaint presumes all of plaintiff’s factual

allegations are true and construes them in the light most favorable to the plaintiff.” Hall, 935 F.2d at 1198. “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (emphasis added) (citing Bell Atlantic Corp. v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gertz v. Robert Welch, Inc.
418 U.S. 323 (Supreme Court, 1974)
Cox Broadcasting Corp. v. Cohn
420 U.S. 469 (Supreme Court, 1975)
Philadelphia Newspapers, Inc. v. Hepps
475 U.S. 767 (Supreme Court, 1986)
Hustler Magazine, Inc. v. Falwell
485 U.S. 46 (Supreme Court, 1988)
Masson v. New Yorker Magazine, Inc.
501 U.S. 496 (Supreme Court, 1991)
United States v. O'Hagan
521 U.S. 642 (Supreme Court, 1997)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Southern Disposal, Inc. v. Texas Waste Management
161 F.3d 1259 (Tenth Circuit, 1998)
Dubbs Ex Rel. Dubbs v. Head Start, Inc.
336 F.3d 1194 (Tenth Circuit, 2003)
Brereton v. Bountiful City Corp.
434 F.3d 1213 (Tenth Circuit, 2006)
Brule v. Blue Cross and Blue Shield
455 F. App'x 836 (Tenth Circuit, 2011)
Spacecon Specialty Contractors, LLC v. Bensinger
713 F.3d 1028 (Tenth Circuit, 2013)
Gomba v. McLaughlin
504 P.2d 337 (Supreme Court of Colorado, 1972)
Lewis v. McGraw-Hill Broadcasting Co.
832 P.2d 1118 (Colorado Court of Appeals, 1992)
Keohane v. Stewart
882 P.2d 1293 (Supreme Court of Colorado, 1994)
Arrington v. Palmer
971 P.2d 669 (Colorado Court of Appeals, 1998)
Bustos v. a & E TELEVISION NETWORKS
646 F.3d 762 (Tenth Circuit, 2011)
Gordon v. Boyles
99 P.3d 75 (Colorado Court of Appeals, 2004)
Tonnessen v. Denver Publishing Co.
5 P.3d 959 (Colorado Court of Appeals, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
Anderson v. Colorado Mountain News Media, Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-colorado-mountain-news-media-co-cod-2019.