Bank of Oregon v. Independent News, Inc.

670 P.2d 616, 65 Or. App. 29, 9 Media L. Rep. (BNA) 2425, 1983 Ore. App. LEXIS 3672
CourtCourt of Appeals of Oregon
DecidedOctober 12, 1983
DocketA 7908-03679; CA A24067
StatusPublished
Cited by17 cases

This text of 670 P.2d 616 (Bank of Oregon v. Independent News, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Oregon v. Independent News, Inc., 670 P.2d 616, 65 Or. App. 29, 9 Media L. Rep. (BNA) 2425, 1983 Ore. App. LEXIS 3672 (Or. Ct. App. 1983).

Opinion

*31 RICHARDSON, P. J.

Plaintiffs in this libel action are Bank of Oregon and its president, Wadsworth. They allege that they were defamed by an article written by defendants Buel and Meeker and published in defendant Independent News, Inc.’s weekly newspaper Willamette Week. The article was based in the main on information furnished defendants by Richard Cross, a customer of the bank. A foreclosure action by the bank was pending against Cross at the time he gave the information to defendants. Defendants’ article was to the general effect that plaintiffs had engaged in a series of wrongful acts to divert Cross’ money and credit to another bank customer. Plaintiffs contend that defendants did not take adequate care to ascertain the truth or falsehood of Cross’ charges before publishing them.

The trial court granted defendants’ motion for summary judgment, and plaintiffs appeal from the resulting judgment. The principal issue is what level of culpability a plaintiff who is a “private individual” must prove against a “media defendant” to recover for libel.

The common law rule in Oregon and virtually all other jurisdictions is that defamations ascribing “to the defamed party characteristics or conduct that would adversely affect his fitness for his occupation or profession” are actionable per se. Benassi v. Georgia-Pacific, 62 Or App 698, 705, 662 P2d 760, modified 63 Or App 672, 667 P2d 532 (1983); see also Cook v. Safeway Stores, Inc., 266 Or 77, 511 P2d 375 (1973); Murphy v. Harty, 238 Or 228, 393 P2d 206 (1964). Accordingly, a presumption of malice and of general damage to reputation arises from the making of the defamation alone, and direct proof of culpability on the part of the defendant is unnecessary. Woolley v. Hiner, 164 Or 161, 165, 100 P2d 608 (1940); Peck v. Coos Bay Times Pub. Co. et al, 122 Or 408, 259 P 307 (1927); see Gertz v. Robert Welch, Inc., 418 US 323, 346-47, 349, 94 S Ct 2997, 41 L Ed 2d 789 (1974). 1

*32 However, a series of United States Supreme Court decisions, beginning with New York Times Co. v. Sullivan, 376 US 254, 84 S Ct 710, 11 L Ed 2d 686 (1964), hold that the First Amendment requires more of a showing of culpability than the common law does to support a judgment for libel against a media defendant (e.g., a publisher or broadcaster). The Court held in New York Times that a public official cannot recover

“* * * (jamageS for a defamatory falsehood relating to his official conduct unless he proves 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 of not. * * *” 376 US at 279-80.

Although it is not wholly clear from the New York Times opinion, later statements by the Supreme Court indicate that the “reckless disregard” part of the actual malice test is a subjective rather than an objective standard. See St. Amant v. Thompson, 390 US 727, 731, 88 S Ct 1323, 20 L Ed 2d 262 (1968) (statement must be made with “high degree of awareness * * * of probable falsity,” and defendant must have “entertained serious doubts as to the truth of his publication”).

In Curtis Publishing Co. v. Butts, 388 US 130, 87 S Ct 1975, 18 L Ed 2d 1094 (1967), the Court extended the actual malice standard to libel actions by “public figures” against media defendants. Four years later, a plurality of the Court concluded in Rosenbloom v. Metromedia, 403 US 29, 91 S Ct 1811, 29 L Ed 2d 296 (1971), that the actual malice rule applies even to actions by “private individuals” (i.e., persons who are not public officials or public figures) if the subject of the defamation is one “of public or general interest.” 403 US at 43. In Gertz v. Robert Welch, Inc., supra, the Court rejected the plurality’s conclusion in Rosenbloom and held

“* * * that, so long as they do not impose liability without fault, the States may define for themselves the appropriate standard of liability for a publisher or broadcaster of defamatory falsehood injurious to a private individual. * * *” 418 US at 347.

The principal rationale for New York Times is that, in the context of political debate and communication about public officials, the First Amendment requires that erroneous statements “must be protected if the freedoms of expression *33 are to have the ‘breathing space’ that they ‘need ... to survive.’ ” 376 US at 271-72 (citing N. A. A. C. P. v. Button, 371 US 415, 433, 83 S Ct 328, 9 L Ed 2d 405 (1963)). That premise has been adhered to in the Supreme Court’s later cases. The Court said in Gertz that “[t]he First Amendment requires that we protect some falsehood in order to protect speech that matters.” 418 US at 341. However, the Court concluded in Gertz that the appropriate balance between First Amendment protection of the media and the right of redress for libel differs when those defamed are private individuals rather than public officials or public figures. The Court explained:

“More important than the likelihood that private individuals will lack effective opportunities for rebuttal, there is a compelling normative consideration underlying the distinction between public and private defamation plaintiffs. An individual who decides to seek governmental office must accept certain necessary consequences of that involvement in public affairs. He runs the risk of closer public scrutiny than might otherwise be the case. And the society’s interest in the officers of government is not strictly limited to the formal discharge of official duties. * * *
<<* * * * *
“* * * [T]he communications media are entitled to act on the assumption that public officials and public figures have voluntarily exposed themselves to increased risk of injury from defamatory falsehood concerning them. No such assumption is justified with respect to a private individual. He has not accepted public office or assumed an ‘influential role in ordering society.’ * * * He has relinquished no part of his interest in the protection of his own good name, and consequently he has a more compelling call on the courts for redress of injury inflicted by defamatory falsehood. Thus, private individuals are not only more vulnerable to injury than public officials and public figures; they are also more deserving of recovery.” 418 US at 344-45. 2 (Citation omitted.)

*34 The only First Amendment requirement relevant to this appeal is that, in a libel action by a private individual against a media defendant, the plaintiff must prove that the defendant was at least negligent in failing to ascertain whether the defamatory publication was true or false. 3 The states may

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Bluebook (online)
670 P.2d 616, 65 Or. App. 29, 9 Media L. Rep. (BNA) 2425, 1983 Ore. App. LEXIS 3672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-oregon-v-independent-news-inc-orctapp-1983.