Bose Corp. v. Consumers Union of United States, Inc.

466 U.S. 485, 104 S. Ct. 1949, 80 L. Ed. 2d 502, 1984 U.S. LEXIS 73, 52 U.S.L.W. 4513, 38 Fed. R. Serv. 2d 1421, 10 Media L. Rep. (BNA) 1625
CourtSupreme Court of the United States
DecidedApril 30, 1984
Docket82-1246
StatusPublished
Cited by2,125 cases

This text of 466 U.S. 485 (Bose Corp. v. Consumers Union of United States, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bose Corp. v. Consumers Union of United States, Inc., 466 U.S. 485, 104 S. Ct. 1949, 80 L. Ed. 2d 502, 1984 U.S. LEXIS 73, 52 U.S.L.W. 4513, 38 Fed. R. Serv. 2d 1421, 10 Media L. Rep. (BNA) 1625 (1984).

Opinions

Justice Stevens

delivered the opinion of the Court.

An unusual metaphor in a critical review of an unusual loudspeaker system gave rise to product disparagement litigation that presents us with a procedural question of first impression: Does Rule 52(a) of the Federal Rules of Civil Procedure prescribe the standard to be applied by the Court of Appeals in its review of a District Court’s determination that a false statement was made with the kind of “actual malice” described in New York Times Co. v. Sullivan, 376 U. S. 254, 279-280 (1964)?

In the May 1970 issue of its magazine, Consumer Reports, respondent published a seven-page article evaluating the quality of numerous brands of medium-priced loudspeakers. In a boxed-off section occupying most of two pages, respondent commented on “some loudspeakers of special interest,” [488]*488one of which was the Bose 901 — an admittedly “unique and unconventional” system that had recently been placed on the market by petitioner.1 After describing the system and some of its virtues, and after noting that a listener “could pinpoint the location of various instruments much more easily with a standard speaker than with the Bose system,” respondent’s article made the following statements:

“Worse, individual instruments heard through the Bose system seemed to grow to gigantic proportions and tended to wander about the room. For instance, a violin appeared to be 10 feet wide and a piano stretched from wall to wall. With orchestral music, such effects seemed inconsequential. But we think they might become annoying when listening to soloists.” Plaintiff’s Exhibit 2, p. 274.

After stating opinions concerning the overall sound quality, the article concluded: “We think the Bose system is so unusual that a prospective buyer must listen to it and judge it for himself. We would suggest delaying so big an investment until you were sure the system would please you after the novelty value had worn off.” Id., at 275.

Petitioner took exception to numerous statements made in the article, and when respondent refused to publish a retraction, petitioner commenced this product disparagement action in the United States District Court for the District of Massachusetts.2 After a protracted period of pretrial [489]*489discovery, the District Court denied respondent’s motion for summary judgment, 84 F. R. D. 682 (1980), and conducted a 19-day bench trial on the issue of liability. In its lengthy, detailed opinion on the merits of the case, 508 F. Supp. 1249 (1981), the District Court ruled in respondent’s favor on most issues.3 Most significantly, the District Court ruled that the petitioner is a “public figure” as that term is defined in Gertz [490]*490v. Robert Welch, Inc., 418 U. S. 328, 342, 345, 351-352 (1974), for purposes of this case and therefore the First Amendment, as interpreted in New York Times Co. v. Sullivan, 376 U. S., at 279-280, precludes recovery in this product disparagement action unless the petitioner proved by clear and convincing evidence that'respondent made a false disparaging statement with “actual malice.”

On three critical points, however, the District Court agreed with petitioner. First, it found that one sentence in the article contained a “false” statement of “fact” concerning the tendency of the instruments to wander.4 Based primarily on testimony by the author of the article, the District Court found that instruments heard through the speakers tended to wander “along the wall,” rather than “about the room” as reported by respondent.6 Second, it found that [491]*491the statement was disparaging. Third, it concluded “on the basis of proof which it considers clear and convincing, that the plaintiff has sustained its burden of proving that the defendant published a false statement of material fact with the knowledge that it was false or with reckless disregard of its truth or falsity.” 508 F. Supp., at 1277.6 Judgment was entered for petitioner on the product disparagement claim.7

The United States Court of Appeals for the First Circuit reversed. 692 F. 2d 189 (1982). The court accepted the finding that the comment about wandering instruments was [492]*492disparaging. It assumed, without deciding, that the statement was one of fact, rather than opinion, and that it was false, observing that “stemming at least in part from the uncertain nature of the statement as one of fact or opinion, it is difficult to determine with confidence whether it is true or false.” Id., at 194. After noting that petitioner did not contest the conclusion that it was a public figure, or the applicability of the New York Times standard, the Court of Appeals held that its review of the “actual malice” determination was not “limited” to the clearly-erroneous standard of Rule 52(a); instead, it stated that it “must perform a de novo review, independently examining the record to ensure that the district court has applied properly the governing constitutional law and that the plaintiff has indeed satisfied its burden of proof.” Id., at 195. It added, however, that it “[was] in no position to consider the credibility of witnesses and must leave questions of demeanor to the trier of fact.” Ibid. Based on its own review of the record, the Court of Appeals concluded:

“[W]e are unable to find clear and convincing evidence that CU published the statement that individual instruments tended to wander about the room with knowledge that it was false or with reckless disregard of whether it was false or not. The evidence presented merely shows that the words in the article may not have described precisely what the two panelists heard during the listening test. CU was guilty of using imprecise language in the article — perhaps resulting from an attempt to produce a readable article for its mass audience. Certainly this does not support an inference of actual malice.” Id., at 197.8

[493]*493We granted certiorari to consider whether the Court of Appeals erred when it refused to apply the clearly-erroneous standard of Rule 52(a) to the District Court’s “finding” of actual malice. 461 U. S. 904 (1983).

I — (

To place the issue m focus, it is necessary to state m somewhat greater detail (a) the evidence on the “actual malice” issue; and (b) the basis for the District Court’s determination.

Evidence of Actual Malice.

At trial petitioner endeavored to prove that the key sentence embodied three distinct falsehoods about instruments heard through the Bose system: (1) that their size seemed grossly enlarged; (2) that they seemed to move; and (3) that their movement was “about the room.”

Although a great deal of the evidence concerned the first two points, the District Court found that neither was false.

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466 U.S. 485, 104 S. Ct. 1949, 80 L. Ed. 2d 502, 1984 U.S. LEXIS 73, 52 U.S.L.W. 4513, 38 Fed. R. Serv. 2d 1421, 10 Media L. Rep. (BNA) 1625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bose-corp-v-consumers-union-of-united-states-inc-scotus-1984.