103 A.3d 547. Corrado has failed to meet his burden to show that Bruno's claims
are "based on" the exercise of Corrado's right to petition alone. First, the claims
are not based on Corrado sending a letter to the governor. Rather, they are based
on him sharing the letter, which includes the alleged defamatory statements
regarding Bruno, with his customers and on the internet. Second, the issues in
this lawsuit are between two private individuals and their companies. Corrado's
7 Plaintiffs-Ilse Teeters-Trumpy Esq/Adam Taylor Esq Defendants-Christopher Taintor Esq/David Goldman Esq letter to the governor does not raise an issue of public concern. Cf Schelling, 2008
ME 59, 'li 13, 942 A.2d 1226 (applying statute to letter to newspaper that sought to
expand public consideration of a controversial issue). Third, the claims in this
case, when taken as a whole, allege that Paul Corrado and Carrado' s Pharmacy
engaged in a campaign to tarnish Bruno's reputation and steal Community
Pharmacy's customers. While counts II and III specifically mention the
statements in the letter, the other allegations in the complaint are relevant to the
court's analysis in deciding whether the claims are "based on" Corrado's exercise
of the right to petition. See Burley v. Comets Cmty. Youth Ctr., Inc., 917 N.E.2d 250,
254-56 (Mass. App. Ct. 2009) (refusing to dismiss claim when allegations in
complaint not based solely on protected petitioning activity); see also Duracraft
Corp., 691 N.E.2d at 943 ("[W]e adopt a construction of 'based on' that would
exclude motions brought against meritorious claims with a substantial basis
other than or in addition to the petitioning activities implicated."). Taking these
other allegations into consideration, the court concludes that Bruno's claims are
not based on Corrado's petitioning activity alone.
Conclusion
Because defendants have not met their burden at step one of the analysis
under Maine's anti-SLAPP statute, the special motion to dismiss must be denied.
The entry is:
Defendants' special motion to dismiss is DENIED.
o ce A. Wheeler ustice, Superior Court
8 ENTERED JAN 1 4 2015
~Aw---cwn-ot-os -t5 STATE OF MAINE SUPERIOR COURT CUMBERLAND, ss CIVIL ACTION Docket No. CV-14-429
JOSEPH BRUNO, et al., c~.~~~ JAN 05 2015 Plaintiffs
v. RECEIVED ORDER ON MOTION TO DISMISS PAUL CORRADO, et al.,
Defendants.
Before the court is the defendant's motion to dismiss counts I, IV, and
V of plaintiffs' complaint. For the following reasons, the motion is granted in
part and denied in part.
FACTS
The following facts are taken from plaintiffs' complaint. Plaintiff
Joseph Bruno is the owner and CEO of Community Pharmacy, a Maine
limited partnership that operates multiple pharmacies in Maine. (Compl. ~~
1-3.) Bruno is a licensed Maine pharmacist and the president of the Maine
Board of Pharmacy. (Com pl. ~ 9.) Bruno is also a former representative in the
Maine House of Representatives, and he currently serves as a Selectman for
the Town of Raymond. (Compl. ~~ 10-11.) Defendant Paul Corrado is the
owner and president of Corrado's, Inc., a Maine corporation that operates a
single pharmacy in Corinth, Maine. (Compl. ~~ 4-6.)
1 Corrado was an employee of Community Pharmacy until he was
terminated on September 6, 2011. (Compl. ~ 7 .) Mter he was terminated,
Corrado opened Corrado's Pharmacy, which competes with Community
Pharmacy's Corinth location. (Compl. ~ 8.) Since 2012, the Maine Board of
Pharmacy has received multiple complaints about Corrado's Pharmacy, and
at least some of these complaints resulted in disciplinary action, including
fines, license suspension, and probation. (Compl. ~~ 12-13.) Because of
Bruno's prior relationship with Corrado, he recuses himself when the Board
considers complaints against Corrado's. (Compl. ~ 15.)
Corrado wrote a letter addressed to Governor Paul LePage, claiming
that Bruno "has done everything in his power to put Mr. Corrado out of
business" and that he "has used his influence against Mr. Corrado." (Compl.
~~ 19-21.) The letter asks the Governor to investigate Bruno and remove him
from the Board of Pharmacy. (Compl. ~ 22.) Corrado disseminated the letter
in the Town of Corinth and published it on the internet, including on
Facebook. (Compl. ~ 17.)
Corrado's Pharmacy's agents or employees have accessed confidential
and proprietary customer information from Community Pharmacy. (Compl. ~
24.) Corrado's made calls to Community Pharmacy's customers telling them
that Community Pharmacy of Corinth was closing and telling them that they
should switch their prescriptions to Corrado's. (Compl. ~~ 24-25.) At least one
of Community Pharmacy's customers switched their prescriptions to
2 ( (
Corrado's temporarily, and many others were confused and inquired as to
whether Community Pharmacy was closing. (Compl. ~~ 26-27.) Corrado
himself has come into Community Pharmacy's Corinth Location and told a
customer, "I have a pharmacy up the road, you should come check it out."
(Compl. ~ 28.)
1. Standard of Review
On review of a motion to dismiss for failure to state a claim, the court
accepts the facts alleged in plaintiffs complaint as admitted. Saunders v.
Tisher, 2006 ME 94, ~ 8, 902 A.2d 830. The court then "examine[s] the
complaint in the light most favorable to plaintiff to determine whether it sets
forth elements of a cause of action or alleges facts that would entitle the
plaintiff to reliefpursuant to some legal theory." Doe v. Graham, 2009 ME 88,
~ 2, 977 A.2d 391 (quoting Saunders, 2006 ME 94, ~ 8, 902 A.2d 830). "For a
court to properly dismiss a claim for failure to state a cause of action, it must
appear 'beyond doubt that [the] plaintiff is entitled to no relief under any set
of facts that might be proven in support of the claim."' Dragomir v. Spring
Harbor Hosp., 2009 ME 51, ~ 15, 970 A.2d 310 (quoting Plimpton v. Gerrard,
668 A.2d 882, 885 (Me. 1995)).
2. Count I: Tortious Interference (Bruno and Community Pharmacy v. Paul Corrado and Corrado's, Inc.)
Plaintiffs assert that Corrado and Corrado's Pharmacy are liable for
tortious interference with a prospective economic advantage for improperly
3 driving Community Pharmacy's customers to Corrado's Pharmacy. "Tortious
interference with a prospective economic advantage requires a plaintiff to
prove: (1) that a valid contract or prospective economic advantage existed; (2)
that the defendant interfered with that contract or advantage through fraud
or intimidation; and (3) that such interference proximately caused damages."
Rutland v. Mullen, 2002 ME 98, ~ 13, 798 A.2d 1104. Defendants argue that
the complaint fails to plead interference by fraud or intimidation.
a. Interference by Fraud
The elements of fraud for the purposes of a tortious interference claim
are:
(1) making a false representation (2) of a material fact (3) with knowledge of its falsity or in reckless disregard of whether it is true or false (4) for the purpose of inducing another to act or refrain from acting in reliance on it, and (5) the other person justifiably relies on the representation as true and acts upon it to the damage of the plaintiff.
Id. ~ 14 (quoting Petit v. Key Bank of Maine, 688 A.2d 427, 430 (Me. 1996)).
The circumstances surrounding the alleged fraud must be "stated with
particularity." Barnes v. McGough, 623 A.2d 144, 146 (Me. 1993). Unlike a
fraud claim, however, plaintiffs need only prove a tortious interference claim
by a preponderance of the evidence. Petit, 688 A.2d at 433.
Plaintiffs' tortious interference claim is based on allegations that
Corrado told Community Pharmacy's customers that Community Pharmacy
was closing. The false statement is that the pharmacy was closing, which is a
material fact, and Corrado's knowledge of the statement's falsity can be
4 (
inferred. Corrado allegedly intended to lure Community Pharmacy's
customers to his store, and his misrepresentations allegedly succeeded in
causing at least one customer to switch her prescriptions to Corrado's
temporarily. Contrary to defendants' assertions, these allegations are
sufficient to satisfy the elements of fraud for purposes of the tort.
b. Interference by Intimidation
Plaintiffs argue that count I is based on intimidation as well as fraud.
Intimidation, for purposes of the tort, "involves unlawful coercion or
extortion." Rutland, 2002 ME 98, ~ 16, 798 A.2d 1104. The case Pombriant v.
Blue Cross/ Blue Shield of Maine illustrates the type of intimidation required.
562 A.2d 656 (Me. 1989). In that case,
Blue Cross procured the breach of contract between Pombriant and Bennett by the intimidating means of making it clear to Bennett that the only manner in which it could avail itself of Blue Cross's lower rates for the desired insurance would be by using the brokerage services of Johnson ....
Pombriant, 562 A.2d ·at 659. Although plaintiffs argue that many of
Community Pharmacy's customers are elderly and vulnerable, the complaint
does not allege that any of its customers were in any way intimidated by
Corrado's. The false statement that Community Pharmacy was closing does
not amount to "unlawful coercion or extortion." According to the complaint,
the only reason Community Pharmacy's customers might have switched their
prescriptions to Corrado's is because they thought Community Pharmacy was
closing, not because they were pressured into switching.
5 c. Justifiable Reliance
Defendants argue that plaintiff has failed to sufficiently allege that
Community Pharmacy's customers justifiably relied on the alleged
misrepresentation that Community Pharmacy was closing. Plaintiff does
allege, however, that many customers were confused and at least one
customer switched her prescriptions to Corrado's. These allegations are
sufficient to establish justifiable reliance.
d. Bruno as Plaintiff
Defendant argues that Bruno lacks standing to assert a tortious
interference claim individually. Defendants are correct that there are no
allegations in the complaint that defendants interfered with Bruno's personal
prospective economic advantage. Bruno can therefore be dismissed as a
plaintiff on count I.
3. Count IV: Defamation (Community Pharmacy v. Corrado's, Inc.)
a. Defamatory Statement
To prevail on a defamation claim, a plaintiff must demonstrate the
following elements:
(a) a false and defamatory statement concerning another; (b) an unprivileged publication to a third party; (c) fault amounting at least to negligence on the part of the publisher; and (d) either actionability of the statement irrespective of special harm of the existence of special harm caused by the publication.
6 (
Morgan v. Kooistra, 2008 ME 26, ~ 26, 941 A.2d 447. "Whether a false
statement conveys a defamatory message is a question of law." Id.
Plaintiffs' complaint alleges that Corrado told Community Pharmacy
customers that the Community Pharmacy store in Corinth was closing.
(Compl. ~ 25.) Defendant argues that this statement was not defamatory.
The Law Court has previously cited the Restatement for guidance on
defamation claims. See Rippett v. Bemis, 672 A.2d 82, 86 (Me. 1996). The
Restatement (Second) of Torts provides that a partnership may be treated
like a corporation for the purposes of a defamation claim. Restatement
(Second) of Torts § 562 (1977). "One who publishes defamatory matter
concerning a corporation is subject to liability to it:
(a) if the corporation is one for profit, and the matter tends to prejudice
it in the conduct of its business or to deter others from dealing with
it .... "
Restatement (Second) of Torts § 561 (1977). The alleged statement that the
Corinth store was closing prejudiced Community Pharmacy in the conduct of
its business because it confused Community Pharmacy's customers and
caused at least a temporary loss of business. Because the alleged statement
relates to the ability to conduct a trade or business, it is actionable per se. 1
See Restatement (Second) of Torts § 573 (1977). Cases from other
jurisdictions confirm this result. See Bay Tobacco, LLC v. Bell Quality
Tobacco Prods., LLC, 261 F. Supp. 2d 483, 501-502 (E.D. Va. 2003) (denying 1 Plaintiff also alleges special damages. (Compl. ~ 50.)
7 (
motion to dismiss when complaint alleged defendant published a false
statement that plaintiff was "going out of business"); GN Danavox, Inc. v.
Starkey Labs., Inc., 476 N.W.2d 172, 176 (Ct. App. Minn. 1991) (upholding
punitive damages award for statements in flyer that suggested, among other
things, that plaintiff was going out ofbusiness).
The cases defendants rely on are distinguishable. In Picard v.
Brennan, the Law Court held that a false statement that an employee had
been discharged was not defamation per se. 307 A.2d 833, 835 (Me. 1973).
The court reasoned that "[a]n employee may be discharged for any one of a
multitude of reasons unrelated to his honesty, integrity or occupational skill,
or indeed for no reason at all." Id. Thus, a statement that an employee was
discharged without stating a reason for the discharge is insufficient to
support a claim of defamation. Id.
Picard is distinguishable because a former employee's professional or
business interests are much different than an operating business's interests.
In Picard, the reason for discharge was critical-the plaintiff would only
suffer harm if defendant had said the employee was discharged for
misconduct, incompetence, or some other negative reason. By contrast, a false
statement that a business is closing is harmful to that business's interests,
regardless of the reason it is closing. The necessary consequence of the
statement, if believed by customers, is that the business will no longer be
able to supply the customers' needs. Customers will become confused and
8 they might switch to competitors, which 1s precisely what Community
Pharmacy alleges has occurred.
Defendant also relies on K[orce, Inc. v. Alden Personnel, Inc., a New
York case that involved a defendant who wrote an email to its own business
contacts that stated: "Better news is that we have lost lots of competition in
the local market with Robert Half and Kforce basically closing their IT
divisions in the area." 288 F. Supp. 2d 513, 515 (S.D.N.Y. 2003). The court
dismissed the defamation claim, stating "[t]he statement is at most an
allegation of unprofitability in a particular geographic area." Id. at 518. The
case is distinguishable for several reasons. First, the email was to the
defendant's own business contacts, it was not directly made to the
competitor's customers, and the email did not tell prospective customers to
shop at defendant's business as an alternative. Id. at 515. Second, the court
found that it must consider the statement in context and noted that a "less
well-established corporation would be more susceptible to harm from a
competitor's remarks." Id. at 518. Because Kforce "employ[ed] over 1,000
recruiting specialists operating in more than 40 markets nationwide", the
court found that "damages to Kforce cannot be assumed." Id. Needless to say,
Community Pharmacy does not have the type of national presence described
in the Kforce case. (Compl. ~~ 2-3.) Finally, the court must consider the
nature of the business. Community Pharmacy provides prescriptions to
people in rural communities. If Community Pharmacy were closing, its
9 customers would need to quickly make arrangements to find another
pharmacy to ensure they are able to get their medications. The impact of the
false statement on Community Pharmacy's customers is far more immediate
than the impact described in Kforce.
b. Identity of the Customers
Defendants argue that plaintiffs have failed to sufficiently identify to
whom the alleged defamatory statements were made. Plaintiff alleges that
Corrado's employees accessed Community Pharmacy's confidential customer
information and contacted its customers to tell them Community Pharmacy
was closing. The complaint further alleges that at least one customer
switched her prescriptions to Corrado's after being contacted. These
allegations are sufficient to survive a motion to dismiss. As acknowledged by
defendants' own case, dismissing the claim "would be an unduly harsh
sanction for failure to plead specific information not yet clearly required by
Maine law." Monahan v. Chapman & Drake, 1999 WL 33117089, at *4 n.3 (D.
Me. 1999). Plaintiff will need to identify specific customers to prevail on its
defamation claim at trial.
4. Count V: False Light Invasion of Privacy (Community Pharmacy v. Corrado's, Inc.)
Defendants argue that a business entity lacks standing to bring a false
light claim. Although there does not appear to be any Maine case on point,
the majority of jurisdictions that have addressed the issue appear to limit the
cause of action to individuals. See Holomaxx Technologies v. Microsoft Corp.,
10 (
783 F. Supp. 2d 1097, 1107 (N.D. Ca. 2011); Seaton v. TripAdvisor, LLC, 728
F.3d 592, 601 (6th Cir. 2013); see also Pan Am Sys., Inc. v. Hardenbergh, 871
F. Supp. 2d 6, 18 (D. Me. 2012) ("Plaintiffs concede that a corporation may
not bring a false light cause of action .... ").Because businesses typically lack
privacy rights, the court agrees with these cases that hold that a business
entity cannot bring a false light invasion of privacy claim. See Restatement
(Second) of Torts § 6521 cmt. c (1977) ("A corporation, partnership or
unincorporated association has no personal right of privacy."). Count V is
dismissed.
Joseph Bruno is dismissed as a plaintiff from Count I of the complaint; Count V of the complaint is dismissed; and Defendants' motion to dismiss is denied as to all other counts of the complaint.
Date: January 5, 2015
Justice, Superior Court
Plaintiffs-Adam Taylor Esq/Ilse Teeters- Defendants-David Trumpy Esq Goldman Esq/Christopher Taintor, Esq.