Capuano v. Outlet Co.

579 A.2d 469, 18 Media L. Rep. (BNA) 1030, 1990 R.I. LEXIS 149, 1990 WL 118336
CourtSupreme Court of Rhode Island
DecidedAugust 16, 1990
Docket89-22-Appeal
StatusPublished
Cited by7 cases

This text of 579 A.2d 469 (Capuano v. Outlet Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capuano v. Outlet Co., 579 A.2d 469, 18 Media L. Rep. (BNA) 1030, 1990 R.I. LEXIS 149, 1990 WL 118336 (R.I. 1990).

Opinion

OPINION

WEISBERGER, Justice.

This case is before us on the plaintiffs’ appeal from summary judgment entered in favor of the defendant by a justice of the Superior Court. In this suit for defamation, the trial justice found that the plaintiffs are limited public figures and that as such, they failed to establish “actual malice” on the part of the defendant as required under New York Times Co. v. Sullivan, 376 U.S. 254, 84 S.Ct. 710, 11 L.Ed.2d 686 (1964). We vacate the judgment and remand the case to the Superior Court. The facts insofar as pertinent to this appeal are as follows.

The defendant Outlet Company owns and operates WJAR Channel 10, a television station broadcasting from Providence, Rhode Island. In September 1982, defendant broadcast a news report over Channel 10 concerning an interstate waste-hauling scheme. In substance, the report described how out-of-state waste was being transported to and dumped in the State of Rhode Island and asserted that these activities were carried out under the direction of members of the organized-crime communities from New York, New Jersey and Rhode Island. The plaintiffs allege that during the broadcast, the Channel 10 reporter James Taricani asserted that plaintiffs not only were participants in the alleged waste-hauling scheme, but were also connected with or members of the organized-crime community.

The plaintiffs Jack Capuano, Daniel Ca-puano and Anthony Capuano 1 owned and operated A. Capuano Bros., Inc. and United Sanitation, Inc., waste collection and disposal companies, as well as Sanitary Landfill, Inc., all of which are located in Rhode Island. The plaintiffs have verified their participation in the collection and disposal of out-of-state waste in Rhode Island, but they maintain that their operations were legal under Rhode Island law at that time. The Providence Journal, a newspaper of general circulation in this state, has also done extensive reporting on this controversy and has often referred to and quoted plaintiffs in the numerous newspaper articles relating to this matter. The plaintiffs have also, from time to time, granted interviews and made statements to the media in connection with the waste-hauling controversy. Moreover, plaintiffs are involved in the ongoing litigation brought in Federal District Court by the State of Rhode Island relating to the allegedly illegal disposal of toxic waste in this jurisdiction.

Although plaintiffs have openly admitted that their business operations have involved the hauling and disposal of out-of-state waste in Rhode Island, they vehemently deny having connections with organized crime. Consequently on October 18, 1982, plaintiffs filed this defamation suit in Providence County Superior Court against defendant Outlet Company, alleging, inter alia, defamation and tortious interference with their business relations due to defendant’s September 1982 broadcast. The Channel 10 news reporter James Taricani was not named as a defendant by plaintiffs. In response to plaintiffs’ complaint defendant raises the defense of good-faith reliance.

During pretrial discovery, plaintiffs propounded interrogatories to defendant, several of which requested that defendant identify the sources of information supporting Taricani’s allegations that plaintiffs are associated with the organized-crime community. The defendant objected to these and other interrogatories, asserting a privilege under the First Amendment to the United State Constitution and a statutory privilege under Rhode Island law. Faced with defendant’s refusal, plaintiffs filed a motion to compel answers to their interrogatories, and defendant simultaneously moved for a protective order against disclosing this information. The Superior *472 Court justice hearing the matter granted plaintiffs’ motion to compel answers to certain interrogatories but issued a protective order with respect to the interrogatories requesting that defendant identify its confidential sources and related information. A qualified First Amendment privilege against disclosure was identified by the Superior Court justice as the basis for the protective order.

When plaintiffs deposed the Channel 10 reporter James Taricani, he also refused to reveal his confidential sources, though he did disclose the groups, described as law enforcement officials and waste-hauling truck drivers, from which he derived these sources. Accordingly, a second motion to compel answers to interrogatories was brought by plaintiffs. This second motion was denied on the basis of the statute then in effect, G.L.1956 (1969 Reenactment) §§ 9-19.1-1 through 9-19.1-3, now codified in substantially the same form in G.L.1956 (1985 Reenactment) §§ 9-19.1-1 through 9-19.1-3, the Newsman’s Privilege Act. The statute provides news reporters with a limited privilege against disclosure of confidential sources, and the Superior Court justice found that plaintiffs did not come within any exception to the exercise of this privilege.

Thereafter defendant moved for summary judgment, alleging that plaintiffs were public figures and as such had failed to prove “actual malice” 2 as required under the Supreme Court’s holding in New York Times Co. v. Sullivan, 376 U.S. 254, 84 S.Ct. 710, 11 L.Ed.2d 686 (1964). The plaintiffs also moved for summary judgment, but only in regard to the issue of their status as public figures. The plaintiffs responded that they are not public figures and therefore should only be held to the negligence standard of proof required of private litigants under Gertz v. Robert Welch, Inc., 418 U.S. 323, 94 S.Ct. 2997, 41 L.Ed.2d 789 (1974). The trial justice granted defendant’s motion for summary judgment and denied plaintiffs’ motion. On appeal to this court plaintiffs raise three issues, each of which is addressed separately below.

I

DID THE TRIAL JUSTICE ERR IN FINDING PLAINTIFFS WERE PUBLIC FIGURES?

In order for a public figure to recover in a suit for defamation, there must be proof by clear and convincing evidence of “actual malice” on the part of the defendant as required under New York Times Co. v. Sullivan, 376 U.S. at 279-280, 84 S.Ct. at 726, 11 L.Ed.2d at 706. See Herbert v. Lando, 441 U.S. 153, 156, 99 S.Ct. 1635, 1638, 60 L.Ed.2d 115, 121 (1979); Gertz v. Robert Welch, Inc., 418 U.S. 323, 94 S.Ct. 2997, 41 L.Ed.2d 789 (1974). “Actual malice” on the part of the defendant may be proven by demonstrating either actual knowledge that the published statement was false or a reckless disregard for whether or not it was false. New York Times Co., 376 U.S. at 279-80, 84 S.Ct. at 726, 11 L.Ed.2d at 706; accord DeCarvalho v. daSilva, 414 A.2d 806, 812 (R.I.1980).

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579 A.2d 469, 18 Media L. Rep. (BNA) 1030, 1990 R.I. LEXIS 149, 1990 WL 118336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capuano-v-outlet-co-ri-1990.