Castellani, R., Aplts. v. Scranton Times

124 A.3d 1229, 633 Pa. 230, 43 Media L. Rep. (BNA) 3133, 2015 Pa. LEXIS 2430, 2015 WL 6498933
Supreme Court of Pennsylvania·Decided October 27, 2015·No. 117 MAP 2014·Published·Cited by 46 cases

Opinions

OPINION

Justice BAER.

In this defamation action, Randall A. Castellani and Joseph J. Corcoran (Appellants) brought suit against The Scranton Times and its former reporter, Jennifer L. Henn (collectively, the Newspaper) regarding the Newspaper’s publication of three articles concerning Appellants’ testimony before the Twentieth Statewide Investigating Grand Jury. The trial court denied Appellants’ pretrial motion to admit two judicial opinions at trial as evidence of the Newspaper’s state of mind, and the Superior Court affirmed. Upon review, we reverse. Because the judicial opinions are admissible as evidence of the Newspaper’s state of mind, the trial court should have permitted Appellants to introduce them in their action against the Newspaper.

Appellants are former Lackawanna County Commissioners and members of the Lackawanna County Prison Board who, in December 2003, testified before a statewide investigating grand jury looking into alleged corruption at the Lackawanna County Prison. The prison scandal was news in the Lacka-wanna County area, and on January 12, 2004, the Newspaper published an article reporting on Appellants’ grand jury testi[235]*235mony. The article, entitled “Dems Stonewall,” cited an anonymous source close to the grand jury proceedings who described Appellants’ testimony as vague, less than candid, and evasive; reported that Appellants had “stonewalled” the proceedings and been uncooperative with the grand jurors; and the jurors were so irritated with them that they were “ready to throw both of them out.” Castellani v. Scranton Times, L.P., 598 Pa. 288, 956 A.2d 937, 940 (2008) (quoting Jennifer Henn, Dems Stonewall, Scranton Times, Jan. 12, 2004, at 1).

Because the January 12, 2004 article appeared to reflect a breach of grand jury secrecy, Appellants moved for sanctions against the Office of Attorney General for leaking secret grand jury information.1 Senior Judge Isaac Garb, the presiding judge of the grand jury, appointed a special prosecutor to investigate whether there had been an impermissible breach of grand jury secrecy. Following the investigation, Judge Garb reviewed the special prosecutor’s report and the grand jury transcripts (neither of which were public), and, on September 14, 2004, publicly released a memorandum evaluating whether there had been a violation of grand jury secrecy. Based on his review, Judge Garb concluded there was no breach of the grand jury proceedings from the Office of the Attorney General or otherwise, and the January 12, 2004 article was at odds with the transcript of Appellants’ testimony:

... The reports published in these newspapers are completely at variance with the transcript of the testimony of these witnesses. The newspaper reports provide that the witnesses were evasive in their answers, were non-cooperative, essentially “stonewalled” the Grand Jury in its inquiry and that the Grand Jurors became irate as a result of that demeanor on the witnesses’ part, and demanded that they [236]*236be “thrown out” of the Grand Jury courtroom. None of those things happened.... The report of the testimony of the witnesses was totally at variance and not borne out by the record of the witness’ testimony.

Castellani, 966 A.2d at 940-41 (quoting In re: The Twentieth Statewide Investigating Grand Jury, 16 M.D. 2003, Notice No. 16, at 2 (Pa.Com.Pl. Dauphin Sept. 14, 2004)). Judge Garb further queried whether the Newspaper’s source was in fact someone who was not really privy to the proceedings at all. Id. (“Obviously, the source of the reporter’s information was someone not privy to the Grand Jury proceedings and, therefore, not someone in the Office of the Attorney General”).

Thereafter, on September 18, 2004, the Newspaper published a second article reporting on Judge Garb’s opinion, which included several quotes from the opinion, and stated that “[t]he newspaper’s source has been contacted and says he absolutely stands by his account of the grand jury testimony,” essentially ratifying its January 12, 2004 article. David Singleton, Judge: Account of Testimony was Incorrect, Scranton Times, Sept. 18, 2004, at 1-2.

Senior Judge Barry F. Feudale succeeded Judge Garb as the grand jury’s presiding judge. In January of 2005, Appellants filed a defamation action against the Newspaper premised on the January 12, 2004 article and moved to compel disclosure of the Newspaper’s source.2 Appellants further petitioned Judge Feudale to release the special prosecutor’s report and the transcript of Appellant Corcoran’s grand jury testimony.3 Judge Feudale denied Appellants’ motion for the special prosecutor’s report and Appellant Corcoran’s tran[237]*237scripts in an order and supporting opinion dated June 29, 2005. According to Judge Feudale, grand jury secrecy outweighed Appellants’ need to obtain the information for private litigation. Nevertheless, Judge Feudale, like Judge Garb before him, further opined that the characterizations of Appellants’ grand jury testimony contained in the January 12 and September 18 articles had no factual basis:

... [Appellants’] testimony was either erroneously or egregiously reported and mischaracterized by the article[s] that are the subject of the defamation action.... In this case the source and the newspaper apparently not only knowingly asserted and published as alleged facts that which they acknowledge is illegal to assert/publish, but reaffirmed such in contravention of facts that both Judge Garb and now this Court (after our own review of the testimony of [Appellants] ) assert have no foundation in the record of the testimony under dispute before the grand jury.

In re: The Twentieth Statewide Investigating Grand Jury, 15 M.D. 2003, Notice No. 16 (Pa.Com.Pl. Dauphin June 29, 2005), Reproduced Record (R.R.) 38.

On July 7, 2005, the Newspaper published a third article disputing Judge Feudale’s conclusions and, once again, supporting its source from the grand jury. Describing the defamation litigation, the article provided as follows:

[Appellants] claim they were defamed in Jan. 12, 2004 article [sic] published by the [Newspaper] describing their testimony before the grand jury as vague and evasive. The article cited to an anonymous source close to the investigation. The former commissioners claim the story is false. The [N]ewspaper stands by its report.

Michael McNarney, Judge Won’t ‘Crack the Vault’ of Grand Jury Secrecy, Scranton Times, July 7, 2005. The article further predicted that the Newspaper’s reporting would be vindicated. Id.

Appellants initiated a second defamation action in 2005 premised on the September 18, 2004 (second) article, which was consolidated with the first. Following resolution of the Shield Law dispute by this Court in 2008, the parties engaged [238]*238in extensive discovery and cross-filed for summary judgment in December 2010. Appellants opposed the Newspaper’s motion for summary judgment by arguing that, having reviewed the Garb and Feudale opinions, the Newspaper’s decision to republish its original accusation and to stand by the account of its source was evidence of the Newspaper’s state of mind, and therefore admissible to establish actual malice and reckless disregard for truth or falsity in publishing both the January 12, 2004 and September 18, 2004 articles.4

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Castellani, R., Aplts. v. Scranton Times, 124 A.3d 1229, 633 Pa. 230, 43 Media L. Rep. (BNA) 3133, 2015 Pa. LEXIS 2430, 2015 WL 6498933 (Pa. 2015).

124 A.3d 1229 (Castellani, R., Aplts. v. Scranton Times) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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