Chafoulias v. Peterson

642 N.W.2d 764, 2002 Minn. App. LEXIS 460, 2002 WL 766156
CourtCourt of Appeals of Minnesota
DecidedApril 30, 2002
DocketC2-01-1617
StatusPublished
Cited by2 cases

This text of 642 N.W.2d 764 (Chafoulias v. Peterson) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chafoulias v. Peterson, 642 N.W.2d 764, 2002 Minn. App. LEXIS 460, 2002 WL 766156 (Mich. Ct. App. 2002).

Opinion

OPINION

G. BARRY ANDERSON, Judge.

Hotel owner Gus A. Chafoulias (appellant) brought a defamation action against attorney Lori Peterson (respondent) and the American Broadcasting Companies, Inc. (ABC) (respondent) in response to Peterson’s televised statements alleging appellant’s knowledge of acts of sexual abuse and harassment perpetrated against his female employees by male guests at his hotel. The district court granted respondents summary judgment, reasoning that appellant was a limited-purpose public figure who could not prove by clear and convincing evidence that respondents had acted with actual malice. We agree with the district court’s reasoning, and affirm. Because we affirm the decision in respondents’ favor, we do not reach the immunity and privilege issues raised by respondents by notice of review.

FACTS

In June 1996, respondent Lori Peterson brought a federal sexual-harassment lawsuit on behalf of five former employees of the Radisson Plaza Hotel in Rochester against appellant Gus A. Chafoulias, the hotel’s owner, companies appellant controlled, and others. The suit claimed that between 1993 and 1995, female hotel employees were subjected to acts of sexual harassment and abuse at the hands of hotel guests from the United Arab Emirates.

The allegations of liability were premised on the contention that appellant, as an employer, was responsible for the actions of his managers and employees in ignoring, condoning, and contributing to the illegal acts of the hotel guests. The suit alleged that appellant and his employees long knew about the offensive conduct but failed to take meaningful action, including notifying the police, and that appellant used his influence to dissuade the police from investigating or prosecuting reported crimes, including rape.

The harassment suit arise from a developing and increasingly public dispute concerning the alleged sexual harassment of Rochester women by Arab males visiting Rochester to receive medical care at the Mayo Clinic. In August 1995, Peterson notified appellant that she was representing several of his former employees in a suit against appellant and the Radisson. Appellant hired a public-relations firm in anticipation of a media-relations battle over the allegations, which soon became public. Beginning in April 1996, Rochester-area newspapers and television stations began reporting on the accusations. After the suit was filed, newspaper and television coverage increased. In October 1996, respondent American Broadcasting Companies (ABC) videotaped interviews with Peterson, her clients, and appellant.

On August 6, 1997, ABC broadcast the interviews, in a substantially edited form, as “The VIP Floor,” a segment of ABC’s “PrimeTime Live” television program. The report contained footage of appellant saying, “I don’t know if [the harassment] happened,” followed by footage of Peter *769 son stating, “Chafoulias knew. Chafoulias has known for years that these women were being attacked, harassed, raped.”

On August 13, 1998, appellant brought a defamation action against respondents, alleging, inter alia, that Peterson’s statement was made and broadcast with actual malice. Respondents claimed various immunity and privilege defenses. Extensive discovery and motion practice ensued.

The district court concluded that appellant was a limited-purpose public figure, and would have to show that respondents acted with actual malice to recover for defamation.

Both respondents moved for summary judgment on the issue of actual malice. The district court granted both motions, reasoning that the evidence in the record could not support a reasonable jury finding that appellant showed respondents’ actual malice by clear and convincing evidence. This appeal followed. By notice of review, respondents claim that various immunities and privileges apply.

ISSUES

I. Is appellant a limited-purpose public figure?

II. Did the district court err by granting respondents summary judgment on the defamation claim?

ANALYSIS

I.

Chafoulias claims he was defamed by Peterson’s statement, as broadcast by ABC, that “Chafoulias knew. Chafoulias has known for years that these women were being attacked, harassed, raped.” The elements of a cause of action for defamation are (1) a false and defamatory statement about the plaintiff; (2) an unprivileged publication to a third party; (3) a tendency to harm the plaintiffs reputa-

tion in the community; and (4) fault, at least negligence. Britton v. Koep, 470 N.W.2d 518, 520 (Minn.1991).

We first consider whether appellant is a limited-purpose public figure. If so, he may only recover by showing that Peterson’s “statement was made with ‘actual malice,’ — that is, with knowledge that it was false or with reckless disregard of whether it was false or not.” New York Times Co. v. Sullivan, 376 U.S. 254, 279-80, 84 S.Ct. 710, 726, 11 L.Ed.2d 686 (1964). The public or private status of the plaintiff in a defamation action is a question of law, which we consider de novo. Rosenblatt v. Baer, 383 U.S. 75, 88, 86 S.Ct. 669, 677, 15 L.Ed.2d 597 (1966).

Generally, public figures are those whose exceptional access to the media affords them “ ‘a more realistic opportunity to counteract false statements than private individuals normally enjoy.’” Scheibel v. Pavlak, 282 N.W.2d 843, 856 (Minn.1979) (quoting Gertz v. Robert Welch, Inc., 418 U.S. 323, 344, 94 S.Ct. 2997, 3009, 41 L.Ed.2d 789 (1974)); see also Jadwin v. Minneapolis Star & Tribune Co., 367 N.W.2d 476, 486 (Minn.1985) (effective media access is a “distinguishing feature” of public figures).

In certain circumstances, the United States Constitution treats private citizens who are not otherwise public figures as public figures for the purpose of comment upon certain issues; these individuals are known as limited-purpose public figures. See Wolston v. Reader’s Digest Assoc., 443 U.S. 157, 165-69, 99 S.Ct. 2701, 2706-08, 61 L.Ed.2d 450 (1979); Hutchinson v. Proxmire, 443 U.S. 111, 134, 99 S.Ct. 2675, 2688, 61 L.Ed.2d 411 (1979). A limited-purpose public figure is defined as

an individual [who] voluntarily injects himself or is drawn into a particular public controversy and therefore be *770 comes a public figure for a limited range of issues.

Gertz, 418 U.S. at 351, 94 S.Ct. at 3013 (internal quotations omitted) (alteration in original).

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Related

Chafoulias v. Peterson
668 N.W.2d 642 (Supreme Court of Minnesota, 2003)

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Bluebook (online)
642 N.W.2d 764, 2002 Minn. App. LEXIS 460, 2002 WL 766156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chafoulias-v-peterson-minnctapp-2002.