Commercial Programming Unlimited v. Columbia Broadcasting Systems, Inc.

81 Misc. 2d 678, 367 N.Y.S.2d 986, 1975 N.Y. Misc. LEXIS 2445
CourtNew York Supreme Court
DecidedMarch 24, 1975
StatusPublished
Cited by8 cases

This text of 81 Misc. 2d 678 (Commercial Programming Unlimited v. Columbia Broadcasting Systems, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Programming Unlimited v. Columbia Broadcasting Systems, Inc., 81 Misc. 2d 678, 367 N.Y.S.2d 986, 1975 N.Y. Misc. LEXIS 2445 (N.Y. Super. Ct. 1975).

Opinion

Abraham J. Gellinoff, J.

Defendants in this defamation action move for summary judgment. The undisputed facts show that in December, 1973, and in April, 1974, defendant John Stossel, a reporter and news broadcaster for defendant Columbia Broadcasting Systems, Inc. (CBS), published a tele[679]*679vised report about computer programming schools. His account concerned the industry generally, with particular emphasis on plaintiff Commercial Programming Unlimited, of which plaintiff Walter Small is principal owner.

Plaintiffs complain specifically about the following statements made by Stossel, in his December report on CBS’s New York station, WCBS-TV, during "The Eleven O’Clock Report”:

"About five years ago * * * some of the greatest job opportunities were in the computer field. All kinds of people who could operate computers made all kinds of money. Well, today, the computer field is not growing as fast but the computer schools are still looking for customers.

"Computer School frauds probably reached its heyday three years ago. Typically, people who swept floors, washed dishes, or held other low paying jobs saved money for years to earn the tuition so that they could be trained for a glamorous high paying job. The schools unfortunately often collected the tuition, went out of business and then reopened under another name. The student lost his savings and got no training. In 1970, the New York State Attorney General’s Office launched an investigation. Some of the abuses were cleared up. There were about 40 computer schools in New York City at the time. Today, only about ten are left. This one is the largest: Commercial Programming Unlimited. They train 3000 students at a time. Two thousand graduate.

"At the time of the Attorney General’s investigation, Commercial Programming was considered one of the good operations in a bad field. Company president, Walter Small, was even interviewed by Channel '2’ for a broadcast about those fly-by-night computer schools. Walter Small has since become quite a success. He says his school is the largest in the country, but according to the Department of Consumer Affairs, the school’s reputation has changed.

Learning about computers from Commercial Programming costs you, depending upon what courses you take, from $500 to $1500. If you don’t have all that money — don’t worry, Commercial Programming will loan some of it to you at 56% annual interest for some courses, 400% for others. The students want the training badly.

"It may be a false hope. Most of the business machine companies we called said they train their own people. Some said they have hired from computer schools but they are not hiring now. The Department of Consumer Affairs has lots of

[680]*680complaints from people who took computer courses and then found they just couldn’t get a job.

"Among other complaints about Commercial Programming, they pass out these booklets which say on them, Approved by the New York State Department of Education. Unfortunately, the Department of Education has no such stamp, and has not approved this book.

"There are plenty of other computer schools that have been complained about. Our point is not to single out Commercial Programming. We picked it because it is the largest school. The point is that there is no guarantee that any of these schools will ever get you a job. All you can do is check the want ads in the paper and call the companies to find out their hiring policies. Find out if they do hire vocational school graduates. Many companies won’t. But I doubt that the vocational school will tell you that.”

Plaintiffs also complain about the April broadcasts on WCBS-TV during "The Six O’Clock Report” and "The Eleven O’Clock Report”, in which Stossel repeated some of the above quoted material, and added: "Today, however, the Federal Trade Commission filed a complaint against two computer schools. Commercial Programming is one of them. The complaint charges that CPU’s training is virtually worthless. The commission says that it may go to court to try to get refunds for some students.”

Defendants Stossel and CBS argue that even if the challenged statements were false — which they do not concede— they are nevertheless entitled to dismissal of the complaint (CPLR 3211, subd [a], par [7]; subd [c]). They contend that the statements were privileged, and that plaintiffs do not set forth facts raising a bona fide issue of actual malice. Plaintiffs, on the other hand, contend that the allegedly defamatory statements were not privileged, and that, in any event, triable issues of fact exist as to whether defendants published the statements with actual malice.

Plaintiffs rely upon the recent decision of the Supreme Court of the United States in Gertz v Robert Welch, Inc. (418 US 323 [1974]), where the court largely left the question of privilege for the States to resolve. In order to properly apply the holding of the Gertz decision, it is first necessary to place it in the context of the court’s prior pronouncements on the subject.

The seminal decision on the issue of privilege is New York [681]*681Times Co. v Sullivan (376 US 254). There, the court, without dissent, established as a fundamental rule that (pp 279-280): "The constitutional guarantees require, we think, a federal rule that prohibits a public official from recovering damages for a defamatory falsehood relating to his official conduct unless he proves that the 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.” While the privilege which the court announced pertained only to statements made about a public official, the court, in its decision, nevertheless deemed it appropriate to quote with approval from a decision of the Supreme Court of Kansas, as follows: " 'This privilege extends to a great variety of subjects, and includes matters-of public concern, public men, and candidates for office.’ ” (Coleman v MacLennan, 78 Kan 711, 723, quoted at 376 US 254, 281-282, supra; emphasis added.)

The Supreme Court expanded the New York Times rule in Curtis Pub. Co. v Butts, and in its companion case, Associated Press v Walker (388 US 130). Butts involved the defamation of a well-known athletic director of a State university who was paid by private funds. Walker involved a private individual, albeit a retired army general, who participated in racial agitation at the campus of the University of Mississippi.

The court held that the New York Times rationale was applicable not only to "public officials” (see, in this connection, Rosenblatt v Baer, 383 US 75), but also to "public figures” who are "involved in issues in which the public has a justified and important interest” (388 US 130, 134, supra). The court unanimously found that the plaintiffs in both cases were "public figures”; the athletic director had previously been a famous football coach, and was negotiating to coach a professional football team at the time of the publication complained of, which accused him of "fixing” a football game; the retired general — who, the publication asserted, led a mob to attack Federal officers during campus racial disorders — had made many public appearances with regard to Federal intervention to enforce school desegregation, "and could fairly be deemed a man of some political prominence” (388 US 130, 140, supra).

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81 Misc. 2d 678, 367 N.Y.S.2d 986, 1975 N.Y. Misc. LEXIS 2445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-programming-unlimited-v-columbia-broadcasting-systems-inc-nysupct-1975.