Crane v. Arizona Republic

972 F.2d 1511, 1992 WL 201035
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 21, 1992
DocketNo. 90-55071
StatusPublished
Cited by20 cases

This text of 972 F.2d 1511 (Crane v. Arizona Republic) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crane v. Arizona Republic, 972 F.2d 1511, 1992 WL 201035 (9th Cir. 1992).

Opinions

TANG, Circuit Judge:

In August 1984, The Arizona Republic published an article describing an ongoing investigation by a congressional committee and the Department of Justice into alleged corruption by James Henderson and Richard Crane, Jr., the then current and former heads, respectively, of the Justice Department’s Los Angeles Organized Crime and Racketeering Strike Force (“Strike Force”). Crane and Henderson subsequently filed a lawsuit in California state court seeking damages for libel, slander, and intentional infliction of emotional distress. The state court denied the defendants’ motion for summary judgment. The defendants removed the case to federal court and filed a second motion for summary judgment, which was granted. Crane and Henderson appeal. We affirm in part, and vacate and remand in part.

BACKGROUND

In the spring of 1983, the U.S. House of Representatives’ Select Committee on Narcotics Abuse and Control (“Committee”) received allegations of corruption by Henderson and Crane. Crane, a private attorney, had previously headed the Strike Force for thirteen years. Henderson, a friend and former colleague of Crane, was at the helm of the Strike Force at the time the charges of corruption arose.1 The charges were levelled by Jerry Vann, an incarcerated felon enrolled in the federal witness protection program. Vann had previously served as a successful witness in numerous Strike Force investigations and prosecutions.

Vann claimed that Crane and Henderson had ties to organized crime and that this linkage underlay the dismissal of numerous meritorious criminal cases by the Strike Force. Vann also alleged that Crane’s current clients were organized crime figures and that Crane used his friendship with Henderson to halt Strike Force investigations of his clients. Vann referred specifically to the government’s failure to prosecute an alleged Hawaiian crime chief, who was the target of two separate criminal investigations (Operations Fireball and CoCo). Vann attributed the lack of prosecution to the efforts of Henderson, Crane, and others.

After receiving these allegations, Representative Charles Rangel, Chair of the Committee, and Representative Benjamin Gilman, asked Sterling Johnson, Jr. to conduct a preliminary investigation into Vann’s charges and to recommend whether further investigation would be worthwhile.2

After interviewing Jerry Vann and others Vann named to corroborate his charges, Johnson summarized his findings for the Committee. He began by describing Vann’s criminal background, history of cooperation with prosecutors, and his sub[1515]*1515sequent feeling of betrayal by them. Johnson then recited Vann’s main allegations:

(1) Crane supervised the Strike Force for thirteen years.
(2) Crane is currently the attorney for the Aladdin Hotel Casino in Las Vegas and owns “points” in the Barbary Coast Casino.
(3) Vann stated that “Crane’s clients are organized crime figures. When Crane’s clients have problems with the Los Angeles Strike Force, they are rarely touched because the current Chief (Jim Henderson) is a .friend and former subordinate of [Crane’s].”
(4) Vann described Henderson as a personal friend of Crane. Vann characterized Henderson as “unusually soft on organized crime and corruption.” Vann cited alleged corruption by Governor Jerry Brown and George Deukmejian as examples of Henderson’s softness on corruption.
(5) Vann stated that the Strike Force had jurisdiction over Hawaii.
(6) Vann submitted documents to Johnson intended to corroborate his story.

Johnson also talked with Chris Harris, an Alcohol, Tobacco, and Firearms Agent, and with George Cooper, a member of the Los Angeles Arson Task Force. Harris disagreed with Vann’s claim that the Strike Force was corrupt, although he did label “unusual” the Strike Force’s delays in prosecutions.

Cooper, according to Johnson, “appeared to really want to ‘open up’ ” but would not do so in front of Harris. Cooper reportedly was quite upset when he discussed an investigation he completed in which the Strike Force delayed four years in obtaining an indictment.

Hal Glickman, a former bail bondsman, confirmed for Johnson that a major organized crime figure had some Strike Force personnel “in his pocket.”

Ron Cohen, a prosecutor for Los Ange-les’s own strike force, told Johnson that he knew “of no personal improprieties in the Federal Strike Force.”

Mark Schorr, a reporter, advised Johnson that “there is probably something to many of Vann’s allegations.”

After reviewing Johnson’s report, John Cusack (Chief of Staff of the House Committee), Representative Rangel, and Johnson all agreed that the allegations were credible and warranted a full investigation. In November 1983, Representative Rangel wrote a letter to United States Attorney General William French Smith on behalf of the Committee. The letter described the Committee’s investigation and Vann’s allegations. As Chair of the Committee, Representative Rangel “strongly urge[d]” the Attorney General “to undertake a vigorous investigation” of the matter.

Less than two weeks after receiving the Committee’s letter, the Justice Department commenced an investigation into the charges. The Committee also continued its own investigation. In January 1984, the Committee sent its Chief Counsel, Richard Lowe III, and a staff investigator, John Capers, to Hawaii to interview Donald Car-stensen, an investigator for Honolulu’s organized crime task force. In their report, Lowe and Capers stated that “Officer Car-stensen substantiated the allegations of Jerry Vann.” Officer Carstensen also complained about numerous dismissals of cases against alleged organized crime figures by the local U.S. Attorney’s Office and the state Attorney General. Lowe and Capers both believed that the Strike Force had jurisdiction over or played some role in Operations Fireball and CoCo in Hawaii. A letter written by Lowe to the Justice Department revealed that the Committee believed this new information “reinforced the allegations made by Mr. Vann.”

In June 1984, Vann contacted Jerry Seper, a reporter for The Arizona Republic. Vann advised Seper of his allegations concerning corruption in the Strike Force. Vann provided Seper with copies of Johnson’s report, a November 1983 letter from the Justice Department to the Committee confirming that it would investigate, the charges, and a case report by Capers. During his discussion of the allegations, Vann told Seper that he thought Crane and [1516]*1516Henderson both were “unusually soft” on organized crime and that the two prosecutors were friends or associates of certain organized crime figures.

Seper subsequently received from a confidential source at the Committee copies of Chair Rangel’s letter to the Justice Department and a report on the Carstensen interview. Committee Chief of Staff Cusack confirmed the authenticity of these reports. Cusack also stated that “We wouldn’t have taken the trouble to write the letter [to the Justice Department] if we didn’t think there was a problem. We just don’t write letters like that every day.”

Seper contacted James Henderson on June 10, 1984. Henderson denied the charges and denied any knowledge of the Committee’s investigation.

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Crane v. the Arizona Republic
972 F.2d 1511 (Ninth Circuit, 1992)

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Bluebook (online)
972 F.2d 1511, 1992 WL 201035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crane-v-arizona-republic-ca9-1992.