D.H. Griffin Wrecking Company, Inc. v. 1031 Canal Development, LLC

District Court, E.D. Louisiana·Decided March 19, 2021·No. 2:20-cv-01051·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

D.H. GRIFFIN WRECKING COMPANY, INC. CIVIL ACTION

VERSUS NO. 20-1051

1031 CANAL DEVELOPMENT, LLC SECTION "L" (3)

ORDER & REASONS Before the Court are motions by Defendant 1031 Canal Development, LLC, (“1031 Canal”) to strike, or alternatively, to dismiss or for summary judgment on Plaintiff D.H. Griffin Wrecking Co. (“Griffin”)’s defamation claims. R. Docs. 82, 83. Plaintiff opposes the motion, and Defendant replied. R. Docs. 87, 102. Having considered the applicable law and heard oral argument, the Court now rules as follows. I. BACKGROUND This case arises out of the demolition of a planned Hard Rock Hotel after its partial collapse on October 12, 2019. The Court assumes familiarity with the factual and procedural background of the case. See generally R. Doc. 110. After the collapse, 1031 Canal and Griffin entered into a “Binding Memorandum of Understanding of Demolition (Project)” (“MOU”) on January 14, 2020 concerning the demolition of the building located at 1031 Canal Street (the “Building”) through implosion. R. Doc. 1-1. The MOU provided, in pertinent part, that Griffin would “provide $50 million of liability insurance dedicated to the Project” and that the parties would formalize the agreement within 7 days. Id. at 2. After further negotiations, the parties failed to reach an agreement, in part because Griffin was only able to secure a commitment for $22 million in insurance coverage by March 25, 2020. Id. ¶¶ 21-23. Relevant to the instant motion, Griffin filed an Amended Complaint alleging three counts of defamation based on the foregoing events. R. Doc. 74. Counts Six and Seven involve allegedly defamatory statements 1031 made as part of this litigation. Specifically, Griffin contends that 1031 Canal defamed them by repeatedly falsely stating that 1) “D.H. Griffin had ulterior motives in

determining the two failed tower cranes needed to be imploded prior to the demolition of the Building” and 2) “D.H. Griffin breached the public trust and is hiding information about the demolition of the two failed tower cranes.” R. Docs. 74 ¶¶ 144, 152. Count Eight asserts a claim that 1031 “defamed D. H. Griffin by repeatedly falsely stating that D.H. Griffin was ‘unable to procure sufficient insurance for the Building demolition.’” Id. 158. II. PRESENT MOTIONS a. Motion to Strike Defendant 1031 Canal now seeks to strike Griffin’s defamation claims under Louisiana Code of Civil Procedure Article 971, also known as Louisiana’s anti-SLAPP statute. R. Doc. 82. Defendant seeks dismissal on the grounds that Counts Six and Seven are premature as a matter of

law, and that Count Eight is “fatally deficient” because “the statements are not false and there is no evidence to support any finding of fault.” R. Doc. 82-1 at 10. It is is an open question, however, whether art. 971 is available in this Court given the Supreme Court’s decision in Shady Grove, which dictates that a federal court should not apply a state law or rule if a Federal Rule of Civil Procedure “answers the same question.” Shady Grove Orthopedic Assocs., P.A. v. Allstate Ins. Co., 559 U.S. 393, 398 (2010).1 After the parties thoroughly briefed the issue, 1031 contended in its

1 The Fifth Circuit has applied article 971 in Louisiana diversity cases in the past; however, it has not revisited the issue since Shady Grove. See Henry v. Lake Charles Am. Press, 566 F.3d 164, 168-69 (5th Cir. 2009) (“Louisiana law, including the nominally-procedural Article 971, governs this diversity case”). But see Klocke v. Watson, 936 F.3d 240 (5th Cir. 2019) (finding that a Texas anti-SLAPP statute does not apply in federal court because Rule 56 precludes “any other [procedural] device for determining whether a claim supported by sufficient evidence will avoid pretrial dismissal.”) In Klocke, the Fifth Circuit distinguished the Texas statute from art. 917, explaining “the comparable conflict between the Federal Rules and Louisiana law is less obvious.” 936 F.3d at 248-249. Reply that “the Court need not resolves the issues with Klocke; rather the Motion for Summary Judgment is due to be granted.” R. Doc. 102 at 2. The Court agrees that it need not determine whether art. 971 is applicable at this time, as Griffin’s defamation claims may be properly addressed pursuant to 1031’s motion for summary judgment.

b. Motion to Dismiss, or alternatively, for Summary Judgment As an alternative to the Motion to Strike, 1031 has filed a motion to dismiss or for summary judgment on Griffin’s defamation claims pursuant to Rules 12 and 56 of the Federal Rules of Civil Procedure. R. Doc. 83. 1031 seeks dismissal of Counts Six and Seven because they are premature “under a straightforward application Louisiana law” and Count Eight because the allegedly defamatory statements are true statements of fact. R. Doc. 83-1 at 2. 1031 argues that Count Eight must be dismissed because Griffin can not demonstrate falsity or false. Id. at 18-19. In March

2020, Griffin revealed that it had only obtained $22 million in insurance.2 Based on this representation, 1031 then asserted that Griffin was unable to procure the insurance it agreed to obtain. 1031 maintains these statements were true and that “Griffin’s counsel’s own words can lead to no other conclusion.” Id. at 20. 1031 further insists it did not learn of the April 9 quotes for $52 million until May 1, 2020, after the allegedly defamatory statements were made. As a result, “Griffin cannot succeed on showing any fault.” Id. at 21. Griffin opposes the motion, arguing that genuine issues of fact exist as to (1) whether Griffin ever had an obligation to obtain $50 million in coverage and (2) whether Griffin could obtain $50 million in insurance coverage. R. Doc. 89. First, Griffin argues that issues of fact related

2 In a March 18, 2020 email, Griffin’s counsel stated: “To summarize, the news is not good. To date, Griffin has only been able to amass $12 million of coverage, and that coverage comes at a steep price… As of this writing we do not know how close we can get to $50 million in coverage, or the total premium cost of such coverage.” See R. Doc. 83-1. to the “binding” nature of the MOU preclude summary judgement here.3 Second, Griffin argues that there is a dispute of fact as to “whether 1021 knew or should have known the falsity of its statement that Griffin could not obtain $50 million” because “1031 knew D.H. Griffin actually received an insurance coverage commitment for $50 million in February 2020.” Id. at 18. Griffin

dismisses the evidence offered by 1031 as only showing that “at a particular point in time D.H. Griffin had not yet obtained $50 million in insurance coverage commitments,” not that Griffin could not obtain the $50 million. Id. at 10. In reply, 1031 contends that Griffin has failed to show a genuine issue of material fact with respect to Count Eight. R. Doc. 102 at 3. 1031 also objects to Griffin’s attempt “to expand its defamation claim in Count Eight to encompass the issue of whether it definitively agreed to procure $50 million.” Id. at 4. 1031 argues there “simply cannot be any defamation associated” with an assertion that Griffin committed to procuring $50 million in insurance because the assertion is true and “nothing about such a statement could possibly tend to harm Griffin’s reputation or deter others from dealing with it.” Id. at 4.

III. LAW & ANALYSIS

Free access — add to your briefcase to read the full text and ask questions with AI

D.H. Griffin Wrecking Company, Inc. v. 1031 Canal Development, LLC, (E.D. La. 2021).

D.H. Griffin Wrecking Company, Inc. v. 1031 Canal Development, LLC (D.H. Griffin Wrecking Company, Inc. v. 1031 Canal Development, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Little v. Liquid Air Corp.
37 F.3d 1069 (Fifth Circuit, 1994)
Calbillo v. Cavender Oldsmobile, Inc.
288 F.3d 721 (Fifth Circuit, 2002)
Henry v. Lake Charles American Press, L.L.C.
566 F.3d 164 (Fifth Circuit, 2009)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Ortiz v. Barriffe
523 So. 2d 896 (Louisiana Court of Appeal, 1988)
Doe v. Grant
839 So. 2d 408 (Louisiana Court of Appeal, 2003)
Wyatt v. Elcom of Louisiana, Inc.
792 So. 2d 832 (Louisiana Court of Appeal, 2001)
Wayne Klocke v. University of TX at Arlington
936 F.3d 240 (Fifth Circuit, 2019)
Hoffman v. Bailey
257 F. Supp. 3d 801 (E.D. Louisiana, 2017)