Diamond v. American Family Corp.

368 S.E.2d 350, 186 Ga. App. 681, 1988 Ga. App. LEXIS 436, 1988 WL 52129
CourtCourt of Appeals of Georgia
DecidedMarch 18, 1988
Docket75091, 75092
StatusPublished
Cited by20 cases

This text of 368 S.E.2d 350 (Diamond v. American Family Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diamond v. American Family Corp., 368 S.E.2d 350, 186 Ga. App. 681, 1988 Ga. App. LEXIS 436, 1988 WL 52129 (Ga. Ct. App. 1988).

Opinions

Pope, Judge.

Plaintiff Diamond, a real estate broker, claims he was defamed by a television news broadcast by WTOC-TV, a Savannah television station. The facts show Diamond was instrumental in arranging a real estate transaction in which Hardee’s restaurant purchased a tract of land on which to build a restaurant on Wilmington Island. Upon purchasing the land, Hardee’s contracted to have it cleared in preparation for construction. In the process of clearing the tract the contractor also mistakenly removed from adjoining county property a stand of trees and other foliage which served as a natural buffer zone between the commercial area in which the restaurant was to be built and a nearby residential neighborhood. The improper clearing was the subject of heated local debate and was reported on the local news.

The first report concerning the controversy was broadcast on December 4, 1984. In preparing for a second broadcast on December 5, the reporter learned that Hardee’s was investigating the possibility that it might have paid for land actually owned by the county. In the course of the December 5 broadcast, the reporter stated: “The county appears to be somewhat responsible, but the mistake apparently began months ago when this man, Bob Diamond, sold a bigger tract of land than his client actually owned. That’s a mistake the restaurant people are sure to investigate.” In actuality, the mistake was made when a surveyor hired by Hardee’s placed surveying stakes ten feet over the actual property line onto land owned by the county. In a final broadcast on December 7, the reporter reported the surveyor’s mistake and added that Hardee’s was satisfied they had not paid for land not belonging to them.

Plaintiff Diamond filed this action for defamation against American Savannah Broadcasting Company and American Family Corporation, alleging they were the owners and operators of station WTOCTV. Defendant American Family Corporation moved for summary judgment in reliance upon an affidavit by its chief operating officer attesting that it was a separate legal entity from American Savannah Broadcasting Company and that it did not own or operate the television station. Both defendants moved for summary judgment on the ground the objectionable report was conditionally privileged because it concerned a matter of public interest. Since the undisputed evi[682]*682dence showed the statement was made with no actual malice or ill will, defendants argued the plaintiff could not prevail on this claim. The lower court granted summary judgment to American Family Corporation. It also granted partial summary judgment to American Savannah Broadcasting Company as to plaintiff’s claim for punitive damages. However, summary judgment was denied as to plaintiffs claim for general or actual damages. Plaintiff Diamond appeals the grant of summary judgment to American Family Corporation and the grant of partial summary judgment to defendants concerning his claim for punitive damages (Case No. 75091). Defendant American Savannah Broadcasting Company cross-appeals the order denying its motion for summary judgment to plaintiffs claim as a whole (Case No. 75092).

Case No. 75092

1. The trial court granted partial summary judgment to defendant American Savannah Broadcasting Company as to plaintiff Diamond’s claim for punitive damages. However, the court denied summary judgment on the complaint as a whole and defendant appeals. Defendant claims the allegedly defamatory statements made in its broadcast were privileged because they pertained to a matter of general or public interest. According to defendant, under these circumstances a plaintiff in a defamation case may recover damages only if he proves the statements were made with actual malice. Because the undisputed evidence shows defendant entertained “no serious doubts” as to the truth of the statements in question, defendant argues it is entitled to judgment as a matter of law.

The evidence clearly establishes the broadcast in question concerned a matter of public interest. However, the evidence also shows plaintiff is a private individual and not a public figure. Therefore, the fact that the broadcast concerned a matter of public interest is not the determining factor for deciding whether actual malice must be shown in order for the individual to recover in a defamation action.

When a defamation action is brought by an individual against a member of the press, the court is faced with competing legal interests. On the one hand, the individual has a common law right to the protection of his own good name. On the other hand, the First Amendment of the United States Constitution guarantees freedom of speech and the press. Common law imposed strict liability for defamatory statements. However, “a rule of strict liability that compels a publisher or broadcaster to guarantee the accuracy of his factual assertions may lead to intolerable self-censorship.” Gertz v. Robert Welch, Inc., 418 U. S. 323, 340 (94 SC 2997, 41 LE2d 289) (1974). In balancing these two competing interests the United States Supreme Court [683]*683has long recognized a conditional privilege for statements made about either a private or public figure if those statements concerned the individual’s involvement in an event of public or general interest. See, e.g., Rosenbloom v. Metromedia, 403 U. S. 29 (91 SC 1811, 29 LE2d 296) (1971); New York Times Co. v. Sullivan, 376 U. S. 254 (84 SC 710, 11 LE2d 686) (1964). Prior to the Gertz decision the privilege in favor of freedom of speech was so strong that when a statement concerned a matter of public interest, the individual could recover for defamation only if he could prove the statement was made with “actual malice,” which is defined as knowledge of the statement’s falsity or reckless disregard for the truth of the statement. New York Times Co. v. Sullivan, supra.

However, in Gertz the Supreme Court retreated from its earlier position and held, in effect, that the controlling factor in determining the standard of review for defamatory statements is not whether the statement relates to an issue of public or general concern but whether the remark was made about a private individual as opposed to a public official or figure. The court rejected the “public or general interest” standard for determining the applicability of the New York Times “actual malice” test to private defamation actions. Instead, the court stated: “[W]e conclude that the state interest in compensating injury to the reputation of private individuals requires that a different rule should obtain with respect to them.” 418 U. S. at 343, supra. Therefore, the Supreme Court ruled there is no longer a constitutional requirement for a private individual to prove malice in order to recover for defamation. “We hold that, so long as they do not impose liability without fault, the states may define for themselves the appropriate standard of liability for a publisher or broadcaster of defamatory falsehood injurious to a private individual.” Id. at 347. Statements made by the press about a private individual which concern a matter of public interest are still granted a conditional privilege to the extent that such statements are not subject to “strict liability” which might otherwise be imposed at common law.

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Diamond v. American Family Corp.
368 S.E.2d 350 (Court of Appeals of Georgia, 1988)

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Bluebook (online)
368 S.E.2d 350, 186 Ga. App. 681, 1988 Ga. App. LEXIS 436, 1988 WL 52129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diamond-v-american-family-corp-gactapp-1988.