El Dia, Inc. v. Rossello

20 F. Supp. 2d 296, 27 Media L. Rep. (BNA) 1043, 1998 U.S. Dist. LEXIS 13746, 1998 WL 564616
District Court, D. Puerto Rico·Decided August 28, 1998·No. CIV. 97-2841 JAF·Published·Cited by 8 cases

Opinion

OPINION AND ORDER

FUSTE, District Judge.

Plaintiffs, El Día, Inc., publisher of Puerto Rico’s principal newspaper, El Nuevo Día, Puerto Rican Cement Company, Inc. (Puerto Rican Cement), and Desarrollos Múltiples Insulares, Inc., bring suit pursuant to 42 U.S.C. § 1983 against Defendants Pedro Rosselló, Press Secretary Pedro Rosario-Ur-daz, Chief of Staff Angel Morey., Secretary of State Norma Burgos, Secretary of Consumer Affairs José A Alicea-Rivera, and members of the Puerto Rico Planning Board Maria Gordillo, José Caballero, and José Ríos-Dávi-la (collectively “Defendants”). Plaintiffs allege that Defendants violated their First-Amendment rights by (1) withdrawing advertising contracts from El Nuevo Día in retaliation for critical news coverage in El Nuevo Día; (2) revoking governmental approval for a Puerto Rican Cement project; (3) revoking approval for a Puerto Rican Cement permit; and (4) threatening Puerto Rican Cement with a fine.

In Count I of the Complaint, Plaintiffs allege that Defendants Rosselló, Morey, and Rosario-Urdaz violated El Dia’s First-Amendment rights. In Court II, Plaintiffs allege that Defendants violated Puerto Rican Cement’s First Amendment rights by retaliating against El Nuevo Dia’s critical coverage of the Rosselló administration by engaging in arbitrary acts against Puerto Rican Cement. In Count III, Plaintiffs allege that Defendants’ retaliatory actions abridged Puerto Rican Cement’s due process rights.

Before the court is Defendants’ Joint Motion for Dismissal of Certain Claims and Brief in Support Thereof. Defendants move for dismissal of certain claims based on the doctrines of absolute and qualified immunity. *300 We find that no Defendant is entitled to absolute immunity from suit by Plaintiffs and that no Defendant is entitled to qualified immunity from suit as to Count I. However, we find that Defendants have qualified immunity from suit for monetary damages in relation to Counts II and III.

The adjudication of a motion to dismiss requires the court to view the facts in the light most favorable to the nonmoving party. This plaintiff-oriented lens guides our review of a motion for qualified immunity as well because the court need determine only if the right allegedly violated was a clearly established one. Anderson v. Creighton, 483 U.S. 635, 639, 107 S.Ct. 3034, 97 L.Ed.2d 523 (1987). This strictly legal inquiry does not require us to chronicle the richly detailed accusations in the complaint. Rather, we sketch an accurate but abbreviated summary of the allegations. See Elder v. Holloway, 510 U.S. 510, 516, 114 S.Ct. 1019, 127 L.Ed.2d 344 (1994) (holding that a qualified immunity inquiry presents a question of law, rather than one of fact).

I.

Facts

El Nuevo Día, the most widely read daily newspaper in Puerto Rico, published investigative reports throughout the early months of 1997, alleging patterns of fraud and waste in the Rosselló Administration. On April 13, 1997, El Nuevo Día published an article examining the first hundred days of Governor Rosselló’s second term, asserting that the Governor had failed in key respects. The following day, Plaintiffs allege, eighteen government agencies began to cancel advertising contracts with El Nuevo Día on orders from Defendant Rosselló and others in the upper echelons of his administration. Defendants allegedly withdrew the Commonwealth’s extensive, lucrative, and recently-confirmed contracts with El Nuevo Día in retaliation for the critical articles published in the newspaper. Furthermore, Plaintiffs allege that Defendants Rosario-Urdaz and Morey pressured the newspaper to change its tone as the Rosselló Administration shifted Commonwealth advertising to the much less-widely distributed competition, while at the same time the Administration publicly claimed its shift was made on a cost-benefit basis. Plaintiffs assert that because El Nue-vo Dia’s cost of advertising per reader is lower than that of the competition, the shift in advertisers could not have been cost effective. Plaintiffs allege that the Administration’s cancellations deprived El Día of five hundred thousand dollars a month in advertising revenue and caused a reduction of El Nuevo Dia’s market share for state and municipal advertising from half to 15%, leaving municipalities as the only remaining governmental advertisers.

The Ferré family owns 100% of El Día, which owns El Nuevo Día and 7% of Puerto Rican Cement. In addition, the Ferré family owns 25% of Puerto Rican Cement. Plaintiffs allege that the Rosselló Administration engaged in a campaign to persecute Puerto Rican Cement in retaliation for El Nuevo Dia’s critical coverage. Plaintiffs allege that the Administration revoked governmental approval for a Puerto Rican Cement project in Vega Alta subsequent to their cancellation of the advertising contracts. Furthermore, Plaintiffs state that another governmental agency revoked a permit for a Puerto Rican Cement project in Guánica. Finally, Plaintiffs state that Defendants threatened to fine Puerto Rican Cement over $2,000,000 for its purportedly improper labeling of its cement bags. Puerto Rican Cement also alleges that Defendants launched a campaign against several of its business interests to punish El Nuevo Dia’s owners (who also own 25% of Puerto Rican Cement) for the paper’s critical press.

II.

Motion to Dismiss Standard

A defendant may move to dismiss an action against it based only on the pleadings for “failure to state a claim upon which relief can be granted_” Fed.R.Civ.P. 12(b)(6). In assessing a motion to dismiss, we must accept all well-pleaded facts as true, and draw all reasonable inferences in favor of the Plaintiff. Aybar v. Crispin-Reyes, 118 F.3d 10, 13 (1st Cir.1997). However, the court will not accept plaintiffs’ unsupported conclusions *301 or interpretations of law. Shaw v. Digital Equipment Corp., 82 F.3d 1194, 1216 (1st Cir.1996). In the motion to dismiss, the only basis proffered by Defendants for dismissal is their protection by official immunity. We, therefore, restrict our discussion to such questions of immunity, deferring substantive bases for dismissal until Defendants so move according to this court’s scheduling orders.

m.

Immunity Standards

In the motion to dismiss, Defendants claim that the doctrines of qualified and absolute immunity mandate the dismissal of Plaintiffs’ claims to the extent that Plaintiffs seek damages from Defendants in their personal capacities.

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El Dia, Inc. v. Rossello, 20 F. Supp. 2d 296, 27 Media L. Rep. (BNA) 1043, 1998 U.S. Dist. LEXIS 13746, 1998 WL 564616 (prd 1998).

20 F. Supp. 2d 296 (El Dia, Inc. v. Rossello) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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