Faigin v. Kelly

978 F. Supp. 420, 26 Media L. Rep. (BNA) 1208, 1997 U.S. Dist. LEXIS 14891, 1997 WL 605870
District Court, D. New Hampshire·Decided October 1, 1997·No. Civil 95-317-SD·Published·Cited by 13 cases

Opinion

ORDER

DEVINE, Senior District Judge.

In this diversity action, plaintiff A.J. Faigin, a sports agent, asserts that he was defamed by statements appearing in an autobiography co-authored by defendants James E. Kelly, a former professional football player, and Vic Carucci, a sportswriter. Presently before the court is defendants’ motion for summary judgment, to which plaintiff objects.

Background

In 1992, defendant Jim Kelly, former quarterback for the Buffalo Bills football team, published his autobiography, Armed and Dangerous, which was co-authored by defendant Vic Carucci, a sports writer for the Buffalo News. The autobiography contains approximately five or six references to plaintiff A. J. Faigin, who served as one of Kelly’s agents from 1983 to 1987. Essentially, those references charge Faigin with untrustworthy conduct in his representation of Kelly and form the basis for Faigin’s cause of action for defamation against Kelly and Carucci.

Faigin co-founded several corporations (“Lustig companies”) with Mr. Greg Lustig and Mr. Kenneth Weinberger. Defendants’ Reply Memorandum at 12; Plaintiffs Exhibit 22.The Lustig companies offered athletes a range of services and consisted of four companies: (1) Lustig Pro Sports (LPS), which provided Kelly with agency services; (2) Consultants Development Group (CDG), which provided Kelly with financial and investment services; (3) Lustig & Faigin Co. L.P.A., a law firm; and (4) Lustig Group. Defendants’ Memorandum at 8. Faigin’s role in the various Lustig companies is disputed. Although Faigin held the title of President of LPS, he maintains that he performed mainly as a contract negotiator for LPS and that his title was merely cosmetic for recruitment purposes. However, it is undisputed that Lustig was the dominant figure of the Lustig companies and controlled most of the financial and investment services provided through CDG.

In 1988, while still a college student, Kelly hired Faigin and Lustig as his agents and attorneys. Faigin and Lustig negotiated Kelly’s first professional football contract with the now-defunct United States Football League team the Houston Gamblers. In 1986 Faigin and Lustig negotiated Kelly’s contract with the Buffalo Bills, creating the highest-paying contract in National Football League (NFL) history to that date. 1

In 1987, Faigin ended his association with Lustig and the Lustig companies to embark on his own sports agency business. Faigin was unable to meet with Kelly to discuss his decision to leave, so he sent Kelly a cassette *423 tape in which he described the reasons behind his split with Lustig, including his knowledge of Lustig’s having double-billed clients. Faigin did, however, remain a shareholder in the various Lustig companies until at least 1991. Defendants’ Reply Memorandum at 10.

At about this time, Kelly’s brother and two friends began noticing some “problems” concerning the business services provided by the Lustig companies. Defendants’ Memorandum at 10. These problems, as described by Kelly, consisted of double-billing him, obtaining a worthless disability insurance policy for him, investing his money in inappropriate or fraudulent investments, unwisely structuring his contract with the Houston Gamblers, and obtaining a two-year prepayment for services in violation of NFL Players Association regulations. As a result, Kelly formally fired Lustig in 1988 and terminated his business with the Lustig companies. Kelly took no formal action with regard to firing Faigin.

In 1989 Kelly filed suit against Lustig, Faigin, Kenneth Weinberger, and others in the United States District Court for the Southern District of Texas claiming, among other things, breach of fiduciary duties owed by agents to their clients. Part of this suit was settled in arbitration, which led to Kelly’s receiving $700,000 from two brokerage firms for improper investments. Kelly voluntarily dismissed his action in 1994 at the prodding of the court due to Lustig’s personal bankruptcy and the belief that the Lustig companies had no financial resources. See Kelly v. Lustig, No. H-89-1931, slip op. at 2 (S.D.Tex.1994). Upon dismissal of this suit, Faigin filed for Rule 11 sanctions against Kelly. The district court awarded Faigin $11,000, sanctioning Kelly for bringing a frivolous lawsuit against Faigin. Kelly’s suit had focused on the issue of improper investments and, since “Kelly’s deposition clearly states his belief that Faigin was responsible solely for the player contract work, not for any investments,” the court concluded that this and “other evidence ... suggests that Faigin was not involved in these decisions and that Kelly was aware of this lack of involvement.” Id. at 4.

Faigin filed the present action against Kelly and Carucci as co-authors of Kelly’s autobiography, Armed and Dangerous, for the allegedly defamatory passages against Faigin.

Discussion

1. Summary Judgment Standard

It is appropriate to grant summary judgment when no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. See Rule 56(c), Fed.R.Civ.P.; Lehman v. Prudential Ins. Co. of Am., 74 F.3d 323, 327 (1st Cir.1996). The court’s function at this stage is to weigh the evidence and determine, not the truth of the matter, but whether there is a genuine issue for trial. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2510-11, 91 L.Ed.2d 202 (1986). To establish a trial-worthy issue, it does not suffice to rest upon mere allegations or denials of the adverse party’s pleadings. See id. at 256, 106 S.Ct. at 2514. Rather, there must be enough competent evidence to allow a trier of fact to find in favor of the non-moving party. See id. at 249, 106 S.Ct. at 2510-11. When the non-moving party bears the burden of persuasion at trial, to avoid summary judgment that party must make a “showing sufficient to establish the existence of [the] elements] essential to [his] case.” Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986). In ruling on summary judgment, the court construes the evidence and draws all justifiable inferences in the non-moving party’s favor. See Anderson, supra, 477 U.S. at 255, 106 S.Ct. at 2513-14.

2. Defamatory Meaning

Faigin claims that the following passage from Kelly’s autobiography constitutes defamation by imputing untrustworthy conduct to Faigin.

I learned my lesson the hard way about whom to trust and whom not to trust in business. I had had complete faith in my first agents, Greg Lustig and A.J. Faigin. Before signing with them out of college, I talked to a bunch of other players they represented and they all said Lustig and *424 Faigin did a good job on their contracts. Even Jack Lambert, the former Steeler great, gave them a strong recommendation.

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Faigin v. Kelly, 978 F. Supp. 420, 26 Media L. Rep. (BNA) 1208, 1997 U.S. Dist. LEXIS 14891, 1997 WL 605870 (D.N.H. 1997).

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