Fou v. Talofa, Inc.

2 Am. Samoa 3d 152
High Court of American Samoa·Decided June 26, 1998·No. CA No. 62-97·Published

Opinion

ORDER DENYING EACH PARTY’S MOTION FOR RECONSIDERATION OR NEW TRIAL

Plaintiffs Ruta Fou (“Ruta”) and Togaiia Fou (collectively “the Fous”) brought suit against defendant Table, Inc. dba Talofa Video (“Talofa Video”) for defamation in connection with posting a copy of the Fous’ check at Talofa Video’s place of business. The trial was held on October 24, 1997 with counsel for both sides present. On February 9, 1998, we held Talofa Video liable for defamation by libel and awarded the Fous [154] $6,000 in damages, plus ‘actual costs of suit.”

On February 19, 1998, Talofa Video timely moved for reconsideration or new trial. This motion was heard on March 23, 1998. On March 2, 1998, the Fous’ counsel flied an affidavit setting forth $4,072.50 in attorney’s fees as the Fous’ claim for “actual costs of suit.” We advised the Fous’ counsel at the March 23 hearing that “actual costs of suit” does not include attorney’s fees. On March 25, 1998, the Fous moved for reconsideration or new trial on the issues of recovering their attorney’s fees and the adequacy of the damages awarded to them.

Discussion

A. Talofa Video’s Motion

Talofa Video essentially raises three issues in its motion. First, it maintains that two of the court’s factual findings are against the weight of the evidence: (a) that the posted check was publicly displayed and (b) that the posted check conveyed a bad check message. Second, it claims that the posted check was a privileged communication. Third, it argues that, in any event, the posted check could not be libel per se, and the Fous must'therefore prove special damages.

1. Fact Findings

a. Public Display

Talofa Video claims that the check was continuously posted at a location outside of the view of anyone except its employees. It attacks the credibility of the Fous’ witness, the customer who testified that she saw the check in plain view at Talofa Video’s store. We found that by the action of one of Talofa Video’s employees, the Fous’ check became visible to the general public as well as to Talofa Video’s employees. We made this finding after carefully weighing all the testimony, including the customer’s demeanor while testifying, and other evidence. We are not now persuaded in any degree to change this finding.

b. Bad Check Message

Talofa Video insists that even if an employee told the testifying customer that the check was unacceptable,1 the Fous’ check was not necessarily [155] unacceptable as a bad check (a check passed without sufficient fluids or without an account). However, the customer, a storekeeper herself, testified that bad checks are commonly posted by retail stores in American Samoa to remind sales clerks not to accept any more checks from the drawers, and that she thought the Fous’ check was a bad check when she saw it. The bad check perception is clear under the evidence, with or without the employee’s unacceptability statement. We stand by this finding.

2. Privilege

Originally, we summarily concluded that the evidence did not present any genuine privilege issue. While Talofa Video did little, if anything, to advance and develop the privilege issue during the trial, we will address it in appropriate depth now.

Talofa Video asserts that the posted check was a privileged communication under A.S.C.A. § 43.5202, which in relevant part reads:

A privileged publication is one made:
(3) in a communication without malice to a person interested] therein by one who is also interested or by one who stands in such relation to the person interested as to afford a reasonable ground for supposing the motive for the communication [is] innocent or who is requested by the person interested to give the information;

Talofa Video argues that it posted the Fous’ check as a business management measure to inform its employees of its policy not to accept checks drawn on banks in business outside of American Samoa. It claims that the posting for this purpose was a conditionally privileged communication under § 43.5202(3) and thus was exempted from defamation liability.

Under the concept enunciated by § 43.5202(3), a communication published without malice is conditionally privileged when the publisher reasonably believes that the defamatory matter communicated affects a sufficiently important interest of the publisher and the recipient’s knowledge of this information serves to lawfully protect the publisher’s interest. See RESTATEMENT (SECOND) OF TORTS § 594 (1977). The common law used the conditional privilege as a means of “balancing the interest of the defamed person in the protection of his reputation against the interests of the publisher, of third persons and of the public in having the publication take place.” Id. § 594 cmt. b. The conditional privilege is lost if the publisher abused the privilege. Id. § 599.

[156] The law concerning conditional privilege abuse in cases of defamation of private persons was dramatically impacted by Gertz v. Robert Welch, Inc., 418 U.S. 323, 94 S. Ct. 2997, 41 L.Ed.2d 789 (1974). Essentially, the Supreme Court held that under the provisions protecting free speech and press in the First Amendment to the United States Constitution, the states cannot impose liability without fault on the publisher of defamatory matter injurious to a private person. Id., 418 U.S. at 344, 94 S. Ct. at 3009, 41 L.Ed.2d at 809. Article I, § 1 of the Revised Constitution of American Samoa has the same free speech and press provisions.

We conclude that the later posting of the Fous’ check in public view was not privileged. Members of the public were not among the particular recipients of information who needed to know Talofa Video’s off-island check policy. The public’s knowledge of a check conveying the appearances of a bad check did not protect Talofa Video’s licit interests. See discussion in RESTATEMENT (SECOND) OF TORTS Chapter 25, Topic 3, Special Note on Conditional Privileges and the Constitutional Requirement of Fault.

We agree, however, that the initial posting of the Fous’s check to only Talofa Video’s employees served its legitimate business purposes and was conditionally privileged at that point under A.S.C.A. § 43.5202(3). Assuming for discussion that the privilege continued when the check was publicly displayed because the off-island check policy was still conveyed to the employees, Talofa Video remained immune from liability unless the conditional privilege was lost through malicious abuse.

Gertz defined malice as present when the publisher either knows that the published matter is false and defamatory or acts in reckless disregard as to its truth or falsity. Id., 418 U.S. at 330-32, 94 S. Ct. at 3002, 41 L.Ed.2d at 799-801. The RESTATEMENT adopts this standard of malice as the level of abuse resulting in loss of the conditional privilege. Restatement (Second) of Torts § 600. We will apply the same standard in the present case.

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

Fou v. Talofa, Inc., 2 Am. Samoa 3d 152 (amsamoa 1998).

2 Am. Samoa 3d 152 (Fou v. Talofa, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gertz v. Robert Welch, Inc.
418 U.S. 323 (Supreme Court, 1974)
Dun & Bradstreet, Inc. v. Greenmoss Builders, Inc.
472 U.S. 749 (Supreme Court, 1985)