Freeze Right Refrigeration & Air Conditioning Services, Inc. v. City of New York

101 A.D.2d 175, 475 N.Y.S.2d 383, 10 Media L. Rep. (BNA) 2032, 1984 N.Y. App. Div. LEXIS 17800
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 24, 1984
StatusPublished
Cited by54 cases

This text of 101 A.D.2d 175 (Freeze Right Refrigeration & Air Conditioning Services, Inc. v. City of New York) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freeze Right Refrigeration & Air Conditioning Services, Inc. v. City of New York, 101 A.D.2d 175, 475 N.Y.S.2d 383, 10 Media L. Rep. (BNA) 2032, 1984 N.Y. App. Div. LEXIS 17800 (N.Y. Ct. App. 1984).

Opinion

OPINION OF THE COURT

Sullivan, J.

This libel action arises out of the publication of an article in the New York Times concerning an investigation by the New York City Department of Consumer Affairs into the sales practices of air-conditioner repair shops. The Times and its reporter, Ralph Blumenthal, appeal from the denial of their motion for summary judgment dismissing the complaint.

In May, 1978, the Department began an undercover investigation of air-conditioner repair shops, an investigation which, as the Department itself, as well as the Times’ article noted, “was conducted in cooperation with The New York Times.” On July 5, 1978, 16 days prior to public release of the Department’s findings, the Times published a news article, “Air-Conditioners: A Look At Repairs”, written by Mr. Blumenthal who, at the time, was assigned to cover consumer affairs in New York City.

According to the article, the Department purchased a number of new 4,000 and 5,000 B.T.U. portable air conditioners, which were tested and certified to be in proper operating condition by Irving Bachrach, an expert in the repair of air conditioners. A single, easily visible wire was then disconnected on each unit, thereby rendering the cooling compressor inoperable, but leaving the fan working. Department investigators posing as customers thereafter presented the air conditioners for repair at randomly selected shops, among which was Freeze Right. After the “repairs” were made, the units were reinspected by Bachrach and the results recorded in the Department’s official reports, which were the basis of the Times’ article.

The article reported that 7 out of the 11 air-conditioner repair shops surveyed misdiagnosed the problem or [177]*177charged for unnecessary and costly repairs. Under 11 separate headings, each with the name of the shop and its address, the repairs found by Bachrach to have actually been performed at the shop were reported, as well as, in some cases, the comments by shop personnel after they were advised of the test findings by Blumenthal. The full text of the portion of the article concerning Freeze Right is as follows:

“Freeze Right Refrigeration, 1225 Foster Avenue, Brooklyn — Unit brought in June 5. Mr. Crichton [the Department investigator], calling for an estimate the next day, said he was told the fan motor ‘was shot — you need a new fan motor.’ The charge was set at $92.60, including $10 for the estimate. The unit was picked up June 9, and the bill, for $93, specified ‘replace fan motor.’ Mr. Crichton asked for the old motor back and was given what he was told was that motor.
“According to the post-service analysis, the terminal wire had been loosely restored. However, Mr. Bachrach [the Department expert] certified that ‘the motor in the unit was the original and bore the identifying marks.’ He added: ‘The repair shop did not replace the motor as claimed.’ Nor was the motor that had been returned to Mr. Crichton actually from his unit — it was made by Fasco Industries, according to its markings.
“ ‘The motor was changed,’ insisted David Malina, the company’s manager. He maintained later, however, that there had been a mistake in returning the proper motor to Mr. Crichton and that he now had the motor that had been removed from the unit. However, the serial number he cited did not match the one certified as the original.” Freeze Right was one of seven repair shops cited for alleged violations of the Consumer Protection Law.

After the Times’ publication and the Department’s subsequent release, Bachrach, prompted by Freeze Right’s denial of the administrative charges and its attorneys’ prepublication letter alerting the Times to Freeze Right’s contention that a new motor had indeed been installed and that a lawsuit would be brought if the charges were published, reinspected the unit. Contrary to his initial finding that the motor in the repaired unit bore the original [178]*178markings, Bachrach concluded, on the basis of an extra lead wire, that the motor had indeed been replaced, but consistent with his earlier findings, he confirmed that the motor which had been returned was not the original. The Times refused to retract. Bachrach, who had been injured in an automobile accident at about the time the administrative hearings were to begin, died, and the charges against Freeze Right were dropped.

Freeze Right and four members of the Malina family1 served a single cause of action complaint2 seeking $10,000,000 in damages from the Times, Blumenthal, the City of New York and the Department. Simultaneous with the service of their answers, the Times and Blumenthal moved for summary judgment dismissing the complaint on the ground that the July 5, 1978 article was absolutely privileged under section 74 of the Civil Rights Law as a fair and accurate report of an official proceeding. The municipal defendants did not participate in that motion.

On February 6,1980, Special Term (Tyler, J.), denied the motion on the ground that unresolved factual issues relating to the alleged participation of Mr. Blumenthal in the Department’s investigation precluded a determination as to whether the allegedly libelous article was a report of an official proceeding.

In March, 1982, the municipal defendants moved to dismiss the complaint pursuant to CPLR 3211 (subd [a], par 7) on the basis of the absolute immunity that protects governmental agencies and officials from suits based on defamatory statements issued in the discharge of their official duties (see Ward Telecommunications & Computer Servs. v State of New York, 42 NY2d 289). Alternatively, they moved for summary judgment based on the qualified privilege that attaches to communications fairly made by persons or entities in the discharge of a private or public [179]*179duty, legal or moral (see Shapiro v Health Ins. Plan, 7 NY2d 56). The affidavit of the Department’s staff attorney, which set forth in detail the sequence of events in the Department’s investigation of Freeze Eight, made it absolutely clear that neither the Times nor Mr. Blumenthal played any role whatever in the investigation or the preparation of the Department report.

Moreover, the affidavit also demonstrated that the only factual error in that report — that Freeze Right had not replaced the air-conditioner motor — was the result of a mistake by the Department’s expert. The municipal defendants also established that this error was not discovered until after the issuance of the Department’s press release and publication of the Times’ article.

Utilizing the information contained in the municipal defendants’ moving papers and Blumenthal’s own sworn denial of any involvement in the Freeze Right investigation, the Times and Blumenthal cross-moved for summary judgment. As in their initial motion, they asserted the absolute privilege which attaches to a report of official proceedings under section 74 of the Civil Rights Law. In addition, for the first time, they moved on the basis of a constitutionally based qualified privilege. Plaintiffs opposed on the same ground as on the first motion, that the investigation had not been an official proceeding due to the Times’ participation therein, and on the further ground that the Times’ defendants should not be permitted fragmented and successive motions for summary judgment.

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101 A.D.2d 175, 475 N.Y.S.2d 383, 10 Media L. Rep. (BNA) 2032, 1984 N.Y. App. Div. LEXIS 17800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeze-right-refrigeration-air-conditioning-services-inc-v-city-of-new-nyappdiv-1984.