Gunder's Auto Center v. State Farm Insurance

699 F. Supp. 2d 1339, 2010 U.S. Dist. LEXIS 29379, 2010 WL 1174211
CourtDistrict Court, M.D. Florida
DecidedMarch 26, 2010
Docket8:09-cv-456-T-23MAP
StatusPublished

This text of 699 F. Supp. 2d 1339 (Gunder's Auto Center v. State Farm Insurance) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gunder's Auto Center v. State Farm Insurance, 699 F. Supp. 2d 1339, 2010 U.S. Dist. LEXIS 29379, 2010 WL 1174211 (M.D. Fla. 2010).

Opinion

ORDER

STEVEN D. MERRYDAY, District Judge.

The plaintiff sues (Doc. 5) State Farm Mutual Automobile Insurance Company (“State Farm”) for slander. State Farm moves (Doc. 49) for summary judgment, and the plaintiff responds (Doc. 56) in opposition. At a March 24, 2010, hearing, each party presented argument on the motion.

Background

The plaintiff is an automobile repair shop in Polk County, Florida. State Farm issues automobile insurance policies to Florida customers. The plaintiff alleges that in 2004 State Farm began “steering” the plaintiffs current and potential customers to competing repair shops. State Farm allegedly “intentionally and unjustifiably interfered with [the plaintiffs] relationships with its customers by falsely stating to [the plaintiffs] customers and otherwise prospective customers ... that [the plaintiff] was ‘overcharging’ its customers” and that the plaintiff repaired vehicles in an untimely, inefficient, and “substandard” manner. (Doc. 5, ¶ 19) The plaintiff alleges that State Farm’s “false, defamatory, and tortious statements have injured [the plaintiff] by ‘steering’ prospective ... customers away from using [the plaintiff] to repair their vehicles.” (Doc. 5, ¶ 10) The complaint identifies by name three “prospective customers” who “were State Farm insureds and would have had their vehicles repaired [by the plaintiff], in lieu of another automobile repair shop, but for” State Farm’s false statements. (Doc. 5, ¶ 10)

*1341 Discussion

To recover for slander, the plaintiff must show “1) that the defendant published a false statement; 2) about the plaintiff; 3) to a third party; and 4) the plaintiff suffered damages as a result of the publication of the statement.” Furmanite Am., Inc. v. T.D. Williamson, Inc., 506 F.Supp.2d 1134, 1140 (M.D.Fla.2007). In response to the motion for summary judgment, the plaintiff submits affidavits from several prospective customers, each of whom avers that he would have commissioned the plaintiff to repair his vehicle but decided to use a different auto repair shop after hearing a State Farm agent utter a false statement about the plaintiff. For example, Glen Weekly was involved in an accident in 2006 while insured by State Farm. Weekly informed a State Farm representative that Weekly wanted to have the plaintiff repair Weekly’s vehicle. Weekly avers that the State Farm representative “responded by stating ... that Gunder’s was overcharging customers. The State Farm representative then stated that my only option was State Farm’s shop ... in Lakeland, Florida.” (Doc. 62-6). The plaintiff alleges that this statement is false because the plaintiff never charges more than the “prevailing competitive market rate.” The plaintiff submits affidavits from other repair shops in the area stating that State Farm routinely pays claims from other repair shops with rates similar to or greater than the rates charged by the plaintiff.

State Farm argues that even if State Farm agents uttered false statements about the plaintiff, the statements are privileged. Under Florida law:

“A communication made in good faith on any subject matter by one having an interest therein, or in reference to which he has a duty, is privileged if made to a person having a corresponding interest or duty, even though it contains matter which would otherwise be actionable, and though the duty is not a legal one but only a moral or social obligation.”

Nodar v. Galbreath, 462 So.2d 803, 809 (Fla.1984) (quoting 19 Fla. Jur.2d Defamation and Privacy § 58 (1980)). State Farm argues that the statements are privileged because “State Farm was acting as an insurer and was communicating with a party seeking benefits under the insurance contract about an issue in which they have a common interest — the prompt and full payment of the repairs.” (Doc. 49 at 15) State Farm published each allegedly defamatory statement to a State Farm insured in response to the insured’s request for benefits under an insurance policy. Each statement concerns the quality, timeliness, or value of the plaintiffs automobile repairs — subjects about which the insured and State Farm share a “corresponding interest.” 1 Accordingly, State Farm’s statements are privileged. See, e.g., Ex Parte Blue Cross & Blue Shield of Ala., 773 So.2d 475, 479 (Ala.2000) (finding an insurance company’s statements to its insureds qualifiedly privileged; the insurance company “owed each of its insureds an explanation for the denial of payment for the particular procedures and, likewise, [the insurance company] had an interest in the explanations and each of its insureds had a corresponding interest.”).

Although the statements are privileged, the plaintiff may recover by showing that State Farm uttered the statements with “express malice.” Defined as “ill will, hostility, [or] evil intention to defame and injure,” express malice “is a very high standard for a plaintiff to meet.” Shaw v. *1342 R.J. Reynolds Tobacco Co., 818 F.Supp. 1539, 1542 (M.D.Fla.1993). The Florida Supreme Court defines “express malice” as follows:

Where a person speaks upon a privileged occasion, but the speaker is motivated more by a desire to harm the person defamed than by a purpose to protect the personal or social interest giving rise to the privilege, then it can be said that there was express malice and the privilege is destroyed. Strong, angry, or intemperate words do not alone show express malice; rather, there must be a showing that the speaker used his privileged position “to gratify his malevolence.” Myers v. Hodges, 53 Fla. 197, 213, 44 So. 357, 362 (1907). See also Sussman v. Damian, 355 So.2d 809 (Fla. 3d DCA 1977). If the occasion of the communication is privileged because of a proper interest to be protected, and the defamer is motivated by a desire to protect that interest, he does not forfeit the privilege merely because he also in fact feels hostility or ill will toward the plaintiff. Coleman v. Newark Morning Ledger Co., 29 N.J. 357, 149 A.2d 193 (1959); Restatement (Second) of Torts §§ 599, 603 (comment a) (1976). The incidental gratification of personal feelings of indignation is not sufficient to defeat the privilege where the primary motivation is within the scope of the privilege....
“In cases of qualifiedly privileged publications the presumption ... of malice from the publication of libelous language does not prevail. The burden of proof is changed, and, in order for the plaintiff to recover, he is called upon affirmatively and expressly to show malice in the publisher. This malice may be inferred from the language itself, or may be proven by extrinsic circumstances. While the malice may be inferred from the communication, it is not inferable from the mere fact that the statements are untrue. The existence or nonexistence of such malice, where the facts are controverted, and there is evidence upon the subject, is a question of fact for a jury.”

Nodar, 462 So.2d at 810-12 (quoting Coogler v. Rhodes, 38 Fla. 240, 21 So.

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Related

Nodar v. Galbreath
462 So. 2d 803 (Supreme Court of Florida, 1984)
Shaw v. R.J. Reynolds Tobacco Co.
818 F. Supp. 1539 (M.D. Florida, 1993)
Loeb v. Geronemus
66 So. 2d 241 (Supreme Court of Florida, 1953)
Furmanite America, Inc. v. T.D. Williamson, Inc.
506 F. Supp. 2d 1134 (M.D. Florida, 2007)
Ex Parte Blue Cross and Blue Shield of Al.
773 So. 2d 475 (Supreme Court of Alabama, 2000)
Brown v. Fawcett Publications, Inc.
196 So. 2d 465 (District Court of Appeal of Florida, 1967)
Sussman v. Damian
355 So. 2d 809 (District Court of Appeal of Florida, 1977)
Coleman v. Newark Morning Ledger Co.
149 A.2d 193 (Supreme Court of New Jersey, 1959)
Coogler v. Rhodes
38 Fla. 240 (Supreme Court of Florida, 1896)
Myers v. Hodges
53 Fla. 197 (Supreme Court of Florida, 1907)

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Bluebook (online)
699 F. Supp. 2d 1339, 2010 U.S. Dist. LEXIS 29379, 2010 WL 1174211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gunders-auto-center-v-state-farm-insurance-flmd-2010.