Hearts with Haiti, Inc. v. Kendrick

141 F. Supp. 3d 99, 2015 U.S. Dist. LEXIS 147418, 2015 WL 6662722
CourtDistrict Court, D. Maine
DecidedOctober 30, 2015
Docket2:13-cv-00039-JAW
StatusPublished

This text of 141 F. Supp. 3d 99 (Hearts with Haiti, Inc. v. Kendrick) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hearts with Haiti, Inc. v. Kendrick, 141 F. Supp. 3d 99, 2015 U.S. Dist. LEXIS 147418, 2015 WL 6662722 (D. Me. 2015).

Opinion

[102]*102ORDER ON DEFENDANT’S RULE 59 MOTION FOR A NEW TRIAL OR ALTERNATIVE POST-JUDGMENT RELIEF AND PLAINTIFFS’ RULE 59(e) MOTION TO ALTER OR AMEND JUDGMENT TO INCLUDE PRE-AND POST-JUDGMENT INTEREST, TO INCLUDE THE APRIL 22, 2015 SANCTION, AND TO REFLECT DISMISSAL WITHOUT PREJUDICE OF PLAINTIFFS’ PUNITIVE DAMAGES CLAIMS

John A. Woodcock, Jr., UNITED STATES DISTRICT JUDGE

At some point, Paul Kendrick, a passionate and relentless advocate for abused children, became convinced that Michael Geilenfeld, the founder 'and owner of an orphanage for boys in Haiti, had been sexually abusing some of the boys in his care. Mr. Kendrick not only accused Mr. Geilen-feld of sexual misconduct but also charged Hearts with Haiti, a United States not-for-profit corporation created to raise funds for Mr. Geilenfeld’s orphanage, with enabling Mr. Geilenfeld’s predation. Mr. Geilenfeld and Hearts with Haiti sued Mr. Kendrick in federal court in Maine under various legal theories, most notably defamation.

A little more than two years later, after a rancorous discovery period, the case went to trial on July 6, 2015. It was an emotional and contentious trial. The parties called twenty-five witnesses and introduced over two hundred exhibits into'evidence. Mr. Geilenfeld took the stand and steadfastly denied the charges of child sex abuse; numerous witnesses involved in the orphanage either directly or as fundraisers testified for him. In addition to his own testimony, Mr. Kendrick called seven men as witnesses who testified either in court or by deposition that Mr. Geilenfeld had in fact sexually abused them. With the evidence in irreconcilable conflict, the parties presented the case for resolution to the jury.

On July 23, 2015, after thirteen days of testimony, the jury rendered a verdict-that represented a resounding vindication, for Mr. Geilenfeld. The jury found that Mr. Kendrick had negligently defamed Mr. Geilenfeld and Hearts with Haiti, that he had defamed them knowing that the statements were false or making the statements with reckless disregard to their truth, that he tortiously interfered with their advantageous economic relations, and that he had placed Mr. Geilenfeld in a false light. The jury awarded $7,000,000 to Mr. Geilenfeld and $7,500,000 to Hearts with Haiti.

Post-trial motions followed. Mr. Kendrick seeks a new trial based on asserted legal errors committed by the trial court, demands a steep reduction in the amount of the verdicts, which he contends are excessive, and asks the Court to rescind its earlier sanction order that imposed an $8,000 penalty against Mr. Kendrick. Despite their unconditional Victory, the Plaintiffs are not satisfied either. They filed their own post-trial motion, demanding pre- and post-judgment interest, urging the Court to retain its earlier sanction order of $8,000, and rankling at the Court’s dismissal of their punitive damages count with prejudice.

Except for the motion to revisit the sanctions order, the Court denies Mr. Kendrick’s motions. The Court is not convinced that it erred in allowing the Plaintiffs to present evidence that Mr. Kendrick’s tortious conduct caused Mr. Geilenfeld’s arrest. and imprisonment in Haiti. Turning to the damages awards, the Court will not disturb the considered and unanimous judgment of a federal jury. In the exercise of its discretion, the Court grants the motion to rescind the $8,000 sanction for Mr. Kendrick’s discovery violation with the sole caveat that if the ver-[103]*103diet is substantially altered, the Plaintiffs may return to the Court and reargue the sanctions issue. The Court also grants the Plaintiffs pre-and post-judgment interest as provided by Maine law, excluding a period of prejudgment interest caused by the Plaintiffs’ requested continuances. The Court declines to dismiss the punitive damages count without prejudice unless the verdicts that precipitated the Plaintiffs’ decision not to proceed with the punitive damages count are substantially revised.

I. FACTS

A. The Parties

1. The Plaintiffs

Hearts With Haiti (HWH) is a nonprofit corporation with a mission to provide support to disabled ánd disadvantaged Haitian children. Compl. at 1 (ECF No. 1) (Compl). Michael Geilenfeld, a resident of Pétion-Ville Commune, Port-au-Prince Arrondissement, Republic of Haiti, is the founder and Executive Director of St. Joseph Family of Haiti. Id. ¶ 2. Mr. Geilenfeld has been involved with several organizations that help Haitian children in different ways. Id. ¶¶7-39. HWH was established in 2001 to support these organizations. Id. ¶¶ 40-42.

2. The Defendant

Paul Kendrick is a resident of Freeport, Maine. Id. ¶3. In 2011, after Mr. Kendrick became aware of allegations that Mr. Geilenfeld was abusing Haitian children, according to Mr. Kendrick, he believed the allegations to be true. Mr. Kendrick then engaged in a campaign in which he emailed and published statements to warn numerous third parties about Mr. Geilen-feld’s alleged abuse of children; those third parties included benefactors of HWH. Id. ¶¶ 47-67. See also Order Denying Def.’s Mot. for Partial Summ. J., at 4-42 (ECF No. 237) (Partial Summ. J. Order) (recounting examples of Mr, Kendrick’s communications). Mr. Kendrick also accused HWH of funding Mr. Geilen-feld’s alleged sexual abuse and turning a blind eye to the child sexual abuse allegations despite knowing or having reason to know that Mr. Geilenfeld was sexually abusing children. See Partial Summ. J. Order at 4-42.

B. Procedural History

1. The Initiation of the Lawsuit

Stung by what he claimed were Mr. Kendrick’s false allegations of child sexual abuse, on February 6, 2013, Mr. Geilenfeld and HWH filed suit in this Court against Mr. Kendrick, alleging he had defamed them, had placed Mr. Geilenfeld in a false light,1 and had tortiously interfered with advantageous business relations; the Plaintiffs sought damages against Mr. Kendrick. Compl. at 1-20. On March 8, 2013, Mr. Kendrick answered the Complaint, admitting some and denying other allegations, and asserting, among other affirmative defenses, the affirmative defense of truth or lack of falsity. Defenses and Answer (ECF No. 8).

2. Delay Caused by Mr. Geilenfeld’s Imprisonment

The trial was originally scheduled to begin on October 7, 2014. Trial List (ECF No. 231). On September 23, 2014, counsel for the Plaintiffs" informed the Court that Haitian authorities had arrested Mr. Geil-enfeld in Haiti and the Plaintiffs asked the Court to continue the trial for ninety days. Oral Mot. to Continue (ECF No. 260). On the same day, the Court granted Mr. Geil-enfeld’s motion. Oral Order Granting [104]*104Mot, to Continue Trial for 90 Days (ECF No. 261).

During a sanctions hearing on January 30, 2015, the Court asked Mr. Geilenfeld’s lawyers about his status in Haiti. Tr. of Proceedings 6:24-7:5 (ECF No. 292). Counsel confirmed Mr. Geilenfeld remained imprisoned in Haiti. Id. 7:6-11:7. During subsequent telephone conferences with the Court, the Plaintiffs acknowledged the practical fact that the case could not go forward while Mr. Geilenfeld remained in jail in Haiti. Plaintiffs’ counsel informed the Court that if Mr.

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141 F. Supp. 3d 99, 2015 U.S. Dist. LEXIS 147418, 2015 WL 6662722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hearts-with-haiti-inc-v-kendrick-med-2015.