Images Hair Solutions Medical Center, a division of Images, Inc.

Superior Court of Delaware·Decided January 29, 2016·No. N13C-05-077 WCC·Published

Opinion

IN THE SUPERIOR COURT

OF THE STATE OF DELAWARE

IMAGES HAIR SOLUTIONS ) MEDICAL CENTER, a division ) Of IMAGES, INC., and ) TOM PRENTICE, )

)

Plaintiffs, )

v. ) C.A. No. N13C-05-077 WCC )

FOX TELEVISION STATIONS, ) INC., a Delaware corporation, and ) JOYCE EVANS, )

)

Defendants. )

Submitted: October 5, 2015 Decided: January 29, 2016

Defendants’ Motion for Summary Judgment -- GRANTED MEMORANDUM OPINION

Austen C. Endersby, Esquire, Michael K. Twersky, Esquire, Fox Rothschild LLP, 919 N. Market Street, Suite 300, Wilmington, DE 19801. Attorneys for Defendants.

Daniel A. Griffith, Esquire, Whiteford Taylor Preston, LLC, 405 North King Street, Suite 500, Wilmington, DE 19801. Attorney for Plaintiffs.

CARPENTER, J.

Before the Court is Defendants Fox Television Stations, Inc. (“Fox”) and Joyce Evans (“Evans”) (collectively, “Defendants”) joint Motion for Summary Judgment. The Plaintiffs in this matter are Images Hair Solutions Medical Center (“Images”) and Tom Prentice (“Prentice”) (collectively, “Plaintiffs”). On December 20, 2013, the Court granted Defendants’ Motion to Dismiss Plaintiffs’ defamation and false light claims. 1 After discovery, Defendants have moved for summary judgment on Plaintiffs’ remaining claim for tortious interference with prospective business relations. For the foregoing reasons, the Motion will be GRANTED.

BACKGROUND

Tom Prentice, together with his wife Paulette, owned and operated Images, a business offering restorative hair loss treatments.2 The central focus of Plaintiffs’ business model was the MEP-90 Hair Growth Stimulation System (“MEP-90”), a “revolutionary” laser-device recently approved by the FDA to treat androgenetic alopecia in females. 3 After securing start-up financing from an investor and contracting with a medical advisor, the Prentices opened the facility in April 2011. 4 To advertise Images’ services, Plaintiffs purchased airtime on local radio stations

1 Images Hair Sols. Med. Ctr. v. Fox News Network, LLC, 2013 WL 6917138, at *1 (Del. Super. Dec. 20, 2013). 2 Pls. Compl., at 3, ¶ 11. 3 Id. at 4, ¶ ¶ 13-16; Pls. Br. in Opp’n to Defs. Mot. for Summ. J, at 3. 4 Pls. Compl., at 4, ¶¶ 17-19.

and television shows, including Talk Philly on CBS and the 10! Show on NBC, all of which were broadcasted throughout the greater-Philadelphia area. 5 In March 2012, Defendant Joyce Evans, a reporter for Fox News, contacted Plaintiffs about producing and airing a segment on Images' MEP-90 treatments. Evans allegedly assured Plaintiffs that the broadcast would portray Images and the MEP-90 in a positive light. Relying on those assurances, Plaintiffs agreed to participate in the segment, which included interviews with Images’ staff, a demonstration of the MEP-90 treatment on an Images’ patient, and the patient’s testimonial about her results. Following filming, Evans allegedly reiterated the positive nature of the segment and informed Plaintiffs that it would air directly after American Idol, when Fox’s ratings were highest, on May 16, 2012. Given this information, Plaintiffs encouraged their current and prospective customer base to tune into Fox on the night of the broadcast.

The final segment, which the Court has reviewed, was approximately five minutes long and included footage in addition to the scenes filmed at Images, interviews with two doctors, textual explanations of Images’ business, and commentary by Evans. Ultimately, Defendants are alleged to have “manipulated” the raw footage so as to present “Images and the MEP-90 system in the most

5 Id. at 4-5, ¶¶ 20-22.

negative light possible.” 6 Specifically, Plaintiffs claim Defendants selectively edited out a significant amount of the patient’s positive feedback 7 and replaced it with negative commentary by individuals Evans recruited.8 Additionally, Plaintiffs allege the following statements presented “misleading information and factual inaccuracies:”9

(1) Evans's statement that she was “following up” on the “buzz” implying that she had conducted a prior investigation on Images, which she had not.

6 Pl. Resp. in Opp’n to Def. Mot. for Summ. J., at 6. 7 Id. at 6-7. Specifically, Plaintiffs object to the removal of the following portions of the raw footage with respect to the client’s, Ms. Shahikian, testimonial:

• In the raw footage, Ms. Shahikian said on camera, “I’m not sure about how many treatments but I remember running in here in the middle of December and telling the girls in the front, ‘Today is the day my hair looks different. Today is the day that I’m okay to come out with the wind blowing’”. That positive comment in the raw footage was cut.

Ms. Shahikian also said on camera in the raw footage that the MEP-90 device is “just something you have to try.” This comment was cut out.

• Ms. Shahikian stated on camera in the raw footage “I feel better. I wake up every day, I do my hair, nobody is staring at me.” This positive comment about the MEP-90 device from the raw footage was cut as well.

• In reflecting on the positive results she received, Ms. Shahikian said in the raw footage “How do you put a price on that?” This positive evaluation was also edited out.

• In the raw footage, Ms. Shahikian said “I realize I can’t turn back the clock to where I used to be, but at least let me be able to go out and feel good.” This statement was also edited out.

• In the raw footage, Ms. Shahikian stated “Not only am I growing new hair and I can see that from a number of different angles, but what I’ve got is healthier. There were two different textures of hair on my head not too long ago, oh yeah.” This comment was edited out of the final broadcast.

• The raw footage had a comparison of Ms. Shahikian’s hair before and after her treatment with the MEP-90 device with Ms. Shahikian stating “Look at my picture. Look at me now.” That portion of the raw footage was edited out.

• In the raw footage, Mr. Prentice principal of Images described the process of how Images’ customers receive treatment. That description stated only that customers receive oversight from Images’ physician, “Dr. Luke.”

Id. (internal citations omitted). 8 Id. at 7. 9 Id. at 8.

(2) Evans's statements that Kim was “cooking under the hood” and that she became “flushed” during treatment; thus, portraying the treatment as uncomfortable.

(3) The medical doctor's statements that “many if not all” of the positive results were attributable to the topical solution and not the MEP–90 machine.

(4) Evans's statement that patients at Images were required to go to their family doctor for examination and blood-work prior to being treated.

(5) Evans's comparison of Images to “internet medicine.”

(6) The medical doctor's statement that he did not believe the MEP–90 treatment was worth $50 a treatment. 10

Plaintiffs claim their business and reputation was “destroyed” as a result of the broadcast.11 Specifically, they allege Images realized an “obvious and precipitous drop in business,” lost profits, and lost value in its unsuccessful attempts to sell its locations for total damages of approximately $5.2 million. 12 On May 9, 2013, Plaintiffs filed a Complaint asserting claims against Defendants for (1) defamation; (2) false light and invasion of privacy; and (3) tortious interference with prospective business relations. Defendants moved to dismiss Plaintiffs Complaint in response on July, 15, 2013. The Court heard oral

10 Id. at 8-9.

11 Id. at 9.

12 Id. at 10 & Ex. C. Plaintiffs also cite two emails they received as consequences of the broadcast:

• Ms. Shahikian, who experienced positive results from the procedure (depicted in the broadcast as falsely positive results) wrote to Defendants, saying “…Watching your piece that night sickened me!! Why didn’t you tell me this was going to be some one-sided debate? You chose words from sentences that made me look angry, not pleased,…What you did to Tom and Paulette was just downright WRONG!!!

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Images Hair Solutions Medical Center, a division of Images, Inc., (Del. Ct. App. 2016).

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