Imperial Apparel, Ltd. v. Cosmo's Designer Direct, Inc.

853 N.E.2d 770, 367 Ill. App. 3d 48
CourtAppellate Court of Illinois
DecidedJuly 31, 2006
Docket1-05-2744
StatusPublished
Cited by18 cases

This text of 853 N.E.2d 770 (Imperial Apparel, Ltd. v. Cosmo's Designer Direct, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Imperial Apparel, Ltd. v. Cosmo's Designer Direct, Inc., 853 N.E.2d 770, 367 Ill. App. 3d 48 (Ill. Ct. App. 2006).

Opinion

PRESIDING JUSTICE HOFFMAN

delivered the opinion of the court:

The plaintiffs, Imperial Apparel, Ltd. (Imperial), Cyril Rosengarten and Paul Rosengarten, appeal from an order of the circuit court dismissing their five-count complaint for failure to state a cause of action. For the reasons that follow, we affirm in part, reverse in part, and remand this cause for further proceedings.

The facts necessary to an understanding of our resolution of this appeal are not in dispute and are taken exclusively from the plaintiffs’ complaint. Imperial and the defendant Cosmo’s Designer Direct, Inc. (Cosmo), are competitors engaged in selling discounted men’s clothing. As a sales promotion, Cosmo regularly advertised suits and other items of menswear on a “3 for 1” basis. Thereafter, Imperial, in order to compete more effectively, began to advertise its own “3 for 1” sales.

On October 15, 2004, Cosmo ran a full-page advertisement in the Chicago Sun-Times which, in addition to promoting an “8 DAY BLOWOUT SALE,” contained the following column of text which gives rise to this litigation:

“WARNING!
Beware of Cheap Imitations Up North ...
We all know, there is only one ‘America’ in the world
and only one ‘3 for 1’ in the Midwest...and in both cases it was the original thinking of an Italian that made them famous. So to the shameless owners of Empire rags center, east Eden and south of quality, we say...‘Start being kosher...Stop openly copying and coveting your neighbor’s concepts or a hail storm of frozen matzo balls shall deluge your ‘flea market style warehouse.’
Thankfully most readers, like thousands of our customers, possess a taste level that can easily decipher the quality gap between dried cream cheese and real Parmigiano ...or alas we would be wasting ink.
It is laughable how with all the integrity of the ‘Iraq Information Minister’, they brazenly attempt pulling polyester over your eyes by conjuring up a low rent 3 for imitation that has the transparency of a hookers come on...but no matter how they inflate prices and compromise quality, much to their dismay, Cy and his son Paul the plagiarist still remain light years away from delivering anything close to our ‘3 for 1’ values.
Remember, things that sound the same might not necessarily be alike.
Finally, it’s an undisputed fact that when it comes to fine clothing nothing substitutes for the heritage of the land of Columbus, DaVinci and Armani...Hence all that needs to be said is that...
‘They can at best poorly imitate what we create...for we are Italian and they are not!’ ” (Emphasis in original.)

Following the publication of Cosmo’s ad, Imperial along with its president, Paul Rosengarten, and Cyril Rosengarten, one of its employees (collectively referred to as the plaintiffs), filed the instant action against Cosmo and the Chicago Sun-Times, Inc. (Sun-Times). In counts I and II of their complaint, the plaintiffs sought recovery against both defendants on theories of defamation per se and defamation per quod, respectively. Count III was a claim for false light invasion of privacy against Cosmo only. Count IV asserted a cause of action for commercial disparagement against Cosmo and the Sun-Times. Finally, in count V, the plaintiffs sought recovery against Cosmo predicated upon a violation of the Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act) (815 ILCS 505/1 et seq. (West 2004)).

Both Cosmo and the Sun-Times filed motions to dismiss the plaintiffs’ complaint pursuant to section 2 — 615 of the Code of Civil Procedure (Code) (735 ILCS 5/2 — 615 (West 2004)), contending that, for a number of reasons, the claims asserted were substantially insufficient at law. The circuit court granted the defendants’ motions, finding that Cosmo’s ad constituted “non-actionable opinion.” This appeal followed.

Because this matter was disposed of at the trial level in response to the defendants’ section 2 — 615 motions, the only question before this court is whether the dismissed counts state causes of action upon which relief could be granted. Burdinie v. Village of Glendale Heights, 139 Ill. 2d 501, 505, 565 N.E.2d 654 (1990). The issue presented is one of law, and our review is de novo. T&S Signs, Inc. v. Village of Wadsworth, 261 Ill. App. 3d 1080, 1084, 634 N.E.2d 306 (1994).

At the outset of our analysis, we wish to make it quite clear that our function is not to judge the literary merit of Cosmo’s ad or the journalistic standards of a newspaper that would publish such obviously offensive material. Our function is solely to determine whether the ad is legally actionable under any of the theories pled.

In urging affirmance of the dismissal of all of the counts in the plaintiffs’ complaint, the defendants argue that Cosmo’s ad cannot reasonably be interpreted as asserting facts and, as a consequence, is entitled to protection under the first amendment to the United States Constitution (U.S. Const., amend. I). For their part, the plaintiffs argue that the trial court erred in dismissing their claims as the ad can reasonably be interpreted as stating actual facts which impute a want of integrity in the discharge of their employment duties and prejudiced them in their business.

The fact that statements might reasonably be interpreted as defamatory does not entirely resolve the issue of whether they are actionable. A determination must still be made as to whether the statements constitute protected speech under the first amendment. Hopewell v. Vitullo, 299 Ill. App. 3d 513, 517-18, 701 N.E.2d 99 (1998). Statements which do not make factual assertions enjoy first amendment protection and cannot form the basis of a defamation action. Milkovich v. Lorain Journal Co., 497 U.S. 1, 19, Ill L. Ed. 2d 1, 18, 110 S. Ct. 2695, 2706 (1990). However, “[t]he test to determine whether a defamatory statement is constitutionally protected is a restrictive one.” Kolegas v. Heftel Broadcasting Corp., 154 Ill. 2d 1, 14, 607 N.E.2d 201 (1992). Only statements which “cannot ‘reasonably [be] interpreted as stating actual facts’ ” are protected under the first amendment. Milkovich, 497 U.S. at 20, 111 L. Ed. 2d at 19, 110 S. Ct. at 2706, quoting Hustler Magazine, Inc. v. Falwell, 485 U.S. 46, 50, 99 L. Ed. 2d 41, 48, 108 S. Ct. 876, 879 (1988); see also Kolegas, 154 Ill. 2d at 14-15. Whether a particular statement is one of fact or opinion is a question of law. Doherty v. Kahn, 289 Ill. App. 3d 544, 557, 682 N.E.2d 163 (1997).

In determining whether statements are fact or opinion, two approaches have been employed. The Restatement (Second) of Torts sets forth the principal that statements of fact “usually concern the conduct or character of another.” Restatement (Second) of Torts §565, Comment a, at 170 (1977).

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Bluebook (online)
853 N.E.2d 770, 367 Ill. App. 3d 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/imperial-apparel-ltd-v-cosmos-designer-direct-inc-illappct-2006.