In Re United Press International

106 B.R. 323, 1989 WL 123281
CourtDistrict Court, District of Columbia
DecidedSeptember 22, 1989
DocketCiv. 89-0561 (CRR)
StatusPublished
Cited by5 cases

This text of 106 B.R. 323 (In Re United Press International) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re United Press International, 106 B.R. 323, 1989 WL 123281 (D.D.C. 1989).

Opinion

OPINION

CHARLES R. RICHEY, District Judge.

United Press International (“UPI”), the debtor in this action, has moved for summary judgment on Larry Mehau’s claim for *324 damages. The dispute arises out of allegedly defamatory statements that a UPI reporter sent over the UPI wire in 1977. Mehau, then a member of Hawaii’s Board of Land and Natural Resources, claims that the statements soiled his name by linking him to underworld activity in Hawaii. For the reasons stated herein, UPI’s motion for summary judgment shall be granted.

A. Factual Background

On June 15, 1977, The Valley Isle, a bi-weekly, Honolulu-based newspaper (now defunct), published a story on the recent death of George Helm, a Hawaiian environmental activist. The Valley Isle story strongly implied that Helm and another man had been killed by local underworld figures. The story included an interview with Adolph Helm, George’s brother; Adolph claimed in the interview that George had told him and others before his death that he had unearthed strong evidence of underworld influence in Hawaii politics. Adolph further stated that George had told a group of approximately 100 people that Larry Mehau was the “Godfather” of organized crime in Hawaii. Adolph also recounted an incident at a local restaurant in which, according to George, Mehau had personally threatened to “break George's ass” unless George eeased his efforts to uncover local corruption. George Helm disappeared off the coast of a Hawaiian island on March 7, 1977.

Dennis Stone, a UPI reporter, became aware of the Valley Isle story on the date of its publication. The record indicates that the question of mob influence in Hawaii politics had generated some media interest in the preceding months. Stone had been aware of this interest, and upon learning of the Valley Isle story, he regarded it as an opportunity to “scoop” the competition. 1 Stone immediately called the Maui News newspaper, where an unidentified employee read to him portions of the Valley Isle story. Stone then called the Press Secretary of the Governor of Hawaii and asked for comment on the Valley Isle story. The Press Secretary had no information on the story or its contents. After unsuccessfully attempting to reach Adolph Helm, Stone spoke with the Helms’ father, George Sr., who confirmed that George had discussed threats from Larry Mehau. Based upon these discussions, Stone sent the following story over the national wire:

Adolph Helm ... brother of the missing Hawaiian activist George Helm ... was quoted today in the biweeklyJValley Isle Press as naming State Land Board Big Island member Larry Mehau as the “Godfather” of Hawaii’s underworld crime. Adolph Helm also was quoted as reveling [sic] that his brother, now feared dead, said Mehau threatened him when Helm was a musician at Honolulu’s Gold Coin restaurant. The Helm brothers’ father confirmed that George Helm said he was repeatedly threatened. Before he apparently died, George Helm told his brother he had a lot to reveal about Hawaii’s organized crime. Adolph Helm also reportedly fingered Marcus Lipske, believed the manager of singer Don Ho, as the local underworld’s link with the mainland syndicate. 2

After distributing this first story, Stone was able to make contact with Adolph Helm. Adolph confirmed to Stone that the substance of the Valley Isle story accurately reflected what he had told the Valley Isle reporters. 3 Stone was also able to obtain a copy of the Valley Isle and read the story for himself. He thereafter sent the following over the UPI wire, approximately an hour after the first story:

Adolph Helm, the brother of the missing and feared dead

*325 Hawaiian activist George Helm, revealed today that George Helm told many of his follwers [sic] that State Board of Land and Natural Resources member Larry Mehau of the Big Island is the Godfather of Hawaii’s underworld. Helm, interviewed at his Molokai residence, said his brother told 40 to 50 people prior to a March “invasion” of Kahoolawe that Me-hua [sic] and other people — quote— “higher up” were deeply involved in organized crime. Helm quoted his brother as saying he was planning to expose them and “all the corruption that was happening.” Helm’s apparent death this past March is believed being investigated by Maui County and the FBI. 4

The next day, on June 16, UPI distributed a story detailing Governor George Ari-yoshi’s strong defense of Mehau and his categorical rejection of the Valley Isle storyry

The record indicates that Stone was a relatively inexperienced reporter, and that he distributed the Mehau story on his last day with UPI. It appears that he knew next to nothing of the Valley Isle at the time he distributed his stories. 5 The record further indicates that while the Valley Isle story and Stone’s releases gained the attention of some members of the local media, others deemed the information unreliable and refused to report the Valley Isle story. 6

Mehau brought this defamation action in Hawaii state court against UPI and several other defendants on June 23, 1977. After approximately two years of discovery, the trial court granted summary judgment in UPI’s favor. On appeal, however, the Supreme Court of Hawaii reversed, finding that the record contained sufficient facts from which a reasonable jury might find, under New York Times Co. v. Sullivan, 376 U.S. 254, 270-71, 84 S.Ct. 710, 720-21, 11 L.Ed.2d 686 (1964), that Stone acted with actual malice when he sent the two stories over the UPI wire. Mehau v. Gannett Pacific Corp., 66 Haw. 133, 658 P.2d 312 (1983). The Hawaii Supreme Court’s opinion dealt only with the actual malice standard as applied to the record before it.

On remand, additional discovery led to the dismissal of several defendants. Afterward, the posture of the parties allowed removal of the case to the United States District Court for the District of Hawaii. In April of 1985, after remand and additional discovery, Mehau stipulated to the dismissal of his claims against all non-diverse defendants, leaving only UPI in the case. On May 16, 1985 UPI filed with the state court a Notice of Bankruptcy Petition and Automatic Stay. On May 17, 1985 UPI removed the suit to the United States District Court for the District of Hawaii. In turn, the Bankruptcy Court sua sponte requested a withdrawal of the reference of Mehau’s claim because it raised the prospect of a jury trial. The matter came to this Court, and UPI’s motion for summary judgment is now ripe for decision.

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Cite This Page — Counsel Stack

Bluebook (online)
106 B.R. 323, 1989 WL 123281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-united-press-international-dcd-1989.