Khan v. New York Times Co.

269 A.D.2d 74, 710 N.Y.S.2d 41, 29 Media L. Rep. (BNA) 1627, 2000 N.Y. App. Div. LEXIS 7134
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 22, 2000
StatusPublished
Cited by16 cases

This text of 269 A.D.2d 74 (Khan v. New York Times Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Khan v. New York Times Co., 269 A.D.2d 74, 710 N.Y.S.2d 41, 29 Media L. Rep. (BNA) 1627, 2000 N.Y. App. Div. LEXIS 7134 (N.Y. Ct. App. 2000).

Opinion

OPINION OF THE COURT

Andrias, J.

It is undisputed that two New York Times articles written by its reporter, Susan Antilla, and published on October 19, 1993 and January 14, 1994 were false and defamatory in that the first article, in pertinent part, falsely described plaintiff as “a West Coast broker who was recently sued by the SEC and by private investors contending stock fraud,” while the second falsely described him as “a stock promoter * * * who was fined for securities fraud in Canada in 1976.” The first and second causes of action for libel are based on those articles.

As admitted by defendant reporter, the misstatement in the first article was based upon “a mistake made in comprehending” a Wall Street Journal story which mentioned plaintiff and the misstatement in the second was based upon her misreading of another article on the Bloomberg Business News wire service. It is also undisputed that, after the first article, plaintiff phoned Ms. Antilla to inform her that the Securities and Exchange Commission (SEC) had not sued him. A correction to that effect was published six days later. A similar correction to the effect that plaintiff had not been fined for securities fraud in Canada in 1976 was published, at plaintiff’s instance, two days after the second article.

Plaintiff’s third cause of action is based on a January 13, 1994 Orange County Register article, entitled, “Additional Deals Involving Khan Coming to Light.” This article included a subheading which stated, “SEC documents say the ICN shareholder, who is trying to oust its board, did favors for several of his customers.” The article itself constituted an edited version of Ms. Antilla’s January 12th Times article.

Defendants do not dispute that the two Times articles were false and defamatory, the only issue being whether the articles were published with actual malice. This appeal arises from the denial of that part of defendants’ motion for summary judgment seeking dismissal of the first three causes of action for libel as against the Times and Ms. Antilla.

[76]*76In reviewing Ms. Antilla’s explanations for including the false information in her articles, the IAS Court noted that “the difficulty arose from [her] inability to comprehend the accurate published articles on which [she] relied.” The court presented the issue of the case as follows: “Is the record sufficient to pose a triable issue of fact regarding whether the reporter engaged in reckless behavior for a professional investigative journalist under the standard articulated in Times v Sullivan [376 US 254]?”

Based upon the opinion of plaintiffs expert that defendants ignored the basic tenets of journalism: accuracy and fairness, and had acted with reckless disregard for the truth, as well as the fact that, as a matter of “objective reality,” Ms. Antilla misstated her sources, the court denied defendants’ motion, holding that a jury could find that defendants acted with “actual malice.” In this regard, the court distinguished the facts of the instant case from those in Mahoney v Adirondack Publ. Co. (71 NY2d 31), which dealt with a reporter’s eyewitness account of a football game which differed with some of the other witnesses’ perceptions of the same events, in which “the court’s dismissal of the libel claim was predicated on the lack of an objective reality in the source material — exactly the opposite situation as presented herein.”

In so holding, however, the court mistakenly applied an objective standard of gross irresponsibility, which is only applicable to private figures, rather than applying the subjective actual malice standard applicable to a “limited-purpose public figure” such as plaintiff. Inasmuch as these two standards are quite different and since the record contains no evidence that Antilla could not have misunderstood the source of her information as asserted, defendants are entitled to judgment as a matter of law.

While the court correctly defined the constitutional malice standard as set forth in New York Times Co. v Sullivan (supra), it then proceeded to dilute that standard by finding it comparable to the “gross irresponsibility” standard applicable to private persons as set forth by the Court of Appeals in Chapadeau v Utica Observer-Dispatch (38 NY2d 196). Whereas the objective standards of journalism might be relevant to a determination whether defendants satisfied their duty of care under Chapadeau, such evidence is insufficient to establish reckless disregard under the constitutional standard of actual malice.

Where plaintiff is a public figure, he must prove, “by clear and convincing evidence,” that the published material is false [77]*77and that defendant published the material “with actual malice, i.e., with ‘knowledge that it was false or with reckless disregard of whether it was false or not’ ” (Masson v New Yorker Mag., 501 US 496, 510, quoting New York Times Co. v Sullivan, supra, at 280). A “reckless disregard” for the truth requires more than a departure from reasonably prudent conduct (Harte-Hanks Communications v Connaughton, 491 US 657, 688). “There must be sufficient evidence to permit the conclusion that the defendant in fact entertained serious doubts as to the truth of his publication” (St. Amant v Thompson, 390 US 727, 731). The standard set forth by the Supreme Court is a subjective one, requiring that there be sufficient evidence to permit the conclusion that the defendant had a “high degree of awareness of* * * probable falsity” (Garrison v Louisiana, 379 US 64, 74), or must have “entertained serious doubts as to the truth of his publication” (St. Amant v Thompson, supra, at 731).

The constitutional malice standard is to be distinguished from the standard articulated by New York courts applicable to private persons, which permits recovery when a defendant acts “in a grossly irresponsible manner without due consideration for the standards of information gathering and dissemination ordinarily followed by responsible parties” (Chapadeau v Utica Observer-Dispatch, supra, at 199). The Chapadeau standard is a “less demanding” standard, and focuses on the journalist’s satisfaction of objective professional standards, whereas the actual malice test focuses on defendants’ subjective state of mind (see, e.g., Immuno AG. v Moor-Jankowski, 145 AD2d 114, 125, affd 77 NY2d 235).

In addition to mistakenly combining the two standards in setting forth the definition of malice, the IAS Court’s analysis of plaintiffs evidence demonstrates that it did not hold plaintiff to his burden of demonstrating with “convincing clarity” that a reasonable fact finder could find actual malice (Herbert v Lando, 781 F2d 298, 305, cert denied 476 US 1182). The court suggested that a jury could infer “actual malice” from facts showing that Ms. Antilla did not undertake reasonable steps to discover her errors, but an analysis of whether defendant’s actions measure up to reasonable and/or professional standards is irrelevant to the inquiry whether she actually doubted the truth of her assertions.

Contrary to plaintiff-respondent’s argument that the usual summary judgment rules are applicable, summary judgment is particularly favored by New York courts in libel cases (see, [78]*78Freeman v Johnston, 84 NY2d 52, cert denied 513 US 1016; Immuno AG. v Moor-Jankowski, 77 NY2d 235, 256, supra, cert denied 500 US 954). Here, Ms.

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269 A.D.2d 74, 710 N.Y.S.2d 41, 29 Media L. Rep. (BNA) 1627, 2000 N.Y. App. Div. LEXIS 7134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/khan-v-new-york-times-co-nyappdiv-2000.