Little Rock Newspapers, Inc. v. Fitzhugh

954 S.W.2d 914, 330 Ark. 561, 26 Media L. Rep. (BNA) 1801, 1997 Ark. LEXIS 640
CourtSupreme Court of Arkansas
DecidedNovember 13, 1997
Docket96-1050
StatusPublished
Cited by20 cases

This text of 954 S.W.2d 914 (Little Rock Newspapers, Inc. v. Fitzhugh) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Little Rock Newspapers, Inc. v. Fitzhugh, 954 S.W.2d 914, 330 Ark. 561, 26 Media L. Rep. (BNA) 1801, 1997 Ark. LEXIS 640 (Ark. 1997).

Opinions

Donald L. Corbin, Justice.

Appellant Little Rock Newspapers, Inc., appeals the judgment of the Sebastian County Circuit Court imposing the jury’s verdict awarding $50,000 in damages to Appellee J. Michael Fitzhugh for his defamation claim against Appellant’s newspaper, the Arkansas Democrat-Gazette. Our jurisdiction of this appeal is pursuant to Ark. Sup. Ct. R. l-2(a)(15), as it presents questions concerning the law of torts. Appellant raises four points for reversal. We find no error and affirm.

The record reflects that on Monday, June 20, 1994, the Arkansas Democrat-Gazette printed an article on the front page of its “Arkansas” section entitled, “Whitewater counsel kicks off first prosecution.” There were two photographs included in the article ■ — • one of Charles Matthews, with the caption “Matthews” beneath it and one of Appellee, with the caption “Fitzhugh” beneath it. The substance of the article is as follows:

Wliitewater counsel kicks off first prosecution
The first case to be prosecuted by the office of Robert Fiske Jr., the special counsel in the Whitewater Development Corp. affair, is to start in U.S. District Court at Little Rock today.
But don’t look for the prominent political figures usually associated with Fiske’s investigation.
The defendants are Charles Matthews and Eugene Fitzhugh. The men are little known outside Little Rock, and their attorneys argue the case doesn’t belong under Fiske’s jurisdiction.
Matthews, Fitzhugh and former Pulaski County Municipal Judge David Hale were indicted by a federal grand jury last fall for conspiring to defraud the Small Business Administration of $900,000 through Hale’s federally licensed lending company, Capital Management Services Inc. of Little Rock.
Capital Management Services was supposed to raise capital to match money from the SBA and then make loans to socially and economically disadvantaged companies.and individuals.
Fitzhugh’s attorney, Randy Satterfield of Litde Rock, said his client’s defense is that “he’s pretty much a victim of some big scheme that Hale had going on.”
Hale helped fuel calls for the-Whitewater investigation — and Fiske’s eventual appointment in January by Attorney General Janet Reno — by alleging that then-Gov. Bill Clinton pressured him during the 1980s to make a $300,000 loan to Susan McDougal.
The president and first lady Hillary Rodham Clinton were partners with James and Susan McDougal from 1978-92 in Whitewater, a 230-acre residential development along the White River in Marion County.
James McDougal also owned Madison Guaranty Savings & Loan Association, which failed in 1989 at a cost to taxpayers of at least $47 million. Fiske is investigating allegations that money was transferred illegally from Madison accounts to Whitewater accounts.
Hale pleaded guilty to two felonies in March. His sentencing is on hold while the government evaluates his cooperation with Fiske’s investigation.
Fitzhugh and Matthews have said that if anybody defrauded the SBA, it was Hale. Yet their link to Whitewater — however small — will ensure national news coverage of their trial.
Satterfield said he has been contacted by reporters from The New York Times, USA Today and other publications.
Fitzhugh has tried unsuccessfully to have Fiske disqualified from the case, arguing the Whitewater connection has turned the trial into a “media event.”
The prosecution will be handled by two associate counsels in Fiske’s office.
Fitzhugh and Matthews are accused of using a wealthy Shreveport family’s money to help Hale misrepresent the amount of private capital held by his company. That misrepresentation allegedly allowed the company to qualify improperly for $900,000 from the SBA.
Matthews and Fitzhugh split $250,000 as their payoff, the government contends.
Fitzhugh, a Little Rock lawyer, represented a member of the Shreveport family.
Matthews, a North Little Rock lawyer and former securities dealer, handled some of the family’s investments. Matthews was a state representative and chairman of the Arkansas Democratic Party in the late 1960s.
Court papers filed by the government and defense lawyers recently indicate how the trial may proceed.
The govermnent says it can make its case without testimony from Hale.
Fiske’s office, however, said it expects defense attorneys to call Hale as a witness to discredit him.
Prosecutors have asked U.S. District Judge Stephen Reasoner to limit Hale’s testimony about his crimes to prevent distracting the jury from the “relevant issues” in the case.
“The obvious ploy is to set up Hale as a straw man,” prosecutors argued last week in a motion to limit testimony about Hale’s confessed crimes.
Satterfield said he has subpoenaed Hale.
“There’s a lot of activity about limiting his testimony, so I don’t know” whether to call him, the lawyer said.
The government also has argued that unlimited examination of Hale could damage Fiske’s investigation of other matters.
A spokesman for Fiske’s office said the prosecution hopes to present its case “within a week” but declined to respond to other questions.
Satterfield said he expects the trial to last no more than a week.

After receiving telephone calls from Appellee, the newspaper printed a correction the following day. The correction, which was printed in the lower left corner of the front page of the “Arkansas” section under the headline of “Getting it straight,” included a true photograph of Eugene Fitzhugh. The correction read:

On Monday on the front of the Arkansas section a photo of J. Michael Fitzhugh was run in place of a photo of Eugene Fitzhugh. The correct photo of Eugene Fitzhugh is shown.

Appellee filed his complaint against Appellant on September 2, 1994, alleging that the juxtaposition of his photograph against the headline and accompanying article was defamatory per se and was the result of gross carelessness on the part of Appellant’s employees. In its answer, Appellant asserted that Appellee was a public figure and that, as such, it was necessary for Appellee to prove that its employees acted with actual malice in placing Appellee’s photograph in the Whitewater article.

I. Sufficiency of the Evidence

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Little Rock Newspapers, Inc. v. Fitzhugh
954 S.W.2d 914 (Supreme Court of Arkansas, 1997)

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Bluebook (online)
954 S.W.2d 914, 330 Ark. 561, 26 Media L. Rep. (BNA) 1801, 1997 Ark. LEXIS 640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-rock-newspapers-inc-v-fitzhugh-ark-1997.