Loria v. Regelson

39 Va. Cir. 536, 1996 Va. Cir. LEXIS 214
CourtRichmond County Circuit Court
DecidedAugust 26, 1996
DocketCase No. LA 260-3
StatusPublished
Cited by3 cases

This text of 39 Va. Cir. 536 (Loria v. Regelson) is published on Counsel Stack Legal Research, covering Richmond County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loria v. Regelson, 39 Va. Cir. 536, 1996 Va. Cir. LEXIS 214 (Va. Super. Ct. 1996).

Opinion

By Judge T. J. Markow

The parties appeared by counsel on August 12, 1996, for argument on the Demurrers of the Defendants Regelson and Garrison. The court will rule as to each defendant separately.

The following summarizes the pleadings. Plaintiff began researching various applications for certain steroids involving their immune enhancing properties. He discovered that three steroids held advanced immune enhancing properties. These steroids were discussed with Dr. Regelson, Professor Loria’s colleague at Virginia Commonwealth University (VCU). VCU administrators decided to claim an interest in the products pursuant to the institutional policy concerning patentable products discovered or produced with university materials. After a long search, Neurocrine Bio-sciences, Inc. (NBI) agreed to invest in the product by licensing and contracting for further research.

As time passed, confusion arose. Defendants corresponded with VCU administrators and NBI executives concerning the licensing and research agreements. Loria alleges that in this correspondence, each of these defendants defamed him with the publication of these letters/memoranda in 1994. He claims injury to his reputation and monetary damages. Defendants claim that there was no publication and therefore no defamation. Further, Defendants claim that the statements made by him were matters of perception and opinion, and as such, could not be defamatory.

[537]*5371. Defendant Regelson

Dr. Regelson is an employee of VCU. He also serves as a consultant for NBI. On February 8, 1994, Regelson wrote a letter to Dr. Trani, President of VCU. The letter addressed Dr. Loria and the steroid project. It referenced the NBI project and related events as a “paranoid disaster” and described Loria as a “loose cannon of paranoid proportion” who created a “chien lit” over the University. Regelson further stated that Loria had not been reporting to NBI per the research agreement. However, he admitted that he was not aware of the details. The letter written by Regelson was marked “cc: Bob Garrison, Bill Dewey.” Garrison is the VCU director of intellectual property. Dewey is VCU Vice Provost of Technology Development. Plaintiff’s Second Amended Motion for Judgment states that this letter was also published to Herbert Chermside, the VCU Director of Sponsored Research, and Gary Lyons, the President and Chief Executive Officer of NBI. Additionally, Plaintiff pleaded that the letter was sent to “various persons outside the University,” and, as VCU is a “governmental instrumentality and a public body,” this letter became accessible to the public under the Virginia Freedom of Information Act (Va. Code Ann. § 2.1-342 (Michie 1995)). Plaintiff alleges that this correspondence constituted defamation. Regelson demurs on the grounds that the Second Amended Motion for Judgment fails to state a cause of action, as there was no publication, and that the statements are matters of perception and opinion.

Defamation occurs when there is a publication of a defamatory statement to a third party. There is no publication when a defamatory communication occurs between persons within a corporate entity who have a duty and interest in the subject. Chalkley v. Atlantic Coast Line R. Co., 150 Va. 301, 334 (1928); Montgomery Ward v. Nance, 165 Va. 363, 378-79 (1935). Additionally, no publication occurs where the communication, which regards a matter of corporate interest, remains entirely within a corporate entity. 12A Michie’s Jurisprudence of Virginia and West Virginia, Libel and Slander, § 12 (1989). See also Moore v. American Express, 663 F. Supp. 97, 98 (S.D. W. Va. 1987); Mutafis v. Erie Ins. Exch., 561 F. Supp. 192, 195 (N.D. W. Va. 1983).

Counsel for Regelson argued that the communication between Regelson and other University officials did not constitute publication because it was within a corporate context and about a matter of corporate interest, as well made to persons with attending duties and interests in the subject matter. The court agrees. VCU, as an interested party in the intellectual property, [538]*538has an interest in the licensing of that property and the continued development of the technology through the efforts of itself (in the form of its employees, including Professor Loria) and those of NBI.

The parties were all interested in this subject, as well. As a researcher funded by NBI for a portion of the steroid project, Dr. Regelson held a vested interest in the continuation of the license agreement and continued financial support from NBI for further research. Since he served as an NBI consultant and worked as VCU faculty, Dr. Regelson informed the administration of matters concerning the project and the welfare of the University overall. Dr. Regelson’s activities were not outside the scope of his responsibilities.

Dewey, Garrison, and Chermside all held similar interests in the license and research agreements with NBI and Dr. Loria’s relationship with the company. As Vice Provost of Technology Development, Dewey was impliedly responsible for protecting and overseeing projects involving technological advancements like this steroid project. Likewise, Garrison’s interest in the NBI agreements and Loria’s efforts stemmed from his direct responsibility for licensing intellectual property of the University to third parties. The same holds true for Chermside as the Director of Sponsored Research. Since this project evolved from the license of a new and potentially patentable discovery which led to contracts for sponsored research within the University, Dewey, Garrison, and Chermside are three parties who should be notified of any developments concerning the agreements. Thus the communication with Trani, Dewey, Garrison, and Chermside remained within the University and among those with corresponding interests and duties.

Plaintiff also claims that this letter was published to executives and scientists at NBI, including Gary Lyons. As Regelson was employed as a consultant for NBI and Lyons is the President of NBI, communication between them also constitutes corporate communication amongst interested parties and about a matter of corporate interest. The same is true of any communications with executives and scientists at NBI concerning this matter. Therefore, this does not constitute publication.

Plaintiff also pleads that since the University is a public body, this letter is available to the public. This is not publication, either. Publication is accomplished by uttering the defamation to some third person so as to be heard and understood by such person. Thalhimer Bros. v. Shaw, 156 Va. 863 (1931). That any member of the public had the ability to obtain this letter does not constitute publication. The plaintiff must allege that a per[539]*539son or people outside of the two corporate environments did, in fact, see and read the letter. Since the Plaintiff has not named any such person, this allegation does not constitute publication. See Hines v. Gravins, 136 Va. 313, 318 (1924) (defendant ultimately entitled to know parties to whom publication was made).

Similar claims and demurrers were proffered by the parties concerning a second letter written by Regelson which was dated February 17, 1994.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wines v. Fuller
45 Va. Cir. 299 (Warren County Circuit Court, 1998)
Gross v. Rolen
49 Va. Cir. 529 (Smyth County Circuit Court, 1997)
Childress v. Clement
44 Va. Cir. 169 (Richmond County Circuit Court, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
39 Va. Cir. 536, 1996 Va. Cir. LEXIS 214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loria-v-regelson-vaccrichmondcty-1996.