Mathis v. Daly

695 S.E.2d 807, 205 N.C. App. 200, 38 Media L. Rep. (BNA) 2161, 2010 N.C. App. LEXIS 1157
CourtCourt of Appeals of North Carolina
DecidedJuly 6, 2010
DocketCOA09-1696
StatusPublished
Cited by2 cases

This text of 695 S.E.2d 807 (Mathis v. Daly) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mathis v. Daly, 695 S.E.2d 807, 205 N.C. App. 200, 38 Media L. Rep. (BNA) 2161, 2010 N.C. App. LEXIS 1157 (N.C. Ct. App. 2010).

Opinions

CALABRIA, Judge.

Constance Daly (“defendant”) appeals the trial court’s order denying her motion for summary judgment. We dismiss the appeal as interlocutory.

[201]*201I. Background

Defendant was president of the Board of Directors (“the Board”) of the Haywood County Council on Aging (“the HCCA”). Denise Mathis (“plaintiff’) was first employed by the HCCA in 1999. On 3 February 2004, the Board changed plaintiff’s job title to CEO/Executive Director of the HCCA.

In September 2004, Haywood County experienced severe flooding as a result of Hurricanes Frances and Ivan. As a result, Governor Michael Easley designated disaster relief funds to Haywood County. In order to receive these funds, Haywood County was required to form an “Unmet Needs Committee” to distribute the relief funds through the Haywood County Finance Office.

In October 2004, the HCCA submitted requests to several agencies for flood relief funds. The HCCA received funds from several sources, including a grant of $65,000 from the United Way of Haywood County. While plaintiff was administering these flood relief funds, the HCCA experienced severe financial difficulties. After questions arose as to whether plaintiff mismanaged or otherwise misappropriated funds, the Board terminated plaintiff from employment. Plaintiff sought unemployment compensation from the Employment Securities Commission (“the ESC”).

Following plaintiff’s dismissal, the Haywood County District Attorney investigated plaintiff’s financial management of the HCCA. As a result, on 7 August 2006, plaintiff was indicted on fourteen counts of embezzlement. The State later dismissed these charges. However, while the investigation and charges were still pending, members of the Board spoke to several local newspapers regarding plaintiff’s financial management of the HCCA.

On 12 February 2007, plaintiff and her husband, Alan Mathis, instituted an action in'Haywood County Superior Court against defendant and others (collectively “the trial defendants”) seeking compensation for, inter alia, defamatory statements made about plaintiff following plaintiff’s termination of employment. The trial defendants filed an answer on 13 April 2007, which asserted fourteen affirmative defenses, including a defense, based upon the U.S. Constitution, that plaintiff was “either a public official, a public figure, or a limited purpose public figure when the allegedly defamatory statements were made.”

[202]*202On 5 August 2009, defendant separately filed a motion for summary judgment. After a hearing on the motion, the trial court entered an order denying defendant’s motion on 1 October 2009. Defendant appeals.

II. Interlocutory Anneal

As an initial matter, we note that defendant appeals from an interlocutory order. “An order or judgment is interlocutory if it is made during the pendency of an action and does not dispose of the case but requires further action by the trial court in order to finally determine the entire controversy.” N.C. Dept. of Transp. v. Page, 119 N.C. App. 730, 733, 460 S.E.2d 332, 334 (1995).

An appeal from an interlocutory’order is permissible only if (1) the trial court certified the order under Rule 54(b) of the Rules of Civil Procedure, or (2) the order affects a substantial right that would be lost without immediate review. The burden rests on the appellant to establish the basis for an interlocutory appeal.

Dailey v. Popma, 191 N.C. App. 64, 67-68, 662 S.E.2d 12, 15 (2008) (internal quotations and citations omitted). There is no Rule 54(b) certification in the instant case, and therefore immediate appeal of the trial court’s order is only permitted if the order affects a substantial right.

Defendant argues that the trial court’s order denying her motion for summary judgment affects defendant’s rights under the First Amendment to the United States Constitution. Defendant is correct that this Court has previously held that “[a]n order implicating a party’s First Amendment rights affects a substantial right.” Sherrill v. Amerada Hess Corp., 130 N.C. App. 711, 719, 504 S.E.2d 802, 807 (1998). However, defendant has failed to establish that her First Amendment rights were implicated in the instant case.

Our Courts have made clear that there are limited circumstances when an action based upon alleged defamatory speech is “elevated from a state’s common law to having at least some guarantees of protection under the First Amendment of the Constitution.” Neill Grading & Constr. Co. v. Lingafelt, 168 N.C. App. 36, 42, 606 S.E.2d 734, 738 (2005). “Generally, this degree of First Amendment protection is governed by two factors: first, the individual capacity of the plaintiff; and, second, the content of the speech.” Id.

“[T]he First Amendment sets limits on a public figure’s ability to recover for defamation.” Wells v. Liddy, 186 F.3d 505, 532 (4th Cir. [203]*2031999). “[A] defamation plaintiff who is a public official or public figure ‘may recover injury to reputation only on clear and convincing proof that the defamatory falsehood was made with knowledge of its falsity or with reckless disregard for the truth[.]’ ” Gaunt v. Pittaway, 139 N.C. App. 778, 785, 534 S.E.2d 660, 665 (2000) (quoting Gertz v. Roben Welch, Inc., 418 U.S. 323, 342, 41 L. Ed. 2d 789, 807, 94 S. Ct. 2997, 3008 (1974)). However, “where the plaintiff is a private figure, and the speech at issue is of private concern, a state court is free to apply its governing common law without implicating First Amendment concerns.” Neill, 168 N.C. App. at 43, 606 S.E.2d at 739.

A. Limited Purpose Public Figure

Defendant argues that, for purposes of defendant’s alleged defamatory statements, plaintiff is a limited purpose public figure, and therefore, this case implicates the First Amendment. We disagree.

[A] limited purpose public figure is one who voluntarily injects himself or is drawn into a particular public controversy and thereby becomes a public figure for a limited range of issues . . . [T]he Supreme Court developed a two-part inquiry for determining whether a defamation plaintiff is a limited purpose public figure: (1) was there a particular “public controversy” that gave rise to the alleged defamation and (2) was the nature and extent of the plaintiff’s participation in that particular controversy sufficient to justify “public figure” status?

Gaunt, 139 N.C. App. at 785, 534 S.E.2d at 665 (internal quotations and citations omitted). “Under North Carolina law, an individual may become a limited purpose public figure by his purposeful activity amounting to a thrusting of his personality into the ‘vortex’ of an important public controversy.” Boyce & Isley, PLLC v.

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

Related

Sood v. Sood
732 S.E.2d 603 (Court of Appeals of North Carolina, 2012)
Mathis v. Daly
695 S.E.2d 807 (Court of Appeals of North Carolina, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
695 S.E.2d 807, 205 N.C. App. 200, 38 Media L. Rep. (BNA) 2161, 2010 N.C. App. LEXIS 1157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mathis-v-daly-ncctapp-2010.