National Right to Life Political Action Committee v. Friends of Bryan

741 F. Supp. 807, 1990 U.S. Dist. LEXIS 6715, 1990 WL 71533
CourtDistrict Court, D. Nevada
DecidedMay 2, 1990
DocketCV-S-88-865-PMP (RJJ)
StatusPublished
Cited by4 cases

This text of 741 F. Supp. 807 (National Right to Life Political Action Committee v. Friends of Bryan) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Right to Life Political Action Committee v. Friends of Bryan, 741 F. Supp. 807, 1990 U.S. Dist. LEXIS 6715, 1990 WL 71533 (D. Nev. 1990).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

PRO, District Judge.

The 1988 United States Senate race in Nevada between incumbent United States Senator Chic Hecht and Governor Richard Bryan provides the background for the case now before the Court.

As the November 8, 1988, election drew near, various political action committees interceded with political advertisements on various campaign issues which tended to support one candidate over the other. One such political action committee, registered with the Federal Election Commission and based in Washington, D.C., was Plaintiff National Right to Life Political Action Committee. In the late stages of the United States Senate campaign in Nevada, Plaintiff developed a thirty-second radio advertisement and a sixty-second television advertisement which purported to set forth the positions of Senator Hecht and Governor Bryan on the subject of legislation to publicly fund abortion. 1

*810 Plaintiff used the services of its media buyer, InfoCision Management Corporation of Akron, Ohio, to place the political advertisements with Nevada radio and television stations for broadcast between October 31 and November 7, 1988.

In response, on October 31, 1988, Defendant Friends for Bryan, a political campaign committee registered with the Federal Election Commission and with its primary place of business being in the State of Nevada, sent a letter with enclosures (Defendant’s Exhibit Q, attached hereto and hereinafter referred to as “the letter”) to every radio station in the State of Nevada which challenged the accuracy of Plaintiffs advertisement and requested that the stations “refuse to run these political advertisements which are inaccurate and distort the candidates’ positions.” On November 1, 1988, Defendant caused the identical letter to be sent to each television station in the State of Nevada.

On November 3, 1988, Plaintiff commenced this action by filing a complaint alleging that Defendant’s letters to Nevada radio and television stations constituted tortious interference with contractual relations and libel against Plaintiff. By its complaint, Plaintiff originally sought compensatory damages and a permanent injunction barring Defendant from further interference with Plaintiff’s contracts with television stations regarding Plaintiff’s political advertisements. 2

On December 8, 1989, the Court entered an Order granting Plaintiff’s Motion to Dismiss its claim for libel set forth in Count II of the Plaintiff’s complaint. On March 19, 1990, trial commenced before the Court sitting without a jury, and concluded on March 22,1990. Post-trial briefs were filed by the parties on April 2, 1990, and closing arguments were heard on April 4, 1990.

Before resolving whether Plaintiff has proved its claim of intentional interference with contractual relations, the Court must address issues raised by Defendant challenging the jurisdiction of the Court which were not asserted by Defendant by appropriate pretrial motion.

I.

Defendant first argues that under Rule 17(b) of the Federal Rules of Civil Procedure, the corporation National Right to Life Committee, Inc., would have been the proper party to bring this action, and that because Plaintiff National Right to Life Political Action Committee is merely a “separate segregated fund” of the corporation National Right to Life Committee, Inc., Plaintiff does not have the capacity or standing to sue in federal court.

Plaintiff responds that as a separate segregated fund, it is a subsidiary of the corporation National Right to Life Committee, Inc., and enjoys a sufficiently independent legal status to sue as a party in this Court. Alternatively, Plaintiff argues that it may maintain this action under its trade name, National Right to Life Political Action Committee, doing business on behalf of the corporation, National Right to Life Committee, Inc.

The Court finds that given the distinct activities of Plaintiff as the political action committee affiliate of the National Right to Life Committee, Inc., the fact that Plaintiff is registered with the Federal Election Commission as a political action committee *811 with a slate of officers distinguishable from those of the corporation, National Right to Life Committee, Inc., and the fact that Plaintiff maintains separate financial records, Plaintiff is sufficiently distinguishable from the corporation, National Right to Life Committee, Inc., so as to maintain this suit as a party plaintiff.

II.

Defendant next contends that Plaintiff is not the real party in interest because the advertising contracts with Nevada radio and television stations to broadcast Plaintiffs political advertisements were entered by Plaintiffs media buyer, InfoCision. Defendant acknowledges that InfoCision entered the advertising contracts as the agent of, or for the benefit of Plaintiff, but argues that because Plaintiff failed to allege an agency or third-party beneficiary theory of recovery, Plaintiff lacks standing to sue.

The Court must reject Defendant’s argument in this regard. As Defendant concedes, the evidence at trial clearly established the existence of an agency relationship between Plaintiff and InfoCision and the advertising contracts entered by InfoCision with members of the media were clearly entered on behalf of and for the benefit of Plaintiff. This is an action in tort, not contract, and it is clear that Defendant’s actions were intended to affect Plaintiff, not Plaintiff’s media buyer, InfoCision. Therefore, Plaintiff is the real party in interest. Restatement (Second) of Torts § 766 comment a (1979). See also M & R Inv. Co., Inc. v. Goldsberry, 101 Nev. 620, 623, 707 P.2d 1143, 1144 (1985).

III.

Recognizing that there is diversity of citizenship between the parties, Defendant nonetheless argues the Court lacks subject matter jurisdiction under 28 U.S.C. § 1332(a) because the amount in controversy does not exceed $10,000.00. Plaintiff responds that the amount in controversy is ordinarily the sum claimed by the Plaintiff in good faith, not the amount a Plaintiff actually recovers.

Over fifty years ago, the United States Supreme Court set forth the standard to be applied in determining the amount in controversy for jurisdictional purposes. In St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 288-89, 58 S.Ct. 586, 590, 82 L.Ed. 845 (1938), the Court stated:

The rule governing dismissal for want of jurisdiction in cases brought in the federal court is that, unless the law gives a different rule, the sum claimed by the plaintiff controls if the claim is apparently made in good faith. It must appear to a legal certainty that the claim is really for less than the jurisdictional amount to justify dismissal.

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Cite This Page — Counsel Stack

Bluebook (online)
741 F. Supp. 807, 1990 U.S. Dist. LEXIS 6715, 1990 WL 71533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-right-to-life-political-action-committee-v-friends-of-bryan-nvd-1990.