Nevada Independent Broadcasting Corp. v. Allen

664 P.2d 337, 99 Nev. 404, 9 Media L. Rep. (BNA) 1769, 37 A.L.R. 4th 1070, 1983 Nev. LEXIS 463
CourtNevada Supreme Court
DecidedMay 27, 1983
Docket13469
StatusPublished
Cited by65 cases

This text of 664 P.2d 337 (Nevada Independent Broadcasting Corp. v. Allen) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nevada Independent Broadcasting Corp. v. Allen, 664 P.2d 337, 99 Nev. 404, 9 Media L. Rep. (BNA) 1769, 37 A.L.R. 4th 1070, 1983 Nev. LEXIS 463 (Neb. 1983).

Opinion

*408 OPINION

By the Court,

Springer, J.:

This appeal arises out of a jury verdict and judgment of $675,000 in general damages awarded to respondent Allen and against appellants (to be called “Hernstadt”) for defamation of character.

Statement of the Facts

This slander suit arose out of a televised political question-answer program during the 1978 Nevada primary campaign. Allen was running against Robert List in the Republican gubernatorial primary. Allen had contracted with Golden West Advertising Agency, a Las Vegas firm, to handle his campaign. On September 11, 1978, the eve of the primary election, Allen appeared on a program for candidates on the Las Vegas station KVVU-TV (Channel 5). The station is owned by appellant Nevada Independent Broadcasting Corporation (NIBC). Moderator for the candidate’s program was appellant William Hernstadt, who held 94 percent of the stock in NIBC.

During the afternoon prior to the television broadcast, Hernstadt discovered that a check from Allen’s advertising agency, Golden West, had been returned to the station because of insufficient funds. The check, in the amount of $697.00, had been issued to pay for Allen’s political advertising. That evening, during a live broadcást, Hernstadt questioned Allen concerning the check and made some additional remarks about the check. Hernstadt’s statements were as follows: He initially accused Allen of passing a check with insufficient funds; then he mentioned Golden West, Allen’s advertising agency. Later in the program Hernstadt questioned what a political candidate who didn’t pay his bills would do if allowed to handle state funds. Finally, he referred to another candidate as “honorable” in a context which would permit the implication that Allen was not honorable. These comments are set out in full in the margin 1 : The court has viewed the video tape of the described episode.

During a commercial break, Allen’s son, his campaign manager, demanded an apology. Hernstadt acknowledged the *409 demand to the television audience but did not then make an apology. Later Allen demanded in writing that NIBC publish a correction. After the station and Allen were unable to agree on an appropriate correction, the station issued its own version of a correction.

This suit followed. The case was tried to a jury which returned a verdict for Allen, awarding general damages of $675,000 plus interest and costs. Appellants filed a motion for a new trial, a motion for judgment notwithstanding the verdict, and a motion to amend the judgment. Appellants appeal from denial of these motions.

Failure to Prove Slander Per Se

Hernstadt correctly argues that since there was no proof of special damages, Allen’s case must be slander per se or he has no case. We are of the opinion that Allen has made out a case of slander per se.

To constitute slander per se, the alleged defamation must be oral and must fall into one of four categories: (1) that the plaintiff committed a crime; (2) that the plaintiff has contracted a loathsome disease; (3) that a woman is unchaste; or, (4) the allegation must be one which would tend to injure the plaintiff in his or her trade, business, profession or office. Branda v. Sanford, 97 Nev. 643, 637 P.2d 1223 (1981).

Hernstadt urges that Allen had no basis for claiming slander perse on the basis of injury to his professional reputation. Two reasons are stated for this claim. First, at the time of the campaign, Allen’s only occupation was that of owner of a mobile home park in Carson City; therefore, since he was a non-incumbent, he had no political career which could have been injured. Second, Hernstadt argues that the “bounced check” charge could not injure Allen’s reputation as a mobile home park owner.

We disagree. At the time the remarks were made Allen was a candidate, and the statements were such that they could have injured Allen’s reputation as a candidate for public office. They were thus actionable as slander perse. In the case of Devany v. Quill, 64 N.Y.S.2d 733 (N.Y.App.Div. 1946), it was held that defamatory words uttered aganst a non-incumbent candidate constituted slander per se if the words would tend to cause persons not to vote for the candidate. This rule has been followed in Restatement (Second) of Torts § 573 comment b (1977). Hernstadt cites no authority to the contrary.

Hernstadt urges that Allen could not make a case for slander *410 per se unless Allen first proved that the defamatory comments implied “an habitual course of similar conduct, or the want of the qualities or skill that the public is reasonably entitled to expect. . . .” See Restatement (Second) Torts § 573 comment d (1977). Hernstadt argues that since he alleged only a single act of misconduct, namely, delivery of a bad check, the defamation could not constitute slander per se.

There were, of course, three remarks — that Allen’s check was no good, that because Allen did not pay his debts it was questionable how Allen might handle state funds, and that Allen was not an honorable candidate. Assuming at this point that these comments were defamatory, taken as a whole they clearly imply a want of qualities expected of a public officer and support a case for slander per se.

Fact or Opinion

We agree with appellants that statements of opinion as opposed to statements of fact are not actionable. As stated in Gertz v. Robert Welch, Inc., 418 U.S. 323, 339 (1974), under the first amendment, there is no such thing as a false idea, and the societal value of robust debate militates against a restriction of the expression of ideas and opinions.

Separating factual statements from opinion is thus a critical issue in defamation cases. The rule for making the determination is more easily stated than applied: whether a reasonable person would be likely to understand the remark as an expression of the source’s opinion or as a statement of existing fact. See Masburn v. Collin, 355 So.2d 879, 885 (La. 1977). In cases involving political comment, there is a strong inclination to determine the remarks to be opinion rather than fact. R. Sack, Libel, Slander, and Related Problems 160 (1980). Although ordinarily the fact/opinion issue is a question of law for the court, where the statement is ambiguous, the issue must be left to the jury’s determination. Good Gov’t Group, Inc., v. Hogard, 586 P.2d 572, 576 (Cal. 1978), cert. denied, 441 U.S. 961 (1979). 2

*411 A major difficulty in defamation cases arises when the comment is neither pure fact nor pure opinion.

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664 P.2d 337, 99 Nev. 404, 9 Media L. Rep. (BNA) 1769, 37 A.L.R. 4th 1070, 1983 Nev. LEXIS 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nevada-independent-broadcasting-corp-v-allen-nev-1983.