Norman v. Borison

994 A.2d 1019, 192 Md. App. 405, 2010 Md. App. LEXIS 77
CourtCourt of Special Appeals of Maryland
DecidedMay 7, 2010
Docket0054 September Term, 2009
StatusPublished
Cited by16 cases

This text of 994 A.2d 1019 (Norman v. Borison) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norman v. Borison, 994 A.2d 1019, 192 Md. App. 405, 2010 Md. App. LEXIS 77 (Md. Ct. App. 2010).

Opinion

WRIGHT, Judge.

Appellant, Stephen Norman (“Norman”), filed suit in the Circuit Court for Montgomery County alleging that he was defamed by statements made by appellees 1 in connection with a lawsuit currently pending before the United States District Court for the District of Maryland. Appellees filed motions to dismiss, and after conducting a hearing, the circuit court dismissed all counts of the lawsuit. Norman noted this appeal, presenting the following questions for our consideration: 2

*410 I. Did the trial court erroneously dismiss appellant’s claims since appellant was repeatedly personally referred to in the appellees’ second amended federal complaint, and the defamation of a small unique company may give rise to personal claims for defamation when the facts alleged are such that a reasonable person could understand that the defamatory comments referred to appellant or when there are allegations that persons familiar with the situation understood the comments referred to appellant?
II. Did the trial court err in finding absolute privilege extends to all pleadings in a suit when the pleadings are published to the press and on the internet, entities and forums not connected to the underlying judicial proceeding?
III. Was the publication of a previously filed, but not yet available to the public, judicial complaint to the press and on the internet by the attorneys who drafted the underlying pleading protected by the fair reporting privilege when there was no judicial action in the case and the attorneys self reported the pleadings they drafted without solicitation from the press in a matter in which they had a substantial financial interest, and where there are allegations the publication was committed with malice?
IV. Did the appellant sufficiently allege falsity when falsity was either specifically alleged in all counts, was alleged by reference to the averments in prior paragraphs, or by including allegations that the defamatory remarks in all counts were made with malice?

We conclude that appellant does not have standing to sue for defamation, and that the absolute privilege extends to the allegedly defamatory statements, thereby answering “no” to *411 questions I and II. We therefore affirm the judgment of the circuit court and need not address questions III and IV.

FACTUAL & PROCEDURAL BACKGROUND The Parties

Norman was the owner, operator and attorney for Sussex Title, LLC 3 (“Sussex”) (formerly known as CAP Title, LLC) from November 2001 to December 18, 2008. Alexander Chaudhry and Ali Farahpour are Norman’s former business partners in Sussex. Appellees are attorneys who filed a class action lawsuit against various companies alleging mortgage fraud. Appellees, Scott Borison and Janet Legg, are attorneys with the Legg Law Firm, LLC. Appellee, Phillip Robinson, is the executive director of Civil Justice, Inc., a non-profit legal services organization affiliated with the University of Maryland School of Law. Appellee, Peter Holland, is an attorney with the Holland Law Firm, P.C. Benjamin Carney is an attorney formerly employed at the Holland Law Firm, P.C. Carney was not working for the Holland Law Firm when appellant filed his defamation case against appellees.

The Class Action Litigation

On June 18, 2007, appellees filed a class action suit on behalf of several hundred homeowners, alleging that the Metropolitan Money Store, along with several other companies and real estate professionals, engaged in mortgage fraud. The action also alleged wire fraud, mail fraud, and Racketeer Influenced and Corrupt Organization Act (“RICO”) 4 claims. The suit was originally filed in the Circuit Court for Prince George’s County on June 18, 2007. Sussex was named as a Defendant; however, neither Norman nor any other owner or employee of Sussex was named as a defendant nor identified by name in *412 the body of the complaint. On July 24, 2007, appellees voluntarily dismissed the case and filed a new class action in the United States District Court for the District of Maryland, captioned Proctor, et al. v. Metropolitan Money Store, et al. The Federal Complaint again named Sussex, and also Chaudhry as a defendant, but Norman was not named as a defendant or identified by name elsewhere in the complaint.

On January 21, 2008, appellees filed a first amended complaint, adding Farahpour and Wilbur Ballesteros as defendants and dropping Sussex, which had recently filed for bankruptcy protection. 5 Ballesteros was a Sussex employee who acted as the settlement agent and notary public in the class transactions facilitated by Sussex. Norman was not named as a defendant or identified by name in the first amended complaint; however, the complaint contained allegations that “anyone at Sussex” could have discovered the scheme, including “the respective principals” and the “owners and employees” of Sussex. The first amended complaint was ultimately dismissed with leave to re-file in light of the new pleading standards in federal court established by Bell Atl. Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Proctor v. Metro. Money Store Corp., 579 F.Supp.2d 724, 730-31, 745 (D.Md.2008).

On November 14, 2008, appellees filed a second amended complaint. It named Chaudhry and Farahpour as defendants, but did not name Ballesteros, Sussex, or Norman as defendants. However, for the first time, Norman was mentioned by name as an owner of Sussex. The references to Norman in the second complaint are as follows:

18. ... The payments to Ballesteros were items paid out of the share of monthly proceeds to Farahpour, Chaudhry and Norman.
29. Sussex is an entity owned and controlled by Farahpour, Chaudhry, and a third person, Steven Norman *413 [sic]. It had offices in the same location as Money Tree Funding. Sussex changed its name from CapTitle and filed for bankruptcy in the U.S. Bankruptcy Court of Maryland in late 2007. Based on testimony of Norman in connection with the bankruptcy case, Sussex was operated for the financial benefit of the three owners since Ali Farahpour would review the company’s records and make an equal monthly distribution to each of the three based on the money received by the company during the given month after payment of expenses and leave some amount of reserve for future expenses.
61. Wilbur Ballesteros was paid a salary out of Chaudhry, Farahpour and Norman’s share of revenues generated by the operation of Sussex as well as a bonus per settlement in which he was involved.
102.

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

Related

Skipper v. CareFirst Blue Choice
Court of Special Appeals of Maryland, 2025
Mayor & City Cncl of Balt. v. Wallace
Court of Special Appeals of Maryland, 2024
Jones v. Ward
Court of Special Appeals of Maryland, 2022
Green v. Comm'n on Judicial Disabilities
247 Md. App. 591 (Court of Special Appeals of Maryland, 2020)
Patel v. Board of License Commissioners
146 A.3d 1178 (Court of Special Appeals of Maryland, 2016)
In re: Adoption/G'ship of L.B. and I.L.
145 A.3d 655 (Court of Special Appeals of Maryland, 2016)
Holden v. University System of Maryland
112 A.3d 1100 (Court of Special Appeals of Maryland, 2015)
Beyond Systems, Inc. v. Kraft Foods, Inc.
972 F. Supp. 2d 748 (D. Maryland, 2013)
State v. Phillips
68 A.3d 51 (Court of Special Appeals of Maryland, 2013)
Long Green Valley Ass'n v. Bellevale Farms, Inc.
46 A.3d 473 (Court of Special Appeals of Maryland, 2012)
Maddox v. Cohn
20 A.3d 153 (Court of Special Appeals of Maryland, 2011)
Norman v. Borison
17 A.3d 697 (Court of Appeals of Maryland, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
994 A.2d 1019, 192 Md. App. 405, 2010 Md. App. LEXIS 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norman-v-borison-mdctspecapp-2010.