Okun v. Superior Court

629 P.2d 1369, 29 Cal. 3d 442, 175 Cal. Rptr. 157, 1981 Cal. LEXIS 147
CourtCalifornia Supreme Court
DecidedJune 15, 1981
DocketDocket Nos. L.A. 31341, 31342
StatusPublished
Cited by106 cases

This text of 629 P.2d 1369 (Okun v. Superior Court) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Okun v. Superior Court, 629 P.2d 1369, 29 Cal. 3d 442, 175 Cal. Rptr. 157, 1981 Cal. LEXIS 147 (Cal. 1981).

Opinions

Opinion

NEWMAN, J.

The complaint here alleges libel and slander during defendants’ (petitioners’) successful campaign for repeal of an ordinance that would have enabled plaintiff (real party in interest) to build a large condominium project in Beverly Hills. Our reading of the complaint persuades us that the publications in question could not reasonably be found libelous and that plaintiffs pleading of a conspiracy to slander is deficient.

The lawsuit was begun in September 1979. A first amended complaint names Betty Harris, Joann Ruden, Erwin Okun, and Does 1 through 1,000 as defendants and alleges 10 causes of action against various combinations of those defendants. Demurrers by Harris, Ruden, and Okun were sustained as to the first, seventh, eighth, ninth, and tenth causes, overruled as to the second, third, fifth, and sixth causes, and ordered off calendar as to the fourth cause (because it names only Doe defendants).

In response to the present petitions, we issued alternative writs of mandate inviting plaintiff and the trial court to show cause why the demurrers to the second, third, fifth, and sixth causes of action should not be sustained.

Factual Context of the Alleged Defamation

The first cause of action is not directly before us; but its introductory paragraphs, setting out background facts, are incorporated into each of the four causes whose sufficiency we now weigh. The paragraphs allege:

Plaintiff is a limited partnership that purchases, manages, develops, and sells real property. In 1977 it bought 10 acres of Beverly Hills property with a view to building condominiums. The property, then under a building moratorium pending determination of zoning, adjoined city-owned parcels. Plaintiff had discussed with city officials the possi[448]*448bility of a land exchange so that plaintiff and the city each would own contiguous land. The discussions concluded successfully on November 28, 1978, when the city council agreed to the land exchange and adopted a zoning ordinance allowing plaintiff to construct condominiums on all its newly acquired property.

To prevent construction, defendants circulated and then filed a petition to allow the electorate to reject or accept the ordinance. Consequently the council placed it on the ballot for an election held March 9, 1979. It was rejected and thus repealed. Defendants were “motiviated by ill will toward [plaintiff]” and “campaigned against the passage of Proposition B in order to stop [plaintiff’s] condominium project, among other ways, by defaming [plaintiff]. Said defendants variously and falsely accused [plaintiff] of corrupt and collusive activities in connection with City officials.”

Second Cause oe Action

The second cause alleges that Harris and Does 101 through 200 wrote this letter to the editor of the Los Angeles Times, wherein it was published on January 28, 1979:

“Setting the Record Straight
“The article regarding a controversial land swap between the Beverly Hills City Council and a developer of luxury condominiums (‘Land Swap Stirs Up Beverly Hills’ by Sam Kaplan, Dec. 26) missed the point entirely.
“To set the record straight:
“While the area in contention—adjacent to Beverly Hills’ civic center—is known as the industrial area, it also houses the city’s vital municipal services facilities. It is the site of the city’s refuse transfer station, vehicle maintenance garages and all the other indispensable operations that make a city function. It is also the site of a water treatment plant that the city council abandoned in 1976.
“This action was followed by the council’s abandoning the city’s own water wells in the midst of the recent drought. It was this incredible move that caused a number of citizens to become suspicious of the council’s motives. Beverly Hills residents were thus forced to become [449]*449completely dependent upon one very expensive source of water, that supplied by the Metropolitan Water District of Southern California. Even the MWD’s general manager advised the city against this decision.
“Nevertheless, this was done despite the fact that in 1974 the voters of Beverly Hills had passed, by a two-thirds majority, a $3.75 million bond issue to refurbish the city’s water wells and treatment facilities. The only council member opposed to the bond issue and retention of the city’s wells was Richard Stone, an attorney.
“Mysteriously, one week after the voters approved the refurbishing of their water system, the city announced that its cost projections to revitalize the wells were $5 million short. Amazingly, a year later the claim went up to $12 million more than the voter-approved bonds. But, without asking the voters again, in December, 1976, the council closed down the wells and sold off the land on which they were located.
“Not until April 12, 1977, did Richard Stone, at that time the mayor of Beverly Hills, reveal that David Rowen, representing a developer, had become a client of Stone’s. The abandoned treatment plant is now earmarked for the developers in a landswap deal.”

Further it is alleged: The letter referred to plaintiff as the “developer” (see Code Civ. Proc., § 460) and was intended and reasonably understood to mean that plaintiff “had (a) conspired for a period of years with Councilman Stone to cause the City to abandon its water well system in order to make the water treatment plant obsolete and allow [plaintiff] to acquire the property on which the water treatment plant was located for [plaintiff’s] private gain and (b) conspired to commit, and did commit, the crimes of bribery and corruption.” The letter “as applied to [plaintiff], is false” and omits facts that, if included, “would not have caused the readers ... to believe that plaintiff had acted as intimated in the [letter].” Harris wrote the letter “either intentionally knowing it was false or with reckless disregard for” truth. She did it “to injure [plaintiff] and stop any development by it” and was “motivated by malice and ill will toward plaintiff.”

Was the letter libelous? Clearly it permits a nondefamatory interpretation. The facts that in April 1977 plaintiff “had become a client of [council member] Stone” (who in 1974 had opposed retention of the city’s wells), that in 1976 the wells and water treatment plant were [450]*450abandoned, and that in 1979 the treatment-plant site was “earmarked for the developers [plaintiff] in a landswap deal” do not necessarily imply wrongdoing. There is no explicit statement that Stone had represented plaintiff for any substantial period before April 1977 or was improperly influenced by plaintiff in his handling of city affairs.

Nonetheless a writing’s susceptibility to innocent meaning does not in itself preclude a finding that an ordinary reader would understand it in a libelous sense. (MacLeod v. Tribune Publishing Co. (1959) 52 Cal.2d 536, 546-551 [343 P.2d 36]; see Forsher v. Bugliosi (1980) 26 Cal.3d 792, 803, 805 [163 Cal.Rptr. 628, 608 P.2d 716

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Cite This Page — Counsel Stack

Bluebook (online)
629 P.2d 1369, 29 Cal. 3d 442, 175 Cal. Rptr. 157, 1981 Cal. LEXIS 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/okun-v-superior-court-cal-1981.