Peavy v. WFAA-TV, Inc.

221 F.3d 158, 28 Media L. Rep. (BNA) 2601, 2000 U.S. App. LEXIS 18289, 2000 WL 1051909
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 31, 2000
Docket99-10272
StatusPublished
Cited by85 cases

This text of 221 F.3d 158 (Peavy v. WFAA-TV, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peavy v. WFAA-TV, Inc., 221 F.3d 158, 28 Media L. Rep. (BNA) 2601, 2000 U.S. App. LEXIS 18289, 2000 WL 1051909 (5th Cir. 2000).

Opinion

RHESA HAWKINS BARKSDALE, Circuit Judge:

Primarily at issue is whether the First Amendment shields WFAA-TV, Inc., and its reporter, Robert Riggs, from liability for their “use” and “disclosure”, in violation of the Federal and Texas Wiretap Acts, of the contents of the Peavys’ cordless telephone conversations, illegally intercepted and recorded by the Harmans, with them providing the recordings to Riggs and with Riggs and WFAA having some participation concerning the interceptions, at least as to their extent. Numerous other federal and state law issues are presented, including whether defendants “procured” or “obtained” the Harmans to make the interceptions, in violation of the Federal and Texas Acts, respectively, and whether the Federal Act even permits a civil action for damages for such “procurement”. The district court granted summary judgment for WFAA and Riggs, holding, inter alia: the Harmans were neither so “procured” nor “obtained”; and even though defendants engaged in proscribed “use” and “disclosure”, the First Amendment trumps the two Acts. We AFFIRM in part; REVERSE in part; VACATE in part; and REMAND.

I.

The facts are largely undisputed. The following is drawn, in part, from the magistrate judge’s recommendation, adopted by the district court without a separate opinion. Peavy v. Harman, 37 F.Supp.2d 495, 502-04 (N.D.Tex.1999).

Carver Dan Peavy (Peavy) was elected a trustee for the Dallas Independent School District (DISD) in 1986, so serving until 1995. By the early 1990s, he controlled purchases of insurance for DISD employees. He was a Mend and business associate of Eugene Oliver, an insurance agent who had been convicted as an accomplice to murder. The Peavys had been long *164 involved in various, ongoing disputes with their neighbors, Charles and Wilma Har-man. Id. at 502 n.2.

In early December 1994, Charles Har-man (Harman) acquired a police scanner, in order to monitor police activity in his neighborhood. The first time he turned it on, he overheard a telephone conversation between Peavy and another neighbor, in which they discussed filing a class action against the Harmans. Id. at 502. Thereafter, Harman locked the scanner onto the frequency for the Peavys’ cordless telephone, and continued listening to their conversations. Harman overheard conversations which he interpreted as threats to his safety, and some involved what he perceived to be public corruption on the part of Peavy involving insurance at DISD. Id. Shortly thereafter, Harman began recording the intercepted conversations. Id.

The Harmans claimed to have consulted with various law enforcement officials regarding the legality of intercepting and recording cordless telephone calls, and to have been told it was legal. Id. (However, in a related proceeding, subsequent to the summary judgment in this case, the magistrate judge found that no one told the Harmans such interception was legal. See Goodspeed v. Harman, 39 F.Supp.2d 787, 793-94 (N.D.Tex.1999).)

Frustrated at the lack of police response to his reports of Peavy’s threats and public corruption, Harman contacted WFAA on 8 December 1994, and spoke with one of its producers, P.J. Ward. Id. at 503. Harman told Ward he had information about possible corruption by an elected official, who he eventually identified as Peavy. Id. Ward relayed the tip to Riggs, a WFAA investigative reporter. Id.

Riggs telephoned Harman that afternoon. Id. Harman told Riggs he: had proof Peavy was threatening to harm him and was involved in an insurance kickback scheme; was concerned for his family’s safety; and wanted to talk to Riggs in person. Id. Riggs had never heard of Peavy and was not working on a story about DISD insurance.

The next day, Riggs went to the Har-mans’ home. Id. They told him about their history with Peavy; hearing, with a police scanner, his threats and discussions of insurance kickbacks; and taping his conversations. They told Riggs about the contents of overheard, but not recorded, conversations; played a tape of recorded conversations; and showed him the scanner. Riggs knew the parties to those conversations were not aware of, and did not consent to, the interception and recording.

Riggs claimed: he asked Harman, at their initial meeting, whether it was legal to record the conversations; and Harman assured him his actions had been approved by the Dallas County District Attorney and the Dallas Police Department. Id. On the other hand, the Harmans claim Riggs told them he had consulted with WFAA’s attorney about the legality of the intercepts prior to their meeting. Riggs denied then consulting counsel and stated he did not do so until a few days later.

At their initial meeting, Harman asked Riggs whether he wanted a copy of the tape, as well as others he (Harman) might make in the future. Id. Riggs replied he did. Id. He also instructed the Harmans not to turn the tape recorder on and off while recording intercepted conversations, and not to edit them, so that the tapes’ authenticity could not be challenged. Id.

Riggs took the tape of the intercepted conversations to WFAA; met with Ward and WFAA News Director John Miller; told them about his meeting with the Har-mans; and played portions of the tape for them. Id. They agreed Peavy’s activities should be investigated. Id. After that meeting, Riggs asked another WFAA employee to conduct research regarding the contents of the tape, and instructed Ward to conduct other research at DISD.

WFAA asked its outside legal counsel, Paul Watler, whether it was lawful for WFAA to receive tapes of the intercepted *165 and recorded cordless telephone conversations. At a meeting with Riggs and Miller on 12 December 1994, Watler advised he would have to double-check, but thought it legal to intercept and record cordless telephone conversations. At a meeting at WFAA on 4 January 1995, Watler told Riggs: it was legal to listen to, and record, cordless telephone conversations; and WFAA could legally accept and broadcast the tapes.

In February 1995, Ward and Watler decided to have portions of the tapes transcribed. Ward selected for transcription those portions she believed would illustrate to Riggs, Miller, and Watler the evidence of public corruption and racial discrimination. At Watler’s suggestion, Ward had them transcribed by a court reporter in Austin, Texas, and took measures to ensure the confidentiality of the tapes and transcripts.

After the transcript was prepared, Ward made copies for Miller, Riggs, and Watler. Ward and Riggs reviewed, edited, and corrected it. Watler reviewed it to familiarize himself with the contents of the tapes so that he could advise WFAA on legal questions that might arise. And, Riggs gave a copy of the transcript to the Harmans to review for accuracy.

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Bluebook (online)
221 F.3d 158, 28 Media L. Rep. (BNA) 2601, 2000 U.S. App. LEXIS 18289, 2000 WL 1051909, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peavy-v-wfaa-tv-inc-ca5-2000.