Planet Aid, Inc. v. Reveal

44 F.4th 918
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 11, 2022
Docket21-15690
StatusPublished
Cited by8 cases

This text of 44 F.4th 918 (Planet Aid, Inc. v. Reveal) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Planet Aid, Inc. v. Reveal, 44 F.4th 918 (9th Cir. 2022).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

PLANET AID, INC., A Massachusetts No. 21-15690 Corporation which has its principal place of business in Howard County, D.C. No. Maryland; LISBETH THOMSEN, An 3:17-cv-03695- alien and permanent resident of MMC Chilangoma, Malawi, Plaintiffs-Appellants, OPINION v.

REVEAL; CENTER FOR INVESTIGATIVE REPORTING; MATT SMITH; AMY WALTERS, Defendants-Appellees.

Appeal from the United States District Court for the Northern District of California Maxine M. Chesney, District Judge, Presiding

Argued and Submitted June 14, 2022 San Francisco, California

Filed August 11, 2022

Before: Sidney R. Thomas, Ronald M. Gould, and Carlos T. Bea, Circuit Judges.

Opinion by Judge S.R. Thomas 2 PLANET AID V. REVEAL

SUMMARY*

California’s Anti-SLAPP Statute

The panel affirmed the district court’s order granting the Reporters with the Center for Investigative Reporting (“CIR”)’s anti-SLAPP motion to strike a complaint alleging defamation under California law.

Matt Smith and Amy Waters were reporters with CIR (“Reporters”) and they published stories alleging misuse of funds by two charitable organizations, Planet Aid, Inc., and Development Aid from People to People Malawi (“DAPP Malawi”). In response, Planet Aid and the director of DAPP Malawi, Lisbeth Thomsen, filed a defamation suit.

In a number of decisions, the U.S. Supreme Court established that public officials and public figures claiming defamation must prove that an allegedly defamatory statement was made with “actual malice.” The Supreme Court identified two types of public figures: all purpose public figures and limited-purpose public figures. All- purpose public figures must prove actual malice for virtually any subject of defamation, while limited-purpose public figures, who have assumed prominence on a limited range of issues, need only prove actual malice for speech touching upon those issues. In Makaeff v. Trump Univ., LLC, 715 F.3d 242 (9th Cir. 2013), this court articulated a three-prong test to determine whether an individual or entity is a limited-purpose figure.

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. PLANET AID V. REVEAL 3

The panel held that the district court correctly found that Planet Aid and Thomsen were limited-purpose public figures and that the Reporters did not act with “actual malice” within the meaning of New York Times Company v. Sullivan, 376 U.S. 254 (1964). The panel agreed with the district court’s determination in applying the Makaeff test that: (i) there was an existing public controversy with respect to Planet Aid and Lisbeth Thomsen’s use of charitable funds; (ii) the Reporters’ alleged defamation was relevant to this preexisting controversy; and (iii) the voluntariness requirement—which examines whether the plaintiff voluntarily injected itself into the controversy for the purpose of influencing the controversy’s ultimate resolution—was satisfied. The panel further agreed with the district court, for the reasons stated by the district court in its order, that a reasonable factfinder could not find, by clear and convincing evidence, that the Reporters acted with actual malice. The panel therefore affirmed the district court’s grant of the Reporters’ motion to strike the complaint under California’s anti-SLAPP statute.

COUNSEL

Samuel Rosenthal (argued), Nelson Mullins LLP, Washington, D.C.; James M. Wagstaffe and Michael von Loewenfeldt, Wagstaffe von Loewenfeldt Busch & Radwick LLP, San Francisco, California; for Plaintiffs-Appellants.

Thomas R. Burke (argued), Davis Wright Tremaine LLP, San Francisco, California; Ambike K. Doran, Davis Wright Tremaine LLP, Seattle, Washington; Brendan Charney and Andrew G. Row, Davis Wright Tremaine LLP, Los Angeles, California; Simon J. Frankel, Alexa Hansen, Alison Wall, Annie Shi, and Miriam Arghavani, Covington & Burling 4 PLANET AID V. REVEAL

LLP, San Francisco, California; Eric Chung, Covington & Burling LLP, Washington, D.C.; for Defendants-Appellees.

Deborah J. Dewart, Hubert, North Carolina, for Amicus Curiae Liberty, Life, and Law Foundation.

Elizabeth M. Locke, Joseph R. Oliveri, and Daniel D. Mauler, Clare Locke LLP, Alexandria, Virginia, for Amicus Curiae Clare Locke LLP.

Theodore J. Boutrous Jr. and Michael H. Dore, Gibson Dunn & Crutcher LLP, Los Angeles, California; Katie Townsend, Sarah S. Matthews, and Charles Hogle, Reporters Committee for Freedom of the Press, Washington, D.C.; for Amici Curiae Reporters Committee for Freedom of the Press and 32 Media Organizations.

OPINION

S.R. THOMAS, Circuit Judge:

In this appeal we must determine whether a charity and the director of a charity are limited-purpose public figures under the First Amendment. Reporters with the Center for Investigative Reporting published stories alleging misuse of funds by two charitable organizations, Planet Aid, Inc. (“Planet Aid”) and Development Aid from People to People Malawi (“DAPP Malawi”). In response, Planet Aid and the director of DAPP Malawi, Lisbeth Thomsen, filed a defamation suit. The district court granted the Reporters’ motion to strike the complaint under California’s anti-SLAPP statute, correctly finding that Planet Aid and Thomsen are limited-purpose public figures and that the reporters did not PLANET AID V. REVEAL 5

act with “actual malice” within the meaning of New York Times Company v. Sullivan, 376 U.S. 254 (1964). We affirm.

I

The Center for Investigative Reporting (“CIR”) is a California-based, nonprofit, investigative news organization. CIR publishes its reporting on various platforms, including its news website Reveal (www.revealnews.org), national radio show, and podcast. Matt Smith and Amy Walters were reporters with CIR. Between 2014 and 2017, CIR, Smith, and Walters (collectively, “CIR” or the “Reporters”) investigated and published a series of articles and podcasts reporting on the misuse of charitable funds by Planet Aid and its affiliate organization DAPP Malawi.

A

Planet Aid is a nonprofit charitable organization headquartered in Maryland with the stated mission of helping impoverished populations throughout the world. Planet Aid is recognized by the U.S. Internal Revenue Service (“IRS”) as a 501(c)(3) tax-exempt charity. It resells used clothing donated by the public, obtains government grants, and solicits corporate donations to generate funds. Since its inception in 1997, Planet Aid claims to have provided more than $100 million to support projects on three continents in the areas of education, teacher training, nutrition, and agricultural and economic development.

Planet Aid’s fundraising efforts are highly successful and recognizable. It fundraises by going door to door to solicit donations as well as setting up clothing donation bins that have become nearly ubiquitous across the United States. In 6 PLANET AID V. REVEAL

partnership with schools, business groups, religious institutions, nonprofits, and various organizations across the country, Planet Aid placed over 20,000 donation bins nationwide. Its signature, bright-yellow bins are present in 20 states and have achieved a degree of celebrity in popular culture. For example, the bins were featured in an episode of the popular television series “The Big Bang Theory,” which Planet Aid eagerly promoted on its social media pages.

Planet Aid regularly engages with the press and actively cultivates a public image. It issues frequent press releases to generate attention regarding its charitable programs and activities.

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