RECORP PARTNERS v. Gust Rosenfeld, PLC

8 P.3d 418, 198 Ariz. 230
CourtCourt of Appeals of Arizona
DecidedAugust 31, 2000
Docket1 CA-CV 99-0371
StatusPublished
Cited by1 cases

This text of 8 P.3d 418 (RECORP PARTNERS v. Gust Rosenfeld, PLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RECORP PARTNERS v. Gust Rosenfeld, PLC, 8 P.3d 418, 198 Ariz. 230 (Ark. Ct. App. 2000).

Opinion

8 P.3d 418 (2000)
198 Ariz. 230

RECORP PARTNERS, INC., a Delaware corporation, and David Maniatis, Third-Party Plaintiffs-Appellants,
v.
GUST ROSENFELD, P.L.C., an Arizona corporation, and Timothy W. Barton and Jane Doe Barton, husband and wife, Third-Party Defendants-Appellees.

No. 1 CA-CV 99-0371.

Court of Appeals of Arizona, Division 1, Department D.

August 31, 2000.

*420 Piccoli, Lester & Hoover, L.L.P. by Russell Piccoli, Phoenix, Attorneys for Appellants.

Lewis and Roca, L.L.P. by Peter D. Baird and Patricia K. Norris, Phoenix, Attorneys for Appellees.

OPINION

PATTERSON, Judge.

¶ 1 Recorp Partners, Inc. (Recorp) and David Maniatis (Appellants) appeal the trial court's dismissal of their defamation claims against Gust Rosenfeld, P.L.C. (Gust Rosenfeld) and Timothy W. Barton and his wife (Appellees). For the following reasons we affirm in part, reverse in part, and remand.

FACTS AND PROCEDURAL HISTORY

¶ 2 In reviewing a motion to dismiss, we assume as true the facts alleged in the complaint and view the facts in the light most favorable to Appellants, the plaintiffs in the court below. See Johnson v. McDonald, 310 Ariz. Adv. Rep. 7, ¶ 2, 197 Ariz. 155, 3 P.3d 1075 (App.1999).

¶ 3 The Recorp-Williams Field & Gilbert Roads Associates Limited Partnership (the Partnership) was organized in 1986 to develop *421 and sell approximately 150 acres of real property in Maricopa County, Arizona. In 1993, several of the limited partners filed a derivative action against the Partnership's general partner, Recorp, and its sole officer and shareholder David Maniatis, alleging that Recorp and Maniatis diverted a Partnership opportunity in 1993 and that they had wrongfully reported and reimbursed expenses since the Partnership's inception in 1986. The limited partners also sought a court order to remove Recorp as the general partner and appoint a receiver, based on the alleged wrongdoings. Attorney Timothy Barton of Gust Rosenfeld represented two of the plaintiff limited partners in the lawsuit, Kim Eggleston and Lee Harris.

¶ 4 Appellants filed a counterclaim and third-party complaint against Eggleston, Harris, Gust Rosenfeld, and Barton, alleging that the derivative action was false and fraudulent and asserting RICO, defamation, and tortious interference claims against Barton and Gust Rosenfeld.[1] Specifically, Recorp and Maniatis alleged that Gust Rosenfeld had "generated at least three letters or memoranda making false allegations of wrongdoing" against Recorp and Maniatis, knowing that the allegations were false, for the purpose of convincing the limited partners "to voluntarily remove Recorp as the general partner of the Gilbert partnership." The alleged defamatory statements included statements that Maniatis had been accused of taking money from his deceased mother, that he had wrongfully taken funds from the Partnership, that he had engaged in criminal activities against the Partnership, and that he had taken money from other partnerships.

¶ 5 The complaint also alleged that Barton and Gust Rosenfeld made hundreds of telephone calls to limited partners throughout the United States repeating the statements set forth in the memoranda as well as additional allegedly defamatory statements.

¶ 6 Appellees moved for dismissal of the claims against them, contending that their statements were absolutely privileged under Restatement (Second) of Torts § 586 (1977) and the Arizona Supreme Court's decision in Green Acres Trust v. London, 141 Ariz. 609, 688 P.2d 617 (1984). The trial court ruled that the memoranda were absolutely privileged and dismissed the third-party complaint. Appellants timely appealed.

ISSUES

¶ 7 Appellants raise two issues on appeal:

1. Did the trial court err in concluding that the alleged defamatory statements were absolutely privileged?

2. Did the trial court err in dismissing the conspiracy to defame by telephone claim?[2]

DISCUSSION

A. Appellee's Motion to Dismiss

¶ 8 Appellees contend that the trial court should have treated the motion to dismiss on immunity grounds as one for summary judgment because it considered documents outside the pleadings. See Ariz. R. Civ. P. 12(b) ("If, on a motion ... to dismiss *422 for failure ... to state a claim upon which relief can be granted, matters outside the pleading are presented to and not excluded by the court, the motion shall be treated as one for summary judgment."). Our review of the record reveals that the few documents attached to the motion to dismiss, response, and reply do not require that the motion be treated as a motion for summary judgment under Rule 56, Arizona Rules of Civil Procedure.

¶ 9 First, two of the documents containing the alleged defamatory statements were attached to the response. The other two alleged defamatory documents were filed under seal for the trial court's in camera review. These four documents, however, are not "matters outside the pleadings" within the meaning of Rule 12(b); rather, they are the subject of the pleadings and were, in fact, described extensively in the third-party complaint. Thus, the trial court was free to consider them without converting the motion to a Rule 56 motion for summary judgment. See, e.g., Greenberg v. Life Ins. Co. of Virginia, 177 F.3d 507, 514 (6th Cir.1999) (when document is referred to in the complaint and is central to plaintiff's claim, the court's consideration of an authentic copy of a document submitted with a motion to dismiss under Fed.R.Civ.P. 12(b)(6) does not require court to convert 12(b)(6) motion to summary judgment motion under Rule 56, Federal Rules of Civil Procedure). Second, both parties submitted materials regarding related federal court litigation in connection with Gust Rosenfeld's alternative motion to dismiss on statute of limitations grounds. Nothing indicates that these materials were relevant to the motion to dismiss on immunity grounds, or that the trial court considered them in connection with that motion.

¶ 10 Finally, Gust Rosenfeld attached to its motion a list of court cases involving Appellants, to support its assertion that Appellants had filed a number of other allegedly retaliatory claims against attorneys representing its adversaries in other litigation. Aside from the material appearing to be irrelevant to the immunity motion, neither the minute entry nor the order makes any reference to it and nothing else in the record indicates that the trial court considered the list in its decision.

¶ 11 We therefore conclude that the trial court excluded and did not consider the extrinsic material presented. Therefore, the motion was properly treated as a motion to dismiss. But cf. Franzi v. Koedyker, 157 Ariz. 401, 407, 758 P.2d 1303

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Bluebook (online)
8 P.3d 418, 198 Ariz. 230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/recorp-partners-v-gust-rosenfeld-plc-arizctapp-2000.