Richard Perniciaro and Robert Cleveland, Individually and on Behalf of Paratech, L.L.C. v. Guy McInnis, Ray Lauga, Jr., Casey W. Hunnicutt, Richard Lewis, St. Bernard Parish Government, the Times Picayune, L.L.C., Benjamin Alexander-Bloch and Rsui Indemnity Company

Louisiana Court of Appeal·Decided April 1, 2020·No. 2019-CA-0671·Published

Opinion

RICHARD PERNICIARO AND * NO. 2019-CA-0671 ROBERT CLEVELAND, INDIVIDUALLY AND ON * BEHALF OF PARATECH, COURT OF APPEAL L.L.C. * FOURTH CIRCUIT

VERSUS * STATE OF LOUISIANA

GUY MCINNIS, RAY LAUGA, ******* JR., CASEY W. HUNNICUTT, RICHARD LEWIS, ST. BERNARD PARISH GOVERNMENT, THE TIMES PICAYUNE, L.L.C., BENJAMIN ALEXANDER- BLOCH AND RSUI INDEMNITY COMPANY

APPEAL FROM

ST. BERNARD 34TH JUDICIAL DISTRICT COURT NO. 16-0969

Honorable Ashly Bruce Simpson, Judge Ad Hoc ******

Judge Dale N. Atkins

******

(Court composed of Chief Judge James F. McKay, III, Judge Tiffany G. Chase, Judge Dale N. Atkins)

William Joseph Larzelere, III ATTORNEY AT LAW 249 Kingsland Drive Covington, LA 70435

Stephen L. Miles Catherine F. Giarrusso PIPES, MILES, BECKMAN, LLC 1100 Poydras Street, Suite 1800 New Orleans, LA 70163

COUNSEL FOR PLAINTIFF/APPELLANT

Loretta Gallaher Mince Alysson L. Mills Michael Dodson FISHMAN HAYGOOD PHELPS WALMSLEY WILLIS & SWANSON, L.L.P. 201 St. Charles Avenue, Suite 4600 New Orleans, LA 70170-4600

COUNSEL FOR DEFENDANT/APPELLEE

AFFIRMED AND REMANDED

APRIL 1, 2020

DNA This is a defamation suit. Appellants, Richard Perniciaro, Robert Cleveland, JFM and ParaTech, L.L.C. (“ParaTech”) filed a petition for damages for defamation TGC against a number of defendants, including Appellees, Advance Local Media,

L.L.C. (“Advance”) and Advance Digital, Inc. (“Advance Digital”), which now own The Times-Picayune, and The Times-Picayune reporter Benjamin Alexander-

Bloch, (collectively, “The Times-Picayune”). In response, The Times-Picayune filed a special motion to strike the petition, pursuant to La. C.C.P. art. 971. The trial court granted the special motion to strike. From that judgment, Appellants appeal. Answering the appeal, The Times-Picayune argues the trial court erred in its award of attorney’s fees and costs, and requests an award of additional attorney’s fees and costs incurred for work performed on appeal. For the reasons that follow, we affirm the trial court’s judgment and remand for a determination of additional attorney’s fees to which The Times-Picayune is entitled for work performed on this appeal.

FACTUAL AND PROCEDURAL BACKGROUND Mr. Perniciaro and Mr. Cleveland own ParaTech, an information technology (“IT”) business. Prior to 2015, ParaTech contracted with the St. Bernard Parish

Government (the “SBPG”) to perform IT services for a number of years. In early 2015, then-SBPG President David Peralta was being investigated for a number of offenses allegedly committed while Mr. Peralta was in office, including extortion, obstruction of justice, and malfeasance in office. The Times-Picayune and other media outlets published a number of articles about Mr. Peralta’s alleged wrongdoing throughout 2015. The articles included reports about Mr. Perniciaro’s and ParaTech’s alleged involvement in Mr. Peralta’s actions.

After the reports were published, on August 5, 2016, Appellants filed a petition for damages for defamation against a number of defendants, including The Times-Picayune.1 In their petition, Appellants alleged that Mr. Alexander-Bloch, a reporter for The Times-Picayune, authored a number of articles in 2015 which defamed Mr. Perniciaro and ParaTech. Appellants claimed the defamatory articles damaged Mr. Perniciaro’s and ParaTech’s respective reputations, which in turn damaged ParaTech’s business as an IT company.

In their petition, Appellants first claimed that The Times-Picayune published an article on July 15, 2015 (the “July 15 Article”) regarding a meeting of the SBPG Parish Council that occurred on July 14, 2015. The article reported that, at this meeting, “council members alleg[ed] contractor ParaTech had stolen government computers” and went on to state that Councilmember Guy McInnis, who was also named as a defendant in this action, stated at a meeting of the SBPG Executive Council that no one authorized ParaTech to take the government computers and that the computers had not been returned. The Times-Picayune later published an amendment to the July 15 Article, stating that Councilmember McInnis had

1 The record reflects that the petition was originally filed in Jefferson Parish, but was subsequently transferred to St. Bernard Parish after the trial court in Jefferson Parish sustained an exception of improper venue.

“softened” his comments to say that ParaTech had taken the computers “without authorization.” Appellants alleged this story was defamatory and false because only one councilmember—Councilmember McInnis—accused ParaTech of taking the computers without authorization, while The Times-Picayune reported that it was multiple councilmembers who made this allegation. Appellants also alleged the story was false because ParaTech was authorized to take the computers to run an audit on the computer system pursuant to its IT contract with the SBPG. They alleged that Mr. Alexander-Bloch knew the statement that the computers had been stolen was false because Mr. Alexander-Bloch had already published a story in which he discussed ParaTech conducting computer audits for the SBPG.

Appellants next claimed they were defamed in The Times-Picayune’s August 7, 2015 editorial (the “August 7 Editorial”), also authored by Mr. Alexander-Bloch. The editorial discussed a recent grand jury indictment of Mr. Peralta, which charged Mr. Peralta with malfeasance in office for accepting “a monetary loan, services and/or other items of value from Richard Perniciaro, individually and/or through companies owned in whole or in part by Richard Perniciaro when Richard Perniciaro’s business entity, ParaTech, LLC, was seeking to and doing business with [the SBPG].” Appellants contended the report, which stated that Mr. Perniciaro gave money to Mr. Peralta “when his company was trying to get a parish contract,” was false because it implied a quid pro quo scheme that did not exist and that ParaTech already had a parish contract with the SBPG at the time covered by the indictment.

On January 26, 2018, Appellants amended and supplemented their petition for damages, adding allegations related to a series of articles authored by Mr. Alexander-Bloch and published by The Times-Picayune between March 3, 2015

through July 22, 2015 (the “March 3 through July 22 Articles”). Appellants ParaTech alleged that these articles falsely reported that multiple prosecutors said in multiple court hearings that Mr. Perniciaro was being investigated for helping or conspiring with Mr. Peralta in committing the crimes with which Mr. Peralta was ultimately charged. Appellants argue these reports were false because only one prosecutor indicated that Mr. Perniciaro was being investigated in one court hearing, and that, ultimately, Mr. Perniciaro was only investigated for public bid- rigging and was never charged with a crime.

In response to the petition, The Times-Picayune filed an exception of prescription, arguing the claims related to the March 3 through July 22 Articles were prescribed because they were not raised until January 26, 2018, well past the one-year prescriptive period for defamation claims. The Times-Picayune also filed a special motion to strike all of Appellants’ claims pursuant to La. C.C.P. art. 971 on January 6, 2016, and filed amending motions to strike on July 27, 2017; November 3, 2017; and July 6, 2018 in response to Appellants’ numerous supplemental and amending petitions for damages.

In its special motions to strike, The Times-Picayune argued that the allegations of the petition for damages were subject to La. C.C.P. art. 971 as exercises of free speech on matters of public concern and that, as such, the burden shifted to Appellants to prove they could prevail on the merits of their claims at trial. The Times-Picayune argued Appellants could not meet this burden because the statements were not false. The Times-Picayune also moved for an award of attorney’s fees and costs under La. C.C.P. art. 971(D).

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Richard Perniciaro and Robert Cleveland, Individually and on Behalf of Paratech, L.L.C. v. Guy McInnis, Ray Lauga, Jr., Casey W. Hunnicutt, Richard Lewis, St. Bernard Parish Government, the Times Picayune, L.L.C., Benjamin Alexander-Bloch and Rsui Indemnity Company, (La. Ct. App. 2020).

Richard Perniciaro and Robert Cleveland, Individually and on Behalf of Paratech, L.L.C. v. Guy McInnis, Ray Lauga, Jr., Casey W. Hunnicutt, Richard Lewis, St. Bernard Parish Government, the Times Picayune, L.L.C., Benjamin Alexander-Bloch and Rsui Indemnity Company (Richard Perniciaro and Robert Cleveland, Individually and on Behalf of Paratech, L.L.C. v. Guy McInnis, Ray Lauga, Jr., Casey W. Hunnicutt, Richard Lewis, St. Bernard Parish Government, the Times Picayune, L.L.C., Benjamin Alexander-Bloch and Rsui Indemnity Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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