Schwartz v. WORRALL PUBLICATIONS

610 A.2d 425, 258 N.J. Super. 493
CourtNew Jersey Superior Court Appellate Division
DecidedJuly 22, 1992
StatusPublished
Cited by9 cases

This text of 610 A.2d 425 (Schwartz v. WORRALL PUBLICATIONS) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartz v. WORRALL PUBLICATIONS, 610 A.2d 425, 258 N.J. Super. 493 (N.J. Ct. App. 1992).

Opinion

258 N.J. Super. 493 (1992)
610 A.2d 425

LAWRENCE S. SCHWARTZ AND SCHWARTZ, PISANO, SIMON, EDELSTEIN & BEN ASHER, A PARTNERSHIP, PLAINTIFFS-RESPONDENTS,
v.
WORRALL PUBLICATIONS, INC., A NEW JERSEY CORPORATION; CHRIS GATTO AND JOHN DOE (A FICTITIOUS NAME REPRESENTING A PARTY OR PARTIES UNKNOWN), DEFENDANTS-APPELLANTS.

Superior Court of New Jersey, Appellate Division.

Argued May 18, 1992.
Decided July 22, 1992.

*495 Before Judges R.S. COHEN and KESTIN.

A.F. McGimpsey, Jr., argued the cause for appellant Worrall Publications, Inc. (McGimpsey & Cafferty, attorneys, Thomas J. Cafferty and Arlene M. Turinchak on the brief).

Stephen J. Edelstein argued the cause for respondents (Schwartz, Simon & Edelstein, attorneys, Stephen J. Edelstein and David C. Bendush on the brief).

The opinion of the court was delivered by R.S. COHEN, J.A.D.

This is a defamation case. On leave granted, defendant Worrall Publications, Inc., appeals the denial of its motion for summary judgment. We reverse.

Worrall publishes the Belleville Post (Post), a free weekly newspaper. Plaintiff Lawrence Schwartz is an attorney who represented the New Jersey School Boards Association (Association) when it came under the scrutiny of the State Commission of Investigation (SCI) for losses which the Association's insurance *496 group had sustained. Schwartz is a past-president of the Association, a former Belleville School Board attorney, and a partner in the law firm of Schwartz, Simon & Edelstein.

On Thursday, March 29, 1990, the front page of the Post carried an article headlined, "State investigating former BOE [Board of Education] attorney." The by-line attributed authorship to Post staff writer Chris Gatto, a defendant here. Although Schwartz was in fact not the target or focus of any investigation by SCI, the article stated:

A former Belleville school board attorney who once served as president of the New Jersey School Boards Association, is now the target of a state investigation as the recipient of allegedly excessive legal fees stemming from an ongoing insurance controversy.
The association, which employs a $70,000-a-year attorney to head its own staff, is awaiting the results of an investigation by the [SCI] into the fees charged by Livingston-based attorney Lawrence S. Schwartz. The investigation is looking into losses sustained by the association's Insurance Group. The SCI report is expected to be completed shortly.
....
Schwartz, who is also a former Belleville school board member, served as the association president from 1976 to 1978. According to Frank Belluscio, a spokesman for the [association], Schwartz's fees have totalled $353,851.
Belluscio said Schwartz was paid $297,617 to represent the association in its dealings with the SCI, the investigation now focusing on him. The balance was paid to the lawyer for representing the association in three separate lawsuits that arose from the loss.
Jeremiah Regan, the association's president said Schwartz was hired by the group because of his familiarity with school law and the association itself. The attorney represents 22 school boards in the state. Regan said he saw no possible conflict in hiring a former president.
Schwartz was hired without following the bidding process — in accordance with the state law that permits contracting for services without bids.
....

About two weeks later, Schwartz's law firm sent the Post a letter demanding an immediate retraction of the "false and defamatory statements." One was not printed until June 21, 1990, over a month after suit had been started against Worrall and Gatto. The complaint alleged that the article was defamatory, damaged Schwartz and his law firm, and tortiously interfered with the firm's business advantages.

*497 Worrall moved for summary judgment on the theses that the Post article was not "of and concerning" the law firm, and that Schwartz was a public official or figure who failed to establish actual malice on the part of defendants. Schwartz and his law firm cross-moved, seeking partial summary judgment on the question whether the statements in the article were defamatory. The Law Division judge denied Worrall's motion, and granted plaintiffs partial summary judgment. We granted Worrall's application for leave to appeal from the order denying its motion.

The facts before the motion judge were essentially undisputed. Gatto got the idea for an article from a front-page story that appeared in the Sunday, March 25, 1990, edition of the Star Ledger. Its headline was, "Schools group paid ex-leader high fees." Like the Post article, the Star Ledger piece described the circumstances of Schwartz's hiring and the size of his fee. Unlike the Post article, it did not say that Schwartz or his fees were the subject of SCI investigation. Apparently, neither did the original version of the Post article. That version was drafted by Gatto, after he briefly spoke with Schwartz about his fees and verified the accuracy of the Star Ledger article with Belluscio, the Association spokesman. Gatto completed his draft and left it for his editor, Joseph Cammelieri, late that Monday evening. Gatto then left for Washington, D.C., to cover another story.

Cammelieri found Gatto's draft confusing when he reviewed it on Tuesday evening. He read it three times, and then thought he "knew what [Gatto] was trying to say." Intending to simplify and clarify the story, Cammelieri edited it in the mistaken belief that Schwartz himself was the target of the SCI investigation. Cammelieri explained:

I was under the assumption that because there was a local angle, that the reason the story was being written was that the local person was the gist of the story.... I was confused. So in my confusion, I saw a local person; and I assumed that oh, this local person must be the primary focus of the story and I was trying to simplify it.

*498 He did not speak with Gatto about the article during the editing process, even though Gatto had phoned in two or three times on his way back from Washington.[1] He did not have access to Gatto's notes, and did not see the Star Ledger article upon which he knew Gatto had relied. By the time Gatto returned, Cammelieri had already left the Post offices, and the copy for the Thursday paper had been completed.

When the article was published on Thursday, March 29, Gatto recognized the inaccuracies and spoke to Cammelieri about them. Cammelieri "made a mental note of making a correction" in the next issue, but it slipped his mind. Then the Association contacted the Post to notify it that the information in the article was not correct. Then came the retraction demand from Schwartz's firm on April 14. A meeting was held at the Post, and Cammelieri was directed to draft a retraction story. The draft was reviewed by Worrall's counsel, and was never published. A retraction ultimately appeared late in June, after the SCI report had been released. The report made no reference to Schwartz or fees charged by him.

The motion judge concluded that the Post article "sounded to the disreputation of both Schwartz and his law firm," and was therefore defamatory on its face.

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Bluebook (online)
610 A.2d 425, 258 N.J. Super. 493, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-v-worrall-publications-njsuperctappdiv-1992.