Scripps Texas Newspapers, Lp D/B/A Corpus Christi Caller-Times and the E.W. Scripps Company v. Terry Carter

Court of Appeals of Texas·Decided November 21, 2012·No. 13-09-00655-CV·Published

Opinion

NUMBER 13-09-00655-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI - EDINBURG

SCRIPPS TEXAS NEWSPAPERS, LP D/B/A CORPUS CHRISTI CALLER-TIMES AND THE E.W. SCRIPPS COMPANY, ET AL., Appellants,

v.

TERRY CARTER, Appellee.

On appeal from the 214th District Court of Nueces County, Texas.

MEMORANDUM OPINION

Before Chief Justice Valdez and Justices Garza and Benavides Memorandum Opinion by Chief Justice Valdez Appellants, Scripps Texas Newspapers, L.P. d/b/a Corpus Christi Caller-Times

and the E.W. Scripps Company (collectively “Scripps”), Judy Hawley, Sylvia Whitmore, Carol Scott (collectively the “Executive Committee Members”), and Damon Bentley,1

1 Damon Bentley did not timely file a brief in this case. Accordingly, we dismiss his appeal for

appeal from the trial court’s denial of their motions for summary judgment in favor of appellee, Terry Carter.2 We affirm in part and reverse and render in part.

I. BACKGROUND

Terry Carter served as president and CEO of the Chamber of Commerce in Corpus Christi, Texas. In 2007, investors planned to develop a multi-million dollar mall called Crosstown Commons and requested $40 million in tax incentives from the city, which according to Carter, included tax rebates and reimbursements for road and utility improvements. The city council was asked to vote on the $40 million tax incentive. At a city council meeting on June 12, 2007, Carter suggested that the city council take its decision to grant the tax incentives “slow.”

Scripps then ran a series of stories regarding the tax proposal. According to Carter, Scripps then began publishing a series of twenty-five articles “falsely accusing [him] of mismanagement, financial improprieties, and of stealing a tape recording of a [Chamber of Commerce] board meeting.”3 Carter sued the Executive Committee Members for defamation, tortious interference with prospective business relations, conspiracy, breach of fiduciary duty,

want of prosecution.

2 Generally, an order denying a motion for summary judgment is not appealable. See Cincinnati Life Ins. Co. v. Cates, 927 S.W.2d 623, 625 (Tex. 1996) (citing Novak v. Stevens, 596 S.W.2d 848, 849 (Tex. 1980)). However, an exception to this rule applies in cases involving a media defendant in a defamation case. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(6) (West Supp. 2011) (allowing an appeal of a trial court’s interlocutory order denying “a motion for summary judgment that is based in whole or in part upon a claim against or defense by a member of the electronic or print media, acting in such capacity, or a person whose communication appears in or is published by the electronic or print media, arising under the free speech or free press clause of the First Amendment to the United States Constitution, or Article I, Section 8, of the Texas Constitution, or Chapter 73”).

3 Carter claims that the Executive Committee Members published defamatory statements concerning his handling of the Chamber’s affairs in these articles. He further asserts that they accused him in the articles of mismanagement of Chamber funds in order to acquire a bonus that was tied to the Chamber’s finances.

and tortious interference with an existing contract. Carter sued Scripps for defamation, conspiracy, and inducement to breach fiduciary duty. Appellants moved for no evidence and traditional summary judgment. The trial court denied the motions. This appeal followed.

II. PUBLIC FIGURE

By their first issue, appellants contend that Carter is a public figure, which requires him to prove at trial that Scripps published its news stories with actual malice. Specifically, Scripps argues that Carter’s role as the CEO of the Chamber of Commerce made him a public figure because there was a public controversy regarding the Crosstown Commons, Carter’s role in the controversy was neither tangential nor trivial, and the alleged defamation was germane to Carter’s participation in the controversy. A. Applicable Law

Public figures fall into two categories: (1) all-purpose, or general-

purpose, public figures, and (2) limited-purpose public figures. General-

purpose public figures are those individuals who have achieved such pervasive fame or notoriety that they become public figures for all purposes and in all contexts. Limited-purpose public figures, on the other hand, are only public figures for a limited range of issues surrounding a particular public controversy.

WFAA-TV, Inc. v. McLemore, 978 S.W.2d 568, 571 (Tex. 1998) (internal citations omitted) (citing Gertz v. Robert Welch, Inc., 418 U.S. 323, 351 (1974)).

A public figure suing a media defendant for defamation must prove that the defendant published the statement with actual malice. Klentzman v. Brady, 312 S.W.3d 886, 905–06 (Tex. App.—Houston [1st Dist.] 2009, no pet.) (citing Gertz, 418 U.S. at 342). A private figure suing a media defendant, however, must only show that the media defendant acted negligently. Entravision Commc’ns. Corp. v. Belalcazar, 99

S.W.3d 393, 399–400 (Tex. App.—Corpus Christi 2003, pet. denied). Whether a person is a public figure is a question of law for the court to decide. Klentzman, 312 S.W.3d at 904.

In Gertz, the United States Supreme Court noted that it would not assume that a person who “had long been active in community and professional affairs,” “served as an officer of local civic groups and of various professional organizations,” had “published several books and articles on legal subjects,” and “was consequently well known in some circles” was a general-purpose public figure. 418 U.S. at 351–52. The court stated:

We would not lightly assume that a citizen’s participation in community and professional affairs rendered him a public figure for all purposes. Absent clear evidence of general fame or notoriety in the community, and pervasive involvement in the affairs of society, an individual should not be deemed a public personality for all aspects of his life. It is preferable to reduce the public-figure question to a more meaningful context by looking to the nature and extent of an individual’s participation in the particular controversy giving rise to the defamation.

Id. at 352.

Thus, if a person is not a general-purpose public figure, we apply a three-part test in deciding whether that person is instead a limited-purpose public figure: (1) was the controversy at issue public both in the sense that people were discussing it and people other than the immediate participants in the controversy were likely to feel the impact of its resolution; (2) did the plaintiff have more than a trivial or tangential role in the controversy; and (3) was the alleged defamation germane to the plaintiff’s participation in the controversy (the “three-part test”). McLemore, 978 S.W.2d at 571 (labeling the three-part test the “Trotter/Waldbaum test”) (citing, among other cases,

Waldbaum v. Fairchild Publ’g, Inc., 627 F.2d 1287, 1296–98 (D.C. Cir. 1980)); Klentzman, 312 S.W.3d at 904–05.

To determine whether a controversy indeed existed and, if so, to define its contours, the judge must examine whether persons actually were discussing some specific question. A general concern or interest will not suffice. The court can see if the press was covering the debate, reporting what people were saying and uncovering facts and theories to help the public formulate some judgment.

McLemore, 978 S.W.2d at 572. Furthermore, a public controversy is more than simply a matter of interest to the public; it must be a dispute that has received public attention because the outcome affects the general public or some segment of it in an appreciable way. Einhorn v. LaChance, 823 S.W.2d 405, 412 (Tex. App.—Houston [1st Dist.] 1992, writ dism'd w.o.j.); see Time, Inc. v. Firestone, 424 U.S. 448, 454 (1976) (finding that the general controversy surrounding divorce is not a public controversy for purposes of analyzing whether a party is a limited-purpose public figure).

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