Shephard v. Bay Windows, Inc.

16 Mass. L. Rptr. 726
CourtMassachusetts Superior Court
DecidedSeptember 22, 2003
DocketNo. 010284
StatusPublished
Cited by1 cases

This text of 16 Mass. L. Rptr. 726 (Shephard v. Bay Windows, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shephard v. Bay Windows, Inc., 16 Mass. L. Rptr. 726 (Mass. Ct. App. 2003).

Opinion

Fabricant, J.

INTRODUCTION

This action arises from a news article published in a weekly newspaper, Bay Windows, which serves the Boston area gay and lesbian community, regarding an organization known as the Greater Boston Business Council (GBBC), which also serves that community. The plain tiff David Shephard, a member of the GBBC’s board of directors, alleges that the article defamed him and violated his statutory right to privacy. The plaintiff corporation, through which Shephard conducts his public relations business, alleges that it too was defamed. Presently before the Court are cross motions for summary judgment. For reasons that will be explained, the plaintiffs’ motion will be denied, and the defendant’s motion will be allowed in part and denied in part.

BACKGROUND

The record reveals the following factual background.1 The defendant Bay Windows, Inc., publishes and distributes a weekly newspaper targeted at Greater Boston’s gay and lesbian community, known as Bay Windows. As of June 2000, Bay Windows had an average weekly press run of approximately 22,500 copies. The article that is the subject of this case appeared in Bay Windows on June 22, 2000. That edition included paid advertisements for local and national businesses.

The GBBC is a Boston-based non-profit organization that serves professionals in the gay, lesbian, bisexual and transgendered community. It functions similarly to a chamber of commerce in that it regularly offers scheduled events which provide educational and networking opportunities for professionals, including an annual Awards for Excellence Dinner. At the time of the events in issue, the GBBC had some 1,200 members, and was governed by a sixteen-member board of directors.

In 1996, the plaintiff David Shephard became a member of the GBBC and began regularly attending its meetings. Shephard is a public relations consultant, with a background in banking. He began devoting his full time to public relations in February 1996, and incorporated his business as Shepard & Associates, Inc., in June 1999. He is the sole shareholder of that corporation. He has been active in a number of cultural, philanthropic, business and communiiy organizations.

In October of 1996, GBBC hired Shephard and Associates, Inc., as its advertisement sales manager. In that capacity Shephard’s company was responsible for selling advertisements for GBBC’s newsletter and program book, and for securing sponsors for GBBC events. GBBC paid Shephard’s company a commission of 15% of ad sales and 25% of sponsorship donations. Shephard was quite successful, bringing in over $100,000 annually to the GBBC. As a result, he earned substantial commissions, amounting to $15,742.06 in 1998.

When Shephard made sales on behalf of GBBC, he would prepare invoices, collect payment, and forward the funds to GBBC’s treasurer. Occasionally, Shephard received checks that sponsors had incorrectly made payable to Shephard & Associates. Shephard never deposited these into his own account, instead forwarding them to GBBC’s treasurer.

In January 1997, a vacancy arose on GBBC’s board of directors, and the board considered Shephard for the position. GBBC’s then president expressed to Shephard the opinion that because he was the ad manager, he may be prevented from serving on the board. The board held a meeting to address the question of whether Shephard’s service on the board would be a conflict of interest. The board consulted legal counsel, and received an opinion to the effect that no [727]*727conflict existed. The board voted to appoint Shephard to the open board position. Thereafter, Shephard was repeatedly reelected to the board by the membership of GBBC, although during each election some members of the board would raise the question of whether Shephard had a conflict of interest. In 2000, Shephard also held the position of chairman of the events committee, which raised and expended the most money among the GBBC committees.

Lori Pilcher was elected president of the GBBC for a two-year term from January 2000 through December 2001. Pilcher was employed as an audit manager for the Office of Inspector General in the United States Department of Health and Human Services. She made organizing the finances of the GBBC her focus and priority. Her goal was to establish financial accountability within the organization by establishing a general ledger and an annual budget. From the first day of her tenure as president, Pilcher requested that GBBC committee chairs, including Shephard, provide financial documentation of their activities. Subsequently, Pilcher reported to some of the GBBC board members that Shephard was slow in providing financial documentation to her and. that it was provided in “dribs and drabs” and not in the format she requested. At several board meetings in the spring of 2000, Pilcher also raised the issue of whether it was a conflict of interest for Shephard to serve on the board and make decisions about future GBBC events that would affect his commissions as ad manager. Some members of the board agreed with Pilcher that Shephard had a conflict of interest.

On May 11, 2000, Pilcher resigned from her position as president of the GBBC. Pilcher testified at her deposition that she resigned because “I felt uncomfortable with the financial situation ... I was taking matters into hand to try to implement a general system, implement a budget. . . And I was trying to get a handle on what to expect, to make good decision making. Because all the information wasn’t coming I could not make good decisions ...” She went on to say that she and the vice president and the organization’s attorney met and developed recommendations, which they presented at a special board meeting, but that meeting “was veiy much a catastrophe. And that was the grounds which I said, if we don’t do something, I need to leave. Nothing was resolved at that meeting so the next day I resigned.” In discussing her resignation with vice president David Wilson, Pilcher testified, Shephard’s name came up in the context of Pilcher’s repeated requests for financial information, which “I never received during the five months that I was there that I had to request it.” Richer communicated her resignation to the members of the board by e-mail. She outlined her concerns about the GBBC, her reasons for resigning, and her suggestions for improvement.

Richer and the board agreed to keep Pilcher’s resignation confidential from non-board members until after the GBBC’s annual Awards for Excellence dinner, which was scheduled for June 21, 2000. However, in the meantime the GBBC used Rlcher’s name without her permission in connection with a president’s column published in a GBBC newsletter after her resignation. Trish Faass, a board member with whom Pilcher had a personal relationship, provided a copy of the resignation to former board member Rosemary White. White, in turn, anonymously faxed copies of the resignation and of the newsletter to Bay Windows. In doing so, White acted alone, without having conferred with any GBBC board member.

Bay Windows Editor Jeff Epperly assigned Beth Berio to write an article. Berio had never previously reported on the GBBC, and had no previous relationship with any of the people involved. White telephoned Berio and discussed Rlcher’s resignation, but advised Berio that she wished to remain anonymous. White provided Berio with a list of persons to interview.

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16 Mass. L. Rptr. 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shephard-v-bay-windows-inc-masssuperct-2003.