Smith v. Maldonado

85 Cal. Rptr. 2d 397, 72 Cal. App. 4th 637
CourtCalifornia Court of Appeal
DecidedJune 23, 1999
DocketA080411
StatusPublished
Cited by108 cases

This text of 85 Cal. Rptr. 2d 397 (Smith v. Maldonado) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Maldonado, 85 Cal. Rptr. 2d 397, 72 Cal. App. 4th 637 (Cal. Ct. App. 1999).

Opinion

Opinion

McGUINESS, P. J.

Can a defamatory innuendo be created by the act of “highlighting” or visibly emphasizing certain selected passages in a concededly truthful and accurate newspaper article? May an action for defamation lie against persons who copy and disseminate such a truthful newspaper article, after having themselves highlighted one portion of the article that mentions other individuals in a context or manner that inferentially associates those individuals with alleged criminal activity? The issue is apparently one of first impression.

In this case, appellants Donald C. Smith and Thomas G. Atwood contend they were libeled when respondents Ron and Helen Maldonado distributed copies of an entirely truthful newspaper article describing the indictment of appellants’ former attorney on charges of attempting to bribe a state legislator on appellants’ behalf, with the single paragraph referring to appellants by name intentionally highlighted by respondents. We affirm the trial court’s grant of summary judgment in respondents’ favor.

Factual and Procedural Background

In February 1993, the voters of Colma narrowly approved a proposed ordinance to permit the operation of a card room, pursuant to Business and Professions Code former sections 19819 and 19819.5. 1 Despite the voter approval given to the proposal, the card room remained a controversial issue in Colma. After the Colma Town Council (Town Council) adopted an ordinance establishing the procedures for authorizing and regulating card *641 rooms, four groups, including appellants, applied for a card room permit. Appellants obtained legal counsel (hereinafter, appellants’ former attorney) and pursued their goal of obtaining a permit by appearing before the Town Council and other forums. The decision on which of the contending vendors would be selected generated considerable public interest and debate in Colma.

In March 1994, Colma awarded the permit to operate a card room to a group called “Lucky Chances,” selecting it over appellants and the other applicants. Appellants were designated the second ranked applicants, who would succeed to the opportunity to be awarded the permit if the Lucky Chances group failed to meet specified deadlines for obtaining a conditional use permit and state gaming registration. When Lucky Chances failed to obtain the required state gaming registration by December 31, 1994, appellants asserted their claim to apply for the permit. At public meetings of the Town Council, appellants’ former attorney argued on their behalf that the Town Council should rescind its award of the permit to the Lucky Chances card club and grant the permit to appellants. These efforts were reported in the local news media. When appellants were not given the permit, they filed a lawsuit against Colma in January 1995.

Respondents were residents of Colma who participated in Colma local governmental issues, supported the enactment of the card room ordinance, and closely followed the permit application process with great interest. They joined the Colma Citizens’ Advisory Council, a group of Colma residents interested in'the card club who supported Lucky Chances’ attempt to secure the Colma card room franchise. In December 1995, a different group of local citizens qualified an initiative for the ballot to repeal the card room ordinance. Because of their strong support for the card room and Lucky Chances’ application, respondents took an active role in opposing the initiative. After much public debate, the initiative was defeated in May 1995.

Appellants continued to oppose Lucky Chances’ application for the necessary permits, and regularly appeared at Town Council meetings to contend they were entitled to the card room permit themselves. Respondents publicly opposed appellants’ contentions. After Colma granted a use permit to Lucky Chances, appellants filed two further lawsuits against Colma opposing the Town Council’s action. In these lawsuits, they were represented by their current counsel, who succeeded appellants’ former attorney in representing them in July 1995.

In July 1996, appellants’ former attorney was indicted on criminal charges of illegally attempting to influence a California legislator on behalf of *642 appellants in their attempt to gain an exclusive card room franchise in Colma, by allegedly seeking the legislator’s assistance in .preventing Lucky Chances from obtaining the requisite state gaming registration. A newspaper article accurately reporting these facts was published by the Los Angeles Times on July 6, 1996.

On July 7, 1996, respondents obtained a copy of the Los Angeles Times article. They made copies of the article and sent them to 35 other Colma residents. Respondents did not rearrange, edit, or change any words in the article, and did not add any written comments of their own. Instead, they “highlighted” a single paragraph mentioning appellants by name and distributed the entire article otherwise unchanged. 2 Referring to the Attorney General’s investigation of and “carefully orchestrated sting operation” against appellants’ former attorney, the entire highlighted paragraph read: “The target was [appellants’ former attorney], a politically connected attorney representing restaurateur Don Smith and golf course owner Thomas Atwood. The men were seeking a potentially lucrative franchise to operate a card room in Colma, a tiny community south of San Francisco.”

On July 25, 1996, appellants’ current counsel sent respondents a letter stating that their highlighting of the newspaper article had insinuated that appellants themselves were involved in the allegedly illegal activities of appellants’ former attorney, and demanding an apology and public retraction. Because they believed the newspaper article was true and they had done no wrong in simply redistributing it, respondents refused appellants’ demand for a retraction.

On August 14, 1996, appellants filed their libel complaint, alleging that by circulating the newspaper clipping with the paragraph mentioning appellants highlighted, respondents had insinuated that appellants were involved in the alleged illegal activities of appellants’ former attorney discussed in the *643 article. After the trial court sustained respondents’ demurrer with leave to amend, appellants filed a first amended complaint that contained a somewhat more detailed statement of facts, again alleged that respondents had intentionally and maliciously insinuated that appellants were involved in the alleged bribery attempt by appellants’ former attorney, and added an allegation that at the time of the allegedly defamatory insinuations, the subject of the article was no longer a matter of public concern to the citizens of Colma. Respondents immediately filed a second demurrer. The trial court overruled the demurrer.

After discovery, respondents moved for summary judgment on May 30, 1997. They argued that the newspaper article was completely truthful, and respondents had done nothing more than redistribute a truthful publication with1 one paragraph highlighted but without any commentary, changes or editing. Thus, respondents had only published true facts, and appellants could not state a claim for libel or defamation.

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Bluebook (online)
85 Cal. Rptr. 2d 397, 72 Cal. App. 4th 637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-maldonado-calctapp-1999.