Tarter v. Bendt

CourtCourt of Appeals of Arizona
DecidedJanuary 28, 2021
Docket1 CA-CV 19-0703
StatusUnpublished

This text of Tarter v. Bendt (Tarter v. Bendt) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tarter v. Bendt, (Ark. Ct. App. 2021).

Opinion

NOTICE: NOT FOR OFFICIAL PUBLICATION. UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

TIM TARTER, et al., Plaintiffs/Appellees,

v.

DOUGLAS BENDT, et al., Defendants/Appellants.

No. 1 CA-CV 19-0703 FILED 1-28-2021

Appeal from the Superior Court in Maricopa County No. CV2015-002596 The Honorable Margaret R. Mahoney, Judge

AFFIRMED

COUNSEL

Richards & Moskowitz, PLC, Phoenix By William A. Richards, Shayna Gabrielle Stuart Counsel for Plaintiffs/Appellees

Jones Skelton & Hochuli, PLC, Phoenix By Lori L. Voepel, Petra Lonska Emerson Counsel for Defendants/Appellants TARTER, et al. v. BENDT, et al. Decision of the Court

MEMORANDUM DECISION

Presiding Judge James B. Morse Jr. delivered the decision of the Court, in which Judge Maria Elena Cruz and Judge Paul J. McMurdie joined.

M O R S E, Judge:

¶1 Sonia and Douglas Bendt ("Bendts") appeal the jury verdict for defamation in favor of Tim and Christina Tarter ("Tarters"). For the following reasons, we affirm.

FACTS AND PROCEDURAL BACKGROUND

¶2 The Bendts are a married couple who purchased a condominium in the Fairway Lodge community ("Fairway") in 2008. The Tarters are also a married couple who have lived in Fairway since 2013.

¶3 Fairway is a luxury condominium complex governed by a homeowner's association board ("Board"). Homeowners must pay $795 monthly dues to the homeowner's association ("HOA"). Mr. Tarter and the Bendts ran in the 2013 HOA election. Mr. Tarter won a seat, and his fellow board members elected him president for 2014. During Mr. Tarter's term as HOA president, Mrs. Bendt launched a campaign, including a newsletter emailed to fellow HOA residents, attacking Mr. Tarter's reputation and his handling of the HOA presidency. The Tarters filed suit for defamation.

¶4 The Tarters' complaint identified many disparaging statements made by Mrs. Bendt in her July newsletter. The Tarters alleged that Mrs. Bendt's assertions were defamatory and caused her readers to falsely believe that: (1) Mr. Tarter lacked ethics and/or behaved unethically or illegally; (2) Mr. Tarter concealed material financial information from the HOA members; (3) Mr. Tarter misled HOA members and acted unlawfully; (4) Mr. Tarter conducted and facilitated "secret" Board meetings; and (5) Mr. Tarter wrongfully over-spent HOA funds which would cause an increase in monthly HOA fees. Based on our review, at trial the parties focused on: (1) whether Mr. Tarter was asked to resign from the Board; (2) an $8,000 payment to an exterminator; (3) a tree removal; (4) the Board's executive sessions; (5) $40,000 in alleged overspending; and (6) the monthly HOA fees.

2 TARTER, et al. v. BENDT, et al. Decision of the Court

¶5 The Tarters introduced evidence that Mrs. Bendt called Mr. Tarter "idiot," "fool," "spineless," "disgusting," "chicken shit," "lowlife," "low-class sneak," "unethical," "lazy," "weak," and "a complete fake" in front of fellow HOA members. Additionally, Mrs. Bendt wrote emails calling Mrs. Tarter, whom she had never met, "a bitch" and a "drinking dog walker." Mrs. Bendt also disparaged Mr. Tarter's legal education, insulted his alma matter, referred to him as a habitual liar, and unethical. Mrs. Bendt accused Mr. Tarter of violating his attorney ethical obligations, and wrote that he could be disciplined by the Arizona State Bar and investigated by the Attorney General ("AG").

¶6 After an eight-day trial, the jury awarded the Tarters $150,000 for reputational harm, $350,000 for emotional harm, and $1 million for punitive damages. The superior court awarded a further $20,120.42 in taxable costs.

¶7 The superior court denied the Bendts' motions for judgment as a matter of law and a new trial. The Bendts timely appealed. We have jurisdiction pursuant to A.R.S. §§ 12-120.21(A)(1) and -2101(A)(1).

DISCUSSION

I. Sufficiency of the Evidence – Actual Malice.

¶8 The parties stipulated that Mr. Tarter, as the HOA president, was a limited purpose public figure. Thus, the Tarters were required to prove that Mrs. Bendt's defamatory statements were "made with 'actual malice'—that is, with knowledge that it was false or with reckless disregard of whether it was false or not." New York Times Co. v. Sullivan, 376 U.S. 254, 279-80 (1964). The Bendts assert that insufficient evidence was presented to prove "actual malice," Mrs. Bendt reasonably believed certain claims about Mr. Tarter were true, and other claims were true or opinion.

¶9 Whether sufficient evidence supports a jury finding of "actual malice" is a "mixed question of law and fact subject to independent appellate review." Dombey v. Phx. Newspapers, Inc., 150 Ariz. 476, 486 (1986) (citing Bose Corp. v. Consumers Union, 466 U.S. 485, 511 (1984)). In performing an "independent appellate review," we "must exercise independent judgment and determine whether the record establishes actual malice with convincing clarity." Id. (quoting Bose, 466 U.S. at 514). Our supreme court directs us that the "failure to investigate is not reckless disregard per se, but it provides some evidence of actual malice when the facts confronting defendant are such that no reasonable person would fail to investigate." Id. at 487 (first citing St. Amant v. Thompson, 390 U.S. 727,

3 TARTER, et al. v. BENDT, et al. Decision of the Court

731-32 (1968); then citing Liberty Lobby, Inc. v. Anderson, 746 F.2d 1563, 1569 (D.C. Cir. 1984)). Finally, "[a]bsent an admission by the defendant that he knew his material was false or that he doubted its truth, a public figure must rely on circumstantial evidence to prove his case." Id. (citation omitted).

¶10 The Bendts argue that "independent review" means de novo review and we should resolve factual disputes in their favor. But independent review is not equivalent to de novo review of all facts and issues. Bose, 466 U.S. at 514 n.31; see also Mandel v. Boston Phx., Inc., 456 F.3d 198, 208 (1st Cir. 2006) ("Independent review is not a limitless ransacking of the record as a whole."); Smith v. Anonymous Joint Enter., 793 N.W.2d 533, 540 (Mich. 2010) ("Likewise, an appellate court should not conduct an independent review of credibility determinations, disregard findings of fact, or create new findings of fact."). Instead, "the reviewing court must 'examine for [itself] the statements in issue and the circumstances under which they were made to see . . . whether they are of a character which the principles of the First Amendment . . . protect,'" but "credibility determinations are reviewed under the clearly-erroneous standard because the trier of fact has had the 'opportunity to observe the demeanor of the witnesses . . . .'" Harte-Hanks Commc'ns, Inc. v. Connaughton, 491 U.S. 657, 688 (1989) (first quoting New York Times, 376 U.S. at 285; then quoting Bose, 466 U.S. at 499-500). Thus, our role is to "'examine for ourselves' the factual record in full" and "accord credibility determinations the special deference to which they are entitled . . . ." Newton v. Nat'l Broad.

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Tarter v. Bendt, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tarter-v-bendt-arizctapp-2021.