Theodore Theologis v. Mark Weiler

Court of Appeals of Virginia·Decided February 16, 2023·No. 0133224·Published

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Athey, Chaney and Raphael PUBLISHED

Argued at Winchester, Virginia

THEODORE THEOLOGIS

OPINION BY

v. Record No. 0133-22-4 JUDGE STUART A. RAPHAEL FEBRUARY 14, 2023

MARK WEILER, PATRICIA JAMES, DARIA COLLINS, KHAI WISLER AND JANIS BALDWIN

FROM THE CIRCUIT COURT OF FREDERICK COUNTY Brian M. Madden, Judge

Nicholas Hantzes (Hantzes & Associates, on briefs), for appellant.

William L. Mitchell, II (Richard E. Armstrong IV; Jay Ian Igiel;

Timothy R. Johnson; James A. Klenkar; Eccleston & Wolf, P.C.;

Nealon & Associates, P.C.; The Law Offices of Timothy R. Johnson, PLC; Hall, Monahan, Engle, Mahan & Mitchell, on briefs), for appellees.

This case arose in 2020 when Theodore Theologis sued several of his fellow townhome-

association members after they publicly criticized his performance as the association’s president.

His three-count complaint asserted claims of defamation and business conspiracy. Because the trial court correctly found that the statements in question were not defamatory, we affirm its decision sustaining the defendants’ demurrers.

BACKGROUND

In reviewing a trial court’s decision sustaining a demurrer, “we accept as true all factual allegations in the complaint ‘made with “sufficient definiteness to enable the court to find the existence of a legal basis for its judgment.”’” Patterson v. City of Danville, ___ Va. ___, ___ (July

7, 2022) (quoting Squire v. Va. Hous. Dev. Auth., 287 Va. 507, 514 (2014)). But we are not bound by the pleader’s conclusions of law that are couched as facts. Id.

Fieldstone Townhome Association, Inc. is the homeowners’ association for the Fieldstone townhome development, a residential community in Winchester consisting of 225 townhomes. One membership vote is allocated to the owners of each townhome. The association is managed by a board comprised of five directors elected by the members. The board of directors elects the association’s officers: the president, vice-president, secretary, and treasurer.

In 2017, the association’s members elected Theologis to serve a three-year term on the board of directors. In 2019, the board of directors elected him to serve as the association’s president. The board reelected him in 2020 to serve as president through the end of his three-year term on the board.

The five defendants here are all Fieldstone townhome residents; some previously served on the board of directors. In July 2020, about two-dozen townhome residents, including three of the defendants, signed a petition to remove Theologis from the board. A special meeting of the association to consider that petition was scheduled for August 11, 2020.

In July 2020, four defendants—Daria Collins, Tricia James, Khai Wisler, and Mark Weiler—wrote a letter to their “Fellow Fieldstone” homeowners, urging them to vote Theologis out of office. That July 2020 letter listed various grievances about his performance as an officer and director. It said, for instance, that Theologis had “made repeated efforts to impose far more restrictive policies than provided for in the Covenants & By-Laws” and that he had “usurp[ed] the authority granted to the Board as a whole via the Covenant & By-Laws.” At the special meeting, however, there were not enough votes against Theologis, so the removal effort fizzled.

Before a homeowners’ association meeting on December 15, 2020, defendant Wisler wrote a social-media post on the website NextDoor, urging a fellow townhome resident to attend the

meeting and to voice her concerns about the association’s operations. Wisler wrote that “Theologis is capricious in his enforcement of [HOA] policy (even as he has broken our HOA bylaws).” Wisler added that Theologis “should be leaving the board at that date and you should have more reasonable people on the review board.”

Theologis filed a three-count complaint in the Circuit Court of Frederick County. Count I alleged that defendants Weiler, James, Collins, and Wisler defamed him when they circulated their July 2020 letter. Paragraph 62 of the complaint listed 24 separate statements in the letter that Theologis identified as defamatory. He attached the letter itself as Exhibit 1 to the complaint. Theologis requested $1 million in compensatory damages and $350,000 in punitive damages.

Count II alleged that Wisler’s NextDoor post was also defamatory, for which Theologis sought $350,000 in compensatory damages and $350,000 in punitive damages against Wisler. The complaint attached Wisler’s post as Exhibit 2.

Count III alleged that all five defendants conspired to injure Theologis in his trade, business, and occupation, in violation of the Virginia business-conspiracy statute, Code §§ 18.2-499 to 18.2-500. Theologis pleaded that he owns a real-estate-brokerage and property-management company in Frederick County and that he is a licensed attorney with a law practice in Virginia. He claimed that the defendants’ actions injured his professional reputation by “preventing and hindering [him] from conducting his business in Fieldstone and in Frederick County.” This is the only count against Janis Baldwin, who did not sign the allegedly defamatory statements about Theologis. Theologis alleged that Baldwin is a former member of the board of directors and a friend of defendant James and that Theologis had several disagreements with Baldwin about HOA rules and policies. Count III requested $1 million in compensatory damages and treble damages and attorney fees against all five defendants under Code § 18.2-500.

Each defendant filed a separate demurrer. All five argued that Count III failed to state a business-conspiracy claim against them. Defendant Baldwin argued that the statements at issue were not defamatory and that the complaint did not plead facts showing her participation in any scheme to defame Theologis. The other four defendants argued that the complaint failed to identify the exact words alleged to be defamatory and that the statements, in any case, were not defamatory.

Two defendants—Weiler and James—also claimed that Theologis had failed to plead New York Times malice.1 They argued that Theologis was a limited-purpose public figure and that the complaint failed to show that the defendants knew that their statements were false or probably false. Some but not all defendants also asserted the defense of common-interest privilege.

The circuit court heard argument on the demurrers, but no court reporter was present. The court entered a final order reciting, “Defendants’ demurrers are sustained with prejudice for the reason(s) stated by the Court at the hearing . . . , which are incorporated herein by reference.” The parties subsequently disagreed over the accuracy of Theologis’s proposed written statement in lieu of a transcript. See Rule 5A:8(c). The circuit court entered a “written statement of facts” rejecting Theologis’s proposed statement as “inaccurate” and clarifying that the court had sustained the demurrers on the grounds raised by each defendant. Theologis timely appealed.

ANALYSIS

We exercise de novo review of the circuit court’s decision sustaining the defendants’

demurrers. Givago Growth, LLC v. iTech AG, LLC, 300 Va. 260, 264 (2021). The circuit court said that it sustained those demurrers on every ground raised by each of the five defendants. The

1 See New York Times Co. v. Sullivan, 376 U.S. 254, 279-80 (1964) (holding that the First Amendment “prohibits a public official from recovering damages for a defamatory falsehood relating to his official conduct unless he proves that the statement was made with ‘actual malice’—that is, with knowledge that it was false or with reckless disregard of whether it was false or not”); Great Coastal Express, Inc. v. Ellington, 230 Va. 142, 149 n.3 (1985) (distinguishing “New York Times malice” from “common-law malice, a different and broader concept”), overruled in part on other grounds by Cashion v. Smith, 286 Va. 327, 338 (2013).

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