Wade v. Wood

CourtDistrict Court, N.D. Georgia
DecidedMarch 12, 2024
Docket1:22-cv-01073
StatusUnknown

This text of Wade v. Wood (Wade v. Wood) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wade v. Wood, (N.D. Ga. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

Nicole Jennings Wade, Jonathan D. Grunberg, and G. Taylor Wilson,

Plaintiffs, Case No. 1:22-cv-1073-MLB v.

L. Lin Wood,

Defendant.

________________________________/

OPINION & ORDER Plaintiffs bring this defamation action against Defendant for falsely accusing them of criminal extortion. Defendant now moves for summary judgment. (Dkt. 69.) Plaintiffs also move for partial summary judgment. (Dkt. 71.) The Court grants Plaintiffs’ motion and denies Defendant’s. I. Background The parties are attorneys who previously worked together at Defendant’s law firm. (Dkt. 85-1 ¶ 17.) In February 2020, after Plaintiffs left the firm, the parties agreed to split the firm’s future contingency fees in (1) three cases that had not yet settled, and (2) three cases that had settled but for which the firm had not yet received payment. (Dkts. 72-1 at 11–12, 30–31; 85-1 ¶ 18.) The agreement entitled Plaintiffs to 50–80%

of the fees depending on the case. (Dkt. 72-1 at 11–12.)1 Just days after the parties reached this agreement, Defendant told Plaintiffs he would not comply with it—even though it was his idea—

because he believed the parties had other issues that required resolution. (See Dkts. 1 ¶¶ 36–38; 72-1 at 11–12, 19–20; 85-1 ¶ 19.) This led to a

second agreement in March 2020. (Dkt. 85-1 ¶ 20.) The March agreement—which Defendant proposed and drafted—(1) incorporated the fee-splitting arrangement from the February agreement; (2) required

Plaintiffs to contribute $285,000 to the firm’s lease obligation; (3) required the firm to pay Plaintiffs 10% of its future contingency fees

1 The Court generally disregards any evidence or facts not included in the parties’ statements of material facts in the required form. See LR 56.1, NDGa.; Reese v. Herbert, 527 F.3d 1253, 1268 (11th Cir. 2008) (compliance with Local Rule 56.1, which the Eleventh Circuit holds in “high esteem,” is “the only permissible way . . . to establish a genuine issue of material fact”); see also Chavez v. Sec’y Fla. Dep’t of Corr., 647 F.3d 1057, 1061 (11th Cir. 2011) (“[D]istrict court judges are not required to ferret out delectable facts buried in a massive record.”). The Court also declines to “distill every potential argument that could be made based upon the materials before it on summary judgment. . . . [T]he onus is upon the parties to formulate arguments.” Resolution Tr. Corp. v. Dunmar Corp., 43 F.3d 587, 599 (11th Cir. 1995). in two additional cases that were still pending; (4) required the firm to pay Plaintiffs 80% of any fees it recovered from a client who owed the

firm almost $200,000; and (5) prohibited Defendant from disparaging Plaintiffs. (Dkts. 71-4 ¶ 25; 72-1 at 30–36; 85-1 ¶¶ 20–21.) To effectuate some of these terms, the agreement required Defendant’s firm to pay

Plaintiffs a lump sum of $647,949.99 (Plaintiffs’ total fees for the three settled cases minus Plaintiffs’ $285,000 lease contribution) within

72 hours after the firm received fees in the largest settled case. (Dkts. 72-1 at 30–32; 85-1 ¶¶ 22–23.) The agreement also required Defendant’s firm to pay Plaintiffs fees from the unsettled cases within 72 hours after

the firm received those fees. (Dkts. 72-1 at 31–32; 85-1 ¶ 23.) In July 2020, Defendant’s firm received fees that appeared to trigger its obligation to pay Plaintiffs the $647,949.99 lump sum plus

10% of the firm’s recovery for a case that settled after the March agreement. (Dkt. 85-1 ¶¶ 24–25.) Plaintiffs repeatedly asked Defendant for those payments. (Dkt. 85-1 ¶¶ 26–29.) Defendant refused. (Dkt. 85-

1 ¶¶ 26–29.) On August 25, 2020, Plaintiffs told Defendant they would sue him for breach of contract and fraud if he did not pay what they demanded. (Dkt. 85-1 ¶ 30.) Defendant asked Plaintiffs to hold off on filing suit so they could discuss settlement. (Dkt. 85-1 ¶ 31.) To accommodate that

request, and with the agreement of both sides, Plaintiffs sent Defendant a copy of their draft complaint and confirmed they would not file suit before August 27, 2020. (Dkt. 85-1 ¶¶ 32–33.)

On August 26, 2020, Defendant contacted some of Plaintiffs’ clients and co-counsel and said Plaintiffs were “extortionists” who were

threatening to sue him in order to “extort” money from him. (Dkts. 71-4 ¶ 37; 85-1 ¶ 35.) Later that day, after the parties agreed to exchange settlement offers, Plaintiffs sent Defendant a written demand for

$1.25 million. (Dkt. 85-1 ¶¶ 36–37.) Plaintiffs said this amount would “buy them out of” the March agreement and resolve Plaintiffs’ claims for breach of contract, fraud, attorneys’ fees, defamation, and breach of the

non-disparagement clause in the March agreement. (Dkts. 71-4 at 109; 85-1 ¶ 37.) Plaintiffs initially gave Defendant one day to accept the offer. (Dkts. 71-4 at 109; 85-1 ¶ 42.) But, at Defendant’s request, Plaintiffs

extended the deadline by four days. (Dkts. 71-4 at 110–111; 85-1 ¶ 43.) Defendant ultimately rejected Plaintiffs’ settlement offer, and Plaintiffs filed their complaint in state court. (Dkt. 85-1 ¶¶ 45–46.) During a five-week period the following year, Defendant repeatedly accused Plaintiffs of criminal extortion in a series of messages he posted

on a social media platform called Telegram. (See Dkt. 85-1 ¶¶ 1–16.) Some of the messages accused Plaintiffs of extortion without much explanation. (See Dkt. 85-1 ¶¶ 2, 4, 8.) Some claimed Plaintiffs’

$1.25 million settlement demand was extortion. (See Dkt. 85-1 ¶¶ 3, 9, 12–14, 16.) And some claimed Plaintiffs extorted Defendant into the

March agreement—or otherwise sought to extort money from him—by making “false claims about [his] mental health,” threatening to publicize those claims, “interfer[ing] with [his] relationship with [his] children,”

and “threatening [his] efforts to get President Trump to award Richard Jewell the Presidential Medal of Freedom.” (Dkt. 85-1 ¶¶ 1, 13, 16.) Hundreds of thousands of people viewed Defendant’s messages. (Dkt. 85-

1 ¶ 58.) In March 2022, Plaintiffs sued Defendant in this case for defamation based on his extortion accusations. (Dkt. 1.) The parties now

move for summary judgment. (Dkts. 69; 71.) II. Standard of Review Summary judgment is appropriate when “the movant shows that

there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). III. Discussion

Under Georgia law, which applies here, “a claim for defamation has four elements: (1) a false and defamatory statement concerning the

plaintiff; (2) an unprivileged communication to a third party; (3) fault by the defendant amounting at least to negligence; and (4) special harm or the actionability of the statement irrespective of special harm.” Am. C.L.

Union, Inc. v. Zeh, 864 S.E.2d 422, 427 (Ga. 2021). The parties cross-move for summary judgment on elements (1), (2), and (4). Defendant also moves for summary judgment on element (3). The Court

sides with Plaintiffs on all four elements. A. First Element: False and Defamatory Statement The first element of a defamation claim requires a statement that

was false, defamatory, and about the plaintiff. Id. It is undisputed that Defendant’s extortion accusations were about Plaintiffs. (See Dkt. 85-1 ¶¶ 1–16, 57.) So the question is whether the accusations were false and defamatory. Plaintiffs say they were as a matter of law. (Dkt.

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