Waicker v. Scranton Times Ltd. Partnership

688 A.2d 535, 113 Md. App. 621, 1997 Md. App. LEXIS 19
CourtCourt of Special Appeals of Maryland
DecidedFebruary 5, 1997
Docket782, Sept. Term, 1996
StatusPublished
Cited by3 cases

This text of 688 A.2d 535 (Waicker v. Scranton Times Ltd. Partnership) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waicker v. Scranton Times Ltd. Partnership, 688 A.2d 535, 113 Md. App. 621, 1997 Md. App. LEXIS 19 (Md. Ct. App. 1997).

Opinion

THIEME, Judge.

“A word is not a crystal, transparent and unchanged, it is in the skin of a living thought and may vary greatly in color *624 and content according to the circumstances and the time in which it is used.” 1

Appellant Gary W. Waicker appeals from summary judgment rendered against him by the Circuit Court for Baltimore City (Heller, J., presiding) in the defamation action he filed against appellee, Scranton Times Limited Partnership, which publishes the Baltimore edition of the City Paper. In this case we must decide, as a matter of law, whether a real estate investor is a limited purpose public figure and, if so, whether a media defendant who printed allegedly defamatory statements did so with actual malice (knowing the statements were false or making statements with reckless disregard for the truth). We find that Waicker was a limited purpose public figure and that the City Paper did not print statements concerning him with actual malice. Accordingly, we shall affirm the judgment of the trial court.

This defamation suit arose from statements made in an article appearing in the City Paper on 5 April 1995. The article was entitled “Blockbuster” and concerned the business practices of Gary W. Waicker and his companies, Investment Realty Specialists, Cavalier Realty, and Monopoly Realty.

Waicker does not dispute many of the facts that formed the basis of the article. First, Waicker’s businesses purchased and sold real estate primarily in the Patterson Park and Belair-Edison communities in Baltimore City. Second, Waicker’s businesses often purchased property and then sold the same property a short time later at a profit. 2 Third, if the new purchaser was an out-of-town investor, Waicker’s businesses often managed the property which it had just sold. *625 Finally, it is undisputed that since the late 1970’s Waicker’s practices received attention in the community and the local media.

Reporters for the City Paper and Deirdre Shesgreen and Van Smith, the authors of the article at issue, interviewed members of local community organizations 3 456789and people who purchased property from Waicker’s companies. Waicker refused the reporters’ request for an interview.

Based on these interviews, the article concluded that Waicker “targets” a particular neighborhood by purchasing properties, and then “rents out some houses and sells others to investors and manages the property for them.” According to the City Paper article, Waicker sold property by promising potential investors the new tenants would be Section 8 tenants.

Section 8 is the federal rent subsidy program for the poor. Under this program, tenants who could not normally afford to rent property receive monthly supplements which enable them to live in higher rent properties. It is desirable for landlords to rent to Section 8 tenants because the government pays a *626 portion of the tenant’s rent every month. This assures landlords of at least partial payment of rent.

Vincent Quaiye, director of the St. Ambrose Housing Aid Center (a nonprofit group that works on housing issues) was cited in the article as saying that Waicker’s business tactics sparked the beginning of a pattern of decline for a neighborhood: when people saw their neighbors moving and selling to absentee landlords or investors, they got worried and were more willing to sell.

Waieker profited on this fear, according to the article’s sources, by offering cash to homeowners to sell their houses at deflated prices. A large sign outside his office in BelairEdison read:

WE PAY CASH FOR HOUSES-FAST CASH.

According to Ed Rutkowski, the director of Patterson Park Neighborhoods Initiative, a neighborhood revitalization project, Waicker’s practices were “almost single-handedly responsible for the destruction of East Baltimore.”

The article also drew an analogy between Waicker’s practices and the despicable “blockbusting” tactics of the 1950’s and 1960’s. Blockbusting exploited racial bigotry in the following manner.' A person or company would purchase one home in an all-white neighborhood. After moving an African-American tenant into the newly purchased home, the landlord would try to convince the remaining neighbors to sell by telling them the value of their property would decrease significantly because Of the influx to the neighborhood of African-Americans. This practice is now prohibited by Md.Code Ann., Bus. Occ. & Prof., § 17-608 (1995 Repl.Vol. & Supp.1996).

Waieker brought suit in the Circuit Court for Baltimore City, alleging that the following paragraphs of the article were defamatory:

If Waieker was following the footsteps of the blockbusters, the next step would be to move in a tenant who would worry other neighbors. And although it is hard to prove definitively that Waieker tries to find the poorest, loudest, and *627 most irresponsible tenants he can to move into a new block, those who monitor his activities believe it is the way he operates.
No one believes Waicker is practicing the same blatant blockbusting tactics that others did in past decades. But at best, critics say, Waicker makes a handsome profit by convincing sellers, sometimes with scare tactics, that their houses are worth less than the true market value, and then persuade buyers to pay more than they should; in that process, he leaves neighborhoods to deal with the loss of home ownership and leads some unsophisticated investors into deep financial trouble. At worst, his critics say, Waicker uses this exploitive practice to make property values in certain neighborhoods plummet — in a manner that is sometimes strikingly similar to the blockbusting of past decades.
Durkin is more certain of Waicker’s attempts to drive down property values. “It is definitely a mode of operating,” she says. “He puts lousy tenants in and hangs back and waits for a few more homeowners to drop and makes $15,000 a pop.”
That combination — fewer homeowners, lax investors, deteriorating property, and a demographic shift — can send a neighborhood into a spiral, Qualye says. He and others believe that once a neighborhood begins to decline, Waicker exploits the situation further. Through advertisements and other methods, Qualye says, Waicker plays on the fears of those who worry that their neighborhood is changing racially or economically — and that therefore their property value will drop.
(Qualye was only one of many community housing activists to make the connection between Waicker and subtle blockbusting.)
*628

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Bluebook (online)
688 A.2d 535, 113 Md. App. 621, 1997 Md. App. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waicker-v-scranton-times-ltd-partnership-mdctspecapp-1997.