Wasserman v. Low

691 P.2d 716, 143 Ariz. 4, 1984 Ariz. App. LEXIS 509
CourtCourt of Appeals of Arizona
DecidedJune 12, 1984
Docket1 CA-CIV 6347, 1 CA-CIV 6383
StatusPublished
Cited by21 cases

This text of 691 P.2d 716 (Wasserman v. Low) 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
Wasserman v. Low, 691 P.2d 716, 143 Ariz. 4, 1984 Ariz. App. LEXIS 509 (Ark. Ct. App. 1984).

Opinion

OPINION

CONTRERAS, Presiding Judge.

The appellants had their respective licenses to sell insurance revoked following administrative hearings in which videotape interceptions were admitted in evidence. These revocations were upheld by the superior court. At issue in this appeal is whether certain videotape interceptions fall within the provisions of 18 U.S.C. § 2511(2)(d) of the Federal Wiretap Act, whether disclosure of those interceptions constitutes a violation of the Act and whether the absence of a seal on the tapes was in violation of the Act, so that the videotape interceptions should have been suppressed at the administrative hearings in which appellants’ licenses to sell insurance were revoked. We conclude that the exemption under that subsection of the statute does apply, that the disclosure of the videotape interceptions did not constitute a violation of that Act, and that no seal was required. Accordingly, we affirm.

FACTS

During the relevant time period appellants Wasserman and Archer were licensed insurance salesmen. The majority of insurance policies sold by both appellants during this period were medicare supplement insurance policies. These are policies designed for the elderly to offset the rising cost of health care by providing an insurance supplement to medicare insurance coverage. Based upon complaints and other information received by the Department of Insurance, the Director of that department initiated an investigation into abuses that had been reported in the sale of medicare supplement insurance policies to the elderly. As part of that investigation, the Department of Insurance collaborated with KPNX-TV in the television station’s independently initiated investigation into the sales practices of insurance agents.

Mrs. Lockwood, a 72 year old member of the Grey Panthers and a member of the Arizona Association of Retired Persons, agreed to assist in the investigation of the conduct of various insurance agents selling medicare supplement insurance policies to the elderly in Maricopa County. As part of this investigation, Mrs. Lockwood was provided with a list of names of various insurance agents under investigation. She proceeded to contact the offices of a number of these agents and requested that the agents come to her home to make a sales presentation of their medicare supplement insurance policies. Several agreed to do so and she set up individual appointments with each. She also consented to have KPNX-TV install equipment (audio and video) in her apartment which was capable of recording conversations with individuals present in her apartment. This equipment was concealed.

On March 26, 1980, in response to Mrs. Lockwood’s invitation, appellant Wasserman gave his sales presentation to her at her apartment. On or about April 7, 1980, appellant Archer, also in response to Mrs. Lockwood’s invitation, made his sales presentation of the same type of policy. At the time of their sales presentations, neither appellant knew that videotape and audio equipment had been set up in Mrs. Lockwood’s apartment by KPNX-TV. The entire conversations between Mrs. Lockwood and each of the insurance salespeople were recorded on equipment that had been hidden behind a two-way mirror in Mrs. Lockwood’s apartment.

Through the use of audio and video tape it was shown that specific misrepresentations concerning the medicare supplement policies were made by each appellant during his sales presentation. These misrepresentations included, among others, false statements concerning the extent of coverage, false statements concerning the effective date of coverage, and false statements concerning the dollar amount of coverage. In addition, appellant Wasserman, upon re *7 viewing a Mutual of Omaha policy, which Mrs. Lockwood showed to him as her existing medicare supplement insurance policy, falsely represented that the Mutual of Omaha policy provided less coverage than that offered by the Christian Heritage policy which he was promoting.

At the time these recordings were made, a representative from the Department of Insurance was also present in Mrs. Lockwood’s apartment but he was in the bedroom and had no opportunity to observe the discussions between Mrs. Lockwood and the various insurance agents. From the record it is not clear what purpose was served by his mere presence in her apartment. His presence is not germane. The Department of Insurance was aware that KPNX-TV planned to televise the tapes in its commercial telecasts. Following the videotaping, the tapes were turned over to the Department of Insurance for use in administrative hearings. KPNX-TV subsequently aired programs from edited portions of these tapes in five segments, including an hour long Sunday special.

Two separate disciplinary hearings of the Arizona State Department of Insurance were held. Both appellants Wasserman and Archer were charged with materially misrepresenting the coverage of Christian Heritage medicare supplement insurance policies to elderly persons. Appellants filed motions to suppress the videotapes with the Department of Insurance. These motions were denied and the hearings proceeded. The videotape evidence obtained from KPNX-TV was introduced at both hearings and appellants were questioned about the various misrepresentations the tapes showed them making to Mrs. Lockwood.

Appellant Archer was found to have willfully misrepresented medicare supplement insurance policies to Mrs. Lockwood and to Edith and William Phillips and his license to sell was revoked on February 3, 1981. Appellant Wasserman was found to have willfully misrepresented medicare supplement insurance policies to Mrs. Lockwood and to Mr. and Mrs. William Brizzee and his license to sell insurance was revoked on February 3, 1981. These revocations were based in substantial part on the videotape evidence provided by the television station.

Appellants Archer and Wasserman, in separate actions, appealed the revocations of their insurance licenses to the Superior Court of Maricopa County in an effort to overturn their respective license revocations. They asked that the denials of their motions to suppress the videotape evidence be reversed based upon alleged violations of the Federal Wiretap Act. After submission of briefs and oral argument, the revocations of appellants’ insurance license were upheld by the trial court.

In each appeal, it was determined that, under the facts and circumstances of the particular case, the intercepted communications were exempt from the provisions of the Federal Wiretap Act under 18 U.S.C. § 2511(2)(d). Because of the exemption, it was held in both appeals that appellants’ motions to suppress the use of the videotape evidence in the administrative hearings were appropriately denied. Both cases have been consolidated on appeal before this court.

ISSUES

Appellants’ contention, that the videotape evidence should have been suppressed in the administrative hearings, requires consideration of several issues which have been properly raised. They are the following:

(1) Whether the interceptions were for an injurious purpose and therefore were not exempt from the interception prohibitions of the Federal Wiretap by virtue of the consensual interception exemption of 18 U.S.C.

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Bluebook (online)
691 P.2d 716, 143 Ariz. 4, 1984 Ariz. App. LEXIS 509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wasserman-v-low-arizctapp-1984.