Weidman v. Hildebrandt

2024 Ohio 2931, 178 Ohio St. 3d 3
Ohio Supreme Court·Decided August 8, 2024·No. 2022-0837 & 2022-1042·Published·Cited by 3 cases

Opinion

[This opinion has been published in Ohio Official Reports at 178 Ohio St.3d 3.]

WEIDMAN, APPELLEE, v. HILDEBRANT, APPELLANT. [Cite as Weidman v. Hildebrant, 2024-Ohio-2931.] Statute of limitations—R.C. 2305.11—Libel—Discovery rule—Discovery rule applies to claims of libel based on reputational injuries when the publication of the libelous statements was secretive, concealed, or otherwise inherently unknowable to plaintiff due to nature of the publication—Discovery rule applies to derivative claims that are premised on the same allegations as the claim of libel—Court of appeals’ judgment affirmed and cause remanded. (Nos. 2022-0837 and 2022-1042—Submitted May 16, 2023—Decided August 8, 2024.) APPEAL from and CERTIFIED by the Court of Appeals for Warren County, No. CA2021-09-084, 2022-Ohio-1708. __________________ DONNELLY, J., authored the opinion of the court, which STEWART, BRUNNER, and MAYLE, JJ., joined. MAYLE, J., authored a concurring opinion. FISCHER, J., concurred in judgment only. KENNEDY, C.J., and WILKIN, J., dissented, with opinions. KRISTY S. WILKIN, J., of the Fourth District Court of Appeals, sat for DEWINE, J. CHRISTINE MAYLE, J., of the Sixth District Court of Appeals, sat for DETERS, J.

DONNELLY, J. I. INTRODUCTION {¶ 1} In this appeal, we are asked to determine when a cause of action for libel accrues when the reputational injury caused to the defamed person is inherently unknowable because the publication of the libelous statements was SUPREME COURT OF OHIO

secretive or concealed. We hold that the discovery rule applies to claims of libel based on reputational injuries when the publication of the libelous statements was secretive, concealed, or otherwise inherently unknowable to the plaintiff due to the nature of the publication. We also hold that the discovery rule applies to derivative claims that are premised on the same allegations as the claim of libel. Accordingly, we affirm the judgment of the Twelfth District Court of Appeals. II. FACTS AND PROCEDURAL HISTORY {¶ 2} Appellant, Christopher Hildebrant, is a Cincinnati-based real-estate developer. In 2011, Hildebrant facilitated the sale of property owned by SDI Foods, Inc. (“SDI Foods”), to Sycamore Township for development. If SDI Foods successfully sold the property to Sycamore Township, Hildebrant expected to receive a consulting fee from both Sycamore Township and SDI Foods. During the facilitation of the transaction, Hildebrant worked with SDI Foods representative Stanford Roberts and the Sycamore Township Board of Trustees, a board on which appellee, Thomas Weidman, served. Hildebrant has alleged that Roberts and Weidman each sought a kickback from Hildebrant, whose consulting fees for the transaction would have been substantial. Hildebrant has further alleged that Weidman threatened to block the transaction unless he received his payment. Hildebrant has claimed that in order to appease them and “save the deal,” he told both Roberts and Weidman that he would pay each of them, although Hildebrant has also asserted that he never intended to make either payment. {¶ 3} Hildebrant has claimed that he never paid any money to either Weidman or Roberts but that Roberts aggressively pursued the illicit payment. To alleviate the pressure, Hildebrant created a fictitious email account with the address tweidman12@gmail.com and sent an email (the “2011 email”) from that account to himself on December 20, 2011. The email portrayed Weidman as having accepted an illicit payment from Hildebrant and demanding more payments in exchange for his support in another real-estate transaction. Hildebrant forwarded

2 January Term, 2024

the 2011 email to Roberts to show that he did not have enough money to pay Roberts, because Weidman had already demanded significant payments. The 2011 email remained private between Hildebrant and Roberts for the next several years. {¶ 4} In 2019, Hildebrant sought to purchase a parcel of land owned by Sycamore Township on behalf of his development group. The parcel purchase required unanimous consent by the Sycamore Township Board of Trustees, on which Weidman still served. Weidman opposed the sale of the parcel of land. {¶ 5} On January 25, 2020, Hildebrant met with Sycamore Township Trustee James LaBarbara and Sycamore Township Administrator Raymond Warrick to discuss the parcel purchase. During the meeting, Hildebrant asserted that Weidman’s opposition to the sale was in retaliation for Hildebrant’s failure to pay Weidman a kickback from the SDI Foods transaction in 2011 and Hildebrant showed the 2011 email to LaBarbara and Warrick. {¶ 6} Because the 2011 email revealed potential illegal conduct, the auditor of Ohio was notified and an investigation was initiated. The auditor’s special- investigations unit (“SIU”) subpoenaed the 2011 email. On November 18, 2020, Weidman first learned of the 2011 email during an interview with investigators from the SIU. Weidman denied the 2011 email’s authenticity, telling the investigators he owned no such email address and did not write the email. Weidman did not receive a copy of the 2011 email until January 2021. {¶ 7} Weidman filed suit against Hildebrant on February 17, 2021, claiming defamation, intentional infliction of emotional distress (“IIED”), and false-light invasion of privacy. In his answer, Hildebrant admitted that he had created the 2011 email and had shared it with LaBarbara and Warrick but raised the affirmative defense that Weidman’s claims were barred by the statute of limitations. {¶ 8} Hildebrant filed a motion for summary judgment, arguing that because the 2011 email, which forms the basis of Weidman’s claims, was forwarded to Roberts in December 2011, Weidman’s defamation claim was time-

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barred. Likewise, Hildebrant argued that the IIED and false-light-invasion-of- privacy claims were also time-barred because those claims are derivative of the alleged defamation. Alternatively, Hildebrant argued that even if the court found that the date of publication was January 25, 2020—when the 2011 email was first shown to LaBarbara and Warrick—the claims were still time-barred because the complaint was filed in February 2021, more than a year after the publication to LaBarbara and Warrick. {¶ 9} Weidman opposed the motion for summary judgment, arguing that the “discovery rule” applied because the publication of the 2011 email had been done in secret. Weidman argued that the running of the statute-of-limitations period had been tolled until November 2020 when he learned about the 2011 email during the SIU interview. {¶ 10} The trial court granted Hildebrant’s motion for summary judgment, relying on Rowan v. Schaffer, 2019-Ohio-3038, ¶ 3 (8th Dist.), which held that a defamation claim accrues at the time that the allegedly defamatory statement is first published to a third party. The court of appeals in Rowan rejected the discovery rule’s application to defamation claims, noting that it is of no legal consequence that the “subject of the alleged defamation does not discover the statements until after the running of the statute of limitations.” Id. {¶ 11} Weidman appealed, and the Twelfth District Court of Appeals reversed, holding that the discovery rule applied to defamation claims when the publication of the defamatory statements was secretive, concealed, or otherwise inherently unknowable. 2022-Ohio-1708, ¶ 29 (12th Dist.). The court of appeals relied on O’Stricker v. Jim Walter Corp., 4 Ohio St.3d 84 (1983), and subsequent cases in which we applied the discovery rule. 2022-Ohio-1708 at ¶ 23 (12th Dist.). On Hildebrant’s motion, the Twelfth District certified that its decision was in conflict with decisions from other appellate districts. We subsequently determined that a conflict exists and ordered briefing on the following issues:

4 January Term, 2024

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