William C. O'DOnnell v. Cbs, Inc., a Foreign Corporation

782 F.2d 1414, 12 Media L. Rep. (BNA) 1697, 1986 U.S. App. LEXIS 22067, 54 U.S.L.W. 2455
CourtCourt of Appeals for the Seventh Circuit
DecidedFebruary 4, 1986
Docket85-1489
StatusPublished
Cited by7 cases

This text of 782 F.2d 1414 (William C. O'DOnnell v. Cbs, Inc., a Foreign Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William C. O'DOnnell v. Cbs, Inc., a Foreign Corporation, 782 F.2d 1414, 12 Media L. Rep. (BNA) 1697, 1986 U.S. App. LEXIS 22067, 54 U.S.L.W. 2455 (7th Cir. 1986).

Opinion

BAUER, Circuit Judge.

Plaintiff appeals the district court’s grant of summary judgment in favor of defendant as to several counts in plaintiff’s complaint alleging libel and violation of plaintiff’s right to privacy. We affirm the judgment of the district court.

I.

We construe the facts in this case in the light most favorable to plaintiff because he was the party opposing the motion for summary judgment. See Janowiak v. Corporate City of South Bend, 750 F.2d 557, 559 (7th Cir.1984). Plaintiff William C. O’Donnell had been employed by defendant CBS, Inc. (CBS) since 1962 and had held the position of Vice-President and General Manager of radio station WBBM-AM in Chicago since 1974. In this position O’Donnell headed the station’s editorial board and made all final decisions regarding editorials, including approval of the final text.

In January 1980, Eugene Murphy, a friend and neighbor of O’Donnell, wrote twice to O’Donnell in an attempt to interest O’Donnell in investing in Alburn, Inc. (Al-burn), a company which Murphy had helped establish. Alburn was in the business of incinerating toxic wastes and at that time Murphy anticipated an increase in business because EPA regulations were scheduled to go into effect which would have prohibited the burial of certain flammable liquid wastes in landfills. Murphy was therefore seeking capital to expand Alburn’s operations. O’Donnell did not invest in Alburn at that time, but continued to receive information about Alburn and the EPA regulations from Murphy.

In May or June 1980, O’Donnell assigned two WBBM-AM reporters to do a story on the dangers of burying liquid toxic wastes and recommended Murphy as a source for the story. On November 25, 1980, O’Donnell broadcast an editorial on WBBM-AM which he personally read, praising the EPA’s toxic waste regulations but criticizing the exclusion of “thousands of chemicals” from the regulations. This editorial, like all others, was discussed at a meeting of the editorial board which was chaired by O’Donnell, and O’Donnell approved of its content and final text.

The EPA regulations concerning toxic waste burial became effective on November 19, 1980, but the EPA failed to strictly enforce them. Executives at Alburn, including Murphy, began writing to the EPA complaining that the law enforcement was crippling its business. Copies of this correspondence were sent to O’Donnell.

In January 1981, O’Donnell acquired a five percent interest in Alburn, for which he paid $30,000. Some five months later O’Donnell became a member of Alburn’s board of directors. Also in January or in early February 1981, O’Donnell brought the problem of the EPA’s failure to enforce its own regulations to the attention of Susan Nixon, WBBM-AM’s Editorial Director, and suggested that she do an editorial concerning the subject. O’Donnell recommended Alburn as a source of information.

The editorial aired on February 9, 1981, and, at O’Donnell’s request, was read by Nixon. O’Donnell had told Nixon of his interest in Alburn and explained that it would be more appropriate if she read the station’s environmental editorials. O’Donnell also informed John Hultman, News Director of WBBM-AM, of his interest in *1416 Alburn. The edjtorial board agreed that the editorials were in the public interest, and CBS does not dispute this fact. Although O’Donnell subsequently filed conflict of interest statements with CBS officials in New York, he did not report his interest in Alburn in these statements, as required by CBS policy.

WBBM-AM broadcast five additional editorials on the disposal of toxic wastes and the EPA’s failure to enforce its regulations between March 1981 and February 1982. As in the case of the February 9th editorial, O’Donnell chaired the meetings and approved the final text of all these editorials and they were read on the air by Nixon. During this period of time, Alburn was also attempting to persuade the EPA to enforce its regulations. As a member of Album’s board of directors, O’Donnell attended directors’ meetings discussing the problem and participated in Alburn’s attempt to persuade the EPA to enforce the regulations.

On February 24, 1982, O’Donnell’s secretary, Sarah Oliver, telephoned Eugene Lothery,. Vice-President of CBS in charge of AM radio stations, in New York. Oliver told Lothery that she believed O’Donnell had a conflict of interest, and later explained that O’Donnell was a part owner of a toxic waste disposal company and that WBBM-AM had espoused a position favorable to the company in its editorials. Oliver told Lothery that she had copies of the editorials and correspondence between O’Donnell and the company because she had access to O’Donnell’s files and had typed his correspondence. Lothery directed Oliver to send him these copies.

Lothery received these materials and reviewed them with other officers of CBS in New York. They decided that if O’Donnell did have an interest in Alburn and the correspondence was indeed his own, and if he had participated in the editorials concerning toxic waste disposal, his employment would be terminated. O’Donnell was then summoned to New York to meet with the CBS officials on March 2, 1982.

At the meeting O’Donnell admitted his interest in Alburn. He stated that he had never concealed his interest and that it was well known at WBBM-AM. Robert Hosking, President of CBS radio, told O’Donnell that this made no difference. Hosking later stated that O’Donnell could have properly broadcast the editorials if he had absented himself totally from the editorial process and had asked Lothery or Lothery’s supervisor to approve them. Hosking then told O’Donnell that he was dismissed, effective immediately.

Upon O’Donnell’s firing, Hosking telephoned Lothery, who was in Chicago to arrange for O’Donnell’s replacement. When informed that O’Donnell had been fired, Lothery offered O’Donnell’s position to Greg Peterson, who accepted the offer. Lothery and Peterson then went to the radio station to introduce Peterson as the new general manager, and Lothery read the following statement to the twenty to thirty employees who had assembled:

William C. O’Donnell has been dismissed as Vice President, CBS Radio Division and General Manager, WBBM-AM/Chicago, effective immediately.
As General Manager of WBBM-AM, Mr. O’Donnell was responsible for all broadcast material aired on the station. CBS has learned that Mr. O’Donnell owns an approximately 5% financial interest in a Chicago company, Alburn, Inc., an incineration and chemical waste treatment company. During the period of time in which Mr. O’Donnell has owned this interest, he was involved with and authorized the broadcast of a number of editorials which urge governmental action on EPA issues, from which Alburn, Inc. stood to benefit. In addition, the station aired news and public affairs broadcasts on these issues.
CBS considers this to have been a conflict of interest which violated CBS policy. CBS is continuing to investigate this matter.

That evening, WBBM-AM broadcast this statement five times and WBBM-TV broadcast the statement twice. The statement was also broadcast five times on WBBM-AM the following morning.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Torres Figueroa v. Vélez Rivera Y Otros
Supreme Court of Puerto Rico, 2022
Wayment v. Clear Channel Broadcasting, Inc.
2005 UT 25 (Utah Supreme Court, 2005)
San Antonio Express News v. Dracos
922 S.W.2d 242 (Court of Appeals of Texas, 1996)
Peterman v. Clegg
641 A.2d 867 (Supreme Judicial Court of Maine, 1994)
Dorothy Stevens v. Dorothy Wright Tillman
855 F.2d 394 (Seventh Circuit, 1988)
Naviera Despina, Inc. v. Cooper Shipping Co., Inc.
676 F. Supp. 1134 (S.D. Alabama, 1987)
Reklau v. Merchants National Corp.
808 F.2d 628 (Seventh Circuit, 1986)
Gary W. Reklau v. Merchants National Corporation
808 F.2d 628 (Seventh Circuit, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
782 F.2d 1414, 12 Media L. Rep. (BNA) 1697, 1986 U.S. App. LEXIS 22067, 54 U.S.L.W. 2455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-c-odonnell-v-cbs-inc-a-foreign-corporation-ca7-1986.