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HomeMy WebLinkAbout2001-3507 Civil ALBERT H. "BUCK" SHULLER, Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW DANIEL L. DANNER, Defendant NO. 01-3507 CIVIL TERM IN RE: OPINION PURSUANT TO P A. R.A.P. 1925 OLER, 1., June 28, 2006. In this defamation case, following a bench trial the court entered a verdict in favor of Plaintiff and against Defendant and awarded damages in the amount of $500.00.1 Defendant's motion for post-trial relief, in the form of a motion for judgment notwithstanding the verdict,2 was denied by the court en banc3 and judgment was subsequently entered on the verdict.4 From this judgment, Defendant has filed an appeal to the Pennsylvania Superior Court. 5 The issues on Defendant's appeal have been expressed in a statement of matters complained of on appeal as follows: 1. Did the lower Court commit an error of law or abuse of discretion in awarding damages to a public official for statements made by Appellant in a campaign flyer distributed during a primary election in which Appellee defeated the candidacy of Appellant?6 2. Did the lower Court commit an error of law or abuse of discretion in finding Appellant liable for defamatory statements against a public 1 Order of Court, December 30,2005. 2 Defendant's Motion for Judgment Notwithstanding the Verdict, filed January 9, 2006. 3 Order of Court, March 29,2006. 4 Praecipe for Entry of Judgment, filed April 27, 2006. 5 Defendant's Notice of Appeal, filed April 28, 2006. 6 This general ground for appeal will not be addressed in the present opinion, except to the extent that it can be regarded as based upon the specific grounds set forth elsewhere in the statement of matters complained of on appeal. See Commonwealth v. Reyes, 582 Pa. 317, 326 n.3, 870 A.2d 888, 894 n.3 (2005) (boilerplate assertion in statement of matters complained of on appeal held not reviewable). official without clear and convincing evidence of actual malice being presented by Appellee? 3. Did the lower court commit an error of law or abuse of discretion in finding that Appellee as a public official suffered actual damage from Appellant's campaign flyer when Appellee prevailed in the primary election, publicly initiated the subject litigation prior to the general election, and is currently an employee of and active politically in Penn Township, Cumberland County?7 This opinion in support of the judgment is written pursuant to Pennsylvania Rule of Appellate Procedure 1925(a). STATEMENT OF FACTS Defendant's appeal may be regarded as a challenge to the en bane court's denial of his motion for judgment notwithstanding the verdict. 8 In this regard, "the evidence must be considered in the light most favorable to the verdict winner, and he must be given the benefit of every reasonable inference of fact arising therefrom, and any conflict in the evidence must be resolved in his favor." Boutte v. Seitchik, 719 A.2d 319,322 (1998) (citation omitted).9 Viewed in this light, the evidence in this case may be summarized as follows: Plaintiff is Albert H. Shuller, an individual residing at 120 Leeds Road, Newville (Penn Township), Cumberland County, Pennsylvania.lO Defendant is Daniel L. Danner, an individual residing at 1046 Centerville Road, Newville (Penn Township), Cumberland County, Pennsylvania. 11 In May of 2001, both parties were candidates for the Republican nomination for the elected office of Penn Township supervisor. 12 Two days before 7 Defendant's Statement of Matters Complained of on Appeal, filed May 18,2006. 8 As a general rule, issues cognizable on appeal in a civil case are those which have been preserved in a motion for post-trial relief. See, e.g., Diener Brick Co. v. Mastro Masonry Contractor, 885 A.2d 1034, 1038 (Pa. Super. Ct. 2005). 9 A single judge's findings, approved by a court en banc, have the same effect as a jury's verdict. Durso v. D 'Urso, 409 Pa. 487, 489, 187 A.2d 270,271 (1963). 10 NT. 61-62, Trial, December 21, 2005 (hereinafter N T. ~. 11 NT. 4. 12 NT. 7, 48. 2 the primary election, which was held on May 15, 2001,13 Defendant went door-to- door in the township distributing caples of a campaign flyer which he had prepared; he also gave out other copies following a township meeting, and distributed more copies on election day. 14 Of the hundred copies of the flyer he had printed, he distributed at least fifty. 15 The purpose of the flyer was to defeat Plaintiff in the election. 16 Defendant's flyer described Defendant as a "[1 life time resident of Penn Township [who] attended Big Spring School District, [was] a Contractor for 40 years in Penn Township, [was] retired, and [had been an] Elected Auditor for [a] 6 year term.,,17 It accused Plaintiff, the incumbent chairman of the township's board of supervisors, of "improper conduct."18 In particular, it made the following specific accusations of misconduct in office: Shuller collected money for being a road superintendent, a title he created, and all he did was the normally required duties as elected supervisor, collected money in violation of state law. Shuller improperly placed himself and wife on the Township Health Insurance Plan in the middle of a six-year term as supervisor. Violated state law by voting himself compensation while in office and not waiting until next term. Mr. Shuller violated the Pennsylvania Sunshine and Open Records Law when the current township secretary and treasurer were hired. Albert Shuller violated state law and the township second class code when he privately negotiated and signed a contract with an Advertising company to construct two bill board signs along Interstate 81 on township property. Mr. Shuller secretly authorized the leasing of the township property without allowing the public to bid on the lease. Albert Shuller was the only Supervisor to sign the contract. Albert Shuller using his personal and township attorney Ron Turo attempted to bribe another supervisor with jobs for voting yes with Albert 13 NT. 47-48. 14 NT. 12. 15 NT. 12. 16 NT. 7,10-11. 17 Plaintiffs Exhibit 1, Trial, December 21,2005 (hereinafter Plaintiffs/Defendant's Exhibit~. 18 Plaintiffs Exhibit 1. 3 Shuller at township meetings. This offer of a bribe was given on township property. As Auditor Daniel Danner and fellow elected auditors are denied permission to access the computerized financial and other records of the h. 19 towns Ip. Notwithstanding the publication of this material immediately prior to the primary, Plaintiff succeeded in winning the Republican nomination for re- election.20 Following the primary and prior to the general election, in an attempt to defend his reputation,21 Plaintiff filed the instant suit for defamation.22 The accusations made by Defendant were not retracted,23 and at least a portion of the voting public remembered the flyer as of the time of the general election?4 The registration among the 1200 registered voters in Penn Township was predominantly Republican,25 but Plaintiff lost his seat to a Democrat in the general election. 26 Plaintiff testified, credibly in the court's view, that he experienced "a definite coolness from the residents in the community" which had not existed previously. 27 With respect to the falsity of the defamatory material contained in the flyer, this issue has not been pursued in either Defendant's motion for judgment notwithstanding the verdict28 or his statement of matters complained of on 19 Plaintiffs Exhibit 1. 20 NT. 87. 21 NT. 75. 22 Plaintiffs complaint was filed on June 7, 2001. 23 NT. 76-77 24 NT. 86. 25 NT. 78. 26 NT. 77-78. 27 NT. 76. 28 See Defendant's Motion for Judgment Notwithstanding the Verdict, filed January 9, 2006. 4 appeal. 29 The evidence leading the court to conclude that Defendant's accusations were in fact false will therefore not be reviewed here?O With respect to actual malice on the part of Defendant in creating and publishing the flyer, the court did not find credible Defendant's testimony that he had had "no personal objections or concerns regarding" the Plaintiff,31 that he had had "no personal animus towards the Plaintiff,,,32 and that he had spent "months" researching the accusations in the flyer.33 To the contrary, the evidence tended to show that personal animosity on the part of Defendant and his son, who was himself a township supervisor,34 toward the Plaintiff had become a focus of township meetings.35 The situation was described by the township solicitor as follows: . . . [D]uring that time the Danner family was insistently coming to township meetings, being very difficult, obnoxious, totally improper, totally unprofessional. As township solicitor it got to the point that I was very concerned that the environment had turned into such a zoo. If the Board said it was black, the Danners said it was white; if it was night out, it was day time. It just got ridiculous. 36 * * * * . . . [Defendant's son] was acting out of control like a spoiled young kid, ranting and raving, getting up and walking out of meetings, being totally unprofessional. 37 29 See Defendant's Statement of Matters Complained of on Appeal, filed May 18,2006. 30 The issue as to the burden of proof in a defamation action on the issue of the truth or falsity of allegedly defamatory material is discussed in Dunlap v. Philadelphia Newspapers, Inc., 301 Pa. Super. 475,484-91,448 A.2d 6, 11-14 (1982), inter alia. 31 NT. 125. 32 NT. 111. 33 NT. 10. 34 NT. 46. 35 NT. 50. 36 NT. 50. 37 NT. 58. 5 * * * * . . . I asked [Defendant' s son] to behave as [ a] professional and an elected supervisor, that is what I asked him to do as a fellow township official. He actually got a little bit better after those conversations for some period of time until [Defendant] told him what to do again, and that was to misbehave. 38 * * * * . . . [Defendant] would yell [to his son at] public meetings. Don't you sit there and take that, Jeff, vote against that, Jeff, things like that. Walk out of here, Jeff. 39 Defendant's purported good faith belief in the truthfulness of his accusations was belied, in the court's view, by a demonstrated pattern in connection with the flyer of willful misconstruction, failure to investigate, and distortion. First, with regard to the allegations that Plaintiff had "created" the position of road superintendent and "collected money in violation of state law" for work not done in that capacity, Defendant had no basis whatsoever for the first proposition40 and made no effort to verify the second conjecture.41 Second, with regard to the allegation of a violation "of state law [on the part of Plaintiff] by voting himself compensation while in office and not waiting until next term," the opposite of this proposition was patently true. Plaintiff had declined to accept available "compensation" in the form of health benefits until such time as his health insurance from another source had lapsed, thereby saving the township $24,000.00 in premiums.42 In the court's view, Defendant's misconstruction of Section 606 of the Second Class Township Code 43 to characterize this conduct as violative of state law and, by implication, as a theft of 38 NT. 50. 39 NT. 59. 40 See NT. 18-22. 41 See NT. 20-21. 42 See NT. 66-69. 4353 P.S. ~6506. 6 public funds, was so preposterous as to be indicative of an intentional . 44 mIsstatement. Third, with regard to the accusation that Plaintiff "violated the Pennsylvania Sunshine and Open Records Law when the current township secretary and treasurer were hired," Defendant's lack of foundation for this misstatement was apparent in the confused and evasive nature of his testimony on the subject.45 Fourth, with regard to the supposed "secret[]" and "privately negotiated" lease of township property, a similar lack of foundation for the assertion was evident from the record.46 Defendant conceded that the accusation was published with no concern on his part as to whether Plaintiff s action had been publicly authorized by the board of supervisors or not.47 Fifth, with regard to the accusation by Defendant that Plaintiff had attempted to bribe another supervisor to obtain his vote at township meetings, the allegation was a particularly egregious example of a false statement arising from Defendant's willingness to attribute to Plaintiff in print the supposed misconduct of a third party with no basis for doing so and no investigation of whether the attribution was true.48 Finally, with regard to the assertion by Defendant that he and other auditors had been "denied permission to access the computerized financial and other records of the township," the allegation would appear to be a mischaracterization of the township's failure to provide a record which it did not h 49 ave. In summary, based upon the totality of the circumstances, including the cumulative nature of the misstatements in question, the court was of the view that 44 See NT. 23-27. 45 See, e.g., NT. 28-41. 46 See NT. 41-45. 47 See NT. 41-45; see also NT. 71-73. 48 See NT. 46-47. 49 See NT. 123. 7 Defendant's generation and publication of the defamatory material in question had been shown, by clear and convincing evidence, to have been the product of a willful disregard of the facts. With respect to damages suffered by Plaintiff, Plaintiff conceded that he chose to file the present defamation action notwithstanding his realization that the additional publicity generated by the suit could itself diminish his prospects in the general election. 50 His rationale for the decision to proceed with the litigation was provided in his testimony as follows: This whole action came about only after Mr. Danner decided to put verbal allegations that he had made on paper. In a small community like we live in, people listen to what is said and put the value on it that they feel they want to put on it. But when it comes to something in writing, they give it a lot more weight because they feel, well, somebody wouldn't dare write something like that unless it was true. So basically, it put me between making a choice, the choice was that I want to just let it go and take a chance winning the fall elections and going on as supervisor, or did I want to try to protect my reputation, which was very important to me, and take immediate steps to bring a suit against Mr. Danner for the allegations that he had made. So weighing the job against my reputation, I chose to protect my reputation, and if I lost the job, then I lost the job, b . . 51 ut my reputatIOn was more Important. Some monetary consequences, of course, were occasioned by the loss of Plaintiff s position as a township supervisor. 52 Defendant's counsel, while conceding that Plaintiff s concern that he would lose the general election as a result of filing suit probably became a reality, 53 ascribed this aspect of Plaintiff s harm to Plaintiff s own conduct in initiating the litigation rather than to the flyer that precipitated the suit. 54 50 NT. 75. 51 NT. 75. 52 NT. 75-76. 53 NT. 159. 54 NT. 159. 8 At the conclusion of the trial, the court took the matter under advisement. 55 After reviewing the evidence and the law related to defamation of public figures, it entered the following verdict: AND NOW, this 30th day of December, 2005, upon consideration of Plaintiff s Amended Complaint in the above- captioned matter, and following a nonjury trial held on December 21, 2005, on the issue of libel, the court finds in favor of Plaintiff and against Defendant and awards damages in the amount of $500.00, plus costs of suit.56 Judgment was entered on the verdict on April 27, 2006.57 Defendant's appeal from the judgment was filed on April 28, 2006.58 DISCUSSION Statement of Law Defamation in general. Defamation is a communication that "tends so to harm the reputation of another as to lower him in the estimation of the community or to deter third persons from associating or dealing with him." Cosgrove Studio & Camera Shop, Inc. v. Pane, 408 Pa. 314, 318, 182 A.2d 751, 753 (1962). "A libel is a maliciously written or printed publication which tends to blacken a person's reputation or expose him to public hatred, contempt, or ridicule or injure him in his business or profession." Id at 317, 182 A.2d at 753. The defamatory character of a publication is a question of law. Bogash v. Elkins, 405 Pa. 437, 440, 176 A.2d 677, 678 (1962). Special harm. By statute in Pennsylvania a plaintiff can not recover in a defamation action absent proof of "special harm resulting to the plaintiff from its publication." Act of July 9, 1976, P.L. 586, 92, 42 Pa. C.S. 98343(a)(6). To establish "special harm," a plaintiff must prove that he or she suffered more than 55 NT. 169. 56 Order of Court, December 30,2005. 57 Praecipe for Entry of Judgment, filed April 27, 2006. 58 Defendant's Notice of Appeal, filed April 28, 2006. 9 mere annoyance or embarrassment, but does not need to prove actual "out-of- pocket loss." Agriss v. Roadway Express, Inc., 334 Pa. Super. 295, 316, 483 A.2d 456, 463, 467 (1984) (citations omitted). Reputational harm is, however, sufficient to satisfy this element. Id at 328,483 A.2d at 473-74. Furthermore, it is obvious that a defendant who has defamed another will not be relieved of responsibility for a repetition of the defamation by the victim where such "self-publication" is a reasonable and foreseeable response under the circumstances. See Stine v. Walter, 29 Pa. D. & CAd 193, 198-99 (York Co. 1996); McKinney v. County of Santa Clara, 110 Cal. App. 3d 787, 795-98 (1980). Actual malice. "When... the plaintiff is a public figure, he can not recover [in a libel action] unless he proves by clear and convincing evidence that the defendant published the defamatory statement with actual malice, i. e., with knowledge that it was false or with reckless disregard of whether it was false or not. . .. Mere negligence does not suffice." Masson v. New Yorker Magazine, 501 U.S. 496, 510,111 S. Ct. 2419, 2429,115 L. Ed. 2d 447,468 (1991) (citations omitted). "[T]he plaintiff must demonstrate that the [ defendant] in fact entertained serious doubts as to the truth of his publication. . . or acted with a high degree of awareness of . . . probable falsity." Id (citations omitted). 59 This principle does not mean, however, that a public figure is, as a practical matter, without legal recourse when egregiously defamed. The Pennsylvania Supreme Court has been alert to the seesawing balance between the constitutional rights of freedom of expression and of safeguarding one's reputation: protection of one of those rights quite often leads to diminution of the other. Yet, in the quest to strike a balance between these two competing protections, [the C]ourt [has] cautioned that the freedom of expression should not be seen as dominant and the protection of reputation as inferior. [It has] stressed that the right to protect one's reputation is not a second-class right, 59 A township supervisor in Pennsylvania qualifies as a public figure for this purpose. See generally Bartlett v. Bradford Publishing, Inc., 885 A.2d 562, 566 (Pa. Super. Ct. 2005) (township police officer deemed public figure for purposes of defamation law). 10 amenable to being pressed into oblivion by other constitutional provisions. [The Court has] made it plain that "a person's interest in his or her reputation has been placed in the same category with life, liberty and property. Norton v. Glenn, 580 Pa. 212, 228-29, 860 A.2d 248, 58, (2004). Application of Law to Facts In the present case, the defamatory nature of the written material created and published by Defendant was self-evident, and, as noted, Defendant has not pursued the issue of the truth of the accusations. With respect to special harm, the publication had, in the court's view, the desired effect of so damaging Plaintiffs reputation as to lower him in the estimation of the community. The fact that this injury may have been exacerbated economically by Plaintiff s initiation of suit is not an exculpatory factor, where the suit was a reasonable and foreseeable consequence of Defendant's conduct. With respect to actual malice, the circumstances were such in this case that the court, in its capacity as trier of fact, found that actual malice on the part of Defendant had been proven by clear and convincing evidence. The court did not find credible Defendant's testimony to the effect that he did not entertain serious doubts as to the truth of the accusations which he formulated and published against Plaintiff. BY THE COURT, 1. Wesley Oler, Jr., 1. Galen R. Waltz, Esq. 28 South Pitt Street Carlisle, P A 17013 Attorney for Plaintiff 11 Douglas G. Miller, Esq. West Pomfret Professional Bldg. 60 West Pomfret Street Carlisle, P A 17013 Attorney for Defendant 12