561 F. App'x 64
2d Cir.2014Background
- Appellants Berkowitz and JMB Group appealed a district court default judgment that granted them nothing in damages or permanent injunctive relief.
- Under New York law, per se defamation presumes damages when statements charge a crime or injure a plaintiff’s profession, allowing damages without proof of pecuniary loss.
- District court dismissed damages as speculative, but the decree recognizes presumed damages may exist and allows substantial inquest into actual damages.
- The court remanded to conduct an inquest on damages and to consider punitive damages if appropriate.
- The district court denied injunctive relief as over-broad; the injunction was to bar defamatory and other negative statements, which the court found vague and overly broad.
- Partial remand preserved the possibility of addressing a $300 discovery sanction argument on remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Damages in per se defamation cases | Berkowitz: damages presumed under Liberman v. Gelstein | JMB Group: damages require limitation or proof | Remand for inquest on damages; presume damages available |
| Punitive damages consideration | Punitive damages should be available in defamation | District court should decide if punitive damages fit | Remand to determine appropriateness of punitive damages |
| Injunctive relief scope | Request to enjoin defamatory and related statements | Injunction as a speech restraint is improper or overbroad | Affirmed denial; remand may craft a narrow injunction if warranted |
Key Cases Cited
- Liberman v. Gelstein, 80 N.Y.2d 429 (N.Y. 1992) (per se defamation damages presumed when statements charge crime or injure profession)
- Transatlantic Marine Claims Agency, Inc. v. Ace Shipping Corp., 109 F.3d 105 (2d Cir. 1997) (court may hold inquest on damages after default)
- Metro. Opera Ass’n, Inc. v. Local 100, Hotel Employees & Rest. Employees Int’l Union, 239 F.3d 172 (2d Cir. 2001) (courts wary of enjoining speech but may in extraordinary cases curb unprotected speech)
- Prozeralik v. Capital Cities Commc’ns, Inc., 82 N.Y.2d 466 (N.Y. 1993) (standard for punitive damages in defamation)