Nuwave Investment Corp. v. Hyman Beck & Co. (073551)
114 A.3d 738
| N.J. | 2015Background
- NuWave sues BackTrack (First Advantage Litigation Consulting) for defamation based on investigative reports including statements attributed to Hyman Beck and employees.
- Hyman Beck defendants are dismissed on statute-of-limitations grounds; only BackTrack’s defamation claim goes to trial.
- Jury awards BackTrack presumed damages to NuWave and Buckner/Ryan, plus NuWave’s $1.406 million actual damages and $250,000 punitive damages.
- Appellate Division reverses damages, remanding for new trial on damages with correct damages instructions; challenges to the statute of limitations affirmed.
- Supreme Court certiorari grants; per curiam affirmance with instruction to conduct a new damages trial under proper law.
- Court clarifies the roles of presumed, actual (special and general), and nominal damages in defamation and rejects a discovery-rule expansion of the statute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can presumed damages be awarded when actual damages exist? | NuWave argues presumed damages may be awarded to compensate reputational harm. | BackTrack argues presumed damages are not proper when actual damages are proven. | Presumed damages are limited; not proper to compensate when actual damages exist. |
| What are the proper categories of defamation damages? | NuWave seeks recovery under multiple categories including presumed and actual damages. | BackTrack contends damages must fit into actual, punitive, or nominal categories without duplicative presumed damages. | Three categories exist: actual (special and general), punitive, nominal; no duplicative presumed awards. |
| Was the jury instructed correctly on presumed damages in light of W.J.A. v. D.A.? | NuWave contends instructions allowed presumed damages improperly. | BackTrack maintains the trial court’s instructions were adequate. | Instruction improperly allowed presumptive damages; require remand for proper damages instructions. |
| Should there be a new trial on damages due to the erroneous instruction? | NuWave requests a full remand to re-evaluate damages. | BackTrack supports a new damages trial if necessary to correct error. | Vacate the entire damages award and remand for a new damages trial with proper instructions. |
| Whether to adopt a discovery-rule for the libel statute of limitations? | Equity favors a discovery rule for late-discovered confidential publications. | Statute provides a one-year limit without discovery rule; legislative change needed. | Reject discovery rule; statute requires libel claims within one year of publication. |
Key Cases Cited
- W.J.A. v. D.A., 210 N.J. 229 (N.J. 2012) (presumed damages limited; three categories of damages; nominal vs. actual)
- Gertz v. Robert Welch, Inc., 418 U.S. 323 (U.S. 1974) (actual damages include reputational harm; general vs. special damages)
- NuWave Inv. Corp. v. Hyman Beck & Co., 432 N.J. Super. 539, 432 N.J. Super. 539 (App. Div. 2013) (Appellate Division on damages remand and limitations)