Tannerite Sports, LLC v. NBCUniversal News Group
864 F.3d 236
| 2d Cir. | 2017Background
- Tannerite sued NBC for defamation after NBC’s Today Show segment and online article described Tannerite exploding rifle targets as dangerous and compared them to bombs, and discussed links to ammonium nitrate and terrorism.
- NBC’s reports showed the product’s two components being mixed and repeatedly stated the product explodes when shot; they also quoted an expert saying the product, once mixed, is classified as an explosive and noted regulatory concerns.
- Tannerite alleged the broadcasts falsely portrayed the product as a "bomb" as sold (i.e., dangerous on store shelves), falsely suggested ties to terrorists, and made other disparaging assertions.
- The district court granted NBC’s motion to dismiss for failure to plead falsity, held the broadcasts were at least "substantially true," and denied leave to amend as futile. Tannerite appealed.
- The Second Circuit considered whether federal pleading standards require pleading falsity for a New York defamation claim and whether Tannerite had plausibly alleged falsity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether falsity (lack of substantial truth) must be pleaded in federal court for a NY defamation claim | Tannerite: substantial truth is an affirmative defense and premature to resolve at motion to dismiss | NBC: falsity is an element of NY defamation and must be pled with facts showing falsity; federal pleading rules apply | Court: Falsity is an element under NY law and, under Twombly/Iqbal, plaintiff must plead facts plausibly showing falsity |
| Whether NBC’s description of Tannerite targets as "bombs" was false | Tannerite: targets are not bombs; "bomb" implies designed to explode in ordinary conditions | NBC: targets are designed to explode when used and the publications conveyed that purpose | Court: "bomb" description was substantially true because targets are designed to explode when used as intended |
| Whether NBC said Tannerite were "bombs on a shelf" (i.e., explode as sold) | Tannerite: binary packaging keeps ingredients separate, so product is inert on shelf; NBC implied danger in stores | NBC: publications expressly stated ingredients must be mixed and that the product explodes when shot; no suggestion of in-store detonation | Court: No reasonable reader could have understood NBC to mean the product explodes on store shelves; not false |
| Whether district court abused discretion by denying leave to amend | Tannerite: could cure defects by alleging additional theories (terror ties, flammability, product disparagement, implication claims) | NBC: Tannerite offered no specific proposed amendments below; leave request was vague and futile | Court: Denial proper — motion to amend was conclusory below and proposed new theories were raised for first time on appeal, so denial affirmed |
Key Cases Cited
- Masson v. New Yorker Magazine, Inc., 501 U.S. 496 (statement of substantial truth governs falsity)
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (federal complaint must plead plausible claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (plausibility standard for pleadings)
- Hepps v. Philadelphia Newspapers, Inc., 475 U.S. 767 (plaintiff must show falsity for speech on matters of public concern)
- New York Times Co. v. Sullivan, 376 U.S. 254 (First Amendment standards for defamation)
- Silsdorf v. Levine, 59 N.Y.2d 8 (entire publication and context determine meaning and falsity)
- Biro v. Condé Nast, 807 F.3d 541 (federal pleading standards govern state-law claims in diversity)
- Tannerite Sports, LLC v. NBCUniversal Media LLC, 135 F. Supp. 3d 219 (S.D.N.Y. decision granting dismissal below)