Sweet, D.J.
Prior Proceedings
On July 25, 2017, Plaintiff filed his Complaint, which was amended on August 7, 2017. See Dkt. Nos. 1, 8. Plaintiff's FAC alleges seven causes of action: breach of contract, fraudulent misrepresentation, civil conspiracy to defraud, intentional interference with contractual relationships, defamation per se, libel per se, and slander per se. See FAC ¶¶ 117-60.
On October 6, 2017, Defendants filed the instant motion to dismiss. Dkt. No. 22. The motion was heard and marked fully submitted on November 29, 2017.
Facts
The Complaint sets forth the following facts, which are assumed true for the purpose of this motion to dismiss. See Koch v. Christie's Int'l PLC,
Prior to his termination, Cortes was a vice president of Fox News Latino, a division of Fox News Network, LLC ("Fox News"), which in turn was a subsidiary of Defendants. See FAC Ex. A (attaching Emily Steel, Fox Is Said to Settle With Former Contributor Over Sexual Assault Claims, THE N.Y. TIMES, Mar. 8, 2017, https://www.nytimes.com/2017/03/08/business/fox-news-roger-ailes-sexual-assault-settlement.html). While Cortes was at Fox News, Tamara Holder ("Holder") was a Fox News contributor.
In July 2016, as part of The New York Times' reporting of sexual harassment allegations against then-Fox News Chairmen Roger Ailes, Times reporter Emily Steel ("Steel") reached out to Holder to inquire whether Holder had ever been harassed by Ailes. FAC ¶¶ 42, 83. Holder described her interactions with Steel at that time in relation to her own alleged sexual harassment as follows:
I had been suppressing this. I had been boiling up. Emily Steel sent me a direct message on Twitter. She wanted to know if there were other stories about Roger. I answered her that I have nothing to say about Roger, but I know somebody who was sexually assaulted by a Fox News executive. Describing what happened to me in Cortes' office felt like letting the cat out of the bag. I said, holy shit, I'm going to be quoted in the New York Times. That was in July 2016 and it led to the worst six months of my life.
FAC ¶ 83 (quoting Felsenthal, supra ). Steel did not publish any about Holder at this time, and Holder continued to keep her allegations secret from Fox News. See Felsenthal, supra (noting that the Times first published an article about Holder in early 2017); FAC ¶ 53 (quoting Yashir Ali, Top Talen Agency Discouraged Fox News Contributor From Reporting Alleged Sexual Assault, HUFFINGTON POST, May 2, 2017, https://www.huffingtonpost.com/entry/tamara-holder-icm-fox-news_us_590792c4e4b02655f83f4a8c) (describing how Holder held back from informing Fox News of her allegations in early September 2016 during employment contract negotiations).
In late September 2016, Holder informed Fox News for the first time of her sexual assault allegations and, on October 21, 2016, provided additional details of the encounter, including Cortes' identity. See Steel, supra; Felsenthal, supra. On October 21, 2016, Cortes was terminated. See FAC ¶¶ 1, 25, 47; Steel, supra; Felsenthal, supra.
On November 11, 2016, as part of Cortes' termination, Cortes and Fox News signed a severance and general release agreement (the "Severance Agreement") that contained, of relevance to the instant litigation, the following provision:
Non-disparagement: Cortes and Fox each agree not to disparage, trade libel, or otherwise defame the other, and in the case of Fox, Cortes agrees not to disparage, trade libel, or otherwise defame Fox, and/or any of its officers and/or any of its current and/or former employees.
Amended Declaration of Linda C. Goldstein dated November 29, 2017 ("Goldstein Decl."), Ex. 1; see FAC ¶ 113 (describing "contractual obligations" between Cortes and Fox News in December 2016).
Around the same time as Cortes' termination, Holder drafted and presented to Defendants a complaint that contained claims against Fox News and Cortes. FAC ¶¶ 19, 113. Attorneys from Paul, Weiss, who represented Defendants, met with Plaintiff to see if he would testify against Holder in a mediation between Fox News and Holder; Plaintiff refused to do because he believed it would violate the non-disparagement provision of the Severance Agreement. See FAC ¶ 113.
Holder's claims were resolved in February 2017 when Holder, 21CFA, and Cortes signed a settlement agreement (the "Holder Settlement Agreement"), to which Cortes, with advice of counsel, signed assent "as to Paragraph 6c and 12." FAC ¶¶ 20-22, Ex. B. Portions of the Holder Settlement Agreement to which Cortes did not assent upon signing, which included
Paragraph 6c of the Holder Settlement Agreement provided that:
Cortes, on behalf of himself and the Cortes Released Parties, hereby knowingly and voluntarily releases and discharges the Holder Released Parties from any and all Claims whatsoever in law, admiralty or equity, whether now known or unknown, suspected or unsuspected, vested or contingent, accrued or yet to accrue, against the Holder Released Parties which Cortes had, has, or hereafter can, shall or may have up until Effective Date.
FAC Ex. B, at 5. Paragraph 12 of the Holder Settlement Agreement provided that:
Non-Disparagement. Holder agrees not to disparage, malign, or defame any Released Party, or to publish or cause to be published any statements portraying any Released Party in an unfavorable light. The Company [21CFA], [redacted], and Cortes agree not to disparage, malign or defame Holder, or to publish or cause to be published any statements portraying Holder in an unfavorable light. A statement by a Party that violates this provision subjects that Party to liquidated damages under Paragraph 11(n) of this Agreement.
FAC Ex. B, at 9; see also FAC ¶¶ 64, 77.
On March 8, 2017, The New York Times published an article by Steel that described the alleged sexual assault of Holder by Cortes (the "NYT Article"). FAC ¶¶ 41, 61, 62, 96, Ex. A. See generally Steel, supra. Included in the NYT Article was a joint statement by Fox News and Holder released contemporaneously with the article, reflected in the article as follows:
Fox News released a joint statement with Ms. Holder saying that in September 2016 she "reported an incident of sexual assault at Fox News headquarters from the prior year."
"Immediately after Ms. Holder notified Fox News of the alleged incident, the company promptly investigated the matter and took decisive action, for which Ms. Holder thanks the network," the statement continued. "Fox News is grateful to Ms. Holder for her many contributions during her tenure at the network and wishes her continued success."
FAC Ex. A, at 4-5 (the "Joint Statement"). Holder provided assistance to Steel in Steel's preparation of the NYT Article, which was based on the corroboration of others of Holder's account. FAC ¶¶ 93, 100; see FAC Ex. A.
Applicable Standards
On a Rule 12(b)(6) motion to dismiss, all factual allegations in the complaint are accepted as true and all inferences are drawn in favor of the pleader. Mills v. Polar Molecular Corp.,
Defendants' Motion to Dismiss Is Granted
Scattered around and built upon the facts described above, Plaintiff's FAC alleges a conspiracy theory involving Defendants, The New York Times, Paul, Weiss, and others worthy of its own Martin Scorsese thriller. According to Plaintiff, the Holder Settlement Agreement was a payment by Fox News to Holder to breach the non-disparagement clause and share her allegations with Steel, a "sycophant" journalist formerly employed with the Wall Street Journal-a publication owned by News Corporation ("News Corp."), an entity affiliated with Defendants-who, as a coconspirator, was to publish those statements in The New York Times. See FAC ¶¶ 14, 39, 80-82, 115. The overarching purpose of the conspiracy was to use Plaintiff, specifically chosen because he is Latino, as a "scapegoat" by Defendants to demonstrate that Defendants handled sexual harassment complaints aggressively. See FAC ¶¶ 10, 13, 15, 38-43, 83. Scapegoating Plaintiff would allow News Corp. to acquire complete ownership of the British Sky Broadcasting ("BSB"), protect the identity and shelter of two non-Latino signatories to the agreements, and increase coconspirators' public images or finances. See FAC ¶¶ 7, 10, 14-16, 36, 39, 49-55, 72, 81-82, 100-02.
Plaintiff's alleged facts can plausibly support neither his claims nor his theory of the case. Under both law and sechel, Defendants' motion is granted.
1. Breach of Contract (First Cause)
Plaintiff's first cause of action is for breach of contract. Plaintiff alleges that Defendants breached their contractual obligations with Plaintiff by disparaging Plaintiff through the Joint Statement in the NYT Article.
"The elements of a breach of contract claim in New York are: (1) the existence of a contract, (2) performance by the party seeking recovery, (3) non-performance by the other party, and (4) damages attributable to the breach." RCN Telecom Servs., Inc. v. 202 Ctr. St. Realty LLC.,
When, as in the Holder Settlement Agreement, the definition of "disparagement" is not provided, courts have looked to authorities like Black's Law Dictionary as a source of definition. There, "disparage" is defined as "[t]o unjustly discredit or detract from the reputation of (another's property, product, or business)" and "disparagement" is defined as "[a] false and injurious statement that discredits or detracts from the reputation of another's property, product, or business." Kamfar v. New World Rest. Grp., Inc.,
The basis for Defendants' alleged breach is the Joint Statement in the NYT Article, and that statement cannot plausibly have violated the Holder Settlement Agreement's non-disparagement clause because it cannot plausibly be read to disparage Plaintiff. The Joint Statement indicated that: (i) Holder reported an incident of sexual assault; (ii) Fox News promptly investigated the matter and took action; and (iii) Fox News was grateful to Holder for her contributions at the network. See FAC Ex. A, at 4-5. The statement does not mention Plaintiff by name-a fact Plaintiff concedes in his opposition
Accordingly, Plaintiff's breach of contract claim is dismissed.
2. Fraudulent Misrepresentation (Second Cause)
Plaintiff's second cause of action is for fraudulent misrepresentation. The core of Plaintiff's pleaded allegation is that Defendants "intentionally misrepresent[ed] material facts" to Plaintiff. FAC ¶ 123. While it is difficult to identify which statements Plaintiff alleges fraudulently induced him to sign the Holder Settlement Agreement, reading the FAC most favorably, there appear to be two specific material misrepresentations alleged to have been made: that Fox News' attorneys, Paul, Weiss, told Plaintiff that the Holder Settlement Agreement was presented to Plaintiff redacted "solely to protect and shelter" other signatories to the document, FAC ¶ 7, and that the Holder Settlement Agreement's Paragraph 10 referred only to requests by government authorities for information and that Plaintiff was a released party under the terms of the agreement, see FAC ¶¶ 21-22.
Under New York law, "[t]o state a cause of action for fraud, a plaintiff must allege a representation of material fact, the falsity of the representation, knowledge by the party making the representation that it was false when made, justifiable reliance by the plaintiff and resulting injury." Lerner v. Fleet Bank, N.A.,
Plaintiff's fraudulent misrepresentation claim fails to meet the necessary pleading requirements. As a preliminary matter, the two specifically alleged statements in the FAC have since been conceded by Plaintiff as not false. In his opposition briefing, Plaintiff conceded that each alleged statement by Defendants and Paul, Weiss, that under the Holder Settlement Agreement Plaintiff was a released party and that the agreement's Paragraph 10 applied only to government requests for information "was not a lie." Pl.'s Opp. at 16. Similarly, Plaintiff's allegation that Defendants represented to Plaintiff that names on the Holder Settlement Agreement were redacted to protect those individual's identities was also conceded as truthful. See Pl.'s Opp. at 15 (stating that "the redactions were really intended to ensure that ... [Plaintiff] would ... not be able to leak the names of the [redacted persons]").
The remaining, more oblique or vague allegations about Defendants' statements surrounding the Holder Settlement Agreement littered throughout the FAC also fail for other reasons. Some allegations are the kind of "sweeping references" that "will not satisfy the particularity requirements of Rule 9(b)." B & M Linen, Corp. v. Kannegiesser, USA, Corp.,
Lastly, nowhere in the FAC does Plaintiff plausibly allege that he relied to his detriment on the alleged misrepresentations. At most, Plaintiff alleges that by signing the Holder Settlement Agreement, it "forc[ed] him to remain silent against the allegations" against him with regard to his interactions with Holder, a right Plaintiff already signed away under the terms of the previously signed Severance Agreement, since Holder was clearly a Fox News employee as a Fox News "contributor."
Together, none of this suffices to plead fraudulent misrepresentation. Accordingly, Plaintiff's fraudulent misrepresentation claim is dismissed.
Plaintiff's third cause of action is for conspiracy to defraud. The conspiratorial allegations based on the "corrupt agreement" between Fox News, Holder, and others to make Plaintiff a "scapegoat" are already laid out above. Pl.'s Opp. at 25; see FAC ¶¶ 129-32; supra at 636.
"It is well settled under New York law that there is no substantive tort of conspiracy." Antonios A. Alevizopoulos & Assocs., Inc. v. Comcast Int'l Holdings, Inc.,
Accordingly, Plaintiff's civil conspiracy to defraud claim is dismissed.
4. Intentional Interference with Contractual Relations (Fourth Cause)
Plaintiff's fourth cause of action is for intentional interference with contractual relations. Plaintiff alleges that the Holder Settlement Agreement was a "valid contract" between Plaintiff and Defendants, to which Defendants "intentionally and improperly interfered." FAC ¶¶ 133-37.
"The tort of intentional interference with contractual relations is comprised of four elements: (1) the existence of a contract, enforceable by the plaintiff, (2) the defendant's knowledge of the existence of that contract, (3) the intentional procurement by the defendant of the breach of the contract, and (4) resultant damages to the plaintiff." eCommission Sols., LLC v. CTS Holdings, Inc., No. 15 Civ. 2671 (KBF),
Defendants were a party to the Holder Settlement Agreement, a fact pleaded by Plaintiff and not disputed in his opposition papers. See FAC ¶ 134; Pl.'s Opp. at 28-29. "Defendants cannot, as a matter of law, have tortiously interfered with their own contract." Campeggi v. Arche Inc., No. 15 Civ. 1097 (PGG),
Accordingly, Plaintiff's intentional interference with contractual relations claim is dismissed.
5. Defamation Per Se, Libel Per Se, and Slander Per Se (Fifth, Sixth, and Seventh Causes)
Plaintiff lastly alleges, over three separate causes of action, defamation per se, libel per se, and slander per se. See FAC ¶¶ 138-51. While Plaintiff does not identify specific statements of defamation, he alleges that "[e]ach and every statement attributable to the Defendants herein was intentionally false and made with malicious intent for the purpose of destroying Mr. Cortes' professional and career prospects and for the Defendants' own commercial gain." FAC ¶ 141. As these three claims have overlapping law, they will be considered in tandem.
A claim for "defamation" is an umbrella term that incorporates the "twin torts of libel and slander." Albert v. Loksen,
Each of Plaintiff's claims must be dismissed. To start, the only public statement made by Defendants alleged in the FAC is the Joint Statement with Holder as incorporated in the NYT Article. As the alleged defamatory statement was written, not spoken, Plaintiff's claim for slander per se must be dismissed. See Bobal v. Rensselaer Polytechnic Inst.,
As to the remaining libel per se claim, it must be dismissed for two reasons. First, the Joint Statement is not alleged to be false. "[T]ruth is an absolute, unqualified defense to a civil defamation action and 'substantial truth' suffices to defeat a charge of libel." Giuffre v. Maxwell, No. 15 Civ. 7433 (RWS),
Second, Plaintiff has not plausibly alleged that the Joint Statement put out by Defendants was a defamatory statement "concerning" him. "A plaintiff 'must be clearly identifiable' from the statement in order for the statement to be defamatory." Small Bus. Bodyguard Inc.,
Accordingly, Plaintiff's claims for defamation per se, slander per se, and libel per se are dismissed.
Conclusion
For the foregoing reasons, Defendants' motion to dismiss Plaintiff's FAC is granted. See Baron v. Complete Mgmt., Inc.,
It is so ordered.
Notes
Defendants state that there is no entity by the name of Twenty-First Century Fox America, Inc. See Defs.' Mem. at 1 n.1, Dkt. No. 24.
Yiddish for "common sense." Based on the briefing for the instant motion, this word is assuredly familiar to all parties. See Pl.'s Opp. at 7 n.7, 23, Dkt. No. 33; Defs.' Reply at 2, Dkt. No. 36.
Although not clearly laid out in the FAC's First Cause of Action, this is the most favorable construction of the claim, as the only agreement in the FAC signed between Plaintiff and Defendants is the Holder Settlement Agreement, see FAC Ex. B, and the only described statement made by Defendants after the Holder Settlement Agreement was the joint statement made in the NYT Article, see FAC ¶¶ 41, 62.
New York law applies to this diversity action. "In diversity jurisdiction cases such as this, it is well settled that a federal court must look to the choice of law rules of the forum state." Curley v. AMR Corp.,
In his opposition papers, Plaintiff argues additional alleged fraudulent misrepresentations: that Defendant's attorneys represented to Plaintiff that they reached out in January 2017 only to investigate Holder's allegations, Pl.'s Opp. at 13, and that "every single substantive communication by" Paul, Weiss was fraudulent, Pl.'s Opp. at 16. The former is not alleged in the FAC to be false or relied upon and the latter is not made with the appropriate particularity described below. Neither need be addressed further.
Harm that is alleged in the FAC, such as Plaintiff's allegations that he lost television opportunities based on the publication of the NYT Article, are not plausibly connected to Plaintiff's signing of the Holder Settlement Agreement. See FAC ¶ 37.
