Opinion
In stаtements that appeared in a front-page story in the San Francisco Chronicle and elsewhere, employees of a toxic chemical plant criticized a housing development proposed to be constructed next to the plant. The questions before us are whether the employees’ comments included false statements of fact actionable as trade libel and, if not, whether, consistent with the First Amendment, the statements may nonetheless provide the basis for a cause of action for intentional interference with prospective economic advantage.
Statement of the Case
Appellant, the Hofmann Company, filed a complaint alleging that certain employees of respondent E. I. Du Pont de Nemours and Cо. made false statements about the housing development appellant proposed to build near Du Font’s chemical plant in Contra Costa County. As pertinent to this appeal, the complaint stated causes of action for trade libel and intentional interference with prospective economic advantage. 1 The trial court initially granted respondent’s demurrer without leave to amend because in “the context in which the alleged defamatory expressions were made, . . . they were expressions of opinion, unambiguous as such, and therefore protected speech.”
*395 After appellant’s attorney filed a declaration stating he had obtained evidence showing that at the time respondents madе their statements they did not honestly believe the views they expressed and voiced them for the sole purpose of obstructing the housing development, the court allowed appellant to amend the complaint to include a cause of action for intentional interference with prospective economic advantage. 2 The amendment added the allegation that if the statements at issue were found to be opinions, “defendants did not in fact hold a good faith, honest belief in the truth thereof.” Respondents again demurred. The trial court sustained the demurrer without leave to amend and dismissed the action. This appeal followed.
Statement of Facts 3
Appellant is a Contra Costa County developer which owns and intends to develop property in Antioch adjacent to and downwind of respondent Du Font’s chemical plant. In its manufacturing operations, the plant uses toxic chemicals that are delivered by trains switched off the main line into the plant yard. One edge of the proposed development lies along the rail spur leading to the plant. Appellant’s development plans have been approved by the Contra Costa County Board of Supervisors.
Du Pont offered to purchase the property in question, but appellant demanded too high a price. After the negotiations broke off, Du Font’s plant manager at the time, David Gilbert, published through unidentified “news media” the statement that the proposed housing development “was in a place which was unsafe and hazardous for human life and health, and that he ‘would not live there.’ ”
The other statements at issue appeared in the October 23, 1984, edition of the San Francisco Chronicle. A front-page article, entitled “Developers and Contributions: The Contra Costa ‘Syndrome,’ ” discussed the approval of appellant’s subdivision plans and the general pattern of development approval in Contra Costa County. Emphasizing the political contributions made by housing developers to most county supervisors, the article noted *396 that the only supervisor who voted against appellant’s project received no such contributions.
After discussing the large quantities of toxic chemicals shipped to the plant on the railroad spur that passed by the development project, the article pointed out that the Bay Area Air Quality Management District and the California Air Resources Board both opposed appellant’s plans. According to the article, “[These] agencies wrote the county at least six times, and among other things, noted: Toxic releases from DuPont forced three evacuations since 1964, at least 18 releases were recorded since 1977, and the wind blows to the east—toward the proposed homes—70 percent of the time.”
Dennis McNamara, who succeeded David Gilbert as plant manager, was quoted: “ T wouldn’t live there .... We run around the clock, we have rail traffic and truck traffic all the time and we handle hazardous chemicals. It’s like building homes off the end of a runway. You hope nothing happens, but occasionally it does.’”
The article concluded with a description of the physical effects of a recent leak of toxic sulfur dioxide gas at the plant that required evacuation of a nearby area and the hospitalization of 20 people. Another quote from McNamara ended the article: “We’ve never had what we call a life-threatening incident and we don’t expect any—but the potential does exist.’ ”
When Gilbert and McNamara made the statements just related they allegedly were acting as agents and employees of defendant Du Pont, and within the course and scope of their said agency and employment. The purpose of the statements, according to the complaint, was to prevent completion of the housing development and to thereby depress and diminish the value of plaintiff’s land so as to further defendant’s plan to acquire said land for a price deemed acceptable to defendant Du Pont.
Discussion
Preliminarily, we note that we must “treat the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law. [Citation.] We also consider matters which may be judicially noticed.”
(Serrano
v.
Priest, supra,
*397 I.
Cause of Action for Trade Libel
Trade libel is “ ‘an intentional disparagement of the quality of property, which results in pecuniary damage to plaintiff it is accomplished by a false statement.
(Polygram Records, Inc.
v.
Superior Court
(1985)
If respondents’ statements аbout appellant are opinions, the cause of action for trade libel must of course fail. “Under the First Amendment there is no such thing as a false idea. However pernicious an opinion may seem, we depend for its correction not on the conscience of judges and juries but on the competition of other ideas. But there is no constitutional value in false statements of fact.”
4
(Gertz
v.
Robert Welch, Inc.
(1974)
In most cases “[t]he critical determination of whether the allegedly defamatory statement constitutes fact or opinion is a question of law.”
(Gregory
v.
McDonnell Douglas Corp.
(1976)
“The distinction [between fact and opinion] frequently is a difficult one . . . .”
(Gregory
v.
McDonnell Douglas Corp., supra,
In addition to the language, the context of a statement must be examined.
(Baker, supra,
With those guidelines in mind, portions of respondent McNamara’s comments are not difficult to characterize. The statement: “ ‘We run around the clоck, we have rail and truck traffic all the time and we handle hazardous chemicals,’ ” is unquestionably factual. We also find that either this state
*399
ment is true or that it in no way disparages appellant’s planned housing development. Respondents’ use of hazardous chemicals is alleged in the complaint, and therefore something we must assume to be true.
(Serrano
v.
Priest, supra,
The statement “ ‘We’ve never had what we call a life-threatening incident and we don’t expect any—but the potential does exist,’ ” is mixed fact and opinion. McNamara’s expectation about the probability of a serious accident is an opinion, but taking the sentence as a whole we find it states an indisputable truth: manufacturing processes that use hazardous chemicals have thе “potential” of leading to accidents that cause serious injury or death. (Evid. Code, § 452, subd. (h).)
Appellant argues that the statement “I wouldn’t live there”—might be an opinion but for the fact that both McNamara and Gilbert said the same thing. Appellant thinks the identical statements are “suspicious” and “negate[ ] any argument that [they] constitute spontaneous expression of opinion.” We do not agree. The record is silent as to when and where Gilbert spoke, but we do not find it remarkable both said they would not want to live close to the chemical plant they managed.
The comment “It’s like building homes off the end of a runway. You hope nothing happens, but occasionally it does” cannot be called factual. The fact that the simile is incapable оf objective proof is indicative of opinion.
(Ollman
v.
Evans, supra,
Appellant argues that two factоrs necessitate finding that, though McNamara’s remarks might appear to represent opinion, the average reader would understand them to be factual. First, relying upon the restatement, appellant argues that the statements are based on undisclosed facts and therefore cannot be deemed opinion. Section 566 of the Restatement Second of Torts states that a cause of action for defamation exists when “an opinion in form or context [ ] is apparently based on facts regarding the plaintiff or his conduct that have not been stated or assumed to exist by the parties to *400 the communication.” (Com. b, p. 172; see, e.g., Baker v. Los Angeles Herald Examiner, supra, 42 Cal.3d at pp. 266-267; Okun v. Superior Court, supra, 29 Cal. 3d at pp. 451-452.) This theory has no application in this case because the basis of McNamara’s statements are thoroughly disclоsed. He noted the proximity of the housing, the large volume of hazardous chemicals used at the plant, the heavy rail and truck traffic and the 24-hour operation. Any doubt about the relevance of these facts was dispelled by the balance of the Chronicle article, which discussed, among other things, the numerous past episodes of toxic releases at the plant.
Appellant next argues that because Gilbert and McNamara were Du Pont plant managers, their expertise lends authority to their statements that would cause the average reader to assume they were asserting facts. Appellant relies on
Slaughter
v.
Friedman
(1982)
Slaughter is distinguishable. A dental insurance plan administrator authorizes payment of bills where treatment was necessary and the cost in line with policy coverage, matters about which such administrators presumably possess expertise. The administrator’s stated intention to report the dentist to an official-sounding group reinforced this aura of authority. Respondent McNamara, on the other hand, offered an opinion relating to a land use decision, a subject about which chemical plant managers are not thought particularly knowledgeable.
This not to say McNamara’s apparent knowledge and expertise regarding the management of a chemical plant and the properties of toxic chemicals plays no role in the average reader’s mind or in our analysis. It does. It is a basis of our conclusion that McNamara asserted a fact regarding the potential for serious accidents, but we have found this to be true. The opinion that it was unwise to develop housing so near the Du Pont plant, and that
*401
he would not live there, does not rest on any special scientific knowledge undisclosed to the Chronicle’s readers. Rather, we find it to be an entirely reasonable opinion that many people could reach on the basis of the facts presented in the article. Neither McNamara’s statements nor the article as a whole conveys a “seeming scientific nature . . . [that] would support the рosition that the statements are factual.”
(Bose Corp.
v.
Consumers Union of United States, Inc., supra,
692 F-2d 189, 194; see also
Hotchner
v.
CastilloPuche, supra,
To conclude, we hold that the statements of respondents Gilbert and McNamara are either assertions of true facts or unambiguous opinions.
II.
Cause of Action for Intentional Interference With Prospective Economic Advantage
Having held that respondents’ comments were either true statements of fact or unambiguous statements of opinion, we must now decide whether the First Amendment protects such speech when the speaker uses it to intentionally interfere with the prospective economic advantage of another. 6 The second amended complaint alleged not only that respondents made false statements of fact, but also alternatively claimed that even if the statements in question were deemed opinions, respondents did not honestly hold the views they expressed and voiced them solely to damage appellant’s business interests and diminish the value of its property.
California courts have countenanced lawsuits for intentional interference with prospective economic advantage accomplished “either by unlawful means or by means otherwise lawful when there is a lack of sufficient justification.”
(Herron
v.
State Farm Mutual Ins. Co.
(1961)
Blatty
v.
New York Times, supra,
Blatty, supra,
In our view the recent United States Supreme Court opinion in
Hustler Magazine
v.
Falwell
(1988)
The central issue in
Hustler
was whether the state’s interest in protecting public figures from emotional distress is sufficient to deny First Amendment protections to speech that is intended to inflict emotional injury even when that speech could not reasonably be construed аs stating facts. Falwell’s view, as characterized by the Supreme Court, was that “so long as the utterance was intended to inflict emotional distress, was outrageous, and did in fact inflict serious emotional distress, it is of no constitutional import whether the statement was a fact or an opinion, or whether it was true or false. It is the intent to cause injury that is the gravamen of the tort, and the
*404
State’s interest in preventing emotional harm simply outweighs whatever interest a speaker may have in speech of this type.”
(Id.,
at p. _[
Reiterating that “ ‘[freedoms of expression require “ ‘breathing space”””
(Hustler, supra,
In the present case, as in Hustler, the gravamen of appellant’s cause of action is the intent to cause injury. The fact that, unlike Reverend Falwell, appellant is alleging an economic rather than an emotional injury seems to us analytically irrelevant. However, whether the First Amendment appliеs to a private developer, such as appellant, in the same way it applies to a public figure, such as Falwell, warrants discussion.
Though nominally a private-figure plaintiff, for present purposes appellant possesses the attributes of a public figure. It is undisputed that, as described in the Chronicle article, appellant has actively and openly sought to influence public officials and in that manner affect the public decision process for determining the uses to which land in Contra Costa County may be put. In
Greenbelt Pub. Assn.
v.
Bresler
(1970)
Furthermore, appellant enjoyed “access to the channels of effective communication” regarding the dispute and thus had a “realistic opportunity to counteract false statements”
(Gertz, supra,
Thus, even if application of the First Amendment should turn primarily upon the plaintiff’s status, as held in Gertz, 8 the status of the plaintiff in this case provides no reason to restrict application of the First Amendment.
Moreover, decisions of the United States Supreme Court rendered after
Gertz
establish that the status of the plaintiff is not the only consideration, and that the content of the speech is equally germane to the constitutional question.8
9
(See, e.g.,
Philadelphia Newspapers, Inc.
v.
Hepps, supra,
According to the plurality opinion in
Dun & Bradstreet, supra,
One of the justifications for assiduously protecting speech that relates to governmental affairs is that the public needs information of this sort to
*407
rationally evaluate or “check” the conduct of elected officials. (See Blasi,
The Checking Value in First Amendment Theory
(1977) Am. B. Found. Res. J. 521.) It is irrelevant to the achievement of this constitutional purpose whether plaintiff is a public figure. The defendants nonmedia status is similarly beside the point.
(Miller
v.
Nestande, supra,
192 Cal.App.3d at pp. 198-200.) As the United States Supreme Court has pointed out, “[t]he inherent worth of . . . speech in terms of its capacity for informing the public does not depend upon the identity of its source . . . .”
(First National Bank of Boston
v.
Bellotti, supra,
We do not mean to suggest that all speech relating to governmental affairs is automatically entitled to the highest level of constitutional protection, or to any protection. It is possible to conceive of speech concerning aspects of government that do not genuinely implicate any broad public interest nor materially enhance the self-governing ability of the public. However, as we have pointed out, the speech comprising the intentional tort alleged in this case does not relate to the conduct of low level civil servants regarding a matter of concern to few, but the exercise of power by elected officials on a matter of broad public interest. (See
Greenbelt Pub. Assn.
v.
Bresler, supra,
As applied to speech involving matters of public concern, appellant’s theory, in effect, that “dishonest” opinions are equivalent to false statements of fact would undermine the First Amendment in the area of its most important application, because it would permit a plaintiff to compel a defendant еngaged in public debate to endure trial merely by asserting that his stated opinions were not truly held—something extremely difficult to prove or disprove. If the state of mind of one who advances a critical opinion could so easily be placed at issue, speaking one’s mind on controversial public issues would become a dangerous enterprise, a state of affairs manifestly incompatible with our present concept of free speech. 10
*408
It does not matter whether respondents’ speech was motivated by economic self-interest, because motives are irrelevant when it comes to public debate.
(Hustler Magazine
v.
Falwell, supra,
The trial court properly sustained the demurrers to appellant’s complaints, and appellant has not shown that it could state a cause of action by further amendments. Accordingly, the judgment is affirmed.
Rouse, J., and Smith, J., concurred.
Notes
Additional causes of action for negligent interference with prospective economic advantage, public nuisance and declaratory relief were stated. By failing to present any arguments about thеse causes of action to this court, appellant has waived any objections to the trial court’s sustaining of the demurrer as to them. (9 Witkin, Cal. Procedure (3d ed. 1985) Appeal, § 479, pp. 469-470;
Henderson
v.
Security Nat. Bank
(1977)
The amendment purported to state two causes of action, one for intentional diminution of property value and another for intentional interference with prospective economic advantage. We treat the first as a variant of the second rather than as a separate tort.
Because of the procedural posture of this case, we treat as true the facts alleged in appellant’s complaints; we also consider the facts judicially noticed by the trial court.
(Serrano
v.
Priest
(1971)
The same result can be reached logically, without recourse to the First Amendment. The Restatement Second of Torts classifies trade libel as a variety of injurious falsehood. (§§ 623A, 626, pp. 334-347; see also Polygram Records, Inc. v. Superior Court, supra, 170 Cal.App.3d at pp. 548-550.) Although the restatement’s explication of this tort does not make a distinction between statements of fact and opinion, the examples it uses—e.g., “A does not sell certain goods” and “A is no longer in business”—make it clear that trade libel is ordinarily accomplished by factual assertions which, unlike opinions, can be objectively verified. (Rest.2d Torts at p. 335.)
The
Good Government
approach has received considerable judicial criticism in other jurisdictions. An Eighth Circuit opinion notes that “for good reason,” nearly all jurisdictions vest the trial court with the decision about whether a statement is one of fact or opinion.
(Janklow
v.
Newsweek, Inc.
(8th Cir. 1986)
Paragraph 18 of the complaint stated: “in the event said statements should be considered to be cast in the form of opinion . . . [respondents] did not in fact hold a good faith, honest belief in the truth thereof. Further, [respondents] either deliberately cast their statements in an equivocal form in the hope of insinuating a disparaging import to the average reader, or they acted with a reckless disregard of whether their words would be interpreted by the average reader as disparging stаtements of fact.”
Herron
v.
State Farm Mutual Ins. Co., supra,
This aspect of Gertz has been strongly criticized by some constitutional scholars. See, e.g., Franklin, Constitutional Libel Law: The Role of Content (1987) 34 U.C.L.A. L.Rev. 1657.
A business tort, such as intentional interference with an economic relationship, though similar to a cause of action for defamation or invasion of privacy in that it may be accomplished through speech that offends the community sense of decency and fair play, is far more likely to be advanced by private than public figure plaintiffs. Therefore, whether any such tort cause of action is barred by the First Amendment is more likely to turn on the content of the speech than the status of the plaintiff.
Cases indicating that speech may be unprotected if the plaintiff can prove it consists of insincere opinions were for the most part decided before the common law fair-comment privilege was preempted by the constitutional developments that culminated in
Gertz, supra,
It is true that the
Hustler
court went on to quote an earlier Supreme Court opinion which referred to “ ‘utterances honestly believed’ ” which “ ‘contribute to the free interchange of ideas and the ascertainment of truth’ ” even when spoken “ ‘out of hatred. . . .’ ”
(Hustler, supra,
485 U.S. at pp. 52-53 [
The quoted statement from
Rinaldi
that even insincere opinions are protected is followed by the proviso that “the facts supporting the opinions are set forth.” (
