MEMORANDUM OPINION
In this diversity defamation action, a pro se plaintiff sues his former law firm with which he disputed a fee, alleging that the
(i) whether plaintiffs defamation claims are barred by Virginia’s one-year statute of limitations where, as here, the defendant’s written statements were sent to the arbitration tribunal more than one year before this action was filed, but then were subsequently repeated orally during the arbitration hearing, which occurred less than a year before the filing date.
(ii) whether plaintiffs defamation claim is barred by an absolute privilege where, as here, the written and oral statements alleged as defamatory were made in furtherance, and in the course, of a fee arbitration proceeding.
I. 1
Plaintiff Warren Katz, a Florida resident, is the president of Wrenn Associates, Ltd., a Virginia corporation formerly engaged in the business of residential development in Virginia. Defendant, Odin, Feldman & Pittleman (OF & P), is a law firm organized as a professional corporation under the laws of Virginia. Bill Richardson, Timothy J. McEvoy, Kevin T. Oli-veira, and Edward W. Cameron are OF & P partners who played roles in the events at issue.
According to the complaint, plaintiff retained Alexander Laufer of Eisenhower, Tarby, and Laufer, P.C. in May 1998 to represent Wrenn in a commercial claim against Lake Manassas L.L.C., a Virginia development and management company. During the course of the representation, Katz took issue with Laufer’s assessment of the value of Wrenn’s claim against Lake Manassas, and thus Laufer recommended a second opinion on this matter. Thereafter, on or about August 28, 2000, Laufer retained Richardson and McEvoy of OF & P to render this opinion. When Laufer forwarded the bill from OF & P to plaintiff, however, a dispute ensued. Plaintiff, claiming he never authorized the second opinion, refused to pay OF & P’s bill for services. Shortly thereafter, on May 25, 2001 Laufer sought, and obtained, leave to withdraw from the case as Wrenn’s counsel.
In June 2001, plaintiff contacted McE-voy at OF & P to request that OF & P undertake to represent Wrenn in the case against Lake Manassas. OF & P agreed to do so, but only for a limited purpose. Specifically, by letter dated July 3, 2001, OF & P limited the scope of the representation to an evaluation of a possible copyright claim against Lake Manassas based on the latter’s use of architectural plans allegedly copied from plaintiff and Wrenn’s plans for townhouses on property adjacent to the Lake Manassas development. In its letter, OF & P noted that it would decline to continue the representation should the investigation disclose that the copyright claim lacked merit. It appears that plaintiff paid OF & P a $2,500 retainer for this representation.
By letter dated September 25, 2001, OF & P notified plaintiff that it was declining to continue the representation because plaintiff had failed to provide original copies of drawings, that OF & P considered necessary to an evaluation of the copyright claim. Plaintiff protested, claiming that he had indeed delivered the requested drawings. When plaintiff sought return of the
By letter dated June 28, 2002, 3 OF & P formally agreed to arbitrate the matter and submitted a position statement to James A. Watson, III, Esq., then Chairman of the Fee Arbitration Committee for the 19th Circuit Committee on the Resolution of Fee Disputes. In its statement, OF & P outlined its argument that plaintiff was not entitled to reclaim the retainer fee paid to OF & P to investigate Wrenn’s copyright claim. In support of its claim, OF & P recounted the history of its professional relationship with plaintiff, including, as relevant background, details of plaintiffs previous attorney-client relationship with Alexander Laufer and the legal opinion OF & P provided during the course of that representation. In this case, plaintiff alleges that statements included in the letter defamed his reputation before members of the arbitration panel, and, more broadly, had a potentially adverse effect on his reputation in the legal community by falsely portraying him as a litigious client. Specifically, plaintiff objects to the following three statements in the June, 28 2002 letter:
(i)“Both Mr. Katz and Mr. Laufer agreed it would be useful to obtain a second opinion about Mr. Katz’ case from another attorney;”
(ii) “Now, as with Mr. Laufer before, Mr. Katz disagrees with his attorney’s judgment. As a result, he wants his money back;” and
(iii) “[Notwithstanding that he has never paid Mr. Laufer for the opinion letter, it has come to the attention of OF & P that Mr. Katz continues to use it and has given it to his current attorney (Ben DiMuro) for his use in connection with the lawsuit.”
Plaintiff alleges that the first statement is defamatory because it falsely recites the facts of plaintiffs relationship with Laufer by suggesting that he had agreed to obtain a second opinion from OF & P when he had clearly stated his objection to this course of action. The second is defamatory in plaintiffs view because he believes it portrays him as a litigious and undesirable client by alleging a pattern of disputed advice and refusals to pay money owed. The significance of the third statement is unclear from the complaint. Presumably, however, plaintiff claims this statement is defamatory because it intimates that he appropriated an opinion letter for which he refused to pay and then gave it to yet another attorney to use on plaintiffs behalf.
The fee arbitration hearing was held on June 30, 2003, more than a year after the date OF & P’s letter was sent to the panel,
A year later, plaintiff filed this diversity action on June 28, 2004, asserting a claim for defamation under Virginia law and demanding compensatory and punitive damages due to loss of reputation and standing in the community, embarrassment, humiliation and mental suffering. On July 19, 2004, defendant filed a motion to dismiss the case, arguing that (i) a majority of the claims are barred by Virginia’s one-year statute of limitations on actions for defamation, (ii) any alleged defamatory statements not time-barred are protected by absolute or qualified privilege, and (iii) the alleged statements are not actionable under Virginia law. The parties fully briefed the issues raised in defendant’s dismissal motion and the matter was properly noticed for hearing on August 13, 2004. Plaintiff did not appear on that date, apparently owing to poor health, and hence no oral argument was heard. Instead, because the issues and governing authorities are adequately set forth in the parties’ pleadings and briefs, oral argument is unnecessary and the matter is appropriately resolved on the papers.
II.
A. Statute of Limitations
The first question presented is whether Virginia’s one-year statute of limitations
4
operates to bar all or any of the alleged defamatory statements, which temporally fall into two categories: (1) those contained in OF & P’s June 28, 2002 letter to the arbitration board and (2) those uttered by OF & P lawyers in the course of the June 30, 2003 arbitration proceeding. Because plaintiff filed this action on June 28, 2004, it is clear that any defamatory statements made more than one year prior to this date are barred by the one-year statute of limitations. This is so because in Virginia, a tortious cause of action arises on the date the injury is sustained, or, in the case of a defamation cause of action, on the date of publication.
See
Va.Code. § 8.01-230;
Shands,
Plaintiff raises several arguments in an effort to avoid the conclusion that the statute of limitations period bars any defamation claims based on the June 28, 2002 letter. Yet, closely examined, none of these arguments succeeds.
First, plaintiff argues that, without respect to the date the letter was sent, the statute of limitations did not begin to run until the arbitration panel read the letter on the date of the hearing, June 30, 2003. Relying presumably on an inference that the arbitrators never reviewed the file pri- or to the hearing, plaintiff argues that the letter’s effective publication date was not until the June 30, 2003 hearing, which would fall barely within the one-year statute of limitations.
To be sure, publication of a defamatory statement requires that it be communicated to a third party “so as to be heard and understood by such person.”
Thalhimer Bros. v. Shaw,
Plaintiff does not allege in the complaint the exact date a representative of the arbitration panel first received and opened the June 28, 2002 letter, but the date of receipt may be deduced from the date the letter was mailed. Courts have sensibly recognized in other contexts that “[t]he law presumes delivery of a properly addressed piece of mail.”
McPartlin v. Commissioner,
Neither party disputes that the June 28, 2002 letter was mailed long before June 28, 2003, the pivotal date one year before plaintiff filed his claim. Moreover, the letter itself reflects that it was faxed and mailed on June 28, 2002 to the Chairperson of the Arbitration Committee. 8 And significantly, plaintiff in his complaint never alleges that the letter was not sent on or about June 28, 2002, nor does he dispute that it was received and opened a few days later. 9 Plaintiff does allege, however, that he did not receive his own copy of the letter until November 2002. Yet, even assuming the letter was not mailed to the arbitration panel until November 2002, it is still reasonably presumed that the arbitration panel received the letter approximately three days after it was mailed, still some seven months prior to the arbitration proceeding and long before June 28, 2003.
Plaintiffs second attempt to escape the statute of limitations also fails. He argues that OF & P’s oral repetition at the hearing of written statements included in the June 28, 2002 letter constituted an ongoing tort, resulting in suspension of the statute of limitations between the date the letter was received and the date of the hearing. Yet, contrary to plaintiffs contention, it is well-settled that “repeated defamations do not constitute a continuing tort.”
Lewis v. Gupta,
Finally, to avoid the conclusion that his defamation action is time-barred, plaintiff argues that every distinct viewing of the letter, first upon its receipt and then again at the arbitration hearing, constitutes a separate publication and, thus a new cause of action. If correct, a new statute of limitations would begin to run
Similarly, plaintiff in this case may only maintain a single cause of action arising out of the June 28, 2002 letter. Moreover, the statute of limitations on that claim began to run the day the letter was received by the arbitration panel and cannot be tolled or extended. Assuming, arguen-do, that plaintiff could establish a valid claim based on the June 28, 2002 letter and that it was not barred by the statute of limitations, he might be able to establish additional damages owing to the republication of the letter on the date of the hearing. In other words, a republication does not restart the limitations period, but the extent of republication may affect the extent of the alleged injury to reputation. In sum, plaintiff may not resurrect his stale claim based on the June 28, 2002 letter merely because the letter was read by additional third parties on a later date. Therefore, any claim arising out of statements contained in the June 28, 2002 letter is time-barred by Virginia’s statute of limitations and must be dismissed.
B. Absolute Privilege
The next step in the threshold analysis of plaintiffs defamation claims is to address whether Virginia accords an absolute privilege to statements made in the context of an arbitration proceeding. It is well-settled that words spoken or written in a judicial or quasi-judiciál proceeding are absolutely privileged when relevant to the subject matter of the proceed
The rule is broad and comprehensive, including within its scope all proceedings of a judicial nature whether pending in some court of justice, or before a tribunal or officer clothed with judicial or quasi judicial powers. It applies to communications made before tribunals having attributes similar to those of courts.
Id. (citation and quotation omitted).
Nor is there any doubt that the arbitration procedure here in issue is sufficiently similar to a judicial proceeding to warrant the application of an absolute privilege to all statements made in connection with such a proceeding. Particularly instructive in this regard is
Corbin v. Washington Fire & Marine Ins. Co.,
It is also worth noting that the application of the absolute privilege to arbitration proceedings is entirely consistent with the
As an illustrative contrast, in
Elder v. Holland,
These settled principles of Virginia law, applied here, compel the conclusion that the attributes of fee arbitrations are sufficiently similar to judicial proceedings such that there is a firm basis for applying the absolute privilege in the arbitration context. In this respect, it is apparent that the fee arbitration proceeding more closely resembles judicial or quasi-judicial proceedings, for which application of the absolute privilege is warranted, than the informal departmental hearing discussed in
Elder,
which does not warrant application of the absolute privilege. Indeed, an examination of the attributes of a fee arbitration under Virginia law confirms its close resemblance to the typical court proceeding. Thus, the fee arbitration is a voluntary alternative to filing a civil lawsuit, and results in a binding, final decision that is enforceable by the circuit court. See Virginia Uniform Arbitration Act, Va. Code §§ 8.01-581.01-.16. Moreover, like any judicial proceeding, both parties are given notice of the proceeding, have the opportunity to present evidence, to be represented by counsel, to subpoena documents, information and witnesses and are subject to a binding and enforceable decision.
See
Fee Dispute Resolution Program, Virginia State Bar,
Program Rules,
R. 10, 16, 18 (2003). It is true, of course,
A contrary rule resulting in the failure to cloak arbitration proceedings with an absolute privilege for defamatory statements would have a chilling effect on arbitration proceedings. In this event, parties would face the decision to file a civil lawsuit, where they would be absolutely protected from lawsuits for erroneous and. defamatory assertions, or to submit to the typically less expensive and more expeditious arbitration proceeding where they would incur the risk of an additional defamation lawsuit for statements made in the context of the arbitration. Parties presented with such a decision would likely be discouraged from selecting arbitration, a result that would defeat the very rationale for providing alternative methods of dispute resolution.
Therefore, it is clear in this case that all statements uttered on June 30, 2003 before the arbitration panel are protected by the absolute privilege. It is also clear that the absolute privilege applies not only to oral statements addressed to a quasi-judicial body, such as the arbitration panel, but also more broadly to other relevant written and oral communications made in the course of the proceedings.
See, e.g., Kelley v. Bonney,
Finally, even if plaintiffs claims were not barred by the statute of limitations or an absolute privilege, plaintiff has failed to identify any actionable statements upon which to state a claim. Under Virginia law, to state a claim for defamation, plaintiff must show (1) publication, (2) of an actionable statement with (3) the requisite intent.
Chapin v. Knightr-Ridder, Inc.,
Measured by these standards, all the alleged defamatory statements in the complaint fall short. First, the fact that some of the alleged statements may have been false, without more, is not sufficient to maintain a cause of action for defamation. For example, plaintiff objected to written accusations that he had agreed with Laufer to obtain a second opinion from OF
&
P. It may be true that plaintiff objected to this course of action, but a statement to the contrary cannot serve to damage his reputation in the community. In other words, the statement may be false, but it does not serve to make him appear “odious, infamous, or ridiculous.”
Chapin,
Conversely, a statement that is damaging to one’s reputation cannot be defamatory if it is not false. Truth does not defame. OF
&
P’s efforts to impeach plaintiffs motives by suggesting that he had previously disagreed with other attorneys and demanded that they return his money may portray plaintiff in a negative light, but this is not a false statement of fact.. Plaintiff concedes that he previously disagreed with his attorney’s judgment and that he refused to pay Laufer for OF & P’s second opinion. Thus, even if the statement’s tone was insulting or ridiculing, it cannot be defamatory if the substance is true.
See, e.g., Briarcliff Lodge Hotel v. Citizen-Sentinel Publishers,
Finally, plaintiff objects to an “attack” during cross-examination when OF & P’s attorney asked him to name all attorneys he had consulted in connection with his claim against Lake Manassas. While this interchange may have embarrassed him or made him feel uncomfortable, this is the nature of cross-examination. If plaintiff was embarrassed because he could not, or would not recall, their names, this is not defamation. A plaintiff may not resort to the courts every time he is put off or offended by the statements of another.
Because plaintiff has failed to allege any actionable statements in his complaint, and a review of the June 28, 2002 letter has failed to uncover any additional statements that are arguably defamatory, plaintiff has failed to state a claim for defamation upon which relief may be granted.
III.
In sum, plaintiffs defamation claims must be dismissed. Those statements not barred by Virginia’s statute of limitations are absolutely privileged as they were uttered during the course of a quasi-judicial fee arbitration proceeding. A fee arbitration, as an alternative to a civil lawsuit, requires the same protections for free and robust communication as a formal judicial proceeding. Yet, even if plaintiffs claims were not barred, the statements alleged do not rise to the required standard to be actionable as defamation. Plaintiffs complaint against defendant must be dismissed.
An appropriate order will issue.
Notes
. The facts recited here are derived from the complaint. On a threshold motion to dismiss, the allegations of the complaint must be accepted as true and all facts and reasonable inferences must be construed in the light most favorable to the plaintiff.
See Ibarra v. United States,
. The Virginia State Bar Fee Dispute Resolution Program (FDRP) is a voluntary arbitration alternative to civil action, which may be invoked to resolve any dispute over a fee paid, charged, or claimed for legal services rendered by a member of the Virginia State Bar. See Fee Dispute Resolution Program, Virginia State Bar, Program Rules (2003), available at http://state.vipnet.org/vsbar/feerules.html (last visited Aug. 23, 2004). Matters adjudicated before the FDRP are governed by the Virginia Arbitration Act, Va.Code § 8.01-577 et seq., and thus all decisions may be enforced in accordance with that statute.
. A copy of the June 28, 2002 letter was relied on and quoted in plaintiff's complaint, but not attached. As such, the letter is appropriately considered in its entirety in resolving the motion to dismiss. See Fed.R.Civ.P. 10(c);
New Beckley Mining Corp. v. Int’l Union, United Mine Workers of Am.,
. A federal court sitting in diversity must apply the law of the state in which it sits, including the state’s choice of law rules.
See Van Dusen v. Bairack,
. Plaintiff allegedly did not receive a copy of the June 28, 2002 letter until November, 2002, although OF & P claims to have faxed and mailed the letter promptly at the end of June. Regardless, the date plaintiff learned of the defamatory statement is not relevant to the statute of limitations analysis. In Virginia, an action for defamation arises on the date the injury is sustained, not the date the resulting damage is discovered. See Va.Code § 8.01-230 ("In every action for which a limitation period is prescribed, the right of action shall be deemed to accrue and the prescribed limitation period shall begin to run from the date the injury is sustained in the case of injury to the person or damage to property ... and not when the resulting damage is discovered ....”). Although the Virginia General Assembly has explicitly defined a few exceptions to this rule, see, e.g., Va.Code § 8.01-245 (suits against fiduciaries); § 8.01— 249 (fraud, malicious prosecution, and others), it has declined to adopt a discovery rule in defamation actions. Nevertheless, even if defendant did not send the position statement to the arbitration panel until November 2002, as long as the panel received it shortly thereafter, plaintiff would still be nearly seven months late in filing this suit for damages arising from statements in that letter.
. Rule 6(e), Fed.R.Civ.P., provides that “[w]henever a party has the right or is required to do some act or take some proceedings within a prescribed period after service of a notice or other paper upon the party and the notice or paper is served upon the party [by mail], 3 days shall be added to the prescribed period.” Fed.R.Civ.P. 6(e).
. The Supreme Court has often referred to Title VII's ninety-day filing period after receipt of a "right-to-sue” letter from the EEOC as a statute of limitations.
See Zipes
v.
TWA,
. Facts contained in the June 28, 2002 letter may be considered here, despite the fact that plaintiff did not attach the letter to his complaint, because plaintiff extensively relies upon it in stating his claims. See supra note 3.
. Plaintiff’s complaint contains no allegation that the letter remained unopened by the arbitration panel, a clerk, or some other representative for an entire year until the June 30, 2003 hearing, nor could he make such an allegation consistent with Rule 11.
See
Fed. R.Civ.P. 11(b)(3) ("By presenting to the court ... a pleading, written motion, or other paper, an attorney or unrepresented party is certifying that to the best of the person’s knowledge, information, and belief, formed after an inquiry reasonable under the circumstances, the allegations and other factual contentions have evidentiary support or, if specifically so identified, are likely to have evidentiary support after a reasonable opportunity for further investigation or discovery.”). Plaintiff does seemingly allege in his opposition to defendant's motion to dismiss that the panel opened and read the letter for the first time at the hearing, but it is also "axiomatic that a complaint may not be amended by the briefs in opposition to a motion to dismiss.”
Morgan Distrib. Co., Inc. v. Unidynamic Corp.,
. Although the Supreme Court of Virginia still has not formally addressed this issue, the Fourth Circuit has repeatedly upheld the conclusion that Virginia would follow the great majority of states that now embrace the “single publication rule.” See
Morrissey v. William Morrow Co.,
. The absolute privilege applies only to statements relevant to the proceedings, but the concept of relevancy is to be "liberally construed.’'
See Mock v. Chicago, R.I. & Pac. R.R.,
.
See, e.g., Mock,
. Because all statements alleged in plaintiff's complaint are protected by an absolute privilege, it is not necessary to reach defendant’s qualified privilege defense. Yet, even were the absolute privilege not applicable in arbitration proceedings, a qualified privilege would nonetheless apply, in which event the
. Speech which does not contain a provably false factual connotation is sometimes referred to as "pure expressions of opinion.”
See, e.g., Williams v. Garraghty,
