Plaintiff-appellant George Rambo, a water treatment technician at the Pendleton Reformatory, initiated this defamation action against then Pendleton Superintendent Edward Cohn and the State of Indiana. The trial court dismissed the action due to Rambo's failure to exhaust administrative remedies under the Administrative Adjudication Act 2 (AAA) and then granted summary judgment to the defendants on the basis of immunity under the Indiana Tort Claims Act (ITCA). 3
We reverse the dismissal and affirm the summary judgment. 4
FACTS
Rambo has been an employee of the Indiana Department of Correction at the Pendleton Reformatory for over 30 years. Prior to 1989, he accumulated a large surplus of vacation days. In 1988, the Department of Correction instituted a policy requiring employees to reduce their accumulated vacation time to a maximum of 75 days.
Rambo was, and is, reluctant to take vacation days; he instituted an administrative review challenging the propriety of the vacation policy. Nonetheless, after a great deal of haranguing, Rambo agreed to take a 61 day vacation beginning January 8, 1989. The unusually long vacation required approval not only from Superintendent Cohn, but also from the Commissioner of the Department of Correction and the Director of State Personnel.
Instead of going to Florida as planned, however, Rambo appeared for work on January 8, 1989. He offered his daughter's changed wedding date and the pending status of his administrative challenge as justification. The record reveals Rambo had difficulty understanding the difference between changing his departure date for Florida, a matter solely of Rambo's concern, and changing the commencement date of his time away from work, a matter of demonstrated institutional interest. When Superintendent Cohn learned of Rambo's presence, he summoned Rambo to his office for a meeting. Four people attended the meeting: Pendleton's physical plant director, who is Rambo's immediate supervisor, Pendleton's personnel director, Rambo, and Cohn. The facts most favorable to Rambo reveal Cohn made three statements to which Rambo objects. First, Cohn told Rambo he was a "lazy," "trouble-causing," "stupid," and "arrogant" employee. Record at 98. Second, Cohn told Rambo to stop acting like a "horse's butt." Record at 98. Third, he said Rambo was "antiSemitic." Record at 98.
The next day, Cohn memorialized the meeting in a letter to Rambo with copies to the other people at the meeting. The let ter, however, contains none of the allegedly defamatory remarks made at the meeting. In the end, no disciplinary action was taken against Rambo for his failure to comply with the vacation policy, and he continues in his job as before.
Apparently, however, Rambo has become a depressed and nervous man in the wake of Cohn's remarks and has spent a great deal of time in professional counseling. He now seeks recovery for impotence, shingles, urinary difficulties, bills for medical and psychological assistance, and lost work stemming from emotional distress.
DISCUSSION AND DECISION
I. EXHAUSTION
Our initial task is to resolve the inconsistency between the trial court's dismissal of Rambo's complaint for failure to
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exhaust administrative remedies and the subsequent summary judgment entered for the defendants. Judicial review of agency actions is achieved exclusively through compliance with the procedures of the AAA. IND.CODE 4-21.5-5-1. Generally, the failure to exhaust administrative remedies waives the right to judicial review. IND.CODE 4-21.5-5-4. Indeed, until a party has exhausted available administrative remedies, the courts cannot exercise subject matter jurisdiction over the party's claim, and the action is subject to dismissal. United States Auto Club, Inc. v. Woodward (1984), Ind.App.,
If administrative procedures are incapable of "answering the question presented" by a party's claim, exhaustion is not required. Indiana Dep't of Pub. Welfare v. Chair Lance Service, Inc. (1988), Ind.,
Similarly, Rambo's complaint in the present case alleges libel and slander; he does not seek relief from an unsatisfactory condition of employment or an involuntary change in his status of employment as contemplated by IND.CODE 4-15-2-35. Quite simply, the administrative review process is incapable of providing a remedy for Rambo's complaint. The State Employees Appeals Commission, the ultimate agency authority for state personnel grievances, is not empowered to award damages for defamation. See IND.CODE 4-15-1.5-6. When the character of the question presented is beyond the pale of the agen-ey's competency, expertise, and authority, failure to exhaust will be excused. See Wilson v. Board of Indiana Employment Sec. Div. (1979),
The trial court had subject matter jurisdiction over Rambo's claim and therefore erred in dismissing Rambo's complaint.
II. SUMMARY JUDGMENT
A. Standard of Review
After erroneously dismissing Rambo's complaint, the trial court granted summary judgment to the defendants. Summary judgment is appropriate only when no genuine issues of material fact exist. Moore v. Sitzmark Corp. (1990), Ind.App.,
B. Defumation
To maintain an action for defamation, a plaintiff must show a communication with defamatory imputation, malice, publication, and damages. Shallemberger, supra, at 704. Defamatory communications are those which tend to harm a person's reputation by lowering the person in the community's estimation or deterring third persons from dealing or associating with the person. Chestnet v. K-Mart Corp. (1988), Ind. App.,
A communication may be defamatory per se or per quod. In the case of slander,
6
a communication is defamatory per se under well-settled common law rulings if it imputes: 1) criminal conduct; 2) a loathsome disease; 8) misconduct in a person's trade, profession, office, or occupation, or; 4) sexual misconduct. Restatement (Second) of Torts § 570 (1977) 18 I.L.E. Libel and Slander § 21 (1959);
7
Gabe v. McGinnis (1879),
All other factual communications, even if they are defamatory in that they tend to harm a person's reputation by lowering the person in the community's estimation or deterring third persons from dealing or associating with the person, Chestnet, supra, are, at most, defamatory per quod. This latter type of defamation is actionable, if at all, only if it causes the plaintiff special damages. See Jacobs, supra, at 1264; W. Prosser and W. Keeton, Prosser and Keeton on Torts, § 112, p. 793 (5th ed. 3rd printing 1989); Restatement (Second) of Torts § 575 (1977). Accord, Ceravolo v. Brown (1978), Ala.,
In either a per se or a per quod defamation action, however, the plaintiff may recover for emotional or physical harm only upon proof of the predicate case. The gravamen of a defamation action is harm to the plaintiff's reputation in the eyes of others. Marczak v. Drexel (1989),
Similarly, a plaintiff in a per quod defamation action can recover for emotional and physical harm only upon a showing of special damages, Restatement (Second) of Torts § 623 (1977); W. Prosser and W. Keeton, Prosser and Keeton on Torts, § 112, p. 794 (5th ed. 3rd printing 1989). Emotional and physical harms are not special damages unto themselves, but rather are parasitic damages, viable only when attached to normal (ie., pecuniary) special damages. Id.; C.J.S. Libel and Slander § 191 (1987), Scott, supra,
*147 We turn now to the specific allegations of Rambo's action.
1. Remarks alleging incompetence as an employee
As we have already noted, Rambo alleges Cohn, in the presence of Rambo's supervisor and Pendleton's personnel chief, called Rambo a lazy, trouble-causing, stupid, and arrogant employee. 11 Rambo cannot recover for these remarks.
In an opinion authored by Judge Staton, this court recently adopted the majority American rule that no publication occurs when statements about an employee are communicated by a supervisor or employer only to other company personnel with an interest in the statement. Bals v. Verduzco (1990), Ind.App.,
Even if the remarks were untrue, defamatory, and published, however, there would nonetheless be no liability. Under ITCA, Superintendent Cohn was immune from liability for actions, undertaken in the scope of his employment, to enforce rules and regulations. IND.CODE 34-4-16.5-3(7); Indiana Dep't of Correction v. Stagg (1990), Ind.App.,
The trial court properly granted the defense motion for summary judgment for Cohn's remarks about Rambo's performance as an employee. Cohn's other remarks, calling Rambo a "horse's butt" and "anti-Semitic," likewise lead to no liability, but for different reasons. 13
2. Horse's Butt and Anti-Semitic
It is well-settled throughout this country that obnoxious remarks, even remarks much more obnoxious than those Cohn is alleged to have made here, are not defamatory per se, and will not lead to liability without proof of special damages. See, e.g., Raible v. Newsweek, Inc. (W.D.Pa.1972),
As we stated earlier, the determination of whether a statement is defamatory or not is to be made in light of all the circumstances surrounding its utterance. Blickenstaff, supra. The Rybas decision, in which the Pennsylvania court held the phrase "anti-Semitic" not to be defamatory per se, makes clear the circumstances surrounding an utterance include the nature and extent of the audience receiving the publication and the nature of the times in which the utterance is made. In Beamer v. Nishiki (1983),
Here, the audience was comprised of only two people, both of whom were intimately involved in Rambo's continuing administrative struggle over the vacations policy. We fail to see how Cohn's angry remarks could deter these two people from associating with Rambo. Chestnet, supra; see also Rybas, supra,
In addition, the cases finding allegations of anti-Semitism and the related allegations
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of being a "Naziphile" or a "Quisling"
16
to be defamatory per se all arose in the 1940s, when an allegation of anti-Semitism was tantamount to an allegation of sympathy with Nazi Germany. In those days, when almost every American family had some involvement with the war against Nazi Germany and its allies, an allegation of sympathy with the enemy could easily destroy a person. See Sweeney v. Schenectady Union Publishing Co. (2nd Cir.1941),
Today, passions have had almost half a century to cool, and although an allegation of anti-semitism is as morally reprehensible now as it was then, the consequences of such an allegation today bear little resemblance to the harm a defamed person would have suffered in the 1940s. 19
In light of the preceding discussion, we hold the phrase "anti-Semitic," like the other ethnically related slurs in the cases cited above, is not defamatory per se.
Because Cohn's remarks about Rambo acting like a "horse's butt" and being "anti-Semitic" were not defamatory per se, Rambo was limited to an action for defamation per quod. He failed to allege or show the existence of a genuine issue of material fact concerning the pecuniary special damages that are the essence of a per quod defamation action. His attempt to recover damages only for physical and emotional injuries therefore fails, and the trial court properly entered summary judgment in favor of the defense.
CONCLUSION
The trial court erred in dismissing Rambo's complaint. Rambo was not required to exhaust his administrative remedies. The entry of summary judgment, however, *150 was proper. Cohn's remarks about Rambo's performance as an employee were not published, and Cohn was also immune for those remarks. The other remarks were not defamatory per se, and Rambo failed to make out an action for defamation per quod.
The dismissal of Rambo's complaint is reversed. The summary judgment in favor of Cohn and the State is affirmed.
Notes
. IND.CODE 4-21.5-1-1 et seq.
. IND.CODE 34-4-16.5-1 et seq.
. Rambo's complaint also states a cause of action under 42 U.S.C. § 1983. Rambo made no _ argument to the trial court or this court, however, concerning his claims under § 1983, and he has therefore waived any such claims. Ind.Trial Rule 56(H); Ind.Appellate Rule 8.3(A)(7).
. IND.CODE 4-15-1-1 et seq.
. Rambo has not pursued his libel claim beyond the use of the word "libel" in his complaint. Any libel claim is therefore waived. See note 3, supra.
. Without citation, this section also mentions the imputation of actions that would cause a person to be disinherited as defamatory per se.
. The ancient rule concerning sexual misconduct referred only to women. See W. Prosser and W. Keeton, Prosser and Keeton on Torts, § 112, p. 793 (5th ed. 3rd printing 1989). In Indiana, however, the per se defamatory nature of such charges applies equally to men and women. IND.CODE 34-1-62-1.
. Thus, it is defamatory per se to accuse a physician of killing his or her patients, Depew v. Robinson (1883),
. Our supreme court's recent decisions in Shuamber v. Henderson (1991), Ind.,
*147 Thus, although the impact rule no longer exists for intentional torts, Indiana still requires a predicate tort, such as defamation, before a plaintiff can recover for emotional distress, and if a defamation plaintiff cannot prove the elements of either per se or per quod defamation, there can be no recovery for emotional distress.
. At first blush, these remarks present the question of whether Cohn was stating facts or opinion. Although whether a communication is a statement of fact or opinion is a question of law, Near East Side Community Organization v. Hair (1990), Ind.App.,
The Colorado Supreme Court's decision in Bucher v. Roberts (1979),
society's tolerance for verbally abusive angry outbursts, as reflected in Comment e of Restatement (Second) of Torts, § 566 (1977).
. Judge Hoffman impliedly stated the same result in his opinion for the court in Kolczynski v. Maxton Motors, Inc. (1989), Ind.App.,
. We are aware of no Department of Correction policy, or of any executive, legislative, or judicial policy in this state which would authorize state supervisory employees, in the course of their employment as defined ITCA, to hurl personal and ethnic insults at their subordinates.
Moreover, the phrases "horse's butt" and "anti-Semitic," although uttered in a heated conversation stemming from a work-related dis pute, are themselves unrelated to Rambo's performance as an employee. Thus, these phrases do not fall within the rule adopted in Bais, supra, and were therefore published to Rambo's supervisor and the Pendleton personnel chief.
. In Hansen, the City Court of New York eloquently stated that:
[elpithets of the character which form the basis of this complaint for libel and slander, while malodorous and unesthetic, are colloquialisms largely indulged in by the general citizenry in the heat of discussion or controversy. It would be an infringement of the right of free speech to restrict the average citizen to the use of esthetic language and limit the right of pungent description of distasteful personalities or opinions. While the line of demarcation between slander and permissive descriptive adjectives may be thin, the Court is of the opinion that the words complained of in the instant case come within the latter category. No special damages are averred in the complaint nor does it allege any special innuendos recognized by those who heard the language employed. The Court, moreover, will not set itself up as a censor of the linguistic mores of the community. The reason for such reluctance will readily be apparent to any one who frequents our places of recreation such as ball parks and boxing exhibitions. Wounded sensibilities are not actionable per se, and while the sensibilities of the plaintiff have undoubtedly been outraged, the Court is without power to give redress.
Id. at 168-69.
. For example, if Rambo were a meat supplier with Kosher customers, a charge of anti-Semi-tism leading to loss of Kosher business could easily support a per quod defamation action.
. Vidkun Quisling was a Norwegian politician who collaborated with the Nazi invaders and served as head of the Norwegian puppet regime, the State Council of Norway, from 1940-45. See The American Heritage Dictionary of the English Language 1072 (4th printing, 1970). Quisling is a synonym for "[al traitor who serves as the puppet of the enemy occupying his country." Id.
. The plaintiff in Sweeney was a Congressman from Ohio who was alleged in the media to have opposed the appointment of the United States Attorney for the Northern District of Ohio to the federal bench because the nominee was a naturalized Jew born in Hungary. Sweeney filed several suits, and the decision cited above, in which Judge Learned Hand concurred, was the only one, even in those trying times, to find the accusation against Sweeney to be libelous per se. The decision in Life Printing & Publishing Co., Inc. v. Field (1944),
. The decision in Sanctuary, supra, for example, makes clear the validity of the idea that the defamatory nature of an utterance is to be construed in light of the times. The defendants in that case successfully raised the defense of truth, and the decision is not only a stirring defense of the United States' conduct in World War II, but is also a palpable expression of the judge's contempt for the plaintiff's beliefs.
. The decision in Schermerhorn v. Rosenberg (1980),
As a result of the fabrications, the plaintiff's daughter was assaulted, he suffered vilification by his Senate colleagues, received death threats, and required police protection. The court held this evidence was sufficient to let the question of the libellous nature of the publication go to the jury.
The nature and extent of the publication and the audience, and the circumstances surrounding the remarks, were critical to the determination of the remarks' potentially defamatory nature, and the difference between the situation in Schermerhorn and the present case requires no further elaboration.
