*1 BICHLER, Plaintiff-Appellant, Richard BANK AND TRUST COMPANY
UNION al., RAPIDS, et OF GRAND
Defendants-Appellees.
No. 82-1103. Appeals,
United States Court
Sixth Circuit.
Argued 1984. Jan. Sept.
Decided 30, 1984.
As Amended Oct. *2 Jackson, Laska,
Wilson M. Jackson & Warren, Mich., (argued), Dorsi Bosca plaintiff-appellant. Warner, Cragwall, (argued),
J.A.
Jr.
Nor-
Judd,
Bandstra,
cross &
Richard
Grand
Mich.,
Rapids,
defendants-appellees.
LIVELY,
Judge;
Before
ED
Chief
WARDS, ENGEL, KEITH, MERRITT,
MARTIN, JONES, CONTIE, KRUPAN
WELLFORD,
and
Judges;*
SKY
Circuit
WEICK,
Judge.
Senior Circuit
LIVELY,
Judge.
Chief
appeal by
plaintiff
This is an
summary judgment in favor of the defend-
Rapids, Michigan,
ant WZZM-TV of Grand
claiming
in an action
that a broadcast
plaintiff’s
defendant
invaded the
privacy.
Jurisdiction is
on diversi-
based
ty
citizenship,
law of
substantive
appeal
origi-
controls. This
nally
by panel
heard
of the court and its
(6th
opinion, reported at
tions, Inc., Michigan corporation operated the Thunderbird Dinner Theater Alpine Township, Rapids, Grand near Michigan. general manager As of the the- productions, ater booked various press. which were advertised in the local reviewed, productions were also news stories were run about the theater * hearing Judge Kennedy participate in the en banc or decision. did not Press, Rapids only daily zyk
The Grand described himself “silent partner" newspaper in the area. the dinner theater. He had money advanced to Bichler and was wor- Jerry pro- and his Bichler hired Moore ried about effect the would have stage plays company to several duction ability of the theater to continue theater, including “Hair” and “Jesus operations. He had learned from Moore Superstar.” Moore and Bichler had Christ *3 planned story that WZZM to include the dispute stopped pay- after Bichler a which Kowalczyk its newscast. did not tell Rum- $9,000 ment on a check to Moore. Moore mel that information from Moore was stopped on “Hair” then work which was gist The attorney’s false. of his and his press conference to production and called representation to Rummel was that the sto- рress the cancellation. The con- announce ry “could be the straw that broke the cam- ference was held at a motel where the cast Kowalczyk story el’s back.” wanted the staying. presence press rep- In the was delayed day for a two order to locate “rolling” and with cameras resentatives get Bichler and his version of the matter. group Moore announced to a of cast mem- request, sought Rummel refused this as a production bers that the current favor, advising Kowalczyk that (“Je- one cease and that the next scheduled story would run. Superstar”) begin, sus Christ would not story least not on schedule. The segment broadcast as a the 11 o’clock transcript news. The of the Rummel, James news anchorman for entirety: broadcast is set forth in its WZZM-TV,attended the conference. After report closing “A of the Thunder- Moore, it was over he interviewed some Dinner bird Theater.... manager. cast members and the motel Michigan’s only And West Dinner The- Moore told Rummel that he had not been ater today____leaving locked its doors paid production for the current and that he production company wondering what to planned to sue Bichler for breach of- con- next____ do tract. Members of the cast confirmed they paid warning had not been and that the With no advance cancell- the Thun- .... production hardships ation of the created derbird Dinner Theater locked its doors today____, leaving them. Moore told Rummel that he about 40 members of middleman; production New York based money company came and advance ticket respon- from Bichler and that holders in the lurch. Bichler was paying sible for the salaries of the cast. got When closing we word of the we “innkeeper” pay- The told Rummel drove out to the Thunderbird located ment for the rooms of the cast was in north of Alpine Comstock Park on Ave- arrears and that this was also Bichler’s nue. All we found were lоcked doors obligation. empty parking and an lot. The news closing was broken to press conference and interviews took the members of the current east of “Hair
place p.m. between 3 and January ____ by producer Jerry the show’s immediately 1976. Rummel attempted to Moore: theater, by calling reach Bichler The Thunderbird Theater business, has been hav- place home and a listed all ing problems in recent weeks as evening without success. Later in the has it’s owner Today, Dick Bichler. to, Rummel [sic] drove the theater with a cam- it was catching Bichler who was building eraman and found the dark and blame and the wrath of the cast: locked. Rummel then returned to the prepared WZZM p.m. problem studio and for the 11 now becomes one of what to Kowalczyk newscast. David and his attor- do for pro- the members of the current ‘Hair’____and ney arrived at the studio before air time duction for the cast of attempted to dissuade Rummel from the theater’s next production scheduled using about the theater. Kowalc- Superstar.’ of ‘Jesus Christ Most of money An them are without and without action for libel was barred by limita- and, affidavits, plane developed all of Bi- tions depo- tickets home ... discovery for. sitions other chler had contracted Bichler’s claim privacy was for invasion consisting to- unavailable comment broadcasting embarrassing private facts day. ... placing about him and him in light a false Moore file a Producer will lawsuit public eye. The district court identi- him against charging tomorrow breach portions fied the objected broadcasts contract____ to as follows: might And there a few advance reser- alleged disclosure of facts their wanting vation holders who will be complained contained in money back. the broadcast following: consists According Moore, more than 3000 dol- (1) “The Thunder Bird Theater has lars in had been sold to advance tickets *4 having problems been finanсial in re- Superstar’ Christ ... slated to ‘Jesus cent weeks as has its owner Dick Bi- open January 28th” Today chler. it was Bichler who was attempted Rummel to locate Bichler catching the blame and the wrath of day, following again without success. He the cast.” also records and found checked following alleged The statements are outstanding against claims Bichler and publicity holding constitute plaintiff out in enterprises. story business was “re- light: a false again packaged” and broadcast at 5:30 that (1) plaintiff having Bichler was evening. fi- difficulties; nancial day following the second broadcast (2) closing left local called with ..'. bank its loan the theater about members of repossessed personal pro- and a New York property covered based company by security agreements duction and from the advance ticket theater holders in the lurch. premises. equip- Other creditors removed paid ment which had not been for and (3) ... Most of are money them without building largely stripped was con- of its plane and without tickets home ... tents within a few weeks. theater all which Bichler had contracted reopened. never for. (4) $3,000 More ... than tick- advance II. had ets been sold to Christ Jesus Superstar open January ... slated to A. (Inferring, according plain- 28th. complaint charged In his Bichler WZZM people tiff that these also would be defaming with “by defaming him the busi- “waiting money the lurch their entity, ness The- Thunderbird Dinner back.”) ater____” charged The defamation in the (5) chicken,1 Thunder Bird was cooked complaint opening pro- consisted of place and closed. gram with a “a reference to cooked chick- (the en” Thunder Rock considering Chicken Theater After the voluminous record adjunct was an in- enterprise), relying compiled during the three and one-half Jerry years filing complaint formation Moore without check- between the of the ing decision, making out the facts and statement and its district court concluded that the had “in dinner theater fact termi- had raised a triable good, nated its business for which state- issue on either of his claims. The district absolutely ment was closing false fallacious.” court determined that transcript 1. The con- the broadcast does not it was not satisfied included the WZZM any tain reference to "cooked chicken.” In broadcast. evidence, absence of am affidavits or other Michigan records which revealed that there were out- in Western only dinner theater event, against had Bichler or busi- standing been claims newsworthy awas operations. Exhib- and continued controlled him. opening nesses me- filed showed substantial its were coverage Bichler’s of those events. dia B. reported condition as the “owner” appeal argues On that the state- closely “manager” theater was privileged ments in the broadcast were not to the financial condition of related Michigan they under law because were not closing. of its Con- theater faith, good made in that the comments on “private claim the dis- cerning the facts” finances were outside the reference to court concluded that trict privilege, the scope of the that the district was neither Bichler’s financial condition treating him as a erred “for its own highly offensive nor made figure, summary judgment and that Michigan sake,” under privileged material improper because there were is- law. jury. sues of fact be decided alternative find- The district court made response argues WZZM broadcast respect light” ings to the “false claim. subject, newsworthy concerned a that Bi- public fig- awas It concluded that Bichler legiti- chler’s financial difficulties were least in context of the theater ure at part mate of the broadcast and such could held and that WZZM not be business qualified privi- are broadcasts accorded a under law absence of liable lege The defendant under law. *5 showing of malice. In alterna- a actual the now that a concedes Bichler is not even the court found that if Bichler tive figure, asserts that this makes no dif- person private found to be he was were a privilege the ference because broadcaster’s not entitled' a trial without demonstrat- showing only upon is lost of “actual which ing that “evidence exists creates regardless plaintiff of malice” whether the legitimate fact whether WZZM issue over public figure is a or a individual. place plain- its knew that broadcast summary WZZM further contends that light, in a false tiff or with reckless disre- because, judgment proper response gard of that result.” The court found that motion, produced to its Bichler no evidence Michigan applies malice the same actual that the broadcast was made with actual of individuals standard claims malice. they of are
regardless whether based on placing plaintiff on in a false libel or the the
light. examining After all affidavits III. discovery the materials district court of claim Consideration Bichler’s that had plaintiff concluded the failed ques- WZZM’s defense involves two distinct showing come forward with evidence that tions, sepa- they must be considered degree “high acted with a aware- WZZM of rately. probable falsity” report, of the of ness the question The first is whether concerning its or with “serious doubts” privilege WZZM was entitled to the the contrary, truth. To this examination privilege The existence is claimed. of the revealed that no had told Rummel that one law, question of to be determined the concerning information finan- examining upon court of the “occasion” cial condition was false or the circum- publication. refers to “occasion” closing surrounding stances of the the- extrinsic circumstances in which broad reported by him were incorrect. On ater Fox, hand, cast was made. Lawrence v. 357 checked the the- the other Rummel 139-40, (1959); closed, Mich. checked facts N.W.2d ater and found it Press, Inc., sources, attempted Detroit outside to contact Peisner v. Free and, January Mich.App. N.W.2d confirmation 22nd, If it entitled made a check of is concluded WZZM was Peisner, 181; privilege, question to the the second is Mich.App. N.W. 163-64, through 266 N.W.2d privilege whether was lost abuse, is, by publishing of district held that broadcasts closing the theater’s with actual malice. concerning the closing only dinner question of This is a fact. theater Western Michigan dealt with a legitimate matter of public, concern to the
A.
particularly in
publicity
view of the
which
Michigan
has
defamation actions
opening
had attended its
operations.
and its
long recognized
common
law defense
Bichler contends that
the district court
Although the
privileged communication.
erred in
determination because it con
present
claim in the
case is for invasion of
sidered
“occasion”
the broad
libel,
privacy rather
inquire
than
Restatement
cast and did not
“good
into the
quali
recognizes
of the
that the
argument
Law
same
faith” of WZZM. This
tele
privilege applies
types
to the
scopes
separate
fied
two
the two distinct and
inquir
(Second)
See Restatement
claims.
ies
one.
publication
into
Whether the
§
Torts,
652G,
(“[u]nder any
good
comment a.
made
faith
question
addresses the
give
circumstances that would
rise to a
question
not the
of privilege. As
privilege
publication
conditional
for the
Supreme Court stated in
Fox,
defamation
is likewise
Lawrence v.
there
a conditional
357 Mich. at
Bi
privilege
privacy.”)
for the invasion
making
“In
the determination
dispute
chler does not
fol
occasion,
as to the
requires
lows this rule and
show
charged by
same
malice
is not con
ing
privi
of actual malice
overcome the
sidered.” The
properly
district court
deter
lege regardless of whether the
question
tort
libel
privilege by
mined the
refer
privacy.
or invasion of
occasion,
is,
ence to
the circum
subject
stances
became the
Michigan privilege
been
has
broadcast.
qualified
described as
one
which “extends
to all communications made bona fide
upon
B.
*6
any subject-matter in
party
which the
com
The district court did not err in hold
municating
interest,
has an
or in reference
ing
privileged.
broadcast was
It
duty,
person having
to which he has a
to a
legitimate
dealt
a
public
with matter of
Bacon
corresponding
duty.”
a
interest or
Contrary
interest.
to assertions made at
Co.,
Michigan
v.
Central R.R.
Mich.
66
argument,
requirement
oral
there is no
166, 170,
(1887). Newspapers
181
33 N.W.
publication
that a
or broadcast deal with a
qualified
a
privilege
and broadcasters have
“public controversy” in
privi
order to be
report
public
to
on matters
interest and
leged.
proper
test whether
it deals
privilege applies equally
in actions
public
with matters of
interest.
In Law
brought by public
private figures.
See
Mich,
Fox,
rence v.
141,
357
at
97 N.W.2d
Mich,
Fox, 357
137,
Lawrence v.
at
97
719,
quoted
approval
with
Pros
v.
Free
719;
Peisner
Detroit
N.W.2d
§
Torts,
ed],
ser on
as follows:
95
[2d
Press,
Inc.,
160,
Mich.App.
82
266
upon
The burden is
the defendant
693;
Evening
v.
As
Weeren
News
N.W.2d
the first
instance to
establish
exist-
sociation, Mich.App.
2
138
privileged
pub-
ence of
occasion for the
(1965),
grounds,
on other
rev’d
379
526
lication, by proof
recognized public
of a
475,
(1967). If
Mich.
est”);
Schultz
however,
extend,
plaintiffs who are not
551,
(E.D.Mich.1979)
F.Supр.
interest”). As
alleged public interest
legitímate
of the
(“events of
the focus
Co.,
Argus-Press
v.
court wrote Orr
further consideration
Upon
this
publication.”
Cir.1978):
(6th
1108, 1113
F.2d
this limitation
support
no
can find
we
public con-
publishers
a matter of
qualified privilege
about
As
state
cern,
protected under
article is
law and to
under
broadcasters
“fair
privilege of
qualified
law
disapproved. There is
this extent Clark
Fox, 357 Mich.
Lawrence
comment.”
requirement under
law
no
v. De-
Miner
(1959);
1013
and the referenc- Times
v.
Co. Sullivan should be
subject
publication
applied
plaintiff
injury.
present
es to
who claims
actions such as the
one. See
Allen,
Gaynes
42,
47,
Mich.App.
128
summary,
find
we
no error
(1983) (“In Michigan,
ruling
judge
that
district
WZZMwas
New York Times standard has been ex-
qualified privilege
a
in defense
entitled to
brought by
tended
actions
indi-
remaining question
of Bichler’s claim. The
viduals
recover
from media defendants
correctly
is whether the district
held
defamatory
concerning
falsehoods
mat-
present
ques-
jury
that Biehlеr failed to
a
interest.”);
ters of
Peisner v. De-
tion on the issue of malice.
Press, Inc.,
troit Free
Mich.App. 59,
(1981);
also,
reckless
of whether it was false
B.
Sullivan,
or not.” New York Times
v.Co.
argues
Biehler
there was a
376 U.S.
S.Ct.
genuine
respect
issue with
to a material
(1964).
L.Ed.2d 686
The same constitution
fact
Kowalczyk
because
he
testified
told
applies
al standard
in actions for invasion
Jerry
Rummel
Moore was a “noted
Time,
Hill,
Inc. v.
of privacy.
liar” and Rummel denied that either Kow
387-88,
534, 541-42,
S.Ct.
alczyk
attorney
or his
made
such
state
However,
L.Ed.2d 456
where the ment.
Kowalczyk’s
An
examination
ais
individual the states
deposition
support
does not
Bichler’s claim.
are
liability
free to define the standard of
Kowalczyk
What
said was
he con
long
they
so
impose liability
do not
liar,
Jerry
sidered
Moore to be a noted
publisher
without fault on a
or broadcaster.
that he
this
Testifying
told
to Rummel.
*8
Welch, Inc.,
Gertz v. Robert
418 U.S. at
keep
that he asked Rummel to
off
347, 94
S.Ct.
3010.
air,
Kowalczyk
questioner,
to his
said
know,
you
It seems clear
recent
got
from
decisions of
“...
he
all his information
Appeals
Moore,
the Michigan
Jerry
Jerry
Court of
that Michi-
from
is
Moore
liar,
gan
anyway,
Contrary
has determined that
the definition of
noted
...”
to Bi
claim,
Supreme
by
actual
chler’s
he
any
malice announced
neither
nor
other de
New York
ponent
Court
affiant
United States
or
stated that he advised
filed.
covery,
many depositions were
untrustworthy.
was
that Moore
Rummel
2,
court
September
1980 the district
On
Further,
is uncontradicted
the evidence
protective
by
for a
a motion WZZM
questioned members
denied
Rummel
that
taking
manager, all of whom
cer-
prevent
Bichler
and the motel
order
cast
It is
given by Moore.
depositions. There is no indication
the version
tain
verified
re-
Rummel tried
that
limit-
also uncontradicted
that the district court ever
the record
Bichler for his version
discovery
to contact
or
Bichler ever
peatedly
that
ed
the theater and
eventually
sought
went
submission of WZZM’s mo-
to avoid
failed to
discovery
it locked and dark.
ground
found
that
had not
tion on
should
that Rummel
produce any evidence
completed.
been
lying.
Moore was
have believed
summary
Finally, Bichler contends that
contends
improper
Bichler also
malice is the
judgment
is
where
theater
the dinner
subjective knowledge”
stated
broadcast
“the
issue because
Rum
all
permanently whereas
was closed
and malice
of Rummel is material
the current
told was
proof
mel had been
facts. This
inferred from
of other
next one
production was cancelled
part
the first
аrgument
is addressed to
corpora
open
schedule.
not
on
the New York Times test —
published
party
theater is not a
owned the
falsity.
tion which
knowledge of
actual
how
it is difficult to see
this action and
Appeals
summary
affirmed
has
Court
error,
broadcast, if it
this error
judgment in
actions where the control-
libel
However, at
light.
Bichler in a false
put
ling
whether a media defendant
issue was
inquiry we are not con
point in the
publishing
this
qualified privilege by
its
has lost
whether the entire broadcast
Evening
v.
cerned with
See Lins
malice.
with actual
it has been determined
Ass’n,
437,
truthful. Once
Mich.App.
News
privileged the court
broadcast
The contrast between the
N.W.2d 573.
Stahlin,
it is truth
speculate
on whether
and Arber v.
does
present case
ful;
only
see if the defendant
(1969),
looks to
1015
Time, Inc.,
v.
Cervantes
464
F.2d 986
V.
cert,
(8th Cir.1972),
1125,
denied 409 U.S.
Judge
requires
The dissent of
Weick
a
939,
(1973).
Arber v. itself the dissent (1969). As implies that Bichler called The dissent to follow out, is bound this court points the two broadcasts Rummel between by law of state pronouncements considered stop second one. This attempted to absent indication courts appellate state by the record. completely unsupported that a con highest court state’s from the vague that it to his call is so The reference adopted. trary rule would be by the district or this not be treated could a rule which argues publi- The dissent having excessive court as established news dis- activities of chill the cation, would so argued by the dissent. as tigers. them toothless render pensers as to a balance between Michigan has struck day’s news reporting Rummel was informed on matters public’s to be several at- He made January and each individual’s general interest success, Bichler, without tempts contact doing Michigan privacy. so right of to the theater actually drove and then shall be that a media defendant determined closed, as himself if it had out for find publica- upon showing held liable the- He found a dark reported by Moore. knowledge falsity in tion with actual Kowalczyk to the studio went ater. When falsity of disregard of the truth or reckless deny he did not air time shortly before would alter published. The dissent matters closing. report of the theater’s truth lowering the threshold that balance to run Rummel not All he did to ask in private plaintiff must cross or- which a him. story favor change not der to recover. This Bichler problems both adopted. the State has the balance which (and Kowalczyk) already and the theater judgment of the district court the sсene. Rummel came on existed when affirmed. version, these dissent’s Contrary to the not created the broad- problems were KEITH, Judge, with whom Circuit large investment Kowalczyk had a cast. EDWARDS, Jr., Cir- GEORGE CLIFTON danger of was in theater which he concurring part Judge, joins, cuit apparently fa- losing. would The dissent dissenting part. all reporter who obtained a rule that a vor by the I in the result reached concur must nevertheless verification available However, join in that majority. cannot interest be- general public kill a disapproves of part opinion protect in order to to be true lieved v. American Clark language set forth Kowalc- acquaintance. an investment Inc., Companies, Broadcasting 684 F.2d reason; vague refer- gave zyk no real cert, denied, Cir.1982), (6th unreliability and alleged Moore’s ence to L.Ed.2d 792 U.S. his unsubstantiated belief require Rum- things up did not could clear story. mel to withhold stated, in Clark panel A of this Court extend, privilege does qualified re- “the apparently also dissent however, who are not the fo- plaintiffs egg” in to “unscramble quire the media alleged publica interest Circuit found that against cus of accusations *11 majority 684 at The tion.” F.2d 1216. in set forth an article “inte- were require have us believe that this gral to the central thesis the article” in Michigan no law. To the ment has basis therefore, and, Gertz privilege applied. the contrary, panel in Clark majority a Welch, Inc., 801, v. Robert 471 F.2d 806 cert, upon specifically the Su relied denied, (7th Cir.1972), 1226, Bowerman preme in opinions Court’s 1233, (1983). 103 S.Ct. 75 467 L.Ed.2d The Press, Free 443, Detroit 287 283 Mich. Supreme upheld analysis. Court this Bennett, (1939) Timmis v. and N.W. 642 Gertz, 4, 418 at 331 n. 94 U.S. S.Ct. at 3002 355, (1958) 352 Mich. 748 in 89 N.W.2d my way To thinking, “integral n. 4. to In Tim requirement. support of a “focus” the central thesis” is distinguishable not so mis, held, Michigan Supreme Court in the as to “focus” warrant this Court’s effect, qualified privi that in for a order disapproval. only These are two of what lege apply, alleged defamatory to the state ways express- would seem be many to for scоpe in that ment must be limited its to ing the to a relationship need establish in public which is interest. 352 Mich. controversy between the privilege. 369, holding at 89 at 755. was N.W.2d This majority’s Because of the upon insistence an what the court had said elaboration on Clark, challenging portion this I cannot Bowerman. in two decades earlier in join opinion. the majority Bowerman published in a news defendant paper concerning judicial proceed a article is so It ORDERED. inaccurate, con
ing. The article was
Nevertheless,
language.
tained libelous
JONES,
NATHANIEL R.
Judge,
Circuit
argued
there
a
the defendant
dissenting.
qualified privilege
report
judicial pro
on
respectfully
I must
dissent from the ma-
recognized
ceedings. The court first
scope
jority’s holding
Michigan’s
in
the “extrinsic
circumstances
instant
qualified privilege
reporting
for
on matters
newspaper
case are that defendant’s
public
dispute
interest. There is no
reporting
judicial proceeding
a
which creat
privilege
provides
law
such a
447,
qualified privilege.”
ed a
Mich.
287
at
reporting
the media when
on matters of
WEICK, Judge, dissent- Senior Circuit ing: I. imagined Surely Richard Bichler never The district court respectfully dissent. hiring Jerry production summary Moore and his grievously granting
erred Thus, sources, records. stance, as well as the sub- that it would not have 4. The insists legitimate possible report putatively were distinct. Justicious been of the items closing egre- story editing theater’s this of the broadcast could have avoided —without —the personal gious commentary upon af- Instead, eager an over television re- lawsuit. example Maj. op. is another fairs. at 1015. This justifica- porter without invented connections assuming majority’s predeliction for of the damaging re- tion and aired a unverified news were not In fact the two items conclusion. prevent port. should WZZM from No relationship inseparable. Bird’s The Thunder resulting bеing held accountable for the losses. impetus for Playmoore with the Productions—the Moore; plight story obtained from —was join fully Judge eloquent Jones' dissent. 5. I also by personally revealed of Bichler was company stage plays confirming reported at the Thunderbird After only what Moore pro- Theatre would result in the thea- with some of the Dinner members Moore’s untimely company “innkeeper,” demise. The interest duction tre’s un- opening operations successfully attempting the Thun- to contact Bichler derbird, given only coverage Rapids as evidenced in the in Grand from where he had departed, and finding theatre and shows the local me- locked doors at the theatre, dia, prepared Rummel adequately documents the benefit for WZZM’s Rapids Bichler’s ill-fated at- 11:00 newscast. Grand tempts to to the cultural diversi- contribute happened What between Rummel and Bi- community. ty of the corporate partner, chler’s David Kowalc- was, 21,1979, January zyk, shortly
And so it when on before the broadcast is un- gave Jerry undisputed Moore a check for clear. It is Kowalczyk the theatre told independent of the cast and for Rummel that he no services had knowl- $9000 expenses previous edge closing. affidavit, for the of the their week. Rummel’s 24, 1980, upon July Kowalczyk it was this check dated stated that court notes payment. stopped story which Bichler The rea- asked that not aired as a favor, purely private personal Kowalczyk sons for this exercise and that had however, judgment, ignored are report business not told Rummel the was false. In majority: stopped payment deposition by the Rummel’s taken one month earli- er, the time that because at about the check June he stated that he did not issued, garnishment pursuant actually Kowalczyk telling to a remember him Flint, judgment against story Kowalczyk rendered Moore in was false. stated in upon Michigan, deposition although was served Bichler for in- his he wasn’t cer- tain, Playmore and his debtedness of Moore Pro- he felt sure he had told Rummel that ductions; Bichler also evident- Moore’s Kowalczyk because true. not ly aware that certain of Moore’s further stated that Rummel him became told “he news, payment making were not invoices submitted that was his [Rummel] event, job.” any true invoices. Rummel’s broadcast closing about the went Thunderbird Apparently there was no written contract planned, reporting on as not obligations governing Moore’s to the Thun- show, closing Appellant Bi- However, derbird Dinner Theatre. testi- problems, chler’s his con- mony before the district court indicated unreliability pro- tractual as related Moore, Bichler, it was who was *15 members, seeming pen- duction and his costs, responsible paying gross the leaving everyone chant for involved with expenses lodging travel and of the cast. Theatre, including the Thunderbird Dinner portion Bichler would then remit a of the holders, the advance ticket “in the lurch.” Moore, play’s proceeds to from which costs, totally the Rummel Moore would recover his with was not insensitive to the representing profits Play- fact the remainder the substance of his broadcast danger made repu- more Productions. substantial to Bichler’s apparent. “repackaging” tation Prior to Bichler, disgruntled the It was not but day’s for the next broadcast 5:30 news- Moore, unilaterally an- liar who decided to cast, again attempted Rummel to contact produc- present the theatre’s nounce Bichler, unsuccessfully, and also checked Moore, “Hair” cancelled. tion of public records which showed lawsuits course, press held a conference to make against filed and some liens Bichler filed the deci- sure that his announcement about against his assets. second broadcast place production terminate sion to however, story, found its content light. Bichler in the most unfavorable essentially unchanged. Rummel, the news anchorman from James notes, attend, WZZM-TV, majority day following As the whom Moore invited him at face value. the second broadcast a local bank called its took what Moore told (and protect there- repossessed per- Michigan has chosen to with the theatre loan press, by promote) vigorous at the ex- by security agree- property covered sonal hapless like Richard Bi- penses of victims premises. Other from the theatre ments suit, removing equip- dder. creditors followed paid for. had not been ment which appeal that It is contended on because stripped of its con- largely
building was jurisdiction diversity based on of citizen- say, Needless to few weeks. tents within a Michigan ship, the substantive law of con- was essential to property the reclaimed However, an trols. extensive review of theatre, viability of financial highest court of the State decisions never re- Dinner Theatre Thunderbird Michigan leads me to conclude that the public. its doors to opened strike Michigan Supreme Court would not has struck the same that this court balance II. Ap- Michigan Court reliance suit, however, was not Bichler’s Richard privacy like peals, and that invasions damage inflicted solely upon founded by Appellant Bichler are those suffered viability the financial by the broadcasts on greater protection than this entitled to far cause for invasion of the theatre. The In so conclud- court’s resolution affords. upon damage was based privacy attention to ing, I first direct court’s reputation by publication Bichler's Supreme Court of the the decisions of facts, by placing embarrassing private States, not for a statement on United public eye. light Bichler a false law, controlling but substantive appeal, the defendants conceded On guidance issues for instructive to those public figure pri- was not a concеrn itself to with which this court must vate individual. assume Mr. Bichler’s claim. properly resolve per- the newscasts touched on agrees that sonal, private matters. A. Supreme attempt Court’s to recon- analysis may be summarized
The court’s
law,
the First
First,
be-
cile the law of defamation with
under
as follows:
New
first elaborated
closing
the dinner theatre was Amendment was
cause the
Sullivan,
supra,
and York
Co. v.
interest,
Times
legitimate
matter of
publisher of defamato-
the- which it held that a
Bichler’s involvement with the
because
is con-
atre, including
prob-
ry
falsehoods about a
official
Moore,
liability for
imbroglio
stitutionally protected from
and contractual
lems
proved.
actual malice is
reasonably
general privi-
defamation unless
related to the
principle was extended to cases involv-
subject,
was entitled to a This
leged
then WZZM
Curtis Pub-
ing
public figures in
defamed
privilege in defense of
qualified
Butts,
lishing
Co. v.
Second,
way
388 U.S.
claim.
because
Rosen-
L.Ed.2d 1094
Michigan law was
defeat this claim under
Metromedia, Inc., bloom v.
showing
actual
through a
(1971), plurali-
ques- S.Ct.
mation,
B.
public
since
a
official or
Gertz was
public figure and the article concerned an
a
The majority opinion, formalistic in its
public
or concern.
issue of
interest
Be-
citation of precedent and authority, “ig-
Supreme
held that
cause
Court
Gertz
the important social values which
nore[s]
(as
figure
or
not a
official
was
underlie the law of defamation. Society
Biehler),
in
bar about
conceded
the case at
pervasive
strong
has a
and
in pre-
interest
Gertz principal
in
issue decided
venting
redressing
and
upon
attacks
repu-
newspaper
broadcaster
whether
Baer,
Rosenblatt
tation.”
defamatory falsehoods
publishes
about a
S.Ct.
defense is
defendants
publish
it.
еr
plaintiff
right,
of his asserted
privilege
not a
of the defendant
to in-
48-49,
Mich.App.
128
at
1025
regarding
(1976) (no
release of information
an incho-
substantial
reason why private
Moore,
ate lawsuit between Bichler and
individual
in litigation
involved
should for-
lawsuit,
subject matter of that
or the mere
degree
feit
protection
by
afforded
defa-
possibility that advance
ticket holders
simply by
mation law
being
virtue of
drawn
policy
would be left “in the lurch.” No
courtroom).
into
requires
publicatiоn
of such informa-
I do not believe that
the Michigan Su-
precede
investigation
tion should
sufficient
preme
Appeals
Court and Court of
would
necessary
objective reporting,
or that
publisher
extend
“the
to
sanctuary” to
a.
private portion
such
of the newscast be
reports
disseminate false
about
con-
qualified privilege,
entitled to the
especially
disputes
tractual
and
dealings,
when the
report
substance of the Rummel
such a thin thread as the reasonable rela-
made
danger
pri-
substantial
to Bichler’s
tionship of
disputes
those
dealings
and
to
Curtis,
See
su-
reputation apparent.
vate
the matter
legitimate public
concern.
pra, U.S.
same
properly
ments about Bichler werе
Cantrell,
held to
judg-
Cantrell.
Based
Michigan qualified
be within the
privilege,
ment of the district court must be reversed.
than New York
the common law rather
New York
majority’s adoption of the
Times
definition of
applied.
malice must be
*20
standard, even if modified in accord-
Times
Michigan Supreme
Court
placed
has
Cantrell,
contrary
ance with
would be
higher
standard of
pub-
behavior on the
Orr,
supra,
in
recognition
this court’s
at
lisher of
facts.
“Good faith” is
1113,
Michigan Supreme
has
that the
Court
subjective, and
by
is not satisfied
the mere
long adopted the commonlaw rather than
knowledge
absence of
impropriety,
or
New York Times definition
and
disregard
reckless
impropriety.
the
thereby
quali-
has
allowed for loss of the
requires
Good faith
an honest belief in the
showing
privilege through
fied
of “bad
non-damaging
publication,
nature of the
Thus,
Michigan
under
faith” or ill-will.”
merely
knowledge
and not
absence of
law,
honestly
“If
‘be
believed
the statement
the
injury.
likelihood of
An affirmative
”
faith,’
true,
published
good
and
to be
duty
placed
Michigan
has been
me-
Orr,
See
liability.
there can be no
586 F.2d
reasonably.3
dia to behave
1113,
Supreme
Michigan
and
Court cases
at
many respects,
In
the standard that the
Weeren, supra,
also
See
cited therein.
Mich,
379
true,
“honestly
statement be
believed to be
511,
at
N.W.2d 676.
152
published
good
analogous
faith” is
Appeals
Unless
Court
negligence
to the standard of
by
majority
empow-
has
relied on
been
recently adopted by
defamation
the Ohio
Michigan Supreme
ered to overrule the
Sup-
Supreme
the case of Embers
Court
Court,
majority’s reliance on the
Court
Club,
per
Scripps-Howard
Inc. v.
Broad-
misplaced.
It is
Appeals
well estab-
Co.,
casting
22,
115,
9 Ohio
9
St.3d
OBR
lished
(1984). By defining
papers,
Memphis Publishing
(Term.
Inc.
Co. v. Nichols
349,
367 Mass.
330 N.E.2d
(1976),
161; Jacron Sales Co. v.
1978),
Foster v. Laredo News-
412;
569 S.W.2d
Sindorf
Madison
v.
Yunker
A.2d
(Tex.1976),
580,
688;
Md.
papers, Inc.
dix: A Mr. Q program And did they Kowalczyk on the air? they asked ask did. you you —isn’t put a fact Q ber? Did 4c you [*] leave [*] your telephone num- [*] [*] 4c A Yes? did, Q Kelly too? And Mr. Q telephone you *23 did What number have; listening to Mr.
A I was He leave? Kowalczyk. they you the
Q fact that told telephone Isn’t it a num- A Thunder Chicken’s by were un- ber, there, waiting made Moore statements I I was because was true? my him office for a call. I called from Chicken, that, by the Thunder A I don’t remember that. morning. way, the next was you Q they told to air Is it a fact that verification program is, that without before, Q day that you, Did endanger of the din- the credit would day you this telecast observed ner theatre? 11:00, your receive evening at did me, calls, your knowledge, Excuse any
MR. CRAGWELL: was, program with- question to air the WZZM?
Q out verification would statement, —of the truthfulness of endanger the endanger— Mr. Moore’s credit A None. 4c 4s [*] 4: 4c 4= Q anyone than you Did talk to other of the theater? phone? terms, person who answered it in those They A did not couch They said— I remember. as best emphatically It was made A I did not. attitudes, they it in? me, couch Q What terms did I feel is clear to what me that favor, nobody wanted to talk to me, as a They A asked day. to hold it. A expressed Sure.
Q The attitude was phone at answered the person who Q you any pro- Did observe or see T.V. WZZM? gram dispute relative to that that took A Yes. place? Well, I
A don’t remember the exact but, night, again, there was a newscast I myself, and said A I identified ... Jerry that came on after Moore and di- talk to the news that I wanted to confrontation, their Dick Bichler had I I told whoever talked to rector. job, and Mr. Moore was out of a he night program that I watched the to the media and went news started false, I wanted entirely was before telling some stories that were in no five I must have waited a retraction. way fact. minutes, got back on the or six she Q whomever I phone you you and told me that Just tell me what saw. Did busy, and that I program? talk to was wanted to see call I called should back. back— Yes, A I did. Q minute, we leave that Just a before Q you program? see on the What did conversation, your you did leave phone Well, caption A before the news number? was, plucked came on it was either a number, and, Yes, by the my
A
I left
chicken or a cooked chicken.
way—
Q
any display
presenta-
there
Was
Q
can
that?
You
remember
picture?
tion of a
Oh,
very
“ZZM was
familiar
yes.
A
Yes,
A
I think there was an animated
us.
picture
plucked
of a
that came
bird
portion
the screen.
majority describes this
nothing vague
“vague,”
I see
record as
Q
you
Do
remember
the exact news
it;
crystalline.
testimony
about
you
Do
remember what
broadcast?
station ever
There is no evidence that
by whom it
said?
was said and
retraction,
got
or even
baсk with
printed
I
A I am not sure.
think it was Jim
report.
truthfulness of its
Bichler about the
broadcast,
doing
Rummel that was
and,
know,
say, you
most of their
like
the station
Bichler’s conversation with
at the
people that worked
Thunderbird
broadcasts,
indicating the
after one of
night.
saw it that
a re-
false and that he wanted
traction, along
conflicting state-
with the
clearly supports
A “cooked chicken” also
Rummel, clearly
Kowalczyk
ments
re-
unobjective,
an inference of
malicious
ques-
of a material
document the existence
porting.
whether Rummel
tion of fact
Steadman
addressing the
factor
Next
report
were told
WZZM-TV
regarding
report
the manner
*24
York Times
false,
New
satisfy the
so as to
undisputed
prepared,
it is
that Bichler
was
malice.
standard of actual
by
actually contacted
Rummel
was never
clearly
point
I
out to the court
further
prior
publication of the
or the station
to
ante,
conclusion,
note
at
Furthermore,
erroneous
the re-
report.
the fact that
or oth-
on “the
of affidavits
danger
based
absence
port’s substance made substantial
evidence,”
did not contain
Curtis,
the broadcast
supra,
er
see
apparent,
reputation
to
a “cooked
to the theatre as
any
reference
at
is evi-
U.S. at
testimony
deposition
of one
chicken.” The
“investigation” after
by Rummel’s
denced
Cecil,
Appendix
in the Joint
found
Robert
to
the first
before the second broadcast
following
discus-
page
really suffering
contains
at
make sure Bichler was
fact:
question of
regarding that
reported
sion
financial difficulties.
from the
justifi-
no
have offered
Rummel and WZZM
place on Janu-
Q
that have taken
Could
publishing
on
for their insistence
cation
ary
1976?
Weeren,
supra,
allegations involving
fi- Adams noted in
Bichler’s
the imme-
prior
contacting
to
him for
public’s
nancial matters
diacy
of the
interest
in the
story.6
of the
his side
degree
investiga-
affects the
of reasonable
mediа,
required
tion
the news
with im-
Kowalczyk
Rummel
Additionally,
told
proper
eliminating
qualified
conduct
he,
corporate
partner
busi-
privilege.
ness,
knowledge
closing
until
had no
shortly
arriving at the station:
before
discussion,
course, applies
The above
Well,
just
A
he
confirmed that
equally
whether abuse
before,
things
just
you
I
said to
about
the New York Times standard
by
defined
forth,
place being
and so
closed
malice, Michigan
of actual
standard of
just
and I told him that
it was —I
good
common law malice and absence of
ago,
it
an hour
found out about
about
faith,
negligence.
or
And the same triable
urged
put
I
him
or asked
not to
genuine
facts would also create a
issue of
news, give
us some time for the
concerning
fact
material
the attitudes of
troops
get together, part
to
of the—
Rummel and WZZM toward Richard Bi-
know,
you
just ask him if he would
privacy,
regardless
chler’s
of whether
putting
delay
it on TV.
the New York Times
by
abuse is defined
Q
say
you?
he
What did
standard,
standard,
the common law malice
news,
making
A He said he was
negligence,
properly
as
modified to ad-
job.
privacy.
dress the
invasion
Q
you
And did
ask him about whether
questions
Other material
of fact exist in
any
or not he had checked this
out
jury
this case. The
should determine
way,
veracity of
the statements?
the theatre and
whether
Bichler were actu-
No,
A
if
didn’t ask him he checked it
ally having
problems,
con-
what
Myself, I
out.
didn’t know what was
provisions
tractual
existed between Bichler
going on.
cast,
and the
and whether the
tick-
advance
page
Appendix
report
Joint
at
140. The
really
et holders
were left “in
lurch.”
Kowalczyk’s
contained no reference to
sur-
Indeed,
report
ambiguous
whether the
prise
“closing.”
about the theatre’s
itself,
enough
imply
theatre
testimony
Kowalczyk’s
probably
that he
just
production,
closing
the current
told Rummel
Moore was untrust-
alleged misdoings,
as a result of Bichler’s
worthy,
attempts
get
a retrac-
proper jury question. Furthermore,
is a
story,
tiоn
false
the failure or refus-
findings
the district court's
that “the refer-
al of Rummel or WZZM to contact Bichler
ence to Bichler’s financial condition was not
airing
story,
before
substantial dan-
highly
made
offensive nor
‘for its own
reputation
ger
privacy apparent
”
just
clearly question
sake’
as
of mate-
face,
story’s
possibility
of excessive
jury,
defamatory
rial fact for the
is the
publication, Kowalczyk’s
knowledge
lack of
light”
or “false
nature of the broadcast.
closing,
possi-
that the theatre was
Mich,
Steadman,
53-54,
supra,
See
at
ble reference to a “cooked chicken” all
Mich,
580; Timmis, supra,
288 N.W.2d
create inferences
the existence
supporting
748; Weeren,
supra,
89 N.W.2d
genuine
of a
issue of material fact as to
Mich,
493, 503-04,
511, 513-14,
even as defined in New York Times
Furthermore,
Co.
Sullivan.
as Justice
676.7
law,
publication
publication
Under
excessive
issue of malice
excessive
Timmis,
supports an inference of malice.
su
jury
determination
at trial.
*25
371-72,
pra,
Mich. at
When
748.
false,
report
Bichler told
station that the
majority
It is ironic that
would refer to
retraction,
the station was not
demanded
grounds,"
Weeren as “reversed on other
for the
report
then free to air the
without substantial
inappropriateness
summary judgment
of
investigation,
additional
have done so
involving defamatory publications
cases
and in-
Thus,
anyway.
deposition
Bichler's
also raises
seriously dispute
no more than
“reflects
our basic
cannot
con-
efforts of Rummel to
cept
dignity
the one-sided
of
essential
and worth of
attempt
“make the news”
verify his
being
every
concept
human
at
—a
regarding
inference of malice
raises an
any
system
root of
decent
of ordered
reports
re-
both the truth
liberty.
protection
private
per-
of
privacy.
Nu-
ports’ invasion of
protection
itself,
sonality, like the
of life
present
of material fact are
merous issues
primarily to the
is left
individual States
case,
properly should be sub-
in this
under the Ninth and Tenth Amendments.
jury.
to the
mitted
right
not mean that
But this does
any
recognition by
entitled to
less
this
IV.
Court as a basic of our constitutional
Finally,
compelled
to address an
am
Baer,
Rosenblatt
system.”
U.S.
implicated by the result of
important issue
669, 679,
S.Ct.
15 L.Ed.2d
[86
597]
decision which arises under our
the court’s
(1966) (concurring opinion).
States Constitution. The con-
own United
See also
at 3008.
418 U.S.
S.Ct.
ante,
majority’s opinion,
clusion to
Brandéis,
Right
to Priva-
Warren and
states:
cy, 4 Harv.L.Rev. 193
And our
long recognized the
Michigan has
...
government, by
of
coordinate branches
desirability
public
comment on issues
Freedom of Information Act and the Priva-
legitimate public interest. This is the
cy
displayed sensitivity
Act of
have
for its common law communica-
reason
But
right
privacy.
Galloway,
to this
By adopting the constitu-
privilege.
tion
cf.
Privacy
Being Stripped
malice How Your
Is
measuring
tional standard
private
injury
individual claims
Away, 96:17 U.S. News & World
Rep.
when a
publication or broadcast about a
30, 1984).
(April
matter of
interest Mich-
privileged
Constitution,
our Federal
the state
Under
recognition
further
to the
igan
given
has
courts,
not, through its
free
should
play
ideas in an
necessity for a free
thereby protect
strike the balance and
society.
open
news media’s unreasonable invasions into
holding
Michigan privilege
citizens,
private
dealings
of its
alleged by Mr. Bichler
injury
to the
extends
barrier
erection
insurmountable
invasion
as a result of
of actual malice. Gertz makes
it clear that
into his
contractual af-
news media
necessity
play
even “the
for a free
of ideas
fairs,
ignores the fact that
the court
open society”
point give
in an
must
some
right
privacy is
individual’s
embraced
protection
way
right
to the individual’s
by our own
only by
but also
injury
from and redress of
to his
govern-
system of
Federal constitutional
reputation.
involving public
In cases
defa-
Gris-
Douglas
As
stated
ment.
Justice
mation,
qualified privi-
potential loss of the
Connecticut,
wold v.
lege thrоugh
negligence or
abuse based on
(1965):
1678, 1681,
vasions of
is the
*26
“uninhibited,
robust,
long
they
impose
do not
liabili- value to
... so
as
wide-
fault,
legitimate
define
ty
open”
without
States
debate on issues of
New
appropriate
standard
York Times Co. v. Sulli-
for themselves
concern.
van,
liability
publisher or
U.S.,
S.Ct.,
for a
broadcaster
at
at 721.
injurious
defamatory falsehood
to a
judgment
reverse the
of the dis-
private individual.
by jury.
trict and remand the case for trial
at 3010. For as
This competing con-
boundary between recognizes here.
cerns involved It
strength
legitimate state interest
compensating private individuals for
reputation, yet shields
wrongful injury to
Judy HAMILTON,
al.,
et
press
media from the
and broadcast
Plaintiffs-Appellants,
rigors
liability
of strict
for defamation.
v.
where, as
At least this conclusion obtains
here,
defamatory
the substance of the
BEAN,
al.,
Robert
et
danger
‘makes substantial
statement
Defendants-Appellees.
[quoting Curtis
reputation apparent.’
No. 83-5613.
Butts, supra,
Publishing
Co.
dia, jury’s origi- and that the verdict in the proper
nal trial and should have been creating liability
reinstated even if without
fault.
Gertz may properly for the be relied on liability provides
shield from it strict however, majority opinion,
the media. The sword,
has converted the shield to a to be press,
wielded absent
disregards private aspects individ- an
ual’s life tan- which bear some unfortunate
gential legiti- relationship to the matter of
mate armament interest. Such Society
one-sided and ill-conceived. has not allegedly
benefitted false revelation Bichler, concededly private
that Richard
individual, financially contractually By recognizing
unreliable. case, great gone
this has
lengths protect information of such little
