Smith v. Des Moines Public Schools, 00-2658

Decision Date09 April 2001
Docket NumberNo. 00-2658,00-2658
Citation259 F.3d 942
Parties(8th Cir. 2001) RONALD KEITH SMITH, APPELLEE, v. DES MOINES PUBLIC SCHOOLS, APPELLANT. Submitted:
CourtU.S. Court of Appeals — Eighth Circuit

Appeal from the United States District Court for the Southern District of Iowa

[Copyrighted Material Omitted] Before McMILLIAN and Loken, Circuit Judges, and Goldberg,1 Judge.

McMILLIAN, Circuit Judge

Des Moines Independent Community School District ("the District") appeals from a final judgment entered in District Court2 for the Southern District of Iowa, following a jury verdict in favor of Ronald K. Smith, finding the District liable for defamation. Smith v. Des Moines Public School System, No. 4-98-CV-90368 (S.D. Iowa June 1, 2000). For reversal, the District argues that (1) the district court erred in denying its motion for judgment as a matter of law because the allegedly defamatory statements were true or substantially true, and (2) there was insufficient evidence for a reasonable jury to conclude that actual malice existed. For the reasons discussed below, we affirm the judgment of the district court.

Jurisdiction

Jurisdiction was proper in the district court based upon 28 U.S.C. § 1367(a).3 Jurisdiction on appeal is proper based upon 28 U.S.C. § 1291. The notice of appeal was timely filed pursuant to Fed. R. App. P. 4(a).

Background

The following facts are stated in the light most favorable to the jury's verdict. The District hired Smith as the director of technology systems in July 1995. In that position, he reported to Pat Moran, the associate superintendent of management services, and supervised three employees, including Donna Pittman, an executive secretary, and Jacquelyn Seymour, an outside project manager specialist hired by Smith. According to Smith, the technology department was in disarray when he arrived and he exposed serious problems and initiated many controversial changes, which were met with heated resistance, especially by the District's superintendent, Gary Wegenke. At Moran's request, his executive secretary, Linda Dinsdale, along with Smith's secretary, Pittman, began keeping secret files on Smith, which documented the whereabouts and work activities of Smith and Seymour, their phone messages, calendars, correspondence, overheard phone conversations, and other meetings. Smith discovered the existence of these files on June 30, 1996.

On July 2, 1996, Smith met with Wegenke and asked about the files. Smith suspected that the purpose of the files was to make him the scapegoat for the technology department's failures. He also thought that they indicated racial animus toward Seymour, an African-American. When Wegenke challenged Smith to produce the files, Smith went to retrieve them from the file cabinet where the files were kept between Smith's office and Dinsdale's desk. Dinsdale tried to stop him and the two had physical contact. Smith contends that he accidentally bumped into Dinsdale as she tried to prevent him from reaching the files. Dinsdale received a bruise on her arm about 2-3 inches in diameter. Smith obtained the files and returned to his office to show them to Wegenke, without mentioning the incident.

Dinsdale later complained to Wegenke that Smith hit her when he retrieved the files, and the District began an internal investigation, overseen by its attorney, Peter Pashler. Smith and two school board members, Suzette Jensen and John Phoenix, characterized this investigation as a "witchhunt," motivated by Wegenke's desire to terminate and defame Smith. On July 3, 1996, Smith was placed on administrative leave pending the outcome of the investigation. On July 4, 1996, Dinsdale filed a complaint with the Des Moines Police Department alleging that Smith assaulted her. The District was not involved in her criminal complaint in any official capacity, but did refer Dinsdale to an attorney and pay her attorney's fees. Smith believed that the criminal charges were used as leverage against him to persuade him to resign.

Two District employees witnessed the incident and related the following accounts: (1) Mike Tidman told an investigating police officer that he saw Smith raise his left arm and push Dinsdale away, and (2) Lynne Harrison told the police officer that Smith "used his body like to deflect or shove away" as he was standing up. Smith testified that he accidentally bumped into Dinsdale as he was retrieving the files and righting himself as he stood up.

Smith was charged with assault on July 11, 1996, was arrested on July 12, 1996, and was released the same day after posting bond. On August 22, 1996, Dinsdale signed a confidential settlement agreement and mutual release, releasing Smith, from any further liability in connection with the July 2 incident. On August 23, 1996, the prosecutor filed a notice of intent not to prosecute on the basis that the victim did not want to pursue prosecution.

On August 26, 1996, the District gave Smith a general release and separation agreement and told him he must either sign both documents or face termination proceedings. Smith signed the release, in which he agreed to resign voluntarily and not sue the District. Smith's resignation was approved at a District board meeting on August 27. After the vote, in open session, Wegenke read a statement he had prepared with the assistance of the District's counsel, which included the following statements: (1) "the incident that took place in early July in the technology offices is regrettable. As I said to an assembly of central office staff following the incident, I will not tolerate an unsafe workplace for our employees," and (2) "the action of the District's lawyers and Mr. Smith's lawyers have been focused on reaching a compromise settlement, a settlement that has been motivated on the District's side of the issue of employee safety in the workplace." At trial, Wegenke testified that these statements were made in good faith, for the purpose of addressing workplace safety, and that he did not intend to slander Smith. After hearing these statements, Smith attempted to revoke the settlement agreement, pursuant to a section of the agreement enabling him to revoke within 7 days. In a meeting between counsel from both sides, Pashler, the District's counsel, produced a photograph allegedly taken of Dinsdale's bruised arm, which prompted Smith to reconsider revoking the settlement agreement because he feared that the District might bring future criminal charges against him.

Following Smith's resignation, despite much resistance from Wegenke, school board member Suzette Jensen initiated an audit of the technology department, which confirmed Smith's assessment of the District's technology problems. The audit was released in November 1996 and blamed Smith for the technology department's problems. Smith, Jensen, and another technology department employee believed the audit was designed to make Smith the District's scapegoat for its technology problems.

In July 1998, Smith filed this action pro se in the United States District Court for the Southern District of Iowa. In September 1999, he filed an amended complaint with the help of counsel. Following various pretrial and trial motions, the ten originally-filed counts against the District, including some arising under federal law, were reduced to one state law count of defamation. The district court retained supplemental jurisdiction over the remaining Iowa defamation claim pursuant to 28 U.S.C. § 1367(a). The matter proceeded to a four-day jury trial. The jury found that the District committed slander per se against Smith and awarded Smith $250,000 in compensatory damages. The District moved for judgment as a matter of law or, in the alternative, for a new trial. The district court denied the motion on June 1, 2000. This appeal followed.

Discussion
Standard of Review

The District first argues that the district court erred in denying its motion for judgment as a matter of law because the allegedly defamatory statements were true or substantially true. We review the denial of a motion for judgment as a matter of law de novo, applying the same standard as the district court. Denesha v. Farmers Ins. Exch., 161 F.3d 491, 497 (8th Cir. 1998) (Denesha). Like the district court, we consider whether sufficient evidence exists to support the jury's verdict. See Lundell Mfg. Co. v. ABC, 98 F.3d 351, 355 (8th Cir. 1996) (Lundell), cert. denied, 522 U.S. 810 (1997). We will defer to a jury verdict unless, "after viewing the evidence in the light most favorable to the verdict, we conclude that no reasonable juror could have returned the verdict for the non-moving party." Denesha, 161 F.3d at 497 (quoting Ryther v. KARE 11, 108 F.3d 832, 836 (8th Cir. 1997) (en banc)). In considering this issue, we must: (1) examine the evidence in the light most favorable to Smith as the non-moving party, (2) resolve all conflicts in favor of Smith, (3) assume that all facts which Smith's evidence tended to prove are true, (4) give Smith the benefit of all inferences that may reasonably be drawn in his favor, and (5) affirm the denial of the District's motion unless it is unreasonable to sustain Smith's position. Id. We review the denial of a new trial for abuse of discretion, and will reverse the district court's ruling only if "'the jury's verdict were against the great weight of the evidence so as to constitute a miscarriage of justice.'" Id. (quoting Pulla v. Amoco Oil Co., 72 F.3d 648, 656 (8th Cir. 1995)).

Defense of Truth or Substantial Truth

Iowa substantive law applies to the issue of whether substantial truth serves as a defense in a defamation action. See In re IBP Confidential Bus. Documents Litigation, 797 F.2d 632, 639 (8th Cir. 1986). In Iowa, substantial truth does serve as a defense in a defamation action. See Behr v. Meredith Corp., 414 N.W.2d 339, 342 (Iowa 1987) (Behr). As a result, it is "[not] necessary for a libel defenda...

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