Community Medical Services of Clearfield Inc. v. Local 2665, American Federation of State, County and Municipal Emp., AFL-CIO

• Decision Date: 13 November 1981
• Docket Number: AFL-CIO
• Citation: 292 Pa.Super. 238,437 A.2d 23
• Parties: COMMUNITY MEDICAL SERVICES OF CLEARFIELD INC., and American Medical Affiliates, a Corporation, Appellants, v. LOCAL 2665, AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES,, an Unincorporated Association, and American Federation of State, County and Municipal Employees,, a National Unincorporated Association, and American Federation of State, County and Municipal Employees, Council 13,, a State Unincorporated Association and District Council 85 of the American Federation of State, County and Municipal Employees,.
• Court: Pennsylvania Superior Court

Page 23

437 A.2d 23

292 Pa.Super. 238

COMMUNITY MEDICAL SERVICES OF CLEARFIELD INC., and American Medical Affiliates, a Corporation, Appellants, v. LOCAL 2665, AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO, an Unincorporated Association and American Federation of State, County and Municipal Employees, AFL-CIO, a National Unincorporated Association and American Federation of State, County and Municipal Employees, Council 13, AFL-CIO, a State Unincorporated Association and District Council 85 of the American Federation of State, County and Municipal Employees, AFL-CIO.

Superior Court of Pennsylvania.

Submitted May 22, 1981.

Filed Nov. 13, 1981.

William H. Bishop, Philadelphia, for appellants.

Jonathan Walters, Philadelphia, for appellees.

Before CERCONE, President Judge, and MONTGOMERY and VAN der VOORT, JJ.

CERCONE, President Judge:

We consider today an order denying appellants' motion for summary judgment, but granting appellees' like motion, in a libel action instituted by appellants for allegedly defamatory statements contained in two strike bulletins published and circulated by appellees in connection with a labor dispute. We now affirm.

Appellants operate the Clear Haven Nursing Home in Clearfield. The facility was originally run by the County of Clearfield but the County relinquished its responsibility for it to appellants. Appellees are various affiliated labor organizations which represent the non-professional staff at the nursing home in collective bargaining. When the collective bargaining agreement which covers the non-professional employees at the nursing home expired on December 31, 1976 a labor dispute arose and the workers went out on strike. Picket lines were set up outside the nursing and on January 11, 1977 the Clearfield County court issued an ex parte temporary restraining order prohibiting mass picketing and ordering the striking employees back to work. The next day a consent order issued which dissolved the back-to-work order but limited the number of permissible pickets. A new collective bargaining agreement was eventually reached in April of 1977, but not before the publication of the two allegedly defamatory strike bulletins. Appellants filed the instant action seeking damages for the alleged libel. Appellees counterclaimed seeking damages for malicious abuse of process, alleging as the basis for the claim the ex parte temporary restraining order issued January 11. Both sides eventually moved for summary judgment on the original action as well as the counterclaim. In addition A.F.S.C.M.E. International and A.F.S.C.M.E. Council 13 moved for summary judgment claiming they could not be held responsible for the local union's actions. ¹ The court ruled in favor of the unions on the libel action and in favor of the employer-appellant on the malicious abuse of process counterclaim. From the order granting appellees' motion for summary judgment on the original claim the employer-appellants bring this appeal. ²

I.

We are presented today with no ordinary libel case. The fact that the alleged libel arose in connection with a labor dispute gives rise to considerations of federal law not normally to be found in such actions. In New York Times v. Sullivan, 376 U.S. 254, 84 S.Ct. 710, 11 L.Ed.2d 686 (1964) the United States Supreme Court held that in order for a public official to recover damages for libel the official must prove that the defendant published the defamatory statement with reckless disregard of, or knowledge of its falsity. See also Fox v. Kahn, 421 Pa. 563, 221 A.2d 181 (1966). In Linn v. United Plant Guard Workers of America, 383 U.S. 53, 86 S.Ct. 657, 15 L.Ed.2d 582 (1966), the Court adopted the New York Times "actual malice" standard for use in defamation cases arising out of labor disputes noting, however, that the use of that standard was not constitutionally compelled. Linn held that the National Labor-Management Relations Act (NLRA), as amended, 61 Stat. 136, 29 U.S.C. § 141 et seq., pre-empted the power of the state courts to award state remedies in labor dispute defamation cases unless the plaintiff pleads and proves both "actual malice" and damages, even if the alleged defamatory language would be actionable per se under state tort law. Cf. Old Dominion Branch No. 946, Nat'l Ass'n of Letter Carriers v. Austin, 418 U.S. 264, 94 S.Ct. 2770, 41 L.Ed.2d 745 (1974); San Diego Building Trades Council v. Garmon, 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775 (1959). We are asked to determine the correctness of the lower court's grant of summary judgment for the defendants-appellees in a case where Linn controls the cause of action.

Ordinarily, summary judgment should only be entered if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there exists no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. See Pa.R.C.P. 1035. And see Davis v. Pennzoil Co., 438 Pa. 194, 264 A.2d 597 (1970); Bollinger v. Palmerton Area Com. Endeavor, Inc., 241 Pa. Superior Ct. 341, 361 A.2d 676 (1976). Furthermore, summary judgment is only proper in cases which are clear and free from doubt as to the existence of a disputed factual question. See Mallesky v. Stevens, 427 Pa. 352, 235 A.2d 154 (1967); Toth v. Philadelphia, 213 Pa. Superior Ct. 282, 247 A.2d 629 (1968). In ruling on a motion for summary judgment the court must accept as true all well-pleaded facts in the non-moving party's pleadings, as well as admissions on file, giving to them the benefit of all reasonable inferences to be drawn therefrom. See Hankin v. Mintz, 276 Pa. Superior Ct. 538, 419 A.2d 588 (1980); Ritmanich v. Jonnel Enterprises, Inc., 219 Pa. Superior Ct. 198, 280 A.2d 570 (1971). The record as a whole should be examined in the light most favorable to the party opposing the motion and all doubts as to the existence of a genuine issue about a material fact must be resolved in that party's favor, that is, against the entry of summary judgment. See Bowman v. Sears, Roebuck & Co., 245 Pa. Superior Ct. 530, 369 A.2d 754 (1976); Husak v. Berkel, Inc., 234 Pa. Superior Ct. 452, 341 A.2d 174 (1975); Schachter v. Albert, 212 Pa. Superior Ct. 58, 239 A.2d 841 (1968). And see Hankin v. Mintz, supra; Ritmanich v. Jonnel Enterprises, Inc., supra. In disposing of such a motion the court's function is not to decide issues of fact, but solely to determine whether there are material issues of fact to be decided. See Hankin v. Mintz, supra; Ritmanich v. Jonnel Enterprises, Inc., supra.

This would appear to be the first case to consider summary judgment in a labor-related libel case in the Commonwealth. There have been at least two recent cases, however, which considered a lower court's grant of summary judgment in connection with "public official" defamation actions. We refer to Curran v. Philadelphia Newspapers, Inc., 261 Pa. Superior Ct. 118, 395 A.2d 1342 (1978) (affirmed by an equally divided Court) ³ and Brophy v. Philadelphia Newspapers, Inc., 281 Pa. Superior Ct. 588, 422 A.2d 625 (1980). ⁴ Curran and Brophy figure highly in the instant discussion because of what they have to say about the summary disposition of New York Times standard defamation cases. After careful reading of these two cases it becomes clear that this Court is of the opinion that the summary disposition of New York Times defamation cases differs in no way from the manner of disposing of other cases in like procedural posture. ⁵ Nonetheless, for purposes of clarification we quote two passages from Nader v. deToledano, 408 A.2d 31 (D.C.App.1978). The first deals with motions for summary judgment and burdens of proof.

A party satisfies his burden of production with respect to an issue material to his case when he has made out a "prima facie" case as to such issue-i. e., a sufficient quantum of evidence which, if credited, would permit judgment in his favor unless contradicted by credible evidence offered by the opposing party. Bailey v. Zlotnick, 77 U.S.App.D.C. 84, 85, 133 F.2d 35, 36 (1942) (motion for directed verdict). The establishment of a prima facie case by the party bearing the burden of persuasion as to an issue shifts the burden of producing contradictory evidence to the adverse party. The burden of evidentiary production shifts from side to side during the course of the trial as each party introduces evidence sufficient to satisfy the test. See generally, 31A C.J.S. Evidence, supra, § 110 at 184-88.

The same rules are applicable in a motion for summary judgment. On such motion the well-settled rule is that the moving party bears the burden of proving that no genuine issue as to any material fact exists and that he is entitled to judgment as a matter of law. The movant may discharge his burden of proof by demonstrating that if the case proceeded to trial his opponent could produce no competent evidence to support a contrary position. 10 Wright & Miller, (Federal Practice and Procedure: Civil) § 2727, at 531. A prima facie showing by the movant for summary judgment-i. e., the production of enough evidence to demonstrate such party's entitlement to a judgment if evidence were uncontroverted at trial-shifts the burden of producing evidence to the party opposing the motion. Summary judgment should be granted to the movant unless the opposing party offers competent evidence admissible at trial showing that there is a genuine issue as to a material fact. Id. at 536-37.

Once the movant has made the requisite showing,

the issue of material fact required by Rule 56(c) to be present to entitle (the opposing) party to proceed to trial is not required to be resolved conclusively in favor of the party asserting its existence; rather, all that is required is that sufficient evidence supporting the claimed factual dispute be shown to require a jury or judge to resolve the parties' differing...