Hunt v. University of Minnesota

Decision Date15 January 1991
Docket NumberNo. CX-90-1433,CX-90-1433
Parties65 Ed. Law Rep. 525, 6 IER Cases 150 Shirley HUNT, Appellant, v. UNIVERSITY OF MINNESOTA and Stan Kegler, individually, Respondents.
CourtMinnesota Court of Appeals

Syllabus by the Court

Defamatory statements made in an employment context are conditionally privileged. In addition, defamatory statements which cannot be proven false or which cannot reasonably be interpreted as stating facts are not actionable. The trial court has the discretion to deny an amendment to a complaint which alleges a groundless claim.

Affirmed.

James V. Roth, Lawrence P. Schaefer, Leonard, Street and Deinard, Minneapolis, for appellant.

Rita A. McConnell, Minneapolis, for respondents.

Considered and decided by RANDALL, P.J., and FORSBERG and SHORT, JJ.

OPINION

SHORT, Judge.

This defamation action arose when Stanley Kegler, the University of Minnesota's Vice President for Institutional Affairs, gave an unfavorable reference to a prospective employer of Shirley Hunt. On appeal from an award of summary judgment in favor of the University and Kegler, Hunt argues the trial court erred in (1) ruling there was no jury issue on malice and Kegler's statements were conditionally privileged because they were given in the context of a job reference; (2) concluding Kegler's statements were constitutionally protected free speech; and (3) denying her motion to amend her complaint to include claims for tortious interference with prospective business relations and punitive damages. We disagree and affirm.

FACTS

From May of 1984 until October of 1986, Shirley Hunt worked for the University of Minnesota as coordinator for external relations and assistant to the vice president for the Institute of Agriculture, Forestry and Home Economics (IAFHE). Hunt worked closely with IAFHE Vice President Richard Sauer to develop and carry out Institute-wide programs. Hunt also represented the IAFHE at the state legislature.

While Hunt was employed at the University, Stanley Kegler was the University's Vice President for Institutional Relations. Kegler was the chief lobbyist for the University at the state legislature. Kegler and Hunt did not work together in the lobbying efforts. In a memo to Sauer dated May of 1985, Hunt wrote her relationship with Kegler needed improvement. She believed Kegler ignored her presence at the legislature. For example, Kegler neglected to give Hunt a copy of a newsletter which he distributed in a committee meeting room. Kegler also neglected to give her a candy cigar which he was distributing to celebrate his daughter's birth. Nonetheless, Hunt admitted Kegler had no particular animosity towards her. At the end of the 1986 session, Hunt even told Sauer her relationship with Kegler had greatly improved.

Several university officials told Sauer they disliked Hunt's work. In early 1986, Sauer decided not to renew Hunt's contract for the following year. Sauer told Hunt she was being released because of differences in their personal styles, one of which was Hunt's lack of warmth. Because of Hunt's efforts during the 1986 legislative session, however, Sauer gave her a positive recommendation.

In May of 1986, Hunt applied for a position as Intergovernmental Coordinator with Hennepin County. Hunt knew the position was a political appointment. By October of 1986, Hunt (a republican) and Jim Stabler (a democrat) were the two finalists for the position. At that time, the partisan composition of the Hennepin County Board was four democrats to three republicans. Three democrats supported Stabler, three republicans supported Hunt and one democrat, Commissioner Mark Andrew, leaned toward Hunt. Andrew warned Hunt the hiring process had become politicized and the Board might have to compromise to fill the position.

Eventually, someone proposed two co-coordinators be hired. This unpopular proposal was laid over until the Hennepin County board meeting in January of 1987. But by the end of December, Andrew learned from several sources that his support of Hunt was not well-founded. He discovered Hunt's contract with the University had not been renewed, and decided to check her references. Hunt believed the Board had decided to appoint Stabler and contacted her references to find reasons to support its decision.

On January 5, Andrew called Kegler to ask his opinion of Hunt's performance at the legislature. Although Hunt had not listed Kegler as a reference, Kegler and Andrew had been acquaintances for approximately 10 years and Andrew trusted Kegler. Andrew does not remember the exact words which Kegler used to describe Hunt's performance, but does recall Kegler's opinion was not complimentary. Andrew repeated Kegler's assessment of Hunt's work to a Hennepin County staff member who then disseminated the information to the rest of the board.

Hunt quickly learned from one of her supporters Kegler had given her an unsatisfactory reference. On the evening of January 5, Hunt called Kegler to find out what he had told Andrew. Kegler said he told Andrew that Hunt had trouble dealing with legislators because she lacked warmth, was insincere, and had no sense of integrity. Kegler gave Andrew this information in confidence. Kegler maintains he also told Andrew he rarely saw Hunt at work and other people could give Andrew a more accurate assessment of Hunt's performance.

At the January 6 meeting, the Hennepin County board voted along party lines to appoint Jim Stabler as Intergovernmental Coordinator. A few days later, the Board hired Hunt on a contract basis to lobby for the county at the state legislature. Hunt received the same salary as Stabler, but no benefits. With the approval of the County Board, Hunt was hired as an administrative assistant by the Hennepin County Library System in October of 1987 and is currently employed in that position.

In late 1988, Hunt served this defamation lawsuit on the University and Stan Kegler. One year later, Hunt moved to amend her complaint to allege tortious interference with prospective business relations and a claim for punitive damages. The University and Kegler moved for summary judgment. The trial court denied the motion to amend as groundless and granted summary judgment for the University and for Kegler.

ISSUES

I. Did the trial court err in determining there was no jury issue on malice?

II. Did the trial court err in concluding Kegler's statements were constitutionally protected free speech?

III. Did the trial court err in denying Hunt's motion to amend her complaint to allege a claim of tortious interference with prospective business relations and a claim for punitive damages?

ANALYSIS

On appeal from a grant of summary judgment, we determine whether any genuine issues of material fact exist and whether the trial court erred in its application of the law. Offerdahl v. University of Minn. Hosps. and Clinics, 426 N.W.2d 425, 427 (Minn.1988). This court views the evidence in the light most favorable to the nonmoving party. Id. However, we need not defer to the trial court's decision regarding a legal issue. Frost-Benco Elec. Ass'n v. Minnesota Pub. Utils. Comm'n, 358 N.W.2d 639, 642 (Minn.1984). Further, in a case involving the first amendment, an appellate court has a duty to independently examine the whole record to ensure "the judgment does not constitute a forbidden intrusion on the field of free expression." New York Times Co. v. Sullivan, 376 U.S. 254, 285, 84 S.Ct. 710, 729, 11 L.Ed.2d 686 (1964).

Hunt maintains the trial court erred in granting summary judgment for respondents on her defamation claim because Kegler's malicious, slanderous statements were actionable. We disagree. The trial court properly granted summary judgment for respondents even if Kegler's comments were defamatory and false because Kegler's statements were (1) qualifiedly privileged because made in an employment reference context and (2) non-actionable opinions.

I.

Hunt argues the trial court erred by finding Kegler's remarks were qualifiedly privileged. We disagree. The trial court properly found Kegler's statements were a conditionally privileged employment reference and the evidence of malice was insufficient to submit this issue to the jury.

A defamatory statement is not actionable if the comment was conditionally privileged and the privilege was not abused. Lewis v. Equitable Life Assurance Soc'y, 389 N.W.2d 876, 889 (Minn.1986). To be privileged, a statement must be made upon a proper occasion, from a proper motive, and based upon reasonable or probable cause. Id. Whether a qualified privilege exists in a particular context is a question of law. Id. An appellate court may examine the facts supporting the defamatory allegations to determine if they were based on reasonable grounds. Wirig v. Kinney Shoe Corp., 461 N.W.2d 374, 380 (Minn.1990).

Qualified privileges are recognized because "statements made in particular contexts or on certain occasions should be encouraged despite the risk that the statements might be defamatory." Lewis, 389 N.W.2d at 889. Employment references are conditionally privileged because the public interest is best served by encouraging accurate assessments of an employee's performance. Stuempges v. Parke, Davis & Co., 297 N.W.2d 252, 257 (Minn.1980). Also, when an employee applies for a promotion, judgmental statements from both the employee's peers and supervisors must be expected and freely permitted. Gernander v. Winona State Univ., 428 N.W.2d 473, 476 (Minn.App.1988).

A plaintiff must prove common law malice to overcome a conditional privilege. Lewis, 389 N.W.2d at 889. Common law malice is "actual ill will, or intent to causelessly and wantonly injure the plaintiff." Karnes v. Milo Beauty and Barber Supply Co., 441 N.W.2d 565, 568 (Minn.App.1989), pet. for rev. denied (Minn. Aug. 15, 1989). Malice may be shown by extrinsic evidence of personal ill will, or by intrinsic evidence such as the exaggerated language of the statement...

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