Infinite Energy Inc. v. Pardue
| Decision Date | 30 June 2011 |
| Docket Number | No. A11A0293.,A11A0293. |
| Citation | 713 S.E.2d 456,310 Ga.App. 355 |
| Parties | INFINITE ENERGY, INC.v.PARDUE et al. |
| Court | Georgia Court of Appeals |
OPINION TEXT STARTS HERE
Morris, Manning & Martin, Marguerite Elizabeth Patrick, Donald A. Loft, Atlanta, for appellant.Carlock, Copeland & Stair, Johannes S. Kingma, William Dudley Newcomb III, Taylor, English & Duma, Sean Richard Smith, Atlanta, for appellees.MIKELL, Judge.
Infinite Energy, Inc., a Florida-based natural gas marketer, filed a defamation action against attorney David L. Pardue, the law firm of Hartman, Simons, Spielman & Wood, LLP (“HSSW”), and Poston Communications, LLC, alleging that the defendants issued a press release that falsely accused Infinite Energy of having “deceived, cheated and misled” its customers. The trial court granted the defendants' motions to dismiss, concluding, inter alia, that the statements were not actionable. Infinite Energy appeals. Because the trial court failed to apply the proper guidelines in evaluating the defendants' motions to dismiss, and the complaint states a claim for defamation, we reverse.
1. Our Supreme Court has established the following guidelines applicable to motions to dismiss brought pursuant to OCGA § 9–11–12(b)(6) for failure to state a claim upon which relief may be granted: “A motion to dismiss should only be granted if the allegations of the complaint, construed most favorably to the plaintiff, disclose with certainty that the plaintiff would not be entitled to relief under any state of provable facts.” 1 In other words, “[i]f, within the framework of the complaint, evidence may be introduced which will sustain a grant of the relief sought by the claimant, the complaint is sufficient and a motion to dismiss should be denied.” 2
A trial court's ruling on a motion to dismiss for failure to state a claim is subject to de novo review.3 In assessing the motion, we may consider exhibits attached to and incorporated into the pleadings. 4 Here, the allegedly defamatory press release is attached to the complaint, and it states that on November 18, 2008, Pardue, then a member of HSSW, filed suit in federal court on behalf of three Korean–American dry cleaning business owners, alleging that Infinite Energy defrauded them “through exorbitant prices locked into three-year contracts signed following Hurricane Katrina.” The suit sought class-action status on behalf of the Korean Cleaners Association of Atlanta (“KCAA”). The press release quotes Pardue as follows:
Normally I defend class actions but I decided to help the dry-cleaning business community recover their losses in what is a clear case of wrongdoing. Infinite engaged in deliberate misinformation and scare tactics to lock the KCAA into high fixed rates when it was clear that the Katrina effect on gas prices was temporary. It is determined to reap illegal profits and to extract every penny possible from customers it has deceived, cheated and misled.The press release was picked up by various publications, and, according to the complaint, Poston tried to have it published in the Gainesville Sun, the newspaper in Florida where Infinite Energy is headquartered, although it has no customers in Gainesville.
A cause of action for defamation consists of four elements: “(1) a false and defamatory statement concerning the plaintiff; (2) an unprivileged communication to a third party; (3) fault by the defendant amounting at least to negligence; and (4) special harm or the actionability of the statement irrespective of special harm.” 5
The second element is not at issue here. As to the first element, the trial court concluded that the defendants' statements could not reasonably be interpreted as stating or implying defamatory facts about Infinite Energy. The court ruled that the statements were mere expressions of opinion that cannot be proven false. Infinite Energy argues that the trial court erred in so ruling, and we agree.
Slander or oral defamation includes “[m]aking charges against another in reference to his trade, office, or profession, calculated to injure him therein.” 6 “This type of defamation is actionable per se and damage is inferred.” 7 The complaint herein alleges that the defendants falsely stated that Infinite Energy “engaged in deliberate misinformation” and “deceived, cheated and misled” its customers by charging them “artificially inflated rates after Hurricane Katrina.” The complaint alleges that Infinite Energy has suffered damage to its character, reputation, and business, as a result of the statements. It is undisputed that the statements were published. These allegations stated a claim for slander per se.8
Contrary to the defendants' contention, these statements cannot be categorized as mere expressions of opinion that are incapable of being proved false.
It is true that a defamation action will lie only for a statement of fact. This is because a statement that reflects an opinion or subjective assessment, as to which reasonable minds could differ, cannot be proved false. As a result, a plaintiff who claims that a published opinion defamed him will generally be unable to carry his burden of proving the essential element of falsity.9
As our Supreme Court has explained, however,
[t]here is ... no wholesale defamation exception for anything that might be labeled “opinion.” An opinion can constitute actionable defamation if the opinion can reasonably be interpreted, according to the context of the entire writing in which the opinion appears, to state or imply defamatory facts about the plaintiff that are capable of being proved false.10
To the extent that Infinite Energy bases its defamation claim on published statements that it deceived, cheated, and misled its customers by overcharging them, the claim is actionable. Given that market rates for natural gas are quantifiable, the defamatory statements are capable of being proved false. Of course, whether the statements are actually true or false is a question for the jury.11 The trial court erred in concluding otherwise.
2. Having determined that the complaint sufficiently pled the first element of a defamation claim, we turn to the element of fault. This element necessitates a determination of whether Infinite Energy is a private figure, or, as the trial court found, a public figure. To recover on a defamation claim, a plaintiff who is a private person need only prove that the defendant acted with ordinary negligence, whereas a plaintiff who is a public figure must prove by clear and convincing evidence that the defendant acted with actual malice.12
Public figures are classified as either “general purpose,” meaning for all purposes, or “limited purpose,” meaning for a limited range of issues. As the United States Supreme Court has explained,
those who attain [public figure] status have assumed roles of special prominence in the affairs of society. Some occupy positions of such persuasive power and influence that they are deemed public figures for all purposes. More commonly, those classed as public figures have thrust themselves to the forefront of particular public controversies in order to influence the resolution of the issues involved. In either event, they invite attention and comment.13
“Absent clear evidence of general fame or notoriety in the community, and pervasive involvement in the affairs of society,” 14 a plaintiff should not be deemed a public figure for all purposes. “It is preferable to reduce the public-figure question to a more meaningful context by looking to the nature and extent of an individual's participation in the particular controversy giving rise to the defamation.” 15 “Whether a person is a public figure, general or limited, is a question of law for the court to resolve.” 16
In the case at bar, the trial court ruled that Infinite Energy is both a general purpose public figure and a limited purpose public figure. First, the court held that
[Infinite Energy] is a general purpose public figure because it is a large, well-known natural gas marketer who is a household name beyond a local area or certain social circles. [Infinite Energy] served at least six hundred customers (as evidenced by the fact that there were more than six hundred customers involved in the class action law suit) and did substantial business in Fulton County, GA, despite being based in Gainesville, FL.
This reasoning is flawed. “A person is a general purpose public figure only if he is a ‘celebrity,’ his name a ‘household word’ whose ideas and actions the public in fact follows with great interest.” 17 Construing the complaint's allegations most favorably to Infinite Energy, as we must when reviewing the grant of a motion to dismiss,18 they do not show that Infinite Energy is a public figure for all purposes. Rather, the complaint and its attachments reflect that Infinite Energy is a “Florida-based energy giant” with at least 600 customers in Georgia who tried to maintain a class-action suit against the company for allegedly locking them into three-year contracts at inflated prices. These statements do not show that Infinite Energy is either a “household word” or that it holds a “position of such persuasive power and influence” that it should be deemed a public figure for all purposes. 19 The trial court erred in concluding otherwise.
We next address the trial court's conclusion that Infinite Energy is a limited purpose public figure. In so holding, the trial court found that Infinite Energy's “role as the primary actor in the class action suit indicates its direct involvement in a legitimate public controversy.” At this stage of the proceedings, and considering the complaint in its proper light, the court erred in reaching this conclusion.
A court must apply a three-part test in determining whether a plaintiff is a limited purpose public figure: “a court must isolate the public controversy, examine the plaintiff's involvement in the controversy, and determine whether the alleged defamation was...
To continue reading
Request your trial
-
Renton v. Watson, A12A1713.
...and the statement of claim is short and plain”) (citations, punctuation, and emphasis omitted). See also Infinite Energy v. Pardue, 310 Ga.App. 355, 361(3), 713 S.E.2d 456 (2011) (plaintiff's conclusory allegations regarding malice did not render defamation claim subject to dismissal for fa......
-
Wolsfelt v. Gloucester Times
...; McCandliss v. Cox Enters., Inc., 265 Ga. App. 377, 593 S.E.2d 856 (2004), overruled on other grounds by Infinite Energy, Inc. v. Pardue, 310 Ga. App. 355, 363, 713 S.E.2d 456 (2011).10 See Pippen, 734 F.3d at 615, citing Shepard v. TheHuffingtonPost.com, Inc., 509 Fed. Appx. 556 (8th Cir.......
-
Van Omen v. Lopresti
...on June 21, 2019, 25 days before the statute of limitation ran on July 16, 2019. See OCGA § 9-3-33 ; Infinite Energy v. Pardue , 310 Ga. App. 355, 362 (4), 713 S.E.2d 456 (2011). A deputy sheriff's return of service non est inventus, indicating that "multiple attempts made w/o service," was......
-
Tomsic v. Marriott Int'l, Inc.
...complaint is sufficient and a motion to dismiss should be denied.” (Citation and punctuation omitted.) Infinite Energy v. Pardue, 310 Ga.App. 355, 355–356(1), 713 S.E.2d 456 (2011). But the failure to warn that Tomsic alleged in her complaint was not a separate basis for liability but rathe......