Joseph v. Scranton Times L.P.

• Decision Date: 18 September 2008
• Docket Number: No. 2144 MDA 2006.,2144 MDA 2006.
• Citation: 2008 PA Super 217,959 A.2d 322
• Parties: Thomas A. JOSEPH, Acumark, Inc., Appellees v. The SCRANTON TIMES L.P., the Times Partner, and Edward Lewis, Appellants.
• Court: Pennsylvania Superior Court

959 A.2d 322

2008 PA Super 217

Thomas A. JOSEPH, Acumark, Inc., Appellees v. The SCRANTON TIMES L.P., the Times Partner, and Edward Lewis, Appellants.

No. 2144 MDA 2006.

Superior Court of Pennsylvania.

Argued February 27, 2008.

Filed September 18, 2008.

Reargument Denied November 26, 2008.

Walter T. McGough, Jr., Pittsburgh, for appellants.

George Croner, Philadelphia, for appellee.

BEFORE: FORD ELLIOTT, P.J., DONOHUE, and POPOVICH, JJ.

OPINION BY POPOVICH, J.:

¶ 1 This is an appeal from the November 16, 2006 judgment entered in the Court of Common Pleas, Luzerne County, in favor of Thomas A. Joseph (Appellee Joseph) and Acumark, Inc., (Appellee Acumark) (collectively Appellees) in their defamation action. The Scranton Times LP, The Times Partner, and Edward Lewis (collectively Appellants) claim that the trial court erred in entering judgment in favor of Appellees because Appellees failed to meet their constitutionally-mandated burdens to prove falsity and fault and that they failed to prove injury as a result of the alleged defamatory statements. Upon review, we affirm the judgment.

FACTS

¶ 2 The Internal Revenue Service Criminal Investigation Unit and the Pennsylvania State Police (PSP) Bureau of Criminal Investigation Division, Organized Crime Northeast Section, were conducting a joint investigation of William D'Elia, the reputed head of the Bufalino crime family of northeastern Pennsylvania. As part of the investigation, the federal agents and PSP troopers applied for search warrants for the homes and businesses of various associates of Mr. D'Elia. On May 29, 2001, the federal magistrate judge for the United States District Court for the Middle District of Pennsylvania issued search warrants that authorized, inter alia, the searches of the home of Appellee Joseph and Appellee Acumark.¹ The search warrants were issued based on the affidavits of probable cause stating that a criminal conspiracy existed among Mr. D'Elia and others. The search warrants issued against Appellees authorized the search and seizure of any documents or materials demonstrating violation of the federal racketeering and racketeer influenced corrupt organization (RICO) statutes, records relating to an illegal sports bookmaking operation, and records relating to the secreting of assets.²

¶ 3 On May 31, 2001, federal agents and PSP troopers conducted searches of several businesses and individuals' homes pursuant to the search warrants, including the home of Appellee Joseph and the office of Appellee Acumark. At approximately 8:00 a.m., twenty to thirty armed IRS agents and PSP troopers entered Appellee Joseph's home in suburban Wilkes-Barre. The search lasted until approximately 3:00 p.m., and the seizure consisted of business and bank records of Appellee Joseph's businesses including Appellee Acumark.

¶ 4 Also on the morning of May 31st, approximately thirty armed federal agents executed the search warrant of Appellee Acumark's office in Wilkes-Barre. The agents seized Appellee Acumark's business records and records that involved Appellee Joseph's other business ventures.

¶ 5 The IRS agents and PSP troopers also executed search warrants at the homes of Mr. D'Elia and Jean Stanton and the home and office of Mr. Samuel Marranca. In addition, a search warrant was issued for the office of Raymond Zavada, who served as Appellee Joseph's personal and business accountant. The agents seized all of Mr. Zavada's files that related to Appellee Joseph and his business ventures.

The Newspaper Articles

¶ 6 As a result of the execution of the search warrants on May 31st, the local news media began reporting news stories on June 1, 2001. The Citizens' Voice, a local newspaper in the Wilkes-Barre— Scranton area owned by Appellant The Scranton Times LP, published ten news stories from June 1, 2001, through October 10, 2001, that involved Appellee Joseph or Appellee Acumark.³ Appellant Lewis, a Citizens' Voice staff writer, wrote or co-wrote the final eight articles. A brief summary of the articles follows.

¶ 7 On June 1, 2001, the Citizens' Voice published an article headlined "Feds Raid Business in Pittston."⁴ The article reported that approximately thirty federal and state agents executed a federal search warrant at the office of Appellee Acumark. Citizens' Voice, 6/1/2001, at ¶¶ 1-3. The article did not mention Appellee Joseph.

¶ 8 On June 2, 2001, the Citizens' Voice published an article headlined "Home of Acumark Owner Searched by Federal Agents."⁵ This article reported that federal agents searched Appellee Joseph's home. Citizens' Voice, 6/2/2001, at ¶ 1. The article also reported that Michael Mey, Esquire, Appellee Joseph's attorney, confirmed that records were removed from Appellee Acumark's office. Id. at ¶ 4. The article included Attorney Mey's statement that Appellee Joseph did not know of any reason why a search warrant was served nor of any type of illegal activity at his home or business. Id. at ¶ 3. Attorney Mey concluded by stating that he made requests to the IRS and Department of Treasury for information regarding the searches. Id. at ¶ 5.

¶ 9 On June 5, 2001, the Citizens' Voice published an article headlined "Alleged Money-laundering Scheme Linked to Pittston Raid."⁶ The article reported that a source informed that "a money-laundering ring might have been the reason behind the federal search warrants issued last week." Citizens' Voice, 6/5/2001, at ¶ 1. The article continued that "the `three main players' whose residences were searched ... allegedly were laundering money through Acumark ... and a limousine/taxi service." The article also reported that an unknown amount of money had been allegedly laundered in the 1990s through The Metro, a then-defunct newspaper, by buying fake advertisement space, and continued through Appellee Acumark after the sale of The Metro. Id. at ¶ 2. The article reported that the search warrants were executed following months of video surveillance and a federal grand jury investigation. Id. at ¶ 4. The article repeated that the federal agents searched the homes of Mr. D'Elia, Appellee Joseph, Ms. Stanton, and Mr. Marranca and the office of Appellee Acumark. Id. at ¶¶ 5-8, 11. The article also repeated that Attorney Mey confirmed that business records were removed from Appellee Acumark's office but was unsure if records were removed from Appellee Joseph's home. Id. at ¶ 9. The article also mentioned that records seized from an office at 1303 Wyoming Avenue, Exeter, involved The Metro. Appellants published a picture of Appellee Joseph with the article.

¶ 10 On August 5, 2001, the Citizens' Voice published an article headlined "Former Avoca Bar Target of Federal Money Laundering Probe."⁷ The article centered on an investigation into alleged prostitution and drug trafficking of Al Carpinet, Jr., at Lavelle's Pub. Citizens' Voice, 8/5/2001, at ¶¶ 1-13. The article concluded with a recitation of the earlier articles involving the grand jury investigation of Appellee Joseph. Id. at ¶ 16. The Citizens' Voice described the investigation as ongoing and stated that it had learned that federal authorities were focusing on a limousine and taxi service based at the Wilkes-Barre-Scranton and Lehigh Valley international airports as a means to transport money, drugs, prostitutes, and guns from Atlantic City, Philadelphia, and New York City. Id. at 2.

¶ 11 Also, on August 5, 2001, the Citizens' Voice published an article headlined "Firearms Dealer Denies Involvement in Alleged Money Laundering Scheme."⁸ The article centered on Gus Salazar, a Wyoming County firearms dealer, and stated that the PSP and Bureau of Alcohol, Tobacco, and Firearms, seized his firearms inventory. Citizens' Voice, 8/5/2001, at ¶ 1. The article included Salazar's denial that he was involved with Appellee Joseph or the money laundering. Id. at ¶ 2. The article reported that Attorney Mey represented Salazar and Appellee Joseph. Id. at ¶ 3. The Citizens' Voice indicated that a "source said both Salazar and Joseph have an interest in the collection of firearms linking the two together to the federal investigation." Id. at ¶ 3. The article included Attorney Mey's response that Appellee Joseph and Salazar were only connected by their retention of him for legal services. Id. at ¶ 4.

¶ 12 On August 6, 2001, the Citizens' Voice published an article headlined "Probe Investigating Pub Clientele."⁹ The article reported the investigation into the alleged illegal activity of the patrons of Lavelle's Pub. Citizens' Voice, 8/6/2001, at ¶¶ 1-7. The article also reported that a federal grand jury began receiving testimony about alleged money laundering at the beginning of the year and that the investigation widened to include prostitution, gun running, and drug trafficking. Id. at ¶ 8. The article included a comment from a source who explained that IRS involvement began two years prior when the IRS received information that as much as $3 million had been laundered through The Metro, a newspaper formerly owned by Appellee Joseph. Id. at ¶ 11. The article also reported that several reliable sources stated that limousine services at two airports were being investigated for possibly transporting money, drugs, and firearms in attaché cases in trunks of the vehicles owned by the limousine services. Id. at ¶ 13. The article continued that according to public records, Appellee Joseph and his son, Thomas J. Joseph, owned and operated limousine and taxi services at the airports. Id. at ¶ 14.

¶ 13 On August 8, 2001, the Citizens' Voice published an article headlined "Ex-Metro Owner: I Didn't See Joseph Do Anything Wrong."¹⁰ The article included an interview that the Citizens' Voice conducted with Bob Butts, a former employee of Appellee Joseph at The Metro who later purchased the paper from Appellee Joseph. Citizens' Voice, 8/8/2001, at ¶¶ 2-3. The article included Mr. Butts' praise of Appellee Joseph and another former Metro employee's comment that he...