New Jersey Supreme Court Stays Fair Report Decision

We previously reported a recent intermediate appellate court decision from New Jersey in which the court took a narrow view of the fair report privilege.  That decision gave cause for concern for news organizations in New Jersey because it held that the privilege does not apply to reports on the contents of civil court complaints and filings other than final decisions by the court.

On Tuesday, the New Jersey Supreme Court issued a one-paragraph order that temporarily stayed the effect of the lower court decision while the court considers whether to accept the newspaper's appeal.  The stay restores New Jersey law on the fair report privilege to the law as it existed prior to the earlier decision.  However, the court's action does not signal the ultimate outcome of the case -- the court could ultimately decline to exercise appellate review, which would reinstate the intermediate appellate decision, or it could accept review and affirm the decision.

The Reporters Committee for the Freedom of the Press, along with numerous other media organizations and the New Jersey Press Association submitted an amici curiae brief to the New Jersey Supreme Court, asking it to accept review and reverse the previous decision.  We will continue to monitor the progress of this case as it moves through the New Jersey appellate system.

New Jersey and Kentucky Decisions Narrow Fair Report Privilege

In a prior post, we described the contours of the fair report privilege.  This common-law privilege protects journalists from liability for republishing factual errors that appear in official records -- such as a police report, government press release, or criminal indictment -- or that are made during official proceedings -- such as a city council meeting or criminal trial.  So long as the journalist provides a substantially accurate account of the record or proceeding, she will not face liability if the record or proceeding described contains an error that someone contends is defamatory.

The privilege serves an important function because it allows news organizations to report freely on newsworthy government records and proceedings without having first to go behind the records or proceedings to confirm the accuracy of the facts the records contain or of the statements made during the proceedings.  For example, reporters covering the Blagojevich scandal have been able to recount the details set forth in the lengthy affidavit that accompanied the Illinois governor's federal indictment without fear of being sued if any of those facts turn out to be false.  It is therefore critically important that courts give the privilege robust application.

Two recent decisions, one from New Jersey and one from Kentucky, give some cause for concern because they in different ways cabin in the operation of the privilege.  The New Jersey decision, Salzano v. New Jersey Media Group, Inc., involved a defamation claim that arose out of an article written about an adversary complaint lodged by the trustee in a federal bankruptcy proceeding.  The adversary complaint alleged that the plaintiff, a former officer of the bankrupt company, had misappropriated funds from the company for his own benefit.  The article was entitled "Man accused of stealing $500,000 for high living."  The trial court dismissed the plaintiff's defamation action under the fair report privilege.

On appeal, the appellate division reversed.  After discussing the origins and purpose of the fair report privilege, the court first concluded that the article's use of the word "stole" to describe the trustee's allegations in the adversary complaint constituted a fair and accurate account of those allegations.  According to the court, the article carried the "same essential sting" as the trustee's allegations, even though the former indicated that Salzano has "stole[n]" the funds, whereas the latter asserted that he had "unlawfully diverted, converted and misappropriated" the funds.

However, the court went on to conclude that the fair report privilege did not apply at all because the source of the article was an initial pleading in a legal action -- a complaint -- rather than a written decision or oral pronouncement in open court rendering a legal determination on the merits.  The court cited the Restatement (Second) of Torts, Section 611, as the policy basis for this distinction.  According to the court, if reporting upon the allegations contained in a court-filed complaint triggered application of the fair report privilege, it would allow a person to file a baseless complaint for the purpose of having defamatory allegations republished in the news media.

This narrow view of the fair report privilege has been rejected in several other jurisdictions.  For example, in concluding that the privilege does indeed protect substantially accurate accounts of initial court filings, a Pennsylvania court concluded:

Based upon this case law and theory, we cannot reach a conclusion other than that the fair report privilege does apply to reports of initial pleadings upon which no judicial action has been taken.  Pleadings are public records, maintained in government buildings, open for review by the general populace.  We find no sense to the argument that newspapers, or other media groups, cannot report on pleadings prior to judicial action without opening themselves to a libel action.  It is the media's job and business to keep the public informed of pending litigation and related matters conducted in taxpayer funded courthouses.

First Lehigh Bank v. Cowen, 700 A.2d 498, 502 (Pa. Super. Ct. 1997).

The broader view reflected in the Pennsylvania decision is more faithful to the purpose behind the fair report privilege.  The New Jersey approach, on the other hand, permits the tail to wag the dog -- concern over a potentially unscrupulous civil plaintiff winds up creating a substantial deterrent to reporting upon the business of the courts generally, even though many civil complaints are newsworthy in and of themselves because they involve legitimate factual disputes over matters of public concern.  Moreover, the narrower view ignores those procedures -- such as Rule 11 sanctions -- that exist to punish unscrupulous litigants for filing baseless legal actions.  By denying application of the fair report privilege, the approach reflected in the New Jersey court's decision punishes the reporter, who may have limited practical ability to test the allegations of the complaint once the parties involved have shifted into a litigation mode, rather than the bad-faith litigant.

A recent decision from a federal court in Kentucky imposed two discrete limitations on the application of the fair report privilege.  In Trover v. Paxton, the court held that the publisher must know that it is reporting on government activities for the privilege to attach, and the publication at issue must expressly attribute the allegations to a government record or proceeding.  The court ultimately found that the fair report privilege did not apply in Trover because the article sourced the allegations as appearing in a letter accusing the plaintiff of workplace misconduct but did not explain that the letter was included in official investigatory files of a licensing board.

These decisions underscore that there may be nuances from jurisdiction to jurisdiction in how doctrines such as the fair report privilege are interpreted and applied.  And those differences may impact significantly the degree of risk the news media face when reporting upon a particular subject or event.  For example, what one publisher may be comfortable printing or broadcasting about a newly filed civil action may differ depending upon whether the rule applicable in Pennsylvania or New Jersey applies.  It is therefore critically important that reporters and editors have a good understanding of the extent of the legal protections in their jurisdiction.

Understanding the Fair Report Privilege

Although no reporter or news organization wants to find itself defending against a defamation claim, the reality is that plaintiffs have and will continue to file claims alleging injury to their reputations based on media reporting.  Fortunately, media defendants faced with defamation claims enjoy a number of privileges and defenses that protect the “breathing space” the First Amendment requires.  One such protection recognized in a number of jurisdictions is called the “fair report” privilege.

As formulated in the Restatement (Second) of Torts, § 611 (1977),

[t]he publication of defamatory matter concerning another in a report of an official action or proceeding or of a meeting open to the public that deals with a matter of public concern is privileged if the report is accurate and complete or a fair abridgment of the occurrence reported.

Stated another way, the fair report privilege protects fair and substantially accurate reports of statements made in official proceedings—for example, law enforcement investigations, judicial proceedings, and open government meetings.  A reporter may report and rely on statements made in police reports of criminal investigations, even if the statements are later found to be factually untrue, as long as the reporting constitutes a fair and substantially accurate account of the police report.  The First Circuit in the case of Yohe v. Nugent described the privilege this way:

To qualify for the fair report privilege the report must be a fair and accurate portrayal of the official action. The test is whether a reporter’s “rough-and-ready summary” of an official action is “substantially correct.” “A statement is considered a fair report if its ‘gist’ or ‘sting’ is true, that is, if it produces the same effect on the mind of the recipient which the precise truth would have produced."

The theory behind recognition of the fair report privilege is that the public has a legitimate interest in knowing about official government actions, and the news media is, practically speaking, the primary source of information about these actions for most people.  According to the First Circuit in Yohe, “the only way news outlets would be willing to make such a report [concerning government proceedings] is if they are free from liability, provided that their report was fair and accurate."

Fairness and substantial accuracy are required for the privilege to attach, but, as mentioned above, some leeway is allowed between the content of the document or the official statements and the content of the media’s report.  The test is whether the report is a “substantially” correct account of the official documents or statements—the test is not whether the report is a substantially true statement of actual events.  Therefore, when evaluating application of the privilege to official documents and statements, a court must compare the media’s report to the official documents or statements in question.  See, e.g., Heekin v. CBS Broadcasting, Inc., 789 So.2d 355, 360 (Fla. 2d DCA 2001).

One illustrative case concerning the fair report privilege is Yohe v. Nugent, mentioned above.  In Yohe, the plaintiff sued two media defendants and the local chief of police for three statements made by the chief in interviews with the media and about which the media reported: namely, (1) that the plaintiff “was a retired member of the Army Special Forces of Green Berets and has been trained as a sniper;” (2) that the plaintiff had “threatened to kill himself and was reported to be armed with several large caliber weapons;” and (3) that “it was [the chief’s] belief that [the plaintiff] was suicidal.”  The chief’s statements were based on a police incident report concerning a domestic disturbance involving the plaintiff.

The Yohe court found that the statements fell squarely within the fair report privilege.  The First Circuit noted that the plaintiff did not dispute the accuracy of the media’s account of the chief’s statements; rather, the plaintiff argued that “material inaccuracies in the articles, as well as [alleged] negligent reporting on the [media’s] part should result in the newspapers losing the protection of the [fair report] privilege.”  According to the plaintiff, the fair report privilege did not apply to the articles concerning him because they “inaccurately reported that he was drunk and suicidal at the time of his arrest” and the media defendants were “negligent and failed to conduct an independent investigation, which, [the plaintiff] contends, would have caused them to discover that the hospitals had ‘exonerated’ him of being intoxicated and suicidal.”  The First Circuit recognized that the fair report privilege is not absolute and may be lost when a report of an official statement or action is not substantially correct; however, according to the court:

To qualify as “fair and accurate” for purposes of the fair report privilege, an article reporting an official statement need only give a “rough-and-ready” summary of the official’s report; it is not necessary that the article provide an accurate recounting of the events that actually transpired. That is, “accuracy” for fair report purposes refers only to the factual correctness of the events reported and not to the truth about the events that actually transpired. Indeed, it is well established that the fair report privilege “should not be forfeited even if the party making the report knew the statement to be false.”

In dicta, the First Circuit wrote that although the privilege may perhaps be overcome by a showing that the media acted with something more than negligent or knowing republication of inaccurate official statements (i.e., “malice”), the plaintiff had not made that showing in Yohe.  Note that allowing a showing of common-law malice (ill will) or actual malice (knowledge of falsity or reckless disregard for the truth) to defeat the privilege was not actually decided in Yohe; however, whether a showing of actual malice defeats the fair report privilege is the source of some disagreement among jurisdictions.  For example, in Q Int’l Courier, Inc. v. Seagraves, 27 Media L. Rep. 1982 (D.D.C. 1999), the U.S. District Court for the District of Columbia stated that actual malice will defeat the privilege.  See also Schiavone Const. Co. v. Time, Inc., 847 F.2d 1069, n.27 (3rd Cir. 1988) (citing Dairy Stores, Inc. v. Sentinel Publ’g Co., 104 N.J. 125, 516 A.2d 220, 233 (1986)) (stating that actual malice may defeat the privilege under New Jersey law).  But see Restatement (Second) of Torts, § 611 (1977).

As a common-law defense, recognition and application of the fair report privilege are matters of state law.  Every state but Maine recognizes the fair report privilege in some form—whether common-law or statutory, conditional or absolute—but the scope and contours of the privilege and what may be required to defeat it vary among the states.  The range of documents and proceedings covered by the fair report privilege may vary from state to state as well, so it is important that reporters know the extent of the protection the privilege offers in their state.  For example, some state courts have expressly recognized that the privilege extends to accurate summaries of press releases and statements made at press conferences.  See, e.g. Freedom Communications, Inc. v. Sotelo (involving law enforcement press release and email).