Defamation / Reputation, SLAPPs
Tata Sons Limited v. Greenpeace International
India
Closed Expands Expression
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The US Court of Appeals partly affirmed the district court’s dismissal of CoreCivic’s defamation claims against Morgan Simon and Candide group under the California’s anti-SLAPP statute. Morgan Simon, the co-founder of Candide Group had published three articles on Forbes.com criticising CoreCivic, an operator of private prisons and immigrant detention centers in the US. Simon claimed that CoreCivic managed detention centres which were involved in separation of families, profited off mass incarceration and lobbied for harsher criminal justice and immigration law. Simon added a clarification in the article that “the terminology of ‘family separation’ tends to focus on the detention of children” while including a direct quote from CoreCivic that “[it] does not and has never housed children separated from their parents”. CoreCivic argued that these statements implied that it detained children separated from their parents, which was false. The Court of Appeals rejected CoreCivic’s argument since it had failed to adequately plead the falsity of allegedly defamatory statements. The court determined that the statements did not defame CoreCivic by implication as interpreting these statements in any other way than suggesting that “CoreCivic did not detain such children” would be unreasonable. The court remanded the judgment back to the district court with respect to CoreCivic’s defamation claims regarding lobbying statement. Judge Bea dissented from the majority opinion on the issue of CoreCivic’s implied defamation claim.
Between September 2018 and September 2019, the respondent Morgan Simon, also the co-founder of Candide Group (an Oakland- based Registered Investment Advisor, focused on socially responsible investing) published three articles on Forbes.com as a contributor and criticised the appellant, CoreCivic, one of the largest operators of private prisons and immigrant detention centers in the United States. As a member of Families Belong Together coalition, Candide Group pressured “financial institutions to cut ties with private prison companies”. [p. 7]
Simon wrote that “CoreCivic…..manag[es] some of the detention centers that have been at the heart of the controversy over the separation of families and incarceration of individuals for crossing the US border,” and that “CoreCivic…..hold[s] contracts to operate detention centers, and [is] profiting off the pain and separation of families.” She also wrote that “GEO Group [another private prison company] and CoreCivic have a long history of profiting from mass incarceration: they make money when beds are filled, justly or unjustly, which is why they’ve spent $25M on lobbying over the past three decades to push for harsher criminal justice and immigration laws.” [p. 7]
In response to letter from CoreCivic’s attorneys, Simons added a “Clarification” section, stating that “this article does not intend to suggest that CoreCivic…..housed children separated from their parents pursuant to the Trump family separation policy.” In the same section, Simon noted that in her view, “[f]amily separation is……practiced in the context of both immigration and mass incarceration, such that it is possible to participate in family separation without participating in the housing of children.” [p. 8] She acknowledged that “the terminology of ‘family separation’ tends to focus on the detention of children.” Another article was updated which stated that, “CoreCivic say[s] that they don’t lobby on legislation or policies that would affect the basis for or length of incarceration or detention.” [p. 8]
On March 4, 2020, CoreCivic filed a suit against the respondents Simon and Candide Group in the Central District of California for defamation and defamation by implication. CoreCivic identified “two distinct categories of allegedly defamatory statements made by Simon across the three articles: 1) statements falsely accusing CoreCivic of housing children separated from their parents pursuant to the government’s family separation policy, and 2) statements falsely accusing CoreCivic of lobbying for more punitive criminal and immigration laws”. [p. 8]
On August 6, 2020, Simon and Candide Group field a “special motion to strike” CoreCivic’s complaint under the California section 425.16 of the California Civil Procedure Code (Anti- SLAPP Act). The district court asked, “did CoreCivic house parents who had been separated from their children?” to which CoreCivic replied, “CoreCivic does operate immigrant detention facilities for adults.” [p. 9] The district court noted this to be CoreCivic’s admission that it detained parents separated from their children.
On November 19, 2020, while granting Simon and Candide Group’s motion, the court determined that Simon’s family separation statements were “true enough under the First Amendment and under California defamation law”. [p. 9] The court did not discuss CoreCivic’s lobbying practices.
This order was challenged in the US Court of Appeals.
Judge S.R.Thomas of the US Court of Appeals for the Ninth Circuit delivered the opinion of majority while Judge Bea dissented. The main issue for consideration before the court was whether Simon and Candide Group were liable either for defamation or defamation by implication.
CoreCivic argued that Simon’s statements regarding its involvement in running detention centres that housed separated families were defamatory. CoreCivic denied that it “operated any immigration detention facilities for children separated from their parents pursuant to the government’s family separation policy.” [p. 18] Alternatively, CoreCivic contended defamation by false implication. CoreCivic argued that it would be “reasonable” to interpret Simon’s statements tying CoreCivic to “family separation” as implying that it held children separated from their parents in its facilities, especially so because Simon mentioned that “the terminology of ‘family separation’ tends to focus on the detention of children.” [p. 18] CoreCivic further highlighted a picture included in the September 25, 2018 article which could be linked to CoreCivic’s detention of children visually.
CoreCivic also pleaded distinct theories of express and implied defamation in relation to Simon’s statements about its lobbying practices.
In defamation actions against public figures or involving statements about matters of public concern, a plaintiff must plead that the allegedly defamatory statements are false. [p. 17] The Court observed that CoreCivic did not contest the assertion that the allegedly defamatory statements pertained to matters of public concern and that in order to plead falsity, CoreCivic had to deny the “substance of the charge.” [p. 18] The Court determined that “CoreCivic failed to contest the substance of the charges made against it in Simon’s articles.” [p. 18] CoreCivic had made a very “specific denial” and stated that it did not operate immigration detention facilities for children separated from their parents, however the court noted that Simon did not state this in his article. The Court stressed that the substance of Simon’s charge was “much broader, it was that CoreCivic was involved in the business of family separation and incarceration at the border.” [p. 18]
Therefore, the Court determined that CoreCivic had failed to plead that the allegedly defamatory statements were false as required in a defamation suit.
The Court further observed that “even if a statement is literally accurate, defamation may be proven if it has a false implication” as stated in Hawran v. Hixson, 209 Cal. App. 4th 256. [p. 18] However, the Court rejected CoreCivic’s allegations of implied defamation. The Court reiterated that the published statement must “reasonably be understood as implying the alleged defamatory content” as held in Price v. Stossel, 620 F.3d 992, 1003. [p. 18] The Court ruled that Simon’s statements could not reasonably be interpreted as suggesting that CoreCivic detained children separated from their parents.
The Court noted that the statements alleging CoreCivic as managing detention centres at the heart of the controversy over the separation of families and profiting off the pain and separation of families could not reasonably imply that they housed children separated from families. The Court observed that the statement – “the terminology of ‘family separation’ tends to focus on the detention of children” did not appear in Simon’s original article and was added as part of a “clarification” required by CoreCivic’s legal team. [p. 19] The Court observed that the main purpose of this clarification was to convey that CoreCivic had not detained children while including a direct quote from CoreCivic that “CoreCivic does not and has never housed children separated from their parents.” [p. 19]
Therefore, the Court concluded that interpreting these statements in any other way than suggesting that “CoreCivic did not detain such children” would be unreasonable. [p. 20]
The Court rejected CoreCivic’s assertion that the images in the article which stated that “I Am A Child”, “Families Belong Together” and “Moms Rising Against Family Separation” linked the issue of family separation and the detention of children visually. The Court discussed the precedent – Manzari v. Associated Newspapers Ltd., 830 F.3d 881 (9th Cir. 2016) where a photograph was considered the basis for a defamation by implication claim. In this case, the Court held that the publication of an image featuring a pornographic actor in a news article could reasonably suggest that the depicted actor had tested positive for HIV since it was captioned that “a performer had tested HIV positive.” However, in the instant case, the Court ruled that the images highlighted the family separation issue as a whole and did not explicitly reference the detention of children. The Court observed that neither the caption (“Mom’s Rising”) nor the headline of the article (“What Do Big Banks Have To Do With Family Detention? #FamiliesBelongTogether Explains.”) implied any connection to detention of children.
The Court concluded that Simon’s articles could not reasonably be understood as implying that CoreCivic detained children separated from their parents in its facilities. Accordingly, the Court affirmed the district court’s dismissal of CoreCivic’s defamation by implication claim.
The Court declined to rule on CoreCivic’s defamation allegations against Simon’s statements regarding its lobbying practices, citing the trial court’s failure to address the issue. As an appellate court, it was not within its purview to decide on matters that were not previously considered. Consequently, the Court referred the matter back to the district court on this issue.
To conclude, the Court affirmed the district court’s dismissal of CoreCivic’s family separation statement defamation claims under the California’s anti-SLAPP statute. The court vacated and remanded the judgment of the district court with respect to CoreCivic’s lobbying statement defamation claims.
Judge Bea dissented from the majority opinion on the issue of CoreCivic’s implied defamation claim. Judge Bea noted that in order to state a claim for implied defamation under the California law, if the statement is reasonably susceptible of a defamatory interpretation, it is for the jury to determine whether a defamatory meaning is conveyed to the listener or reader.
Judge Bea noted that Simon’s statements had three equally reasonable interpretations but the district court usurped the role of the jury when it granted the anti-SLAPP motion and chose which among these three was actually conveyed to readers. Judge observed that Simon’s statements were published below a large photograph depicting protesters – one protester had a sign “I am a child”, another protesters carried baby clothes printed with the words “Moms rising against family separation” Above the photograph, Judge Bea noted that the article included two tweets: “Every child, no matter where he or she is born, deserves to be tucked into a safe bed to sleep,” and “We strongly believe there simply shouldn’t be a profit motive to incarcerating children and families.” [p. 23] Judge Bea remarked that a reasonable reader could interpret the statement to imply that CoreCivic houses children separated from their parents, which was false. At the same time, Judge Bea noted that, the statements could also lend an “innocent interpretation” as suggested by Simon and Candide that CoreCivic housed parents separated from their children, but not children separated from their parents.
Judge Bea also deemed majority as wrong in distinguishing Manzari case from the present case. Judge remarked that although Simon’s article contained “vague references” to family separation generally, the imagery of baby clothes and tucking children into bed clearly referred to the housing of separated minors. Judge agreed with CoreCivic that Simon’s clarification statement that “the terminology of ‘family separation’ tends to focus on the detention of children” was “an admission that its statements connecting CoreCivic to family separation implied that CoreCivic was involved in the detention of separated children”. [p. 26]
Judge Bea concluded that it was the duty of the jury to decide whether a defamatory interpretation was actually conveyed to readers and not the district court’s.
Decision Direction indicates whether the decision expands or contracts expression based on an analysis of the case.
The court’s decision has significant implications for freedom of expression and the handling of Strategic Lawsuits Against Public Participation (SLAPP) cases. SLAPP cases are typically characterized by their intent to censor, intimidate, and silence critics by burdening them with the cost of a legal defense until they abandon their criticism or opposition. This case fits the criteria of SLAPP cases by involving a lawsuit filed by a rich and powerful corporation against critics (Simon and the Candide Group) for their statements concerning matters of significant public interest – namely, the involvement of private companies in immigration detention and the broader implications of such practices. The court’s application of the anti-SLAPP statute to dismiss the defamation claims sends a strong message against the use of legal actions to silence or intimidate critics. This precedent emphasizes the judiciary’s role in recognizing and dismissing baseless legal claims that serve to deter free speech and public participation. By dismissing CoreCivic’s defamation claims under California’s anti-SLAPP statute, the court effectively upheld and expanded freedom of expression, particularly concerning speech on matters of public concern.
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