NYT reports how non-competes limit salary growth

The New York Times ran an overview piece on restrictive covenants this past weekend that provides an interesting read.  The piece is not focused on journalists and really only touches on the legal arguments at play, but does a great job of describing how these covenants limit an employee’s power to grow his income.

By giving companies huge power to dictate where and for whom their employees can work next, noncompetes take a person’s greatest professional assets — years of hard work and earned skills — and turn them into a liability.

“It’s one thing to have a bump in the road and be in between jobs for a little while; it’s another thing to be prevented from doing the only thing you know how to do,” said Max Burton Wahrhaftig, an arborist in Doylestown, Pa., who in 2013 was threatened by his former employer after leaving for a better-paying job with a rival tree service. He was able to avoid a full-blown lawsuit.

Click here to read the article.

Colorado newspaper threatens to sue over “fake news” accusation

NPR has a story about the dispute between the Daily Sentinel in Grand Junction, CO and a state senator who accused the paper of publishing “fake news.”  Evidently, the paper is consider suing for defamation (but has not yet filed suit).

A news outlet publishes a story that a Republican politician dismisses as “fake news.” Sounds familiar, right?

But in this case, there’s a twist. The Grand Junction Daily Sentinel in Colorado is accusing state Sen. Ray Scott of defamation and threatening to sue. If filed, legal experts said it would be the first suit of its kind, potentially setting a legal definition for what is considered fake news and what is not.

There are many reasons such an action may not be a satisfying endeavor for the paper, but it is an interesting concept because, in essence, the accusation has the effect of undermining the legitimacy of the paper’s product (which would arguably have a deleterious effect on its business).

Read the NPR.org article here.

Trump wins Twitter defamation action in NY

A New York judge has tossed a suit that claimed Donald Trump defamed a guest TV commentator in his tweets.

Trump’s “tweets about his critics, necessarily restricted to 140 characters or less, are rife with vague and simplistic insults such as ‘loser’ or ‘total loser’ or ‘totally biased loser,’ ‘dummy’ or ‘dope’ or ‘dumb,’ ‘zero/no credibility,’ ‘crazy’ or ‘wacko’ and ‘disaster,’ all deflecting serious consideration,” Jaffe wrote.

Read the rest of this article in the ABA Journal.

Ohio Supreme Court rules dashcam videos not protected by “investigatory proceedings” exception

Earlier this month (December 2016), the Ohio Supreme Court determined that the Cincinnati Enquirer’s request for police dashcam videos pursuant to that state’s open records act should have been honored.  The Ohio State Highway Patrol had initially denied immediate disclosure, citing a “confidential law-enforcement investigatory records” exception to the statute.

Specifically, the OSHP told the Enquirer:

The dashboard camera video that you requested is part of an open criminal case that pertains to a law enforcement matter of criminal, quasi-criminal, civil, or administrative nature and whose release would create a high probability of disclosure of specific investigatory work product. Such records are not public records pursuant to ORC 149.43(A)(1)(h) and (A)(2)(c), the confidential law enforcement investigatory records exception to the public records laws.

Analyzing Ohio precedent, the Court noted that, “[t]o justify their refusal to provide the recordings to the Enquirer, respondents have the burden to show that the withheld records fall squarely within a statutory exception. . . . We strictly construe these exceptions against the public-records custodian.”  In this case, the Court found that “[f]or this exception to apply, respondents must therefore establish that each of the withheld recordings ‘pertains to a law enforcement matter of a criminal, quasi-criminal, civil, or administrative nature’ and that its release would create a high probability of disclosure of specific confidential investigatory techniques or procedures or specific work product.”  While the Court found that the dashcam videos meet the first part of the exception (that they are of a criminal, quasi-criminal, civil, or administrative nature), they did not meet the second part.

The Court found that a small portion of the dashcam recordings did probably contain investigatory work product that probably fit into the exception (and therefore could be withheld), but that general withholding is not appropriate.

We therefore decline to adopt an interpretation of the investigative-work-product exception that would shield from disclosure all dash-cam recordings in their entirety merely because they contain potential evidence of criminal activity that may aid in a subsequent prosecution. And we also decline to adopt a per se rule subjecting all dash-cam recordings to disclosure notwithstanding the applicability of any exception. Instead, the recordings at issue here illustrate that a dash-cam recording, as a whole, may not easily fall in or outside the exception. Rather, the three recordings contain images that have concrete investigative value specific to the prosecution of Teofilo that may be withheld, but also contain images that have little or no investigative value that must be disclosed. A case-by-case review is necessary to determine how much of the recordings should have been disclosed.

You can read the opinion here.

CA appellate court finds Title VII case not protected by state anti-SLAPP law

In an interesting, but probably predictable development, a California state appeals court found that a former CNN employee’s discrimination case against the news network can proceed, reversing a lower court’s decision that the network was protected by that state’s anti-SLAPP statute.

You can read the opinion here.

SLAPP stands for Strategic Lawsuit Against Public Participation. Wikipedia defines SLAPP lawsuits as “intended to censor, intimidate, and silence critics by burdening them with the cost of a legal defense until they abandon their criticism or opposition” and that definition is pretty considered with everyone else’s definition.   The California appeals court, in this case, relies on precedent and describes them as follows:  “The quintessential SLAPP is filed by an economic powerhouse to dissuade its opponent from exercising its constitutional right to free speech or to petition. The objective of the litigation is not to prevail but to exact enough financial pain to induce forbearance.”  Wilson v. CNN, et al, No. B264944 (Cal. Ct. App. Dec. 13, 2016)(internal citation omitted).

States like California have adopted anti-SLAPP statutes which aim to shift the financial risk to the person filing the suit.  Basically, if you have been served with a SLAPP statute, you can file an anti-SLAPP motion to strike the case because it involves ostensibly public speech.  The person who sued you then needs to show that they are more likely than not to prevail.  If they lose, many anti-SLAPP statutes let the Defendant collect attorney’s fees.

In this California case, the Plaintiff sued CNN for age and race-based discrimination.  At the trial court level, CNN claimed the lawsuit was a SLAPP suit and that “because CNN is a news provider, all of its staffing decisions regarding plaintiff were part of its editorial discretion and so inextricably linked with the content of the news that the decisions themselves are acts in furtherance of CNN‘s right of free speech that were necessarily ̳in connection‘ with a matter of public interest news stories relating to current events and matter[s] of interest to CNN‘s news consumers.”  The trial court agreed and punted the case.

It’s an interesting strategy, but ultimately did not survive scrutiny.

The appeals court went the other way, ruling this week that, “we reject defendants‘ characterization of their allegedly discriminatory and retaliatory conduct as mere ―staffing decisions in furtherance of their free speech rights to determine who shapes the way they present news. The press has no special immunity from generally applicable laws. . . . As previously noted, ―[T]he mere fact that an action was filed after protected activity took place does not mean the action arose from that activity for the purposes of the anti-SLAPP statute.  Moreover, the statute does not automatically apply simply because the complaint refers to some protected speech activities.” (internal citations omitted).

Journalism prof describes “lost generation” of journalists

From CJR’s piece about Scott Reinardy:

I don’t use this word lightly, but I would call it an organizational depression that’s occurring. There has been so much loss in those newsrooms. Journalists don’t necessarily just lose jobs, they lose careers and some real self-identity.

I had many journalists who broke down and cried, who were so genuinely upset about what had happened to the profession they loved so dearly. It was really troubling.

Judge rules city agency must move faster on records requests

From the Nashville Post:

In a significant victory for open records proponents across the state, Metro Nashville has lost a lawsuit over the amount of time its police department takes to respond to and fulfill open records requests.

Read more…

Correction/retraction theory

I recently read a case that had been filed against several media groups in Mississippi, but has since been “removed” (transferred) to federal court by the Defendants. Ignoring the merits of the case, the allegations describe circumstances that occur so frequently and in so many newsrooms that I thought I would use it as a peg to briefly discuss the issue of running corrections/retractions and the legal strategy behind them.

The alleged facts of this case are these:

  • According to the Complaint, in July 2015, a television station in Mississippi broadcast a picture of the Plaintiff along with his name, and announced that he was wanted by local law enforcement for burglary, sexual assault and sexual battery. (Needless to say, the Plaintiff claims they identified the wrong guy.)
  • Following the broadcast, [Plaintiff] received numerous telephone calls from family members, friends, and coworkers advising [Plaintiff] that he was wanted for charges of burglary and sexual battery and/or sexual assault.
  • In the following days, Plaintiff faced threatening and/or embarrassing remarks and public ridicule in relation to [Plaintiff’s] alleged criminal activity, including the loss of his employment.
  • Or or about July 15, 2015, [Plaintiff] was arrested for the erroneous alleged crimes.
  • Or or about July 27, 2015, after [Plaintiff] had already spent approximately one (1) week in jail, the City dismissed all charges against him on the basis that he had been misidentified.

To be absolutely clear, none of the Defendants has filed an answer. We (I) do not know whether the news organizations ran the Plaintiff’s picture and name because that is what they were given by the local law enforcement authorities or whether it was just a newsroom mistake.

I am, however, going to hijack these facts and use them for my purposes: namely, to discuss what typically happens when stations make mistakes and why there is legal benefit to running a correction (other than the moral determination that it is the right thing to do).

In most tort cases (defamation is a tort), a plaintiff has to prove actual damages in order to make a claim.

To establish a prima facie case of defamation, the plaintiff must prove that (1) a party published a statement; (2) with knowledge that the statement was false and defaming to the other; or (3) with reckless disregard for the truth of the statement or with negligence in failing to ascertain the truth of the statement.

However, “the basis for an action for defamation, whether it be slander or libel, is that the defamation has resulted in an injury to the person’s character and reputation.” To be actionable, the allegedly defamatory statement must “constitute a serious threat to the plaintiff’s reputation.” Damages from false or inaccurate statements cannot be presumed; actual damage must be sustained and proved.

Thus, Tennessee courts have held that a plaintiff in a libel action must be able to show that his or her standing in the community and his public reputation for character has been injured by the inaccurate statement and, further, must have suffered real or actual damages due to that loss of standing or reputation.

Davis v. The Tennessean, 83 S.W.3d 125, 128 (Tenn.Ct.App. 2001)(emphasis added).

You can see from the sections of the case that I’ve cited that proving actual damage is a key part of bringing a succesful defamation action.  In other words, it is possible that someone negligently makes a false statement about you and that you cannot successfully bring a case against them because you cannot prove that you have actually been damaged by the false statement.

So, how do we prove actual damage?

There are all sorts of different strategies Plaintiff’s lawyers have deployed to prove actual damages in defamation cases, and I will not get into them here.

The point is that once you run a correction, you are arguably putting a stop to the accrual of that Plaintiff’s damages.  This means that even if a Plaintiff can prove that you negligently published a false statement about him and that he was damaged, the amount of damage should be controlled, or limited, by the fact that at some point you began to publish that you made a mistake and that the truth is whatever it is.

I cannot understate the value of this concept.   The Digital Media Law Project (“DMLP”) has an excellent article on the law of defamation.  Click here:  link.

The DMLP also briefly addresses the fact that at least one state (Arizona) has created a “retraction” statute that seeks to control the accrual of damages.  In Arizona, an allegedly damaged party must – by statute – demand a retraction (before filing suit) or else his damages are limited.  You cannot just wait around, suffer damages, and sue for an astronomical amount.

Other than just doing the right thing, this is one of the reasons media lawyers have always advised their clients to run corrections.  It is a “mitigation” concept:  Even if they did make a mistake, and they are going to be held liable, by taking steps to get it right, they can actually control the scope of that liability.


Carlson v. Ailes: At least one reason she did not sue the company

I had long been wondering why former Fox anchor Gretchen Carlson had sued Roger Ailes rather than her corporate employer, Fox News Network LLC.  The suit has been discussed at length by various media, and a copy of the complaint is available on Ms. Carlson’s lawyer’s web site (Link: Here).  The lawsuit is essentially an action alleging gender-based discrimination and retaliation filed under New York City’s “little” Title VII statute.  Ordinarily, actions of this nature exist between employee and employer (under federal law and many state statutes), and Ailes was clearly an agent of her employer.  (Note:  The NYC statute prohibits discrimination by “an employer, an employee or an agent thereof.”  As Ms. Carlson alleges in her pleadings, this statute may permit one employee to sue another individually.)

It appears clear now, at least to me, that Carlson may have sued Ailes, and not her employer, to try to avoid an arbitration clause in her employment agreement.

The suit is pending in federal court in New Jersey, originally filed in state court but removed by counsel for Ailes to federal court.  Contemporaneous with Ailes’ removal of the suit, his counsel filed a motion to compel arbitration with the court, based on Carlson’s employment agreement.  You read his legal argument here.

On Friday, July 15, 2016, Ms. Carlson’s lawyers filed their brief opposing Ailes’ motion to compel arbitration.  You can read it here.  In it, she argues that the arbitration agreement is with Fox, but not Ailes.

Somewhat less interesting, but also noteworthy, Mr. Ailes’ lawyers on Friday also filed a motion to transfer venue to the Southern District of New York.  You can read that motion here.


CJR: Proposed CA legislation creates potential open records issue

A bill now being considered by California lawmakers is calling attention to the uneasy balance between copyright principles and public-records law. AB 2880, introduced by the Judiciary Committee and revised May 31, would allow state agencies to claim copyright protections in government works, while at the same time attempting to restrict agency efforts to use their copyrights to circumvent the state Public Records Act.

Click here to read more at CJR.org.