Angela Horne v. WTVR, LLC , 893 F.3d 201 ( 2018 )


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  •                                      PUBLISHED
    UNITED STATES COURT OF APPEALS
    FOR THE FOURTH CIRCUIT
    No. 17-1483
    ANGELA ENGLE HORNE,
    Plaintiff - Appellant,
    v.
    WTVR, LLC, d/b/a CBS6,
    Defendant - Appellee.
    No. 17-1613
    ANGELA ENGLE HORNE,
    Plaintiff - Appellee,
    v.
    WTVR, LLC, d/b/a CBS6,
    Defendant - Appellant.
    Appeals from the United States District Court for the Eastern District of Virginia, at
    Richmond. John A. Gibney, Jr., District Judge. (3:16-cv-00092-JAG)
    Argued: March 21, 2018                                        Decided: June 18, 2018
    Before KEENAN, WYNN, and FLOYD, Circuit Judges.
    Affirmed by published opinion. Judge Floyd wrote the opinion, in which Judge Keenan
    and Judge Wynn joined.
    ARGUED: Richard F. Hawkins, III, THE HAWKINS LAW FIRM, PC, Richmond,
    Virginia, for Appellant/Cross-Appellee.  Conrad M. Shumadine, WILLCOX &
    SAVAGE, PC, Norfolk, Virginia, for Appellee/Cross-Appellant. ON BRIEF: Brett A.
    Spain, WILLCOX & SAVAGE, PC, Norfolk, Virginia, for Appellee/Cross-Appellant.
    2
    FLOYD, Circuit Judge:
    On February 13, 2015, WTVR, LLC (“WTVR”) aired a news story about a county
    school system hiring a felon in violation of a Virginia state law. The news story implied
    that the felon lied about a prior criminal conviction on a job application, thereby
    committing a Class 1 misdemeanor. However, Angela Engle Horne, the unidentified
    felon in question, had disclosed her prior felony on her job application for the Director of
    Budget & Finance for the county school system, and Dr. Bobby Browder, the then-
    superintendent, knew of her felony conviction when he hired her.
    After the news story aired, Horne filed a defamation claim against WTVR. The
    district court granted WTVR’s motion to have Horne considered a public official rather
    than a private citizen for this claim. It is well settled that a public official cannot
    “recover[] damages for a defamatory falsehood relating to his official conduct unless he
    proves that the statement was made with ‘actual malice’―that is, with knowledge that it
    was false or with reckless disregard of whether it was false or not.” New York Times Co.
    v. Sullivan, 
    376 U.S. 254
    , 279–80 (1964). The district court granted WTVR’s motion for
    a directed verdict, concluding that Horne failed to demonstrate that WTVR acted with
    actual malice in airing the allegedly defamatory news story. Horne now appeals, arguing
    that the district court erred in deeming her a public official, in granting WTVR’s motion
    for a directed verdict, and also in denying her pre-trial motion to compel WTVR to
    disclose the identity of its confidential source. WTVR cross-appeals, arguing that the
    district court erred in denying its motion for summary judgment because the news story
    was not reasonably capable of defaming Horne and is protected by the fair report
    3
    privilege as a report of an official action. For the reasons that follow, we now affirm the
    district court’s decision and dismiss WTVR’s cross-appeal.
    I.
    On July 19, 2014, Horne applied to be the Director of Budget & Finance for the
    Prince George County School Board by filling out an online application. Where the
    application asked whether she previously had been convicted of a felony, she answered
    “Yes” and, as requested on the application, provided a short paragraph explaining her
    prior conviction for conspiracy to possess with the intent to distribute methamphetamine.
    The application did not ask Horne to certify that she had never been convicted of a felony
    and did not indicate that felons were ineligible for employment.
    Browder conducted a series of interviews with Horne, during which Horne
    specifically asked him several times about the impact of her felony conviction. Browder
    represented that her previous felony conviction was not a hindrance to being hired.
    Horne was then hired for the position and began on September 29, 2014. On February
    10, 2015, however, Horne was terminated because her prior felony conviction was a
    disqualifying factor under Virginia law.       Va. Code § 22.1-296.1(A).     Virginia law
    prohibits a school system from hiring a convicted felon for any position, requires an
    applicant to certify that he or she has not been convicted of a felony, and makes a false
    statement about an offense a Class 1 misdemeanor. 
    Id. 1 1
               Virginia Code § 22.1-296.1(A) provides that:
    4
    On February 11 or 12, 2015, Wayne Covil, a senior reporter at WTVR, received a
    five-minute phone call from a familiar, confidential source who relayed that a felon had
    been hired and then fired from the school board office in Prince George County, and also
    may have provided a partial name of the felon. Covil then interviewed Browder, whom
    Covil had worked with for years on dozens of stories for WTVR. Browder told Covil
    that due to school system policy he could not discuss personnel matters, including that he
    could not confirm or deny that a felon was hired or fired.
    The conversation then shifted to the hiring process.       Browder conveyed that
    applicants are hired, then a background check is completed that can take up to eight
    weeks, and that prior convictions are sometimes discovered after the employee has begun
    working.    Together, they reviewed Browder’s copy of the Virginia School Law
    Deskbook―a book of school system policies and rules that includes a copy of the
    Virginia Code. Pointing to the relevant statute in the Deskbook, Browder stated that it
    was a Class 1 misdemeanor to provide false information on a school application. 
    Id. Covil testified
    that he believed Browder implied that the felon at issue had lied on her job
    application by failing to disclose her prior felony.
    As a condition of employment for all of its public school employees,
    whether full-time or part-time, permanent, or temporary, every school
    board shall require on its application for employment certification (i) that
    the applicant has not been convicted of a felony or any offense involving
    the sexual molestation, physical or sexual abuse or rape of a child; and (ii)
    whether the applicant has been convicted of a crime of moral turpitude.
    Any person making a materially false statement regarding any such offense
    shall be guilty of a Class 1 misdemeanor . . . .
    5
    Shortly after the interview, Covil received an email from an anonymous source.
    The email said:
    I am a Prince George county resident. On Monday, I anonymously sent
    letters to each of the school board members informing them that a
    convicted felon was hired by the school board office. I know this because
    this person also lives in Prince George and I know they are a felon. I also
    know they work as a Director at the Prince George School Board Office.
    My concern is, how did this happen? Any state employee must have a
    background check when hired so how was this overlooked? Who allowed
    this to happen? Shouldn’t someone take responsibility? Who at the School
    Board gave the OK to hire a felon. Virginia law states that a school
    division can not [sic] hire a convicted felon. This also happens at the same
    time the Superintendent gets a $10,000.00 raise. Is he really doing his job.
    J.A. 910–11. WTVR’s News Director, Sheryl Barnhouse, emailed Covil and told him
    “[w]e need to pursue” the story and to find out the name of the felon. J.A. 910. Covil
    and Michael Bergazzi, an Executive Producer at WTVR, then tried unsuccessfully to
    confirm the felon’s identity by searching the internet. After finding a woman Bergazzi
    incorrectly thought may be the felon, Bergazzi told Covil to “ask your source if [the
    felon] may have been convicted of a crime in Tennessee.” J.A. 908. Covil did not follow
    up with his source. At some point after this, believing that Horne may be the felon based
    on the informant’s initial tip, Covil tried to call Horne, but was unable to reach her. Covil
    did not investigate further.
    On February 13, 2015, in its lead story for the 5:30 PM newscast, WTVR ran
    Covil’s news story. It was titled, “Source: Convicted felon worked at school board
    office in Central Va.,” and a banner across the bottom of the screen for the duration of the
    broadcast read, “Felon Hired, Then Fired.” J.A. 928. A print version of the story was
    also posted online. The story described that a felon had been hired to work in the school
    6
    board office, and was no longer employed. Then, Covil held a copy of the Virginia
    School Law Deskbook that includes the law regarding the school system’s hiring policy,
    and shifted to a segment of the recorded interview with Browder explaining that the
    background check occurs after the applicant is given a job offer, and that the background
    check can reveal disqualifying information, including a felony conviction. The screen
    then displayed a copy of the online application’s “yes” and “no” questionnaire for
    applicants to identify whether they have been convicted of various crimes. The news
    story ended by stating that it is a Class 1 misdemeanor to misrepresent one’s criminal
    past in a school application while displaying the text of the relevant Virginia Code
    provision. See Va. Code § 22.1-296.1(A). The news story did not identify Horne by
    name or position, nor did it provide details of her prior conviction.
    Two months later, Horne filed suit against the school system and Browder. On
    February 16, 2016, Horne filed this action against WTVR in federal court under diversity
    jurisdiction pursuant to 28 U.S.C. § 1332, alleging that the news story defamed her.
    Horne filed a pre-trial motion to compel WTVR to disclose the confidential source that
    provided the initial tip for the story, which the court denied. WTVR moved to have
    Horne deemed a “public official” and a “limited purpose public figure” for purposes of
    the defamation claim. The court deemed Horne a “public official,” but declined to make
    any finding as to whether she was a “limited purpose public figure.” WTVR moved for
    summary judgment on several grounds, including that the news story was not reasonably
    capable of defaming Horne and that the story was also protected by the fair report
    privilege as a publication of an official statement from the school spokesperson. The
    7
    court denied the motion for summary judgment. The case proceeded to trial, and at the
    close of evidence, WTVR moved for a directed verdict. The court granted the motion,
    concluding that Horne provided insufficient evidence that WTVR made the defamatory
    statements with “actual malice,” as is required for defamation claims against public
    officials.
    Horne now appeals, arguing that the district court erred in deeming her a public
    official, in granting WTVR’s motion for a directed verdict, and also in denying her pre-
    trial motion to compel WTVR to disclose the identity of its confidential source. WTVR
    cross-appeals, arguing that the district court erred in denying its motion for summary
    judgment because the news story was not reasonably capable of defaming Horne and is
    protected by the fair report privilege as a report of an official action. We address each of
    the parties’ arguments in turn.
    II.
    A.
    We first turn to Horne’s argument that the district court erred in granting WTVR’s
    motion to deem Horne a “public official” for purposes of this defamation claim. 2 If
    2
    At Virginia common law, a statement is defamatory per se if it: (1) “impute[s] to
    a person the commission of some criminal offense involving moral turpitude”; (2)
    “impute[s] that a person is infected with some contagious disease”; (3) “impute[s] to a
    person unfitness to perform the duties of an office or employment of profit, or want of
    integrity in the discharge of the duties of such an office or employment”; or (4)
    “prejudice[s] such person in his or her profession or trade.” Carwile v. Richmond
    Newspapers, Inc., 
    82 S.E.2d 588
    , 591 (Va. 1954) (citations omitted). Allegedly
    defamatory words are to be understood “according to the sense in which they appear to
    8
    Horne is a public official for purposes of the news story, and if the defamatory statements
    relate to her official conduct, she is required to demonstrate that WTVR acted with
    “actual malice” rather than negligence in order to succeed on her defamation claim. See
    New York 
    Times, 376 U.S. at 279
    –80; CACI Premier Tech., Inc. v. Rhodes, 
    536 F.3d 280
    ,
    293 (4th Cir. 2008) (stating that the application of a state’s defamation law is limited by
    the First Amendment, including by the “actual malice” standard announced in New York
    
    Times, 376 U.S. at 279
    –80). We review the district court’s determination of whether an
    individual is a “public official” and whether the “actual malice” standard applies de novo.
    See Reuber v. Food Chem. News, Inc., 
    925 F.2d 703
    , 708 (4th Cir. 1991) (en banc). We
    are satisfied that Horne is a public official and that the actual malice standard applies to
    this defamation claim.
    The Supreme Court has held that the “public official” designation applies “at the
    very least to those among the hierarchy of government employees who have, or appear to
    the public to have, substantial responsibility for or control over the conduct of
    governmental affairs.” Rosenblatt v. Baer, 
    383 U.S. 75
    , 85 (1966) (citations omitted);
    see also Robert D. Sack, Sack on Defamation § 5:2.1, at 5–7 (5th ed. 2017) (“The public
    official category is by no means limited to upper echelons of government. All important
    government employees are subject to discussion by the people who employ them and by
    others who would comment on their behavior.” (citations omitted)). Thus, a plaintiff
    have been used,” and a defamatory charge may be made expressly or “by inference,
    implication or insinuation.” 
    Id. at 592
    (citations omitted).
    9
    with either actual or apparent substantial responsibility can be deemed a public official
    for purposes of a defamation claim. See 
    Rosenblatt, 383 U.S. at 85
    .
    In determining whether a plaintiff had apparent substantial responsibility, courts
    examine whether “the public has an independent interest in the qualifications and
    performance of the person who holds it, beyond the general public interest in the
    qualifications and performance of all government employees . . . .” 
    Id. at 86.
    In other
    words, to find apparent authority, “[t]he employee’s position must be one which would
    invite public scrutiny and discussion of the person holding it, entirely apart from the
    scruting and discussion occasioned by the particular charges in controversy.” 
    Id. at 86
    n.13. This inquiry is guided by the facts of the case.
    Nevertheless, we find it helpful to review this Court’s interpretations of the
    Supreme Court’s guidance, and, because we have infrequently faced this issue, we
    supplement this understanding with the non-precedential decisions of other courts. In
    Baumback v. American Broadcasting Companies, Inc., an unpublished case, this Court
    concluded that a plaintiff was a public official with apparent substantial responsibility for
    or control over government affairs related to timber sales because his publicly available
    job descriptions “created the appearance that [his] governmental responsibilities were
    significant,” and because his “prominent role in controlling timber sales . . . was
    frequently in the news . . . .” 
    161 F.3d 1
    , 
    1998 WL 536358
    , at *4 (4th Cir. 1998)
    (unpublished table decision) (per curiam). Other courts have deemed plaintiffs in similar
    positions to be public officials. See, e.g., Fuller v. Brownsville Indep. Sch. Dist., No. B:
    13-109, 
    2016 WL 3960563
    , at *13 (S.D. Tex. May 18, 2016) (Chief Financial Officer
    10
    and budget administrator of a school district who was responsible for allocating and
    tracking the district’s $500 million budget was a public official because “[t]he public
    clearly would have an independent interest in the performance of this position,
    irrespective of the identity of the occupant”); Davis v. Borskey, 
    660 So. 2d 17
    , 21 n.6 (La.
    1995) (university purchasing agent who purchased items for the university under a state-
    regulated purchasing process was a public official because he had “the authority to
    negotiate financial transactions and handle significant amounts of university funds”);
    Ferguson v. Union City Daily Messenger, Inc., 
    845 S.W.2d 162
    , 162, 167 (Tenn. 1992)
    (plaintiff who held positions of “Director of Accounts and Budgets,” “Finance Director,”
    and “Purchasing Agent” for county was a public official because he had actual and
    apparent substantial responsibility over the conduct of the financial affairs of the county
    and because “[t]he efficient management of financial matters is crucial to the proper
    operation of government”); Carroll v. Jones, 74 Va. Cir. 466, 
    2008 WL 2594769
    , at *4
    (Va. Cir. Ct. 2008) (“Director of Contracting for the Southeast RMC” who had authority
    to award government contracts and spend funds on behalf of the United States was a
    public official because “[i]mproper performance of governmental functions that involve
    significant issues is something that would create a question that the public has a
    significant interest in”).
    Conversely, in Arctic Company, Ltd. v. Loudoun Times Mirror, this Court
    concluded that a company employed as a consultant to the county water authority for a
    total of six months was not a “public official” because it “made no recommendations
    [and] participated in no policy determinations” and was “purely a fact-finder exercising
    11
    no judgment or discretion . . . .” 
    624 F.2d 518
    , 522 (4th Cir. 1980). Similarly, the First
    Circuit concluded that a psychologist working at a Veterans’ Administration hospital who
    “did not routinely supervise, manage, or direct government operations” was not a public
    official. Kassel v. Gannett Co., Inc., 
    875 F.2d 935
    , 940 (1st Cir. 1989); see also Jenoff v.
    Hearst Corp., 
    644 F.2d 1004
    , 1006 (4th Cir. 1981) (police informant was not a public
    official, even disregarding his lack of formal governmental affiliation, because he played
    a “very minor role” in governmental activities); Richmond Newspapers, Inc. v. Lipscomb,
    
    362 S.E.2d 32
    , 37 (Va. 1987) (public school teacher was not a public official because
    there had been no showing that she had “either influenced or even appeared to influence
    or control any public affairs or school policy”).
    Here, given her title and job description, Horne had apparent substantial
    responsibility over the school system’s finances. Although titles are not dispositive, the
    title “Director of Budget & Finance” implies substantial control over the school system’s
    budget and finances and, indeed, this position appears to be the top financial position in a
    school system with a nearly $60 million budget. The Director of Budget & Finance job
    description includes the overarching job goal “[t]o manage the financial, budgetary, and
    purchasing affairs of the School Division in a prudent and effective manner.” J.A. 148.
    According to the job description, the position also requires the employee to “be
    comfortable presenting to the school board”; “negotiate with health and dental insurance
    providers”; “[o]versee Sick Bank Committee”; “[p]lan, direct, and coordinate the
    preparation of the School Division’s annual budget”; “make expenditure projections for
    budget preparation”; “coordinate projections with budget”; and “[m]anage grants
    12
    functions and approve reimbursement requests in state grant system[.]” J.A. 148–49.
    Additionally, there is an entire chapter in the Virginia Code on “Public School Funds,”
    including recordkeeping requirements, requirements to impose sufficient taxes to support
    educational programs, and defining penalties for violations of spending laws, Va. Code
    § 22.1-89 to 22.1-95, indicating the importance of the budget to both the government and
    the public.
    We are convinced that serving as the Director of Budget & Finance, thus, created
    the appearance that Horne’s governmental responsibilities were significant and
    necessarily involved discretion regarding several tasks as she managed the school
    system’s financial affairs. This would, we believe, “invite public scrutiny and discussion
    of the person holding it,” and provide “independent interest in the qualifications and
    performance of the person” in that position. 
    Rosenblatt, 383 U.S. at 86
    , 86 n.13.
    Horne argues that she lacked actual and apparent substantial responsibility and
    control over governmental affairs because she did not make decisions about how to spend
    funds but merely completed administrative functions in carrying out the budget created
    by the superintendent and the school board, and also because she did not complete all the
    functions proscribed in the job description. See also Appellant Br. 38 (stating that she
    had “no access to the public purse,” “did not handle funds,” and “did not have the power
    to change the budget line items”); 
    id. at 41
    (stating that she only made one comment at a
    13
    school board meeting and did so “as an adjunct to Browder”). 3           This argument is
    unavailing. It is unnecessary for each task that the Director of Budget & Finance must
    complete to invite public scrutiny, and it is sufficient under these facts that the position
    itself invites scrutiny, regardless of whether Horne completed each anticipated task in her
    brief four months in the job. Consequently, we conclude that Horne is a “public official”
    because she has apparent substantial responsibility and control over the school system
    budget and finances. 4
    Having determined that Horne is a “public official,” we must determine whether
    the allegedly defamatory statements relate to Horne’s official conduct such that the
    “actual malice” standard applies. See New York 
    Times, 376 U.S. at 279
    –80. This inquiry
    is easily satisfied. In Garrison v. Louisiana, the Supreme Court stated that “anything
    which might touch on an official’s fitness for office is relevant” to his official conduct.
    
    379 U.S. 64
    , 77 (1964); see also Gertz v. Robert Welch, Inc., 
    418 U.S. 323
    , 344–45
    3
    Horne also argues that she did not have greater access to the media to counter the
    defamation claim than private individuals enjoy, weighing against deeming her a public
    official for this claim. Access to the media is only one factor courts can consider,
    however, and is not dispositive of the question. See Gertz v. Robert Welch, Inc., 
    418 U.S. 323
    , 344–45 (1974). In any event, it appears that the Director of Budget & Finance has
    greater access to the media than a private individual would enjoy. Horne admits that the
    superintendent is the direct media contact for the school system, and the record indicates
    that the Director of Budget & Finance keeps in close contact with the superintendent.
    These facts, alone, suggest that Horne’s position has access to the media, despite that this
    particular controversy involved the superintendent.
    4
    We decline to determine whether Horne also had actual substantial authority as
    the Director of Budget & Finance, an independent ground for deeming her a public
    official for purposes of this defamation claim. See 
    Rosenblatt, 383 U.S. at 85
    .
    14
    (1974) (stating that society’s interest in a public official “is not strictly limited to the
    formal discharge of official duties”). The Supreme Court expanded on this holding in
    Monitor Patriot Co. v. Roy by asserting that a criminal charge can never be irrelevant to
    an official’s fitness for office for purposes of applying the “actual malice” standard in
    defamation cases. 
    401 U.S. 265
    , 277 (1971); see also Ocala Star-Banner Co. v. Damron,
    
    401 U.S. 295
    , 300 (1971) (holding that a perjury charge against a local mayor and
    candidate for a county elective post is relevant to his fitness for office). Thus, the
    statement that Horne committed a Class 1 misdemeanor by lying on her job application
    relates to her official conduct because this criminal charge is relevant to her fitness for
    office.
    Therefore, we hold that the district court did not err in determining that Horne was
    a “public official” for this defamation claim, that the defamatory statements related to her
    official conduct, and that consequently Horne was required to prove that WTVR acted
    with “actual malice” to succeed on her claim. 5
    5
    We need not address WTVR’s contention that the district court erred in declining
    to address its motion that Horne be declared a “limited purpose public figure,” as this is
    an alternative ground for applying the “actual malice” standard, and we have already
    determined that the “actual malice” standard applies to this defamation claim. See 
    CACI, 536 F.3d at 293
    (stating that the “actual malice” standard from New York 
    Times, 376 U.S. at 279
    –80, applies to defamation claims brought by public officials and public figures);
    see also Curtis Publ’g Co. v. Butts, 
    388 U.S. 130
    , 134 (1967) (describing “public
    figures,” generally, as those that are “involved in issues in which the public has a justified
    and important interest”); Foretich v. Capital Cities/ABC, Inc., 
    37 F.3d 1541
    , 1552 (4th
    Cir. 1994) (describing “limited purpose public figures” as those “who voluntarily inject
    themselves into a particular public controversy and thereby become public figures for a
    limited range of issues” (citation omitted)).
    15
    B.
    Next, Horne argues that the district court erred in concluding that she presented
    insufficient evidence that WTVR made the defamatory statements with “actual malice”
    and, thus, erred in granting WTVR’s motion for a directed verdict on that basis. We
    disagree.
    This Court reviews the grant of a Rule 50(a) motion for a directed verdict de novo.
    Malone v. Microdyne Corp., 
    26 F.3d 471
    , 475 (4th Cir. 1994). “In considering a motion
    for a directed verdict, the court must construe the evidence in the light most favorable to
    the party against whom the motion is made.” Parker v. Prudential Ins. Co. of Am., 
    900 F.2d 772
    , 776 (4th Cir. 1990) (citation omitted). “Unless there is substantial evidence to
    support the verdict asked of the jury, the reviewing court must direct the verdict upon
    request.  As a consequence, the case should be withdrawn from the jury when any verdict
    in favor of the nonmoving party necessarily will be premised upon speculation and
    conjecture.” Gairola v. Va. Dep’t of Gen. Servs., 
    753 F.2d 1281
    , 1285 (4th Cir. 1985)
    (citations & internal quotation marks omitted).
    This Court also reviews whether there was sufficient evidence of “actual malice”
    de novo. See Harte–Hanks Commc’ns, Inc. v. Connaughton, 
    491 U.S. 657
    , 685 (1989).
    A public official cannot “recover[] damages for a defamatory falsehood relating to his
    official conduct unless he proves that the statement was made with ‘actual malice’―that
    is, with knowledge that it was false or with reckless disregard of whether it was false or
    not.” New York 
    Times, 376 U.S. at 279
    –80; see also 
    CACI, 536 F.3d at 293
    . Under the
    actual malice standard, a plaintiff must prove that the defendant had a particular,
    16
    subjective state of mind at the time the statements were made.         See St. Amant v.
    Thompson, 
    390 U.S. 727
    , 731 (1968) (“There must be sufficient evidence to permit the
    conclusion that the defendant in fact entertained serious doubts as to the truth of his
    publication.”); 
    CACI, 546 F.3d at 300
    (“[T]here must be sufficient evidence to permit the
    conclusion that the defamatory statement was ‘made with [a] high degree of awareness of
    [its] probable falsity.’ ” (quoting 
    Garrison, 379 U.S. at 74
    ) (alterations in original)).
    “The Supreme Court has made ‘clear that reckless conduct is not measured by whether a
    reasonably prudent [person] would have published [or spoken], or would have
    investigated before publishing [or speaking].’ ” 
    CACI, 546 F.3d at 300
    (quoting St.
    
    Amant, 390 U.S. at 731
    ) (alterations in original). “[T]he failure to investigate, ‘where
    there was no reason to doubt the accuracy of the sources used . . . cannot amount to
    reckless conduct.’ ” Church of Scientology Int’l. v. Daniels, 
    992 F.2d 1329
    , 1334 (4th
    Cir. 1993) (quoting 
    Reuber, 925 F.2d at 716
    ). However, “[r]ecklessness may be found
    where there are obvious reasons to doubt the veracity of the informant or the accuracy of
    his reports.” 
    CACI, 546 F.3d at 300
    (quoting Fitzgerald v. Penthouse Int’l, Ltd., 
    691 F.2d 666
    , 670 (4th Cir. 1982)).
    Horne asserts that WTVR published the news story with “actual malice” by
    publishing the story with reckless disregard for the truth. Horne’s arguments can be
    distilled as follows: (1) that WTVR failed to properly investigate whether the felon lied
    on her job application, and, (2) alternatively, that WTVR intentionally ignored a better
    story—that the superintendent knew of her felony and hired her in violation of state
    law—in order to avoid having to redo the completed story implying she lied. Neither
    17
    argument is convincing.
    We conclude that Horne did not provide sufficient evidence of “actual malice” to
    allow this claim to proceed to a jury. WTVR had a history of working with Browder and
    receiving accurate information from him on dozens of stories over several years,
    weighing in favor of his veracity and giving credence to Covil’s testimony that he
    believed Browder implied that Horne lied on her application, and that he believed
    Browder was telling the truth. Covil also testified that the confidential source who
    provided the initial tip for this story was a trusted source. Thus, with “no reason to doubt
    the accuracy of the sources used,” WTVR’s failure to investigate every potential lead
    “cannot amount to reckless conduct.” Church of Scientology 
    Int’l., 992 F.2d at 1334
    (quoting 
    Reuber, 925 F.2d at 716
    ); see also 
    CACI, 546 F.3d at 300
    .
    Horne’s argument that WTVR intentionally ignored the better story also fails. Her
    assertion hinges on the claim that the email from the anonymous source caused WTVR to
    entertain doubts as to the truth of the story that the felon lied on her application, and
    doubts as to Browder’s credibility, either of which she claims is sufficient for finding
    actual malice. However, within the context of the story’s creation from trusted sources,
    the email from the anonymous source does not provide “obvious reasons to doubt the
    veracity of the informant or the accuracy of his reports” because it can be read as
    supporting the narrative of a felon being hired after lying on the application. 
    CACI, 546 F.3d at 300
    (emphasis added) (quoting 
    Fitzgerald, 691 F.2d at 670
    ); see also 
    Rosenblatt, 383 U.S. at 79
    (rejecting a reading of a newspaper column as implying peculation when it
    “could also be read, in context, merely to praise the present administration”).
    18
    Horne also argues that the email from Barnhouse, WTVR’s News Director, telling
    Covil to pursue the story and find out the name of the felon, and the email from Bergazzi,
    an Executive Producer at WTVR, telling Covil to ask his source whether the underlying
    felony was from Tennessee, both indicate that WTVR either should have investigated
    further or had doubts about the truth of the story. These emails do not provide clear and
    convincing evidence that the allegedly defamatory statements were “made with [a] high
    degree of awareness of [its] probable falsity.” 
    CACI, 546 F.3d at 300
    (quoting 
    Garrison, 379 U.S. at 74
    ). Additionally, as both parties have noted, the truth is a better news
    story―that the school system knowingly hired a felon in violation of state law. Without
    evidence to the contrary, common sense counsels that WTVR did not purposely avoid
    researching the better story to simply avoid having to “re-do their already completed
    story.” Appellant’s Br. 51.
    In sum, Horne has not submitted evidence indicating that WTVR acted with
    reckless disregard for the truth, or evidence that WTVR entertained any doubts as to the
    veracity of the story or Browder’s credibility. Thus, even viewed in the light most
    favorable to Horne, no reasonable jury could find, by clear and convincing evidence, that
    WTVR made the defamatory statements with “actual malice.” Therefore, we hold that
    the district court did not err in granting WTVR’s motion for a directed verdict.
    Because our affirmance of the district court’s grant of WTVR’s motion for a
    directed verdict is dispositive in this case, we decline to address WTVR’s argument on
    cross-appeal that the district court erred in denying its motion for summary judgment
    because the news story was not reasonably capable of defaming Horne, see Hatfill v. N.Y.
    19
    Times Co., 
    416 F.3d 320
    , 330 (4th Cir. 2005); Carwile v. Richmond Newspapers, Inc., 
    82 S.E.2d 588
    , 591 (Va. 1954), and decline to address WTVR’s contention that the district
    court erred in determining that the fair report privilege did not apply to the news story,
    see Chapin v. Knight-Ridder, Inc., 
    993 F.2d 1087
    , 1097 (4th Cir. 1993) (stating that the
    fair report privilege applies to “press reports of official actions or proceedings, so long as
    the report was accurate and either complete or fairly abridged” (citing Restatement
    (Second) of Torts § 611 (1977))).
    C.
    Horne also asserts that the district court erred in denying her pre-trial motion to
    compel WTVR to disclose the identity of its confidential source. We again disagree.
    This Court reviews a denial of a motion to compel for abuse of discretion. See Ashcroft
    v. Conoco, Inc., 
    218 F.3d 282
    , 287 (4th Cir. 2000).
    This Court recognizes a qualified “journalist’s privilege” that protects the media
    from revealing confidential sources, including in public official defamation cases. See
    LaRouche v. Nat’l Broad. Co., Inc., 
    780 F.2d 1134
    , 1139 (4th Cir. 1986); see also Brown
    v. Commonwealth of Virginia, 
    204 S.E.2d 429
    , 431 (Va. 1974). A plaintiff must satisfy
    the three-part balancing test set forth in LaRouche to overcome this privilege: “(1)
    whether the information is relevant, (2) whether the information can be obtained by
    alternative means, and (3) whether there is a compelling interest in the information.”
    
    LaRouche, 780 F.2d at 1139
    (citation omitted); see also 
    Ashcroft, 218 F.3d at 287
    (describing the “reporter’s privilege” and applying the test from LaRouche).
    Horne argues that the district court should have compelled WTVR to reveal the
    20
    confidential source that provided Covil the initial tip that a felon was hired and then fired
    by the school system. The district court denied the motion after determining that Horne
    failed to provide a sufficiently compelling interest in the source’s identity because “[t]he
    plaintiff admits her conviction, her hiring, and her firing,” and “[h]er allegations of
    defamation come not from the underlying facts provided by the confidential source, but
    from how the defendant told the story.” J.A. 592. Horne counters by alleging that
    revealing the identity of the confidential source may provide evidence of “actual malice”
    in that the source may have known that Horne did not lie on her job application or the
    source may be untrustworthy. However, there is no evidence that disclosure of the source
    would reveal this information―it is merely speculation.
    Therefore, we conclude that the district court did not abuse its discretion in
    denying Horne’s motion to compel disclosure of the confidential source because Horne
    did not provide a sufficiently compelling interest in the identity of the source to overcome
    the competing First Amendment concerns.
    III.
    For the aforementioned reasons, the judgment of the district court is hereby
    AFFIRMED.
    21
    

Document Info

Docket Number: 17-1483

Citation Numbers: 893 F.3d 201

Filed Date: 6/18/2018

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (25)

Jeffrey Kassel v. Gannett Co., Inc., D/B/A \"Usa Today,\" , 875 F.2d 935 ( 1989 )

Steven J. Hatfill v. The New York Times Company, and ... , 416 F.3d 320 ( 2005 )

Leonard Jenoff v. The Hearst Corporation , 644 F.2d 1004 ( 1981 )

Arctic Company, Ltd. T/a Iroquois Research Institute v. ... , 624 F.2d 518 ( 1980 )

fed-sec-l-rep-p-98237-40-fed-r-evid-serv-18-michael-f-malone , 26 F.3d 471 ( 1994 )

hurshel-l-ashcraft-v-conoco-incorporated-cory-reiss-and-kayo-oil , 218 F.3d 282 ( 2000 )

shirley-g-parker-individually-and-to-the-use-of-syreeta-parker-a-minor , 900 F.2d 772 ( 1990 )

Church of Scientology International v. Mitchell Daniels , 992 F.2d 1329 ( 1993 )

James W. Fitzgerald v. Penthouse International, Ltd. ... , 691 F.2d 666 ( 1982 )

Davis v. Borskey , 660 So. 2d 17 ( 1995 )

roger-chapin-help-hospitalized-veterans-incorporated-v-knight-ridder , 993 F.2d 1087 ( 1993 )

36-fair-emplpraccas-1800-36-empl-prac-dec-p-34980-indira-gairola-v , 753 F.2d 1281 ( 1985 )

vincent-p-foretich-doris-foretich-v-capital-citiesabc-inc-american , 37 F.3d 1541 ( 1994 )

melvin-d-reuber-v-food-chemical-news-inc-and-litton-industries-inc , 925 F.2d 703 ( 1991 )

Ocala Star-Banner Co. v. Damron , 91 S. Ct. 628 ( 1971 )

Gertz v. Robert Welch, Inc. , 94 S. Ct. 2997 ( 1974 )

New York Times Co. v. Sullivan , 84 S. Ct. 710 ( 1964 )

Garrison v. Louisiana , 85 S. Ct. 209 ( 1964 )

Rosenblatt v. Baer , 86 S. Ct. 669 ( 1966 )

Curtis Publishing Co. v. Butts , 87 S. Ct. 1975 ( 1967 )

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