80 N.Y.2d 429, *; 605 N.E.2d 344, **;

590 N.Y.S.2d 857, ***; 1992 N.Y. LEXIS 3900

 

 

Barnet L. Liberman, Appellant, v. Leonard Gelstein, Respondent.

 

No. 265

 

COURT OF APPEALS OF NEW YORK

 

80 N.Y.2d 429; 605 N.E.2d 344; 590 N.Y.S.2d 857; 1992 N.Y. LEXIS 3900; 21 Media L. Rep. 1079

 

 

October 22, 1992, Argued 

November 24, 1992, Decided

 

PRIOR HISTORY:   

 

Appeal, by permission of the Appellate Division of the Supreme Court in the First Judicial Department, from an order of that Court, entered December 12, 1991, which affirmed an order of the Supreme Court (David B. Saxe, J.), entered in New York County, insofar as it granted a motion by defendant Leonard Gelstein for summary judgment dismissing plaintiff's complaint.

 

Liberman v Gelstein, 178 AD2d 215, affirmed.

 

DISPOSITION: Order affirmed, with costs.

 

 

CASE SUMMARY

 

PROCEDURAL POSTURE: The Appellate Division of the Supreme Court in the First Judicial Department (New York) affirmed an order that granted summary judgment in favor of defendant tenant, and dismissed plaintiff landlord's slander action against the tenant. The landlord appealed. 

 

OVERVIEW: A landlord contended that a tenant, who was a member of the tenant association's board of governors, committed slander per se when he inquired of another association board member whether the landlord paid bribes to the police, and when the tenant told building employees that the landlord threatened to kill him and his family. The tenant invoked the common interest qualified privilege against the bribe statement, and asserted that the threat statements were either true, not defamatory or never made. The court held that the threat statements were not slanderous per se. Because the landlord did not prove special damages caused by the statements, that claim was properly dismissed. The court also held that the bribe statement was slanderous per se because it charged the landlord with the serious crime of bribery. The landlord did not have to prove special damages to maintain that claim. However, the court held that the tenant had a qualified privilege in making the statement because it was a communication made by the tenant to another person on a subject in which both had an interest. There was malice in the bribe statement because it was not a public announcement. 

 

OUTCOME: The court affirmed the dismissal of the landlord's slander action on summary judgment. 

 

CORE TERMS: malice, tenant, cause of action, slander, falsity, bribery, landlord, common interest, board of governors, accusation, qualified privilege, reckless disregard, common-law, defamation action, harassment, spite, conversation, slanderous, privileged, colleague, cop, triable issue, defamatory, actionable, issue of fact, serious crime, summary judgment, reputation, profession, high degree

 

LexisNexis(R) Headnotes  Hide Headnotes

 

 

Torts > Defamation & Invasion of Privacy > Slander

 

HN1 Slander is not actionable unless the plaintiff suffers special damage. Special damages contemplate the loss of something having economic or pecuniary value.  More Like This Headnote | Shepardize: Restrict By Headnote 

 

 

Torts > Defamation & Invasion of Privacy > Slander

 

HN2 The four established exceptions to the rule that slander is not actionable unless the plaintiff suffers special damage consist of statements: (1) charging plaintiff with a serious crime; (2) that tend to injure another in his or her trade, business or profession; (3) that plaintiff has a loathsome disease; or (4) imputing unchastity to a woman.  More Like This Headnote | Shepardize: Restrict By Headnote 

 

 

Torts > Defamation & Invasion of Privacy > Slander

 

HN3 When statements fall within one of the "slander per se" categories, the law presumes that damages will result, and they need not be alleged or proven.  More Like This Headnote | Shepardize: Restrict By Headnote 

 

 

Torts > Defamation & Invasion of Privacy > Absolute Privileges

 

 

Torts > Defamation & Invasion of Privacy > Qualified Privileges

 

HN4 When compelling public policy requires that the speaker be immune from suit, the law affords an absolute privilege, while statements fostering a lesser public interest are only conditionally privileged.  More Like This Headnote | Shepardize: Restrict By Headnote 

 

 

Torts > Defamation & Invasion of Privacy > Qualified Privileges

 

HN5 The shield provided by a qualified privilege is dissolved if a plaintiff demonstrates that the defendant spoke with "malice."  More Like This Headnote | Shepardize: Restrict By Headnote 

 

 

 Hide Headnotes / Syllabus

 

HEADNOTES: Libel and Slander - Slander Per Se - Statement Charging Serious Crime - Bribery as Serious Crime

 

1. In a defamation action commenced by plaintiff landlord against defendant, a tenant in plaintiff's building who is on the board of governors of the tenants' association, defendant's alleged statement that "[t]here is a cop on the take from [plaintiff]" is slanderous per se since it charges a serious crime--bribery. Thus, the alleged statement is actionable without the need to establish special harm.

 

Libel and Slander - Slander Per Se - Statement Charging Serious Crime - Harassment Not Serious Crime

 

2. In a defamation action commenced by plaintiff landlord against defendant, a tenant in plaintiff's building who is on the board of governors of the tenants' association, defendant's alleged statement that "[plaintiff] ... threatened to kill me and my family" is not slanderous per se on the ground that it falsely attributes to plaintiff the commission of the crime of harassment. Harassment is a relatively minor offense in the New York Penal Law and thus the harm to the reputation of a person falsely accused of committing harassment would be correspondingly insubstantial; it is, therefore, not slanderous per se to claim that someone committed harassment.

 

Libel and Slander - Slander Per Se - Statement Tending to Injure Another in His or Her Business - Statement Charging Landlord with Harassment

 

3. In a defamation action commenced by plaintiff landlord against defendant, a tenant in plaintiff's building who is on the board of governors of the tenants' association, defendant's alleged statement that "[plaintiff] ... threatened to kill me and my family" is not slanderous per se as tending to harm plaintiff in his business as a property owner since the statement is unrelated to plaintiff's status as a landlord.

 

Libel and Slander - Privilege - Conditional "Common Interest" Privilege

 

4. In a defamation action commenced by plaintiff landlord against defendant, a tenant in plaintiff's building who is on the board of governors of the tenants' association, defendant's alleged statement to a colleague on the board of governors that "[t]here is a cop on the take from [plaintiff]", although slanderous per se, falls within the "common interest" privilege as a communication made by one person to another upon a subject in which both have an interest. Defendant and his colleague were members of the governing board of an association formed to protect the tenants' interests. If plaintiff was in fact bribing the police so that his cars could occupy spaces in front of the building, that would be inimical to those interests. Thus, defendant had a qualified right to communicate his suspicions--though defamatory of plaintiff--to his colleague.

 

Libel and Slander - Malice - Constitutional Standard - High Degree of Awareness of Probable Falsity

 

5. In a defamation action commenced by plaintiff landlord against defendant, a tenant in plaintiff's building who is on the board of governors of the tenants' association, there is no triable malice issue under the constitutional standard that would defeat the qualified "common interest" privilege which attached to defendant's alleged statement to a colleague on the board of governors that "[t]here is a cop on the take from [plaintiff]". Under the constitutional malice standard, the plaintiff must demonstrate that the conditionally privileged statements were made with a high degree of awareness of their probable falsity. Here, although defendant admitted that he did not know whether the bribery charge was true, there is a critical difference between not knowing whether something is true and being highly aware that it is probably false. Only the latter will establish reckless disregard in a defamation action. Moreover, plaintiff's mere characterization of the sources of defendant's statement as "disgruntled" building employees is insufficient to raise a triable issue.

 

Libel and Slander - Malice - Common-Law Standard - Spite or Ill Will as Motivation for Defamatory Statement

 

6. In a defamation action commenced by plaintiff landlord against defendant, a tenant in plaintiff's building who is on the board of governors of the tenants' association, there is no triable malice issue under the common-law standard that would defeat the qualified "common interest" privilege which attached to defendant's alleged statement to a colleague on the board of governors that "[t]here is a cop on the take from [plaintiff]". Under the common-law malice standard, malice means spite or ill will that is referable not to defendant's general feelings about plaintiff, but to the speaker's motivation for making the defamatory statements. A triable issue is raised only if a jury could reasonably conclude that malice was the one and only cause for the publication. Here, defendant did not make a public announcement of his suspicions--from which an inference could be drawn that his motive was to defame plaintiff--but relayed them to a colleague who was in a position to investigate. The conversation was within the common interest of defendant and his colleague on the governing board, and there is nothing in the record from which a reasonable jury could find that defendant was not seeking to advance that common interest.

 

COUNSEL: Dechert Price & Rhoads, New York City (Robert A. Cohen and Owen D. Kalt of counsel), for appellant. I. The Court below ruled improperly that, although Gelstein admits he had no personal knowledge as to whether his defamatory statement was true and merely makes the unsupported claim that he relied on informants, there is no issue of fact as to whether Gelstein spoke with reckless disregard as to truth or falsity. ( Loughry v Lincoln First Bank, 67 NY2d 369; McManus v McCarthy, 586 F Supp 302; St. Amant v Thompson, 390 US 727; 600 W. 115th St. Corp. v Von Gutfeld, 169 AD2d 56.) II. The Court below ruled inaccurately and illogically that Gelstein's false accusation that Liberman committed the crime of harassment by threatening to murder Gelstein and his family was merely "rhetorical hyperbole" and not actionable. ( People v Dorns, 88 Misc 2d 1064; Rand v New York Times Co., 75 AD2d 417; Held v Pokorny, 583 F Supp 1038; Grass v News Group Publs., 570 F Supp 178; Greenbelt Publ. Assn. v Bresler, 398 US 6.) III. The Court below overlooked the rule that ill will is a form of "malice" which destroys the qualified privilege from liability for defamation, and overlooked significant evidence that Gelstein's words were motivated by ill will. ( Loughry v Lincoln First Bank, 67 NY2d 369; Stillman v Ford, 22 NY2d 48; Arrigoni v Velella, 110 AD2d 601; Rinaldi v Viking Penguin, 52 NY2d 422.)

 

Gordon & Silber, P. C., New York City (Peter Pearson Traub, Jr., of counsel), for respondent. I. The Court below properly ruled that in order to establish a tenable action, appellant would need to prove that the alleged statements of respondent were slanderous per se. ( Matherson v Marchello, 100 AD2d 233; Grinaldo v Meusburger, 34 AD2d 586, 27 NY2d 598; Ideal Publ. Corp. v Creative Features, 59 AD2d 862; Van Lengen v Parr, 136 AD2d 964.) II. The statements in the second cause of action were in fact inquiries not expressing a false fact which could give rise to actionable slander, and, in addition the statements contained in the second cause of action were protected by the qualified privilege. Furthermore, there is no evidence contained in the record on appeal from which the court could reasonably infer that the statements contained in the second cause of action were made with ill will or malice. ( Immuno AG. v Moor-Jankowski, 77 NY2d 235; Santavicca v City of Yonkers, 132 AD2d 656; Byam v Collins, 111 NY 143; Kilcoin v Wolansky, 75 AD2d 1, 52 NY2d 995; Shapiro v Health Ins. Plan, 7 NY2d 56; Dunajewski v Bellmore-Merrick Cent. High School Dist., 138 AD2d 557; Matter of Kantor v Pavelchak, 134 AD2d 352; Licitra v Faraldo, 130 AD2d 555; Garson v Hendlin, 141 AD2d 55.) III. The statements contained within the fifth cause of action are not actionable as they are mere rhetorical hyperbole. ( Rand v New York Times Co., 75 AD2d 417.)

 

JUDGES: Acting Chief Judge Simons and Judges Titone, Hancock, Jr., and Bellacosa concur with Judge Kaye; Judge Smith dissents in part and votes to modify in a separate opinion.

 

Order affirmed, with costs.

 

OPINIONBY: Kaye, J.

 

OPINION:  [*432]   [**346]

 

 [***859]  In this action for slander, we consider whether the plaintiff has stated a viable claim without any showing of special damages, whether the alleged slander is protected by qualified privilege, and whether there is a triable issue of fact as to malice. We conclude that plaintiff's claims were correctly dismissed on summary judgment.

 

I.

 

Before us is one of eight actions, consolidated for disposition by the motion court, centering on a luxury apartment building in Manhattan. Plaintiff, Barnet L. Liberman, is the building's landlord. Defendant, Leonard Gelstein (a tenant), is on the board of governors of the tenants' association. Disputes between the landlord and tenants of the building erupted nearly a decade ago, when the tenants organized opposition to the landlord's application for a rent increase, and they have continued and proliferated through the conversion of the building to cooperative ownership (see, e.g., Matter of 421 Hudson St. Tenants Assn. v Abrams, 140 Misc 2d 166).

 

This defamation action against Gelstein is one of three suits brought by Liberman against individual members of the tenant association's board of governors. Gelstein has countersued Liberman and his wife for misconduct arising from a criminal  [*433]  complaint filed by Mrs. Liberman, which apparently resulted in Gelstein's overnight incarceration.

 

The present complaint alleged five causes of action sounding in slander. Only two--the second and fifth--are pressed by plaintiff on this appeal. The other causes of action involving, for example, accusations by Gelstein that Liberman charged an illegal $ 10 monthly dog rent and stole electricity from the building, have over the years been dropped.

 

In his second cause of action, plaintiff alleged that in July 1986, the following conversation took place between defendant and another tenant of the building, Robert Kohler.

 

"Gelstein: Can you find out from your friend at the precinct which cop is on the take from Liberman?

 

"Kohler: What are you talking about?

 

"Gelstein: There is a cop on the take from Liberman. That's why none of the building's cars ever get tickets--they can park anywhere because Liberman's paid them off. He gives them a hundred or two hundred a week."

 

The fifth cause of action alleged that in May 1986 defendant made the following statement in the presence of employees of the building:

 

"Liberman threw a punch at me. He screamed at my wife and daughter. He called my daughter a slut and threatened to kill me and my family."

 

Plaintiff claimed $ 5 million damages on each cause of action for injury to his reputation and emotional distress. After discovery, defendant sought summary judgment dismissing the complaint. On the second cause of action, defendant invoked the "common interest" qualified privilege, characterizing his conversation with Kohler,  [***860]  a colleague on the board of governors, as an inquiry designed to uncover wrongdoing by the landlord affecting tenants. At his deposition, defendant testified that several vehicles operated by the building's management regularly parked in front of the building beyond the legal limit but never received parking summonses. He further testified that he was told by two building employees, whom he identified, that Liberman was bribing the police to avoid parking tickets. Defendant admitted that he did not know whether the allegations were true, but testified that they  [*434]  "sounded truthful" to him. Accordingly, defendant testified that he approached Kohler--whose friend was captain of the local police precinct--in an effort to discover whether the allegations were true.

 

Plaintiff responded that there was an issue of fact on malice, which if proved at trial, would defeat the qualified privilege. Plaintiff argued that malice of the common-law variety (spite or ill will) could be inferred from defendant's over-all conduct toward plaintiff, including one occasion in July 1987 when defendant threw a lit firecracker into his car and another in May 1986 when he pounded on the car's windows and attempted to rip out the windshield wiper. Moreover, plaintiff argued, malice of the constitutional variety (knowledge of falsity or reckless disregard for truth or falsity) could be found in defendant's concession that he had no actual knowledge of bribery and the lack of trustworthiness of his sources, "disgruntled" building employees.

 

On the fifth cause of action, defendant argued that the statements were either true, not defamatory or never made.

 

In dismissing the second cause of action, Supreme Court agreed with defendant that the statements were qualifiedly privileged and plaintiff failed to sustain his burden of raising a triable issue on malice. The court also held that the statements comprising the fifth cause of action could only have been understood by the recipients, who were familiar with the parties' history of disagreements, as rhetorical hyperbole.

 

The Appellate Division affirmed, agreeing with Supreme Court's reasoning. One Justice, who would have reinstated the second cause of action, dissented in part. He was not "entirely persuaded" that the statements were qualifiedly privileged, and thought that in any event defendant's deposition testimony that he did not know whether the bribery charge was true was itself sufficient to raise a triable issue whether the statements were made with reckless disregard as to their truth or falsity.

 

The Appellate Division granted leave, and we affirm.

 

II.

 

HN1Slander as a rule is not actionable unless the plaintiff suffers special damage (see, Aronson v Wiersma, 65 NY2d 592, 594; Matherson v Marchello, 100 AD2d 233, 236 [Titone, J. P.]; Restatement [Second] of Torts [Restatement] § 575). Special damages contemplate "the loss of something having economic  [*435]  or pecuniary value" (Restatement § 575, comment b; see, Prosser and Keeton, Torts [Prosser] § 112, at 794 [5th ed]). Plaintiff has not alleged special damages, and thus his slander claims are not sustainable unless they fall within one of the exceptions to the rule.

 

HN2The four established exceptions (collectively "slander per se") consist of statements (i) charging plaintiff with a serious crime; (ii) that tend to injure another in his or her trade, business or profession; (iii) that plaintiff has a loathsome disease; or (iv) imputing unchastity to a woman (see, Moore v Francis, 121 NY 199, 203; Privitera v Town of Phelps, 79 AD2d 1, 3 [Simons, J.]; Civil Rights Law § 77; 2 Seelman, Libel and Slander in the State of New York, at 869-907 [1964]; Restatement § 570-573; Smolla, Defamation § 7.05). HN3When statements fall within one of these categories,  [**348]   [***861]  the law presumes that damages will result, and they need not be alleged or proven. n1

 

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n1 The presumed-damages rule has been found unconstitutional in certain First Amendment cases ( Gertz v Robert Welch, Inc., 418 US 323, 349) and criticized for use in defamation cases generally (see, e.g., Anderson, Reputation, Compensation, and Proof, 25 Wm & Mary L Rev 747 [1984]; Uniform Defamation Act [Feb. 6, 1992 draft] § 9, and comment thereto). Our disposition makes it unnecessary to consider the issue here.

 

 

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Plaintiff claims that both sets of statements were slanderous per se inasmuch as they charged him with criminal conduct. Not every imputation of unlawful behavior, however, is slanderous per se. "With the extension of criminal punishment to many minor offenses, it was obviously necessary to make some distinction as to the character of the crime, since a charge of a traffic violation, for example, would not exclude a person from society, and today would do little, if any, harm to his [or her] reputation at all" (Prosser § 112, at 789). Thus, the law distinguishes between serious and relatively minor offenses, and only statements regarding the former are actionable without proof of damage (see, Restatement § 571, comment g [list of crimes actionable as per se slander includes murder, burglary, larceny, arson, rape, kidnapping]).

 

We agree with plaintiff that defendant's alleged statement that "[t]here is a cop on the take from Liberman" charges a serious crime--bribery (see, Penal Law § 200.00; People v Tran, 80 NY2d 170). Accordingly, the statements constituting the second cause of action are actionable without the need to establish special harm, and absent any privilege would be sufficient to go to a jury.  [*436] 

 

We disagree, however, with plaintiff's contention that the statement "Liberman ... threatened to kill me and my family" was slanderous per se. n2 Plaintiff claims these words falsely attributed to him the commission of the crime of harassment (see, Penal Law § 240.25; People v Dorns, 88 Misc 2d 1064 [threats to kill]). Harassment is a relatively minor offense in the New York Penal Law--not even a misdemeanor--and thus the harm to the reputation of a person falsely accused of committing harassment would be correspondingly insubstantial. Hence, even if we agreed with plaintiff that the statement would not have been construed by the listeners as rhetorical hyperbole, the cause of action must nevertheless be dismissed because it is not slanderous per se to claim that someone committed harassment.

 

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n2 On this appeal, this is the only portion of the fifth cause of action raised by plaintiff.

 

 

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Plaintiff alternatively argues that the statements in the fifth cause of action tended to harm him in his business as a property owner, and thus are actionable under the "trade, business or profession" exception. That exception, however, is "limited to defamation of a kind incompatible with the proper conduct of the business, trade, profession or office itself. The statement must be made with reference to a matter of significance and importance for that purpose, rather than a more general reflection upon the plaintiff's character or qualities" (Prosser § 112, at 791). Thus, "charges against a clergyman of drunkenness and other moral misconduct affect his fitness for the performance of the duties of his profession, although the same charges against a business man or tradesman do not so affect him" (Restatement § 573, comment c). The statements at issue are unrelated to plaintiff's status as a landlord, and therefore do not fall into the "trade, business or profession" exception (see, Aronson v Wiersma, 65 NY2d, at 594, supra).

 

In sum, the second cause of action is on its face sustainable without special damages because it involves charges of serious crime, and the fifth cause of action was correctly dismissed.

 

III.

 

We next consider whether the courts below properly concluded that defendant's conversation with Kohler was conditionally  [**349]   [***862]  privileged and that plaintiff failed to raise an issue of fact on malice.  [*437]

 

Courts have long recognized that the public interest is served by shielding certain communications, though possibly defamatory, from litigation, rather than risk stifling them altogether (see, Bingham v Gaynor, 203 NY 27, 31). HN4When compelling public policy requires that the speaker be immune from suit, the law affords an absolute privilege, while statements fostering a lesser public interest are only conditionally privileged (see, 600 W. 115th St. Corp. v Von Gutfeld, 80 NY2d 130, 135-136; Park Knoll Assocs. v Schmidt, 59 NY2d 205, 208-209; Toker v Pollak, 44 NY2d 211, 218-220).

 

One such conditional, or qualified, privilege extends to a "communication made by one person to another upon a subject in which both have an interest" ( Stillman v Ford, 22 NY2d 48, 53). This "common interest" privilege (see, Restatement § 596) has been applied, for example, to employees of an organization (see, Loughry v Lincoln First Bank, 67 NY2d 369, 376), members of a faculty tenure committee ( Stukuls v State of New York, 42 NY2d 272) and constituent physicians of a health insurance plan ( Shapiro v Health Ins. Plan, 7 NY2d 56, 60-61). The rationale for applying the privilege in these circumstances is that so long as the privilege is not abused, the flow of information between persons sharing a common interest should not be impeded.

 

We thus agree with the motion court and Appellate Division that defendant's conversation with Kohler was conditionally privileged (see, Restatement § 596, comment d ["Tenants in common ... are included within the rule stated in this Section as being conditionally privileged to communicate among themselves matter defamatory of others which concerns their common interests"]). Gelstein and Kohler were members of the governing body of an association formed to protect the tenants' interests. If Liberman was in fact bribing the police so that his cars could occupy spaces in front of the building, that would be inimical to those interests. Thus, Gelstein had a qualified right to communicate his suspicions--though defamatory of Liberman--to Kohler.

 

HN5The shield provided by a qualified privilege may be dissolved if plaintiff can demonstrate that defendant spoke with "malice" (see, Park Knoll Assocs. v Schmidt, 59 NY2d, at 211, supra). Under common law, malice meant spite or ill will (see, Stillman v Ford, 22 NY2d, at 53, supra; Shapiro v Health Ins. Plan, 7 NY2d, at 61, supra). In New York Times Co. v Sullivan (376 US 254), however, the Supreme Court established an  [*438]  "actual malice" standard for certain cases governed by the First Amendment: "knowledge that [the statement] was false or ... reckless disregard of whether it was false or not" (376 US, at 279-280). Consequently, the term "malice" has become somewhat confused (see, Mahoney v Adirondack Publ. Co., 71 NY2d 31, 36, n 1; see also, Greenbelt Publ. Assn. v Bresler, 398 US 6, 10 [trial court erred in First Amendment case by charging jury under common-law malice standard]). Indeed, as the Supreme Court itself recently acknowledged ( Masson v New Yorker Mag., 501 US,, 111 S Ct 2419, 2429-2430):

 

"Actual malice under the New York Times standard should not be confused with the concept of malice as an evil intent or a motive arising from spite or ill will ... We have used the term actual malice as a shorthand to describe the First Amendment protections for speech injurious to reputation and we continue to do so here. But the term can confuse as well as enlighten. In this respect, the phrase may be an unfortunate one."

 

 [**350]   [***863]  Nevertheless, malice has now assumed a dual meaning, and we have recognized that the constitutional as well as the common-law standard will suffice to defeat a conditional privilege (see, Loughry v Lincoln First Bank, 67 NY2d, at 376, supra; O'Rorke v Carpenter, 55 NY2d 798, 799; Stillman v Ford, 22 NY2d, at 53, supra; see also, Restatement § 600, 603, comment a).

 

Under the Times malice standard, the plaintiff must demonstrate that the "statements [were] made with [a] high degree of awareness of their probable falsity" ( Garrison v Louisiana, 379 US 64, 74). In other words, there "must be sufficient evidence to permit the conclusion that the defendant in fact entertained serious doubts as to the truth of [the] publication" ( St. Amant v Thompson, 390 US 727, 731; see also, Restatement § 600, comment b).

 

Applying these principles, we conclude that there is no triable malice issue under the Times standard. Although the dissenter below suggested that Gelstein's admission that he did not know whether the bribery charge was true raised a triable issue on malice, there is a critical difference between not knowing whether something is true and being highly aware that it is probably false. Only the latter establishes reckless disregard in a defamation action. Moreover, as the motion court correctly observed, plaintiff's mere characterization  [*439]  of Gelstein's informants as "disgruntled" is insufficient to raise a triable issue. Although plaintiff criticizes defendant for not producing affidavits from the informants--arguing that "it has never been factually established that Gelstein had any source"--it was plaintiff's burden to raise a factual issue on malice, and he did not seek to depose the employees either. n3 In sum, this record is insufficient to raise a triable issue of fact under the Times standard of malice.

 

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n3 Plaintiff's appellate argument that he needs further discovery (see, dissenting opn, at 442) is unavailing. Almost three years elapsed between defendant's assertion of the common-interest privilege in his verified answer and the motion for summary judgment. Indeed, plaintiff never claimed a need for discovery in opposition to the motion (see, CPLR 3212 [f]).

 

 

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Similarly, there is insufficient evidence of malice under the common-law definition. A jury could undoubtedly find that, at the time Gelstein discussed his bribery suspicions with Kohler, Gelstein harbored ill will toward Liberman. In this context, however, spite or ill will refers not to defendant's general feelings about plaintiff, but to the speaker's motivation for making the defamatory statements (see, Restatement § 603, and comment a; Stukuls v State of New York, 42 NY2d, at 281-282, supra; Stillman v Ford, 22 NY2d, at 53, supra). If the defendant's statements were made to further the interest protected by the privilege, it matters not that defendant also despised plaintiff. Thus, a triable issue is raised only if a jury could reasonably conclude that "malice was the one and only cause for the publication" ( Stukuls v State of New York, 42 NY2d, at 282, supra).

 

Plaintiff has not sustained that burden. Significantly, Gelstein did not make a public announcement of his suspicions--from which an inference could be drawn that his motive was to defame Liberman--but relayed them to a colleague who was in a position to investigate. As noted, the conversation was within the common interest of Gelstein and Kohler, and there is nothing in this record from which a reasonable jury could find that Gelstein was not seeking to advance that common interest.

 

Thus, the courts below properly concluded that defendant's conversation with Kohler was qualifiedly privileged, and plaintiff failed to raise a fact issue on malice. n4

 

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n4 The dissent's contrary conclusion is puzzling in light of its acknowledgment that the "record is presently lacking any evidence to support the conclusion that defendant knew that the [bribery] accusation was false, that there was a high degree of probable falsity, or that he entertained serious doubts as to its truthfulness." (Dissenting opn, at 442.) Moreover, the purported factual issue whether the bribery "accusation was stated as a matter of fact or as part of an inquiry" (dissenting opn, at 442) goes not to malice, but to whether there is an actionable statement in the first instance. Insofar as the dissent concludes that the parties' "acrimonious relationship" is sufficient to raise a triable issue under the common-law standard (dissenting opn, at 442), we have observed that the "existence of earlier disputes between the parties is not evidence of malice" ( Shapiro v Health Ins. Plan, 7 NY2d, at 64, supra).

 

 

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 [**351]   [***864]  Accordingly, the order of the Appellate Division should be affirmed, with costs.

 

DISSENTBY: Smith, J.

 

DISSENT: (Dissenting in part). Because there is an issue of fact as to whether defendant's statements accusing the plaintiff of bribery either resulted from a reckless disregard for the truth or falsity of the statements or were motivated solely by malice, the order of the Appellate Division should be modified by denying so much of defendant's motion for summary judgment as sought to dismiss the second cause of action and reinstating that cause of action. Therefore, I dissent with respect to the second cause of action.

 

In this defamation action, the plaintiff landlord and defendant tenant, a board member of the tenants' association, have been involved in continuous disputes over the last 10 years concerning rent increases and the conversion of the property to cooperative ownership. Numerous civil and criminal actions involving these parties and/or others have resulted therefrom.

 

The second cause of action is based upon the following conversation between the defendant and a fellow board member:

 

"Gelstein: Can you find out from your friend at the precinct which cop is on the take from Liberman?

 

"Kohler: What are you talking about?

 

"Gelstein: There is a cop on the take from Liberman. That's why none of the building's cars ever get tickets--they can park anywhere because Liberman's paid them off. He gives them a hundred or two hundred a week."

 

There is no dispute that these statements were made. However, defendant contends that these were not statements, but rather his effort on behalf of the tenants' association to investigate what he had supposedly learned from named plaintiff's employees. He had no knowledge of the truth or falsity of this bribery accusation. Accordingly, defendant asserted  [*441]  that, if defamatory, the statements were within the ambit of the common interest qualified privilege and that he had acted "without malice or negligence."

 

Two issues are raised here concerning the second cause of action. The first is whether or not there was a qualified privilege to make the statement. The second is, assuming there was a qualified privilege, whether there has been raised a sufficient factual showing of malice, knowledge of the falsity of the statement, or reckless disregard of its truth or falsity to defeat the motion for summary judgment ( Loughry v Lincoln First Bank, 67 NY2d 369, 376).

 

The majority has properly concluded that there is a qualified privilege here. Moreover, the plaintiff does not challenge the assertion that the statement was qualifiedly privileged.

 

Given this qualified privilege, the burden shifts to the plaintiff to show that the statement is nevertheless actionable because it is false and motivated by malice ( Toker v Pollak, 44 NY2d 211, 219; Park Knoll Assocs. v Schmidt, 59 NY2d 205, 209; Restatement [Second] of Torts § 613). As the law has developed in this area, "malice" has been assigned different meanings based upon the context. n1 At common law, malice has been based upon a determination that the statement is false, that the defendant knew  [**352]   [***865]  it to be false when published and, therefore, the defendant acted in bad faith ( Lovell Co. v Houghton, 116 NY 520). In other words, actual malice at common law meant " 'personal spite or ill will, or culpable recklessness or negligence' " ( Hoeppner v Dunkirk Print. Co., 254 NY 95, 106; see also, Shapiro v Health Ins. Plan, 7 NY2d 56, 61). For malice to be found, the fact that the statement was false had to be augmented by defendant's desire to injure the plaintiff (id.). For purposes of a constitutional analysis, actual malice has been defined as "with knowledge that [the statement] was false or with reckless disregard of whether it was false or not" ( New York Times Co. v Sullivan, 376 US 254, 280; Trails W. v Wolff, 32 NY2d 207, 219). The standard articulated in New York Times Co. v Sullivan (supra) was expanded to consider whether there was a "high degree of awareness" of the statement's probable falsity ( Garrison v Louisiana, 379 US 64, 74) or that the defendant "in fact" entertained "serious doubts" as to its truth ( St. Amant v  [*442]  Thompson, 390 US 727, 731), as we acknowledged in Pauling v National Review (22 NY2d 818, 819). These expansions of the constitutional standard evoke the common-law concept of bad faith. Indeed, this Court has recognized that consideration of malice in the constitutional and the common-law sense is proper in determining whether a qualified privilege is to be given effect ( Loughry v Lincoln First Bank, 67 NY2d 369, 376, supra [conditional privilege may be negated by "statements published with malice or with knowledge of their falsity or reckless disregard as to their truth or falsity"]). n2 This dual analysis is reflected in the New York Pattern Jury Instructions on qualified privilege (see, PJI 3:32 [1991 Supp]).

 

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n1 In response to the divergent meanings attributed to the term "malice" in the defamation area, the Restatement (Second) of Torts has abandoned its use for the more comprehensive "abuse of privilege" terminology.

n2 It should be noted that in Loughry the jury found, inter alia, that the defendants acted "solely from malice intend[ed] to injure plaintiff" (supra, at 376).

 

 

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In light of the foregoing, the issue of malice in the case at bar should be reviewed under both standards. Under the constitutional standard, there is an issue of fact as to whether there was a reckless disregard for the truth or falsity of the bribery accusation or whether defendant, in good faith, was attempting to ascertain the truth or falsity of the accusation. The record is presently lacking any evidence to support the conclusion that defendant knew that the accusation was false, that there was a high degree of awareness of probable falsity, or that he entertained serious doubts as to its truthfulness. Defendant denies any knowledge as to its truth or falsity but maintains that he believed the accusation to be true because the source was two of plaintiff's employees, whom he identified. (These persons have not yet been deposed.) However, as to whether the defendant may have shown a reckless disregard for the truth, it is significant that the defendant and Kohler, the person to whom the statement was first made, dispute whether the accusation was stated as a matter of fact or as part of an inquiry. In Kohler's version of the conversation, the inquiry contained therein pertained to the identification of the bribed police officer, not the truth of the accusation. Clearly, there is an issue of fact here that may be resolved by further discovery or that may require determination by a trier of fact.

 

Turning to a common-law analysis, there is sufficient evidence in this record to create an issue of fact as to whether defendant's statements were motivated solely by spite or ill will. The parties' acrimonious relationship is accentuated by,  [*443]  inter alia, lawsuits, defendant tossing a possibly lit firecracker into plaintiff's vehicle, and an incident where defendant pounded on plaintiff's vehicle while occupied by plaintiff, his wife, and their children. And, as discussed above, if it is found that defendant stated the accusation as fact, spite or ill will may have been the sole motivation.

 

 [**353]   [***866]  Therefore, if plaintiff proves that the accusation is false, the foregoing considerations suffice to create issues of fact as to malice under both standards.

 

The conclusion that there is no triable issue of fact here because a jury could not reasonably conclude that malice alone was the motivation for the statement is not supported by the record. Plaintiff indeed has the burden of proving that malice alone was the cause for the publication ( Stukuls v State of New York, 42 NY2d 272, 281-282). However, having presented a basis for that conclusion, plaintiff should be afforded an opportunity to present such evidence to a trier of fact that the actions of the defendant were duplicitous and motivated solely by malice (see, Stukuls v State of New York, supra, at 282 [the claim, affidavits, and the need for additional discovery precluded finding that plaintiff could not raise an issue of fact]). In this case, plaintiff has alleged that defendant filed the motion for summary judgment before depositions of the employees who supposedly told defendant of the bribery scheme could be taken. Accordingly, the second cause of action should be reinstated.