Articles Posted in Defamation

A real estate professional who served as HOA president and who assisted with the development of a residential community qualified as a limited public figure for purposes of a google review about changes to the development.

In Charles v. McQueen, No. M2021-00878-SC-R11-CV (Tenn. July 3, 2024), plaintiff worked as a local real estate professional. The company developing Durham Farms, a planned community, hired plaintiff to assist with the community development. In addition to working for Durham Farms, plaintiff served as the HOA president at Durham Farms and ran homeowners’ meetings.

Defendant purchased a home in Durham Farms in 2017. In the following years, Durham Farms changed several features of its community. Lot size requirements were reduced in 2019, then in 2020 Durham Farms announced plans to add over 160 rental-only units. After this announcement, controversy grew as homeowners opposed the new plans. As part of the opposition effort, several Durham Farms residents left google reviews on the developer’s page. Defendant wrote a google review expressing her frustration with the “bait and switch” tactics and the “multiple changes to our development.” Defendant’s review was the only one that used plaintiff’s name, as it stated: “Bill Charles, especially, uses misleading tactics to lure in home buyers only to deceive them.”

Where defendant moved to dismiss a defamation suit under the Tennessee Public Participation Act (“TPPA”), and the trial court failed to take into account the third step of the TPPA burden-shifting framework which considers whether a defendant can establish a valid defense to the claims, the case was remanded for further consideration of the third step in the analysis.

In Pragnell v. Franklin, No. E2022-00524-COA-R3-CV (Tenn. Ct. App. April 18, 2023), plaintiffs filed a defamation suit against defendants, who were plaintiffs’ former employer. Plaintiffs were financial advisors, and when they left defendants’ company, SEC regulations required defendants to file a U5 form online as to plaintiffs’ departure. Plaintiffs asserted that the U5 forms initially filed by defendants stated that plaintiffs left the company voluntarily, but that after a dispute arose and plaintiffs filed suit against defendants in chancery court, defendants changed the U5 forms to state that plaintiffs were discharged for violating “client privacy rights, misrepresentation, and selling away.” Plaintiffs thus filed this defamation suit based on the statements in the revised U5 forms.

Defendants filed a motion to dismiss based on the TPPA, Tenn. Code Ann. § 20-17-101, et seq. Defendants argued that they were required to file the amended U5 forms upon discovering additional information about plaintiffs’ employment, that the statements contained therein were true, and that the case was subject to dismissal under the TPPA.

Where plaintiff asserted a defamation claim based on his car insurance company putting an “at fault designation” on a federally regulated database, summary judgment for defendant insurance company was affirmed.

Seely v. GEICO Advantage Insurance Company, No. M2021-01263-COA-R3-CV (Tenn. Ct. App. Mar. 6, 2023) arose out of a dispute between an insured driver and his insurance company following a minor car accident. The insurance company determined that plaintiff driver was at fault, and it paid the claims from the injured party. Despite plaintiff’s assertion that the accident was caused by brake failure and his submission of receipts for brake work, GEICO put an “at fault designation” on plaintiff’s Comprehensive Loss Underwriting Exchange (CLUE) report. Plaintiff’s premiums were thereafter raised.

In his complaint, plaintiff asserted several causes of actions, including one for defamation. Plaintiff alleged that “[b]y filing an erroneous entry in Plaintiffs’ CLUE reports GEICO damaged not only their driving records but affected their creditworthiness and good names.” Defendant filed a motion to dismiss the defamation claim, which the trial court granted, and the Court of Appeals affirmed.

The January / February 2023 edition of the Tennessee Bar Journal has published my new column – “Defamation Cases – Yet Another Land Mine.”

Where plaintiff real estate professional brought an action for defamation and false light based on an online review written by defendant, defendant moved to dismiss the action pursuant to the Tennessee Public Participation Act (TPPA).

In Charles v. McQueen, No. M2021-00878-COA-R3-CV, 2022 WL 4490980 (Tenn. Ct. App. Sept. 28, 2022), plaintiff was a real estate professional involved in some capacity with Durham Farms, which was a large residential community. Defendant was a resident in the community who wrote a negative online review of the developer of the community and plaintiff. Regarding plaintiff, the review stated: “Bill Charles, especially, uses misleading tactics to lure in home buyers only to deceive them.”

Based on this review, plaintiff filed this action for defamation and false light against plaintiff. Defendant filed a petition for dismissal pursuant to the TPPA, and after finding that the TPPA applied, that plaintiff was a limited-purpose public figure in the context of this action, and that plaintiff “had not established a prima facie case for actual malice,” the trial court dismissed the case. This ruling was affirmed in part and reversed in part on appeal.

The TPPA, Tenn. Code Ann. § 20-17-101 et seq., is Tennessee’s version of an anti-SLAPP statute and was designed to “encourage and safeguard the constitutional right of persons to petition, to speak freely, to associate freely, and to participate in government to the fullest extent permitted by law and, at the same time, protect the rights of persons to file meritorious lawsuits for demonstrable injury.” (quoting Tenn. Code Ann. § 20-17-102). “The TPPA provides relief for parties who partake in protected activity constituting either the exercise of the right of association, the exercise of the right of free speech, or the exercise of the right to petition.” (internal citations omitted). If a party petitions for dismissal under the TPPA and “makes a prima facie case that they have participated in a protected activity under the TPPA, the court may then dismiss the action against them, unless the responding party establishes a prima facie case for each essential element of the claim in the legal action.” (internal citations, quotation and emphasis omitted).

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Where defendant’s allegedly defamatory statements accusing plaintiffs of bigamy were made within the context of a declaratory judgment action, the absolute litigation privilege applied and dismissal of the defamation case was affirmed.

In Vanwinkle v. Thompson, No. M2020-01291-COA-R3-CV, 2022 WL 1788274 (Tenn. Ct. App. June 2, 2022), defendant had previously been married to one of the plaintiffs, and a final decree of divorce had been issued in their divorce case. Approximately ten months after the final decree, plaintiffs married each other. Defendant then filed a “Complaint for Declaratory Judgment and to Invalidate Bigamous Marriage,” asserting that his divorce from plaintiff was not final and that plaintiffs were therefore engaged in bigamy.

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