Smiley's Too, Inc. v. Denver Post Corp.
20 Brief Times Rptr. 1029, 24 Media L. Rep. (BNA) 2272, 935 P.2d 39 (1996)
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Rule of Law:
A news report detailing numerous consumer complaints filed with a government consumer protection agency against a private business qualifies as a matter of public concern, thus triggering heightened constitutional protections for the publisher in a defamation action.
Facts:
- Smiley’s Too, Inc. and Colfax Avenue Irrevocable Trust (collectively Smiley's) operated a laundromat and dry cleaning business.
- Denver Post reporter Chance Conner began investigating Denver-area dry cleaners for a local sidebar to a national magazine story.
- Conner contacted the Consumer Fraud Division of the Denver District Attorney’s Office and discovered numerous complaints had been filed against Smiley’s.
- The complaints alleged lost, misplaced, or damaged clothing, as well as rude and belligerent treatment by Smiley's management.
- An investigator for the District Attorney's office informed Conner that Smiley's generally refused to settle claims and often "stonewalled" mediation efforts.
- Conner interviewed customers, Smiley's management, a trade association representative, and the investigator before publishing an article.
- The resulting Denver Post article described specific customer complaints and included critical statements from the Consumer Fraud Division and others about Smiley's business practices.
Procedural Posture:
- Smiley’s sued The Denver Post Corporation and reporter Chance Conner for defamation in the state trial court.
- The trial court ruled that the published article involved a matter of public concern.
- Following the ruling, the trial court instructed the jury that the plaintiffs must prove the defendants acted with at least reckless disregard for the truth to be found liable.
- A jury returned a verdict in favor of the defendants, finding the article was substantially true and not published with reckless disregard for the truth.
- The trial court entered a judgment in favor of the defendants.
- Smiley's, the plaintiff, appealed the judgment to the Colorado Court of Appeals, an intermediate appellate court.
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Issue:
Does a newspaper article detailing numerous consumer complaints filed with a government agency against a local business qualify as a matter of public concern for the purposes of a defamation claim?
Opinions:
Majority - Judge Rothenberg
Yes, a newspaper article detailing numerous consumer complaints filed with a government agency against a local business qualifies as a matter of public concern. Reports on matters of public concern trigger constitutional privileges that require a defamation plaintiff to meet a heightened burden of proof. The court rejected the argument that the complaints were too trivial, reasoning that a matter is of public concern when 'it embraces an issue about which information is needed or is appropriate.' Because the article affected many consumers and involved a government consumer affairs agency investigating the business, the public had a legitimate need for the information. The court found that the complaints were numerous compared to similar businesses and that the District Attorney's investigation into the matter further elevated it to a public concern.
Analysis:
This decision clarifies that the 'public concern' doctrine in defamation law is not limited to political or high-profile matters but extends to reports on the business practices of a local company affecting ordinary consumers. It establishes that when a business's conduct generates numerous customer complaints and attracts the attention of a government regulatory or consumer protection agency, media coverage of that conduct is constitutionally privileged. This lowers the burden for media defendants in such cases, forcing private business plaintiffs to prove not only falsity but also that the publisher acted with actual malice, thereby strengthening protections for consumer-focused investigative journalism.
