Leah Manzari v. Associated Newspapers , 830 F.3d 881 ( 2016 )


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  •                FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    LEAH MANZARI, PKA Danni Ashe,           No. 14-55329
    Plaintiff-Appellee,
    D.C. No.
    v.                     2:13-cv-06830-
    GW-PJW
    ASSOCIATED NEWSPAPERS LTD.,
    Defendant-Appellant.         OPINION
    Appeal from the United States District Court
    for the Central District of California
    George H. Wu, District Judge, Presiding
    Argued and Submitted February 12, 2016
    Pasadena, California
    Filed July 25, 2016
    Before: Andrew J. Kleinfeld, M. Margaret McKeown,
    and Sandra S. Ikuta, Circuit Judges.
    Opinion by Judge McKeown
    2           MANZARI V. ASSOCIATED NEWSPAPERS
    SUMMARY*
    Defamation /California’s Anti-Strategic Lawsuit
    Against Public Participation Statute
    The panel affirmed the district court’s order denying the
    Associated Newspapers Ltd.’s motion to strike a complaint
    pursuant to California’s anti-Strategic Lawsuit Against Public
    Participation statute, in an action alleging defamation by Leah
    Manzari, a pioneer in the online adult entertainment industry
    and famous under her professional name, Danni Ashe.
    Manzari alleged that Associated News Ltd., in its online
    tabloid newspaper, the Daily Mail Online, used a photograph
    of her to convey the defamatory impression that she had
    tested positive for HIV. The panel agreed with the district
    court that, at this stage in the litigation, Manzari had
    presented sufficient evidence to move forward with her claim
    that Daily Mail Online employees acted with actual malice
    when they published an article implying that Manzari was an
    HIV-positive sex worker.
    *
    This summary constitutes no part of the opinion of the court. It has
    been prepared by court staff for the convenience of the reader.
    MANZARI V. ASSOCIATED NEWSPAPERS              3
    COUNSEL
    Katherine M. Bolger (argued), Levine Sullivan Koch &
    Schulz, LLP, New York, New York; Louis P. Petrich,
    Leopold, Petrich & Smith PC, Los Angeles, California; for
    Defendant-Appellant.
    Steven L. Weinberg (argued), Wein Law Group, LLP, Los
    Angeles, California, for Plaintiff-Appellee.
    4          MANZARI V. ASSOCIATED NEWSPAPERS
    OPINION
    MCKEOWN, Circuit Judge:
    A picture is worth a thousand words. A photograph,
    especially when coupled with text, can convey a powerful
    message: in this case, a potentially defamatory one. Leah
    Manzari, famous under her professional name, Danni Ashe,
    for her groundbreaking work in monetizing online
    pornography, claims that the Daily Mail Online, an online
    news outlet, used a photograph of her to convey the
    defamatory impression that she had tested positive for HIV.
    Defamation claims, which arise out of state law, are
    significantly cabined by the First Amendment, especially
    when the plaintiff is a public figure, like Manzari. In order to
    prevail, Manzari must show that the Daily Mail acted with
    actual malice. Defamation by implication claims pose an
    additional hurdle: Manzari must first show that the article is
    reasonably understood to imply the defamatory statement,
    and she must then show that the Daily Mail published the
    article with knowledge of the false implication or reckless
    disregard for the truth of what the article implied. This case
    comes to us as an interlocutory appeal under California’s
    anti-SLAPP statute. 
    Cal. Civ. Proc. Code § 425.15
    . We
    agree with the district court that, at this stage in the litigation,
    Manzari has presented sufficient evidence to move forward
    with her claim that the Daily Mail Online employees acted
    with actual malice when they published the article implying
    that Manzari was an HIV-positive sex worker.
    MANZARI V. ASSOCIATED NEWSPAPERS                   5
    BACKGROUND
    As we explain below, we state the facts, from the
    pleadings and evidence presented, taken favorably to the
    plaintiff. Manzari is a pioneer in the online adult
    entertainment industry. Her website www.Danni.com, which
    she designed and launched in 1995, began generating multi-
    million dollar revenues in the early 2000s. During this time,
    “Danni Ashe” was one of the most well-known and popular
    soft-core porn actresses in the world, as well as a highly
    successful entrepreneur, with one of the most visited websites
    on the Web. She retired from the adult entertainment
    industry in 2004 and sold www.Danni.com, but the website
    remains active under that name.
    Associated News Ltd. publishes the Daily Mail, a popular
    United Kingdom-based tabloid newspaper, which also has an
    online version known as the Daily Mail Online (collectively
    the “Daily Mail”). In 2013, the Daily Mail Online ran an
    article covering the shutdown of the Los Angeles-area porn
    industry caused by a female performer testing positive for
    HIV. The headline read: “PORN INDUSTRY SHUTS
    DOWN WITH IMMEDIATE EFFECT AFTER ‘FEMALE
    PERFORMER’ TESTS POSITIVE FOR HIV.” After a few
    lines of text, the article contained a picture of Manzari lying
    suggestively across a bed with “In Bed With Danni” written
    in neon lights behind her. Under her photograph was the
    caption: “Moratorium: The porn industry in California was
    shocked on Wednesday by the announcement that a
    performer had tested HIV positive.” The article stated that
    the actress was “new to the industry” and that “the performer
    was not immediately identified.” Later in the article were
    two other photographs, but not of Manzari. One photograph
    appears to show a naked woman, whose face is not visible,
    6         MANZARI V. ASSOCIATED NEWSPAPERS
    leaning against a stripper pole. The other picture shows an
    unidentified couple being photographed while lying on a
    couch.
    The beginning of the article appeared as follows; we have
    redacted Manzari’s face:
    MANZARI V. ASSOCIATED NEWSPAPERS                 7
    Immediately after the story was published, Manzari’s
    attorney sent the Daily Mail Online a cease and desist letter
    insisting that it remove Manzari’s photograph from the
    article. The Daily Mail complied. According to Manzari, by
    then the damage was done—the article had been syndicated
    and “quickly spread across the globe via the Internet and
    within minutes, could be seen as far as East Africa and
    India.” Manzari provided examples of Google searches and
    other search results revealing thumbnails that show only the
    headline coupled with her photograph, without any
    explanatory text.
    Manzari brought a libel and false light suit against the
    Daily Mail under California law, which she filed in federal
    court under diversity jurisdiction. 
    28 U.S.C. § 1332
    (a)(2).
    The complaint sought three million dollars in damages to
    Manzari’s business and reputation. Manzari contends that the
    juxtaposition of her image with the explosive headline and
    caption conveyed the impression that she is the performer
    who tested positive for HIV. Manzari’s claim that she does
    not and has never had HIV is not contested. Instead, the
    Daily Mail responds that the article made no such implication
    and that, in any event, it did not intend to convey the
    impression that the article was about Manzari, but instead
    simply chose a stock photo to illustrate the article.
    The article’s author, Daily Mail Online journalist James
    Nye, claims that the name of the performer who tested
    positive for HIV was unknown. To illustrate the article, Nye
    asked the Daily Mail Online’s photo desk to supply him with
    “some pictures representative of the pornographic film
    industry that . . . contained no nudity.” He selected three
    “stock” photographs, including the one of Manzari, that
    “clearly conveyed the concept of the pornographic film
    8          MANZARI V. ASSOCIATED NEWSPAPERS
    industry, showing a camera near a woman on a bed in
    lingerie.” Jack Forbes, the assistant photo editor who initially
    selected the photographs from the Corbis Images database,
    stated that he included the photograph of Manzari because it
    was a “good, non-obscene photograph to illustrate an article
    about the pornographic film industry.” According to
    Manzari, the Corbis database included the following
    information with the photograph: “Soft porn actress Danni
    Ashe, founder of Danni.com, poses in front of a video camera
    connected to the Internet in one of her studios in Los Angeles
    in 2000,” although this information was not included in the
    article.
    The Daily Mail moved to strike Manzari’s complaint
    under the California anti-Strategic Lawsuit Against Public
    Participation statute (“anti-SLAPP”), 
    Cal. Civ. Proc. Code § 425.16
    , on the ground that the defamation suit targeted the
    news outlet’s protected exercise of free speech and that
    Manzari could not show a probability of prevailing on the
    merits of her claim. The California anti-SLAPP statute was
    passed to combat “a disturbing increase in lawsuits brought
    primarily to chill the valid exercise of the constitutional rights
    of freedom of speech and petition for the redress of
    grievances.” 
    Id.
     § 425.16(a); see also id. § 425.16(b)(1) (“A
    cause of action against a person arising from any act of that
    person in furtherance of the person’s right of petition or free
    speech under the United States Constitution or the California
    Constitution in connection with a public issue shall be subject
    to a special motion to strike, unless the court determines that
    the plaintiff has established that there is a probability that the
    plaintiff will prevail on the claim.”).
    The Daily Mail argued that, as a public figure, Manzari
    would be unable to prove that the news outlet had acted with
    MANZARI V. ASSOCIATED NEWSPAPERS                    9
    actual malice when it published the article. The district court
    denied the anti-SLAPP motion to strike, concluding that even
    if Manzari were a public figure, “having considered the
    totality of the choices and admissions made by the Mail
    Online’s staff, . . . a jury could reasonably conclude that those
    who created the Article intended to convey the
    impression—known by them to be false—that Plaintiff tested
    positive for HIV.”
    ANALYSIS
    This case arises from an interlocutory appeal of the
    district court’s denial of the Daily Mail’s motion to strike.
    Denials of California anti-SLAPP motions are appealable
    orders because the statute operates as an immunity from suit,
    rather than as a defense. DC Comics v. Pac. Pictures Corp.,
    
    706 F.3d 1009
    , 1015 (9th Cir. 2013). Through the lense of
    California’s anti-SLAPP statute, we review de novo
    Manzari’s defamation claim. See Makaeff v. Trump Univ.,
    LLC, 
    715 F.3d 254
    , 261 (9th Cir. 2013).
    I. ANTI-SLAPP
    California’s anti-SLAPP statute provides a burden-
    shifting mechanism to weed out “lawsuits that ‘masquerade
    as ordinary lawsuits’ but are brought to deter common
    citizens from exercising their political or legal rights or to
    punish them for doing so.” Batzel v. Smith, 
    333 F.3d 1018
    ,
    1024 (9th Cir. 2003) (quoting Wilcox v. Superior Court,
    
    27 Cal. App. 4th 809
    , 816 (1994)). In Makaeff, we explained:
    To prevail on an anti-SLAPP motion, the
    moving defendant must make a prima facie
    showing that the plaintiff’s suit arises from an
    10          MANZARI V. ASSOCIATED NEWSPAPERS
    act in furtherance of the defendant's
    constitutional right to free speech. . . . The
    burden then shifts to the plaintiff, . . . to
    establish a reasonable probability that it will
    prevail on its claim in order for that claim to
    survive dismissal. 
    Cal. Civ. Proc. Code § 425.16
    (b)(1); . . . . Under this standard, the
    claim should be dismissed if the plaintiff
    presents an insufficient legal basis for it, or if,
    on the basis of the facts shown by the
    plaintiff, “no reasonable jury could find for
    the plaintiff.” Metabolife Int’l, Inc. v.
    Wornick, 
    264 F.3d 832
    , 840 (9th Cir. 2001)
    (citation and internal quotation marks
    omitted).
    715 F.3d at 261 (first citation omitted).
    Having published an article on a topic of public interest
    (i.e. the public health aspects and safety of a large California
    industry), the Daily Mail easily satisfied its initial burden.
    There is no serious dispute that the libel and false light suit
    targeted speech protected by the anti-SLAPP statute. 
    Cal. Civ. Proc. Code § 425.16
    (e)(3) (including “any written or oral
    statement or writing made in a place open to the public or a
    public forum in connection with an issue of public interest”).
    The burden thus shifts to Manzari to show a reasonable
    probability of prevailing on the merits.1 “Reasonable
    1
    Because Manzari’s libel and false light claims rely on the same set of
    facts and require her to prove the same elements relevant to this appeal,
    we consider the two claims collectively. See Solano v. Playgirl, Inc.,
    MANZARI V. ASSOCIATED NEWSPAPERS                           11
    probability in the anti-SLAPP statute has a specialized
    meaning. The statute requires only a minimum level of legal
    sufficiency and triability. Indeed, the second step of the anti-
    SLAPP inquiry is often called the minimal merit prong.”
    Mindys Cosmetics, Inc. v. Dakar, 
    611 F.3d 590
    , 598 (9th Cir.
    2010) (internal quotation marks and citations omitted). See
    Metabolife Int’l, Inc., 
    264 F.3d at 840
     (“[A] defendant’s anti-
    SLAPP motion should be granted when a plaintiff presents an
    insufficient legal basis for the claims or ‘when no evidence of
    sufficient substantiality exists to support a judgment for the
    plaintiff.’” (citations omitted)).
    California courts have repeatedly emphasized that “[o]nly
    a cause of action that lacks even minimal merit constitutes a
    SLAPP.” Overstock.com, Inc. v. Gradient Analytics, Inc.,
    
    61 Cal. Rptr. 3d 29
    , 38 (Ct. App. 2007) (internal quotation
    marks and citations omitted). “A plaintiff is not required ‘to
    prove the specified claim to the trial court’; rather, so as to
    not deprive the plaintiff of a jury trial, the appropriate inquiry
    is whether the plaintiff has stated and substantiated a legally
    sufficient claim.” Mann v. Quality Old Time Serv., Inc.,
    
    15 Cal. Rptr. 3d 215
    , 223 (Ct. App. 2004) (citations omitted)
    (emphasis in original). To determine whether a plaintiff has
    substantiated a legally sufficient claim, courts look to the
    pleadings and affidavits presented by both parties, but courts
    “do not weigh credibility, nor do [they] evaluate the weight
    of the evidence. Instead, [courts] accept as true all evidence
    favorable to the plaintiff and assess the defendant’s evidence
    only to determine if it defeats the plaintiff’s submission as a
    matter of law.” Overstock.com, 61 Cal. Rptr. 3d at 38.
    
    292 F.3d 1078
    , 1083 n.2 (9th Cir. 2002) (treating California libel and false
    light claims as substantially equivalent).
    12        MANZARI V. ASSOCIATED NEWSPAPERS
    II. PUBLIC FIGURE
    The threshold question that frames our defamation
    analysis is a legal one. Whether an individual is a public
    figure is a question of law that must be assessed through a
    totality of the circumstances. See Reader’s Digest Ass’n v.
    Superior Court, 
    690 P.2d 610
    , 614–15 (Cal. 1984). As the
    Supreme Court articulated in Gertz v. Robert Welch, Inc.,
    “[i]n some instances an individual may achieve such
    pervasive fame or notoriety that he becomes a public figure
    for all purposes and in all contexts. More commonly, an
    individual voluntarily injects himself or is drawn into a
    particular public controversy and thereby becomes a public
    figure for a limited range of issues.” 
    418 U.S. 323
    , 351
    (1974). Even before the Supreme Court’s public figure
    analysis, we observed that public figures for defamation
    purposes include, “artists, athletes, business people,
    dilettantes, anyone who is famous or infamous because of
    who he is or what he has done.” Cepeda v. Cowles
    Magazines & Broad., Inc., 
    392 F.2d 417
    , 419 (9th Cir. 1968).
    In earlier cases we have attributed public figure status to
    individuals of comparable (or even less) fame than Manzari.
    See Solano, 
    292 F.3d at 1081
     (television actor on a popular
    show was a public figure); Leidholdt v. L.F.P. Inc, 
    860 F.2d 890
    , 893 (9th Cir. 1988) (leader in the anti-pornography
    movement, who had participated in numerous news article
    and public debates on the topic of pornography, was a public
    figure); Carafano v. Metrosplash.com Inc., 
    207 F. Supp. 2d 1055
    , 1071–72 (C.D. Cal. 2002) aff’d on other grounds,
    
    339 F.3d 1119
     (9th Cir. 2003) (television actress with a
    popular fan website was a general purpose public figure).
    MANZARI V. ASSOCIATED NEWSPAPERS                 13
    Manzari’s celebrity in the porn world might mean that she
    is less of a household name than stars in other sectors of the
    entertainment industry, but that does not make her fame any
    less pervasive. The Daily Mail presented extensive support
    for its position that Manzari is a public figure, including
    interviews with Manzari (in her persona as “Danni Ashe”)
    and news coverage related to her considerable success
    performing in and marketing online soft-core porn. Among
    many other new sources reporting on Manzari’s business and
    career, The Boston Globe called Danni Ashe a poster girl for
    the flourishing online pornography industry, The Observer
    called her “the first cyberporn millionairess,” and The San
    Francisco Chronicle noted that by 1999 Danni’s Hard Drive
    had more than 27,000 paying subscribers. In an interview
    Manzari gave to the Wall Street Journal, she stated that her
    website was originally created as an extension of her “fan
    club” and, as she told ABCNews.com, “[p]eople are interested
    in adult entertainment. They always have and they always
    will be.”
    The complaint itself states that Danni Ashe is considered
    “the most downloaded woman on the Internet” and that her
    image has “graced the cover of the Wall Street Journal.” In
    the late 1990s, Manzari competed against actress Cindy
    Margolis to win the Guinness World Record for most
    downloaded woman on the Internet and, according to both
    ABC News and a press release from her own website, Manzari
    attained the record with 841, 271, 545 downloads. In an
    independent study conducted in 2000, Manzari was found to
    have the most popular site run by and featuring women on the
    Web, far surpassing the amount of Internet traffic for
    websites of such ubiquitous celebrities as Martha Stewart and
    Oprah Winfrey. She has starred in dozens of adult films, and,
    in addition to giving numerous interviews, Manzari also
    14           MANZARI V. ASSOCIATED NEWSPAPERS
    testified before Congress during the passage of the Child
    Online Protection Act in 2000. With millions of Internet
    downloads, extensive publicity, and broad public exposure,
    Manzari undoubtedly qualifies as a public figure.
    III.     REASONABLE PROBABILITY OF PREVAILING ON THE
    MERITS
    To prevail, Manzari will eventually need to present clear
    and convincing evidence that the Daily Mail article contained
    a defamatory implication and that the Daily Mail acted with
    “actual malice” when it published the article with her
    photograph. See Kaelin v. Globe Comm. Corp., 
    162 F.3d 1036
    , 1039 (9th Cir. 1998) (“A public figure in a defamation
    case cannot recover unless he proves by clear and convincing
    evidence that the defendant published the defamatory
    statement with actual malice, i.e., with knowledge that it was
    false or with reckless disregard of whether it was false or
    not.” (internal quotation marks and citations omitted).2
    However, at the anti-SLAPP stage, “[a] public figure who
    sues for defamation must establish a probability that he or she
    can produce such clear and convincing evidence.”
    Overstock.com, 61 Cal. Rptr. 3d at 38 (emphasis added); see
    also Burrill v. Nair, 
    158 Cal. Rptr. 3d 332
    , 357 (Ct. App.
    2013) (“[W]e must determine [at the anti-SLAPP stage]
    whether [the Plaintiff] has made a sufficient prima facie
    showing of facts to sustain her burden of demonstrating a
    high probability that [the Defendant] published the
    defamatory statements with knowledge of their falsity or
    while entertaining serious doubts as to their truth.”).
    2
    It is uncontested that Manzari was not the actual subject of the article
    and the Daily Mail has not presented truth as a defense.
    MANZARI V. ASSOCIATED NEWSPAPERS                  15
    At this juncture in the proceedings, Manzari is not
    required to “to prove the specified claim,” Mann, 15 Cal.
    Rptr. 3d at 223 (internal quotation marks omitted). She need
    only convince us that her claim has “minimal merit,” and she
    has done so. Overstock.com, 61 Cal. Rptr. 3d at 38. We
    agree that Manzari has presented sufficient evidence—both
    as to the article’s defamatory implication and the Daily
    Mail’s actual malice—to survive the anti-SLAPP motion to
    strike.
    A. DEFAMATORY IMPLICATION
    The Daily Mail did not affirmatively state that Manzari
    was the performer with HIV, but the implication and the
    conclusion were neither subtle nor difficult to divine. The
    bold headline and its content, juxtaposed with her photograph
    and yet another caption under her picture that said the
    industry was “shocked” that a “performer had tested HIV
    positive,” was sufficient for a reasonable reader to infer that
    Manzari was the performer who had tested positive for HIV.
    California law recognizes that a defamatory statement can
    be either “expressly stated or implied.” Forsher v. Bugliosi,
    
    608 P.2d 716
    , 721 (Cal. 1980) (internal quotation marks and
    citations omitted). Thus:
    “If the defendant juxtaposes a series of facts
    so as to imply a defamatory connection
    between them, or otherwise creates a
    defamatory implication, he may be held
    responsible for the defamatory implication,
    even though the particular facts are correct.”
    Weller v. Am. Broad. Co., 
    283 Cal. Rptr. 644
    ,
    652 n.10 (Ct. App. 1991) (quoting Prosser,
    16        MANZARI V. ASSOCIATED NEWSPAPERS
    The Law of Torts § 116 (5th ed. Supp. 1988))
    (internal alterations omitted). To state a claim
    for implied defamation, however, the
    published statement must reasonably “be
    understood as implying the alleged
    defamatory content.” Id. at 651 n.8.
    Price v. Stossel, 
    620 F.3d 992
    , 1003 (9th Cir. 2010).
    Of course we “must examine the totality of the
    circumstances of the publication.” Kaelin, 
    162 F.3d at 1041
    .
    “[A] defamatory meaning must be found, if at all, in a reading
    of the publication as a whole.” 
    Id. at 1040
    . The Daily Mail
    suggests this case is different from the classic defamation by
    implication case because it did not make any statement by
    including a stock photograph selected as a “good, non-
    obscene photograph to illustrate the article.”            This
    disingenuous approach overlooks the fact that a photograph
    itself can convey both an implicit and an explicit message and
    that the headline, caption and photograph taken together are
    also a statement. As the Supreme Court observed in a similar
    context, “words and punctuation express meaning. Meaning
    is the life of language.” Masson v. New Yorker Magazine,
    Inc., 
    501 U.S. 496
    , 517 (1991); see also 
    id. at 521
    (concluding that misquotations of a public figure, implying he
    had stated things he did not say, raised a triable jury
    question). Likewise, a visual depiction can be the life of
    expression.
    Considering the article as a whole, we conclude that a
    reasonable reader could infer that the article is about Manzari.
    The headline begins “Porn industry shuts down after ‘female
    performer’ tests positive for HIV,” which is followed by just
    four sentences before her photograph. The picture includes
    MANZARI V. ASSOCIATED NEWSPAPERS                   17
    her professional name “Danni” in neon lights behind her and
    the bold caption below her reads “Moratorium: The porn
    industry in California was shocked on Wednesday by the
    announcement that a performer had tested HIV positive.”
    The vague references to the unidentified “female performer”
    do not clarify that the article is not about Manzari,
    particularly given the size and placement of the photographs
    and text.
    The clarity of the implication is all the more apparent
    given how news spreads across the Internet. As Daily Mail
    Online—a leader and professional in online
    publishing—would no doubt be aware, links to news articles
    frequently appear in online search engines or other
    compilations with only a headline and photograph connected
    to that story. Publication of the first story was just a platform
    for inevitable further online dissemination. Manzari
    introduced multiple screen-shots from the Internet revealing
    how the article appeared in a number of search engines and
    other on-line news platforms. These images spread rapidly
    across the Web once the Daily Mail Online published the
    article, and, in example after example, the posting is
    truncated with the headline followed directly by the “Danni”
    photograph, sometimes including a caption, but without the
    rest of the article to provide any further context for the image.
    The Daily Mail contends that the text of the
    article—specifically its assertion that the performer in
    question was new to the industry and had not been
    identified—is logically inconsistent with the inference that
    the actress in question was Manzari. It underscores that the
    explanatory text appears on the same page as the headline and
    the photograph of Manzari, such that a reasonable reader
    would realize that she was not the woman who had tested
    18         MANZARI V. ASSOCIATED NEWSPAPERS
    positive for HIV. In this regard, the Kaelin case is
    instructive. There we held that: “headlines are not irrelevant,
    extraneous, or liability-free zones[, t]hey are essential
    elements of a publication,” and that false insinuations in a
    headline on the cover page were not cured or negated by
    explanatory language later in the magazine because “[a]
    reasonable juror could conclude that the Kaelin article was
    too far removed from the cover headline to have the salutary
    effect that Globe claims.” 
    162 F.3d at
    1040–41; see also
    Davis v. Hearst, 
    160 Cal. 143
    , 187 (1911) (holding that an
    article’s explanatory text did not negate the defamatory
    nature of the headline).
    The same is true here. A passing reference buried in the
    article can hardly cure the obvious message conveyed by the
    headline, photo and caption. Manzari has presented sufficient
    evidence to carry her burden of showing a reasonable
    probability of success on the merits regarding the first prong
    of her defamation claim.
    B. ACTUAL MALICE
    The Supreme Court has provided a framework through
    which we assess whether a public figure can move forward
    with a defamation claim. In Masson, the Court explained that
    “actual malice” presents a question of fact:                 “The
    constitutional question we must consider here is whether, in
    the framework of a summary judgment motion, the evidence
    suffices to show that respondents acted with the requisite
    knowledge of falsity or reckless disregard as to truth or
    falsity.” 
    501 U.S. at 513
    . The Court concluded that “[t]he
    record contains substantial . . . evidence, . . . which, in a light
    most favorable to petitioner, would support a jury
    determination under a clear and convincing standard that [the
    MANZARI V. ASSOCIATED NEWSPAPERS                           19
    author acted] deliberately or recklessly.” 
    Id. at 521
    .
    Although the author “contests petitioner’s allegations, . . .
    only a trial on the merits will resolve the factual dispute. . . .
    [A]t this stage, the evidence creates a jury question whether
    [the author] published the statements with knowledge or
    reckless disregard of the alterations.” 
    Id.
    In implied defamation cases, “where a statement . . .
    reasonably implies false and defamatory facts regarding
    public figures or officials, those individuals must show that
    such statements were made with knowledge of their false
    implications or with reckless disregard of their truth.”
    Milkovich v. Lorain Journal Co., 
    497 U.S. 1
    , 20 (1990).
    “[R]eckless conduct is not measured by whether a reasonably
    prudent man would have published, or would have
    investigated before publishing. There must be sufficient
    evidence to permit the conclusion that the defendant in fact
    entertained serious doubts as to the truth of his publication.”
    Time, Inc. v. Pape, 
    401 U.S. 279
    , 291–92 (1971). This
    standard ensures that publishers are not held liable for
    unintentional misstatements or implications, which public
    figures later claim are defamatory. See Howard v. Antilla,
    
    294 F.3d 244
    , 252 (1st Cir. 2002) (“[I]mplications perceived
    in a statement but not intended by the speaker cannot be
    actionable in public official or public figure cases.”) (quoting
    Robert D. Sack, Libel, Slander, and Related Problems § 5.5.1,
    at 5–64 (3d ed. 1999)).3
    3
    Our sister circuits have also adopted a standard of subjective awareness
    of the implication. See Compuware Corp. v. Moody’s Inv’rs Servs., Inc.,
    
    499 F.3d 520
    , 529 (6th Cir. 2007) (defendant must have intended or knew
    of the implied meaning); Levan v. Capital Cities/ABC, Inc., 
    190 F.3d 1230
    , 1241 (11th Cir. 1999) (to show actual malice in an implied
    defamation case, the plaintiff must show that the defendant “entertained
    serious doubts” that the “underlying thrust” of the publication was true
    20          MANZARI V. ASSOCIATED NEWSPAPERS
    Defamation by implication against public figures is an
    area of law “fraught with subtle complexities.” White,
    909 F.2d at 518. We have not always charted a clear path
    when applying the actual malice test to implied defamatory
    content. Compare Hoffman v. Capital Cities/ABC, Inc.,
    
    255 F.3d 1180
    , 1187 (9th Cir. 2001) (“evidence must clearly
    and convincingly demonstrate that [the publisher] knew (or
    purposefully avoided knowing) that the photograph would
    mislead its readers”), with Newton v. Nat’l Broad. Co.,
    
    930 F.2d 662
    , 680–81 (9th Cir. 1990) (holding that failure to
    foresee the possible implications of a statement does not give
    rise to liability against a public figure, rather the relevant
    inquiry is one of subjective intent) and, Dodds v. Am. Broad.
    Co., 
    145 F.3d 1053
    , 1063–64 (9th Cir. 1998) (“In order to
    prevail on his claim that ABC’s direct statements impliedly
    defamed him . . . [the plaintiff] must show . . . that ABC
    intended to convey the defamatory impression.” (internal
    quotation marks and citations omitted)). Although our cases
    have referenced actual malice with some variation in
    language, at its core our precedent mirrors the Supreme
    Court’s requirements: knowledge of falsity or reckless
    disregard for the truth.
    (internal quotation marks omitted)); White v. Fraternal Order of Police,
    
    909 F.2d 512
    , 520 (D.C. Cir. 1990) (defamation by implication possible
    where “the communication, by the particular manner or language in which
    the true facts are conveyed, supplies additional, affirmative evidence
    suggesting that the defendant intends or endorses the defamatory
    inference”); Saenz v. Playboy Enter., Inc., 
    841 F.2d 1309
    , 1318 (7th Cir.
    1988) (“[W]here the plaintiff is claiming defamation by innuendo, he also
    must show with clear and convincing evidence that the defendants
    intended or knew of the implications that the plaintiff is attempting to
    draw from the allegedly defamatory material.”).
    MANZARI V. ASSOCIATED NEWSPAPERS                  21
    This case rests on the “reckless disregard” prong of actual
    malice. Recognizing that California law requires only
    “minimal merit” to withstand initial dismissal under the anti-
    SLAPP statute, we hold that Manzari has raised sufficient
    factual questions for a jury to conclude that the Daily Mail
    Online acted with reckless disregard for the defamatory
    implication in its article on the Los Angeles porn industry
    shut-down. Manzari’s evidence is sufficient to support her
    claim that the Daily Mail Online placed her photograph in the
    article, juxtaposed with the incendiary headline and caption,
    “[knowing or acting] in reckless disregard of whether its
    words would be interpreted by the average reader as a false
    statement of fact.” Solano, 
    292 F.3d at 1084
     (internal
    citations, alterations, and quotation marks omitted).
    The undisputed message that the article is about
    Manzari—apparent from the headline, photograph, and
    caption—supports the conclusion that the Daily Mail Online
    acted with reckless disregard. Though it is not enough that
    the defamatory implication “should have been foreseen” by
    the Daily Mail when it juxtaposed the different elements of
    the article, see Newton, 930 F.2d at 680, or that an “ordinary
    viewer would have perceived the implication,” Dodds,
    
    145 F.3d at 1064
    , here there is evidence that Daily Mail
    employees actively removed key contextual information from
    the “Danni Ashe” photograph as it was presented in the
    Corbis database, which stated: “Soft porn actress Danni Ashe,
    founder of Danni.com, poses in front of a video camera
    connected to the Internet in one of her studios in Los Angeles
    in 2000.” Instead, they replaced this information with the
    caption: “Moratorium: The porn industry in California was
    shocked on Wednesday by the announcement that a
    performer had tested HIV positive.” The publishers also
    failed to include any explanation or disclaimer adjacent to the
    22          MANZARI V. ASSOCIATED NEWSPAPERS
    “Danni” photograph, which would have informed readers that
    she was not the subject of the article. See Eastwood,
    123 F.3d at 1253, 1256 (observing that “[a]s we have yet to
    see a defendant who admits to entertaining serious subjective
    doubt about the authenticity of an article it published, we
    must be guided by circumstantial evidence,” and concluding
    that the “totality of the [editors’] choices” supported a finding
    of actual malice).
    It is no surprise that the Daily Mail employees deny that
    they understood or intended to make any implication about
    Manzari. While a finding that the publisher’s testimony lacks
    credibility cannot on its own sustain a finding of subjective
    intent, Newton, 930 F.2d at 680, the denial must be read in
    the context of other evidence. If all a publisher needed to do
    was to deny the allegation, all implied defamation suits would
    be dead on arrival. If, for instance, a newspaper ran the
    headline: “High Profile Figure Accused of Murder”
    alongside a photograph of the Mayor of New York, or
    “Industry Shocked that Grocery Sprayed Veggies with
    Pesticide” alongside an image of a nationally-known grocery
    chain, the publishers would be hard-pressed to plausibly
    claim that they had simply selected a “stock” photograph.
    The same holds true for a story about the pornography
    industry, featuring a picture of a world-famous pornographic
    actress with her name written in neon lights behind her.4 This
    sort of willful blindness cannot immunize publishers where
    they act with reckless disregard for the truth or falsity of the
    implication they are making. Manzari meets the “minimal
    merit” threshold to avoid outright dismissal of her complaint.
    4
    One need only look to the Daily Mail’s own evidence of Manzari’s
    public figure status to confirm the ubiquity of her image and her identity.
    Her image can hardly be relegated to the status of a “stock” photograph.
    MANZARI V. ASSOCIATED NEWSPAPERS                  23
    CONCLUSION
    At the anti-SLAPP stage, Manzari has carried her burden
    of “stat[ing] and substantiat[ing] a legally sufficient claim.”
    Mann, 15 Cal. Rptr. 3d at 223. The district court properly
    denied the Daily Mail’s motion to strike Manzari’s complaint.
    AFFIRMED.
    

Document Info

Docket Number: 14-55329

Citation Numbers: 830 F.3d 881

Filed Date: 7/25/2016

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (24)

Howard v. Antilla , 294 F.3d 244 ( 2002 )

Levan v. Capital Cities/ABC, Inc. , 190 F.3d 1230 ( 1999 )

Mindys Cosmetics, Inc. v. Dakar , 611 F.3d 590 ( 2010 )

Price v. Stossel , 620 F.3d 992 ( 2010 )

Adolph Saenz v. Playboy Enterprises, Inc. And Roger Morris , 841 F.2d 1309 ( 1988 )

Compuware Corp. v. Moody's Investors Services, Inc. , 499 F.3d 520 ( 2007 )

metabolife-international-inc-a-california-corporation-v-susan-wornick , 264 F.3d 832 ( 2001 )

Dustin Hoffman v. Capital Cities/abc, Incorporated, and L.A.... , 255 F.3d 1180 ( 2001 )

Honorable Bruce W. Dodds v. American Broadcasting Company, ... , 145 F.3d 1053 ( 1998 )

Jose Solano, Jr. v. Playgirl, Inc. , 292 F.3d 1078 ( 2002 )

christianne-carafano-aka-chase-masterson-v-metrosplashcom-inc-a , 339 F.3d 1119 ( 2003 )

Orlando Cepeda v. Cowles Magazines and Broadcasting, Inc., ... , 392 F.2d 417 ( 1968 )

ellen-l-batzel-a-citizen-of-the-state-of-california-v-robert-smith-a , 333 F.3d 1018 ( 2003 )

brian-kato-kaelin-v-globe-communications-corporation-a-delaware , 162 F.3d 1036 ( 1998 )

Robert C. White v. Fraternal Order of Police , 909 F.2d 512 ( 1990 )

Reader's Digest Assn. v. Superior Court , 37 Cal. 3d 244 ( 1984 )

Forsher v. Bugliosi , 26 Cal. 3d 792 ( 1980 )

dorchen-leidholdt-v-lfp-inc-lfp-inc-dba-larry-flynt-publications , 860 F.2d 890 ( 1988 )

Davis v. Hearst , 160 Cal. 143 ( 1911 )

Carafano v. Metrosplash. Com Inc. , 207 F. Supp. 2d 1055 ( 2002 )

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