Appeals by plaintiffs and defendants from order granting
partial summary judgment in favor of defendants entered 4 September
2001 by Judge Melzer A. Morgan, Jr., Superior Court, Moore County.
Heard in the Court of Appeals 10 September 2002.
Barringer, Barringer, Stephenson & Schiller by David G.
Schiller and Marvin Schiller for plaintiffs.
Smith, James, Rowlett & Cohen by Seth R. Cohen and Stanford,
Fagan & Giolito, L.L.C., by Robert S. Giolito and Jeffrey D.
Sodko for defendants.
WYNN, Judge.
This appeal concerns a defamation action brought by labor
union members Pamela Priest and Betty Lou Skinner against their
labor union and its representative. They appeal from the trial
court's grant of partial summary judgment in favor of defendants;
likewise, defendants appeal from that part of the summary judgment
that was not granted in their favor. On review, notwithstanding
the trial court's certification of this matter for immediate review
under Rule 54(b), we conclude that the partial grant of summary
judgment neither constitutes a final judgment nor affects a
substantial right. Accordingly, we dismiss this appeal asinterlocutory.
The underlying facts to this appeal show that defendant Make-
up Artists and Hair Stylists Local 798, of the International
Alliance of Theatrical Stage Employees and Motion Picture Operators
of the United States and Canada, hereinafter Local 798, is the
collective bargaining representative of most make-up artists and
hairstylists in the film industry throughout the eastern half of
the United States. Defendant Thomas Sobeck is the District Field
Representative for Local 798; Priest and Skinner have been members
of Local 798 for several years.
In June 1999, Priest was hired as head of the hair department
on the CBS film Shake, Rattle & Roll, a production governed by a
collective bargaining agreement with Local 798. Priest then hired
Skinner as third hair and filled all of the positions in her
department with union members. When Priest arrived in Charlotte,
North Carolina, to begin work on the production, she learned that
a non-union worker had been hired as second in the make-up
department. Priest later learned that Kelly Gore Jefferson, head
of the make-up department, was dissatisfied with the selection of
the non-union worker. Priest advised her to speak with the union
production manager about her concerns.
Meanwhile, Sobeck, the union district representative, had been
receiving complaints from union members about non-union members
working on the production. Sobeck called Priest to find out what
she knew about the hiring of non-union make-up employees. Priest
asked Sobeck if they could speak at a later time since she wasfatigued from working that day. In response, Sobeck faxed Priest
and Skinner a letter informing them they could not be forced to
work with or hire non-union workers. The next day Priest
approached the unit production manager and told him that he needed
to call Sobeck about the hiring of non-union workers. According to
Priest, the unit production manager (in a previous conversation),
informed her that Sobeck was aware of the situation and that the
non-union worker had been hired at the request of the film's
producer. The unit production manager called Sobeck and after the
phone conversation, told Priest the matter had been resolved.
However, in the next union newsletter, Sobeck stated the
following:
I received a call from one of our members in
the Carolina's. She was asking me, why as a
paid up dues paying member of our local, she
was not hired, but passed over for a non-
member make-up person.
...
I was aware of the problem and sent faxes to
both Heads of the Department, Pam Priest and
Kelly Gore Jefferson, stating that the
Production cannot force them to hire non-
members. I have not heard one word from
either Head of Department. It is time you,
the Membership file complaints and get rid of
these not thinking members.
...
So there it is. Now it's up to you, the
Membership, to advise this Local how you all
would like to proceed on these issues when
they arise.
...
Kelly Gore Jefferson did in fact hire non-
union make-up over her own sisters andbrothers and gave permission to the person to
hire additional make-up and that the other
Head of the Hair Department stood by, along
with two other Local 798 Members, Roy Bryson
and Betty Lou Skinner, on the production
Shake Rattle & Roll being shot in Charlotte,
North Carolina.
...
O.K. now all of you Members who have been
complaining about this kind of problem can put
a stop to it. Write your Business Agent and
advise him how you want him to deal with this
problem.
I have given you Members the ammunition now
it's up to you to use it.
As a result of the newsletter comments and its dissemination to
union members, Priest and Skinner brought this action alleging
libel per se, class two libel and libel per quod. In granting
partial summary judgment in favor of the defendants, the trial
court stated:
There are no genuine issues of material fact
with respect to any of the claims alleged
except as to whether the defendant Sobeck with
malice published in the August newsletter and
subsequent newsletters that plaintiffs stood
by when Henrita Jones, not a member of Local
798, was hired in mid to late June 1999 when
such hiring was actually initially approved by
union representative Vincent Callaghan and
when defendant Sobeck himself later allegedly
approved, explicitly or implicitly, the hiring
of Ms. Jones. . . . Except with respect to the
hiring of Ms. Jones and defendant Sobeck's
assertion that plaintiffs stood by while Ms.
Jones was hired, when he allegedly knew that
he had himself approved the hire, no malice
has been shown on the part of the defendants
as to any other factual scenario.
Thus, the court granted partial summary judgment as to any and all
claims except any claim based upon the limited assertion thatdefendant Sobeck maliciously published that it was plaintiffs who
stood by when Ms. Jones was hired when he knew he had approved the
hire himself. Thereafter, the trial court, exercising its
discretion under N.C. Gen. Stat. § 1A-1, Rule 54(b), determined
that there was no just reason for delay of appellate review of this
judgment which determined less than all of the claims of the
plaintiffs.
It is well settled that a
grant of partial summary judgment,
because it does not completely dispose of the case, is an
interlocutory order from which there is ordinarily no right of
appeal.
Liggett Group, Inc. v. Sunas, 113 N.C. App. 19, 23, 437
S.E.2d 674, 677 (1993). However, there are two situations in which
one may seek appellate review of an interlocutory order. First, in
claims involving multiple claims or multiple parties, if a final
judgment is entered as to one, but not all, of the claims or
parties and the trial judge certifies in the judgment that there
is no just reason for delay, such judgment is then subject to
judicial review. N.C. Gen. Stat. § 1A-1, Rule 54(b) (2001).
Second, if delaying the appeal would prejudice a substantial right,
then there may be judicial review.
Liggett, 113 N.C. App. at 23-
24, 437 S.E.2d at 677.
In general, a trial court's certification of an order for
immediate appeal under Rule 54(b) permits the parties to prosecute
an interlocutory appeal.
Sharpe v. Worland, 351 N.C. 159, 161-62,
522 S.E.2d 577, 579 (1999)(quoting
DKH Corp. v. Rankin-PattersonOil Comp. , Inc., 348 N.C. 583, 585, 500 S.E.2d 666, 668 (1998)).
Nonetheless, the trial court may not, by certification, render its
decree immediately appealable if '[it] is not a final judgment.'
Sharpe, 351 N.C. at 162, 522 S.E.2d at 579;
Lamb v. Wedgewood South
Corp., 308 N.C. 419, 425, 302 S.E.2d 868, 871 (1983);
see Tridyn
Indus. v. American Mut. Ins. Co., 296 N.C. 486, 491, 251 S.E.2d
443, 447 (1979) (That the trial court declared it to be a final,
declaratory judgment does not make it so.).
In this case, plaintiffs presented three causes of action,
libel per se, class 2 libel, and libel per quod based on the
essence of one statement in the union newsletter: Defendants'
statement that Plaintiffs Priest and Skinner 'stood by' while
'Jefferson ... hire[d] non-union make-up' on the Production is
false.
In granting partial summary judgment, the trial judge
dismissed all claims except any claim based upon the limited
assertion that defendant Sobeck maliciously published that it was
plaintiffs who stood by when Ms. Jones was hired when he knew he
had approved the hire himself. Thus, the trial judge's order of
partial summary judgment essentially left in tact the plaintiffs'
defamation allegations based on the statement that they stood by
while the non-union member was hired. Accordingly, there has not
been a final judgment and the plaintiffs' appeal must be dismissed
as interlocutory.
Defendants' Interlocutory Appeal
Defendants appeal the trial court's partial denial of summaryjudgment. It is well settled that [d]enial of a motion for summary
judgment is not a final judgment and is generally (unless affecting
a substantial right) not immediately appealable, even if the
trial court has attempted to certify it for appeal under Rule
54(b).
First Atlantic v. Dunlea Realty, 131 N.C. App. 242, 247,
507 S.E.2d 56, 60 (1998)(quoting
Cagle v. Teachy, 111 N.C. App.
244, 247, 431 S.E.2d 801, 803 (1993)). In this case, the trial
court's denial of summary judgment was not a final judgment. Since
this appeal arises from a non-final judgment, we hold that the
trial court's certification under Rule 54(b) does not render it
ready for appeal.
Nonetheless, as an alternative basis for their appeal,
defendants' argue the partial denial of summary judgment affects
their substantial right to free speech.
It is well settled that an interlocutory order
affects a substantial right if the order
deprives the appealing party of a substantial
right which will be lost if the order is not
reviewed before a final judgment is
entered.Essentially a two-part test has
developed--the right itself must be
substantial and the deprivation of that
substantial right must potentially work injury
... if not corrected before appeal from final
judgment. ... Nevertheless, it is usually
necessary to resolve the question in each case
by considering the particular facts of that
case and the procedural context in which the
order from which the appeal was sought was
entered.
Sharpe v. Worland, 351 N.C. 159, 162-63, 522 S.E.2d 577, 580
(1999)(quoting
Cook v. Bankers Life & Cas. Co., 329 N.C. 488, 491,
406 S.E.2d 848, 850 (1991);
Goldston v. American Motors Corp., 326
N.C. 723, 726, 392 S.E.2d 735, 736 (1990);
Waters v. Personnel,Inc., 294 N.C. 200, 208, 240 S.E.2d 338, 343 (1978)).
Defendant cites two North Carolina cases,
Sherrill v. Amerada
Hess Corp., 130 N.C. App. 714, 504 S.E.2d 802 (1998) and
Kaplan v.
Prolife Action League, 111 N.C. App. 1, 431 S.E.2d 828, 834 (1993),
in which this Court held that an order affecting First Amendment
freedoms affects a substantial right sufficient to permit an
immediate appeal from an interlocutory order. Both of these cases
are distinguishable from the case
sub judice.
In
Sherrill, this Court stated that a trial court's gag order
prohibiting the parties and attorneys from communicating with any
person or entity not a party to the case, operated to forbid
expression before it took place and constituted a prior restraint.
130 N.C. App. 714, 720, 504 S.E.2d 802, 808 (1998). In
Kaplan, we
reviewed a trial court's grant of a preliminary injunction,
effective only during the trial's duration, restraining the manner
and place in which defendants could picket plaintiff's home. This
Court stated that the loss of First Amendment freedoms, for even
minimal periods of time, unquestionably constitutes irreparable
injury.
Kaplan v. Prolife Action League, 111 N.C. App. 1, 15, 431
S.E.2d 828, 834 (1993). Both cases involved court-imposed
restrictions upon the exercise of First Amendment rights prior to
the resolution of the cases. These court-imposed restrictions
constituted either a prior restraint or the loss of a First
Amendment right for a short period of time. Thus, in
Sherrill and
Kaplan, we found that substantial rights were affected because of
the court-imposed restrictions prohibiting the parties fromexercising First Amendment rights during the pendency of the trial.
In this case
, the trial court did not impose any preliminary
restrictions upon the parties. Any change in defendants' behavior
because of this case is self-imposed. Thus, we reject defendant's
argument based on our holdings in
Sherrill and
Kaplan.
Defendants also argue that in cases where the
New York Times
v. Sullivan rule
(See footnote 1)
applies, an interlocutory appeal from an order
denying summary judgment is necessary to ensure that a defendant's
right to free speech is adequately protected. Defendants further
contend that because the U.S. Supreme Court has long-recognized
the primary importance of 'uninhibited, robust and wide-open
debate' in labor disputes, interlocutory review in cases involving
labor disputes and the exercise of First Amendment rights is
justified in every case. We disagree.
In
Old Dominion Branch No. 496, Nat'l Assoc. of Letter
Carriers, AFL-CIO v. Austin, the United States Supreme Court stated
that federal labor policy favors uninhibited, robust and wide-open
debate in labor disputes. 418 U.S. 264, 272-73, 94 S.Ct. 2770,
2775 (1974). However, the Court in analyzing its prior holding in
New York Times v. Sullivan, limited the application of this
statement to a consideration of the federal labor policy, not as abasis for finding a substantial right in libel actions involving a
labor union. Thus, the Court stated:
[The] freewheeling use of the written and
spoken word, we found, has been expressly
fostered by Congress and approved by the NLRB.
Thus, Mr. Justice Clark acknowledged that
there was 'a congressional intent to encourage
free debate on issues dividing labor and
management,' and noted that 'the Board has
given frequent consideration to the type of
statements circulated during labor
controversies, and ... it has allowed wide
latitude to competing parties.'
The Court therefore found it necessary to
impose substantive restrictions on the state
libel laws to be applied to defamatory
statements in labor disputes in order to
prevent 'unwarranted intrusion upon free
discussion envisioned by the Act.' The Court
looked to the NLRB's decisions, and found that
'although the Board tolerates intemperate,
abusive and inaccurate statements made by the
union during attempts to organize employees,
it does not interpret the Act as giving either
party license to injure the other
intentionally by circulating defamatory or
insulting material known to be false. The
Court therefore found it appropriate to adopt
by analogy the standards of New York Times Co.
v. Sullivan.
Id. (citations omitted).
Following the holding in
Old Dominion, we conclude that under
the facts of this case, the defendants have failed to show that the
trial court placed any First Amendment restrictions or prohibitions
upon them
that affect a substantial right requiring a review of
their interlocutory appeal. Accordingly, we decline to find a
substantial right of the defendants has been impinged.
Dismissed.
Judge BIGGS concurs. Judge GREENE dissents.
============================
GREENE, Judge, dissenting.
I disagree with the majority's conclusions that: (I) there
was no final judgment on any of plaintiffs' claims; and (II) the
partial denial of defendants' summary judgment motion did not
affect their First Amendment rights.
I
A trial court's certification of an interlocutory order for
appeal is proper if the order is a final judgment as to one or
more claims and there is no just reason for delay.
See N.C.G.S.
§ 1A-1, Rule 54(b) (2001). A claim is defined as a cause of
action.
Black's Law Dictionary 247 (6th ed. 1990) [hereinafter
Black's]. A cause of action is defined as [t]he fact or facts
which give a person a right to judicial redress or relief against
another.
Black's at 221;
see also Brown v. Glade Valley Sch.
Inc.,
77 N.C. App. 83, 86, 334 S.E.2d 404, 406 (1985) (the facts
alleged in a complaint determine the validity of a claim, not the
legal theories asserted).
In this case, plaintiffs alleged defamation under three
different legal theories based on a series of statements
published in two union newsletters. While the trial court did
not render final judgment on any of plaintiffs' legal theories,
the trial court did render summary judgment on all of plaintiffs'
factual claims, except for those based on the limited assertionthat defendant . . . maliciously published that it was plaintiffs
who stood by when Ms. Jones was hired, when [defendant] knew he
had approved the hire himself. Thus, there was a final judgment
as to one or more of plaintiffs' claims, and the trial court
properly certified the interlocutory order for appeal under Rule
54(b). Accordingly, this Court should address the question
raised in plaintiffs' appeal of whether the
New York Times v.
Sullivan actual malice standard applies to the facts of this
case.
II
I also disagree with the majority's conclusion that partial
denial of defendants' summary judgment motion did not affect a
substantial right. Defendants contend the trial court misapplied
the
New York Times v. Sullivan actual malice standard,
infringing on their First Amendment right to free speech. Because
misapplication of the actual malice standard, detrimental to
defendants, would have a chilling effect on their rights of free
speech, the trial court's order does affect a substantial right.
See Sherrill v. Amerada Hess Corp.,
130 N.C. App. 711, 719, 504
S.E.2d 802, 807 (1998) (order implicating First Amendment rights
affects a substantial right). Accordingly, this Court should
also address the merits of defendants' appeal.
Footnote: 1