Hi-Tech Pharmaceuticals, Inc. v. Cohen
Hi-Tech Pharmaceuticals, Inc. v. Cohen
Opinion of the Court
MEMORANDUM OF DECISION
I. INTRODUCTION
This action involves claims by Hi-Tech Pharmaceuticals, Inc. (“Hi-Tech”) against Pieter A. Cohen (“Cohen”) for libel, slander, product disparagement, and violation of Massachusetts General Laws, chapter 93A (“chapter 93A”). Hi-Tech’s claims
A. Factual Background
Hi-Tech is a pharmaceutical company that manufactures, distributes, and sells dietary supplements. Pl.’s Statement Undisputed Material Facts Pursuant Local Civil Rule 56.1 (“Pl.’s Statement Facts”) ¶ 1, ECF No, 70. Cohen, an internist and professor of medicine, id. ¶ 2, is the first author of an article entitled “An amphetamine isomer whose efficacy and safety in humans has never been studied, B-methyl-phenylethylamine (BMPEA), is found in multiple dietary supplements” (the “Article”), id. ¶ 7; Def., Pieter A. Cohen’s, Statement Facts Supp. Mot. Summ. J. (“Def.’s Statement Facts”) ¶ 5, ECF No. 61. The Article was published in Drug Testing and Analysis, a peer-reviewed journal, in April 2015. Def.’s Statement Facts ¶5; PL’s Statement Facts ¶ 7. It identifies six Hi-Tech supplements whose labels indicate that they contain “Acacia rigidula” and reports that those supplements contain a synthetic substance called BMPEA, even though, according to the Article, “there is no scientific evidence that BMPEA has ever been extracted from Acacia rigidu-la[,]” Def.’s Mem. Supp. Special Mot. Dismiss Pl.s’ Compl. Pursuant Mass. Gen. Laws ch. 231, § 59H, Ex. 2 (“Article”) 5, ECF No. 14-2. The Article goes on to state that “BMPEA’s effect on human health is entirely unknown” and that it “is not a legitimate supplement ingredient.” Article 6. Cohen stated that his conclusions were based on his review of various scientific articles and discussions with scientists, Def.’s Statement Facts ¶¶ 53-54, though the precise scope of Cohen’s research and the sources of which he was aware at the time of publication are disputed, see PL’s Resp. Def. Pieter A. Cohen’s Statement Facts Supp. Mot. Summ. J. ¶¶ 53-54, ECF No. 68; Def.’s Resp. PL’s Statement Material Facts Pursuant Local Civil Rule 56.1, Supp. PL’s Mot. Partial Summ. J. ¶ 36, ECF No. 72.
The Article calls on the Food and Drug Administration (“FDA”) to ensure supplements containing BMPEA are pulled from the market and urges manufacturers to recall, and consumers to avoid, BMPEA-containing products. Def.’s ■ Statement Facts ¶¶ 9-10; Article 6. Following the publication of the Article, Cohen spoke about supplements containing BMPEA in various media appearances, PL’s Statement Facts ¶¶ 9-11, stating, inter alia, that various supplements purportedly containing Acacia rigidula instead contain an untested “designer stimulant called BMPEA” that “is in a sense, being tested on buyers,” id. 111.
Hi-Tech issued a press release refuting Cohen’s contentions. Def.’s Statement Facts ¶ 23. Upon receiving a letter from the FDA stating that Hi-Tech’s labeling of its BMPEA-containing products is in violation of federal law and requesting that it take appropriate action, id. ¶20, Hi-Tech issued an additional press release objecting to the FDA’s letter, id. ¶ 21.
Hi-Tech claims that it has suffered economic harm as a result of Cohen’s statements, which it maintains are false, in the
B. Procedural History
Hi-Tech initiated this action on April 5, 2016. Compl., ECF No. 1. Cohen filed a timely motion to dismiss for failure to state a claim, Def., Pieter A. Cohen’s, Mot. Dismiss Compl., ECF No. 15, as well as a special motion to dismiss pursuant to the Massachusetts “anti-SLAPP”
The parties filed cross-motions for summary judgment on September 9, 2016. PL’s Mot. Partial Summ. J., ECF No. 56; Def.’s, Pieter A. Cohen, M.D., Mot. Summ. J., ECF No. 59. 'Cohen sought summary judgment on each of' Hi-Tech’s claims, Mem. Def., Pieter A. Cohen, Supp. Mot.-Summ. J. (“Def.’s Mem.”) 1, ECF No. 60, while Hi-Tech requested judgment as matter of law on a single issue, Br.’ Supp. PL Hi-Tech’s Mot. Partial Summ. J. (“PL’s Mem.”) 1, ECF No. 57. The Court- heard arguments on the parties’ summary judgment motions on September 29, 2016. Elec. Clerk’s Notes, ECF No. 81. On October 5, 2016, the Court entered an order granting in part and denying in part Cohen’s motion—specifically, the Court granted the motion as to Hi-Tech’s product disparagement and chapter 93A claims and denied it as to Hi-Tech’s defamation claim (but limited Hi-Tech’s recovery on that claim to special damages)—and denied Hi-Tech’s motion. Order, ECF No. 88. A jury trial on the surviving claims for libel and slander
II. ANALYSIS
Summary judgment is proper “[w]hen the facts, so marshalled, show ‘that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law[.]’ ” Mandel v. Boston Phoenix, Inc., 456 F.3d 198, 205 (1st Cir. 2006) (quoting Fed. R. Civ. P. 56(c)). The movant bears the burden of proving “an absence of evidence to support the nonmoving party’s case.” Clifford v.
Cohen and Hi-Tech each moved for summary judgment. Cohen sought dismissal of the entire action, arguing, inter alia, that Hi-Tech failed to prove the elements of defamation and that Hi-Tech’s other claims were merely derivative of its defamation claim. Hi-Tech, meanwhile, moved for partial summary judgment on the sole issue of whether Cohen’s statements amounted to actionable fact, rather than nonactionable opinion. The Court discusses these motions in turn.
A. Cohen’s Motion
Cohen argues that he is entitled to judgment as matter of law on each of Hi-Tech’s claims for defamation, product disparagement, and violation of chapter 93A. In particular, he argues that Hi-Tech’s defamation claim—and by extension, each of its other claims—is legally infirm because it is premised on nonactionable statements, and because Hi-Tech failed to show that Cohen possessed the requisite level of fault. Def.’s Mem. 7-13. Hi-Tech maintains that the statements at issue constitute actionable statements of fact, that it has raised at least a triable issue as to Cohen’s culpability, and that its additional claims represent viable routes to recoveiy. Pl.’s Mem. 5-11.
1. Defamation
To prevail on a defamation claim under Massachusetts law, a plaintiff must show that: (1) “[t]he defendant made a statement, concerning the plaintiff, to a third party”; (2) “[t]he statement could damage the plaintiffs reputation in the community”; (3) “[t]he defendant was at fault in making the statement”; and (4) “[t]he statement either caused the plaintiff economic loss (traditionally referred to as ‘special damages’ or ‘special harm’), or is actionable without proof of economic loss.” Ravnikar v. Bogojavlensky, 438 Mass. 627, 629-30, 782 N.E.2d 508 (2003) (internal footnotes and citations omitted). Cohen contends, first, that his statements are not actionable under this framework, and second, that Hi-Tech has failed to show the requisite level of fault under the third element of this test. '
a. Actionable Statements
Cohen argues that he is entitled to judgment as matter of law on Hi-Tech’s defamation claim because the statements at issue constitute non-actionable opinion, Def.’s Mem. 13-15, and that to the extent they include expressions of fact, they are nonetheless not actionable because they are privileged “scientific conclusions about unsettled matters of scientific debate,” id. at 15-18.
i. Fact Versus Opinion
“Statements of opinion are constitutionally protected and thus are not actionable.” Friedman v. Boston Broadcasters, Inc., 402 Mass. 376, 379, 522 N.E.2d 959 (1988). Whether a statement constitutes fact or opinion depends on the totality of the circumstances, including “all the words used,” any “cautionary terms used by the person publishing the statement,” and “the medium by which the statement is disseminated and the audience to which it is published.” Cole v. Westinghouse Broadcasting Co., 386 Mass. 303, 309, 435 N.E.2d 1021 (1982) (internal quotation marks and citations omitted). “The determination whether a statement is one of fact or opinion is generally considered a question of law[,]” id. at least where the statement “unambiguously constitutes either fact or opinion,” Friedman, 402 Mass, at 379, 522 N.E.2d 959 (internal quotation marks and citations omitted). Where the statements at issue “could have been understood by the average reader in either sense, [however,] the issue must be left to the jury’s determination.” Lyons v. New Mass Media, Inc., 390 Mass. 51, 59, 453 N.E.2d 451 (1983) (internal quotation marks and citations omitted).
Cohen’s statements concerning the nature of Hi-Tech’s supplements and the safety of BMPEA fairly can be read as statements of fact or, at the very least, “opinions that imply an assertion of fact.” North Shore Pharmacy Servs., Inc. v. Breslin Assocs. Consulting LLC, 491 F.Supp.2d 111, 127 (D. Mass. 2007) (Gertner, J.). It may well be that, as Cohen avers, this is merely “a dispute of opinion over the meaning of the relevant scientific literature[,]” Def.’s Mem. 15. To be sure, certain of Cohen’s statements, such as those about whether supplements containing BMPEA are safe or effective, are protected opinion. Other statements, however, such as those regarding whether BMPEA can be derived from Acacia rigidula and whether BMPEA has been tested in humans, may be regarded by a jury as expressions of fact, particularly where, as Hi-Tech points out, Cohen represented his statements as factual in nature, Pl.’s Opp’n 12-14.
ii. Scientific Conclusions
Cohen argues that his statements constitute scientific conclusions that ought be protected under the Second Circuit’s reasoning in ONY, Inc. v. Cornerstone Therapeutics, Inc., 720 F.3d 490 (2d Cir. 2013). That opinion has much to commend it. Indeed, this Court agrees that “[w]here ... a statement is made as part of an ongoing scientific discourse about which there is considerable disagreement, the traditional dividing line between fact and opinion is not entirely helpful.” Id. at 497. Further, the Court recognizes the conflict on which the ONY court zeroed in—namely that “it is the very premise of the scientific enterprise that it engages with, empirically verifiable facts about the universe[,]” and yet “it is the essence of the scientific method that the conclusions of empirical research are tentative and subject to revision, because they represent inferences about the nature of reality based on the results of experimentation and observation.” Id. at 496.
The Court nonetheless declines to hold that each of Cohen’s challenged statements is protected, as matter of law, by a scientific debate privilege. First, as Hi-Tech points out, Pl.’s Opp’n 14, the First Circuit has yet to adopt this privilege (although it is not clear that it has had occasion to do so). Second, the scope of the privilege adopted in ONY is relatively narrow: “to the extent a speaker or author draws from conclusions from non-fraudulent data, based on accurate descriptions of the data and methodology underlying those conclusions, on subjects about which there is legitimate ongoing scientific disagreement, those statements are not grounds for a claim .... ” ONY, 720 F.3d at 498.
The parties disagree on the level of fault Hi-Tech must prove in order to prevail on its defamation claim, as well as on whether Hi-Tech meets the applicable standard. Cohen argues that Hi-Te'ch constitutes a public figure and that the challenged statements pertain to a matter of public concern. Def.’s Mem. 7-9, 12-13. Accordingly, he argues, Hi-Tech is réquired—and fails—to demonstrate actual malice on Cohen’s part. Id. at 9-13. Hi-Tech, meanwhile, disputes that it is a public figure and the existence of an underlying matter of public concern, and argues that even were the Court to apply an actual malice standard, Hi-Tech has made a showing sufficient to survive summary judgment. Pl.’s Opp’n 4-10. Neither party has it exactly right.
Since the applicable fault standard turns on (a) Hi-Tech’s status as a public or private figure, and (b) whether Cohen’s statements implicate a matter of public concern, this section addresses those issues before explaining the relevant standard and evaluating whether Hi-Tech has made a sufficient showing as to fault on this summary judgment record.
i. Private versus Public Figure
Whether a plaintiff is a public figure is a matter of law. E.g., Pendleton v. City of Haverhill, 156 F.3d 57, 67-68 (1st Cir. 1998). “[Defendants bear the burden of demonstrating that a plaintiff is a public figure.” Alharbi v. Theblaze, Inc., Civ. No. 14-11550-PBS, 199 F.Supp.3d 334, 355, 2016 WL 4203402, at *14 (D. Mass. Aug. 9, 2016) (Saris, C.J.) (citations omitted). A limited purpose public figure
Cohen argues that Hi-Tech is a public figure for the purpose of this ease because it issued press releases in connection with the sale of the products at issue
ii. Matter of Public Concern
“To qualify as a matter of public concern, ... speech (based on the content, ' form, and context) must touch on issues in which the public (even a small slice of the public) might be interested ....” Pan Am Sys., Inc. v. Atl. N.E. Rails and Ports, Inc., 804 F.3d 59, 66 (1st Cir. 2015). Whether a statement ‘touches on a matter of public concern depends on the entire record, including “the speech’s content and the public’s perception of the topic,” Levinsky’s, Inc. v. Wal-Mart Stores, Inc., 127 F.3d 122, 133 (1st Cir. 1997), as well as “a speaker’s subjective intent to create a public discourse[,]” McMann v. Doe, 460 F.Supp.2d 259, 269 n.58 (D. Mass. 2006) (Tauro, J.) (internal citations omitted).
Cohen’s statements qualify as pertaining to matters of public concern insofar as they implicate public health, and safety issues and call upon the FDA to utilize its enforcement authority. See, e.g. Howcroft v. City of Peabody, 51 Mass.App.Ct. 573, 588, 747 N.E.2d 729 (2001) (“A specific violation of a law that creates a risk to public health, safety or good governance ... is a matter of public concern.” (quoting Myers v. Hasara, 226 F.3d 821, 827 (7th Cir. 2000))); Veilleux v. Nat’l Broadcasting Co., 206 F.3d 92, 132 (1st Cir. 2000) (“the regulation of public health or safety” may be a matter of public concern). Hi-Tech’s argument that no issue of public concern existed until Cohen published his article and undertook a media tour raising questions about the safety of BMPEA, PL’s Opp’n 6, fails because it in effect presumes the falsity of Cohen’s statements.
iii. Negligence Versus Actual Malice
As Hi-Tech is a private, rather than public, figure, Hi-Tech need only show Cohen was negligent to prevail on its defamation claim. E.g., New England Tractor-Trailer Training of Conn., Inc, v. Globe Newspaper Co., 395 Mass. 471, 477, 480 N.E.2d 1005 (1985) (“private persons or entities may recover compensation (assuming proof of all other elements of a claim for defamation) on proof that the defendant was negligent in publishing defamatory words which reasonably could be interpreted to refer to the plaintiff.”). Since Cohen’s statements implicate an issue of public concern, however, Hi-Tech is limited to compensatory damages (i,e., presumptive and punitive damages are unavailable) unless it can demonstrate actual malice. Levinsky’s, 127 F.3d at 128 (“a private individual who seeks damages for a defamatory statement involving a matter of public concern cannot recover presumed or punitive damages absent a showing of actual malice”).
On the summary judgment record, Hi-Tech has failed to demonstrate, “by clear and convincing proof,” that Cohen acted with “actual malice.” Bruno & Stillman, 633 F.2d at 586. Acting with “actual malice,” in these circumstances, means “with knowledge that [the challenged statement] was false or with reckless disregard of whether it was false or not.” New York Times Co. v. Sullivan, 376 U.S. 254, 280, 84 S.Ct. 710, 11 L.Ed.2d 686 (1964). Proof that “a reasonably prudent man would [not] have published, or would have investigated before publishing,” is not sufficient to establish reckless disregard. St. Amant v. Thompson, 390 U.S. 727, 731, 88 S.Ct. 1323, 20 L.Ed.2d 262 (1968). Rather,' “[t]here must be sufficient evidence to permit the conclusion that the defendant in fact entertained serious doubts as to the truth of his publication.” Id. While Hi-Tech seeks to demonstrate that Cohen acted with actual malice by emphasizing his “bold and broad statements,” pointing out apparent inconsistencies, and suggesting he took a cavalier approach to his public statements, PL’s Opp’n 8, the Court is not convinced that Hi-Tech has raised a genuine issue of material fact as to malice. As there is insufficient evidence for a jury reasonably to infer that Cohen “serious[ly] doubtfed]” the veracity of his statements, St. Amant, 390 U.S. at 730, 88 S.Ct. 1323, and yet published them anyway, the Court rules that, as matter of law, Hi-Tech cannot establish actual malice. Accordingly, punitive and presumptive damages are unavailable. See Levinsky’s, 127 F.3d at 128.
Hi-Tech has, however, raised questions of fact as to whether Cohen’s statements were negligent. In order to establish negligence in a defamation action, a plaintiff must show that the defen
2. Product Disparagement
Cohen argues that Hi-Tech’s product disparagement claim is wholly derivative of its defamation claim and that the disparagement claim therefore must fail for the reasons Cohen set forth in support of his argument for judgment as matter of law on the defamation claim. Def.’s Mem. 18. While the Court agrees with Cohen’s conclusion— he., it rules that Cohen is entitled to judgment as matter of law on Hi-Tech’s product disparagement claim—it pauses to make a few observations about the differences between this claim and the defamation claim (which, as discussed supra, survives summary judgment, at least as to compensatory damages).
As the Supreme Judicial Court recently articulated in HipSaver, Inc. v. Kiel, 464 Mass. 517, 984 N.E.2d 755 (2013).
[a]n action for commercial disparagement is similar in many respects to an action for defamation, but there are important differences .... A defamation action, which encompasses libel and slander, affords a remedy for damage to the reputation of the injured party. By comparison, an action for commercial disparagement affords a remedy for harm to the economic interest of the injured party that results in pecuniary loss ...
.... [I]n order to prevail on a claim alleging commercial disparagement, a plaintiff must prove that a defendant: (1) published a false statement to a person other than the plaintiff; (2) “of and concerning” the plaintiffs products or services; (3) with knowledge of the statement’s falsity or with reckless disregard of its truth or falsity; (4) where pecuniary harm to the plaintiffs interests was intended or foreseeable; and (5) such publication resulted in special damages in the form of pecuniary loss.
Id. at 522-23, 984 N.E.2d 755 (internal citations and footnotes omitted). The Hip-Saver court went on to note that the third element “mirrors what has been termed ‘actual malice’ in the defamation context.” Id. at 529-30, 984 N.E.2d 755.
HipSaver makes clear that unlike in a defamation case against a private figure, in which a plaintiff need only show the defendant was negligent, e.g., New
3. Chapter 93A
Cohen argues that he is entitled to judgment as matter of law on Hi-Tech's claim under Massachusetts General Laws,. chapter 93A, because Hi-Tech’s chapter 93A claim suffers (according to Cohen) from the same fatal flaws as its defamation claim, and" because there was no underlying business relationship between the parties, as is necessary to give rise to a chapter 93A claim. Def.’s Mem. 18-19. While Hi-Tech correctly points but that chapter 93A is a broadly construed remedial statute, Pl.’s Opp’n 16-17, it fails to convince this Court that the actions at issue here fall within its ambit; Indeed, the courts of the Commonwealth have made clear that recourse under chapter 93A is appropriate only where the parties were “engaged in trade or commerce with each other and therefore acting in a business context.” Stop & Shop Supermarket Co. v. Loomer, 65 Mass.App.Ct. 169, 176, 837 N.E.2d 712 (2005) (internal quotation marks and citations omitted). The Court fails to discern any sort of transactional relationship between Hi-Tech and Cohen. Thus, judgment as matter of law for Cohen on Hi-Tech’s chapter 93A claim1 is proper.
B. Hi-Tech’s Motion
Hi-Tech sought summary judgment on a particular narrow issue—namely, it asked this Court to rule, as matter, of law, that Cohen’s statements constituted actionable statements of fact, rather than protected
III. CONCLUSION
For the foregoing reasons, the Court’s earlier order, ECF No. 88, GRANTED IN PART and DENIED IN PART Cohen’s motion for summary judgment, ECF No. 59, and DENIED Hi-Tech’s motion for partial summary judgment, ECF No. 56,
. "SLAPP" stands for "strategic lawsuit against public participation." See Mass. Gen. Laws ch. 23, § 59H.
. Of particular concern to the Court was whether enforcement of the anti-SLAPP statute in federal court might infringe on the parties’ Seventh Amendment right to a jury trial. See generally Mem. Decision, ECF No. 66. For a discussion of other issues relevant to the application of anti-SLAPP statutes in federal court, see Yando Peralta, State Anti-SLAPPS and Erie: Murky, But Not Chilling, 26 Fordham Intell. Prop. Media' & Ént. L.J. 769 (2016); Colin Quinlan, Erie and the First Amendment: State Anti-SLAPP Laws in Federal Court After Shady Grove, 114 Colum, L, Rev, 367 (2014).
.Under Massachusetts law, "defamation .,, encompasses libel- and slander.” HipSaver, Inc. v. Kiel, 464 Mass. 517, 522, 984 N.E.2d 755 (2013). The Court thus addresses Hi-Tech’s libel and slander claims jointly under the rubric of defamation.
. Cohen also argues, in his opposition to Hi-Tech’s motion for summary judgment, that he is immune from liability on the basis of his statements because they constitute petitioning activity. Def.'s Opp’n Pl.’s Mot. Partial Summ. J. 9-12, ECF No. 69. This argument is based on the Noerr-Pennington doctrine. See id. (citing United Mine Workers v. Pennington, 381 U.S. 657, 670, 85 S.Ct. 1585, 14 L.Ed.2d 626 (1965); Eastern R.R. Presidents Conference v. Noerr Motor Freight, Inc., 365 U.S. 127, 81 S.Ct. 523, 5 L.Ed.2d 464 (1961)). But Noerr-Pennington does not guarantee absolute immunity for petitioning conduct. See
. The Court notes that while Hi-Tech makes much of Cohen’s failure to qualify his statements as opinion, see PL’s Opp’n 12-13, express qualifications are not decisive on the question of whether a statement, constitutes fact or opinion. Cf. Milkovich v. Lorain Journal Co., 497 U.S. 1, 19, 110 S.Ct. 2695, 111 L.Ed.2d 1 (1990) ("Simply couching statements in terms of opinion does not dispel the[] implication[ ] [of a false assertion of fact]; and the statement, ‘In my opinion Jones
. Note that ONY dealt with whether statements were actionable under the Lanham Act, rather than with claims for common law defamation. 720 F.3d at 498. Hi-Tech has not argued that this distinction is meaningful.
. What is more, since Cohen’s statements implicate a matter of public concern, Hi-Tech must show Cohen acted with actual malice in order to recover anything besides special damages, and since this is a defamation claim, it must show that any injury was proximately caused by reputational damage resulting from Cohen’s statements. See infra.
.While the Court is convinced that its conclusion in this case—namely that the jury ought decide whether Cohen's statements are actionable expressions of fact—is correct, it is sensitive to the concerns raised in ONY regarding the application of the "fact-opinion paradigm of First Amendment jurisprudence" to “[s]cientific academic discourse^]” 720 F.3d at 496. Unsurprisingly, the case law in this area is inconsistent, with some courts
In this Court's view, the interests of justice are best served by clearly instructing the jury that determining the statements at issue to be expressions of fact is a prerequisite to liability. Here, should a jury find that all of Cohen’s challenged statements, viewed in context, properly are categorized as expressions of opinion, its inquiry ends there.
. As Cohen chiefly argues that Hi-Tech ought have "public figure” status by virtue of its position as a limited purpose public figure— as opposed to an "all-purpose public figure” or an "involuntary public figure,” Alharbi v. Theblaze, Inc., Civ. No. 14-11550-PBS, 199 F.Supp.3d 334, 354-55, 2016 WL 4203402, at *14 (D. Mass. Aug. 9, 2016) (Saris, C.J.)—the Court focuses on this particular breed of public figure,
. Moreover, Hi-Tech’s reliance on Bruno & Stillman in support of its argument that Cohen’s statements did not touch on a matter of public concern, Pl.’s Opp'n 6-7, is misplaced, since that case grappled with the question of whether there was a public controversy for the purpose of deciding whether the plaintiff constituted a public figure, See 633 F,2d at 589-90.
. Cohen reads Levinsky's too broadly when he concludes on the basis of it that "[b]ecause Dr. Cohen’s statements relate to a matter of public concern, Hi-Tech must show ‘actual malice’ to prevailf,]” Def.’s Mem. 13. As the quoted language from Levinsky's makes clear, that case supports. Cohen’s conclusion only insofar as it relates to claims for compensatory damages.
. Hi-Tech labels its third count as a claim for "product disparagemenVtrade libel.” Compl. 20. The terms "disparagement,” "product disparagement,” "commercial disparagement,” and "trade libel” are interchangeable. See HipSaver, Inc. v. Kiel, 464 Mass. 517, 518 n.1, 984 N.E.2d 755 (2013) ("The tort of 'commercial disparagement’ also is known as .., ‘trade libel.' ”) (citation omitted); Great Am. Ins. Co. v. Riso, Inc., No. Civ.A. 04-12260-GAO, 2006 WL 4158730, at *4 (D. Mass. Mar. 31, 2006) (O'Toole, J.) ("[C]ourts hav[e] variously described the same type of wrong as ‘disparagement,’ 'product disparagement,’ [and] 'trade libel.’ ”).
. Although the Supreme Judicial Court saw "no need formally to adopt the term 'actual malice' in [the product disparagement] context,” HipSaver, 464 Mass, at 531, 984 N.E.2d 755, it acknowledged the equivalency of the actual malice standard and the product . disparagement fault standard, id at 529-30, 984 N.E.2d 755, which it derived directly from the Restatement (Second) of Torts, id. 'at 531, 984 N.E.2d 755.
. The’subtle distinction between claims for defamation and product disparagement—they "may merge when a disparaging statement about a product reflects on a reputation of the business that ... sold it[,]” HipSaver, 464 Mass. at 522 n.6, 984 N.E.2d 755 (quoting Dairy Stores, Inc. v. Sentinel Publ. Co., 104 N.J. 125, 516 A.2d 220, 224 (N.J. 1986))—is significant in a case like this one insofar as it bears on the scope of available relief. Hi-Tech may recover compensatory damages for injury to its “reputation” (i,e„ defamation), but not for "harm to [its] economic interests[,]” (i.e,, product disparagement). Id. at 522, 984 N.E.2d 755; see also Dairy Stores, 516 A.2d at 224 (internal citations omitted) ("A defamation action .,. affords a remedy for damage to one’s reputation. By comparison, an action for product disparagement is an offshoot of the cause of action for interference with contractual relations, such as. sales to a prospective buyer.”).
Put another way, were a jury to .find that Hi-Tech’s business suffered because Cohen’s statements "discredit[ed] the quality or utility of [Hi-Tech’s] goods, • without in any’ way reflecting unfavorably on the producer or owner[,]” Restatement (Second) of Torts § 573 cmt. g, this would amount to disparagement and would be an insufficient basis on which to award damages, since Hi-Tech’s disparagement claim fails as matter of law. Hi-Tech's entitlement to damages hinges on a jury’s finding that Hi-Tech’s business suffered because Cohen’s statements harmed its reputation, and that harm produced economic loss. Cf. Picker Int’l, Inc. v. Leavitt, 865 F.Supp. 951, 964 (D. Mass. 1994) (Wolf, J.) ("Generally, where the discussion involves a rival’s services or product, it is not considered libelous’ unless it 'imputes to the corporation fraud, deceit, dishonesty, or reprehensible conduct.’ ” (quoting U.S. Healthcare, Inc. v. Blue Cross of Greater Philadelphia, 898 F.2d 914, 924 (3d Cir. 1990))).
Reference
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