Posted:
Yes, that's true.
And not every case of on-line posting of comments by a resident is protected speech, either. Were I hosting a website for residents of an HOA, I would still err on the side of caution and make sure the members who post are aware of the potential problems that can arise from "knee-jerk" comments about board members:
In this case below, the Defendant is the HOA. The Plaintiff brought charges against the HOA challenging a special assessment and their right/legality in enacting certain covenants. The HOA filed the below counterclaim:
"2. Defendant's counterclaims
The Defendant has asserted two counterclaims; the first alleging libel; and the second, seeking injunctive relief. Those claims will be addressed separately below.
A. Libel
In the amended counterclaim filed on May 21, 2007, the Defendant has alleged in excess of fifty separate instances of libel. While some of the allegations directly refer to the Board of Directors of the Defendant B Lazy M Ranch Owners Association, others refer to individuals acting in their capacity as officers and directors. Since a corporation can only act through its officers and directors, the Court concludes that libel directed toward an officer or director acting in their official capacity is actionable by the corporation itself. The Court wants it to be clear that some statements directed at either past or present board members not related to their duties as board members were not considered by the Court.
The Court first concludes that the Defendant's claim is governed by C.J.I. 4th, 22:4. The Court further finds that the Defendant, although a non-profit corporation, has the legal status as a private person. See Diversified Management v. Denver Post, 653 P.2d 1103 (Colo. 1982). The Court also concludes that the matters raised in the libelous statements are not of public concern. See Quigley v. Rosenthal, 43 F.Supp. 2d 1163 (D.Colo. 1999). To constitute a matter of public concern, the matters raised must have been of public concern prior to the publication of the defamatory statement. No evidence was presented that the conduct of the Defendant was a matter of public concern prior to the Plaintiff's publication of those matters.
The Court next concludes that many, if not most, of the instances identified by the Defendant are libelous per se. That is, the statements are defamatory on their face and clearly reference the Defendant or its officers and directors acting in their official capacity. These statements tend to harm the Defendant's reputation in the community. See C.J.I. 4th, 22:7. In addition, many of the instances allege criminal misconduct, refer to the board members as incompetent in the performance of their duties, and some even include references to psychiatric illnesses. While the Court does not intend to go through each of those instances, some examples are illustrative. The Court believes that all of these publications relied on by the Defendant occurred within 12 months preceding the filing of the original complaint in this case and are therefore within the limitation period pursuant to the earlier Order of this Court. The references will be to the Defendant's exhibit designations.
ex. v: HOA consists of "wannabe dictators"
ex. w: HOA "almost totally corrupt"
ex. y: "dictatorial ravages of their rogue boards of directors", AND allegations of criminal misconduct
ex.cc: "power and money seekers like this California developer"
ex. dd: "Colorado's poster child for corrupt homeowners associations"
ex. ee: "Ranch psychopaths"
ex. ff: psychopaths
ex. jj: obsessive-compulsive disorder
ex. mm,
p 9; "Ranch BoD is getting a little nervous about somebody catching them with their fingers in the cash register?"
p. 32: referring to supporters of the BoD as "sycophants" which is defined by Webster's as being a servile flatterer or a parasite.
p. 37: BoD involved in a "conspiracy to defraud, discrimination, the violation of fiduciary duties"
p. 46: assertions that the BoD attorney as well as a BoD member who happens to be an attorney should be reported to the Colorado Bar for unethical conduct, AND allegations of federal and state law violations which should be reported to appropriate authorities
p. 66: violation of state and federal laws
p. 71: "and the venal HOA beat goes on"
p. 84: "the President of our HOA--appears to be the most inept, incompetent "mouthpiece" that any cabal in existence has probably ever experienced.
p. 91: "all the improper/illegal BLM ROA skeletons-in-the-Ranch-closet"
p. 106: accusations of "rigging the votes"
ex. nn:
May 31, 2005 email asserting "apparent violations of state of Colorado and federal laws (civil and criminal)" by the BoD.
Numerous e-mails asserting civil and criminal violations by BoD, including RICO violations, violations of "constitutional rights", "serious legal violations", etc.
Aug. 10, 2006 email asserting at least one board member may be afflicted with a very serious and destructive-to-others mental/emotional disorder
There is no dispute that the Plaintiff's statements were published (see C.J.I. 4th 22:6).
The Court concludes the statements made by the Plaintiff are false. Testimony presented by the Defendant contradicted these allegations, and no factual evidence was presented by the Plaintiff to support her contention that the Defendant violated state or federal law, that the Defendant committed a civil wrong, or that any officers or directors suffered from a mental illness. Perhaps most interestingly, even though this case was commenced by the Plaintiff, the only assertion of wrong-doing which she raised related to the process of amending the covenants. Despite her many references to wanting to present these matters in court, no claim was made by her for any civil or criminal wrong of any kind.
The Plaintiff does not deny making any of the more than fifty publications identified by the Defendant. Instead, she argues that she is just stating her opinion. While statements of pure opinion may be protected, in this case the Plaintiff asserts factual support for many of her opinions. See Sall v. Barber, 782 P.2d 1216 (Colo. App. 1989) and Burns v. McGraw-Hill, 659 P.2d 1351 Colo. 1983). Therefore, those statements of opinion which imply or state factual support are actionable.
The more difficult question is one of damages. Because of the difficulty in calculating damages in libel claims, in instances of libel per se, damages are presumed. No special damages need be proven. As stated by one well-known author:
Good name in man and woman, dear my lord,
Is the immediate jewel of their souls:
Who steals my purse steals trash; 'tis something, nothing;
'Twas mine, 'tis his, and has been slave to thousands;
But he that filches from me my good name
Robs me of that which not enriches him
And makes me poor indeed.
William Shakespeare, "Othello", Act 3 scene 3
In this case, the Court finds by clear and convincing evidence that the Defendant has proven its counterclaim of libel, and that the conduct of the Plaintiff was both intentional and for the express purpose of causing harm to the Defendant ROA as well as to the individual board members. Accordingly, the Court awards damages to the Defendant and against the Plaintiff in the amount of $10,000.
B. Injunctive Relief
The Defendant also seeks injunctive relief to prohibit the Plaintiff from publishing libelous materials and from contacting the ROA as well as the individual members of the association. The Court recognizes that the issuance of an injunction, particularly when it restricts the free speech rights of a party, is a drastic remedy, and the scope of the injunction must be narrowly limited to serve its legitimate purposes. However, the Court is satisfied from the evidence that the Plaintiff has engaged in intentional acts of harassment over a period of many years; that the acts of the Plaintiff are not entitled to constitutional protection; that the ROA has no adequate remedy at law; and that unless the Court issues an injunction the conduct of the Plaintiff is likely to continue.
The Plaintiff is therefore enjoined from the following:
1. Publication in any manner or forum, including, but not limited to, the news media, letters to editors, community newsletters, and internet and blog postings of the name of the B Lazy M Ranch Owners Association, the names of its property owners, or the names of its past and present board members;
2. Publication in any manner or forum, including, but not limited to, the news media, letters to editors, community newsletters, and internet and blog postings alleging criminal conduct, civil wrongs, and mental and/or psychiatric conditions, which refer directly or indirectly to the B Lazy M Ranch, the B Lazy M Ranch Owners Association, its property owners, or its past and present board members;
3. Communication by any means, including but not limited to, e-mail, letter, telephone, or in person with any member of the B Lazy M Ranch Owners Association, its property owners, and its past and present board members which in any way alleges criminal conduct, civil wrongs, or mental or psychiatric conditions by any past or present board member of the B Lazy M Ranch Owners Association.
4. Because prohibition of future misconduct will not remedy the continuing harm which may result on the on-going publication on the internet or blogs of some of the defamatory statements identified by the Defendant, the following mandatory injunction shall also issue:
Within 15 days of this Order, the Plaintiff shall contact the American Homeowners Resource Center, the Gazette YourHub, and any other internet website or blog on which she has posted contributions and shall request that all postings made by her which identify or name the B Lazy M Ranch Owners Association, the names of its property owners, or the names of its past and present board members, be removed from said website or blog. Within 30 days of this Order, the Plaintiff shall file with the Court and provide copies to opposing counsel proof of compliance with this Order.
In order to preserve the Plaintiff's right to seek redress of any future grievances, if she believes that any present board member of the B Lazy M Ranch Owner's Association has violated any law or has acted in contravention of their duties as officers or directors, the Plaintiff shall first notify, in writing, the president of the B Lazy M Ranch Owner's Association of the alleged violation, describing in detail the facts which she believes constitutes the violation and the specific statute, duty, or common law which she alleges has been violated. The B Lazy M Ranch Owner's Association shall then have 30 days to respond in writing. If the Plaintiff is dissatisfied with the response, she may then petition the Court for permission to further publish information concerning the alleged violation. No publication which is otherwise prohibited above shall occur without prior court approval.
C. Attorney Fees
The Defendant also seeks recovery of its attorney fees. The Court has previously Ordered in Section 1 above that the Defendant is entitled to recover its attorney fees in defending the Plaintiff's complaint. The Court is also satisfied that the Defendant is entitled to recover its attorney fees in seeking an injunction both under the terms of the covenants (to assure quiet enjoyment) as well as the provisions of CCIOA which permit the award of attorney fees in covenant enforcement actions. However, the Defendant has not presented any authority for awarding attorney fees in libel claims. The primary purpose of the libel claim was to obtain an award of damages, not to enforce the covenants. See Colorado Homes, Ltd. v. Loerch-Wilson, 43 P.3d 718 (Colo. App. 2001). Accordingly, the Defendant is not entitled to recover its attorney fees incurred in pursuit of the libel action.
Within 20 days, the Defendant is Ordered to submit an affidavit in support of its claimed attorney fees, and if possible, separate from the total amount those fees incurred in the libel claim. If the Defendant is not able to separate those fees, the Court will make an determination.
If the Plaintiff requests a hearing on the reasonableness of the Defendant's fees, within ten days a request for hearing shall be filed.
So Ordered October 24, 2007.
BY THE COURT
THOMAS L. KENNEDY
DISTRICT COURT JUDGE - COLORADO"
http://www.hoatruebeliever.com/jackson_verdict.htm
