Sindorf v. Jacron Sales Company, Inc.
Facts
After resigning from Jacron and beginning work for Tool Box, Sindorf was summoned to meet with Tool Box's president, Brose, who relayed and played a recorded call from Fridkis, a vice president of a Jacron subsidiary. In that call, Fridkis said there had been cash sales and merchandise unaccounted for, warned Brose to watch Sindorf carefully, and implied that Sindorf had stolen items. Jacron's president had instructed Fridkis only to verify whether Sindorf was working for Tool Box and whether he had begun while still on Jacron's payroll; those instructions did not implicate Sindorf in theft or other criminal conduct. Sindorf denied the accusations, and Tool Box later found nothing missing from the inventory entrusted to him.
Issue
Whether the protections recognized in Gertz for defamation actions by private individuals apply to a slander action involving a non-media defendant and a purely private matter, and if so, what standard of liability and damages governs. The court also had to decide whether Maryland's common law conditional privilege remains effective and what is required to defeat it.
Rule
In Maryland, the rules of Gertz apply to libel and slander actions brought by private persons against media and non-media defendants alike. In cases of purely private defamation, liability may be imposed only upon proof, by a preponderance of the evidence, that the defendant at least acted negligently in failing to ascertain the falsity and defamatory character of the statement, and the plaintiff bears the burden of proving falsity. A private plaintiff may recover actual injury, but may not recover presumed or punitive damages unless liability is established under the New York Times standard of knowing falsity or reckless disregard for the truth. Maryland retains the common law conditional privilege, which is defeated not by mere negligence but by actual or express malice, including reckless disregard of truth.
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What fault standard governs Owen's claim if no privilege applies?