From Community Newsletter To Defamation Lawsuit

Many associations send out newsletters. Normally, these newsletters are harmless. One association in Tennessee, however, has found themselves in the middle of a $20 Million defamation lawsuit.

The lawsuit stemmed from an article, which raised concerns about patients in the community getting prescriptions at a nearby clinic and then filling them at the nearest pharmacy. The newsletter article alleged that this practice had led to several armed robberies and drug deals in the parking lot of the pharmacy.

Shortly thereafter, the local newspaper ran a similar story. The clinic’s doctors filed a $20 Million lawsuit against the local paper and the homeowner’s association for libel, slander and interference with business practices.

At this time, the case is still pending.

Generally, defamation is defined as the act of making untrue statements about another which damages his/her reputation. If the defamatory statement is printed or broadcast over the media it is libel and, if only oral, it is slander.

How can your association avoid this type of situation?

It is best not to name individuals specifically in the newsletter, especially when it comes to delinquencies. Another rule of thumb should be to only print verifiable facts. If you have to talk about an issue in Executive Session, you shouldn’t write about it in your newsletter!

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