First published: May 2022
Court Dismisses Treasurer’s Defamation Claim Against Board President
While the statements made during a board meeting may be protected by the common-interest privilege to allow for the free flow of information between attendees, evidence of malice or reliance on knowingly false statements or any statements motivated by ill will or spite will not be protected and may expose the individual making such statements to liability. However, because members of co-op and condominium boards are subject to qualified privilege, it is difficult for them to be found liable for defamation. By the same token, it is difficult for them to obtain favorable results in connection with their own defamation claims. See Pusch v. Pullman, 2003 NY Slip Op 51759(U) (N.Y. Sup. Ct. N.Y. Cnty. Nov. 5, 2003) (an action related to the famous Pullman case re board discretion in determining objectionable conduct, 40 W. 67th St. v. Pullman, 100 N.Y.2d 147 (2003)).
Harpaz v. Dunn
WHAT HAPPENED The plaintiff, the condominium board treasurer, commenced an action against the defendant, the board president, for allegedly making defamatory statements during a board meeting and calling for a vote to rebuke the plaintiff based on reports that she was harassing condominium employees. The plaintiff later acknowledged that she was instructed to stop all communications with condominium employees following complaints made to the condominium’s managing agent. The vote passed and was published in the board minutes. The plaintiff was then removed as the board treasurer, and the action followed.
While the plaintiff argued that the defendant should have known that the employee’s complaints were false, their statements were motivated by ill will, or the defendant disregarded the truth, she provided no evidence in support. The court held that the statements made during the subject board meeting are “cloaked in common-interest privilege” and any action by the plaintiff could not be maintained due to the defendant’s qualified privilege. The common interest qualified privilege is applied so long as the privilege is not abused to allow for the free flow of information between persons sharing a common interest.
