390 F.3d 973, 33
Media L. Rep. 1001 United States Court of
Appeals, Seventh Circuit. GLOBAL RELIEF
FOUNDATION, INCORPORATED, Plaintiff-Appellant, v. NEW YORK TIMES
COMPANY, Associated Press, American Broadcasting Companies, Incorporated, et
al., Defendants-Appellees. No. 03-1767. Argued Sept. 22, 2003. Decided Dec. 1, 2004. [*974] COUNSEL: Roger C. Simmons, Victor E. Cretella, III
(argued), Gordon & Simmons, Frederick, MD, Plaintiff-Appellant. Michael M. Conway, Foley & Lardner, David P. Sanders (argued),
Jenner & Block, Sarah R. Wolff, Sachnoff & Weaver, Chicago, IL, for
Defendants-Appellees. JUDGES: Before ROVNER, EVANS and WILLIAMS, Circuit
Judges. OPINION BY: ILANA DIAMOND ROVNER, Circuit Judge. In the months following the September 11, 2001 terrorist attacks,
journalists and news agencies published reports concerning the
governments efforts to cut off all sources of funding for terrorist
activities. The defendants here reported that Global Relief Foundation was one
of the targets of government investigations into sources of funding for
terrorism. Global Relief Foundation sued the defendants for defamation,
complaining that contributions to the organization evaporated following these
reports. Truth is an absolute bar to recovery for defamation and the district
court granted summary judgment in favor of the defendants after finding that
each of the reports was substantially true. We affirm. I. The plaintiff, Global Relief Foundation, Inc.
(GRF), was incorporated in Illinois as a charitable
organization. The defendants are all reporters or news organizations. They
include the New York Times Company (the Times), American
Broadcasting Companies, Inc. (ABC), Globe Newspaper Company
a/k/a The Boston Globe (the Globe), Associated Press, Inc.
(the AP), Daily News, L.P. (DNLP),
Hearst Communications, Inc. (Hearst), Antonio Mora
(Mora), Martha Mendoza (Mendoza),
Judith Miller (Miller), Kurt Eichenwald
(Eichenwald), William Louis (Zev) Chafets
(Chafets), Scott Winokur (Winokur) and
Christian Berthelsen (Berthelsen). [*975] In the days following September 11, 2001, the U.S. government
sought to identify the persons and organizations responsible for the attacks.
President George W. Bush announced that the United States would make no
distinction between those who committed these acts and those who
harbor them. By September 15, President Bush publicly identified
Osama bin Laden and the al Qaeda organization as the main suspects in the
attacks. A few days later, the President stated that the United States would
also focus on non-governmental organizations which served as fronts or as
funding mechanisms for terrorist organizations. On September 23, 2001,
President Bush implemented Executive Order 13224, declaring a national
emergency to deal with the threat of terrorist attacks and specifically
authorizing the government to freeze the assets of people and organizations
that supported or were associated with terrorism. Each of the defendants
subsequently reported on the governments investigations into
organizations linked to terrorism. Because these reports form the bases of the
libel claims, we will detail each report as it relates to GRF. A. The first report came the day after the Executive Order was
issued. ABC broadcast a report by Antonio Mora on its Good Morning
America program, detailing the governments actions in
freezing the U.S.-held assets of charities and non-governmental
organizations in the U.S. and abroad that funnel money to bin Laden and other
terrorists. Mora noted that the president had issued an executive
order to follow through on his promise to cut off funds to terrorists. He
stated, in relevant part: Now, a few of the charities accused of getting
funds to bin Laden have operations here in the U.S. Theyre listed
there. The Holy Land Foundation out of Richardson, Texas; The Islamic Relief
Agency out of Colombia, Missouri; Global Relief Foundation out of Bridgeview,
Illinois, and the Al Kifah Refugee Center in Brooklyn. Now, most deny the charges. Now, there are
dozens of others abroad that are listed as terrorist fronts, too. So, Charlie,
it is the first punch in this financial war against terrorism. Good Morning America, September 24, 2001, Transcript from Video
Monitoring Services of America, L.P. Later in the day, ABC published a
retraction on its website, reading: In an early report on President
Bushs Executive Order to freeze assets around the world, Good Morning
America said that certain U.S.-based charities (the Holy Land Foundation, the
Islamic Relief Agency, the Global Relief Foundation, and the Al Kifah Refugee
Center) had been accused of getting funds to Bin Laden.
This is not the case. We regret the error. B. The second report came in an article by Zev Chafets in the
September 28, 2001 edition of the New York Daily News. The focus of the article
was the Council on American-Islamic Relations (CAIR), a
group the author states was in bed with at least two philanthropic
groups suspected of being fronts for one of the Middle Easts most
lethally anti-American, anti-Jewish jihadists: Palestinian Hamas.
Chafets commented that although CAIR condemned the September 11 attacks, the
group did not acknowledge that the attacks were connected to Osama bin Laden
and that they were carried out in the name of an Islamic holy war: On the other hand, the CAIR is very specific
about how the public should respond to the attacks on America: Send [*976] money. It
recommends contributing to three organizationsthe Red Cross, the Holy
Land Foundation and the Global Relief Foundation
. The Global Relief
Foundation, located in Bridge View [sic], Ill., has been accused by Israel and
American security experts of funneling money and support to Hamas. Like the
Holy Land Foundation, it is currently under intense federal scrutiny. CAIR is untroubled by these investigations. In
fact, it regards these two organizations as victims of persecution.
Theres been a campaign to shut them down for
years, Hooper [FN1] says. You tell me if they are legal
American organizations. They are. For now. Bush is right to insist that not every Islamic
and Arab group supports holy warriors such as Hamas. But, as his staff ought to
know by now, some have, and still do. Beware the Wolves Among
Us, New York Daily News, September 28, 2001, p. 30, Zev Chafets. FN1. Hooper is Ibrahim
Hooper, a spokesman for CAIR, who denied any connection between CAIR and Hamas
earlier in the article. C. A few days later, the New York Times published the third report,
focused on the financial assault against Osama bin Laden.
During the prior week, the Bush administration had frozen the assets of
twenty-seven individuals and organizations linked to bin Laden. The article
reported that administration officials were preparing to freeze the assets of
approximately two dozen more charities and other organizations that
are suspected of providing money and support to his terrorist
operations. The article discussed individuals and organizations under
investigation for ties to bin Laden: The new list of suspect organizations, now
under review by a group of officials led by Treasury Department
representatives, includes charities in Saudi Arabia and Chicago, an Arab bank
and at least three hawalas, the informal money-lending
networks common in the Arab world. The list is expected to be announced within
two weeks. New York Times, A Nation Challenged: The Investigation;
U.S. Set to Widen Financial Assault, October 1, 2001, Judith Miller
and Kurt Eichenwald (hereafter Nation Challenged). The
article described the complex web of financing terrorists use for their
activities, including ties to relief organizations that provide legitimate
humanitarian services at the same time they support terrorism. After discussing
the Benevolence International Foundation as a group being investigated for
conducting both legitimate charitable work and terrorist support, the authors
turned to GRF: Administration officials are also recommending
that an American charity be included on the new listthe Global Relief
Foundation, which provides emergency relief, medical aid and engages in other
humanitarian efforts around the world. Global Relief, based in Bridgeview,
Ill., long a hub of militant Islamic activity, is also making an appeal on its
Web site for victims of the catastrophes at the World Trade Center and the
Pentagon, though it does not refer to them as terrorist attacks. Global Relief was originally included two
years ago on a list circulated by the Clinton administration of 30
organizations with suspected ties to terrorism. But in an interview last year
Stanley [*977] Cohen, a lawyer for Global Relief, called the
investigations of the foundation another of the governments
pathetic attempts to sully committed Islamic organizations. Id. These final three paragraphs of the lengthy article contain the
only mention of GRF. D. Martha Mendoza, an AP national reporter, authored the fourth
report on GRFs list, an October 5, 2001 piece titled,
Islamic Aid Groups Scrutinized. As in the Nation Challenged
article, Mendoza recounted the presidents move to freeze the assets
of twenty-seven people and organizations the prior week, and discussed future targets
of the governments terrorist financing investigations. She described
the governments investigation process of reviewing open source
information and gathering data from the CIA, the FBI, foreign governments and
the State Department to determine whether credible evidence existed to place a
particular organization on the list: Among U.S.-based relief organizations
receiving close federal scrutiny are Benevolence International Foundation based
in Worth, Ill.; Global Relief Foundation in Bridgeview, Ill.; and the Holy Land
Foundation for Relief and Development in Richardson, Texas, according to two
government sources involved in the investigation, who spoke on condition they
not be identified. Those organizations may or may not be on the governments
next list, the sources said. Washington Post, Islamic Aid Groups
Scrutinized, October 5, 2001, Martha Mendoza, AP National Writer.
After detailing denials of involvement with terrorism by both Holy Land
Foundation and Benevolence International, Mendoza turned to GRF: Global Relief Foundation, which received about
$4.9 million in contributions in 1999, is also working in the Afghanistan area,
said spokesman Ashraf Nubani, an attorney in Springfield, Va. Nubani said his organization is being unfairly
singled out because it is run by Muslims. But he said his group helps anyone in
need. GRF would have no problem in
providing humanitarian assistance to a suicide bombers
family, he said. They could become destitute after that act
and may well need food or medicine. But thats a footnote to what we
do, a worst case scenario. According to its promotional materials, Global
Relief Foundation is a humanitarian organization working to provide
care, support and relief to people in need throughout the world
through medical aid, family assistance and scholarships. Id. Mendoza described the Islamic view of charitable giving and then
detailed the problem of money earmarked for the needy finding its way to
terrorist organizations. She cited a recommendation by the president of the
National Committee for Responsive Philanthropy that potential donors should
conduct due diligence on organizations before giving, checking the local Better
Business Bureau or online services such as guidestar.org that reviews
charities. Mendoza commented, No reports of terrorist involvement
appear on guidestars reviews of Benevolence International, Global
Relief or the Holy Land Foundation. There were no other references to
GRF in the article. E. The fifth report was published in the Boston Globe on October 11,
2001. Staff reporter Mac Daniel explained that charity is an act of worship for
Muslims. He used GRF as an example of an organization that [*978] encourages
charitable giving through its website: Through these requests and the millions of
dollars it has generated, however, Global Relief Foundation, based in Illinois,
may also be a clandestine agent of terror, according to federal investigators.
The GRF, which claims to be one of the worlds largest Muslim
humanitarian organizations, has been under federal scrutiny for some time. Two
years ago, after the deadly bombings of two U.S. embassies in East Africa, the
groups name appeared on a federal list of 30 U.S. charities and
relief agencies with alleged ties to terrorism. The Bush administration last month froze the
assets of 27 organizations allegedly tied to Osama bin Laden and various
terrorist groups. Global Relief Foundation this week is expected to be added to
an updated Treasury list of U.S. charities and relief agencies with alleged
ties to terrorism, government officials said. The expected action follows
investigators matching of the group to a database of 14 million questionable
transactions in the United States and overseas. Adding to the groups mystery was the
fleeing of its co-founder and former director, Hazem Ragab, last year after FBI
agents tried to question him about his ties to a Texas mosque that helped raise
funds for GRF, according to the Chicago Tribune. Boston Globe, Charity
Probe: Muslim Relief Agency Eyed in Terror Link, October 11,
2001, Mac Daniel. Daniel then explained that although GRF claimed to fund
humanitarian efforts, it could not account for funds sent overseas, totaling
millions of dollars, and was vague in IRS filings regarding how the money was
spent. The article included the views of GRFs lawyer, Ashraf Nubani: For Nubani, GRF is the innocent target of a
nation enraged. He denied that the groups funds go to anything but
humanitarian aid and said the organization has only been in
casual contact with federal investigators. Nubani blamed the negative attention on GRF on
Zionist journalists and others with anti-Muslim agendas. But in interviews over the past week, Nubani
refused to name relief agencies that could vouch for GRFs work
overseas. He did not allow access to GRFs full financial records
despite numerous requests. Id. Daniel concluded the report by pointing out that a number of
legitimate international relief agencies were unfamiliar with GRF. F. The sixth and final report was published by Hearst Communications
on November 7, 2001. Scott Winokur and Christian Berthelsen reported on Bay
Area donations to Chicago-area Muslim charities that were being investigated
for possible terrorist money-laundering activities. San
Francisco Chronicle, 2 Muslim Charities Probed for Terror Link; Bay
Donors Chip in to Chicago Groups, November 7, 2001, Scott Winokur
& Christian Berthelsen. According to the article, contributors claimed they
thought the money was going to charitable uses and were surprised to learn some
of their donations may have gone to support terrorism: Global Relief and the Benevolence
International Foundation of Palos Hills, Ill., are two of the organizations the
U.S. Treasury department is scrutinizing. As of Friday, the department had
frozen the assets of 88 other individuals and organizations and is expected to
add to the list again today, The Chronicle has learned. [*979] Id. The authors described a man who gave $5200 to GRF after
being presented with a list of charities at his mosque. He believed the money
was used for the poor and said there had been no mention of the Taliban, bin
Laden or al Qaeda. In a section titled, Charities Say It
Isnt True, the authors discuss denials and evidence: Benevolence International and Global Relief
have denied roles in terrorist financing and condemned the Sept. 11 attacks on
the World Trade Center and the Pentagon. According to a report in the Los Angeles Times
on Sunday, however, the Treasury Department recently sent a confidential
memorandum to state charity officials asking for information about eight Muslim
groups in the United States, including Benevolence International and Global
Relief. A Treasury spokeswoman, Tasia Scolinas,
declined to comment on the memo or on charitable groups that may be named in
future seizures. However, a spokesman for the Texas attorney
general confirmed yesterday that his office did receive such a communication.
Rita Katz, a security consultant in Washington, D.C., who specializes in charitable
organizations suspected of serving as terrorist fronts, said donors to
Benevolence International and Global Relief get only part of the truth about
the ways their contributions are used. They wont tell you the
money is going to Hamas, Katz said, referring to the principal
Palestinian terrorist organization. They will tell you the money is
going to humanitarian activities, which isnt wrong; they do give
money to humanitarian organizations as well. But their fund-raising literature
says nothing about al Qaeda or jihad. Id. After describing an individual who stopped giving to Benevolence
International, the article reported that GRF raised nearly $5 million in 1999: It describes its mission as the provision of
economic, occupational and agricultural aid, with an emphasis on Bosnia and
Chechnya. A spokesman for Global Relief, Asim Ghafoor,
said the foundation has contacted both the Office of Foreign Asset Control and
the National Security Counsel for confirmation of reports that its assets
eventually could be seized. He said it hasnt gotten any response
from the government. They (reporters) told us there was
reason to believe we were being investigated, but the foundation
hadnt received even a knock on the door from
federal authorities, he said. Ashraf Nubani, a Springfield, Va., attorney for
Global Relief, attributed reports naming the organization to
anti-Muslim hysteria and the Israel-can-do-no-wrong
lobby. Id. There were no further mentions of GRF in the article. II. On November 15, 2001, GRF filed its diversity complaint in the
district court, alleging defamation in each of the reports detailed above.
Approximately one month later, on December 14, 2001, the Office of Foreign
Assets Control (OFAC) blocked the assets of GRF pending
investigation. See http://www.treas.gov/offices/enforcement/ofac/actions/20011214a.shtml.
GRF was notified of the blocking order in a letter from OFAC on that same day
stating: [*980] The United States Government has reason to believe that
Global Relief Foundation Inc. (GRFI) may be engaged in
activities that violate the International Emergency Economic Powers Act, 50
U.S.C. Sections 1701-06 (IEEPA). You are hereby notified
that pursuant to the authorities granted by IEEPA, the U.S. Department of the
Treasury is blocking all funds and accounts and business records in which GRFI
has any interest, pending further investigation and resolution of this matter. R. 114, Ex. A, at 20 n. 12. On October 18, 2002, the Treasury
Department designated GRF a Specially Designated Global
Terrorist. R. 114, Ex. D. The term specially designated
global terrorist or SGDT means any foreign person or person listed in the Annex
or designated pursuant to Executive Order 13224 of September 23,
2001. 31 C.F.R. Part 594.310 (emphasis in original). As we discussed
above, that Executive Order declared a national emergency to deal with the
threat of terrorist attacks and authorized the government to freeze the assets
of people and organizations that supported or were associated with terrorism.
The list of persons designated pursuant to Executive Order 13224 has grown
considerably since it was instituted. GRF now finds itself on the list in the
company of Osama bin Laden, al Qaeda and Hamas along with hundreds of other
individuals and organizations. GRF has challenged its designation in a separate
lawsuit. See Global Relief Foundation, Inc. v. ONeill, 315 F.3d 748 (7th
Cir.2002), cert. denied, 540 U.S. 1003, 124 S.Ct. 531, 157 L.Ed.2d 408 (2003). GRF sued all of the reporters and news agencies involved in publishing
the six reports we have detailed, contending that each report was false and
defamatory. The defendants moved for summary judgment, contending that their
statements regarding the investigation of GRF for terrorist ties are true. The
district court noted that GRF offered nothing other than blanket denials of
links to terrorism to refute the truth of the news reports. Under Illinois law,
the court found, the defendants could prevail on summary judgment by
demonstrating that the reports were substantially true, that is, that the gist
or sting of the allegedly defamatory material was true. The court then analyzed
each article to determine its gist or
sting. The court concluded that the gist of each article
was that the government was investigating GRF for links to terrorism and was
considering freezing the organizations assets. None of the reports
stated that GRF was a terrorist organization or even was linked to a terrorist
organization, only that the government was investigating GRF to determine if
such links existed. The defendants produced affidavits from government sources
confirming that the government was in fact investigating GRF for links to
terrorist groups and was in fact contemplating freezing the organizations
assets at the time the reports were made. The court thus found that the reports
were substantially true and entered summary judgment in favor of the
defendants. GRF appeals. On appeal, GRF argues that the court erred in finding the reports
were substantially true. GRF maintains that the defendants should be required
to demonstrate not only that they accurately reported the governments
suspicions but that GRF was actually guilty of the conduct for which the
government was investigating the group. GRF states that it has never provided
money or assistance to terrorists and thus the reports were false and
defamatory. GRF urges this court to find that the defenses of substantial
truth, innocent construction and neutral reportage were not applicable here.
GRF also complains that the district court should have consolidated this case
with GRFs parallel action against the government to better enable
[*981] GRF to complete
discovery on the issue of the truth of the governments accusations.
GRF contends the reports could not be innocently construed, and that GRF
adequately pled defamation per quod when it alleged that the defendants accused
the organization of giving aid to terrorists following September 11, 2001 and
that GRF lost most of its donations following publication of these articles and
reports. Our review is de novo. Jackson v.
Illinois Medi-Car, Inc., 300 F.3d 760, 764 (7th Cir.2002); Smith v. Severn, 129 F.3d 419, 425
(7th Cir.1997). Summary judgment is appropriate when there is no genuine issue
as to any material fact and the moving party is entitled to judgment as a
matter of law. Fed.R.Civ.P. 56(c). We view the record in the light most
favorable to the non-moving party and draw all reasonable inferences in that
partys favor. Smith, 129 F.3d at 425. The non-moving party must
make a showing sufficient to establish any essential element of its case for
which the non-movant will bear the burden on persuasion at trial. Smith, 129 F.3d at 425.
This means that GRF must show that there is more than mere metaphysical doubt
as to the material facts. Id. The applicable substantive law will dictate which
facts are material. McGinn v. Burlington Northern R.R. Co., 102 F.3d 295, 298
(7th Cir.1996). GRF has brought a state law defamation suit and we will
therefore apply the substantive law of the state in which this diversity case
was filed, in this case, Illinois. Allstate Ins. Co. v. Menards, Inc., 285 F.3d
630, 634 (7th Cir.2002) (a district court sitting in diversity must apply the
law of the state in which it sits). Illinois law therefore determines which
facts are material. A. To prove a claim of defamation, a plaintiff must show that a
defendant made a false statement concerning the plaintiff, that there was an unprivileged
publication of the defamatory statement to a third party by the defendant, and
that the plaintiff was damaged. Dubinsky v. United Airlines Master Executive
Council,
303 Ill.App.3d 317, 236 Ill.Dec. 855, 708 N.E.2d 441, 446-47 (1999); Cianci
v. Pettibone Corp., 298 Ill.App.3d 419, 232 Ill.Dec. 583, 698 N.E.2d 674, 678
(1998). GRF has raised a genuine issue of material fact related to damages by
showing that donations to the organization diminished after the publication of
these statements. A statement is considered defamatory if it tends to cause
such harm to the reputation of another that it lowers that person in the eyes
of the community or deters third persons from associating with that person. Bryson
v. News America Publications, Inc., 174 Ill.2d 77, 220 Ill.Dec. 195, 672 N.E.2d
1207, 1214 (1996); Dubinsky, 236 Ill.Dec. 855, 708 N.E.2d at 446;
Restatement (Second) of Torts, ¤ 559 (1977). Again, there is no real argument
about whether the statements at issue tended to harm the reputation of GRF in a
way that deterred third parties from dealing with the group. The statements
were issued in the immediate aftermath of the September 11, 2001 terrorist
attacks, and revealed (in even their most innocuous reading) that the
government was investigating GRF for possibly providing money to terrorists and
was considering freezing the groups assets. On summary judgment, we
must assume that allegations of a government investigation into funding of
terrorism tended to harm the reputation of GRF in a way that deterred third
parties from dealing with the group. The articles themselves, which quote
persons who had donated to GRF or other charities in the past, are replete with
evidence that donors had serious misgivings about the group on hearing of the
government probe. GRF has produced sufficient evidence of publication; the
statements appeared in prominent [*982] newspapers and on national television.
The issues on summary judgment, then, are whether the statements were false,
whether the defendants had some privilege to publish them, and whether the
defendants had any other defense that would entitle them to judgment as a
matter of law. The Supreme Court has held that when a private-figure plaintiff
seeks damages against a media defendant for speech on matters of public
concern, the plaintiff must bear the burden of showing that the speech at issue
is false before recovering damages. Philadelphia Newspapers, Inc. v. Hepps, 475 U.S. 767, 776-77, 106
S.Ct. 1558, 89 L.Ed.2d 783 (1986). See also Voyles v. Sandia Mortgage Corp., 196 Ill.2d 288, 256
Ill.Dec. 289, 751 N.E.2d 1126, 1133 (2001) (falsity is an element of the
plaintiffs defamation claim and plaintiff thus bears the burden of
proof on falsity). Some of the Illinois cases frame truth as an affirmative
defense that must be pled and proved by the defendant. See, e.g., Cianci, 232
Ill.Dec. 583, 698 N.E.2d at 678 (truth is a defense to a defamation action); American
Intl Hosp. v. Chicago Tribune Co., 136 Ill.App.3d 1019, 91 Ill.Dec.
479, 483 N.E.2d 965, 968 (1985) (same). We can reconcile this seeming conflict
with the more frequently described defense of substantial
truth discussed in the Illinois cases. See Cianci, 232 Ill.Dec. 583,
698 N.E.2d at 678-79; Chicago Tribune, 91 Ill.Dec. 479, 483 N.E.2d at 968; Tunney
v. American Broadcasting Co., 109 Ill.App.3d 769, 65 Ill.Dec. 294, 441 N.E.2d 86, 89
(1982); Sivulich v. Howard Publications, Inc., 126 Ill.App.3d 129, 81 Ill.Dec.
416, 466 N.E.2d 1218, 1220 (1984). A plaintiff may be able to demonstrate, for
example, that a statement is technically false in some way, meeting its burden
of establishing that element of its case. In Illinois, a defendant may then
defeat the claim by showing that the statement, although not technically true
in every respect, was substantially true. Tunney, 65 Ill.Dec. 294, 441
N.E.2d at 89 (to establish truth as a defense to a defamation action, it is not
necessary to establish the literal truth of inoffensive details). See Haynes v.
Alfred A. Knopf, Inc., 8 F.3d 1222, 1228 (7th Cir.1993) (the rule making
substantial truth a complete defense and the constitutional limits on
defamation suits coincide). To establish the defense of substantial truth, the
defendant need only show the truth of the gist or
sting of the defamatory material. Cianci, 232 Ill.Dec. 583,
698 N.E.2d at 678-79; Chicago Tribune, 91 Ill.Dec. 479, 483 N.E.2d at 968; Tunney, 65 Ill.Dec. 294, 441
N.E.2d at 89; Sivulich, 81 Ill.Dec. 416, 466 N.E.2d at 1220. See also Haynes, 8 F.3d at 1227 (if
the gist of a defamatory statement is substantially true, error in detail is
not actionable). Bearing in mind that the plaintiff, in this case GRF, bears
the burden of proof on the falsity of the statement, we turn to GRFs
evidence in support of this element of the claims. GRF seems to concede (at least for the purposes of summary
judgment) that the government was in fact investigating the organization for
financial ties to terrorism at the time the statements were published. GRF
maintains, however, that the gravamen of the reports was not that the
government was conducting an investigation but that GRF was actually involved
in funding terrorist operations. GRF denies that it has ever funded terrorist
operations and thus maintains that the reports were false. GRF characterizes
the fact of the investigation as an inoffensive detail
qualifying the true defamatory sting of the reports, that GRF was a front for
terrorists, including al Qaeda. In support of its claim that it does not and has never funded
terrorism, GRF submitted two affidavits, one by Mohamad Chehade, the executive
director of GRF, [*983] and the other by Roger Simmons, lead counsel for GRF in
this case and in GRFs case against the government. Both of the
affidavits were submitted first in GRFs case against the government.
According to Chehade, GRF spends in excess of 80% of its income on charitable
work and approximately 17% on administrative costs. Chehade states the group
has supported clinics, trade schools and hospitals in twenty-two countries. He
avers that GRF has delivered aid to those in need due to natural disasters such
as earthquakes and drought, as well as to war-distressed refugees in Chechnya,
Afghanistan, Bosnia and Kosovo. Chehade alleges that GRF delivered food,
medical supplies, tents and blankets to those in need throughout the world. He
also states that in the entire history of GRFs existence, the group
has never engaged in violence or supported violence, terrorism or military
operations, and has never supplied weapons or military items to anyone. He also
denied that GRF ever provided humanitarian aid to groups or organizations known
to be engaged in violence. Finally, he denied that GRF has ever offered to
provide humanitarian assistance to families of suicide bombers in advance of
suicide attacks and stated it has never been GRFs policy to support
suicide bombing directly or indirectly. Chehades affidavit does not
address the governments investigation into GRF except to acknowledge
the December 14, 2001 blocking order and the government searches of
GRFs offices and Chehades personal residence that same day. Simmons affidavit focused not on GRFs evidence
of the falsity of the statements but on the governments lack of proof
of the truth of the allegations. Simmons stated that he had been prevented from
taking discovery into the governments alleged investigation of GRF in
the governments separate investigation. He complained that many of
the documents the government did produce were redacted and many documents were
withheld entirely. He also maintained he was prevented from taking the
depositions of government agents who allegedly had personal knowledge of the
governments investigation into GRF. Simmons stated that with
discovery, he would be able to establish that the government had no evidence
that GRF funneled money to bin Laden, al Qaeda or Hamas, and that the
government had no evidence that ties GRF to any terrorists. Notably, he did not
aver that the government did not investigate GRF for ties to terrorism or that
GRF had no ties to terrorism, only that, with adequate discovery, he expected
to find that the government had no evidence that GRF is tied to terrorism.
Simmons affidavit does little to demonstrate the falsity of the
reports. For the purposes of summary judgment, Chehades affidavit
demonstrates a genuine issue on whether GRF has ever funded terrorist activity.
That genuine issue, however, may not be material or relevant if the true gist
or sting of the publications was not that GRF funded terrorism but that the
government was investigating GRF for ties to terrorism and was considering
blocking the groups assets. The defendants characterize the gist or sting of the articles from
this latter perspective. According to the defendants, the gist of each report
was that the government was investigating GRF for financial links to terrorism
and was contemplating freezing the groups assets. The defendants have
produced affidavits of two government agents, FBI Special Agent Brent Potter
and OFAC Director Richard Newcomb, demonstrating that the government was in
fact investigating GRF for links to terrorism at the time these reports were
issued. Potter stated that since 1997 he had been assigned to investigate GRF
for possible ties to terrorist organizations (including al Qaeda) and for
possible support of terrorist activities. Although the affidavit [*984] is heavily
redacted, Potter detailed some of the evidence the FBI collected tying GRF to
terrorism. Potter revealed, for example, that GRF was in contact with Wadih el
Hage, a man convicted in the 2001 trial related to the bombings of U.S.
embassies in Kenya and Tanzania. El Hage had served as personal secretary to
Osama bin Laden prior to moving to Kenya in 1994. While in Kenya, el Hage was
in contact with bin Laden and his military commander, Muhammad Atef, and also
was in contact with GRFs offices in Belgium and in Bridgeview,
Illinois. According to Potter, GRF promotes the Islamic jihad movement against
established governments in the Middle East and Asia. The FBI also came into
possession of a copy of GRFs Arabic-language newsletter titled,
Global News that encouraged giving to GRF so that the money
could be spent for Gods cause (the Jihad), and
stated that the funds are disbursed for equipping the raiders, for
the purchase of ammunition and food. According to the Global News,
the most important disbursement of Zakat (the obligation of Muslims to donate
2.5% of their personal wealth to God) is on the Jihad for
Gods cause. The FBI also recovered from GRFs dumpster
photographs of sophisticated wireless communications equipment, including radio
transceivers, HAM radio base sets, long range radio antennas, batteries, power
packs, binoculars, ropes, saddles and tools. The model of radio portrayed in
the photos was found in possession of an al Qaeda suspect under investigation
in the embassy bombings, and was also used in a terrorist group assassination
attempt on Egyptian President Hosnia Mubarak in 1995. Newcombs affidavit explains generally OFACs responsibility
in administering U.S. economic sanctions programs and IEEPA Executive Orders.
As this duty relates to GRF, Newcomb explained that OFAC issued the December
14, 2001 blocking order pending its investigation of GRF: In making its determination, OFAC evaluated
the various criteria set forth in E.O. 13224, with a primary focus on
subsections 1(c) and 1(d)(I). Subsection (c) permits blocking where persons are
determined to be owned or controlled by, or to act for or on behalf
of persons within the scope of the order. Subsection 1(d)(i) is a
basis for blocking where persons are determined to assist in,
sponsor, or provide financial, material, or technological support for, or
financial or other services to or in support of the terrorists and
terrorist activity falling within the scope of the order. OFAC considered both
classified and unclassified information in reaching its decision to issue the
blocking order. R. 114, Ex. B, ¶ 34. According to Newcomb, since
at least September 2001, GRF has been the subject of investigations
by Treasury and the FBI relating to links to international terrorist
organizations and their activities. Based on meetings I have attended and
briefings I have received from my staff, it is my understanding that
GRFs links to terrorist groups generally have been known within the
intelligence and law enforcement communities dating back many years.
R. 114, Ex. B, Annex, at ¶ 2. In addition to these affidavits, the defendants also point to the
December 14, 2001 blocking order that froze GRFs assets pending
completion of the investigation and the subsequent Treasury Department
designation of GRF as a Specially Designated Global Terrorist
(SDGT). The defendants thus argue that they have proved the
truth of their reports that the government was investigating GRF for links to
terrorism and moreover have truthfully reported on the governments
subsequent action in freezing those assets and designating [*985] GRF as a
terrorist organization. The defendants argue that requiring the media to prove
the actual and ultimate guilt of the subject of a government investigation
would dramatically and improperly chill the ability of the press to report on
the actions of government and would deny the public information about matters
of vital public concern. We turn to the articles to determine whether GRF has
shown the falsity of the reports, and to assess the gist or sting of each
article. 1. As with all of the other reports, Antonio Moras
statements about GRF were preceded by a report on the September 24, 2001
Executive Order. Mora accurately reported that the Order was expected to focus
on charities and non-governmental organizations in the U.S. and abroad. Mora
added that GRF was one of a few of the charities accused of getting
funds to bin Laden. He also repeated the accused groups
denials. At the time he made this statement, GRF had not been accused
of getting funds to bin Laden. The group was being investigated for
its financial ties to terrorists but had not yet been officially or publicly
designated as a terror financier by the government. In that sense,
Moras report was not technically true. The gist or sting of the report,
however, was substantially true. [FN2] That is, the government was
investigating GRF for its ties to terrorism and anticipated blocking
GRFs assets and adding the organization to the list of SDGTs. As it
turned out, the only inaccuracy of Moras report was in the timing of
the governments official and public actions against GRF. GRF was not
named in the September 24, 2001 blocking order; it was named on December 14,
2001, and then was designated a SDGT in October 2002. Moras report
was prescient, not inaccurate. FN2. Illinois law treats libel and slander
alike and thus it is irrelevant that Moras remarks were spoken and
the statements of the other defendants appeared in print. Bryson, 220 Ill.Dec. 195,
672 N.E.2d at 1215. 2. In the September 28, 2001, New York Daily News article, Chafets
focused primarily on CAIR. He criticized CAIR for being associated with two
philanthropic groups suspected of being fronts for Hamas. Subsequently, he
described CAIRs bid for donations to the Red Cross, GRF and the Holy
Land Foundation, stating that GRF has been accused by Israel and
American security experts of funneling money and support to Hamas,
and that the group is currently under intense federal scrutiny.
GRF, of course, was under intense federal scrutiny at the time. Although GRF
had not been accused publicly of funneling money to Hamas, the groups
ties to terrorism were known for many years in the intelligence and law
enforcement communities according to the director of OFAC. The question again
was timing. In short order, the accusations were made public and the report
proved to be substantially true, as is sufficient under Illinois law. 3. The New York Times similarly reported on the Executive Order and
the organizations listed in it. The article then turned to groups not yet named
but anticipated to be included in future government action. GRF is listed as a
group that administration officials are also recommending
be included on the new list. The article reveals that GRF appeared two years
earlier on a Clinton administration list of thirty organizations with suspected
ties to terrorism. GRF does not dispute the reference to the Clinton-era list,
but instead complains [*986] about the recommending
language, arguing that it is a mere repetition of a government slur against
GRF. But again, the report is true. Administration officials were investigating
GRF for ties to terrorism and had been doing so since 1997. Government officials
did recommend that GRF be included on a future list and it was in fact
subsequently included on the list of blocked organizations and SDGTs. 4. The AP report recounted the Executive Order and the organizations
included in the first blocking order. The article identified GRF as one of
several U.S.-based relief organizations receiving close federal
scrutiny that may or may not be on the
governments next list. The article also repeated a
statement by GRFs lawyer, who remarked that GRF would have
no problem in providing humanitarian assistance to a suicide bombers
family. This is the worst of what the AP had to say about GRF. We
need not spend much time analyzing this article because as should already be
clear, this report was literally and absolutely true. GRF was under close
federal scrutiny and its inclusion on the list of blocked organization was
under contemplation. Although GRF denies that it would aid the families of
suicide bombers, it does not dispute that its own lawyer actually said this to
the press. That dispute is thus immaterial to the defamation claim. 5. In the Boston Globe article, author Mac Daniel reported that GRF
may be a clandestine agent of terror, according to federal
investigators. Daniel noted that GRF appeared on a list of thirty
U.S. charities with alleged ties to terrorism two years earlier, following the
embassy bombings. The October 11, 2001 article asserted that GRF was expected
to be added to the Treasury list of U.S. charities with alleged ties to
terrorism in the following week. Daniel noted that GRF would not produce
documents showing how its money was spent once it was sent overseas, and that
legitimate international relief agencies were unfamiliar with GRF. This article
was substantially true. The government suspected GRF of funding terrorist
activities, considered blocking the groups assets and later blocked
those assets and named GRF a SDGT. 6. The Hearst article focused on Bay Area donors to Muslim charities
that were being investigated for financial links to terrorism. The authors
described GRF as an organization the Treasury Department was scrutinizing, and
repeated GRFs denials of any involvement in terrorism. The report
also quoted a security consultant, Rita Katz, who opined that donors to GRF get
only part of the truth about the ways the contributions are used. Katz stated
that although some of the money goes to humanitarian activities, some goes to
Hamas or al Qaeda. Katzs comments were consistent with the
governments actions against GRF and added nothing to the
articles true recounting of the governments investigation. B. Ultimately, all of the reports were either true or substantially
true recitations of the governments suspicions about and actions
against GRF. When determining the gist or
sting of allegedly defamatory material, a trial court must
look at the highlight of the article, the pertinent angle of it, and not to
items of secondary importance which are inoffensive details, immaterial to the
truth of the defamatory statement. [*987] Parker v.
House OLite Corp., 324 Ill.App.3d 1014, 258 Ill.Dec. 304, 756 N.E.2d 286,
296 (2001) (citing Gist v. Macon County Sheriffs Dept., 284 Ill.App.3d 367,
219 Ill.Dec. 701, 671 N.E.2d 1154 (1996)) (internal quote marks omitted). Any
inaccuracies which do no incremental damage to the plaintiffs
reputation do not injure the only interest that the law of defamation protects.
Haynes, 8 F.3d at 1228; Gist, 219 Ill.Dec. 701, 671 N.E.2d at 1157. We
will thus ignore inaccuracies that do no more harm to GRF than do the true
statements in the articles. The gist or sting of each article was that the
President had issued a blocking order on September 24, 2001 against a number of
organizations suspected of providing financial assistance to terrorist groups,
and the government was now contemplating adding other charities and
non-governmental organizations to the list of blocked entities. Each article
named GRF as one of the charities being investigated by the government, and a
few noted that GRF had appeared on a list of organizations with suspected ties
to terrorism years earlier. Many of the articles included GRFs
denials and none of the articles concluded that GRF was actually guilty of the
conduct for which it was being investigated. See Cartwright v. Garrison, 113 Ill.App.3d 536,
69 Ill.Dec. 229, 447 N.E.2d 446, 449-50 (1983) (statement that possible legal
ramifications resulting from States Attorneys investigation
could include criminal penalties could not reasonably be interpreted as
accusing plaintiff of a crime and thus was not actionable). The government in
fact added GRF to the list of blocked entities within a few months of these
publications, and later classified GRF as a SDGT or Specially Designated Global
Terrorist. GRF continues to fight that designation in a separate case but that
dispute does not change the fact that the government in fact took these actions
as reported. The only inaccuracy in the articles is the timing of the
governments official actions against GRF and this inaccuracy does no
more harm to GRF than the true statements in the articles. Recall, too, that
GRF had already appeared two years earlier on the Clinton-era list of thirty
organizations with suspected ties to terrorism. Moreover, for a number of the
reports, GRF has no evidence demonstrating the falsity of the report and thus
fails to make out an essential element of its claim. For the remainder of the
cases, where something in the report was not technically true (such as the
timing of the governments accusations and actions), the defendants
are entitled to judgment on the defense of substantial truth. See Sivulich, 81 Ill.Dec. 416, 466
N.E.2d at 1220 (article was substantially true even though it contained
immaterial error as to the date the complaint was filed). The defense of
substantial truth is normally a jury question. Parker, 258 Ill.Dec. 304,
756 N.E.2d at 296; Cianci, 232 Ill.Dec. 583, 698 N.E.2d at 679; Gist,
219 Ill.Dec. 701, 671 N.E.2d at 1157. But first, courts must ask whether a
reasonable jury could find substantial truth has not been established. If the
answer is no, the question is one of law. Parker, 258 Ill.Dec. 304,
756 N.E.2d at 296; Cianci, 232 Ill.Dec. 583, 698 N.E.2d at 679; Gist, 219 Ill.Dec. 701,
671 N.E.2d at 1157. This is such a case. No reasonable jury could find that
substantial truth has not been established. The court was thus correct to enter
judgment in favor of the defendants. C. We reject GRFs argument that these media defendants must
be able to prove the truth of the governments charges before
reporting on the investigation itself. We find unavailing GRFs
attempts to distinguish three cases which are directly on point. See Gist, 284 Ill.App.3d 367,
219 Ill.Dec. 701, 671 N.E.2d 1154; Sivulich, 126 Ill.App.3d 129,
81 Ill.Dec. 416, 466 N.E.2d 1218; [*988] Vachet v. Central Newspapers, Inc., 816 F.2d 313 (7th
Cir.1987). On August 1, 1994, Gist was charged with burglary to a motor vehicle
and a warrant was issued for his arrest on that same day. The warrant was not
served on Gist, and after he spoke to someone at the sheriffs
department on October 26, 1994, a no-charge was issued. Gist, 219 Ill.Dec. 701,
671 N.E.2d at 1156. Nonetheless, the sheriffs department subsequently
distributed a most wanted fugitives flyer that contained
Gists picture, his name, and the charge for which he was wanted,
along with similar information for other fugitives. The flyer stated that these
fugitives were wanted as of October 6, 1994 and warned that they should be
considered armed and dangerous. Gist sued the sheriffs department for
defamation, and the department defended the claim by citing the defense of
substantial truth. As in the instant case, the court looked to the gist or
sting of the allegedly defamatory material. The court found: Here, the essence of the matter is that plaintiff was wanted on an
arrest warrant as of October 6, 1994, for burglary to a motor vehicle, which is
entirely true. That plaintiff might possibly be armed or
should be considered dangerous or was a most wanted
fugitiveto the extent such statements can even be considered as
applying to plaintiff or asserting facts about himare all secondary
details, immaterial to the truth of the Crime Stoppers flyer. Viewing the three
allegedly defamatory statements under the totality of the circumstances, we
conclude that the trial courts decision was also proper in light of
the substantial truth of the flyer. Gist, 219 Ill.Dec. 701, 671 N.E.2d at 1157-58 (emphasis in original).
The court did not require that the sheriffs department prove the
truth of the underlying burglary charge but only the truth of the statement
that Gist was wanted for burglary as of October 6, 1994, even though the
charges had apparently been dropped by the time the flyer was distributed. Similarly, in Sivulich, a newspaper printed a story about a
physical confrontation between Sivulich, a high school football coach, and
NeCastro, the grandfather of one of the players. NeCastro filed a civil suit
against the coach, and on the next day, the story appeared stating that
Sivulich was involved in an altercation with the grandfather of one of the
players, that the altercation resulted in the loss of a tooth and more than
$500 worth of personal damages to the 70-year-old man. The
article continued: Charges of aggravated battery have been filed against Sivulich.
Final papers were signed Wednesday, served in court Thursday and are expected
to be handed to Sivulich today. Sivulich will have until Nov. 9 to respond to
the charges. Sivulich, 81 Ill.Dec. 416, 466 N.E.2d at 1219-20. Sivulich sued
the newspaper, alleging that the statement charges of aggravated
battery have been filed against Sivulich was libelous per se.
Sivulich argued that the word charged could only be
interpreted as a criminal charge when in fact criminal charges were never
filed. The court found that, read in the context of the statement about
personal damages and a $500 loss, it was clear that the charges were of a civil
nature. The court thus found that with the exception of an immaterial error as
to the date the complaint was filed, the article is substantially
true. Sivulich, 81 Ill.Dec. 416, 466 N.E.2d at 1220. The civil suit was
ultimately settled. Again, the court did not require the newspaper to prove
that Sivulich actually was guilty of aggravated battery or that he caused
personal damages of $500. It was enough that the newspaper was substantially
truthful in its report that [*989] civil charges had been filed against
Sivulich. Finally, in Vachet, a newspaper published a story about the arrest
of the plaintiff, Michael Vachet, on charges of harboring a fugitive and
driving on a suspended license. An elderly woman had been raped and police were
searching for their primary suspect, Michael Saucerman. Vachet had called the
police to tell them he knew where to find Saucerman. Saucerman had been
traveling with Vachet, and after a purported attempt by Vachet to arrange
Saucermans surrender failed, the police decided to charge Vachet with
harboring a fugitive. A police lieutenant prepared an affidavit to obtain a
warrant for Vachets arrest but the prosecutors office
failed to complete the paperwork and the warrant had not yet been issued when
Vachet was arrested. A local newspaper reported that Vachet was arrested on
charges of harboring a fugitive and driving on a suspended license. The article
explained that police arrested Vachet on a warrant alleging that Vachet knew
the whereabouts of Saucerman, who was wanted on a charge of attempted murder
and other charges. The next day, when Saucerman was arrested, the newspaper
repeated that Vachet had been arrested and charged with harboring Saucerman.
Vachet sued the paper for falsely reporting that he had been arrested and
charged with a criminal offense involving moral turpitude. Vachet, 816 F.2d at 314-15.
He specifically complained that the articles caused him to appear to be
associated with the alleged rapist of an elderly woman. The paper defended by asserting the substantial truth of the
articles because Vachet had in fact been arrested for harboring Saucerman, a
fugitive. Vachet pointed out that the warrant had never actually issued.
Applying Illinois law as we must in this case as well, we found that literal
truth was not needed but that the newspaper could successfully defend the suit
by showing the truth of the gist or sting of the story. Vachet, 816 F.2d at 316. The
gist or sting to which Vachet objected was his association with a suspected
rapist of an elderly woman. We found that the gist of the story was true:
Vachet had been arrested for harboring a man suspected of raping an elderly
woman. We found the particulars of the arrest, whether by warrant or as
authorized by state statute, were inoffensive details. Id. We did not require
the paper to prove that Vachet had in fact harbored Saucerman. GRFs main response to these cases is that each involved
public investigations and proceedings, and that the defendants in the instant
case were reporting on secret investigations. But there is no difference
between public and private investigations in the applicability of the defense
of substantial truth: A person does not have a legally protected
right to a reputation based on the concealment of the truth. This is implicit
in the rule that truthnot just known truth (see Restatement (Second)
of Torts ¤ 581A, comment h (1977); Prosser and Keeton on the Law of Torts, ¤
116, at pp. 840-41 (5th ed.1984))is a complete defense to defamation.
And the burden of proving falsity rests on the plaintiff. Haynes, 8 F.3d at 1228. The fact of the investigation was true
whether or not it was publicly known. That is all that the defendants need to
show for the defense of substantial truth. This they have done. D. GRF also complains that it was prevented from completing discovery
into the governments investigation and evidence against GRF. GRF
wished to depose the authors of the affidavits on which the defendants rely for
their defense of substantial [*990] truth. GRF complains that the
affidavits do not establish that GRF actually funneled money to terrorists and
that only through depositions could GRF show that the government had no
evidence capable of supporting the imputation of guilt. GRFs argument
misses the mark again, however, because the sting of the articles was not that
GRF was actually funneling money to terrorists but that the government was
investigating the group for links to terrorism and contemplating freezing
GRFs assets. The sting was that such an investigation was being
conducted, not that GRF was guilty of the conduct for which it was being
investigated. The particulars of the governments investigation are
thus not relevant to this defamation case and the district court was within its
discretion to rule without allowing this discovery. GRF does not seriously
dispute that the government was in fact conducting the investigation. The
resulting blocking order and designation as a SDGT did not materialize out of
thin air, after all, but were the result of a government probe. Whether the
government was justified in its probe is irrelevant to the defamation claims
when these media defendants accurately reported on the investigation itself. III. We have carefully considered all of GRFs other arguments
and find no merit in them. The district court was correct to enter summary
judgment in favor of the defendants because their reports about GRF were
substantially true. GRF was in fact the subject of a federal investigation for links
to terrorism and the government ultimately concluded that the groups
activities earned it a spot on the list of Specially Designated Global
Terrorists. Whether the government was justified in its investigation or
correct in its ultimate conclusion is irrelevant to a suit against news media
defendants for accurately reporting on the governments probe. |