ELSENBERG

Ira Eisenberg was hired by respondent Alameda

Newspapers, Inc., (the Newspaper) as an investigative reporter, to write expose-style articles for the Tri-Valley Herald (the Herald), a local Alameda County newspaper that served the Pleasanton-Livermore Valley area. In May 1994, the Herald published two articles written by Eisenberg, containing allegations of “corruption,” “favoritism and influence-peddling” involving Ted Fairfield, an individual hired by local developers to obtain approval from the Pleasanton city government for a controversial luxury housing development. After Fairfield made a demand for a correction in accordance with Civil Code section 48a, the Newspaper published a prominent retraction in the Herald, apologizing for its previous publication of “inaccurate and misleading information” concerning Fairfield, and stating that “[t]here is no evidence” he “was involved in improper, corrupt or illegal activities” relating to the development. Shortly thereafter, the Newspaper terminated Eisenberg’ s employment.

Eisenberg filed suit against the Newspaper, its managing editor (respondent Tim Graham) and editor (respondent Tim Hunt), alleging defamation, false…