Information Control Corporation v. Genesis One Computer Corporation, Etc.

For two years Genesis One Computer Corporation (Genesis) marketed certain electronics products manufactured by Information Control Corporation (ICC). A dispute arose. ICC sued Genesis for breach of contract and misrepresentation, and Genesis countersued to collect allegedly unpaid commissions. An industry news journal requested a statement from Genesis’ counsel regarding the suits. Counsel replied:

Two weeks later, Genesis’ public relations firm issued a press release containing the same statement with minor modifications. The release again characterized ICC’s breach of contract action as a “device” to avoid payment of commissions due Genesis.

ICC then brought this suit for defamation, based on the statement by Genesis’ counsel and the press release. The district court ruled the statements non-defamatory and privileged as a matter of law, and granted Genesis’ motion for summary judgment.

Under California law, recovery for defamation may be had only for false statements of fact. Statements of opinion are not actionable. Gregory v. McDonnell Douglas Corp., 17 Cal.3d 596, 600 , 131 Cal.Rptr. 641, 643 , 552 P.2d 425, 427 (1976). The determination of whether an allegedly defamatory…