Libel Suit Against S-R Dismissed

An appeals court dismissed a lawsuit accusing The Spokesman-Review and one of its reporters of libel.

The ruling by the state Court of Appeals in Spokane upheld a 1994 decision by Superior Court Judge Marcus Kelly to throw out a lawsuit brought by John Clardy, a developer for the controversial Mission Springs apartment project.

Clardy questioned two 1993 stories written by staff writer Bill Morlin about the 720-unit project and his application for a federal loan guarantee.

One story reported Clardy, then 60, was convicted of two federal income tax felonies in California several years ago.

Another story said paperwork for the loan guarantee listed what appeared to be a “fictitious” Deer Park address. The newspaper reported a day later that the address was not fictitious, but Clardy’s rural home.

Clardy filed the libel suit in January 1994. He did not specify financial damages and represented himself in the case. He claimed the stories damaged his reputation.

Kelly, however, ruled Clardy made himself a public figure in his role as developer of the high-profile project. It’s more difficult for public figures to prove libel than private citizens, and public figures must prove news reports are deliberately incorrect and written with actual malice.

Newspaper attorney Duane Swinton argued neither story libeled Clardy. It is undisputed that Clardy was convicted of the tax charges, and Morlin took reasonable care to confirm whether the address on the federal documents were fictitious, he said.

The Court of Appeals decision, written by Judge Dennis Sweeney, said “there is no showing of malice by Mr. Morlin.”

There also is no evidence of damage to Clardy as a result of the articles, Sweeney wrote.

If completed, the Mission Springs project in southwest Spokane would be one of the county’s largest apartment complexes. The 300-member Thorpe-Westwood neighborhood association has tried for nearly three years to delay construction of the $45 million complex.

City officials last fall issued permits that allow Clardy to start work on the project. More permits will be needed as construction continues.

, DataTimes