Ralston v. Garabedian

676 F.Supp.3d 325

Matthew RALSTON v. Mitchell GARABEDIAN, Esq., et al.

CIVIL ACTION NO. 19-1539

United States District Court, E.D. Pennsylvania

Filed December 23, 2021

James E. Beasley, Jr., Lane R. Jubb, Jr., Louis Tumolo, The Beasley Firm, LLC, Philadelphia, PA, for Matthew Ralston.

Candidus K. Dougherty, Jeffrey B. McCarron, Swartz Campbell LLC, Philadelphia, PA, for Mitchell Garabedian, Mitchell Garabedian Law Office.

Kurtis N. Poulos, Greenfield, WI, Pro Se.

MEMORANDUM

KEARNEY, District Judge

A lawyer representing a former student may notify a school of a former teacher allegedly sexually abusing his client twenty-plus years earlier. The lawyer may privately do so with no court or media involvement when the former student does not want public review of the sexual abuse claim. But assertions of student sexual abuse may harm a teacher's reputation. And valid policy reasons protecting lawyers' advocacy fade when the lawyer does not seriously contemplate litigation. We today address whether a lawyer's two letters to a private school headmaster in 2018 containing allegations of sexual abuse against a former teacher from 1993 to 1995 and demanding a million dollars in compensation even though his claims are barred by the statute of limitations may be defamatory. The lawyer and his client seek summary judgment. They argue, among other things, the private letters are privileged and the former teacher accused in the letter cannot show the lawyer possessed actual malice necessary to proceed on the defamation claim. We balance the right to fully report sexual abuse with the teacher's rights to protect his reputation from false statements. The lawyer and his client have not shown they are entitled to summary judgment dismissing the former teacher's defamation claim. They have not shown us a basis for a privilege or an actual malice standard applying to the statements made about the former teacher in the private letters. We deny the lawyer's and his client's motions for summary judgment.

I. Facts adduced in discovery.¹

Matthew Ralston taught math at the Hill School from 1992 to 2009.² He became Academic Dean in 1995.³ As Academic Dean, he served as the "[p]oint person between school, students[,] and parents for all academic concerns."⁴ He became the Dean of Faculty in 2006.⁵ He oversaw "faculty hiring, retention, and overall education," including "daily operation of the school."⁶ He also coached cross country, track, and lacrosse; served as a "dorm parent" and won a "Dorm Parenting Prize" in 2003; chaired the mathematics department; and served as director of financial aid, among other positions.⁷

Mr. Ralston left the Hill School in 2009 to become headmaster of a Michigan school.⁸ He returned to the Hill School in 2016 as a "Capital Giving Officer."⁹ Mr. Ralston's role after 2016 required him to meet "with alumni to increase engagement and solicit support for the School."¹⁰ The Hill School hired Mr. Ralston as a capital giving officer because he "had a lot of experience with the school, [and] he knew a range of alumni given his years of service as a faculty member."¹¹ Mr. Ralston claims he developed "thousands of healthy relationships in schools" during his career.¹²

The Hill School sends letters to alumni regarding sexual abuse.

Hill School Headmaster Zachary Lehman sent two letters to Hill School alumni regarding sexual abuse in boarding schools.¹³ He sent the first letter in April 2016.¹⁴ Headmaster Lehman acknowledged allegations of sexual abuse against employees of boarding schools nationally.¹⁵ He assured alumni and parents the Hill School does not tolerate sexual abuse and outlined the Hill School's "rigorous protocol" for ensuring sexual abuse does not occur at the Hill School.¹⁶

Headmaster Lehman sent his second letter in November 2017.¹⁷ Unlike his April 2016 letter which addressed sexual abuse nationally, the November 2017 letter addressed abuse at the Hill School. Headmaster Lehman explained the Hill School reviewed "historical allegations of abuse at The Hill and the School's responses to those allegations."¹⁸ He advised alumni the Hill School hired Attorneys Leslie Gomez and Gina Smith—"nationally recognized" experts in the field—to review the allegations of past abuse at the Hill School and the Hill School's responses to the allegations.¹⁹ Their review revealed "several troubling incidents in The Hill School's history."²⁰ Headmaster Lehman apologized for the past misconduct, assured the Hill School community of its procedures preventing abuse, and invited the community to contact Headmaster Lehman, Attorney Smith, or Attorney Gomez with "observations and feedback."²¹

Mr. Poulos retains Attorney Garabedian but they agree to not sue for the sexual abuse.

Hill School alumnus Kurtis Poulos contacted Attorney Mitchell Garabedian in December 2017 after he received Headmaster Lehman's letters.²² Mr. Poulos informed Attorney Garabedian Mr. Ralston sexually abused him while he attended the Hill School from 1993 to 1995.²³ Mr. Poulos provided information about his academic history, family history, the details of the sexual abuse, details of bullying by Mr. Ralston, and the description of Mr. Ralston.²⁴

Mr. Poulos and Attorney Garabedian signed a contingent fee agreement dated December 18, 2017.²⁵ They agreed the "claim, controversy, and other matters with reference to which the services are to be performed are: Injuries caused by Matthew Ralston . . . ; and The Hill School."²⁶ They confirmed: "Client and Lawyer agree that a complaint or lawsuit will not be filed in this matter because the Statute of Limitations has run or expired."²⁷ Mr. Poulos swears "at the time" he signed the agreement, he understood Attorney Garabedian would not "file a lawsuit . . . because the statute of limitations had run or expired."²⁸ He swears he retained Attorney Garabedian because he wanted to "be prepared" to file a lawsuit if Pennsylvania's statute of limitations for his claims changed.²⁹ He believed other states had changed their statutes of limitations for similar claims and Pennsylvania might change its statute of limitations as well.³⁰ Two of Attorney Garabedian's associates who assisted Attorney Garabedian on Mr. Poulos's matter—Nathan Gaul and Daniel Mahoney—testified they understood the statute of limitations for Mr. Poulos's potential claims against Mr. Ralston or the Hill School had expired.³¹ Attorney Garabedian also swore he knew the statute of limitations expired.³²

Attorney Garabedian sends April 2018 letter accusing Mr. Ralston of sexual abuse.

Attorney Garabedian sent a letter to Headmaster Lehman on April 11, 2018.³³ Attorney Garabedian informed the Hill School his firm represented Mr. Poulos.³⁴ He wrote, "[t]his letter is an attempt to settle and compromise claims involving Matthew B. Ralston."³⁵ He accused Mr. Ralston of "repeatedly sexually molest[ing]" Mr. Poulos while he attended the Hill School from 1993 to 1995, when Mr. Poulos was fifteen to seventeen years old.³⁶ Attorney Garabedian alleged numerous injuries Mr. Poulos suffered from the alleged abuse.³⁷ He wrote: "Mr. Poulos's demand for settlement is $1,000,000.00."³⁸

The Hill School's attorney, Thomas Rees, wrote to Attorney Garabedian on April 24, 2018.³⁹ Attorney Rees notified Attorney Garabedian his law firm represented the Hill School and asked Attorney Garabedian to communicate with him regarding the matter.⁴⁰ There is no record of Attorney Garabedian then responding to Attorney Rees.⁴¹ Mr. Poulos emailed Attorney Garabedian in September 2018: "I haven't heard from you in quite some time. I am just wondering if you have any updates concerning my case against the Hill School."⁴² The day after Mr. Poulos sent the email, Attorney Garabedian called Attorney Rees and left him a voicemail.⁴³ The record contains attorney notes suggesting Attorney Garabedian spoke with Mr. Poulos's mother, an attorney, on December 12, 2018, and told her "there's a movement to amend" the Pennsylvania statute of limitations which is "projected to take about 9-12 months, but no guarantees."⁴⁴

Attorneys Garabedian and Gaul spoke with Attorney Rees on December 21, 2018.⁴⁵ Attorney Rees requested more information about Mr. Poulos's claims, and Attorney Garabedian agreed to provide it.⁴⁶ Attorney Rees asked to interview Mr. Poulos.⁴⁷ Attorney Garabedian countered with a proposal of mediation.⁴⁸

Attorney Garabedian sends December 2018 letter accusing Mr. Ralston of sexual abuse.

Attorney Garabedian sent a second letter to the Hill School on December 26, 2018.⁴⁹ He addressed this letter to Attorney Rees.⁵⁰ Attorney Garabedian wrote Mr. Poulos met Mr. Ralston during Mr. Poulos's freshman year at the Hill School in 1993 or 1994.⁵¹ Mr. Ralston taught Mr. Poulos Geometry during Mr. Poulos's sophomore year when Mr. Poulos was fifteen or sixteen years old.⁵² Mr. Ralston allegedly made Mr. Poulos stay behind after class on certain days, leaving the two alone in the classroom.⁵³ Mr. Ralston allegedly "sexually abused" Mr. Poulos in the classroom ten to fifteen times.⁵⁴ He alleged Mr. Ralston "fondl[ed] Mr. Poulos's penis and testicles, skin on skin; Mr. Ralston ma[de] Mr. Poulos fondl[e] Mr. Ralston's penis and testicles, skin on skin; Mr. Ralston put[ ] his mouth on Mr. [Poulos's] penis; and Mr. Ralston ma[de] Mr. Poulos put his mouth on Mr. Ralston's penis."⁵⁵ Mr. Poulos transferred to a school in Wisconsin for his junior year, then returned to the Hill School for his senior year.⁵⁶ Mr. Ralston did not abuse Mr. Poulos when he returned to the Hill School.⁵⁷ Attorney Garabedian's December 26 letter did not include a settlement demand.⁵⁸ He instead concluded: "Please advise me as to your client's position with regard to this matter."⁵⁹

Headmaster Lehman read the December 26 letter.⁶⁰ He asked Mr. Ralston to "please keep his campus access limited to wherever he was staying and the Office of Institutional Giving" when he made campus visits.⁶¹ Headmaster Lehman also instructed Mr. Ralston "not to be...