Rollins Ranches, LLC v. Watson

Rollins Ranches, LLC and British Gundogs, LLC, Plaintiffs, v. Rachael Watson, also known as Rachael Corbett, Defendant.

C. A. No. 18-3278-SAL-SVH

United States District Court, D. South Carolina

November 17, 2021

REPORT AND RECOMMENDATION

Shiva V. Hodges, United States Magistrate Judge

This matter comes before the court on the filings of Rollins Ranches, LLC (“Rollins”), and Rollins' subsidiary British Gundogs, LLC (collectively “Plaintiffs”), on December 30, 2020, providing the court with Plaintiffs' best estimate of damages based on the existing record, which the court construes as Plaintiffs' motion for default judgment as to Rachel Watson, also known as Rachael Corbett (“Defendant”). [ECF No. 64]. All pretrial proceedings in this case were referred to the undersigned pursuant to the provisions of 28 U.S.C. § 636(b)(i)(B) and Local Civ. Rule 73.02(B)(2)(e) (D.S.C.). Because the motion for default judgment is dispositive, this report and recommendation is entered for the district judge's consideration. For the reasons that follow, the undersigned recommends the district court deny the motion and dismiss the complaint without prejudice for failure to state a claim.

I. Factual and Procedural Background

Plaintiffs originally filed this action against Defendant, who is proceeding pro se, on December 5, 2018, bringing claims for defamation, tortious interference with existing and prospective business relationships, and civil conspiracy, and seeking damages and injunctive relief. [See ECF No 1].

More specifically, Plaintiffs allege they operate a dog breeding and training operation known as “British Gundogs.” Id. ¶ 6.^[1] Plaintiffs allege that Defendant is married to Robin Watson (“Watson”), and from August 2014 until December 2, 2016, Watson was employed as managing director of Plaintiffs' British Gundogs operations at a ranch in Osceola County, Florida. Id. ¶ 7. Defendant lived with Watson at housing provided by him, as a benefit of his employment, until Defendant and Watson left the property around December 2, 2016. Id. ¶ 8.

Since a date in or before March 2017, Defendant and Watson have operated a dog breeding and training operation known as Tibea Gundogs from Lancaster County, South Carolina. Id. ¶ 9.^[2] Plaintiffs further allege that since at least March 2017, Defendant has published statements intentionally targeted to persons in the dog training and breeding industry, including written statements regarding Plaintiffs that are defamatory per se, tending to reduce Plaintiffs' character or reputation in the estimation of the public and, particularly, the dog breeding and training community, disgracing Plaintiffs or rendering them odious contemptible, or ridiculous in the estimation of the public and that dog breeding and training community, deterring others from associating or dealing with Plaintiffs. Id. ¶ 10.

For example, on or around March 14, 2017, Defendant published statements to third parties on a Facebook page with which she and Watson are associated in which she falsely accused Plaintiffs and their owners or agents of “illegal practices, ” “break[ing] the law, ” operating or owning a “slave camp” or “prison camp, ” and being “evil people, ” further stating “don[‘]t [] send dogs to be fried on an e collar by assholes there.” Id. ¶ 6 (citing ECF No. 1-1).^[3] Plaintiffs allege these statements were published by Defendant on the Facebook page operated by Defendant and Watson, published to over 1, 500 Facebook “followers, ” including Plaintiffs' clients, prospective clients or customers, suppliers and business associates. Id. ¶ 12.

Plaintiffs further allege that again, on or around March 27, 2017, Defendant published written statements on Watson and her Facebook page warning their Facebook followers and the public interested in dog breeding and training (“our field trialing friends, judges and dog trainers”) considering job opportunities in the USA (i.e., Plaintiffs' efforts to recruit a trainer to replace Watson) to “call us first, ” accusing Plaintiffs' agents of “lies.” Id. ¶ 13 (citing ECF No. 1-2). Plaintiffs allege Defendant's March 27, 2017 defamation was directed to at least one prospective candidate for the British Gundogs job, Kristy Cousins, who Defendant advised should “be very wary.” Id. ¶ 14 (citing ECF No. 1-2).

Plaintiffs allege Defendant followed her March 27, 2017 Facebook defamation with an additional post on that same Facebook page, published to the dog breeding and training community, accusing Plaintiffs of operating a “slave camp.” Id. ¶ 15 (citing ECF No. 1-2).

Plaintiffs allege that on or around May 25, 2017, in another Facebook post, Defendant falsely accused Plaintiffs or their agents as follows:

Must admit that people's greed for money is incredulous. Horrified to hear that a big corporation to make more money, tried to [artificially inseminate] a nine year old gun shy bitch who had never had a litter before. Thankfully for the poor bitch she was not able to be Artificially inseminated as []they did not know she had a pyometra. Poor poor girl all to fulfil their greed. Credibility for this corporation is nonexistent.

Id. ¶ 16 (citing ECF No. 1-3). Plaintiffs allege this false written statement was defamatory per se, tending to reduce Plaintiffs' character or reputation in the estimation of the public and, particularly, the dog breeding and training community, disgracing Plaintiffs or rendering them odious, contemptible or ridiculous in the estimation of the public and that community, and deterring others from associating or dealing with Plaintiffs. Id. This false written statement was broadcast on Defendant and Watson's Facebook page and published to over 1, 500 Facebook “followers, ” including Plaintiffs' clients, prospective clients or customers, suppliers and business associates. Id. ¶ 16.

Plaintiffs allege that on or around September 17, 2017, as a means to hide her defamation and interference with Plaintiffs' prospective business relations, Defendant, alone or in conspiracy with Watson, took steps to “close” their Tibea Gundogs Facebook page, making it accessible to their 1, 500 or more Facebook followers, many of whom are still in the same dog breeding and training community, but hiding Defendant's defamatory statements and interference with Plaintiffs' prospective business relations from direct scrutiny by Plaintiffs or their agents. Id. ¶ 17 (citing ECF No. 1-4).

Plaintiffs allege Defendant's statements damaged them and are defamatory per se, and that, on information and belief, Defendant has on other occasions since at least March 2017, whether by written publication on Facebook or other social media, by electronic mail, or orally in person or via telephone communications, slandered or libeled Rollins, Rollins' subsidiary British Gundogs, their owners, employees, and agents. Id. ¶¶ 18-19.^[4] Plaintiffs allege Defendant, alone or in conspiracy with Watson, interfered with Plaintiffs' contract with James McKenzie (“McKenzie”), d/b/a Colmorg Kennels British Labradors, relating to the naming and breeding of a dog, “Brandy, ” causing Plaintiffs special damages. Id. ¶ 21. Plaintiffs allege Defendant, a stranger to Plaintiffs' prospective business relationships in the dog breeding and training business, through the improper means of her defamatory statements, has as her predominate and improper purpose, intentionally interfered with Plaintiffs' potential or prospective contract relations with third parties who are either breeders or trainers who would otherwise do business with British Gundogs, or are prospective customers for Plaintiffs' services or dog sales. Id. ¶ 22.

Plaintiffs further allege Defendant, individually or in combination with Watson, intentionally interfered with Plaintiffs' existing and prospective business relationships with the American Kennel Club (the “AKC”), whose registration and certification of litters is crucial to Plaintiffs' sale of dogs bred, trained and sold by British Gundogs. Id. ¶ 23. Further, Plaintiffs allege Defendant, by improper means, in combination with Watson, interfered with Plaintiffs' registration of litter SR946222 by misrepresenting Defendant's entry of Watson's signature, with his authority, on AKC registration documents, causing Plaintiffs special damages, including payments made to Watson and diminished litter value. Id. ¶ 24.

Plaintiffs also allege Defendant, by improper means, in combination with Watson, interfered with Plaintiffs' existing and prospective business relationships with The Orvis Company, Inc. (“Orvis”), whose marketing, including its Orvis-endorsed breeding program, is a significant and valuable business relationship to Plaintiffs. Id. ¶ 25. Additionally, Plaintiffs allege Defendant, a stranger to Plaintiffs' business relationship with Orvis, conspired with Watson to make false and defamatory complaints to Orvis regarding the operations of British Gundogs, including Watson's false telephone report to Orvis on or around June 9, 2017, using a pseudonym, and a written defamatory report, in January 2017, using the pseudonym “JMkess.” Id. ¶ 26.

Plaintiffs allege Defendant, a stranger to Plaintiffs' business relationships with The Kennel Club, the United Kingdom's version of the AKC, conspired with Watson to make false and defamatory complaints to The Kennel Club regarding Kennel Club registration of Plaintiffs' dogs, causing Plaintiffs special damages. Id. ¶ 27. Plaintiffs allege Defendant, by improper means and for improper purposes, in combination with Watson, interfered with Plaintiffs' prospective business relationships with additional third parties involved in the dog breeding and training business, causing Plaintiffs injury. Id. ¶ 28.

Plaintiffs allege, on information and belief, this...