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Yates v. Iowa West Racing Association10/12/2005
Defendants appeal jury verdicts for plaintiffs on claims of negligence and slander. REVERSED AND REMANDED.
Heard by Sackett, C.J., and Mahan and Miller, JJ.
I. Background Facts & Proceedings
Iowa West Racing Association and Harvey's Bluffs Run Management Company, Inc. operate Bluffs Run Casino in Council Bluffs, Iowa. One of the attractions at Bluffs Run is greyhound racing. Arthur Yates and Beverly Yates own Yates Kennel, Inc. Beginning in 1998, Yates Kennel obtained a booking contract at Bluffs Run. Kennels which have a booking contract can receive a greater amount of the purses from greyhound races.
In 1999 and into 2000, an increased number of dogs became injured while racing at Bluffs Run, including those from Yates Kennel. Kennel owners expressed concerns that some areas of the track might be too hard, while other areas might be too soft. Rory DeSantiago, the director of racing for Bluffs Run, sought the advice of others and tried different methods to improve the track surface. Injuries increased for a period of time. DeSantiago returned to his original track maintenance procedures, and injuries eventually decreased.
Late in 2000, Yates Kennel became concerned about rumors that it would not receive a booking contract for 2001. Beverly Yates was a director of the Iowa Greyhound Association (IGA). During a November 16, 2000, meeting of the Iowa Racing and Gaming Commission, Jerry Crawford, attorney for IGA, asked the Commission to take action to monitor the selection of kennels for booking contracts. Lyle Ditmars, attorney for Bluffs Run, was also present at the meeting. The minutes of the meeting provide:
Mr. Ditmars stated that BRC [Bluffs Run Casino] does not discuss who will or will not get a kennel contract with other kennel operators. Mr. Ditmars confirmed that Yates Kennel was not offered a contract for 2001, and will not be offered one. In 1999, the kennel was in the bottom two or three kennels in terms of performance. They were given a six-month contract. At the end of that contract, even though they remained in the bottom five, they were given an additional six-month contract to give them an opportunity to correct the situation. At this time, the Yates Kennel is second from last in terms of wins and third from the bottom in terms of win percentage for the year.
Mr. Ditmars reiterated that the Yates Kennel is second from last in the kennel standings. The kennel in last place did not receive a six-month contract in the previous year, as did the Yates Kennel due to poor performance in 1999.
The Commission took no action on Crawford's request. Reporters were present during the Commission meeting, and some of Ditmars's statements were published in the newspaper.
Arthur and Beverly Yates and Yates Kennel (together referred to as Yates Kennel) filed suit against Bluffs Run on two separate theories. Yates Kennel claimed that Bluffs Run's negligence in maintaining the racetrack caused injuries to its dogs. Yates Kennel also claimed that Ditmars's statements before the Commission constituted slander.
Bluffs Run filed a motion for partial summary judgment, claiming that Ditmars's statements were made before a quasi-judicial body and therefore, should be subject to an absolute privilege. The district court determined the Commission meeting was not a judicial proceeding and that an absolute privilege did not exist. The court concluded the statements were protected by a qualified privilege, which could be rebutted if the statements were made with actual malice.
During the trial Lori Fortune, the daughter of Arthur and Beverly Yates, testified that she was an as
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