F I L E D
United States Court of Appeals
Tenth Circuit
UNITED STATES COURT OF APPEALS
APR 22 1998
FOR THE TENTH CIRCUIT
PATRICK FISHER
Clerk
ELEANOR SCHULER,
Plaintiff-Appellant,
v. No. 97-2225
(D.C. No. CIV-96-292-SC)
THE MCGRAW-HILL COMPANIES, (D. N.M.)
INC.; BUSINESS WEEK, a part of
or subsidiary of McGraw-Hill Inc.,
a New York corporation doing
business in New Mexico; BUSINESS
WEEK ONLINE; GARY WEISS
and MICHAEL SCHROEDER,
individually and as employees of
The McGraw-Hill Companies, Inc.,
Defendants-Appellees.
ORDER AND JUDGMENT *
Before BRORBY, BARRETT, and BRISCOE, Circuit Judges.
*
This order and judgment is not binding precedent, except under the
doctrines of law of the case, res judicata, and collateral estoppel. The court
generally disfavors the citation of orders and judgments; nevertheless, an order
and judgment may be cited under the terms and conditions of 10th Cir. R. 36.3.
After examining the briefs and appellate record, this panel has determined
unanimously that oral argument would not materially assist the determination of
this appeal. See Fed. R. App. P. 34(a); 10th Cir. R. 34.1.9. The case is therefore
ordered submitted without oral argument, and appellant’s request for oral
argument is denied.
Plaintiff Eleanor Schuler brought this action alleging defamation and other
torts relating to defendants’ publication in Business Week magazine in September
1994 of an article entitled “Did the Amex Turn a Blind Eye to a ‘Showcase’
Stock?”. The article was subtitled, “The Bizarre Printron Case Shows the
Exchange Too Often Ignores the Most Glaring Signs of Trouble,” and it discusses
the American Stock Exchange’s (“Amex”) listing of small companies on its
Emerging Company Marketplace (“ECM”). The article focuses on Printron, Inc.,
an Albuquerque company of which plaintiff had been chairman and chief
executive officer. As it relates to plaintiff, the district court aptly summarized the
article as follows:
The article refers to Plaintiff’s status as a transsexual and it
treats certain aspects of her life when she was a man known as John
Huminik, Jr. The article also examines Plaintiff’s involvement in
two lawsuits filed against her by the Securities and Exchange
Commission (“SEC”). One of the lawsuits was filed against Plaintiff
in the mid-1970s when she was John Huminik; the other was filed
against Plaintiff in 1991 when she was Eleanor Schuler, that is, after
her sex change. Both lawsuits were resolved by injunctions barring
Plaintiff from committing future securities law violations. In both
cases, Plaintiff neither admitted nor denied the allegations against
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her; however, she signed consent decrees agreeing to entry of the
permanent injunctions.
After Printron was listed on the ECM, the value of its stock
plummeted from fourteen dollars ($14.00) per share to twenty-two
cents ($.22) per share. The article criticizes the Amex for failing to
screen companies properly before listing them on the ECM. In
addition, the article criticizes Printron for failing to reveal to
investors Plaintiff’s involvement in the SEC lawsuit filed against her
when she was a man. The article raises the question of why Schuler
received such lenient treatment in the 1991 lawsuit, and the article
speculates that perhaps the SEC did not know that Huminik and
Schuler were the same person.
Schuler v. McGraw-Hill Cos., ___ F. Supp. ___, No. CIV. 96-292 SC/RLP, 1997
WL 809755, at *1-2 (D.N.M June 11, 1997).
Plaintiff filed this action asserting claims for defamation; invasion of
privacy through false light, publication of private facts and intrusion; intentional
infliction of emotional distress; interference with contractual and prospective
business relations; and prima facie tort. She contends generally that the article
defamed her by stating or implying that she was dishonest and deceptive, that she
underwent her sex change to conceal her past, and that she concealed her sex
change and prior SEC problems from the Amex, investors and the SEC.
On defendants’ motion pursuant to Fed. R. Civ. P. 12(b)(6), the district
court dismissed the complaint. The court concluded that the article did not
include any false statements of fact on which to base the defamation or false light
claims. The court rejected plaintiff’s claim for publication of private facts
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because her sex and name change had previously been discussed in magazine and
newspaper articles. It concluded that because the article did not contain
defamatory falsehoods or other indication of outrageous conduct, plaintiff did not
state a claim for intentional infliction of emotional distress. The court also held
that because her interference with business relations claims were premised on her
claims for defamation, invasion of privacy and infliction of emotional distress
which had failed, these claims should fail as well. Finally, the court concluded
that plaintiff abandoned her intrusion and prima facie tort claims, and in any
event, her allegations did not state valid claims. Plaintiff appeals the dismissal of
all claims except the latter two.
We review a district court’s dismissal of a cause of action for failure to
state a claim de novo, and will uphold a dismissal “only when it appears that the
plaintiff can prove no set of facts in support of the claims that would entitle [her]
to relief, accepting the well-pleaded allegations of the complaint as true and
construing them in the light most favorable to the plaintiff.” Yoder v. Honeywell,
Inc., 104 F.3d 1215, 1224 (10th Cir.), cert. denied, 118 S. Ct. 55 (1997). We
have fully considered plaintiff’s arguments and reviewed the record, and we reject
plaintiff’s contention that she stated valid claims. Therefore, for substantially the
same reasons as stated by the district court, we affirm the district court’s
dismissal of her complaint.
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The judgment of the district court is AFFIRMED.
Entered for the Court
Wade Brorby
Circuit Judge
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