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Seachange International, Inc. v. Putterman

Citations: 79 Ark. App. 223; 86 S.W.3d 25; 2002 Ark. App. LEXIS 537Docket: CA 01-1126

Court: Court of Appeals of Arkansas; October 2, 2002; Arkansas; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by SeaChange International, Inc. against a partial summary judgment in favor of Concurrent Computer Corporation in a defamation and civil conspiracy lawsuit. SeaChange accused Concurrent, along with Jeffrey Putterman and Lathrop Investment Management Corporation, of conspiring to defame it through false statements posted online. The trial court granted summary judgment to Concurrent, but the appellate court reversed and remanded the decision. The appeal focused on whether genuine issues of material fact existed regarding the civil conspiracy claim against Concurrent. Evidence indicated frequent communication between Putterman and Concurrent and suggested that Putterman altered his sources after forming a joint defense agreement. The appellate court emphasized that the trial judge misapplied the summary judgment standard by not adequately considering evidence favorably for SeaChange. It found that issues of credibility, particularly concerning the testimony of Putterman and Concurrent's CEO, Siegel, warranted a jury's determination. The appellate court's decision to reverse and remand was based on the existence of material facts that could indicate a conspiracy to defame SeaChange, thus necessitating a trial.

Legal Issues Addressed

Civil Conspiracy under Tort Law

Application: The appellate court examined whether sufficient evidence existed to show that Concurrent and Putterman conspired to defame SeaChange, focusing on the existence of an agreement or cooperative actions.

Reasoning: The determination of civil conspiracy hinges on whether two or more individuals conspired for an unlawful purpose or used unlawful means for a lawful objective, resulting in injury.

Evidentiary Standards in Civil Conspiracy

Application: Evidence such as frequent communications between Putterman and Concurrent, and affidavits indicating knowledge of false information, were deemed sufficient to potentially establish a conspiracy.

Reasoning: Pleadings, depositions, exhibits, and affidavits indicate a genuine issue of material fact regarding Concurrent's involvement in a conspiracy with Putterman to defame SeaChange.

Role of Credibility in Summary Judgment

Application: The court highlighted that credibility issues, particularly concerning Putterman and Siegel, are material fact issues that should be resolved by a jury.

Reasoning: The credibility of Putterman and Siegel is questionable, which can create material fact issues for a jury, as established in Clark v. Progressive Ins. Co.

Summary Judgment Standards

Application: The appellate court found that the trial judge misapplied the standard for summary judgment by failing to properly assess whether genuine issues of material fact existed.

Reasoning: The appellate analysis noted the trial judge's misapplication of the standard for summary judgment, emphasizing that the court should focus on whether a genuine issue of material fact exists, viewing evidence favorably for the resisting party.