Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Thursday, March 28, 2024 | Back issues
Courthouse News Service Courthouse News Service

Court Nixes Defamation Case Against Pharmacy

(CN) - A pharmacy is not liable for defamation after mistakenly causing a customer to be arrested for prescription fraud, the Iowa Court of Appeals ruled.

Michelle Clay sued Hy-Vee Inc. after the pharmacy wrote the wrong name for Clay's physician. When the doctor denied filling the prescription, Hy-Vee notified the police, and Clay was arrested.

The trial court ruled in favor of Clay, stating that Hy-Vee abused the privilege of the qualified immunity that would usually protect it in such a case.

Judge Mahan reversed the decision.

"Our supreme court has stated that a failure to investigate, standing alone, ordinarily will not establish a knowing or reckless disregard for the truth," Mahan ruled. "Here, Hy-Vee did investigate its statement, but it did so negligently.

"Nonetheless," the judge added, "that is not evidence that its statement to law enforcement was made with a high degree of awareness of possible falsity."

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...