Food Lion, Inc. v. Capital Cities/ABC

Facts of Case:
Producers at ABC were tipped off about possible unsanitary meat packing practices taking place at Food Lion. The producers decided to go under cover to investigate the claims. Two reporters applied for jobs with false identities, resumes, and addresses. They left out that they worked for ABC. They worked for a combined three weeks, getting 45 hours of footage. Some of the footage was used in a 1992 broadcast of Primetime Live.

Food Lion sued ABC not over defamation but over the ways in which ABC gathered the information. They sued for fraud, breach of duty of loyalty, trespass, and unfair trade practices.

Legal Issue:
The issues here was whether the two ABC reporters did commit fraud, breach of duty of loyalty, trespass, and unfair trade practices. They used false identities and mislead Food Lion when hired. They knowingly committed acts that they knew would harm Food Lion, their secondary employer. Since they got hired under false information, they trespassed to get information.

Decision:
When the case came to the supreme court they reversed the decision that the reporters committed fraud and unfair trade practices. They affirmed that they breached their duty of loyalty and committed a trespass. They also affirmed the district court’s refusal to allow Food Lion to prove publication damages, on First Amendment Grounds.

Analysis:
Since Food Lion sued for how ABC gathered their information and not defamation, the courts looked at the fine print in North and South Carolina’s rules about business and trade. Basically what it came down to time and again was filling out false information on their applications and resumes, as well as their intent to do harm to Food Lion.

Questions:
What is the significance of this case?
Who do you think was more in the wrong? Food Lion or ABC?
Do you agree with the ruling that they committed breach of duty of loyalty and committed a trespass?