Complaint as Filed (W1692977)
Content
VIRGINIA:
CIRCUIT COURT FOR THE COUNTY OF CHESTERFIELD
SPACE PROPERTIES, LLC, ROBERT E. OWENS, JSA, LLC T/A JACKSON POINT, LLC, GASLIGHT PROPERTIES, LLC, AZALEA PROPERTIES, LLC, HERITAGE POINTE, LLC, BELLEVUE PROPERTY GROUP, LLC, PETERSBURGLAND, LLC, DEERIG LAND COMPANY, LLC, HOPKIS LAND CO., LLC, COGBILL LAND CO., LLC, EAST END PROPERTIES, LLC, RIVERSIDE LAND PROPERTIES, LLC, BELLEVUE LAND COMPANY, LLC, ABBY 'SQUAR PROPERTIES, LLC, GRAHAM ROAD PROPERTY
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COMPANY, LtC, AND COMMERCE STREET PROPERTY
COMPANY, LLC,
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Plaintiffs,
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(l - iXD~0
COMMITY TELEVISION
OFVIRGINIA,LLC, T/A WTVR TV, AND
CATHERI BECK A.K.A CATIE BECK
Defendants.
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COMPLAINT
"Space Properties, LLC ("Space Properties"), Robert E. Owens ("Owens"), JSA, LLC
("JSA"), GasLight Properties, LLC ("GasLight Properties"), Azlea Properties, LLC ("Azlea
Properties"), Heritage Pointe, LLC ("Heritage Pointe"), Bellevue Propert Group, LLC
("Bellevue Propert"), Petersburg Land, LLC ("Petersburg Land"), Deerig Land Company,
LLC ("Deering Land"), Hopkins Land Co., LLC ("Hopki Land"), and Cogbil Land Co., LLC
("Cogbil Land" and collectively with JSA, GasLight Properties, Azalea Properties, Heritage
Pointe, Bellevue Propert, Petersburg Land, Deering Land, and Hopkins Land, the ''Featued
Propert Owners"), East End Properties, LLC ("East End"), Riverside Land Properties, LLC
("Riverside Land"), Bellevue Land Company ("Bellevue Land"), Abby
'Square Properties, LLC
("Abby Square"), Graham Road Property Company, LLC ("Graham Road"), Commrce Street
Propert Company, LLC ("Commerce Street" and together with East End, Riverside Land,
Bellevue Land, Abby Square, and Graham Road, the "Additional Property Owners"),by counsel,
pursuant to Rule 3:2 of the Rules of the Supreme Cour of
Virginia, hereby files this Complaint
against Community Television of
Virginia, LLC, trading as WTVR TV, also known as CBS
Chanel 6 ("WTVR"), and its employee, reporter Catherine Beck also known as Catie Beck
("Beck" and together with WTVR, the "defendants"), and states the following in support:
THE
PARTIES
1. Space Properties is a limited liabilty company organzed under the laws of
Virgina. Space Properties manages a number of aparent communties thoughout central
Virginia, including Richmond, Chesterfield, Henrico, and Petersburg.
2. Owens is a resident of
Henrico County, Virginia. He is the registered agent for
and a member-manager of Space Properties. He is also the member-manager of the limited
liability companes that own aparent communties throughout central Virgina and that are
managed by Space Properties. Space Properties has no other members or managers.
3. JSA, GasLight Properties, Azea Properties, Heritage Point, Bellevue Propert,
Petersburg Land, Deering Land, Hopkins Land, and Cogbil Land are limited liabilty companes
organzed under the laws of
Virginia. The limted liabilty companes own vanous aparent
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communities managed by Space Properties that were featued in WTVR broadcasts that are the
subject of this litigation. Owens is the sole member-manager for each of
these companies.
4. East End, Riverside Land, Bellevue Land, Abbey Squae, Graham Road, and
Commerce Street are limited liabilty companies organized under the laws of Virginia. The
limited liabilty companes own varous aparment communities managed by Space Properties
that, upon information and belief, have not been featued in any WTVR story as of the date of
the filing of this Complaint. Owens is the sole member-manager for each of these companies.
5. Community Television of
Virginia, LLC, t/a WTVR TV, is a limited liabilty
Delaware with a principle place of
company organzed under the laws of
business in Fort Wright,
Kentucky.
6. WTVR has a registered agent in Richmond, Virginia, and operates the CBS
affliate, WTVR Chanel 6, which broadcasts throughout central Virginia. WTVR facilties are
located in Richmond.
7. WTVR employs reporter Beck.
8. Beck is a resident of
Richmond, and is also employed at WTVR's Richmond
location.
BACKGROUND FACTS
9. WTVR has broadcast a series of stories by reporter Beck purorting to
"investigate" or "dig" into complaints by residents, former employees, and
allegations of
investigations by governent agencies and others made against Space Properties on the
television station that WTVR operates, CBS afliate Chanel 6.
10. Upon information and belief, the first story aired on August 5, 2010.
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1 1. Upon information and belief, additional stories also aired, including but not
necessarily limited to those on or about August 6,2010, August 11,2010, August 21, 2010,
August 26,2010, September 28,2010, October 26,2010, October 28,2010, Januar 18,2011,
March 2011, June 1,2011, July 8,2011, and July 21,2011, plus promotional segents, or
"teasers," that advertised the upcoming stories.
12. The stories, including video and transcripts, were also available within days of
broadcast on the WTVR website, ww.wtvr.com. and they remain available as of the date of
the
fiing of this Complaint.
13. The stories identified Space Properties as an "owner" as well as manager of the
properties featued in the stories.
14. In the stories, Beck interviewed, among others, residents of, and showed images
of, the following Space Properties-managed communties:
a. Deering Manor, featued on August 5,2010 in a story about Mart
Peloquin's decision not to honor his lease with Deerig Land;
b. Heritage Pointe Apartments, featued on or about Augut 1 1, 2010 and
July 8, 2011 as Beck interviewed former Space Properties employees Jamie Whte and Eric
Bastian;
c. Bellevue Property, featured on or about August 21,2010 durng a story
about a judgment won against Bellevue Propert for the retu of a deposit to Dayna Richmond
and Donald Ells;
d. GasLight Aparents, featued on or about October 26, 2010 in the
background as naration discussed complaints pending before Virginia's Fair Housing Offce;
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e. Azalea Aparents, featured on or about October 26, 2010 in a story about
tenant Latoya Heath's complaint about cockroaches in her aparment;
f. Sumit Pointe, featured on or about October 28,2010 in a story about
resident Lauren Tucker who complained of problems with the gas lines to her aparent, which
story focused on her cousin, who was not a tenant and who apparently had been living in the unt
in violation of
her lease;
g. Jackson Square, featured on or about June 1,2011 related to a complaint
by tenant Sabrina Owens regarding her plumbing;
h. Dupont Vilage, upon information and belief featured on several
occasions, including on or about July 8, 2011 as Beck ambushed plaintiff Owens in the parking
lot of the coinunty to obtain comments about her allegations; and
1. Dutch Vilage, featued on or about July 21,2011 in a story about a
resident who was pleased with her aparment home that was in a Space Properties-managed
coinunty although the story also mentioned previous stories and the alleged problems
described therein.
15. The stories also mentioned or alluded to accusations made directly regarding
Owens, the only member and the only manager of Space Properties.
16. The defendants knew that some of
the factual statements in their stories were false
at the time of publication.
17. The defendants knew that some of the factul statements in the stories were made
by individuals who were in the process of
being evicted or their employment with Space
Properties had been terminated.
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18. The defendants knew that some of the individuals making the factual statements
in their stories had reason to be motivated by revenge, personal spite, il will, or a desire to injure
the reputations of
Space Properties and Robert Owens.
19. The defendants only made one attempt to contact Space Properties before airing
the August 5, 2010 story, by appearng in person and without an appointment with cameras recording to the Space Properties main offce and asking for an on-camera comment.
20. The defendants did not leave a voice message for Space Properties or Owens.
21. The defendants did not make an appointment to speak with Owens on his own
behalf or on behalf of Space Properties prior to airing the stories that are the subject of ths
litigation.
22. The defendats did not send Space Properties or Owens an email requesting
contact or comment prior to airing the stories that are the subject of this litigation.
23. The defendants did not send Space Properties or Robert Owens a letter via the
U.S. Postal Service or any other postal delivery system or courier in an attempt to verify the
factual allegations prior to airing any of the stories that are the subject of
this litigation.
24. Upon information and belief, the defendants did not receive any verification as to
the truth of the factual assertions aired in the stories that are the subject of this litigation from
other residents, from governent offcials, from curent employees, or from any other unbiased
source, but aired the stories without verification.
25. On July 5, 2011, Owens gave a one to two hour off-camera interview
to defendant
Beck in which he refuted the accusations made against him and Space Properties.
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26. The defendants continued to publish stories containing false statements of fact
after this interview, knowing that the information was false, contained material omissions, and
mischaracterized the truth.
27. The actions listed above are evidence that the defendants proceeded with
knowledge that factul information contained in their stories was false or with a reckless
disregard of whether it was false or not.
28. The actions listed above are evidence that the defendants proceeded with a
negligent disregard for the truth or falsity of the facts contained in their stories.
29. At no time have either of
the defendants published a retraction or an apology.
30. Even the positive story that aired on July 21,2011 contained no apology or
retraction for previous stories, and reiterated prior accusations as though they were trthfuL.
VENUE AND JURISDICTION
31. Space Properties' main offce was located in the City of
Richmond from Febru
2004 to Februar 201 1. The main offce has been located in Chesterfield County from Febru
2011 to present.
32. Space Properties manages aparment communties throughout Richmond and the
surounding area. Space Properties-managed communties featued in WTVR stories are located
in the City of Richmond, the County of Chesterfield, the County of Henrico, and the City of
Petersburg.
33. Beck traveled to aparent communties in Richmond, Chesterfield, Henrco, and
Petersburg to videotape news stories about the communties. She also interviewed residents of
the communties and former employees in the communties.
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34. WTVR broadcasted a series of stories by Beck featuing Space Propertiesmanaged aparent communities located in Richmond, Chesterfield, Henrico, and Petersburg.
The broadcasts included video shot on location in the featued apartent communities, and the
broadcasts reached viewers in those jurisdictions.
35. Space Properties, Owens, the Featured Propert Owners, and the Additional
Property Owners all suffered damages as enumerated below, in the jurisdictions of
Richmond,
Chesterfield, Henrico, and Petersburg as a
result of
the defendants' tortious conduct.
36. WTVR committed tortious acts by broadcasting a series of defamatory news
stories to Chesterfeld County.
37. Upon information and belief, WTVR conducts substantial and regular business in
Chesterfield County.
38. WTVR's agent, reporter Beck, traveled in fuherance of
her employment with
WTVR to Chesterfield County where she committed the tortious acts described below.
39. Therefore, venue is properly set in the Circuit Cour for the County of
Chesterfeld, which has jursdiction over defendants for the subject matter of ths litigation.
COUNT I: DEFAMTION AGAINST SPACE PROPERTIES (Both Defendants)
40. Space Properties, Owens, the Featured Propert Owners, and the Additional
Property Owners hereby reallege and incorporate Paragraphs 1 through 39 above as if set forth
here in their entirety.
41. Space Properties is a private entity that performs no public fuction, but manages
aparent communties for privately-owned and closely-held limited liabilty companes.
42. Every story published by WTVR about Space Properties-managed communities
included factual inaccuracies and unverified accusations.
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43. At the time of publication, Beck and WTVR knew that the statements obtained
from residents and former residents, former Space Properties employees, the Better Business
Bureau, and Housing Opportuntiès Made Equal were not verified.
44. At the time of
publication, Beck and WTVR knowingly and intentionally
misrepresented their efforts to verify the information presented in their stories, by misstating or
mischaracterizing efforts to obtain information from Space Properties or Owens.
45. At the time of
publication, Beck and WTVR knowingly and intentionally omitted
material information that would place negative stories in context or mitigate the accusations
made against Space Properties.
46. The stories published by the defendants characterized Space Properties as
conducting its business in an unlawfl maner, including violations of cour orders, offenses that
were going to be reported to the police for investigation, and violations of building codes and
ordinances that were under investigation by state and localoffcials.
47. The stories published by the defendants characterized Space Properties as being
unfit in a number of ways to manage the aparment communties for which it was contracted.
48. After each story was aired, aparment communities managed by Space Properties
suffered from a decrease in the rate of rental of available unts, an increase in defaults on leases,
a lower rate of renewal among curent residents, an increase in complaints and maintenance
requests, and an increase of telephone calls regarding complaints or questions to Space
Properties' staf members.
49. The daages listed above were suffered in communties that were featued in
broadcasts, including those that were shown as background footage as damaging and defamatory
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allegations were made in the naration, as well as in communities that were not shown but which
are managed by Space Properties.
50. Owens was also personally financially impacted by the losses suffered by his
companies as a result of th defamation of Space Properties.
COUNT II: DEFAMATION PER SE AGAINST ROBERT OWENS (Both Defendants)
51. Space Properties, Owens, the Featured Jlropert Owners, and the Additional
Property Owners hereby reallege and incorporate Paragraphs i through 50 above as if set fort
here in their entirety.
52. Owens holds no public offce.
53. Owens attined no prominence as a public figure in the affairs of society prior to
being featured in the stories publicized by the defendants.
54. Owens is a private individual who has an interest in the protection of
his own
good
name.
55. Beck's stories published by the defendants characterized Owens' activities as
manager of
the featued properties as being unlawfl, in violation of cour orders, and of a nature
that Owens is being reported to the police for investigation into criminal charges, and violating
state or city building ordinances.
56. Owens was also characterized, among other things, as being motivated to use
"financially vulnerable" people in order to profit, unable to keep up with the growth of
his own
company, and unable to pay his employees due to his inabilty to properly manage the affairs of
Space Properties.
57. The stories also stated that security deposits were not held in separate accounts,
but deposited in one account, and stated that Owens spent money from the account. The maner
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in which these accusations and others were presented suggested that these acts occurred and were
unlawfl, or were evidence of Owens' greed or mismanagement, among other things.
58. The stories also alluded to complaints before Virginia's Fair Housing Offce, the
Attorney General, and complaints investigated by Housing Opportunities Made Equal, a non-
profit entity that investigates discrimination claims, implying that either Owens or Space
Properties engages in acts of discrimination, among other things.
59. The stories characterized Owens as being the decision-maker behind Space
Properties, and imputed the actions or omissions alleged against Space Properties to Owens
himself.
60. Among other things, the stories characterized Owens as being unt to perform his
duties as the member-manager of Space Properties and the member-manager of
the Featured
Property Owners.
61. The words and statements in the stories in their normal usage were understood-by
people in the communty to har Owens' reputation.
62. These stories and statements constitute defamation per se against Robert Owens.
63. As a result, Owens has suffered injuries to his reputation and stading in the
community, and the defendats have caused him personal humilation, embarassment, and
mental suffering.
64. In addition, he has suffered pecuniary losses due to the defamatory statements
made about him and the companes that he manages.
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COUNT III: CONSPIRACY TO HARM IN TRADE,
BUSINESS, OR PROFESSION
(Both Defendants)
65. Space Properties, Owens, the Featured Property Owners, and the Additional
Propert Owners hereby reallege and incorporate Paragraphs 1 through 64 above as if set forth
here in their entirety.
66. The defendants acted in concert, agreed, associated, mutually undertook, and
combined together with, among others, the people and entities featured in their stories, and
including but not limited to Jamie Whte, Sabrina Owens, Latoya Heath, J. Lee Gilbert, Matt
Peloquin, Donald Ells, Dayna Richmond, Eric Bastian, Lauren Tucker, Danny Oliver, Housing
Opportities Made Equal, Amy Nelson, the Better Business Bureau, and Tom Gallagher, as
alleged in detail above, in order to produce a series of at least thirteen news stories and additional
"teasers" for the stories makng false and misleading statements about Space Properties, Owens, and apartment communties managed by Space Properties.
67. The defendants intentionally, purosefuly, and without lawfl
justification
injured the plaintiffs' reputation, trade, and business.
68. These acts are a violation of the common law in Virginia and of
Virginia Code
§ 18.2-499, et seq.
69. The plaintiffs suffered from reduced rental income, an increased rate of default on
rental payments owed to them, an increased rate of employee turnover, a reduced resident
retention rate resulting from the failure of tenants to renew at the end of their lease terms,
reduced property values for properties managed by Space Properties, a reduced perception of
credit worthiess among lenders in the community where the plaintiffs do business, and an
increased number of employees required to operate their business as a direct result of the stories.
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COUNT iv: TORTIOUS INTERFERENCE WITH CONTRACT NOT TERMINABLE AT WILL (Both Defendants)
70. Space Properties, Owens, the Featured Property Owners, and the Additional
Property Owners hereby reallege and incorporate Paragraphs 1 through 69 above as if set forth
here in their entirety.
71. The defendants knew that the owners of the aparment communties managed by
Space Properties had valid leases with the tenants residing in those aparment communities.
72. The defendants broadcast at least thirteen news stories over a one-year period
over the television chanel operated by WTVR, and republished the stories in video and written
format on a website over which WTVR controls the content.
73. Defendant Beck also spoke to individual tenants that she knew had leases at the
featued properties, and repeated the false and misleading accusations set forth above.
74. These stories and interviews were an intentional effort to create fear in the minds
of tenants and other members of the communty about the safety of the properties managed by
Space Properties.
75. These broadcasts, republications, and interviews constitute an intentional effort to
cause tenants of apartment communities managed by Space Properties to terminate their leases,
and to discourage others from becoming tenants.
76. The number ofleases termnated by residents, or not entered into by those who
would otherwse have been tenants, as a result of the fear intentionally created by the defendants
about the safety of the aparment communties managed by Space Properties, and quality of the
management, caused financial har to the plaintiffs.
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COUNT v: RESPONDEAT SUPERIOR LIABILITY FOR BECK'S TORTIOUS CONDUCT (WTVR)
77. Space Properties, Owens, the Featued Property Owners, and the Additional
Property Owners hereby reallege and incorporate Paragraphs 1 through 76 above as if set forth
here in their entirety.
78. Beck is an employee of WTVR.
79. Beck was negligent in her verification of the truthfulness of the factual statements
contained in her news stories prepared within the scope of
her employment with WTVR.
80. The plaintiffs were damaged as a result of
Beck's negligence or reckless disregard
for the truthfuness of the statements in her stories.
81. Beck also knowingly and intentionally made false statements of fact in her news
stories prepared within the scope of her employment with WTVR.
82. The false statements were made in fuherance of
her employer's interests.
83. Beck and WTVR broadcast the stories to create a dramatic, memorable,
controversial news series that would generate concern and interest in the community, which
would increase viewership of future stories, and sponsorship interest in WTVR.
84. The plaintiffs suffered pecuniar losses as a result of the publication of stories
contaning Beck's negligent and reckless disregard for the truth, and the plaintiffs also suffered
pecunar losses as a result of the publication of statements that were intentionally false.
85. Owens further sufered emotional damages, including mental distress,
embarassment, personal humilation, and injur to his personal reputation in the community.
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PRAYER FOR RELIEF
WHEREFORE, for the reasons stated above, the plaintiffs hereby request that they be
awarded judgment as set forth below for which the defendants will be jointly and severally
liable:
a. The Featured Property Owners and the Additional Property Owners request an
award of
$53,844,704 in compensatory damages to compensate them for their pecuniary losses,
including loss of rental income from new tenants, reduced retention of current tenants, increases
in defaults and breached lease contracts with curent tenants, and lost propert value.
b. Space Properties requests an award of$3,058,823 in compensatory damages for
losses incured due to increased demand on employees' time to manage properties, including
responding to complaints, responding to news stories, and staff turnover requiring hinng and
training of new staff members.
c. Owens requests an award of
$5,000,000 in compensatory damages for loss of
income, diminished value to properties held by companes for which he is the only member, and
reduced credit worthiness.
d. Owens requests an award of $260,000 in compensatory damages for injury to his
reputation, embarassment, humiliation, and emotional distress caused by the defendants.
e. The plaintiffs collectively request a punitive damage award of $350,000 for the
publication of statements that the defendants knew were false, and statements for which the
defendants were reckless with regard to the trth or falsity of
the statements.
f. The plaintiffs respectfuly request that this Court fuher award all costs expended
in bringing ths action, and interest from the date of
the first broadcast, August 5,2010, on the
grounds that ths was the date from which the plaintiffs began expenencing pecunary han as a
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result of
the defendants' actions, reasonable attorneys' fees, and treble damages as permitted
under Va. Code § 18.2-500.
SPACE PROPERTIES, LLC,
ROBERT E. OWENS,
JSA, LLC T/A JACKSON POINT, LLC,
GASLIGHT PROPERTIES, LLC,
AZALEA PROPERTIES, LLC,
HERITAGE POINTE, LLC,
BELLEVUE PROPERTY GROUP, LLC,
PETERSBURG LAND, LLC,
DEERIG LAND COMPANY, LLC,
HOPKIS LAN
CO., LLC,
CO., LLC,
COGBILL LAND
EAST END PROPERTIES, LLC,
RIVERSIDE LAND PROPERTIES, LLC,
BELLEVUE LAND COMPANY, LLC,
ABBY SQUAR PROPERTIES, LLC,
GRAHAM ROAD
PROPERTY COMPANY, LLC,
AND
COMMERCE STREET PROPERTY COMPANY, LLC
By Counsel
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tefan M. Calos (VS No. 27405) Erin R. McNeil (VSB No. 78816)
SANDS ANDERSON PC
1111 East Main Street, Suite 2400 P. O. Box 1998
Richmond, Virginia 23218-1998
Telephone: (804) 648-1636
Facsimile: (804) 783-7291
Email: scalos(ßsandsanderson.com
Email: emcneil(ßsandsanderson.com
Counsel for Plaintif
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CIRCUIT COURT FOR THE COUNTY OF CHESTERFIELD
SPACE PROPERTIES, LLC, ROBERT E. OWENS, JSA, LLC T/A JACKSON POINT, LLC, GASLIGHT PROPERTIES, LLC, AZALEA PROPERTIES, LLC, HERITAGE POINTE, LLC, BELLEVUE PROPERTY GROUP, LLC, PETERSBURGLAND, LLC, DEERIG LAND COMPANY, LLC, HOPKIS LAND CO., LLC, COGBILL LAND CO., LLC, EAST END PROPERTIES, LLC, RIVERSIDE LAND PROPERTIES, LLC, BELLEVUE LAND COMPANY, LLC, ABBY 'SQUAR PROPERTIES, LLC, GRAHAM ROAD PROPERTY
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i
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COMPANY, LtC, AND COMMERCE STREET PROPERTY
COMPANY, LLC,
)
)
)
)
)
.: o
..
Plaintiffs,
v.
) ) )
) Civil Action No.:
)
(l - iXD~0
COMMITY TELEVISION
OFVIRGINIA,LLC, T/A WTVR TV, AND
CATHERI BECK A.K.A CATIE BECK
Defendants.
) ) ) ) ) )
COMPLAINT
"Space Properties, LLC ("Space Properties"), Robert E. Owens ("Owens"), JSA, LLC
("JSA"), GasLight Properties, LLC ("GasLight Properties"), Azlea Properties, LLC ("Azlea
Properties"), Heritage Pointe, LLC ("Heritage Pointe"), Bellevue Propert Group, LLC
("Bellevue Propert"), Petersburg Land, LLC ("Petersburg Land"), Deerig Land Company,
LLC ("Deering Land"), Hopkins Land Co., LLC ("Hopki Land"), and Cogbil Land Co., LLC
("Cogbil Land" and collectively with JSA, GasLight Properties, Azalea Properties, Heritage
Pointe, Bellevue Propert, Petersburg Land, Deering Land, and Hopkins Land, the ''Featued
Propert Owners"), East End Properties, LLC ("East End"), Riverside Land Properties, LLC
("Riverside Land"), Bellevue Land Company ("Bellevue Land"), Abby
'Square Properties, LLC
("Abby Square"), Graham Road Property Company, LLC ("Graham Road"), Commrce Street
Propert Company, LLC ("Commerce Street" and together with East End, Riverside Land,
Bellevue Land, Abby Square, and Graham Road, the "Additional Property Owners"),by counsel,
pursuant to Rule 3:2 of the Rules of the Supreme Cour of
Virginia, hereby files this Complaint
against Community Television of
Virginia, LLC, trading as WTVR TV, also known as CBS
Chanel 6 ("WTVR"), and its employee, reporter Catherine Beck also known as Catie Beck
("Beck" and together with WTVR, the "defendants"), and states the following in support:
THE
PARTIES
1. Space Properties is a limited liabilty company organzed under the laws of
Virgina. Space Properties manages a number of aparent communties thoughout central
Virginia, including Richmond, Chesterfield, Henrico, and Petersburg.
2. Owens is a resident of
Henrico County, Virginia. He is the registered agent for
and a member-manager of Space Properties. He is also the member-manager of the limited
liability companes that own aparent communties throughout central Virgina and that are
managed by Space Properties. Space Properties has no other members or managers.
3. JSA, GasLight Properties, Azea Properties, Heritage Point, Bellevue Propert,
Petersburg Land, Deering Land, Hopkins Land, and Cogbil Land are limited liabilty companes
organzed under the laws of
Virginia. The limted liabilty companes own vanous aparent
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communities managed by Space Properties that were featued in WTVR broadcasts that are the
subject of this litigation. Owens is the sole member-manager for each of
these companies.
4. East End, Riverside Land, Bellevue Land, Abbey Squae, Graham Road, and
Commerce Street are limited liabilty companies organized under the laws of Virginia. The
limited liabilty companes own varous aparment communities managed by Space Properties
that, upon information and belief, have not been featued in any WTVR story as of the date of
the filing of this Complaint. Owens is the sole member-manager for each of these companies.
5. Community Television of
Virginia, LLC, t/a WTVR TV, is a limited liabilty
Delaware with a principle place of
company organzed under the laws of
business in Fort Wright,
Kentucky.
6. WTVR has a registered agent in Richmond, Virginia, and operates the CBS
affliate, WTVR Chanel 6, which broadcasts throughout central Virginia. WTVR facilties are
located in Richmond.
7. WTVR employs reporter Beck.
8. Beck is a resident of
Richmond, and is also employed at WTVR's Richmond
location.
BACKGROUND FACTS
9. WTVR has broadcast a series of stories by reporter Beck purorting to
"investigate" or "dig" into complaints by residents, former employees, and
allegations of
investigations by governent agencies and others made against Space Properties on the
television station that WTVR operates, CBS afliate Chanel 6.
10. Upon information and belief, the first story aired on August 5, 2010.
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1 1. Upon information and belief, additional stories also aired, including but not
necessarily limited to those on or about August 6,2010, August 11,2010, August 21, 2010,
August 26,2010, September 28,2010, October 26,2010, October 28,2010, Januar 18,2011,
March 2011, June 1,2011, July 8,2011, and July 21,2011, plus promotional segents, or
"teasers," that advertised the upcoming stories.
12. The stories, including video and transcripts, were also available within days of
broadcast on the WTVR website, ww.wtvr.com. and they remain available as of the date of
the
fiing of this Complaint.
13. The stories identified Space Properties as an "owner" as well as manager of the
properties featued in the stories.
14. In the stories, Beck interviewed, among others, residents of, and showed images
of, the following Space Properties-managed communties:
a. Deering Manor, featued on August 5,2010 in a story about Mart
Peloquin's decision not to honor his lease with Deerig Land;
b. Heritage Pointe Apartments, featued on or about Augut 1 1, 2010 and
July 8, 2011 as Beck interviewed former Space Properties employees Jamie Whte and Eric
Bastian;
c. Bellevue Property, featured on or about August 21,2010 durng a story
about a judgment won against Bellevue Propert for the retu of a deposit to Dayna Richmond
and Donald Ells;
d. GasLight Aparents, featued on or about October 26, 2010 in the
background as naration discussed complaints pending before Virginia's Fair Housing Offce;
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e. Azalea Aparents, featured on or about October 26, 2010 in a story about
tenant Latoya Heath's complaint about cockroaches in her aparment;
f. Sumit Pointe, featured on or about October 28,2010 in a story about
resident Lauren Tucker who complained of problems with the gas lines to her aparent, which
story focused on her cousin, who was not a tenant and who apparently had been living in the unt
in violation of
her lease;
g. Jackson Square, featured on or about June 1,2011 related to a complaint
by tenant Sabrina Owens regarding her plumbing;
h. Dupont Vilage, upon information and belief featured on several
occasions, including on or about July 8, 2011 as Beck ambushed plaintiff Owens in the parking
lot of the coinunty to obtain comments about her allegations; and
1. Dutch Vilage, featued on or about July 21,2011 in a story about a
resident who was pleased with her aparment home that was in a Space Properties-managed
coinunty although the story also mentioned previous stories and the alleged problems
described therein.
15. The stories also mentioned or alluded to accusations made directly regarding
Owens, the only member and the only manager of Space Properties.
16. The defendants knew that some of
the factual statements in their stories were false
at the time of publication.
17. The defendants knew that some of the factul statements in the stories were made
by individuals who were in the process of
being evicted or their employment with Space
Properties had been terminated.
5
18. The defendants knew that some of the individuals making the factual statements
in their stories had reason to be motivated by revenge, personal spite, il will, or a desire to injure
the reputations of
Space Properties and Robert Owens.
19. The defendants only made one attempt to contact Space Properties before airing
the August 5, 2010 story, by appearng in person and without an appointment with cameras recording to the Space Properties main offce and asking for an on-camera comment.
20. The defendants did not leave a voice message for Space Properties or Owens.
21. The defendants did not make an appointment to speak with Owens on his own
behalf or on behalf of Space Properties prior to airing the stories that are the subject of ths
litigation.
22. The defendats did not send Space Properties or Owens an email requesting
contact or comment prior to airing the stories that are the subject of this litigation.
23. The defendants did not send Space Properties or Robert Owens a letter via the
U.S. Postal Service or any other postal delivery system or courier in an attempt to verify the
factual allegations prior to airing any of the stories that are the subject of
this litigation.
24. Upon information and belief, the defendants did not receive any verification as to
the truth of the factual assertions aired in the stories that are the subject of this litigation from
other residents, from governent offcials, from curent employees, or from any other unbiased
source, but aired the stories without verification.
25. On July 5, 2011, Owens gave a one to two hour off-camera interview
to defendant
Beck in which he refuted the accusations made against him and Space Properties.
6
26. The defendants continued to publish stories containing false statements of fact
after this interview, knowing that the information was false, contained material omissions, and
mischaracterized the truth.
27. The actions listed above are evidence that the defendants proceeded with
knowledge that factul information contained in their stories was false or with a reckless
disregard of whether it was false or not.
28. The actions listed above are evidence that the defendants proceeded with a
negligent disregard for the truth or falsity of the facts contained in their stories.
29. At no time have either of
the defendants published a retraction or an apology.
30. Even the positive story that aired on July 21,2011 contained no apology or
retraction for previous stories, and reiterated prior accusations as though they were trthfuL.
VENUE AND JURISDICTION
31. Space Properties' main offce was located in the City of
Richmond from Febru
2004 to Februar 201 1. The main offce has been located in Chesterfield County from Febru
2011 to present.
32. Space Properties manages aparment communties throughout Richmond and the
surounding area. Space Properties-managed communties featued in WTVR stories are located
in the City of Richmond, the County of Chesterfield, the County of Henrico, and the City of
Petersburg.
33. Beck traveled to aparent communties in Richmond, Chesterfield, Henrco, and
Petersburg to videotape news stories about the communties. She also interviewed residents of
the communties and former employees in the communties.
7
34. WTVR broadcasted a series of stories by Beck featuing Space Propertiesmanaged aparent communities located in Richmond, Chesterfield, Henrico, and Petersburg.
The broadcasts included video shot on location in the featued apartent communities, and the
broadcasts reached viewers in those jurisdictions.
35. Space Properties, Owens, the Featured Propert Owners, and the Additional
Property Owners all suffered damages as enumerated below, in the jurisdictions of
Richmond,
Chesterfield, Henrico, and Petersburg as a
result of
the defendants' tortious conduct.
36. WTVR committed tortious acts by broadcasting a series of defamatory news
stories to Chesterfeld County.
37. Upon information and belief, WTVR conducts substantial and regular business in
Chesterfield County.
38. WTVR's agent, reporter Beck, traveled in fuherance of
her employment with
WTVR to Chesterfield County where she committed the tortious acts described below.
39. Therefore, venue is properly set in the Circuit Cour for the County of
Chesterfeld, which has jursdiction over defendants for the subject matter of ths litigation.
COUNT I: DEFAMTION AGAINST SPACE PROPERTIES (Both Defendants)
40. Space Properties, Owens, the Featured Propert Owners, and the Additional
Property Owners hereby reallege and incorporate Paragraphs 1 through 39 above as if set forth
here in their entirety.
41. Space Properties is a private entity that performs no public fuction, but manages
aparent communties for privately-owned and closely-held limited liabilty companes.
42. Every story published by WTVR about Space Properties-managed communities
included factual inaccuracies and unverified accusations.
8
43. At the time of publication, Beck and WTVR knew that the statements obtained
from residents and former residents, former Space Properties employees, the Better Business
Bureau, and Housing Opportuntiès Made Equal were not verified.
44. At the time of
publication, Beck and WTVR knowingly and intentionally
misrepresented their efforts to verify the information presented in their stories, by misstating or
mischaracterizing efforts to obtain information from Space Properties or Owens.
45. At the time of
publication, Beck and WTVR knowingly and intentionally omitted
material information that would place negative stories in context or mitigate the accusations
made against Space Properties.
46. The stories published by the defendants characterized Space Properties as
conducting its business in an unlawfl maner, including violations of cour orders, offenses that
were going to be reported to the police for investigation, and violations of building codes and
ordinances that were under investigation by state and localoffcials.
47. The stories published by the defendants characterized Space Properties as being
unfit in a number of ways to manage the aparment communties for which it was contracted.
48. After each story was aired, aparment communities managed by Space Properties
suffered from a decrease in the rate of rental of available unts, an increase in defaults on leases,
a lower rate of renewal among curent residents, an increase in complaints and maintenance
requests, and an increase of telephone calls regarding complaints or questions to Space
Properties' staf members.
49. The daages listed above were suffered in communties that were featued in
broadcasts, including those that were shown as background footage as damaging and defamatory
9
allegations were made in the naration, as well as in communities that were not shown but which
are managed by Space Properties.
50. Owens was also personally financially impacted by the losses suffered by his
companies as a result of th defamation of Space Properties.
COUNT II: DEFAMATION PER SE AGAINST ROBERT OWENS (Both Defendants)
51. Space Properties, Owens, the Featured Jlropert Owners, and the Additional
Property Owners hereby reallege and incorporate Paragraphs i through 50 above as if set fort
here in their entirety.
52. Owens holds no public offce.
53. Owens attined no prominence as a public figure in the affairs of society prior to
being featured in the stories publicized by the defendants.
54. Owens is a private individual who has an interest in the protection of
his own
good
name.
55. Beck's stories published by the defendants characterized Owens' activities as
manager of
the featued properties as being unlawfl, in violation of cour orders, and of a nature
that Owens is being reported to the police for investigation into criminal charges, and violating
state or city building ordinances.
56. Owens was also characterized, among other things, as being motivated to use
"financially vulnerable" people in order to profit, unable to keep up with the growth of
his own
company, and unable to pay his employees due to his inabilty to properly manage the affairs of
Space Properties.
57. The stories also stated that security deposits were not held in separate accounts,
but deposited in one account, and stated that Owens spent money from the account. The maner
10
in which these accusations and others were presented suggested that these acts occurred and were
unlawfl, or were evidence of Owens' greed or mismanagement, among other things.
58. The stories also alluded to complaints before Virginia's Fair Housing Offce, the
Attorney General, and complaints investigated by Housing Opportunities Made Equal, a non-
profit entity that investigates discrimination claims, implying that either Owens or Space
Properties engages in acts of discrimination, among other things.
59. The stories characterized Owens as being the decision-maker behind Space
Properties, and imputed the actions or omissions alleged against Space Properties to Owens
himself.
60. Among other things, the stories characterized Owens as being unt to perform his
duties as the member-manager of Space Properties and the member-manager of
the Featured
Property Owners.
61. The words and statements in the stories in their normal usage were understood-by
people in the communty to har Owens' reputation.
62. These stories and statements constitute defamation per se against Robert Owens.
63. As a result, Owens has suffered injuries to his reputation and stading in the
community, and the defendats have caused him personal humilation, embarassment, and
mental suffering.
64. In addition, he has suffered pecuniary losses due to the defamatory statements
made about him and the companes that he manages.
11
COUNT III: CONSPIRACY TO HARM IN TRADE,
BUSINESS, OR PROFESSION
(Both Defendants)
65. Space Properties, Owens, the Featured Property Owners, and the Additional
Propert Owners hereby reallege and incorporate Paragraphs 1 through 64 above as if set forth
here in their entirety.
66. The defendants acted in concert, agreed, associated, mutually undertook, and
combined together with, among others, the people and entities featured in their stories, and
including but not limited to Jamie Whte, Sabrina Owens, Latoya Heath, J. Lee Gilbert, Matt
Peloquin, Donald Ells, Dayna Richmond, Eric Bastian, Lauren Tucker, Danny Oliver, Housing
Opportities Made Equal, Amy Nelson, the Better Business Bureau, and Tom Gallagher, as
alleged in detail above, in order to produce a series of at least thirteen news stories and additional
"teasers" for the stories makng false and misleading statements about Space Properties, Owens, and apartment communties managed by Space Properties.
67. The defendants intentionally, purosefuly, and without lawfl
justification
injured the plaintiffs' reputation, trade, and business.
68. These acts are a violation of the common law in Virginia and of
Virginia Code
§ 18.2-499, et seq.
69. The plaintiffs suffered from reduced rental income, an increased rate of default on
rental payments owed to them, an increased rate of employee turnover, a reduced resident
retention rate resulting from the failure of tenants to renew at the end of their lease terms,
reduced property values for properties managed by Space Properties, a reduced perception of
credit worthiess among lenders in the community where the plaintiffs do business, and an
increased number of employees required to operate their business as a direct result of the stories.
12
COUNT iv: TORTIOUS INTERFERENCE WITH CONTRACT NOT TERMINABLE AT WILL (Both Defendants)
70. Space Properties, Owens, the Featured Property Owners, and the Additional
Property Owners hereby reallege and incorporate Paragraphs 1 through 69 above as if set forth
here in their entirety.
71. The defendants knew that the owners of the aparment communties managed by
Space Properties had valid leases with the tenants residing in those aparment communities.
72. The defendants broadcast at least thirteen news stories over a one-year period
over the television chanel operated by WTVR, and republished the stories in video and written
format on a website over which WTVR controls the content.
73. Defendant Beck also spoke to individual tenants that she knew had leases at the
featued properties, and repeated the false and misleading accusations set forth above.
74. These stories and interviews were an intentional effort to create fear in the minds
of tenants and other members of the communty about the safety of the properties managed by
Space Properties.
75. These broadcasts, republications, and interviews constitute an intentional effort to
cause tenants of apartment communities managed by Space Properties to terminate their leases,
and to discourage others from becoming tenants.
76. The number ofleases termnated by residents, or not entered into by those who
would otherwse have been tenants, as a result of the fear intentionally created by the defendants
about the safety of the aparment communties managed by Space Properties, and quality of the
management, caused financial har to the plaintiffs.
13
COUNT v: RESPONDEAT SUPERIOR LIABILITY FOR BECK'S TORTIOUS CONDUCT (WTVR)
77. Space Properties, Owens, the Featued Property Owners, and the Additional
Property Owners hereby reallege and incorporate Paragraphs 1 through 76 above as if set forth
here in their entirety.
78. Beck is an employee of WTVR.
79. Beck was negligent in her verification of the truthfulness of the factual statements
contained in her news stories prepared within the scope of
her employment with WTVR.
80. The plaintiffs were damaged as a result of
Beck's negligence or reckless disregard
for the truthfuness of the statements in her stories.
81. Beck also knowingly and intentionally made false statements of fact in her news
stories prepared within the scope of her employment with WTVR.
82. The false statements were made in fuherance of
her employer's interests.
83. Beck and WTVR broadcast the stories to create a dramatic, memorable,
controversial news series that would generate concern and interest in the community, which
would increase viewership of future stories, and sponsorship interest in WTVR.
84. The plaintiffs suffered pecuniar losses as a result of the publication of stories
contaning Beck's negligent and reckless disregard for the truth, and the plaintiffs also suffered
pecunar losses as a result of the publication of statements that were intentionally false.
85. Owens further sufered emotional damages, including mental distress,
embarassment, personal humilation, and injur to his personal reputation in the community.
14
PRAYER FOR RELIEF
WHEREFORE, for the reasons stated above, the plaintiffs hereby request that they be
awarded judgment as set forth below for which the defendants will be jointly and severally
liable:
a. The Featured Property Owners and the Additional Property Owners request an
award of
$53,844,704 in compensatory damages to compensate them for their pecuniary losses,
including loss of rental income from new tenants, reduced retention of current tenants, increases
in defaults and breached lease contracts with curent tenants, and lost propert value.
b. Space Properties requests an award of$3,058,823 in compensatory damages for
losses incured due to increased demand on employees' time to manage properties, including
responding to complaints, responding to news stories, and staff turnover requiring hinng and
training of new staff members.
c. Owens requests an award of
$5,000,000 in compensatory damages for loss of
income, diminished value to properties held by companes for which he is the only member, and
reduced credit worthiness.
d. Owens requests an award of $260,000 in compensatory damages for injury to his
reputation, embarassment, humiliation, and emotional distress caused by the defendants.
e. The plaintiffs collectively request a punitive damage award of $350,000 for the
publication of statements that the defendants knew were false, and statements for which the
defendants were reckless with regard to the trth or falsity of
the statements.
f. The plaintiffs respectfuly request that this Court fuher award all costs expended
in bringing ths action, and interest from the date of
the first broadcast, August 5,2010, on the
grounds that ths was the date from which the plaintiffs began expenencing pecunary han as a
15
result of
the defendants' actions, reasonable attorneys' fees, and treble damages as permitted
under Va. Code § 18.2-500.
SPACE PROPERTIES, LLC,
ROBERT E. OWENS,
JSA, LLC T/A JACKSON POINT, LLC,
GASLIGHT PROPERTIES, LLC,
AZALEA PROPERTIES, LLC,
HERITAGE POINTE, LLC,
BELLEVUE PROPERTY GROUP, LLC,
PETERSBURG LAND, LLC,
DEERIG LAND COMPANY, LLC,
HOPKIS LAN
CO., LLC,
CO., LLC,
COGBILL LAND
EAST END PROPERTIES, LLC,
RIVERSIDE LAND PROPERTIES, LLC,
BELLEVUE LAND COMPANY, LLC,
ABBY SQUAR PROPERTIES, LLC,
GRAHAM ROAD
PROPERTY COMPANY, LLC,
AND
COMMERCE STREET PROPERTY COMPANY, LLC
By Counsel
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tefan M. Calos (VS No. 27405) Erin R. McNeil (VSB No. 78816)
SANDS ANDERSON PC
1111 East Main Street, Suite 2400 P. O. Box 1998
Richmond, Virginia 23218-1998
Telephone: (804) 648-1636
Facsimile: (804) 783-7291
Email: scalos(ßsandsanderson.com
Email: emcneil(ßsandsanderson.com
Counsel for Plaintif
17
