Are statements in the fifth cause of action liable for defamation?

"New York", United States of America

The following excerpt is from Liberman v. Gelstein, 590 N.Y.S.2d 857, 605 N.E.2d 344, 80 N.Y.2d 429 (N.Y. 1992):

Plaintiff alternatively argues that the statements in the fifth cause of action tended to harm him in his business as a property owner, and thus are actionable under the "trade, business or profession" exception. That exception, however, is "limited to defamation of a kind incompatible with the proper conduct of the business, trade, profession or office itself. The statement must be made with reference to a matter of significance and importance for that purpose, rather than a more general reflection upon the plaintiff's character or qualities" (Prosser 112, at 791). Thus, "charges against a clergyman of drunkenness and other moral misconduct affect his fitness for the performance of the duties of his profession, although the same charges against a business man or tradesman do not so affect him" (Restatement 573, comment c ). The statements at issue are unrelated to plaintiff's status as a landlord, and therefore do not fall into the "trade, business or profession" exception (see, Aronson v. Wiersma, 65 N.Y.2d, at 594, 493 N.Y.S.2d 1006, 483 N.E.2d 1138, supra).

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