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Boyd v. Osborn

Common-Interest Privilege Protects CA Attorney's Statements From Defamation Claim

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DECISION AND ORDER INTRODUCTION On September 7, 2021, Plaintiff Joseph Boyd (“Boyd”) filed this action in the Supreme Court of the State of New York, Monroe County, against Defendant Stephen M. Osborn, Esq. (“Osborn”) asserting a claim for defamation per se under New York law. ECF No. 1 at 10-16. Osborn removed the action to this Court pursuant to 28 U.S.C. §1332(a) based upon diversity of citizenship between the parties and an amount-in-controversy in excess of the sum or value of $75,000. Id. at 2. On December 6, 2021, Osborn filed a motion to dismiss pursuant to Federal Rule of Civil Procedure (“FRCP”) 12(b)(6), ECF No. 5, and, in response, Boyd filed a cross-motion to amend the complaint with an attached Proposed Amended Complaint (“PAC”). ECF No. 8. For the reasons that follow, Osborn’s motion to dismiss is GRANTED and Boyd’s motion to amend is DENIED. BACKGROUND The Court draws the following facts from the PAC, ECF No. 8-3, and accepts them as true to evaluate whether amendment would be futile. Case v. Anderson, No. 16 CIV. 983 (NSR), 2017 WL 3701863, at *6 (S.D.N.Y. Aug. 25, 2017) (“The central inquiry for the Court when considering a motion to dismiss in tandem with a motion to amend is, therefore, whether the proposed amended complaint can survive the motion to dismiss.”). Joseph Boyd is a professional financial advisor who resides in the Rochester, New York area. ECF No. 8-4 3. In 2020, one of Boyd’s clients made an investment in a company called Quantum Loop Solutions, Inc. (“QLS”). Id.

1, 7. Thereafter, Boyd was elected to QLS’s Board of Directors “[i]n his capacity as a financial advisor” to his client-investor. Id. 8. Around late-September or early-October of that year, Boyd learned of “possible theft of corporate funds” by QLS’s President, who was also a member of the Board of Directors, which prompted him to act. Id.

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