Galanos v. Northwestern Mut. Inv. Servs., LLC

Summary

The Appellate Division, Second Department, affirmed an order granting Northwestern Mutual Investment Services, LLC summary judgment dismissing defamation and defamation per se claims. The court held that statements made to FINRA and the New York State Department of Financial Services during investigative stages of quasi-judicial proceedings were protected by absolute privilege. The plaintiff failed to raise a triable issue of fact.

Holdings

1. The statements were absolutely privileged because they were made to FINRA and NYSDFS during the investigative stages of quasi-judicial proceedings involving compelling public interests, and the process provided a mechanism for the plaintiff to challenge the statements.
2. Summary judgment dismissing the defamation and defamation per se claims against Northwestern Mutual was proper because Northwestern Mutual established its prima facie entitlement to judgment as a matter of law and Galanos failed to raise a triable issue of fact.

Questions Presented

1. Whether Northwestern Mutual's statements to FINRA and NYSDFS during investigative proceedings were protected by an absolute privilege.
2. Whether the plaintiff raised a triable issue of fact sufficient to defeat Northwestern Mutual's motion for summary judgment on the defamation and defamation per se claims.

Disposition

affirmed