Court Nixes Defamation Case Against Pharmacy

(CN) – A pharmacy is not liable for defamation after mistakenly causing a customer to be arrested for prescription fraud, the Iowa Court of Appeals ruled.     Michelle Clay sued Hy-Vee Inc. after the pharmacy wrote the wrong name for Clay’s physician. When the doctor denied filling the prescription, Hy-Vee notified the police, and Clay was arrested.     The trial court ruled in favor of Clay, stating that Hy-Vee abused the privilege of the qualified immunity that would usually protect it in such a case.      Judge Mahan reversed the decision.     “Our supreme court has stated that a failure to investigate, standing alone, ordinarily will not establish a knowing or reckless disregard for the truth,” Mahan ruled. “Here, Hy-Vee did investigate its statement, but it did so negligently.     “Nonetheless,” the judge added, “that is not evidence that its statement to law enforcement was made with a high degree of awareness of possible falsity.”