Business Law 12th Edition by Roger LeRoy Miller ,Frank Cross

Exercise 9

Defamation Lydia Hagberg went to her bank, California Federal Bank, FSB, to cash a check made out to her by Smith Barney (SB), an investment services firm. Nolene Showalter, a bank employee, suspected that the check was counterfeit. Showalter called SB and was told that the check was not valid. As she phoned the police, Gary Wood, a bank security officer, contacted SB again and was informed that its earlier statement was "erroneous" and that the check was valid. Meanwhile, a police officer arrived, drew Hagberg away from the teller's window, spread her legs, patted her down, and handcuffed her. The officer searched her purse, asked her whether she had any weapons and whether she was driving a stolen vehicle, and arrested her. Hagberg filed a suit in a California state court against the bank and others, alleging slander. Should the absolute privilege for communications made in judicial or other official proceedings apply to statements made when a citizen contacts the police to report suspected criminal activity? Why or why not? [ Hagberg v. California Federal Bank, FSB, 32 Cal.4th 350, 7 Cal.Rptr.3d 803 (2004)]