AMERICAN FRAUD and The Tylenol Murders

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The 1986 Tylenol Murder
 
 

 

 
 
 
 
 FDA public information officer William Grigg said in February 1986 that since the seven Tylenol poisoning deaths in 1982, "there had been several incidents in which people were poisoned with Tylenol capsules."
 
J&J executives knew in 1982 that the Tylenol killer exploited a danger specific to capsules - the ease in which they can be opened and the medicine replaced with poison - but they refused to discontinue Tylenol in capsule form. Tylenol capsules were easier and, more importantly, less costly to produce than tablets.
Acetaminophen is not ordinarily amenable to tableting by the same methods as aspirin. These materials have significantly different properties. Crystalline aspirin is easily tableted, since the crystals are quite soft and exhibit good plasticity/elasticity when compacted to tablets. Further, cohesive/adhesive bonding within the aspirin tablet is strong and the aspirin, itself, provides good lubricity to the formula.
 
In contrast, acetaminophen crystals are very hard and brittle and fracture very easily. The crystals have essentially no plasticity/elasticity and can be tableted by the normal aspirin tableting methods only by using high levels of excipients and large crystalline grade acetaminophen.  Furthermore, at least 25% more excipients are required in addition to high levels of lubricant. The large acetaminophen crystals have the disadvantage of being slowly dissolved in the body and require additional tableting aids to increase the rate of dissolution.

 

Had J&J eliminated capsules, many repackagers would have had to purchase new equipment for sealing Tylenol capsules, or for tableting Tylenol. Either change would have increased production costs and negatively affected profit margins for Johnson & Johnson and its customers. Instead of acknowledging that the true tampering risk came from J&J’s use of capsules, CEO James Burke reintroduced Tylenol capsules in November 1982, supposedly guarded by “tamper-resistant” packaging. Johnson & Johnson executives made the choice they always make; profit over safety.

 
Tamper-resistant packaging did nothing to thwart another Tylenol murder in 1986, because just like in 1982, the killer adulterated the capsules before they were bottled and packaged. The tamper-resistant seals on the Tylenol bottle containing the poisoned capsules that killed Diane Elsroth in 1986 had not been broken.
 
Between April 1982 and February 1986, at least ten people died after swallowing Tylenol capsules that had been filled with cyanide.    
 
 
 
 
 
 
 
 
 
 
The Murder and the Cover-up

 
On February 8, 1986, Diane Elsroth died after ingesting two Extra-Strength Tylenol capsules, one containing cyanide, from a bottle that had been purchased at an A&P store in Bronxville, NY. The Bronxville A&P received all of its Tylenol from the same distribution center that handled the Tylenol that was involved in the 1982 Tylenol murders in Chicago.
 
J&J CEO James Burke said that he learned of Elsroth's death at about 4 P.M. on Monday, February 10. He ordered what turned out to be continuous polling of consumers to monitor their fears about, perceptions of and intentions toward all Tylenol products. Johnson & Johnson immediately sent representatives to Yonkers to attempt to learn more and to assist in the investigation. J&J also began conferring by telephone with the FDA and FBI, both in Washington and at the respective field offices. 
 
On February 11, 1986, FDA spokesman William Grigg said the FDA inspected the factory where the pills were made and determined that "there were no indications that it (the contamination) could be the result of the manufacturing. William Grigg went on to say that it was unlikely the drug had been tampered with during manufacturing. ''Everyone involved believes that this is a local situation,'' said Grigg.

 

Dr. Millard Hyland, Westchester County's chief medical examiner, said that the "Cyanide would eat through a gelatin capsule in 8 to 10 days," meaning it had been added since the Tylenol left the plant, and that therefore the poison presumably was placed in the bottles within the last 10 days. 

 

J&J spokesman James Murray said that based on Hyland's finding that the cyanide would have eaten through the capsules, the company feels the tampering "did not take place at the factory." Murray said the cyanide would eat through the Tylenol capsule's gel-based shel "within two weeks."

 

At a February 11 news conference held at Johnson & Johnson headquarters, McNeil president Joseph Chiesa, while standing next to CEO James Burke, said:

''We have conviction'' that none of the poison was put in the capsules by a worker at the plant. He added that cyanide breaks down the gelatin-based capsules and that the deterioration becomes evident ''in less than a month.''

  

Westchester District Attorney Carl Vergari, countering the statements made by Hyland, Chiesa, and Murray, said he had learned from federal authorities that the cyanide-laced Tylenol capsules would not show signs of deterioration in 8 to 10 days; that they may have an indefinite shelf life. 

 

Then, on February 14, federal authorities admitted that the cyanide found in a Tylenol capsule that killed Diane Elsroth could have been put there months ago. "The work we did showed no time restrictions such as were previously reported," said FDA Commissioner Dr. Frank Young.

 

The cyanide laced Tylenol capsules had an indefinite shelf-life, just as Carl Vergari had said. Therefore, the Tylenol capsules could have been poisoned weeks or months earlier. They could have been poisoned at the local distribution center or while sitting in Johnson & Johnson's regional distribution facility in Montgomeryville, PA.

 

 

Contradictions

 

Much of the information made public after the 1986 Tylenol tampering conflicted with the information previously publicized during the 1982 Tylenol murders investigation. Careless statements made by J&J executives and government officials in 1986 contradicted statements they’d made in 1982. Most interesting are the statements made by J&J CEO James Burke during interviews with the press and on national television. Burke, apparently emboldened by his success in covering up facts in the 1982 Tylenol murders investigation, seemed to believe every word he uttered would be treated as gospel by the media and the public. He’d gotten away with his cock-sure attitude in 1982, but each time Burke shot his mouth off in 1986 he revealed a new piece of information that provided another clue to the workings of the Tylenol murders cover-up.

 
 
 
 
 
THE FBI COVER-UP
 

“The bottles were tampered with locally, at the retail store” aspect of the approved theory - the most important component of the cover up - was exposed as a fraud after the 1986 Tylenol murder but then covered up by the FBI.

 

Westchester District Attorney Carl Vergari revealed evidence about the tampering that officials from the FBI, FDA, and J&J did not want publicized.

  

The cornerstone of the approved theory of the Tylenol murders deception ran into trouble when, on February 18, 1986, Carl Vergari held a press conference and reiterated findings revealed that Federal investigators had found no evidence that the triple seals on the bottles of tainted Tylenol had been broken after they left the factory, suggesting that they might have been tampered with there (at the factory).

The two bottles that contained contaminated capsules were sent to the FBI labs to determine “to a reasonable degree of certainty” through microscopic examination “whether the metal foil that’s heat-welded to the top of the bottle has been tampered with after it left the factory.”

 

“And they say in both cases that their laboratory examination reveals that it was not,” he said, ”that these bottles were not tampered with after they left the factory; that, ergo, the contamination was done at some time during the manufacturing process before the seal was placed on it.”

 

“What could be clearer than that?” Vergari said.

 

 

James Burke then appeared on "The Donahue Show" and said:

“We do not have any proof it didn’t happen in the plant or the warehouse, but all logic tells us it didn’t.”

Burke went on to note the ''considerable amount of confusion'' in the case that may have led to an opinion held by Carl Vergari, the Westchester County District Attorney, who had said he believes the pills were probably adulterated at the manufacturing plants.

As Burke certainly knew, there was no confusion on the part of Vergari. If there was any confusion at all, it was the result of the deceptive statements made by Burke, Ahlerich, and FDA Commissioner Frank Young. The all out marketing blitz by J&J and the FDA to deceive the public had not changed the fact that Vergari had spilled the beans. The packaging on the Tylenol bottles had not been tampered with. Evidence from the FBI's own inspection had confirmed this fact.

Vergari’s public disclosure of the FBI’s findings created a real problem for proponents of the “approved theory.” That problem needed to be rectified. So the FBI did what any self-respecting government agency would do under similar circumstances. It ordered a bogus second inspection of the tamper-resistant packaging and then fabricated new forensic findings that aligned with the approved theory. For this second inspection, the FBI claimed to have used a sophisticated investigatory technique; the mechanism for which they refused to disclose to the public. In reality, the only tools involved in this second inspection were the pen and paper that the FBI used to write its official press release.

FBI spokesperson, Milt Ahlerich, held a news conference on February 26, 1982 “because of the intense national interest in the case.” He made only a brief appearance to read the official FBI statement:

"Previously undetected signs of tampering have now been discovered using sophisticated scientific examinations. Our examinations have further determined it was possible to invade the bottles after packaging was complete without detection through conventional means of examination."

Ahlerich provided no explanation of how this “inspection” was conducted and supplied no proof that the packaging had been tampered with or how it could have been done. But the official FBI statement, which in fact revealed no new information at all, did conform to the approved theory. Ahlerich refused to answer any questions, but several “un-named authorities” attending the news conference confirmed that the Bureau’s findings applied to both bottles of cyanide-laced Tylenol capsules.

 

 

 

McNeil Consumer Products Co. - Fort Washington, PA

 

 

 

 

 

Officials Inspect J&J's Manufacturing Facility

 

On February 18, 1986, one day after officials had toured the McNeil plants in Fort Washington and Montgomeryville, Carl Vergari said the tour by a team of investigators suggested additional broad areas of inquiries.” Vergari added that the case of the poisoned Extra-Strength Tylenol capsules is "still wide open," but refused to elaborate on the inspection tour of the manufacturing plant on Monday. "We still haven't eliminated anything," Vergari said. "We haven't had evidence to exclude tampering at the factory."

 

Shortly after Vergari determined there were still "broad areas of inquiries" at the factory, and it appeared he would intensify his investigation of McNeil Consumer Products - FBI Director Milt Ahlerich came out with an official FBI statement designed to convince the public that the Tylenol bottles had been tampered with at the local retail stores, when in fact the tamperings had actually occurred before the Tylenol capsules had been bottled and packaged.

 

The FBI had reversed its initial findings regarding the tamper-resistant packaging, and accordingly, there would be no need for upstart Carl Vergari to pursue his investigation of Johnson & Johnson and the Tylenol distribution network. Carl Vergari was never heard from again with regard to the 1986 Tylenol murder investigation.

 

 

 

 

Johnson & Johnson Regional Distribution Center - Montgomeryville, PA
 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

News Articles

 

 

OFFICIALS SAY FATAL TAMPERING OF TYLENOL WAS ISOLATED CASE

February 11, 1986

 

Federal officials said it was unlikely that the drug, which is produced by a subsidiary of Johnson & Johnson, had been tampered with during manufacturing. ''Everyone involved believes that this is a local situation,'' said William Griggs, a spokesman for the Federal Food and Drug Administration.

 

He said Federal officials based this opinion on two main elements. First, he said, the bottle was part of a lot of 200,000 units manufactured in May 1985; second, the lot was shipped for sale in August and, because it is a popular item, most of the lot's units were likely sold within a month. Thus, he said, if other bottles in the shipment had been tainted, officials would probably have known about it long before this week.

 

Extra-Strength Tylenol capsules are sold in packages labeled ''safety sealed.'' The outer carton is sealed with what industry experts call a ''hot-melt'' adhesive. The cardboard is thin gauge so that the flaps, sealed with the adhesive, cannot be opened normally without ripping the box.

 

The cap is sealed to the lip of the bottle with a plastic band that is ''heat shrunk'' for a tight fit and must be torn away. Underneath the cap, an aluminum foil seal is laminated to the lip of the container.

 
 
 

February 14, 1986

 

NEW BRUNSWICK, N.J. (UPI) — The maker of Tylenol refuses to speculate on how a poisoner could slip cyanide into capsules of the popular painkiller without breaking the three seals that protect each package.

 

Johnson & Johnson Co., in the wake of the discovery Thursday of a second tainted bottle of Tylenol in suburban New York, warned all consumers to immediately stop using the capsule form of the product. The nationwide warning, issued by Chairman James Burke through a spokesman, came within minutes of the health products company learning from federal investigators Thursday evening of the newly discovered tampering.

 

"All we have said in the past is that the packaging is tamper-resistant or tamper-evident," spokesman Robert Kniffin said from corporate headquarters in New Brunswick. "We never said it is tamper-proof."

 

Kniffin said Johnson & Johnson had no comment on how cyanide might be introduced into capsules in unopened packages protected by glued flaps on the boxes. Each bottle also is protected with a tight plastic seal over the cap and neck and a durable foil seal directly over the mouth and underneath the cap.

 

The three-layered protection is three times what was required by the Food and Drug Administration after the fatal 1982 Chicago Tylenol poisonings, Johnson & Johnson spokesman Bob Andrews said. FDA scientists investigating the death of Diane Eisroth, 23, of Peekskill, N.Y., who took two capsules of the over-the-counter drug made the new discovery. FDA Commissioner Frank Young said the outside seal was unbroken on the bottle that had been confirmed as tainted.

 
 

 

 

FEW LEADS AND NO SUSPECTS FOUND IN TYLENOL DEATH IN WESTCHESTER

 

By EDWARD HUDSON, SPECIAL TO THE NEW YORK TIMES

March 23, 1986

A spokesman for the Federal Food and Drug Administration, William Grigg, said this week that his agency had ''essentially completed'' its examination of Tylenol capsules taken from stores in Westchester and other areas around the country.

 

Mr. Grigg said the agency had used chemical analysis and X-rays to look for tainted capsules. The X-ray system, which he said ''can spot something without even opening the package,'' was developed after seven people died in the Chicago area several years ago from cyanide-laced Tylenol capsules.

 

Last month, Johnson & Johnson announced it was discontinuing the manufacture and sale of all its over-the-counter medications in capsule form.

 

The Federal Bureau of Investigation said later that an analysis of the two bottles that contained cyanide-laced capsules showed the bottles had been tampered with, but it did not say how.

According to Mr. Grigg, complaints of tampering involving many kinds of products have risen sharply since the Bronxville Tylenol case, but ''so far as we're aware,'' he said, none involved serious injury.
 
 
 
 
 
 

Illinois police keep close tabs on 3 in tainted Tylenol probe

 

ANDREW H. MALCOLM New York Times

SUN 02/23/1986

 

CHICAGO - The Illinois state police say they are closely following three leads in the continuing investigation into the deaths of seven residents of the Chicago area from cyanide-laced Tylenol capsules more than three years ago.

A spokesman in Springfield, Ill., acknowledged three "active leads, three individuals of continuing interest to us." The spokesman, Bob Fletcher, declined to elaborate, but he said no arrests were expected soon.

Renewed attention has been focused on the poisonings since a similar Tylenol capsule poisoning of a woman last week in Bronxville, N.Y., Johnson & Johnson, the parent company of Tylenol's maker, has halted further production of all nonprescription capsules.

Using computers and tips from 50 states and 12 foreign countries, the Illinois police amassed thousands of pieces of information, which are constantly being expanded and cross-referenced by computer for new leads. Besides the 35 state agents assigned at the height of the investigation, detectives from two counties, five municipalities and the Federal Bureau of Investigation worked on the case, which remains open although no agents are now on the case full time.

Fletcher said Illinois had made available to New York all its investigative material, more than 6,000 leads, which he said filled six filing cabinets. "A lead," the spokesman said, "is a person, a license plate, a list of disgruntled Johnson & Johnson employees, Tylenol's shippers, people with access to that poison."

"The New York case," Fletcher said, "has created renewed interest in the Illinois murders, but so far it hasn't furthered our own investigation any."

Last week Illinois stores were ordered to remove all Tylenol capsules. Dr. Bernard J. Turnock, director of the State Department of Public Health, said people in the state "quite rightfully are more sensitive because of the Tylenol tragedy here in 1982."

A Health Department spokesman, Paul O'Connor, said no traces of cyanide were found in the 60 lots sampled.

However, the Illinois poisonings, which occurred in scattered families here and in four suburbs from Sept. 29 to Oct. 1, 1982, "spawned a virtual epidemic of similar cases around the country," said Fletcher.

Two early suspects, James W. Lewis and Roger Arnold, are both in prison on other charges. Lewis, who sought $1 million from Tylenol's maker, his wife's former employer, is serving a 10-year term for extortion. Arnold, a former employee of Jewel Food and Drug Stores, where some of the 1982 poisoned capsules were purchased, has been imprisoned for the June 18, 1983, slaying of a man he believed had identified him to the police as a potential Tylenol suspect.

"This is an unusually tough case," said Fletcher, "There's little physical evidence. The victims and the tainted bottles show no pattern. And the motive is unclear.

"Of course, the killer could have been operating on a completely rational plan that we simply don't perceive yet. It's enormously frustrating."

The case is also complicated because of the broad accessibility of cyanide; it is widely used in manufacturing and treatment of ink, steel, finished paper and jewelry and in agriculture.

As part of the Illinois investigation, the authorities compiled a profile of the murderer describing him as a quiet, reserved, middle-aged male, probably Caucasian and extremely intelligent although withdrawn. "However," Fletcher added, "that probably narrows it down to about a quarter of the American population."

 
 
 
 
 
Johnson & Johnson loaded Doctor's Offices with short-dated Tylenol samples shortly after the 1986 Tylenol murder.
 
 
Devries v. McNeil Consumer Products Co.
New Jersey Superior Court, Appellate Division

Decided: July 25, 1991.

 

NANCY L. DEVRIES, PLAINTIFF-APPELLANT,

v.

MCNEIL CONSUMER PRODUCTS CO. DEFENDANT-RESPONDENT, AND JOHNSON & JOHNSON, INC., DEFENDANT

 

On appeal from Superior Court of New Jersey, Law Division, Middlesex County.

Julian R. Birnbaum, admitted pro hac vice, argued the cause for appellant (Karen Honeycutt, attorney).

Francis X. Dee argued the cause for respondent (Carpenter, Bennett & Morrissey, attorneys).

Michels, Gruccio and D'Annunzio. The opinion of the court was delivered by D'Annunzio, J.A.D.

D'annunzio Plaintiff, Nancy L. DeVries, commenced this action against her former employer, McNeil Consumer Products Co. (McNeil), and its parent, Johnson & Johnson, Inc. In her complaint she asserted a cause of action for wrongful discharge under the principles announced in Pierce v. Ortho Pharmaceutical Corp., 84 N.J. 58, 417 A.2d 505 (1980). DeVries alleged that McNeil had discharged her "in violation of the public policy supporting the doctrine of equitable estoppel." The complaint also alleged, in the third count, that defendants "did falsely and maliciously accuse and criticize DeVries in her professional capacity and caused it to be believed that she was not competently discharging her duties and that she was engaging in unprofessional and unethical practices," and that this constituted defamation per se.

Plaintiff now appeals from summary judgments entered on all counts of the complaint in favor of defendant, McNeil.*fn1

DeVries was employed by McNeil as a sales representative, sometimes referred to in the industry as a detail person. In that capacity she called on physicians to acquaint them with McNeil's products and to establish and promote good will on behalf of her employer. The ultimate objective of this exercise was to motivate physicians to prescribe or recommend McNeil products. One of those products was Extra Strength Tylenol caplets. Plaintiff worked for McNeil from 1983 until her discharge in 1986.

Plaintiff's discharge arose out of a confrontation with one of her assigned physicians, a Dr. LaPoff. The controversy arose when DeVries left samples of Extra Strength Tylenol caplets with Dr. LaPoff's office. Those samples contained expiration dates. At the time DeVries left those samples at LaPoff's office the dates either had expired or were close to expiring. DeVries contends that the short-dated samples were left at physicians' offices at McNeil's instructions. Pursuant to those instructions, she informed the doctors' staffs that they were not to be given to patients because they were short dated, but that they were being left for the personal use of the doctors and their staffs. According to DeVries, she also explained to the staffs that caplets used beyond the expiration date were safe and that they merely began to lose effectiveness due to age.

To provide the full flavor of DeVries' version of her instructions from McNeil, we quote from a handwritten activities report prepared by plaintiff on September 9, 1986, approximately five months after she left the caplets at LaPoff's office:

During the last week in March the company (McNeill) sent representatives a huge case of EST caplet (8's) expiring in April 1986 with the instruction to be given to office staff with explicit instructions to tell the staff it was for them only and perfectly safe. This I did in every office I went to.

In the beginning of May I dropped off said samples with instructions for staff on safety and for staff usage only. During the first week in June a Dr. Steven LaPoff at the Immediacenter, 1358 Broad Street in Clifton, screaming hysterically over the telephone -- irate that I left "out of date medication to his staff."

In her deposition testimony, DeVries stated:

The letter that I got at the end of March said in a few weeks you would receive a huge shipment of extra strength Tylenol samples that will be outdated at the end of April. I received that shipment probably the middle of April.

Unfortunately, no one has been able to find a copy of the written instructions or letter referred to by plaintiff.

Apparently Dr. LaPoff's office gave some of the outdated Tylenol to patients who, noticing the expired dates, complained to Dr. LaPoff. One of LaPoff's reactions was to call DeVries and berate her in somewhat intemperate language. Several months later, DeVries was in the office of Dr. Basista, one of Dr. LaPoff's associates in practice, when LaPoff again confronted and criticized her. It is uncontroverted that as plaintiff left his office, with LaPoff continuing to berate her, plaintiff told LaPoff to "grow up."

The office confrontation resulted in a letter from LaPoff to McNeil dated September 14, 1986:

I would like to bring to your attention the unprofessional and unethical practices of your representative Nancy DeVries.

Several months ago, Ms. DeVries knowingly distributed expired samples of Tylenol. When confronted, Ms. DeVries justified this action as appropriate. She stated that the samples were meant to be given to our staff. Unaware that these samples had past expiration dates, several had been given to patients unknowingly. We were placed in a very uncomfortable situation having to explain this action when patients called us concerning the expired product. I subsequently spoke to Ms. DeVries and asked her never to return to this office. Last week, Ms. DeVries returned to Immedicenter to detail us. She offered no apology and had no insight on the levity of her past actions. I once again asked her to leave. Her retort, within earshot of patients and staff was that I "should grow up" and that I was "immature."

Needless to say, my partners and I were appalled over this action by a McNeil representative. Knowingly and willingly giving expired samples of Tylenol is a travesty, especially in light of the past problems McNeil (and parent company Johnson & Johnson) have experienced. In addition, berating a physician with verbal abuse within full view of his patients and staff is disrespectful and downright intolerable.

Immedicenter is an ambulatory care center and it sees approximately 30,000 patients a year. There is great potential to recommend a full line of McNeil products. However, my partners and I will be actively prescribing alternatives to these products unless a satisfactory remedy to this situation is reached. We recommend that Ms. DeVries be dismissed from her position as her actions discredit all the integrity that McNeil has tried to attain. We certainly would never allow her in this office or any future satellite offices. In addition, we will not see any McNeil representative should this situation just be allowed to rest.

Val Brunell, McNeil's national professional sales manager, responded by letter dated September 25, 1986. Brunell apologized to Dr. LaPoff and informed him that the district manager, Mr. Carmen Simone, would contact LaPoff "so that we have a full understanding of the problem and can take appropriate corrective action." Simone called Dr. LaPoff. We find it necessary to quote extensively from Simone's deposition regarding his conversation with Dr. LaPoff. Simone testified that LaPoff said, does your company have a policy of giving out expired samples, and I said, no, sir, we do not.

Q. So you told LaPoff, no, that was not a company policy. Is that right?

A. Yes, sir, I did.

Q. What else did he ask you?

A. He said, well, if it is, then it must be Mrs. DeVries' fault. He proceeded to tell me what she was doing. She had come in their office, gave -- I think it was vials of Extra Strength as samples for his -- he either said nurses to use or I think he said nurses to use or staff, because he said he had a large staff, and somehow those samples got to the patients and the patients -- I don't know how many he said, if it was one or more -- said they came back in the office and called him up and threatened to sue him because they said Dr. LaPoff, how dare you give this stuff out, it expired and it's no good, and Dr. LaPoff was very very angry. I mean that -- I was trying to calm him down on the phone, and I was doing a good job, because he says, it's about time I get someone that knows how to handle the situation.

He said, well, if it wasn't the company's fault, it's Nancy's fault. Let me tell you other things that she's done, this happened awhile ago, and she had the audacity to come back in my office. She said we sat her down and I was telling her off and Nancy got up, walked out on me and turned around in front of my patients in the waiting room and shouted at me. He might have said what -- he might have told me what she said, but I don't recall that or what did she shout. He says I was completely embarrassed that -- to have that done in front of my patients, and he was -- he said I want her -- he says, unless you fire her, we will convert all our Tylenol usage to your competitor, and I believe he mentioned Advil, to be exact. He said I will stop using Tylenol and Extra Strength altogether and we will convert and I will recommend only your competition if you don't terminate her. I believe this woman should be terminated, and if someone does not get back to me with that -- with the facts that she has been terminated, I will do that and. . . . [Emphasis added].

Simone informed Brunnell of his conversation with LaPoff, and Brunnell ordered Simone to fire DeVries. According to Simone, Brunnell told him to attribute her firing to poor human relations skills and poor attitude. Those reasons were placed on DeVries' termination report as the official reasons for her termination. However, according to Simone, Brunnell, upon ordering Simone to fire DeVries, instructed Simone to "tell Dr. LaPoff that we complied with his wishes." Simone also testified that Brunnell said, "I guess the moral of the story and the lesson to be learned is we shouldn't send out samples like this again."

Simone carried out his orders and terminated DeVries.

We first address the summary judgment on the defamation count. The trial court expressed its ruling in three sentences:

In regard to the defamation issue, there is no specific affirmative defamatory statement as a matter of law. The defamatory statement is an indication or inference arising from single conversation between LaPoff and Simone. I'm not satisfied that the inference from that language rises to defamation.

The threshold issue in a defamation action is whether the statements complained of are reasonably susceptible of a defamatory meaning. Decker v. Princeton Packet, 116 N.J. 418, 424, 561 A.2d 1122 (1989); Romaine v. Kallinger, 109 N.J. 282, 290, 537 A.2d 284 (1988). This threshold issue is a question of law for the court. If a "statement is susceptible of one meaning only, and that meaning is defamatory, the statement is libelous as a matter of law." Romaine, supra, 109 N.J. at 290, 537 A.2d 284. "Conversely, if the statement is susceptible of only a non-defamatory meaning, it cannot be considered libelous, justifying dismissing the action." Ibid. "However, in cases where the statement is capable of being assigned more than one meaning, one of which is defamatory and another not, the question of whether its content is defamatory is one that must be resolved by the trier of fact." Id. at 290-291, 537 A.2d 284. Accord Decker, supra, 116 N.J. at 425, 561 A.2d 1122.

In addressing this threshold issue, "the court must evaluate the criticized language 'according to the fair and natural meaning which it would be given by persons of ordinary intelligence.'" (quoting Herrmann v. Newark Morning Ledger Co., 48 N.J. Super. 420, 431, 138 A.2d 61 (App.Div.), aff'd on rehearing, 49 N.J. Super. 551, 140 A.2d 529 (App.Div.1958)). In evaluating the language for defamatory content, "the court must view the publication as a whole and consider particularly the context in which the statement appears." Romaine, supra, 109 N.J. at 290, 537 A.2d 284.

Certain categories of statements are defamatory as a matter of law. For example, statements alleging that the subject committed a crime are defamatory per se. Lawrence v. Bauer Publishing & Printing Ltd., 89 N.J. 451, 459, 446 A.2d 469 (1982); Sokoloy v. Edlin, 65 N.J. Super. 112, 121, 167 A.2d 211 (App.Div.1961). Similarly, "one who falsely and without a privilege to do so publishes a slander which ascribes to another conduct, characteristics or a condition incompatible with the proper conduct of his lawful business, trade, or profession is liable for slander per se." Sokoloy, supra, 65 N.J. Super. at 121-122, 167 A.2d 211. See Mick v. American Dental Ass'n, 49 N.J. Super. 262, 274, 139 A.2d 570 (App.Div.1958) (words imputing to a dentist lack of professional information); Herrmann v. Newark Morning Ledger Co., 48 N.J. Super. 420, 430, 138 A.2d 61 (App.Div.1958), , aff'd on rehearing, 49 N.J. Super. 551, 140 A.2d 529 (App.Div.1958).

We are satisfied that a jury could conclude that the exchange between Simone and LaPoff, particularly Simone's denial that it was McNeil's policy to distribute expired samples, when taken in context had the capacity to impugn DeVries' professionalism in the health care industry.*fn2 LaPoff, in his September 14, 1986 letter accused DeVries of knowingly distributing expired samples. Simone's failure to explain the circumstances and his denial that it was McNeil's policy to do such a thing, constituted an accusation by McNeil that DeVries had acted unilaterally. That is how LaPoff interpreted his exchange with Simone. See Restatement (Second) of Torts ? 563 (1976) ("The meaning of a communication is that which the recipient correctly, or mistakenly but reasonably, understands that it was intended to express"). As previously indicated, LaPoff told Simone, "Well, if it wasn't the company's fault, it was Nancy's fault."

We reject, therefore, McNeil's contention that its employees made no defamatory communication to anyone regarding DeVries but merely failed to dispute LaPoff's accusations. See Restatement, supra, ? 559, comment a, at 156 ("The word 'communication' is used to denote the fact that one person has brought an idea to the perception of another."); see also Jimenez-Nieves v. United States, 682 F.2d 1, 6 (1st Cir.1982) (dishonoring checks negotiated by plaintiff implied defamatory statements about him).

Moreover, by acceding to LaPoff's request that McNeil terminate DeVries, McNeil confirmed the impression it had created, that DeVries had acted unilaterally without McNeil's authority or knowledge and against company policy. A jury could find that McNeil chose to suppress the true facts to mollify a customer at the expense of DeVries' reputation.

McNeil contends that Simone's statement to LaPoff that it was not McNeil's policy to distribute expired Tylenol was true and, therefore, not actionable. See Lawrence v. Bauer Publishing & Printing Ltd, supra, 89 N.J. at 460, 446 A.2d 469. According to McNeil, it has no policy authorizing the distribution of expired samples. On the contrary, it has a written policy contained in a publication entitled McNeil Consumer Products Company Professional Sales Representative's Manual. It states:

 

Expired Products

Products which have passed the expiration date must be incinerated or poured down a drain.

Although the trial court did not rule on McNeil's truth defense in granting summary judgment, we deem it appropriate to analyze it for the trial court's benefit on remand. There is little doubt that DeVries received a communication from her employer regarding a shipment of short dated Tylenol. According to DeVries, she was ordered to distribute the expiring product to physicians and their staff with instructions that they were for personal use only and were not to be given to patients. McNeil's contention is that once the expiration date was reached, DeVries should have destroyed the remaining product pursuant to the instruction in its sales manual. Therefore, argues McNeil, distribution by DeVries after the April 30 expiration date was a unilateral act by DeVries in violation of company policy.

After a trial, a jury may determine that McNeil's contention is valid. However, the evidence would also suggest that, in light of the surrounding circumstances, the instruction superceded the manual. DeVries serviced over 200 physicians. The timing of DeVries' receipt of the instructions and the shipment may have reasonably suggested to DeVries that the originator of the instruction was aware that not all of the product would be distributed before the expiration date and that she was impliedly authorized to distribute the Tylenol after expiration, given the fact that the product was safe and was not to be given to patients.

Validity of the truth defense does not turn completely on whether McNeil had a written policy regarding expired product in its manual. The issue is whether DeVries exceeded her authority and acted unilaterally in distributing the expired product, for that is the sting of McNeil's communication with LaPoff. See Lawrence, supra, 89 N.J. at 460, 446 A.2d 469 ("For the defense to apply, however, the truth must be as broad as the defamatory imputation or 'sting' of the statement.").

For the same reason, McNeil cannot preserve the summary judgment by relying on a qualified privilege. McNeil contends that it enjoyed a qualified privilege because it had an interest in the subject and pursuant to that interest it made a statement to a person with a corresponding interest. See Jorgensen v. Pennsylvania Railroad Co., 25 N.J. 541, 564, 138 A.2d 24 (1958) (quoting Rothholz v. Dunkle, 53 N.J.L. 438, 440, 22 A. 193 (E. & A.1891)). However, even if the privilege is applicable, an issue not reached by the trial judge, it may be lost by abuse. See Bainhauer v. Manoukian, 215 N.J. Super. 9, 42-43, 520 A.2d 1154 (App.Div.1987). Whether McNeil abused the privilege is a jury question. Erickson v. Marsh & McLennan Co., 117 N.J. 539, 565-567, 569 A.2d 793 (1990); Bainhauer, supra, 215 N.J. Super. at 40, 520 A.2d 1154. "[T]he privilege is lost if the speaker knows the matter is false or acts in reckless disregard of its falsity." Bainhauer, supra, 215 N.J. Super. at 42, 520 A.2d 1154. Thus, if the jury finds that McNeil created the false impression that DeVries acted unilaterally, and that McNeil knew that the impression it created was false or acted in reckless disregard of its falsity, then the qualified privilege would not protect McNeil.*fn3

We reverse the summary judgment in favor of defendant McNeil on the third count of the complaint.

We affirm, however, the judgment in favor of defendant on plaintiff's cause of action under Pierce v. Ortho Pharmaceutical Corp., 84 N.J. 58, 417 A.2d 505 (1980).

We recently addressed Pierce and its boundaries in Hennessey v. Coastal Eagle Point Oil Company, 247 N.J. Super. 297, 303-304, 589 A.2d 170 (App.Div.1991), where we stated:

In Pierce, the New Jersey Supreme Court recognized that an employee at will has a cause of action for wrongful discharge if "the discharge is contrary to a clear mandate of public policy." Pierce, supra, 84 N.J. at 72, 417 A.2d 505. Although Pierce recognized the cause of action, it affirmed a summary judgment for the employer. Id. at 76, 417 A.2d 505. On the record before it, the Court found that plaintiff, a medical doctor engaged in pharmaceutical research, merely had become involved in "a difference in medical opinion" with her corporate supervisors regarding drug research which was subject to FDA approval and control, and, therefore, it found no violation of public policy in her termination. Id. at 75-76, 417 A.2d 505.

The Pierce cause of action is not unique to New Jersey. Other jurisdictions had recognized a cause of action for discharges violative of public policy, and they were discussed in the Pierce opinion. Id. at 67-70, 417 A.2d 505. In Pierce, the Court stated "[t]he sources of public policy include legislation; administrative rules, regulations or decisions; and judicial decisions," that "[i]n certain instances, a professional code of ethics may contain an expression of public policy." Id. at 72, 417 A.2d 505.

Recently, New Jersey courts have addressed the application of Pierce. In Velantzas v. Colgate-Palmolive Co., 109 N.J. 189, 536 A.2d 237 (1988), the plaintiff alleged that she had been discharged in retaliation for her attempts to determine whether gender discrimination had barred her advancement. Id. at 192, 536 A.2d 237. The Court held that this allegation, if true, would constitute a violation of the public policy established by the Legislature when it adopted New Jersey's Law Against Discrimination. Id. at 192-193, 536 A.2d 237; see N.J.S.A. 10:5-1 et seq.

In Cerracchio v. Alden Leeds, Inc., 223 N.J. Super. 435, 538 A.2d 1292 (App.Div.1988), we held that a retaliatory discharge for having filed a worker's compensation claim supported a civil action for damages, in addition to the statutory remedies of reinstatement, back pay and civil penalty. Id. at 442-443, 538 A.2d 1292; see N.J.S.A. 39:15-39.1 and 39.2. We also held that discharge for having filed a complaint with the Occupational Safety and Health Administration was actionable under Pierce. Id. at 445-446, 538 A.2d 1292. Accord Lepore v. National Tool and Mfg. Co., 224 N.J. Super. 463, 470, 540 A.2d 1296 (App.Div.1988), aff'd, 115 N.J. 226, 557 A.2d 1371 (1989), cert denied, [ ] U.S. [ ], 110 S. Ct. 366, 107 L. Ed. 2d 353 (1989).

On the other hand, we have held Pierce to be unavailable where discharge resulted from disputes which were internal and implicated only private interests. In House v. Carter-Wallace, Inc., 232 N.J. Super. 42, 556 A.2d 353 (App.Div.), certif. denied, 117 N.J. 154, 564 A.2d 874 (1989), plaintiff alleged that he had been terminated because he had complained to his supervisor about the shipment of a product he deemed to be contaminated. We affirmed a summary judgment in favor of the employer, holding that the mere voicing of opposition to corporate policy provides an insufficient foundation for assertion of a Pierce claim. Id. at 49, 556 A.2d 353.

We held in Schwartz v. Leasametric, Inc., 224 N.J. Super. 21, 30, 539 A.2d 744 (App.Div.1988), that termination of an employee to avoid paying commissions did not violate a clear mandate of public policy. We stated that "a cause of action under Pierce has been recognized if the firing was in retaliation for an employee's refusal to commit an act which would violate a statute or for assertion of a right protected by legislation, or for firings which were 'invidiously discriminatory.'" Id. at 30, 539 A.2d 744 (citing Citizens State Bank of N.J. v. Libertelli, 215 N.J. Super. 190, 195, 521 A.2d 867 (App.Div.1987)).

In Alexander v. Kay Finlay Jewelers, 208 N.J. Super. 503, 508, 506 A.2d 379 (App.Div.), certif. denied, 104 N.J. 466, 517 A.2d 449 (1986), we held that in the absence of a statute or regulation prohibiting discharge in retaliation for a civil suit against the employer arising out of a salary dispute, there was no Pierce cause of action. We noted that "the dispute giving rise to the termination of plaintiff's employment involved a matter having no significance beyond the private interests of plaintiff and defendant." Id. at 508, 506 A.2d 379.

The distinction between personal and public interests guided this court in Warthen v. Toms River Community Mem. Hosp., 199 N.J. Super. 18, 488 A.2d 229 (App.Div.), certif. denied, 101 N.J. 255, 501 A.2d 926 (1985). Plaintiff, a nurse, had refused to dialyze a terminally ill double amputee because of her moral and philosophical objection to performing the procedure under those circumstances. Id. at 21, 488 A.2d 229. She was discharged. Although plaintiff based her refusal on an ethical code for nurses, we held that plaintiff was motivated by her personal morals, precluding application of Pierce. Id. at 28, 488 A.2d 229. We observed that "[b]y refusing to perform the procedure she may have eased her own conscience, but she neither benefited the society-at-large, the patient nor the patient's family. Id. at 28-29, 488 A.2d 229.

We conclude that DeVries' discharge did not violate a clear mandate of public policy. Although it may have been unfair, it implicated only the private interests of the parties. DeVries reinstatement or an award of damages to her for wrongful discharge would not further any public interest or serve to vindicate any identifiable public policy.

Plaintiff relies on the principle of equitable estoppel as the public policy McNeil violated. In support of her contention, plaintiff cites a trial court decision, Crowell v. Transamerica Delaval, Inc., 206 N.J. Super. 298, 502 A.2d 573 (Law Div.1984). The context of plaintiff's discharge in Crowell resembled the circumstances in the present case. The Crowell court characterized the circumstances in the following terms:

The plaintiff here was led by his supervisor to believe that the manufacturing defect which he ignored was one that the company invited him to ignore. Promptly thereafter Transamerica fired him for accepting its invitation. That conduct is unconscionable. It violates public policy and creates a cause of action in contract, tort or both.

Id. at 306, 502 A.2d 573.

Based on those facts the trial court ruled that the principle of equitable estoppel applied and that "[a]ny conceivable definition of 'public policy' as that term is used in Pierce, would have to embrace the concept [of equitable estoppel]." Ibid.

We disagree with Crowell and hereby disapprove of it. Pierce recognized a limited exception to the right of an employer to discharge an at will employee. Pierce, supra, 84 N.J. at 73, 417 A.2d 505 ("If an employee does not point to a clear expression of public policy, the court can grant a motion to dismiss or for summary judgment"). Despite attachment of the equitable estoppel label, the discharge in Crowell, though unfair, like DeVries discharge, involved private, not public, interests. Cf. Erickson, supra, 117 N.J. at 560, 569 A.2d 793 (an employer has an absolute right to discharge an 'at-will' employee even if that employee has retained a lawyer to protest the employer's action -- provided only that the employer not violate any clear mandate of public policy.").

The summary judgment on counts one and two are affirmed; the summary judgment on count three is reversed and the matter is remanded for further proceedings.

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  Opinion Footnotes 

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 *fn1 Plaintiff's notice of appeal limited the appeal to "the order granting summary judgment to McNeil Consumer Products Co." Accordingly the judgment in favor of defendant Johnson & Johnson, Inc. is not before us.

*fn2 DeVries also has a nursing degree.

*fn3 If it is determined that McNeil enjoyed a qualified privilege, then plaintiff must establish its abuse by clear and convincing evidence. Erickson, supra, 117 N.J. at 565, 569 A.2d 793.