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P and Ds were active participants in a conservative Christian community. P is a high school teacher, lecturer, and writer. P and D jointly created a corporation to further business ideas related to their common religious outlook. Over time, the relationship between the parties deteriorated resulting in harassment and verbal accusations. Ds told the school superintendent that: (1) P had tried to establish a homosexual relationship with Samantha; (2) P had 'proposed marriage' to Samantha; and (3) P had in the past been discharged from a teaching position. P sued for defamation action. The jury returned a verdict in favor of P and awarded $1,000 in actual damages and $26,000 in special damages. Ds appealed.

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