D stopped a vehicle driven erratically by P. After the assistance arrived, D placed P under arrest for driving while intoxicated, handcuffed her, and, with the help of another officer, placed her in the back seat of his patrol car. A plastic shield separated the front and back seats. D's car was preceded and followed by two other police cars and was never out of their sight. When P arrived at the jail, her blouse was unbuttoned, one breast was exposed, and her shoes, pantyhose, and underpants were removed. P claimed D had raped her and initially refused to cover herself when requested to do so. P appeared before the Luray Town Council to summarize her version of the events and to file a formal complaint against D. P also issued a prepared written statement to a reporter from the local newspaper, the Page News and Courier. P sued D alleging that D lacked probable cause to arrest her and had used excessive force during her arrest, all in violation of §1983. D counterclaimed under state law for defamation. The jury found for D on P's § 1983 claim. The jury also found in D's favor on the defamation counterclaim, awarding compensatory damages of $5,000.00 and punitive damages of $15,000.00. P moved to set aside the verdict on the grounds that the court lacked subject matter jurisdiction over the counterclaim. D moved for attorney's fees. The district court denied both motions. Both parties appealed.

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