Aric Toll owns as well as manages the Balboa Island Village Inn a restaurant and bar in Newport Beach, California. Anne Leman Owns Island Cottage, a residence across an alley from the Inn. Leman Habitually complained to the authorities about excessive noise as well as the behaviour of the Inn's customers whom she called drunks and whore. Leman denoted to Theresa Toll, Aric's wife, as Madam Whore. Leman told the Inn's bartender Ewa Cook that Cook worked for Satan, was Satan's wife, and was going to have Satan's children. She told the Inn's neighbours that it was a whorehouse with prostitution going on inside as well as that it sold illegal drugs, sold alcohol to minors made sex videos, was involved in child pornography, had Mafia connections, encouraged lesbian activity, and stayed open until 6:00 A.M. Leman as well voiced her complaints to potential customers, as well as the Inn's sales dropped more than 20 percent. The Inn marched a suit in California state court against Leman, asserting defamation and other claims.

1. Are Leman's statements nearly the Inn's owners, customers and activities protected by the U.S. Constitution? Would such statement be protected? In whose favour would the court rule? Why?

2. Did Leman perform unethically in the circumstances of this case? Explain.