Dan Rather’s $70 million lawsuit against CBS Corp. can proceed on a limited basis, a New York appellate judge ruled Monday. The judge threw out part of the suit, but refused to grant a motion to have the rest dismissed.
In the decision, Judicial Hearing Officer Ira Gammerman ruled that the former “CBS Evening News” anchor could sue CBS for breaches of contract and fiduciary responsibility, but not for fraud or tortious interference. Gammerman also dismissed a claim against CBS’s parent company, Viacom Inc., because a 2006 de-merger separated its interests from those of CBS.
Both sides hailed the decision as a victory. Jim Quinn, the lead attorney for CBS, said his client would not appeal. “I consider it a win,” he told reporters. Martin Gold, who represents Rather, said that the case would now be “essentially a slam dunk.”
It was the second time in four months that Gammerman has dismissed parts of the suit while allowing the rest to proceed. In May, he threw out Rather’s claims against three top executives, Viacom Chairman Sumner Redstone, CBS Chief Executive Leslie Moonves, and former President of CBS News Andrew Heyward.
The case is set to go to trial next month, but there could be delays. Rather’s lawyer told the judge that 20 depositions still needed to be conducted, including Redstone’s, and that his team needed more time. He also said that CBS was withholding 3,200 documents from the plaintiff.
The lawsuit, which pits Rather against his old employer, revolves around a September 2004 episode of “60 Minutes II.” In the broadcast, Rather presented documents that purported to show that President Bush had been derelict in his duty as a Texas national guardsman during the Vietnam war, and that his commander had felt pressured to cover it up. When bloggers questioned the documents’ authenticity, CBS commissioned an independent inquiry. It found the broadcast had been inaccurate and unfair. Three producers were fired. CBS executives forced Rather to apologize on air, and removed him as anchor of the “CBS Evening News.” When his contract expired 15 months later, in late 2006, they let him go. He now anchors “Dan Rather Reports” on HDNet.
Rather filed his initial complaint against CBS, Viacom and the three top executives in September 2007. At the time, there was speculation that Rather was trying to embarrass CBS and Viacom, and force secret documents into the public eye. Last year, The New York Observer reported that, back in 2005, a private investigator named Erik T. Rigler had been hired by CBS to aid the inquiry, but his findings were never given to Rather or made part of the official report. Before filing the lawsuit, Rather’s lawyers tried to contact Rigler, but were rebuffed by the CBS legal department.
In his complaint, which was amended to reflect May’s decision, Rather alleges that Redstone tried to curry favor with the Bush administration by having him removed from “60 Minutes II” and “CBS Evening News.” Rather also alleges that CBS executives strung him along until his contract expired by assuring him they would renew it if he kept quiet about the whole affair. As Gold noted after Monday’s hearing, the 15-month stretch during which Rather was mostly off the air was “poison for his reputation.”
Rather also alleges that his contract guaranteed him a certain level of “exposure” and that it stipulated even that CBS increase his air time. Gold said that the contract should have allowed Rather to pursue other work if he was going to be benched for an extended period, but that executives misled him into foregoing other ventures. “He could have double dipped,” Gold said.
Lawyers for CBS counter that Rather’s contract never specified an amount of air time, and that in any case his contract was paid in full. They also point to the fact that Rather claims a “significant financial loss” without being able to specify any out-of-pocket losses. The lawsuit calls for $20 in compensation and $50 million in punitive damages. The two parties are due back in court on Oct. 7.
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Click here for a story about the ruling in the Observer, based on some of my reporting.
There’s been some excellent reporting in the Observer by Felix Gillette, including “Dan Rather’s Last Big Scoop,” “Rather vs. CBS: Contract Dispute Will Continue, But Redstone, Moonves, Heyward Are Off the Hook” and “Would ‘Rathergate’ Make a Good Movie? Hollywood Insiders Working on Screen Adaptation.”