Commercial Litigation Update

The Second Circuit Court of Appeals has once again revived Sarah Palin’s longstanding defamation suit against The New York Times. The Second Circuit’s opinion highlights important procedural and substantive issues in defamation actions involving public figures, particularly in the current polarized media environment.

Palin’s lawsuit, which we previously wrote about here, relates to a 2017 Times editorial that incorrectly linked a political ad from the 2008 Republican vice presidential candidate and former governor of Alaska to a 2011 mass shooting in Arizona that killed six people and injured 13 more, including Congresswoman Gabby Giffords. After an initial dismissal that was reversed on appeal, Palin’s case proceeded to trial in February 2022.

During jury deliberations, the District Court Judge announced in open court that he believed Palin had failed to produce sufficient evidence of actual malice, and, for that reason, would grant judgment in favor of the Times. However, the judge allowed the jury to continue deliberations and the jury subsequently returned a verdict for the Times. The court later revealed in a public filing that members of the jury had learned about the judge’s decision to dismiss the case during deliberations after receiving push notifications on their smartphones. This unusual procedural sequence, compounded by errors during the trial, led the Second Circuit to vacate the judgment and order a retrial, which is scheduled to begin on April 14, 2025.

New episode of our video podcast, Speaking of Litigation: As the spotlight on high-profile judgments intensifies, terms such as “libel,” “slander,” and “defamation” permeate public discourse.

Former U.S. presidents, A-list celebrities, and even college professors and local business owners face the specter of defamatory statements broadcast and scrutinized worldwide. But what lies beneath the surface of these headline-grabbing lawsuits?

Join us on Speaking of Litigation as Epstein Becker Green litigators Jim Flynn, Teddy McCormick, and Lauri Rasnick dissect the intricate legal maneuvers deployed in defamation trials. From the realm of business to the intricacies of employment law, this episode offers a deep dive into the strategies employed when reputations are on the line.

Searching the internet for “AI and litigation” reveals tons of results about how AI will either replace lawyers or transform the legal profession. These results are unsurprising. Since the early 2010s, articles focusing on the potential impact AI may have on lawyers have popped up every few months. But these results miss the bigger and more important picture, which is that AI likely will spawn a myriad of litigation stemming from its use. This litigation will create the rise of AI lawyers who specialize in the complexities of AI.

In fact, this year we are already seeing the rise of AI lawyers as a handful of lawsuits surrounding AI have been filed. Below is a summary of current proceedings that have been filed this year and where they stand.

Public figures are fighting back against fake news.

In the most recent headline from the world of celebrity defamation cases, E. Jean Carroll is suing former President Trump for statements he made after she accused him of sexual assault. In a 2019 book and excerpt in New York magazine, Carroll, a longtime advice columnist for Elle magazine, accused Trump of sexual assault in the mid-1990s. Trump responded that Carroll was “totally lying” and not his “type.” Carroll sued Trump for defamation, claiming his statements had harmed her reputation. But Carroll—like all public figure defamation plaintiffs—has an uphill battle before her. To succeed, Carroll will have to prove that Trump’s statements were false, and—because Carroll is a public figure—she will also have to show that Trump acted with “actual malice.” The actual malice standard often proves to be too high a threshold for most public figures to cross, and most cases are lost on that prong—regardless of whether the statement was false. In fact, Johnny Depp was one of the few public figures in recent years to win a defamation suit.

In a recent article examining international trademark, copyright and related issues, we started with a focus on the place humor holds as a possible defense. To understand the roots of the penchant for humor to act as a bulwark of humanity’s way of defending itself, consider this story:

Former Alaska Governor and Vice Presidential candidate Sarah Palin recently lost the trial of her defamation case against The New York Times. Given the complexity of the legal issues and the unusual events at trial, a messy appeal is sure to follow. But if the appellate courts can see past the procedural novelties, Palin’s case could become a vehicle for revisiting the seminal case of New York Times v. Sullivan.

“Cowboy” Joe West is the best-known, longest-serving, and (to some) most reviled umpire currently active in Major League Baseball. For example, in 2010 he was named the second-worst MLB umpire, barely losing to CB Bucknor in a call at the plate that today could only be decided by the replay umpires in New York. At least he has his part-time country music career to fall back on. But West recently hit a home run in court, winning a $500,000 defamation verdict against a former player who accused him of trading a generous strike zone for personal favors. The court’s decision illustrates ...