Judge: Dan Rather Can Again Pursue Fraud Claim In CBS Suit
July 21 2009 - 5:30PM
Dow Jones News
A state judge on Tuesday reinstated a fraud claim by former CBS
Evening News anchor Dan Rather in a $70 million lawsuit against CBS
Corp. (CBS).
At a hearing Tuesday, New York State Supreme Court Justice Ira
Gammerman ruled that Rather could file an amended complaint in the
case that alleges fraud by CBS. The judge had previously thrown out
the fraud claim.
"The reasonable, objective analysis is it was a bad day at Black
Rock," said Rather, referring to CBS's headquarters in midtown
Manhattan.
Rather also has alleged breach of contract and breach of
fiduciary duty by CBS.
Jim Quinn, a lawyer for CBS, said the media company will ask for
the fraud claim to be dismissed.
In a statement, CBS said, "Today's rulings by Judge Gammerman
were on technical and procedural issues, not on the merits of Mr.
Rather's allegations. Most of Mr. Rather's claims already have been
rejected by the court and that has not changed. We are similarly
confident that Mr. Rather's re-pleaded fraud claim will be
dismissed once the court reaches the actual merits."
Rather has alleged in part that CBS violated his contract by
failing to provide him enough airtime on "60 Minutes" or "60
Minutes II" after removing him as anchor of CBS Evening News in
March 2005 following a controversy over a 2004 report about
President George W. Bush's service in the Texas Air National
Guard.
The complaint, originally filed in 2007, is seeking about $20
million in compensatory damages and $50 million in punitive
damages.
Rather, who first joined CBS News in 1962, also claims CBS
conducted a biased investigation - instead of the independent probe
it promised into the underlying story and its production. Rather
left the network in June 2006.
In his ruling Tuesday, the judge ordered CBS to turn over
documents related to the probe, including draft copies of the
independent panel's report and separation agreements signed by
about a dozen CBS employees after they left the network.
"With respect to the ruling on privilege issues relating to the
independent panel, the panel was in fact independent," CBS
said.
Meanwhile, the New York State Supreme Court's Appellate Division
for the First Department is considering whether the case itself
should be allowed to proceed. A decision is expected some time this
summer.
-By Chad Bray, Dow Jones Newswires; 212-227-2017;
chad.bray@dowjones.com