Adelson v. Harris
973 F. Supp. 2d 467
S.D.N.Y.2013Background
- Sheldon G. Adelson, a Nevada domiciliary and major GOP donor, sued NJDC, its president David Harris, and chairman Marc Stanley for libel based on an NJDC website petition and a follow-up press release during the 2012 presidential campaign.
- The petition stated (and hyperlinked to an AP article quoting a sworn declaration in a Nevada lawsuit) that reports had surfaced Adelson "personally approved" prostitution in Macau; it also called his contributions "dirty/tainted money." NJDC removed the petition days later and issued a short press release standing by sourcing to news reports.
- The AP article quoted a sworn declaration by former Sands executive Steven Jacobs; Adelson and Sands denied the assertion and later produced evidence disputing it. Adelson demanded retraction; defendants declined.
- Defendants moved to dismiss under Rule 12(b)(6) and both the D.C. and Nevada Anti‑SLAPP statutes; court had to decide choice of law before resolving the statutory issues.
- The Court applied Nevada law (finding Nevada had the most significant relationship), held the petition was non‑actionable (fair report privilege for reporting on judicial proceedings and protected opinion), granted dismissal under Rule 12(b)(6), and granted defendants’ Nevada Anti‑SLAPP motion awarding fees and costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Choice of law | Apply D.C. law (defendants domiciled there); D.C. Anti‑SLAPP should govern | Nevada law governs because Adelson is domiciled in Nevada and injury is felt there | Nevada law applies (most significant relationship) |
| Hyperlink attribution / fair‑report privilege | Hyperlinking to an article (not the affidavit) does not adequately attribute a judicial source; privilege inapplicable | Hyperlink + wording ("reports," "reportedly," quotes) sufficiently attributes the source; privilege covers republication of judicial proceedings | Hyperlinking to the AP article sufficiently attributed and the petition fairly and accurately reported the Jacobs declaration — fair report privilege applies |
| Opinion vs. provable fact ("dirty/tainted money") | Words imply facts about Adelson's conduct/funds and are defamatory | Terms are rhetorical, metaphoric, political opinion based on disclosed facts and therefore non‑actionable | "Dirty/tainted money" are non‑provable opinion in political context; protected speech |
| Nevada Anti‑SLAPP applicability & timeliness | Defendants untimely invoked Nevada Anti‑SLAPP; statute only protects communications to government agencies | Statute covers communications aimed at electoral outcomes; court may extend filing deadline for good cause here | Court extended timeliness, held petition/press release protected under first prong (electoral communicative activity) and granted Anti‑SLAPP relief |
| Good faith / knowledge of falsity | Defendants acted with reckless disregard / knew statements false after being informed | Defendants relied on a reputable news report and a sworn affidavit; plaintiff failed to plead knowledge of falsity | Plaintiff failed to plead knowledge of falsity; communications were made without knowledge of falsity as a matter of law; Anti‑SLAPP dismissal and fees awarded |
Key Cases Cited
- Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487 (choice‑of‑law forum applies substantive law of state with most significant relation)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (pleading must state a plausible claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (conclusory allegations insufficient to survive dismissal)
- Milkovich v. Lorain Journal Co., 497 U.S. 1 (opinion/fact doctrine; protect statements not asserting provable facts)
- Sahara Gaming Corp. v. Culinary Workers Local 226, 115 Nev. 212, 984 P.2d 164 (Nevada recognizes absolute fair‑report privilege for reporting judicial proceedings)
- Liberty Lobby, Inc. v. Dow Jones & Co., 838 F.2d 1287 (reliance on reputable news reports can preclude actual malice)