Devin Nunes ends lawsuit against McClatchy as company emerges from bankruptcy
Rep. Devin Nunes in a new legal brief acknowledges that he is no longer attempting to sue McClatchy, the parent company of the largest newspaper in his congressional district.
McClatchy, parent company of The Fresno Bee, emerged from bankruptcy in September. The bankruptcy makes it difficult for Nunes to sue the company over a story published before its new ownership, Chatham Asset Management, took over.
Nunes, R-Tulare, alleged in the case that he was defamed by a news story that described an employee’s lawsuit against Alpha Omega Winery, a business in which Nunes holds a limited partnership. The employee claimed she was asked to work at a charity function on a yacht that became uncomfortable when guests appeared to use drugs and hire prostitutes.
The lawsuit, filed in Virginia last year, was one of seven cases Nunes filed over the past 19 months against media companies, political operatives and anonymous social media accounts alleging that various actors conspired to harm his reputation.
McClatchy fought the lawsuit and called it a “baseless attack on local journalism.” It was put on hold when the company declared bankruptcy in February.
Nunes in the McClatchy lawsuit also is suing Republican political consultant Liz Mair, alleging she circulated defamatory information.
In a new court filing, Nunes indicates he is still trying to sue Mair.
“Defendant, The McClatchy Company (“McClatchy”), declared bankruptcy,” reads an amended complaint filed in September by Nunes’ lawyer, Steven Biss. “In accordance with (federal law), this Amended Complaint takes no action to continue the case against McClatchy or to recover on any claim against McClatchy. Plaintiff nonsuits all claims against McClatchy ... as amended.”
Jay Ward Brown, a partner at Ballard Spahr who has represented McClatchy in other legal matters, said nonsuiting McClatchy means Nunes has indicated he wants the case to go forward against Mair.
“The plaintiff wants to proceed against the other defendants in the case instead of having the whole case put on hold, so he’s voluntarily dropping the case against McClatchy, which Virginia calls ‘nonsuiting’ McClatchy,” Brown said.
But Nunes is not dropping his right to sue McClatchy in the future. He still has the right to file another suit in the same court over the same allegations.
He cannot sue the new owners of McClatchy. He would have to pursue claims with the trust that now oversees the assets of the old owners of McClatchy.
A representative for that trust declined to comment, but the bankruptcy would make that process more complicated. Even if a new suit could go forward, there’s no guarantee Nunes would be able to recover anything from a bankrupted company’s trust.
Judge Cheryl Higgins of Virginia’s Albemarle County Circuit Court dismissed Nunes’ claims against Mair in August, accepting her attorneys’ arguments that Mair’s statements were not defamatory for various reasons. But she allowed Biss’ request to file an amended complaint, continuing his case against Mair.
.jpg)