New details have emerged about Disney’s swift decision to settle Donald Trump’s defamation lawsuit against ABC News for $15 million last week, which saw the corporation criticized for declining to fight its corner and for potentially emboldening the president-elect to pursue further legal actions against his media enemies.
The Republican sued ABC earlier this year after anchor George Stephanopoulos mistakenly said on air that the former president had been “found liable for rape” in the civil case brought against him by former magazine columnist E Jean Carroll over an incident she alleges took place in a New York City department store in 1996.
In fact, Trump was found liable for sexual abuse, not rape.
According to The New York Times, Disney executives realized their decision to settle would create “blowback” from other outlets but concluded its network had a “flawed” case for the defense and were wary of allowing an ugly legal battle to harm the fourth estate and damage its brand, which remains firmly associated with family entertainment.
The newspaper reports that it was a 21-page order issued by Florida federal judge Cecilia Altonaga in July rejecting Disney’s motion to dismiss the case that worried ABC’s parent company and persuaded its lawyers to act fast.
“A reasonable jury could interpret Stephanopoulos’s statements as defamatory,” Judge Altonaga wrote.
“Stephanopoulos stated 10 times that a jury — or juries — had found plaintiff liable for rape.”
When Judge Altonaga, the chief justice for the South District of Florida, moved again on Friday to reject Disney’s motion to delay the case and ordered depositions from both Trump and Stephanopoulos as well as the immediate release of “all remaining documents” related to the case, including emails and text messages, the corporation opened settlement talks that were resolved within hours that same evening.
It agreed to a $15 million compensation package, to cover Trump’s $1 million in legal fees and to issue a statement expressing its “regret” over the error.
The NYT reports that the settlement was recommended by Disney’s general counsel Horacio Gutierrez and approved by CEO Bob Iger but was not voted on by the company’s board, with the executives fearing that a Florida jury hearing the case in Trump’s own backyard might well sympathize with the president-elect and award much higher damages.
Conscious of its unsavory recent legal fight with the Sunshine State’s Republican Governor Ron DeSantis and keen to be able to present its products to families of all political persuasions, Disney opted to settle rather than lose the case and endure a lengthy and costly appeals process that might have taken it all the way to the Supreme Court.
Had it reached the highest court, Disney feared its case might have given Trump and his allies an opportunity to attempt to overturn the landmark 1964 First Amendment decision in New York Times Co v Sullivan, which made it more difficult for wealthy public figures to win libel lawsuits against the press.
The corporation also reportedly concluded that Trump’s ongoing animosity could hinder ABC News in its ability to cover his administration, particularly given that the president-elect branded its handling of his sole televised debate with election rival Kamala Harris “terrible” and openly mused about revoking its broadcast license in revenge.
Disney had factored the likelihood of negative headlines into its decision — particularly given that it appeared to be in a strong position, the burden of proof lying with Trump — and they duly arrived.
Media pundit Paul Farhi labeled the settlement “an awful precedent and a huge sellout” and Democratic Party lawyer Marc E Elias wrote on social media: “Knee bent. Ring kissed. Another legacy news outlet chooses obedience.”
Trump, a persistent critic of the media who has frequently railed against “fake news”, has already followed up his victory by suing The Des Moines Register for publishing a poll the weekend before this year’s presidential election that turned out to be incorrect but which the Republican insisted amounted to “election interference”.
The newspaper has said it stands by its reporting and plans to fight the case.
Speaking to The Independent this week, Roy Gutterman, director of the Newhouse School’s Tully Center for Free Speech, warned of a “chilling effect” arising as a result of Trump’s actions.
“Many in free press circles are holding their breath,” he said. “There is concern that we are embarking on some scary times.”
