By Patricia Hurtado
Sept. 22 (Bloomberg) -- Former CBS anchorman Dan Rather can proceed with a $70 million breach-of-contract lawsuit against his former employer for firing him, a New York judge ruled.
New York Supreme Court Justice Ira Gammerman in Manhattan said today that Rather can sue over claims the network damaged his reputation when it fired him as managing editor of the ``CBS Evening News.'' Gammerman ruled that Rather can't sue CBS Corp. for fraud, or the broadcaster and one-time parent Viacom Inc. on claims they interfered with his contract.
``I think the breach-of-contract claim is essentially a slam dunk, there's no defense to that,'' Rather's lawyer, Martin Gold, said outside the courtroom. ``They had fiduciary obligations to Dan and they breached them.''
Rather, 76, filed the complaint last year. Gammerman said in April that the lawsuit could move forward with the taking of depositions, ruling that New York-based CBS might be held liable for the alleged breach of Rather's contract. The judge said then it would be ``premature'' to dismiss the claims before completion of the pre-trial exchange of evidence known as discovery.
Today, Gammerman threw out two of the four claims against CBS as well as the only claim against Viacom. The judge dismissed Rather's claim that, in a desire to ``curry favor with the White house,'' CBS and Viacom interfered with his contract.
``I consider it a win,'' said James Quinn, a CBS lawyer. He said he intends to ask the judge for a pre-trial ruling dismissing the remaining breach-of-contract and breach-of- fiduciary duty claims against CBS after the taking of depositions and discovery have been completed.
`Scapegoat'
The network fired Rather in reaction to his 2004 election- year report on President George W. Bush's Vietnam-era National Guard service, Rather said in his lawsuit filed last September. He claimed he was made a ``scapegoat'' to placate the Bush administration. The report was criticized as inaccurate.
Gammerman threw out the fraud claim against CBS, ruling that Rather had failed to prove the network's actions had deprived him of business opportunities.
``The plaintiff has failed to allege any damages for a claim of fraud,'' Gammerman said. ``While the plaintiff alleges that he lost multiple business opportunities,'' the judge said, ``he is currently employed by HDNet and doesn't allege he was unemployed at any time.''
Sumner Redstone
Gammerman in April dismissed Rather's individual claims against Viacom Chairman Sumner Redstone, CBS Chief Executive Officer Leslie Moonves and former CBS News President Andrew Heyward.
CBS was separated from Viacom at the beginning of 2006. Redstone is chairman of both companies.
In dismissing Rather's claims against Viacom, Gammerman said the former Viacom split with CBS.
``The defendants have not shown that the new Viacom Inc. is a successor to the interests of the old Viacom Inc., and that the new Viacom carries no liability for the old Viacom's alleged breaches,'' Gammerman said.
The judge scheduled a hearing for Oct. 7 to consider setting a trial date.
The case is Rather v. CBS Corp., 603121/2007, New York Supreme Court (Manhattan).
To contact the reporter on this story: Patricia Hurtado in New York State Supreme Court in Manhattan at pathurtado@bloomberg.net.
Last Updated: September 22, 2008 21:01 EDT
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