Fox News has challenged the damages it may have to pay if the company is found liable in a long-awaited defamation lawsuit for spreading misinformation after the 2020 presidential election, just as the judge in the case delayed the start of the case by one day.
The postponement of the trial and Fox’s claims of possible damages were the latest twists in the case. Late Sunday, Judge Eric M. Davis said the proceedings would continue on Tuesday. He gave no reason then or in his brief remarks from the bench just after 9am on Monday.
“This doesn’t seem unusual to me,” said Judge Davis, explaining that he had rarely been part of a trial that wasn’t delayed. “I will continue the matter until tomorrow.”
It is not uncommon for opponents in a lawsuit with such significant damages to seek settlement talks at the last minute.
However, three people directly involved in the case said they did not expect the parties to reach a settlement. Lawyers from Dominion Voting Systems, who filed the lawsuit against Fox, filed requests with the court Monday morning, indicating they expected the case to go to trial on Tuesday.
What you need to know about Dominion voting systems
Dominion set the financial penalty in the case at $1.6 billion. But a dispute over that number erupted after Fox challenged Dominion’s worth, pointing to a recent legal filing by Dominion in which it lowered part of its damages claim.
“Fox has made it clear that Dominion’s damages are huge,” a Fox spokeswoman said.
But damages are at the discretion of the jury and may be higher.
A Dominion spokeswoman disputed Fox’s characterization of the lawsuit. “The claim remains,” she said. “As Fox knows all too well, our damages exceed $1.6 billion.”
The reason a settlement has been elusive so far isn’t just monetary. Fox, one of the most profitable media companies, should apologize to Dominion on the terms Dominion would accept, according to several people familiar with the limited settlement talks that had taken place in recent months.
But doing so would do significant reputational damage to Fox News, which continues to air programs casting doubt on the guilt of Trump supporters in the January 6, 2021 riots.
At the same time, both parties have an incentive to reach a deal. Fox may want to avoid a lawsuit that could reveal more embarrassing or damaging details about his activities. And Dominion may want to get some financial payback and avoid the years of appeals that would likely take place if it won the jury trial.
The case has opened up an unprecedented look into the inner workings of the country’s leading conservative news network. Leading up to the trial, Fox handed over tens of thousands of emails and text messages exchanged between its hosts, producers and executives. Many of them revealed that there was widespread doubt within the network about former President Donald J. Trump’s false claims that he had been cheated of victory.
The case is considered a landmark First Amendment protection for the press and has been closely watched by legal and media analysts. Dominion’s voting machines became the focus of pro-Trump conspiracy theories that falsely implicated the company’s technology in a fictional plot to flip votes from Mr. Trump to President Biden.
Fox News v Dominion Voter Systems
On Monday, the courtroom was filled with reporters from around the world awaiting word on when to expect opening statements from both sides and the reason for the delay.
Bold names from Fox News — hosts including Tucker Carlson, Sean Hannity and Maria Bartiromo, along with Rupert Murdoch, whose family controls the Fox media empire — are expected to testify if the case goes to trial.
Dominion Voting Systems, an election technology company, filed a libel suit against Fox in early 2021 alleging that Fox hosts and guests repeatedly lied about its role in a fictitious plot to steal the election despite knowing the claims, which by mr. Trump and his supporters were not true.
Fox has said it reported on newsworthy allegations related to a presidential election and insisted that its broadcasts be protected under the First Amendment as commentary and news.
But Fox has faced a number of setbacks in its lawsuit. Judge Davis ruled in pre-trial hearings that the claims about Dominion were false and that the jury only had to consider whether Fox had knowingly broadcast them. The judge also set limits on the First Amendment defense Fox could rely on, ruling that it could not use free speech protections because the statements were false.
In statements emailed over the weekend, both sides appeared ready to move forward with the trial.
“In the coming weeks, we will prove that Fox spread lies that caused massive damage to Dominion,” a Dominion spokeswoman said. “We look forward to the trial.”
A spokeswoman for Fox said the network “remains steadfast in protecting the rights of a free press, as a verdict against Dominion and its private equity owners would have dire consequences for the entire journalism profession.”
