US Dominion, Inc. v. Fox News Network, LLC

Superior Court of Delaware·Decided March 31, 2023·No. N21C-03-257 EMD & N21C-11-082 EMD·Published

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

US DOMINION, INC., DOMINION ) VOTING SYSTEMS, INC., and ) DOMINION VOTING SYSTEMS ) CORPORATION, ) C.A. No.: N21C-03-257 EMD ) Plaintiffs, ) ) v. ) ) FOX NEWS NETWORK, LLC, ) ) Defendant. ) ) ) US DOMINION, INC., DOMINION ) VOTING SYSTEMS, INC., and ) DOMINION VOTING SYSTEMS ) CORPORATION, ) ) C.A. No. N21C-11-082 EMD Plaintiffs, ) ) v. ) ) FOX CORPORATION, ) ) Defendant. )

Submitted: March 22, 20231 Decided: March 31, 2023

Upon Defendant Fox News Network, LLC’s Rule 56 Motion for Summary Judgment DENIED Upon Defendant Fox Corporation’s Rule 56 Motion for Summary Judgment DENIED Upon Dominion’s Motion for Summary Judgment on Liability of Fox News Network, LLC and Fox Corporation GRANTED in part and DENIED in part

1 D.I. No. 1220. Brian Farnan, Esquire, Michael J. Farnan, Esquire, Farnan LLP, Wilmington, Delaware; Rodney Smolla, Esquire (argued), South Royalton, Vermont; Thomas A. Clare, Esquire, Megan L. Meier, Esquire, Dustin A. Pusch, Esquire, Daniel P. Watkins, Esquire, Clare Locke LLP, Alexandria, Virginia; Justin A. Nelson, Esquire (argued), Jonathan J. Ross, Esquire, Elizabeth Hadaway, Esquire, Susman Godfrey LLP, Houston, Texas; Stephen Shackelford, Jr., Esquire (argued), Elisha Barron, Esquire, Mark-Hatch-Miller, Esquire, Zach Savage, Esquire, Susman Godfrey LLP, New York, New York; Davida Brook, Esquire, Jordan Rux, Esquire, Susman Godfrey LLP, Los Angeles, California; Stephen E. Morrissey, Esquire, Edgar Sargent, Esquire, Katherine Peaslee, Esquire, Susman Godfrey LLP, Seattle, Washington; Attorneys for Plaintiffs US Dominion, Inc., Dominion Voting Systems, Inc. and Dominion Voting Systems Corporation.

Blake Rohrbacher, Esquire, Katharine L. Mowery, Esquire, Angela Lam, Esquire, Richards, Layton & Finger, P.A., Wilmington, Delaware; Paul Clement, Esquire, Erin E. Murphy, Esquire (argued), Clement & Murphy, PLLC, Alexandria, Virginia; Dan K. Webb, Esquire, Matthew R. Carter, Esquire, Winston & Strawn LLP, Chicago, Illinois; Scott A. Keller, Esquire, Lehotsky Keller LLP, Washington, D.C; Eric M. George, Esquire, Katherine A. Petti, Esquire, Ellis George Cipollone O’Brien Annaguey LLP, Los Angeles, California; Attorneys for Defendant Fox News Network, LLC and Fox Corporation.

John L. Reed, Esquire, Ronald N. Brown, III, Esquire, DLA Piper LLP (US), Wilmington, DE; Counsel for Defendant Fox Corporation.

DAVIS, J.

I. INTRODUCTION

This is a civil action involving a defamation claim. Plaintiffs US Dominion, Inc.,

Dominion Voting Systems, Inc. and Dominion Voting Systems Corporation (collectively,

“Dominion”) allege that Defendant Fox News Network, LLC (“FNN”) and Fox Corporation

(“FC”)2 published false and defamatory statements of fact about Dominion. Dominion

commenced its action against FNN on March 26, 2021. Dominion then commenced its action

against FC and Fox Broadcasting Company, LLC on November 8, 2021. On June 21, 2022, the

Court granted a motion to dismiss Fox Broadcasting Company, LLC. On December 22, 2022,

the Court consolidated the two actions, with FNN and FC as the remaining defendants.

2 At times, the Court may collectively refer to FNN and FC as “Fox.”

2 Through its complaints (the “Complaints”), Dominion contends that: (i) FNN and FC

intentionally provided a platform for guests that FNN’s hosts knew would make false and

defamatory statements of fact on the air; (ii) FNN and FC, through FNN’s hosts, affirmed,

endorsed, repeated, and agreed with those guests’ statements; and (iii) FNN, with the

participation of FC, republished those defamatory and false statements of fact on the air, FNN’s

websites, FNN’s social media accounts, and FNN’s other digital platforms and subscription

services. Dominion seeks punitive and economic damages for defamation per se.

FNN and FC each filed a Motion for Summary Judgment on January 17, 2023.3 In the

FNN Motion, FNN argues that it is entitled to summary judgment because (i) the contested

statements are not actionable under the First Amendment and the applicable New York doctrines,

(ii) Dominion failed to show that the statements were made or published with actual malice, and

(iii) Dominion did not suffer damages. In the FC Motion, FC argues that it is entitled to

summary judgment because FC cannot be held vicariously liable for the actions of its subsidiary,

and that FC executives were not directly involved in creating or publishing the contested

statements. Dominion contests all arguments made in the Fox Motions.

On January 17, 2023, Dominion filed its Motion for Summary Judgment on Liability of

Fox News Network, LLC and Fox Corporation (the “Dominion Motion”). Dominion argues that

Fox published false and defamatory statements about Dominion’s role in the 2020 United States

Presidential Election (the “2020 Election”). Specifically, Dominion states FNN (and FC) “gave

life to a manufactured storyline” that Dominion rigged the Election.4 Dominion alleges that

FNN “endorsed, repeated, and broadcast a series of verifiably false yet devastating lies about

3 Respectively, Defendant Fox News Network, LLC’s Rule 56 Motion for Summary Judgment (the “FNN Motion”) and Defendant Fox Corporation’s Rule 56 Motion for Summary Judgment (the “FC Motion”). 4 Compl. ¶ 1, Mar. 26, 2021 (D.I. No. 1).

3 Dominion.”5 Dominion claims that Fox made various defamatory statements about Dominion in

twenty broadcasts, and categorizes the statements into four subsections: (1) “the fraud lie,” (2)

“the algorithm lie,” (3) “the Venezuela lie,” and (4) “the kickback lie.”6 Dominion argues that

summary judgment on liability should be granted in its favor because any reasonable juror would

find that Fox made (1) false statements; (2) of and concerning Dominion; (3) that were

published; (4) that were defamatory per se; and (5) did so with actual malice. FNN and FC

oppose the Dominion Motion.

The Court held a hearing (the “Hearing”) on the FNN Motion, the FC Motion and the

Dominion Motion on March 21, 2023 and March 22, 2023.7 At the conclusion of the Hearing,

the Court took the various motions under advisement. This is the Court’s decision on the FNN

Motion, the FC Motion and the Dominion Motion. For the reasons set forth below, the FNN

Motion and the FC Motion are DENIED, and the Dominion Motion is GRANTED, in part, and

DENIED, in part.

II. BACKGROUND

A. THE PARTIES

Plaintiff US Dominion Inc. is a for-profit Delaware corporation. US Dominion Inc.

maintains its principal place of business in Denver, Colorado.8

Plaintiff Dominion Voting Systems, Inc. is a for-profit Delaware Corporation with its

principal place of business in Denver, Colorado.9 Dominion Voting Systems, Inc. also operates

5 Id. ¶ 2. 6 Dominion MSJ, Appx. D, Jan. 17, 2023 (D.I. No. 951). 7 D.I. No. 1220. 8 Compl. ¶ 8. 9 Id. ¶ 9.

4 an office in New York.10 Dominion Voting Systems, Inc. is a wholly owned subsidiary of US

Dominion, Inc.11

Plaintiff Dominion Voting Systems Corporation is a for-profit Ontario, Canada

corporation with its principal place of business in Toronto, Ontario.12 Dominion Voting Systems

Corporation is a wholly owned subsidiary of US Dominion, Inc.13

Defendant FNN operates Fox News Channel, Fox Business Channel, Fox News Radio,

and Fox News Digital which includes fox.com, foxnews.com, foxbusiness.com, Fox’s social

media accounts, and Fox’s digital subscription services.14 FNN is a limited liability company

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US Dominion, Inc. v. Fox News Network, LLC, (Del. Ct. App. 2023).

US Dominion, Inc. v. Fox News Network, LLC (US Dominion, Inc. v. Fox News Network, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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