NEWARK, N.J. — A state appeals court has ruled that a newspaper can be sued for libel for reporting allegations from a lawsuit before any court proceedings have taken place.
The Nov. 12 ruling reversed a lower court decision that dismissed a libel claim against The Record of Bergen County brought by Thomas John Salzano, who alleged the newspaper defamed him in 2006 by reporting a federal bankruptcy court complaint that alleged he misappropriated money from a Newark telecommunications company.
The court said in Salzano v. North Jersey Media Group Inc. that The Record was not privileged to “republish alleged defamatory statements within a bankruptcy court complaint” and that the newspaper did not demonstrate the allegations were true or non-defamatory.
Salzano, whose father was chief managing officer of the company, represented himself in the appeal. He praised the ruling for “ensuring integrity in reporting while protecting private citizens” from false allegations.
Media lawyers say the decision is a restriction on the “fair report privilege” that allows newspapers to report allegations made in court documents. Jennifer Borg, an attorney for the newspaper, said the decision would have a “chilling effect” on a newspaper’s ability to gather news. Borg said The Record planned to appeal the ruling to the state Supreme Court.
Thomas Cafferty, a lawyer representing the New Jersey Press Association, said that organization would join in the appeal.