ABC Faces Revived Defamation Suit by Rev. Fred Price

Last Tuesday, the United States Court of Appeals overturned a federal judge's controversial ruling that ended Rev. Frederick K. C. Price’s defamation lawsuit against ABC "20/20" and correspondent John Stossel. According to the Court, Judge R. Gary Klausner had erroneously ruled in the matter.

In the lower court's decision, Judge Klausner found that even though Stossel's broadcast took Price’s words out of context, the prominent national television evangelist could not establish that the broadcast was false or misleading, as Price had made similar statements elsewhere.

But a three-member panel at the Federal Ninth Circuit Appeals Court determined that Judge Klausner had overreached. The Court found that Klausner erred both by comparing the statements in the clip with Price's actual wealth and possessions, and by agreeing with the network that the clip was "substantially true" based on that comparison.

"Under controlling Supreme Court precedent on when journalists' misquotations of statements made by public figures are false for purposes of establishing actual malice, there is a substantial likelihood that Price can establish that the publication of the clip was false," Judge Mary Schroeder wrote.

Price’s litigation stems from a heavily edited March 2007 broadcasted clip, wherein he states:

"I live in a 25-room mansion. I have my own $6 million yacht. I have my own private jet and I have my own helicopter and I have seven luxury automobiles."

The clip was edited to conceal that Price was speaking hypothetically about a wealthy person who was spiritually unsatisfied.

It is reported that ABC later apologized. However, the Ninth Circuit has ordered the case reopened.