In many legal settlements, both sides declare victory. The settlements themselves are often confidential, or are for amounts so far below the plaintiff’s original demand that a defendant can argue, with a straight face, that he settled essentially to make the case go away. Rather than deal with the risk of a rogue jury, defendants can settle for a reasonable sum and then often, in exchange for the cash, gain the silence of the plaintiff. The public, to the extent it cares, is left to argue over what “victory” truly meant.
Not so with Dominion’s settlement against Fox. The moment the amount of the settlement emerged — $787,500,000 — I knew that Dominion had won and Fox had lost, and it wasn’t even close. The reason was clear to anyone who’d followed the case carefully: Damages, not guilt, were the weakest part of Dominion’s case. It had asked for $1.6 billion in damages, based in part on a theory outlined in the complaint that Fox’s “viral disinformation campaign” had “destroyed the enterprise value of a business that was worth potentially more than $1 billion.”
To call that claim speculative is an understatement. According to a 2020 report in Forbes, Dominion had been paid $118.3 million for its election services between 2017 and 2019. I’ve litigated lost profit/lost enterprise value cases, and I know how difficult it is to prove estimated future financial fortunes.
In other words, it was going to be straightforward to prove that Fox employees lied and deliberately platformed lies. It was going to be much harder to prove the kind of damages that Dominion claimed. Then, in the settlement, Fox paid Dominion a sum larger than Dominion could reasonably presume a jury would require. Why?
This brings us to the difference between justice and accountability. The legal system can achieve justice when an aggrieved party is made whole. And make no mistake, Dominion received justice. It was more than made whole for Fox’s lies, and its quest for even more justice continues. Its lawsuits against OAN, Newsmax, Sidney Powell, Rudy Giuliani and Mike Lindell are still pending.
But accountability is different. Accountability occurs when the people responsible for misconduct — and not merely their corporate bank accounts — experience proportionate consequences for their actions. One of the #MeToo movement’s greatest achievements was exposing to the world the degree to which corporations essentially paid for the privilege of continued corruption. They’d write checks to the survivors of abuse (granting them justice) without taking action against the abusers (enabling them to avoid accountability).
This is not a critique of the plaintiffs at all. They need justice, and they don’t have the power to impose accountability. They can’t mandate that corporations apologize or terminate employees without the agreement of the corporation. The system itself can generally only give them money. Do we want to ask people who’ve been harmed by misconduct to delay or risk their own quest for justice for the sake of using the settlement process to mandate apologies or terminations that the courts don’t have the power to compel?
The end result, however, is a system whereby wealthy institutions can essentially build in their corruption as a cost of doing business. In 2021, for example, my wife and I published a report detailing years of sexual abuse at one of the largest and most prominent Christian summer camps in America, Kanakuk Kamp. The pattern there was clear: pay survivors, get them to sign confidential settlements, and continue on with the same leaders who had abjectly failed to protect the kids in their care.
The Fox settlement reeks of justice without accountability. Not only is Fox not publicly apologizing for its misconduct, it has released deceptive descriptions of the settlement and the court’s findings. Its initial statement said in part: “We acknowledge the court’s rulings finding certain claims about Dominion to be false. This settlement reflects Fox’s continued commitment to the highest journalistic standards.”
That is not what the settlement reflects. The settlement reflects Fox’s abandonment of even the most minimal journalistic standards.
Fox’s “news” story about the settlement was perhaps even worse. The headline stated that “Fox News Media, Dominion Voting Systems reach agreement over defamation lawsuit,” but it didn’t state the amount of the settlement and instead mainly focused on the judge’s compliments of Fox’s legal team. No, really:
Delaware Superior Court Judge Eric Davis, who was overseeing the defamation lawsuit, praised both parties for their handling of the case.
“I have been on the bench since 2010. … I think this is the best lawyering I’ve had, ever,” Davis said, adding, “I would be proud to be your judge in the future.”
No mention, of course, that less than a week before, the same judge rebuked Fox’s lawyers, said he was concerned about “misrepresentations to the court” and lamented, “What do I do with attorneys that aren’t straightforward with me?” And then the Fox story ends with this howler of a paragraph:
Then-President Donald Trump and his allies fiercely challenged Joe Biden’s victory in the weeks following the election. Some of them, including members of his legal team, made false and unsubstantiated claims against Dominion Voting Systems and are the subject of separate defamation lawsuits.
Note the deflection of responsibility. It was Trump’s legal team that made “false and unsubstantiated claims.” That’s unquestionably true, but those same lawyers were enthusiastically put on the air by Fox for the purpose of spreading their “false and unsubstantiated claims.” And as the court’s summary judgment ruling made clear, Fox employees also made what they knew to be false and unsubstantiated claims.
The end result is that Fox has paid an immense price for its lies, but it recognizes that its true vulnerability isn’t in its bank account but in its audience. It can absorb huge financial losses so long as those losses are fleeting. It cannot prosper if it loses its audience. Shielding its audience from the truth is easily worth almost $800 million to a company that made $1.2 billion in net income last year and is sitting on $4 billion in cash reserves.
In the meantime, many of the viewers who keep the company so very profitable won’t know anything meaningful about the Dominion settlement or Fox’s lies — because Fox won’t tell them. I can think of any number of friends, relatives and neighbors who regularly consume conservative media and know nothing about the case. They know nothing about Fox’s falsehoods. Their ignorance is of incalculable worth to Fox.
While this newsletter is admittedly rather bleak even in the face of Fox’s decisive court defeat, the story is far from over. Smartmatic’s $2.7 billion lawsuit against Fox is pending in New York State court in Manhattan, and the larger right-wing media world is facing a series of reckonings in cases across the country. My friends at Protect Democracy have filed cases against Project Veritas, Gateway Pundit, Rudy Giuliani, Dinesh D’Souza and several additional defendants related to some of the most grotesque lies in the entire Stop the Steal effort.
There is a chance that great weight of legal judgments will lead to legal accountability. Justice can be so punishing that even the most amoral institutions have to respond as a matter of self-preservation. But true accountability remains elusive.
Indeed, the Dominion lawsuit is perfectly representative of a vital lesson we’ve learned during the Trump era. The law can stave off disaster, but only moral norms truly preserve the republic. The law (and law enforcement) blocked Trump’s attempted coup. Legal processes are underway to hold Trump responsible for his alleged criminal misdeeds. Court cases are likely to compensate multiple victims of defamation for their profound losses. Yet still our public square is overrun with ignorance and outright lies. A Machiavellian spirit stalks the land.
But the legal system does give our nation a chance to come to its senses. In the words of the old Fox show “The X-Files,” “The truth is out there.” Not only did Dominion receive justice, but its litigation gave the public the gift of truth. Now it’s incumbent on our nation to receive that truth and react accordingly. Fox News has tried to purchase the privilege of continued corruption, but even its vast bank account can’t protect it from the public — but only if that public possesses a trace of curiosity and preserves a moral core.
Source: Elections - nytimes.com
