Clarion-Ledger: A ‘Moral Contract' With Melton? | Jackson Free Press | Jackson, MS

Clarion-Ledger: A ‘Moral Contract' With Melton?

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Rarely mentioned in the ongoing lawsuit between Mayor Frank Melton and former Lt. Col. Robert Pierce is the role of The Clarion-Ledger.

Pierce, a retired Mississippi Bureau of Narcotics pilot, is suing Melton for damages for a fraudulent MBN memo that the then MBN director leaked to the newspaper, which alleged that Pierce had illegally transferred MBN property. Pierce has sought damages ever since State Auditor Phil Bryant found last spring that the allegations were overwhelmingly bogus. In 2003 Pierce sued Melton in Lauderdale County Circuit Court for leaking the memo; earlier this year he sued The Clarion-Ledger in Federal Court after the auditor's report was released.

After the mayor admitted in September to lying to the Lauderdale County Circuit Court in written depositions, Judge Robert Bailey granted default judgment against him. With the automatic forfeiture of the case, however, comes a more high-stakes battle between Melton and The Clarion-Ledger, as various defendants look to protect themselves from expensive damages that will now inevitably be paid to plaintiff Robert Pierce.

Melton's insurer, Allstate Insurance Co. is already arguing that Melton breached his own policy when he lied to the court; thus, Allstate should not have to cough up protection on Melton's two $300,000 policies and one $1,000,000 policy, it says. Now The Clarion-Ledger is also trying to distance itself from any legal accountability.

Unlike in earlier depositions, Melton now argues that although he indeed leaked the memo, he did so with the understanding that Clarion-Ledger reporter Ana Radelat was to keep the document secret until she "checked it out" for accuracy. Pierce is also suing Radelat, as well as Clarion-Ledger Metro Editor Grace Simmons, who has long covered and edited stories about Melton.

Attorneys for The Clarion-Ledger deny the existence of an oral agreement, saying Melton's second story "is no more truthful than his first one."

Still, attorneys for Pierce have pounced on Melton's claim, saying that if indeed he had an oral agreement, or a spoken contract, with The Clarion-Ledger, then that makes Pierce a third-party beneficiary—even though he didn't even know about the contract.

Phelps Dunbar, attorneys for The Clarion-Ledger, argue that the "contract" between Melton and the newspaper was "at most, a moral obligation, and not a basis of a legally enforceable contract," and that a moral obligation "does not give rise to any express or implied contractual duty."

The newspaper's attorneys cite a Minnesota Supreme Court decision that the law should not "impose contractual obligations when reporters make a promise of confidentiality—which is properly viewed as a moral obligation—in exchange for information."

They argue that in Cohen v. Cowles Media Co., the court ruled that "the law does not make binding every exchange of promises … The parties understand that the reporter's promise of anonymity is given as a moral commitment, but a moral obligation alone will not support a contract."

Pierce's attorney, Mike Farrell, said the argument would set a bad precedent for the business of news writing should the Federal Court decide to uphold it.

"The Clarion-Ledger lawyers found some oddball decision out of the Supreme Court of Minnesota that says when reporters grant confidentiality they don't really mean for it to be legally binding. What they're saying is, 'we can promise, but we don't really mean to keep it.' If they stop and think about what they're saying, it kind of demeans the news-writing profession," Farrell said.

Mississippi State University mass communications professor John Ford said such a ruling could deter whistleblowers. "You could tell me whatever you want to tell me, but if I know a case just went through stripping away a reporter's moral obligation to a source, then I would tell you the absolute minimum I had to and then stop, and I think that's what most people would do," Ford said.

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