Appellate court dismisses Dan Rather's lawsuit against CBS

NEW YORK — During a court hearing last week, Dan Rather's long and costly battle against CBS Corp. appeared to be finally getting some traction. Ira Gammerman, the New York Supreme Court judge hearing motions on the case, repeatedly urged the squabbling parties to resolve their conflicts over deposition and discovery so Rather's lawsuit against his former employer could go to trial. He ruled that Rather could depose Viacom Chairman Sumner Redstone, dismissing CBS' objections.

"Let's get this case moving," Gammerman said.

But Tuesday, a state appellate court halted the $70-million suit in its tracks. In a unanimous decision, the appellate panel dismissed the case in its entirety, writing that Gammerman had erred in allowing Rather to pursue his allegations of breach of contract, breach of fiduciary duty and fraud.

Rather's attorneys immediately vowed to appeal. But the decision represented a severe blow to the 77-year-old newsman, who has been personally financing the suit for two years. Pursuing the case has estranged him from the news division where he worked for 44 years and led CBS executives to disparage him recently in strikingly personal terms.

Rather declined to comment, referring questions to his legal team. Martin Gold, Rather's lead attorney, said the anchor remains "resolute" and determined to pursue the suit. "He's already committed so much to this case, he's certainly not going to abandon it now," Gold said.

Gold characterized the appellate court's ruling as a "dismissal on technical grounds" and said that the appellate panel appeared "hostile" to Rather's position from the outset.

"I think the decision was wrong on the law," he said. "I hope we can convince the Court of Appeals that they were wrong."

CBS attorneys said they believe there is a low probability that the Court of Appeals will take the case and cast Tuesday's decision as an unmitigated victory.

"We're really happy," said Lou Briskman, general counsel for CBS. "Everything that we thought was correct when the complaint was filed, the court reaffirmed today."

Briskman said that he expects a second suit that Rather filed, against CBS Chief Executive Leslie Moonves and former CBS News President Andrew Heyward, to be dismissed as well. If Rather does not prevail with the Court of Appeals, that could end what has been a searing chapter for both the anchor and his former network.