Defamation Nation: U.K. Libel Judgment Not Overruled By U.S. First Amendment

Posted by Eriq Gardner

Another interesting development on the defamation front: The 2nd Circuit has rejected an author's request to deem a U.K. libel judgment unenforceable on First Amendment grounds.

In 2003, Rachel Ehrenfeld, an adviser to the Defense Department and director of the New York-based American Center for Democracy, published a book called "Funding Evil: How Terrorism Is Financed - and How to Stop It," which contained accusations against Khalid bin Mahfouz, former owner of the National Commercial Bank of Saudi Arabia and former chief operating officer of the Bank of Credit and Commerce International. The following year, bin Mahfouz sued Ehrenfeld in London and obtained a default libel judgment enjoining further publication of the statements about Mahfouz.

Since then, Ehrenfeld has been challenging whether bin Mahfouz could win in the U.S. (likely not) and whether the U.S. could declare the U.K. judgment as unenforceable. Yesterday, the 2nd Circuit panel agreed with lower courts and said they didn't have jurisdiction over the matter.

That might change as the decision could further push the New York government to pass an anti-libel tourism law.