3rd Circ. Nixes $2M Defamation Claim In Philly News Ch. 11

Law360, Wilmington (July 26, 2012, 10:01 PM EDT) -- The Third Circuit ruled in a precedential decision Thursday that a charter school company alleging defamation against Philadelphia Newspapers LLC is not entitled to a $1.8 million administrative expense claim in the publisher’s long-concluded bankruptcy.

Prior to the 2009 bankruptcy filing, Charter School Management Inc. sued Philadelphia Newspapers over allegedly offending articles that appeared in the Philadelphia Inquirer. CSMI later asserted that a post-petition news item on the debtors’ website linking back to the original articles gave rise to the administrative expense claim.

A Pennsylvania bankruptcy...
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