NY's top court rejects Rather's appeal against CBS

[February 04, 2010]  ALBANY, N.Y. (AP) -- New York's top court Tuesday rejected Dan Rather's bid to reinstate his $70 million breach-of-contract lawsuit against CBS Corp.

Rather's motion was denied without comment Tuesday by the Court of Appeals.

CBS spokeswoman Shannon Jacobs said the network was pleased with the outcome.

Rather, who now produces an hourlong news program for cable channel HDNet, issued a statement calling the ruling "a grave miscarriage of justice."

"I am disappointed that no court or jury studied the evidence and heard the actual facts of the case. The case was dismissed on purely technical grounds," Rather said. "My mission continues to be working to ensure that the media can gather and report news unfettered by the influence of government and major corporate interests."

Rather sued CBS and its top executives in 2007, claiming he had been wrongfully removed from his "CBS Evening News" anchor post over a report that examined President George W. Bush's military service.

His lawsuit claimed fraud and breach of fiduciary duty, as well as breach of contract.

A court threw out the fraud claims in September 2008. In September, a five-member Appellate Division panel unanimously concluded there was no breach of contract because CBS still paid Rather his $6 million annual salary after the disputed 2004 broadcast.

The dispute began with a piece Rather narrated for the now-defunct "60 Minutes II," in which he reported that Bush got preferential treatment during his Vietnam War-era service in the Texas Air National Guard.

Rather cited new documents CBS had obtained, but the authenticity of the documents later came under attack.

Rather was dumped by CBS in June 2006 after 44 years with the network.

[Associated Press; By MICHAEL VIRTANEN]

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