Federal appeals court rules in favor of Wausau Daily Herald in defamation suit
MADISON – A federal appeals court ruled Monday that a lower court correctly decided the Wausau Daily Herald was not guilty of defamation when it published a 2018 story about a financial adviser.
Financial adviser Thomas Batterman sued the Wausau Daily Herald in federal court, claiming defamation after he sent a letter demanding a retraction of the story. Batterman was not satisfied with clarifications the Daily Herald made to the story. The U.S. 7th District Circuit Court ruled in favor of the Daily Herald, and Batterman appealed the decision. On Monday, the 7th Circuit's Court of Appeals upheld the District Court's decision.
"The 7th Circuit (appeals court's) decision confirms what we knew all along, that our reporting was a true account about what happened in this case involving Mr. Batterman," said Mark Treinen, former Wausau Daily Herald editor and current editor of the Green Bay Press-Gazette. "But it is certainly a welcome vindication not just for the Daily Herald, but for all journalists who do the important work of covering court proceedings and being careful to get the details right."
On Aug. 21, 2018, the Daily Herald published an article about lifelong farmer Joe Geisler dying at age 88 and leaving more than $3 million to charity. Geisler, who had no children, left detailed instructions that the money was to be divided equally among four charities: the Superior Diocese of the Catholic Church, Bruce High School in northwestern Wisconsin, the Alzheimer's Association and the American Cancer Society for local events.
Vigil Asset Management, of Wausau, was made the administrator of the trust that held Geisler's money. Batterman administered the fund through Vigil, which he operated. Nearly a year after Geisler died, only $80,000 had been distributed, and the American Cancer Society filed a lawsuit in Marathon County Circuit Court, asking that Vigil be removed as the fund's administrator.
The 2018 article relied on court documents to report accusations and judgments made in Marathon County Circuit Court.
After Geisler's death, Batterman and his fiancée, Deborah Richards, began talking via email about the trust and the best way to distribute the money, according to court documents. Richards was regional manager of the American Cancer Society's Relay for Life Midwest Division.
The two planned for Batterman to donate the American Cancer Society's portion of the trust over time to different Relay for Life events that Richards would be planning. The increase in money raised for each event would make Richards eligible for salary increases for reaching her fundraising goals, according to a petition filed in court by the American Cancer Society. By spreading out the payments, Batterman was able to collect $30,000 in fees from the trust before he and Vigil Asset Management were removed as administrators, according to court documents.
Richards, in court testimony, said the connection between the money raised for the American Cancer Society and her salary increases seemed random and unrelated to fundraising.
The Daily Herald reported that Judge Michael Moran removed Batterman and the companies he was connected to from overseeing the trust. Moran also ordered Batterman and the related companies to pay the charities' legal fees.
The Daily Herald reported the results of the court case and comments made by attorneys for the charities, as well as by Moran. The Daily Herald also included "related links" to other stories covering numerous issues related to estate planning, including ways to fight elder abuse connected to financial planning.
According to court documents, Batterman's allegations in the lawsuit were focused on four complaints. He said the Daily Herald:
Implied Batterman committed criminal acts of fraud, theft or embezzlement.
Implied Batterman committed "elder abuse."
Stated Batterman was trustee of the Geisler Trust.
Stated Batterman was found guilty of wrongdoing by the U.S. Securities and Exchange Commission.
The appeals court upheld the U.S. Seventh District Circuit Court's finding that the Daily Herald's reporting was substantially true and was protected under Wisconsin's judicial-proceedings privilege statutes, which protects publishers that report on court activity.
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Contact Karen Madden at 715-345-2245 or kmadden@gannett.com. Follow her on Twitter at @KMadden715, Instagram at @kmadden715 or Facebook at facebook.com/karen.madden.33.
This article originally appeared on Wausau Daily Herald: Appeals court rules in favor of Wausau Daily Herald in defamation suit
