Appeals court upholds jury award in The Sun News defamation case

The S.C. Court of Appeals on Wednesday upheld an Horry County jury’s decision that The Sun News and former investigative reporter David Wren defamed Myrtle Beach area lobbyist Mark Kelley in stories about campaign contributions.

The newspaper’s leaders have not decided what their next move will be.

“We are disappointed in the decision and are looking into our next steps,” said Mark Webster, president and publisher of The Sun News.

Wren, who now works for The Post and Courier in Charleston, referred questions about the case to The Sun News’ attorney, Jay Bender.

“I’m disappointed in the decision,” Bender said, adding that the newspaper and Wren “will have an opportunity to ask the court to reconsider, and, if that reconsideration is denied, ask the Supreme Court of South Carolina to review the case.”

Kelley, who could not be reached for comment, sued Wren and The Sun Publishing Co. in 2012 seeking compensation for “his loss of and/or damage to his good name, his personal and business reputation,” according to his lawsuit.

The articles focused on a June 2009 luncheon attended by Myrtle Beach Area Chamber of Commerce President Brad Dean, Kelley, then-S.C. gubernatorial candidate Gresham Barrett and a Barrett campaign staff member.

At the luncheon, Dean presented Barrett with an envelope containing $84,000 in campaign donations, most of which were on sequentially numbered checks from LLCs (Limited Liability Corporations) drawn on the same bank.

Kelley has said the wording of the articles, which were published in May 2010, accused him of violating state ethics laws that prohibit lobbyists from soliciting or handling campaign donations for statewide candidates.

Attorneys for the newspaper and Wren have argued that the accounts did not defame Kelley or harm his reputation, but were part of a series of stories about campaign contributions. The newspaper’s leaders maintain they were seeking to determine where those donations came from.

The jury sided with Kelley and in 2014 awarded the lobbyist $400,000 in actual damages and $250,000 punitive damages. The newspaper appealed that decision and the appeals court heard the case on Dec. 9.

“We find there is clear and convincing evidence to support the [jury’s] finding,” the appellate court judges wrote. “Therefore, an award of punitive damages in this case does not violate the constitutional rights of Wren and Sun Publishing.”

Bender, the newspaper’s lawyer, said if the paper wants to pursue the matter further, the decision to review the case will be in the court’s hands.

“Since this is a case involving a serious constitutional question, I’m optimistic that the courts will look kindly on those motions,” he said.

This story was originally published January 13, 2016 at 6:05 PM with the headline "Appeals court upholds jury award in The Sun News defamation case."