By James Caldwell, PWTorch assistant editor

CNN has reported several new details on a federal appeals court in Georgia siding with Hustler Magazine by dismissing punitive damages in the Nancy Benoit Family's lawsuit against the magazine.

-- The three-judge appeals panel determined the magazine operated "under an innocent mistake" by publishing personal, nude photos of Nancy Benoit following the Benoit Family Tragedy in 2007.

"A defendant (Hustler) operating under an innocent mistake cannot be held liable for punitive damages," the judges wrote.

The panel also wrote, "Because there was overwhelming evidence that LFP (publishers of Hustler) reasonably and honestly (albeit mistakenly) believed that the photographs were subject to the newsworthiness exception to the right of publicity, we conclude that no reasonable jury could find by clear and convincing evidence that punitive damages were warranted in this case."

A prior jury awarded the Nancy Benoit Estate nearly $20 million in punitive damages and $125,000 in compensatory damages. The sum was reduced down to punitive damages of $250,000. Both sides appealed the reduction (Nancy's side to recover the original amount and Hustler to eliminate the entire amount). The appeals court then threw out the entire sum in this week's court decision.

-- According to CNN, Benoit's estate "now has the option" of requesting the U.S. Supreme Court get involved to decide "larger constitutional questions" on publishing "newsworthy" information vs. invasion of privacy.

CNN's lead paragraph focused on this case potentially setting precedent in future legal issues, noting the case "tests privacy concerns and the competing right to publish 'newsworthy' material."

Link: Report at CNN.com

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