Vol. 55 No. 10

Trial Magazine

Verdicts & Settlements

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Defamation by Libel

October 2019

An African-American student with a fake ID attempted to purchase two bottles of wine at Gibson’s Bakery, a business in Oberlin, Ohio. The clerk, Allyn Gibson, realized that the identification was false and attempted to take a picture. The student then allegedly thrust his hand into Gibson’s face and ran out of the store. She followed him outside and detained him on the ground until police arrived. A physical altercation ensued, and the student and two others who were with him in the store were arrested. The three students later pleaded guilty to various charges, including trespass, use of false identification, theft, and accomplice to theft.

Oberlin College students and some faculty then engaged in online and in-person protests, alleging charges of racism against the bakery. The university directed a contractor to terminate its longstanding food service relationship with Gibson’s. The bakery suffered a dramatic decline in revenue and lost approximately $5.8 million in profits as a result of the protests and the harm this caused to its reputation.

Gibson’s Bakery sued Oberlin College, alleging intentional infliction of emotional distress and defamation by libel. The plaintiff also alleged that Oberlin’s dean of students, Meredith Raimondo, was liable for defamation by libel and interference with a business relationship. The plaintiff argued that it will take a generation for the damage to its reputation to subside and that the college should not have participated in or facilitated the protests and defamatory activities.

The jury awarded the bakery more than $44 million, including $33 million in punitive damages.

Citation: Gibson Bros., Inc. v. Oberlin College, No. 17CV193761 (Ohio Ct. Com. Pl. Lorain Cnty. June 13, 2019).

Plaintiff counsel: AAJ member Lee E. Plakas, AAJ member Brandon W. McHugh, AAJ member Jeananne M. Ayoub, Terry A. Moore, Owen J. Rarric, and Matthew W. Onest, all of Canton, Ohio; and James N. Taylor, Elyria, Ohio.