Jack Nicklaus Wins Defamation Lawsuit
Golfing icon Jack Nicklaus has been awarded $50 million in a defamation lawsuit against Nicklaus Companies, the firm he co-founded. The verdict came after Nicklaus accused the company and two executives of disseminating false claims regarding his consideration of a $750 million deal with LIV Golf.
A jury in Palm Beach County, Florida, determined that the 85-year-old’s reputation had suffered significant harm, as he faced “ridicule, hatred, mistrust, distrust or contempt” stemming from the allegations. These included assertions that the 18-time major champion was suffering from dementia and was no longer competent to manage his affairs, as reported by the Palm Beach Post.
Defendants Found Not Liable
The lawsuit named billionaire banker Howard Milstein, the executive chairman of Nicklaus Companies, and executive Andrew O’Brien as defendants. However, the jury ruled in favor of the executives, which means they will not be liable for additional damages.
Upon hearing the verdict, Nicklaus embraced family and friends, although he deferred media inquiries to his attorney.
Legal Insights
“It’s always hard in a defamation case to prove damages to reputation, because in particular for a guy like Jack, it’s always such a good one,” said Nicklaus’ attorney, Eugene Stearns, during an interview with ESPN. He emphasized the importance of the case, which stemmed from a dispute that began three and a half years ago when the company falsely claimed that Nicklaus was abandoning the PGA Tour for Saudi golf interests. “So, we’re happy that Jack’s been vindicated,” he added.
Background of the Allegations
The origin of the allegations can be traced back to a lawsuit filed by Nicklaus Companies against Nicklaus in New York, which gained traction in the media. Stearns pointedly told the jurors, “These are the people who planted a story. The story is a lie. … What that they wanted to create in the minds of the public is Jack Nicklaus is an old guy who sold out to the Saudis.”
Defense Claims
The attorneys for the defendants maintained that the executives had no intention of damaging Nicklaus’ reputation.
Company History
In 2007, Nicklaus’ company, Golden Bear International, was incorporated into the newly formed Nicklaus Companies through a $145 million transaction. Following Nicklaus’ retirement from his executive position in 2017, a five-year noncompete agreement was triggered, preventing him from endorsing products outside of his former company or designing new golf courses, according to the Palm Beach Post.
In 2022, Nicklaus sought arbitration to clarify his ability to use his name, image, and likeness, leading to a lawsuit from Nicklaus Companies for alleged breaches of agreement. The accusations related to LIV Golf were included in that legal action.
