In a significant development from Omaha, Nebraska, a jury has determined that the Nebraska Republican Party defamed one of its candidates in a contentious legislative race from five years ago, resulting in a $500,000 compensation. This verdict came after Janet Palmtag filed a defamation lawsuit against the party, stemming from misleading campaign materials sent out in October 2020. These mailers falsely accused Palmtag of being charged with mishandling business trust accounts and having her Iowa real estate license revoked.
At the time of the allegations, Palmtag was a lifelong member of the Republican Party and was contesting against fellow Republican, then-state Senator Julie Slama of Peru. Slama had been appointed and endorsed by former Republican Governor Pete Ricketts. The race exposed rifts within the state GOP, particularly among Ricketts’ supporters and those favoring his predecessor, Republican Governor Dave Heineman, who supported Palmtag in the campaign.
The contentious mailers, distributed to approximately 3,200 households of registered voters, levied accusations stating that Palmtag “broke the law and lost her real estate license.” They further stated that her license had been “revoked” and labeled her as “too irresponsible to keep her license.” These claims grossly distorted a 2018 disciplinary action in Iowa that implicated Palmtag’s real estate brokerage in unauthorized fund transfers between state accounts. However, it was another agent at her firm responsible for the improper transaction, which led to the company paying a $500 fine for the infraction.
In 2020, Palmtag voluntarily canceled her Iowa real estate license due to insufficient business activity, a decision unrelated to the disciplinary case. Despite Palmtag’s requests for corrections, the party refused to amend the mailers. After losing the race to Slama, Palmtag initiated a lawsuit demanding over $4 million in damages.
Initially, a judge dismissed Palmtag’s suit, but on appeal, the Nebraska Supreme Court mandated a jury trial to ascertain if defamation had occurred. Palmtag, who subsequently exited the Republican Party, argued that the false accusations not only resulted in her electoral defeat but also damaged her business and personal life. The jury concurred, awarding her $500,000 – an unusual outcome for defamation litigations involving political figures, who are often assumed to be open to public criticism.
Attorney David Domina, representing Palmtag, noted the rarity of such substantial defamation awards in his 50-year career, comparing it to finding “hen’s teeth.” The Nebraska GOP now has 30 days to determine whether it will challenge the jury’s decision, with an additional 10 days to request a new trial. Subsequently, Palmtag could initiate collection steps, Domina stated.
Newly appointed Nebraska GOP Chair Mary Jane Truemper, who assumed leadership in the past month, indicated on Monday that the party is currently “investigating” the possibility of filing an appeal.