Posted by Eugene Volokh:
Florida City Authorizes Use of City Funds to Sue for Libel of Government 
Officials:
http://volokh.com/archives/archive_2009_02_22-2009_02_28.shtml#1235410395


   From the [1]Deltona (Florida) [2]City Commission After Action Agenda
   (Feb. 16, 2009):

     After discussion, the Commission voted 4 to 3 (Commissioner
     Denizac, Commissioner McFall-Conte, and Commissioner Zischkau voted
     against the motion) for the City to provide reimbursement and
     expenditures of legal fees to protect both proactively and
     reactively the City as a government including its employees and its
     Mayor and those members who wish to be represented in the this
     motion, Commissioner Treusch, Commissioner Deyette, Vice Mayor
     Carmolingo and Mayor Mulder where needed from material damages,
     slanderous or libelous comments or claims and unsubstantiated
     allegations past, present and future where the Mayor feels is
     needed and that a report of fees expended be made available to the
     public so they may see the extent of damage that has been caused.

   Here's [3]audio of the Mayor's presentation in favor of the
   resolution. The proposal was apparently triggered by [4]online
   criticism of various city officials.

   Libel lawsuits by government officials are of course constitutionally
   permitted, and may prevail if the statements are found to be false and
   defamatory factual assertions, and the speaker is found to have known
   the statements were false or to have known that the statements were
   likely false. There's no First Amendment rule that would bar
   government agencies from funding such lawsuits. And there's a
   plausible argument that the lawsuits serve city interests (and thus
   justify reimbursement) and not just private interests, since libels of
   city officials may indeed interfere with the effectiveness of city
   government, and since city officials may have been victimized by the
   libels -- if they are libels -- because of their government service.

   At the same time, this strike me as a bad idea, especially since the
   city doesn't offer to fund the defense of such libel lawsuits, even
   though defense of the lawsuits -- especially a successful defense --
   may also serve government interests: Speech that accurately criticizes
   city officials serves city interests, too, by alerting the public to
   possible malfeasance by government officials. And defending such
   speech against unfounded libel lawsuits would likewise city interests,
   by minimizing the deterrence of such speech. (I do not read Florida's
   [5]limited anti-SLAPP statute as already providing such reimbursement
   to successful defendants.)

   The government's entering the debate, using city funds, in favor of
   city officials and against citizens who criticize those officials,
   thus seems to me to be misguided. And one site that is critical of
   officials [6]argues that it violates [7]the city charter:

     (a) Compensation. The Mayor and members of the City Commission
     shall receive annual compensation, payable bi-weekly, equivalent to
     average annual salary of the Mayor and Commissioners in the cities
     within Volusia County. Said compensation shall not include
     benefits, except medical benefits under the City's group health
     insurance plan, the premium costs of which shall be fully paid by
     the members of Commission who elect coverage. Said compensation
     shall be identified as a line item within the annual budget and
     shall be automatically adjusted every two years coincident with
     adoption of the annual budget.

     (b) Expenses. The Commission may provide for reimbursement of
     actual expenses incurred by its members while performing their
     official duties.

References

   1. http://en.wikipedia.org/wiki/Deltona,_Florida
   2. 
http://deltona.zgraph.com/download.cfm?DownloadFile=8AC5749A-9747-238D-E2A73510000CD95F
   3. 
http://deltonabonafide.com/audio/2009/DeltonaRCM-20090216-mulderparanoia.mp3
   4. 
http://www.orlandosentinel.com/news/local/volusia/orl-loc-deltona-lawsuit-dennis-mulder-022109,0,6194948.story
   5. 
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=Ch0768/SEC295.HTM&Title=-%3E2007-%3ECh0768-%3ESection%20295#0768.295
   6. http://deltonabonafide.com/news.htm#open%20letter
   7. 
http://www.deltonafl.gov/go/deltona-sections/departments/city-clerk/city-charter

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