One might find it challenging to draw a line connecting rapper Cardi B and conspiracy theorist Alex Jones, but a provision in federal bankruptcy law that has little public attention could significantly impact their financial situations by millions of dollars. Recently, Jones was forbidden by a judge from leveraging bankruptcy to avert the payment of $1.1 billion he was ordered to pay the parents of the victims of the Sandy Hook massacre for airing false claims about them on his show. This ruling came approximately two weeks after Cardi B achieved a substantial victory in her fight to recover almost $3 million from a blogger who falsely claimed among other things, that the singer was a prostitute and infected with herpes.
In both of these cases, the judges contemplated whether the alleged defamation constituted “willful and malicious injury,” a provision in bankruptcy law that stops individuals from evading their liabilities. These cases, though not unheard of, underscore the confluence of bankruptcy law, defamation, and popular culture, particularly in an era where social media platforms have turned every user into a potential content publisher.
Christopher D. Hampson, a bankruptcy professor at the University of Florida, notes that “it’s under-appreciated that bankruptcy doesn’t get people out of all these kinds of debts.” Although Jones filed for personal bankruptcy in December, he and his attorneys argue that his comments weren’t malicious. However, Judge Christopher M. Lopez of the US Bankruptcy Court for the Southern District of Texas ruled that Jones is still responsible for $1.1 billion of the $1.4 billion defamation judgments. Despite potential appeals, Jones’ creditors could spend their whole lives trying to collect the payment.
In contrast, Cardi B (whose real name is Belcalis Marlenis Almanzar) secured an easier victory. She managed to obtain $3.4 million from Latasha Transrina Kebe (also known as Tasha K) after suing her for slander, defamation, and invasion of privacy.
These cases illuminate that the forgiveness of defamation judgments in bankruptcy is multi-layered. While “it happens” that people can resort to bankruptcy to absolve their liabilities, former bankruptcy judge Bruce Markell warns about potential complexities that arise in defamation judgments and urges attorneys to understand all the bankruptcy angles involved.