Media shield law enforced in Adelson defamation case

Tuesday, Feb. 3, 2009 | 2 a.m.

A federal magistrate has rejected an attempt by Sheldon Adelson to force a Las Vegas Sun reporter to give a deposition in a defamation suit the casino mogul filed in Las Vegas against a former employee.

Siding with Sun lawyers, U.S. Magistrate Peggy Leen concluded in an eight-page order Friday that Nevada’s media shield law protected the reporter, Rick Velotta, from having to testify.

Velotta had written stories in 2004 about a legal dispute in Israel between Adelson and the former employee, Moshe Hananel, who claimed Adelson owed him money for helping Adelson get into the lucrative Macau gambling market. Adelson later filed the defamation suit here against Hananel, calling the Macau claim “preposterous on its face” and accusing Hananel of making false statements about their relationship in interviews with Velotta and other Las Vegas media members.

Attorney Ryan Loosvelt, who represents Adelson in the suit, noted in December court papers that he wanted to question Velotta about matters the attorney contended were not covered under the shield law, including the reporter’s education, experience and news gathering practices, and the news gathering practices of the Sun.

But Leen concluded in last week’s order that this was “merely an attempt to obtain indirectly what Adelson may not obtain directly under” the shield law. At the request of Sun attorney Mitchell Langberg, she quashed the subpoena requiring Velotta to give the deposition.

Sun Managing Editor Mike Kelley said the magistrate “made the right ruling in this case.”

“The Sun will always battle to uphold the free press principles embodied in the Nevada reporters’ shield law,” Kelley said. “Any efforts to misuse our reporters will be vigorously opposed.”

Langberg added: “The magistrate has confirmed once again that Nevada’s shield law is an ironclad protection for reporters in their news-gathering efforts.”

Loosvelt did not return the Sun’s calls regarding whether he will file a challenge to Leen’s order with Senior U.S. District Judge Edward Reed Jr., who is presiding over the defamation suit.