Palau Newspaper Faces Defamation Lawsuit
By: Bernadette Carreon
Surangel and Sons Company has filed a civil lawsuit against the Palau-based newspaper Island Times, its publisher, and editor Leilani Reklai, alleging negligence and defamation.
According to the complaint filed by the company, Island Times and Reklai allegedly neglected their “journalistic duty to independently determine the truth or accuracy” of certain statements within an article but instead chose to publish them without verification.
The dispute centers on an October 29, 2024, article titled “Surangel & Sons Condemns Tax Report Leak as Privacy Violation.” https://islandtimes.org/surangel-sons-condemns-tax-report-leak-as-privacy-violation/ Although the article largely drew from the company’s press release, which condemned a recent tax report leak as a smear campaign and a violation of privacy, Island Times simply included context about the alleged leak. Surangel and Sons argue that the newspaper’s inclusion of details from the leaked document was misleading, claiming it contained “false and inaccurate information” and insisting the newspaper “should have known from the text and context” of the company’s release.
President Surangel Whipps Jr., who is running for re-election, asserted that Island Times should have explained the tax process instead of reporting information from the leak. Whipps’ stance on the Palau Goods and Services Tax (PGST) has been a key point of contention in his ongoing election race against former President Tommy Remengesau Jr., with both candidates sharply divided over the policy’s impact on businesses and consumers.
“I feel like the lawsuit is trying to control how the media here in Palau tells a story. I feel like we are being intimidated that we are being forced to speak a certain narrative rather than present diverse community perspectives,” Reklai said
Surangel and Sons are seeking compensatory and punitive damages, asserting that the monetary awards should be substantial enough to prevent similar conduct from the newspaper and Reklai in the future.
However, Reklai believes the lawsuit could have far-reaching consequences beyond just her and the publication, fearing it is an effort to suppress media freedom and control the narrative.
Reklai expressed that while the lawsuit could potentially bankrupt Island Times and have a chilling effect on media freedom in Palau and the Pacific, she is determined to fight it in Court.
“If I don’t stand up to this, it sends a signal to all journalists here that they risk facing claims for damages from powerful companies and government officials while carrying out their work,” Reklai said.
Following the lawsuit’s filing, Surangel and Sons announced in a Facebook post that it would no longer sell Island Times newspapers in its stores, citing the publication’s “failure to uphold journalistic standards and its publication of harmful misinformation.”
As of publication, the Office of the President had not responded to requests for comment on the matter.