A jury found Nebraska's Republican Party defamed one of its own candidates in 2020

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OMAHA, Neb. (AP) — A jury has found that the Nebraska Republican Party defamed one of its own candidates during an ugly legislative race five years ago and ordered it to pay her $500,000.

The Lancaster County jury sided with Janet Palmtag on Friday in her defamation lawsuit against the party. Palmtag sued after the Nebraska GOP sent out campaign mailers in October 2020 falsely claiming she had been charged with mishandling business trust accounts and had lost her Iowa real estate license.

At the time, Palmtag had been a lifelong Republican who was challenging fellow Republican and then-state Sen. Julie Slama of Peru, who had been appointed by and was backed by former Republican Gov. Pete Ricketts.

The race highlighted a growing schism within the state GOP, particularly between supporters of Ricketts and those of his predecessor, Republican Gov. Dave Heineman, who backed Palmtag in the legislative race.

The party's mailers, sent to about 3,200 households of registered voters, included statements that Palmtag “broke the law and lost her real estate license,” and that her license had been “revoked.” The mailers also described Palmtag as “too irresponsible to keep her license.”

The mailers grossly mischaracterized a 2018 disciplinary case out of Iowa that found Palmtag’s real estate brokerage firm responsible for improperly transferring funds from an Iowa account to a Nebraska one. It was not Palmtag but another real estate agent who worked for the firm that had made the improper transaction. The company paid a $500 fine for the oversight.

Two years later, Palmtag canceled her Iowa real estate license, citing a lack of business for her firm there. The decision was not related to the disciplinary case, she said.

Palmtag demanded corrections to the mailers, but the state party refused. She sued after losing the race to Slama, seeking more than $4 million.

A judge initially dismissed Palmtag's case, but upon her appeal, the Nebraska Supreme Court ruled last year that a jury should decide whether she was defamed.

Palmtag, who left the Republican Party following the dispute, argued that the campaign attack had not only cost her the race, but had hurt her business and personal life. The jury agreed, awarding $500,000 — a rare win for a defamation case involving politicians who are often seen as public figures and fair game in political attacks.

Palmtag's attorney, David Domina, has been a trial attorney in Nebraska for 50 years and said he has seen only a couple of defamation cases that led to significant awards for the person suing.

“I think it’s it’s about as scarce as hen’s teeth,” Domina said.

The Nebraska GOP has 30 days to decide whether it will appeal the jury's finding, and another 10 days to file for a new trial. After that, “Janet could start collection procedures," Domina said.

Nebraska GOP Chair Mary Jane Truemper, who was just elected to the post last month, said Monday that the state party is “in the investigative phase right now” of weighing whether it will appeal.