Former PBS Host Must Pay $1.5 Million Under Morals Clause: Jury

Former talk show host Tavis Smiley must pay $1.5 million to the Public Broadcasting Service for the reputation damage resulting from his alleged sexual misconduct, a jury ruled, marking the first such verdict to test a company’s “morals clause” in the #MeToo era.

At the root of the case was PBS’s claim that Smiley breached a clause in his contract after multiple allegations of misconduct were reported against the former late-night show host. He was fired from the company in December 2017, as part of a wave of high-profile accusations against powerful figures in business and media that bubbled up at the advent of the #MeToo movement.

Smiley accused PBS in D.C. Superior Court of racial bias and wrongful termination. The network then countersued. Central to the case was the “morals” clause that the company requires employees to sign, prohibiting employees from acting in a way that would impact the network. Such clauses are used in endorsement contracts and for executives or those who represent the company in a public way.

Morgan, Lewis & Bockius confirmed the verdict to Bloomberg Law. The firm said the case is a complex one that delves into the bounds of what is good conduct, if consensual relations were covered under the morals clause, and how to put a monetary figure on reputational damage.

“With this jury verdict for PBS, companies now have another tool in their arsenal to ensure a safe and respectful workplace culture,” said Morgan Lewis partner Grace Speights. “Especially in the entertainment industry, the enforcement of the morals clause in contracts hadn’t been previously tested in courts. This decision could impact the next wave of litigation in the #MeToo movement.”

Smiley’s attorney was Jeffrey Robinson of Lewis Baach Kaufmann Middlemiss. John Rubiner and Ronald Sullivan of Harvard Law School were his counsel at trial. Speights represented PBS along with Morgan Lewis partner Brad Nes, and associates Amanda Robinson and Elliott Brown.

The case is TS Media, Inc. v. Public Broadcasting Service, D.C. Super. Ct., 2018-CA-001247, 3/4/20.