NY judge tosses billionaire Bacon's defamation case v Canada's Nygard

Wed Aug 10, 2016 5:24pm EDT
 
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By Jonathan Stempel

NEW YORK (Reuters) - A New York state judge on Wednesday threw out billionaire hedge fund manager Louis Bacon's $100 million defamation lawsuit against Canadian fashion designer Peter Nygard, saying the case tied to their long-running feud over neighboring properties in the Bahamas belongs there.

Bacon, the founder of Moore Capital Management LP in New York, had accused Nygard in the lawsuit of engineering a "malicious" smear campaign against him including street rallies, bogus YouTube videos, and attempts to falsely link him to arson, bribery, drug smuggling, the Ku Klux Klan and murder.

That prompted Nygard, the chairman of Winnipeg-based Nygard International, to file a $50 million countersuit accusing Bacon of pursuing a "vendetta" against him.

Each man has denied the other's claims. Wednesday's decision may spell an end to the New York state court litigation.

Supreme Court Justice Cynthia Kern in Manhattan wrote that while Bacon is a New York resident, the Bahamas is a "more appropriate forum" for his case.

She said this was because most of the actions that Bacon accused Nygard of undertaking to further his alleged smear campaign occurred in the Bahamas, and most of the potential witnesses live there.

Bacon has opposed Nygard's effort to expand his property in the Bahamas' gated Lyford Cay community, following a 2009 fire.

Some environmental groups and residents have said an expansion may damage the surrounding ecosystem and beaches.   Continued...