Defamation Lawsuit Against Cardinals Dismissed by Judge

Federal Judge Dominic Lanza dismissed defamation claims filed by former Arizona Cardinals executive Terry McDonough, along with his wife Lynette and daughter Caroline, against the organization, its law firm Gallagher & Kennedy, and its public relations firm Counterpoint.

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Judge Lanza also granted the law firm and PR firm's motion to compel arbitration, which effectively removed the case from federal court.

This decision follows a 2024 arbitration ruling in which McDonough was awarded nearly $3 million after an NFL arbitrator appointed by Commissioner Roger Goodell, Jeffrey Mishkin, determined the Cardinals had defamed him.

The defamatory statement in question, issued by the team in a CounterPoint press release, accused McDonough of "extreme domestic violence," claiming he "abandoned responsibility" for his daughter and "cut her off financially."

As a result of this finding, McDonough was awarded $2.25 million in punitive damages, $600,000 for emotional distress, and $150,000 for reputational harm.

After this arbitration victory, McDonough, along with his wife and daughter, filed a new lawsuit, alleging defamation and other related claims against the Cardinals, Gallagher & Kennedy, and Counterpoint.

However, Judge Lanza ruled that McDonough's claims must be resolved through arbitration, in accordance with the arbitration clause in his previous employment contract.

Additionally, the judge dismissed the claims from McDonough's wife and daughter without prejudice, noting that they could potentially refile them with more detailed information, as the court found their initial complaint lacking sufficient details.

McDonough's legal team, led by attorney Mike Caspino, expressed their intention to appeal the ruling. Caspino emphasized that McDonough specifically avoided suing the team and owner Michael Bidwill, opting instead to target the external law and PR firms responsible for the defamatory statement.

The lawsuit stems from McDonough's earlier accusations against the Cardinals and Bidwill, including claims of retaliation for raising concerns about a scheme to use "burner phones" to bypass a suspension imposed on then-GM Steve Keim, who had been arrested for DUI.

The team, however, rejected McDonough's accusations, arguing that his "erratic behavior" had ultimately damaged his career. They also cited instances of what they deemed to be McDonough's volatile behavior, including an apology he sent to Bidwill following a confrontation.

In response to Judge Lanza's decision, the Cardinals issued a statement expressing satisfaction with the dismissal of McDonough's claims, saying, "We are pleased with the federal court ruling today in which a United States District Judge dismissed all of the McDonough claims against the team."

Previously, the team released a statement regarding the arbitration ruling, saying, "We are pleased with the arbitrator's decision dismissing all of Terry McDonough's employment claims and finding that there was nothing improper about his dismissal from the team."

The Cardinals also acknowledged that their initial statement about McDonough was too harsh but accepted responsibility for it, stating, "We respect the arbitrator's determination that our initial statement went too far. We accept responsibility for that statement and are grateful that the arbitration is now resolved."

McDonough worked with the Cardinals for ten seasons, including as vice president of player personnel.

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