Bay Guardian Co. v. New Times Media LLC

The Bay Guardian and the San Francisco Weekly are competing alternative newspapers in the San Francisco Bay Area. Each paper relies on advertising revenue in large part to sustain the publication of the news weekly. San Francisco Weekly offered advertising to business entities at a rate lower than was provided by the Bay Guardian. Consequently, the Bay Guardian Company sued San Francisco Weekly for unfair competition under California law. It was successful and won a jury verdict of approximately $16 million.

This appeal has been taken by defendants New Times Media LLC (the New Times), San Francisco Weekly (the SF Weekly), and East Bay Express (the Express), from a judgment that awarded plaintiff Bay Guardian Company (the Guardian) damages in an action for violations of Business and Professions Code section 17043 based on sales of advertising at rates below cost for the purpose of harming a competitor. Defendants claim that the trial court erred by failing to admit defense evidence and properly instruct the jury on the essential element in a section 17043 action of proof of defendant’s ability to recoup losses. Defendants also argue that the court gave defective…