Imus May Sue CBS, Get $40 Million Payday

Fired talk show host Don Imus could file a lawsuit against CBS within a month over the $40 million remaining on his contract, according to a source familiar with the contract.

CBS lawyers argue that Imus was fired for cause – his disparaging remarks about the Rutgers women’s basketball team – and therefore he is not entitled to the money.

But as NewsMax reported earlier, Imus has hired Martin Garbus, one of the nation’s leading trial lawyers and a First Amendment specialist.

Garbus’ strategy could focus on language in the $10-million-a-year contract Imus signed in 2006, according to the source. The language stipulates that Imus should receive a warning before being fired for making off-color jokes, the source who has seen the contract told Fortune magazine. The source called it a "dog has one-bite clause.”

But that approach could ultimately fail because Imus’ comments were carried on the public airwaves, which are subject to Federal Communications Commission regulations.

Garbus is "a First Amendment lawyer who’s argued many important cases,” attorney Lynne Bernabei, who has represented plaintiffs in employment disputes, told Fortune.

But "in my mind there is a big difference between someone who is under contract and is under FCC regulations and someone who speaks out in town hall.”

Then there is the question as to whether or not Imus actually was given a previous warning about offensive remarks, Fortune points out.

For one, Imus once referred to PBS anchor Gwen Ifill, who is black, as a "cleaning lady.”