Denton isn’t covered for any fees, damages or other losses from lawsuits by Gawker, as the company has claimed, Hogan said. In fact, one agreement between the media company and its founder “expressly disavows indemnification for misconduct and gross negligence,” which he was found guilty of as part of the sex-tape suit, Hogan said. If Gawker was a responsible company, it would contest the agreements to cover Denton’s costs, Hogan added.
The $200,000 loan to Denton to pay for personal bankruptcy counsel was made without forcing him to put up any collateral, according to the objection. Meanwhile, the company has to pay an interest rate approaching 30 percent for its own loan to fund operations, Hogan’s lawyers wrote.
Denton is liable along with Gawker and another former Gawker employee for the $115 million compensatory part of the judgment, according to court papers.
The case is In re Gawker Media LLC, 16-11700, U.S. Bankruptcy Court, Southern District of New York (Manhattan).