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No Winners In Rosie War

A judge ruled Wednesday that neither comedian and former talk show host Rosie O'Donnell nor the publisher of her former magazine deserves damages in their dispute over its demise.

Irene Cornell, of CBS station WCBS, reports that state Supreme Court Justice Ira Gammerman ruled he sees no need to award any money to either side, calling it an ill-conceived lawsuit originally brought by Gruner+Jahr USA, publisher of O'Donnell's magazine.

The lawsuit claimed O'Donnell had breached her contract by walking out on "Rosie," the magazine.

Minutes after both sides rested in the case, Gammerman issued his surprising ruling to conclude the bench trial.

"It seems to me ... we're just dealing with bragging rights here, who wins and who loses," Gammerman said.

The judge's remarks effectively left neither side as the victor in a trial where O'Donnell's image as the "Queen of Nice" took some hits and where the publisher was accused of manipulating the magazine's financial figures.
The judge did leave open the possibility that O'Donnell could ask for publisher Gruner+Jahr USA to cover her legal fees.

Gammerman said there was no evidence or testimony during the contentious trial indicating that either side had caused the other to suffer damages.

Gammerman's comments from the bench did not constitute an official verdict and were not legally binding, although he offered no indication to either side that he would reverse his opinion.

"This is a slap in the face to both sides and to their lawyers for bringing the case," says CBS News Legal Analyst Andrew Cohen. "Clearly, the judge felt that this was a personal dispute, that both sides were in part to blame and that it should not have involved the courts in the first place.

"Good for this judge, for recognizing that this was a dog of a case. He ruled that neither side deserved money from the other since neither side had legally damaged the other. And now he can focus his time and attention on cases that truly ought to be in court."

Both parties invested money, the magazine lost money, and then it folded, Gammerman said. "There's no evidence that the magazine would have made any money at all," he said.

"I have no vengeance toward the company. ... I'm simply happy about the fact that it is finally over," O'Donnell said afterward. She thanked the judge and vowed never to discuss the company ever again.

O'Donnell quit "Rosie" magazine in mid-September 2002, and the magazine, which began publishing in April 2001, folded with the December 2002 issue.

The publishers sued O'Donnell for $100 million, alleging breach of contract for walking away. She countersued for $125 million, saying G+J broke its contract with her by cutting her out of key editorial decisions.

Among the bitter testimony in the case was testimony by Cindy Spengler, a cancer survivor on the Rosie staff, who said O'Donnell suggested she was lying about goings-on at the magazine and told her liars get cancer. Outside court, O'Donnell said she had called Spengler the next morning and apologized for the cancer comment.

In another moment that raised eyebrows, the chief financial officer of G+J USA admitted that he recommended manipulating the magazine's financial performance in order to keep O'Donnell on board.

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