The Supreme Court of Palau has officially dismissed a defamation lawsuit that businessman Surangel Whipps Sr brought against Island Times and its publisher, Leilani Reklai. The court issued an order on October 23, 2025, following a motion from Whipps Sr to voluntarily withdraw his lawsuit. As part of the dismissal, the court mandated that Whipps Sr should cover a portion of the defendants’ legal costs, while also deeming the defendants’ motion for partial summary judgment moot.
This legal dispute began in October 2024, shortly before Palau’s general elections, when Island Times published an article detailing leaked financial information from Surangel and Sons Company. The article included a statement from the company denouncing the leak as an invasion of privacy and featured excerpts from the leaked tax documents.
During a deposition on April 21, 2025, Whipps Sr expressed his decision to withdraw the lawsuit, stating he was “no longer suing” the defendants. Despite this, legal proceedings continued for several months until the case was formally dismissed. In its ruling, the court emphasized that Whipps Sr faced a significant challenge in substantiating his defamation claim and acknowledged the news outlet’s role in reporting on matters of public interest in a manner that was not unreasonable.
While this decision closes one chapter in the legal battle initiated by Whipps Sr, it is noteworthy that Island Times has filed a countersuit against Surangel and Sons Company for defamation, which remains active. The defendants had to prepare their defense for nearly a year before the lawsuit was formally retracted, reflecting the complexities and prolonged nature of legal disputes.
This case underscores the delicate balance between freedom of the press and individual reputations, reinforcing the judiciary’s commitment to upholding public accountability and transparency. The ongoing countersuit may further illuminate issues surrounding media freedom and corporate conduct, fostering a dialogue on the importance of responsible reporting and the protection of reputational rights in the public sphere.