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A federal appellate court Monday overturned a jury's $1.8 million award to former Minnesota Gov. Jesse Ventura in a defamation case, sending it back for a new trial that would reopen a legal fight over an unflattering mention in the best-selling "American Sniper" book.

The decision by the 8th Circuit Court of Appeals ruling hinged on statements Ventura's attorneys made during the trial about the possibility a book publisher's insurance could be used to cover any damages. The appeals court also said "unjust enrichment" damages won by Ventura should not have been allowed.

 against the estate of Chris Kyle, a Navy SEAL whose autobiography described him punching Ventura at a 2006 military gathering. Ventura denied the encounter occurred and sued. Kyle died before the case went to trial but claims against his wife, Taya, carried forward.

During the trial, Ventura's team pressed witnesses for the book's publisher, HarperCollins, about the possible existence of an insurance policy to cover any defamation award. Kyle's attorneys objected to having a jury hear that line of questioning and sought to have a mistrial declared, but that was denied.

After extended deliberations, a split jury awarded Ventura $500,000 on the defamation claim and more than $1.3 million as a recognition that Kyle was unjustly enriched by claims made in his book.

In their majority opinion, Appeals Judges William J. Riley and Bobby E. Shepherd said remarks by Ventura's team during cross-examination and closing arguments were improper and "prevented Kyle from receiving a fair trial. The district court clearly abused its discretion in denying a new trial."

Furthermore, the appeals court ruling said Ventura wasn't entitled to recover all that money.

"We cannot accept Ventura's unjust-enrichment theory because it enjoys no legal support under Minnesota law," they wrote." "Ventura's unjust-enrichment claim fails as a matter of law."

Dissenting to parts of the opinion, Judge Lavenski R. Smith said he would have upheld the $500,000 defamation award. He said the remarks about insurance coverage were, "at most, harmless and non-prejudicial." He added that Kyle's attorneys failed to make its mistrial request in time.

Messages left with Ventura's attorney were not immediately returned.

An attorney for Kyle referred questions to a HarperCollins publicist, Erin Crum. In an email, Crum declined to comment and said the publishing company was reviewing the opinion.

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Brian Bakst

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