Why did Jerry Falwell take Larry Flynt to court?

Hustler Magazine, Inc. v. Falwell, 485 US 46 (1988)

Jerry Falwell filed a civil suit against Larry Flynt, publisher of Hustler Magazine, for running a Compari liquor ad parody that featured a photo of Falwell and a mock interview with the preacher. In the satirical piece, the "Falwell" character implied he lost his virginity to his mother during a drunken encounter in an outhouse. The ad (see Related Links) could subjectively be considered offensive, but the US District Court jury found it didn't qualify as libel because the scenario was preposterous and the magazine made no attempt to present the information as fact.

Despite finding Flynt not guilty of libel, the jury awarded Jerry Falwell a total of $200,000 in compensatory and punitive damages for two counts of intentional infliction of emotional distress.

The US Court of Appeals for the Fourth Circuit affirmed the District Court decision and upheld the damages, then refused Flynt's petition for rehearing on First Amendment grounds. The US Supreme Court ultimately overturned the lower courts ruling, holding that public figures cannot collect damages for "emotional distress" in the absence of a finding of libel with "actual malice," a standard set in New York Times v. Sullivan, 376 US 254 (1964).

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