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Pa. beauty queen says she's shocked by $5M ruling

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December 30, 2012 01:45 PM EST | AP


PITTSBURGH — A Pennsylvania beauty queen who resigned after alleging that the Miss USA pageant had been fixed says she is stunned by an arbitrator's ruling that she must pay the pageant organization $5 million for defamation.

Arbitrator Theodore Katz says Monnin's allegations that finalists had been selected in advance were false, harmful and malicious and cost the pageant a $5 million fee from a potential 2013 sponsor.

Monnin points to a Miss USA contract clause giving top pageant officials the power to pick the top five finalists and the winner, but a company official calls that a catch-all that's never been used.