With Dan Rather stepping down and three CBS execs fired, you would think that the Memogate issue was closed? Well think again. Although asked to resign, they are not going without a fight writes Joe Hagan of the New York Observer.

Mr. Howard and two other ousted CBS staffers-his top deputy, Mary Murphy, and CBS News senior vice president Betsy West-haven't resigned. And sources close to Mr. Howard said that before any resignation comes, the 23-year CBS News veteran is demanding that the network retract Mr. Moonves' remarks, correct its official story line and ultimately clear his name.

Mr. Howard, those sources said, has hired a lawyer to develop a breach-of-contract suit against the network. Ms. Murphy and Ms. West have likewise hired litigators, according to associates of theirs, and all three remain CBS employees and collect weekly salaries from the company that asked them to tender their resignations. [...]

Legally, CBS and the ousted staffers are in an unusual stalemate: The network cannot be sued for breach of contract unless it actually fires them. Theoretically, the network could refuse to offer an apology or correct statements and simply drag its feet, continuing to write paychecks to the trio until their contracts expire. (Neither side would discuss how long the contracts are scheduled to last.)