UPDATE 4-Jury rejects Sarah Palin's claim against NY Times, agreeing with judge

(Adds details from court proceedings, comment from judge)

By Jody Godoy and Jonathan Stempel

NEW YORK, Feb 15 (Reuters) - A U.S. jury on Tuesday ruled against Sarah Palin in her defamation lawsuit against the New York Times over a 2017 editorial that incorrectly linked her to a mass shooting, after the presiding judge said he would dismiss the case regardless of the verdict.

Jurors in Manhattan federal court needed about two days to unanimously find that the Times was not liable to Palin, the former Alaska governor and 2008 Republican U.S. vice presidential candidate.

Palin was expected to appeal.

Her case is considered a major test of longstanding libel protections for American media, including a landmark 1964 U.S. Supreme Court decision, New York Times v Sullivan.

That decision established an "actual malice" standard for public figures like Palin to prove defamation, meaning that media knowingly published false information or had a reckless disregard for the truth.

On Monday, U.S. District Judge Jed Rakoff in Manhattan said Palin had not met that "very high" standard, even as he faulted the Times for "very unfortunate editorializing" in the editorial.

He said letting the jurors reach a verdict could avoid complications should Palin appeal.

Rakoff told the jury about his planned dismissal only after they had finished deliberations.

"We reached the same bottom line, but on different grounds," he told jurors. "You decided the facts. I decided the law."

The trial lasted nine days.

Palin viewed the case in biblical terms, testifying on Feb. 10 that she considered herself the underdog to the Times' Goliath.

She sued the Times and its former editorial page editor James Bennet over a June 14, 2017, editorial that incorrectly linked her to a January 2011 mass shooting in Arizona that killed six people and wounded Democratic U.S. congresswoman Gabby Giffords.

It was written after a gunman opened fire at a congressional baseball practice in Virginia, wounding several people including Republican U.S. congressman Steve Scalise.

The editorial referred to a map circulated by Palin's political action committee before the Arizona shooting that put the districts of Giffords and 19 other Democrats under cross hairs.

Bennet added to a colleague's draft that "the link to political incitement was clear," though there was no evidence the map motivated the gunman.

The Times corrected the editorial the next morning after readers and one of its columnists complained.

Bennet testified that he did not intend to harm Palin and felt terrible about the mistake.