The church contended that the writer was biased and only interviewed critics. Scientology, founded by science-fiction writer L. Ron Hubbard, requires members to take classes and counseling that can cost thousands of dollars.
The May 1991 article entitled, ``Scientology: The Cult of Greed,'' said that the so-called religion is ``really a ruthless global scam.''
Time said the cover story was awarded the Gerald Loeb Award for distinguished business and financial journalism, the Worth Bingham Prize and the Conscience in Media Awards from the American Society of Journalists and Authors.
The church had said the story had multiple defamatory comments.
``While in the past certain church officials concededly committed improper acts ... most of the allegations of past misconduct were false and distorted, the result of the misunderstanding, suspicion and prejudice that typically greet a new religion,'' the church told the Supreme Court.
A judge had dismissed the lawsuit and the 2nd U.S. Circuit Court of Appeals ruled that Time was not guilty of writing the report with actual malice, which is the standard for libel cases involving public groups or people.
The church told the Supreme Court that the rulings ``rather than encouraging the search for truth, provide a safe harbor for biased journalism.''
The case is Church of Scientology International v. Time Warner Inc., 00-1683.
