My wife is an independent interpreter for the district court. Her triathlete training partner is a divorced man that is divorced because one of the judges in the district had an affair with his wife (and is now married to his x-wife). Well, the judge starts calling attorneys into his chambers and tells them that my wife is having an affair with her training partner. An attorney that is friends with me meets with me and tells me my wife is having an affair. I over react and now my wife is pissed at me! My wife is affraid to take legal action against the judge, as she may not be called to interpret anymore, but feels extremely uncomfortable around her co-workers and of course around this judge. Does she have a case for legal action against this judge?

This doesn't really fall under employment law. Defamation generally is considered personal injury; you might want to try posting it on the Personal Injury forum elsewhere on this site.