Haywood v. St. Michael’s College

Date: 

07/24/2012

Threat Type: 

Lawsuit

Party Receiving Legal Threat: 

St. Michael's College, Christopher Hardy, Logan Spillane

Type of Party: 

Individual

Type of Party: 

Individual
School

Court Type: 

Federal

Court Name: 

United States District Court for the District of Vermont

Case Number: 

2:12-cv-00164

Verdict or Settlement Amount: 

$0.00

Legal Counsel: 

Jeffrey J. Nolan and W. Scott Fewell (Dinse, Knapp & McAndrew) (for Saint Michael’s College), William B. Towle (Ward & Babb) (for defendants Spillane and Hardy)

Publication Medium: 

Website

Relevant Documents: 

Status: 

Pending

Disposition: 

Dismissed (total)

Description: 

In January 2012, a professor at St. Michael's College posted a profile of John D. Haywood, a candidate for President of the United States in the New Hampshire Democratic primary, to a college-owned website. His students, Logan R. Spillane and Christopher Hardy, had written the profile of Haywood to fulfill a requirement for a journalism class. In preparing to write the article, the students had spoken to Haywood on the phone, interviewed several of his associates in his home state of North Carolina, and read his campaign website.

On July 24, 2012, Haywood filed a pro se lawsuit for libel against St. Michael's College, Spillane, and Hardy, alleging that the profile of his candidacy contained false statements about his policy positions, and that this profile injured his reputation and reduced his chances of winning the election. He identified sixteen allegedly false statements, including that Haywood had offered "a solution to global warming which is to spray particles into the atmosphere as a way to reflect the sun's heat back into space, which, in his opinion, would cool the earth." Haywood denied that he ever claimed to have the solution to global warming. Instead, he identified particle insertion as "one of the most promising areas for research" into how to cool the planet.

Haywood also claimed that the students' efforts to contact his associates in North Carolina for comment were evidence of malice, because Haywood was trying to keep his candidacy a secret from his associates. The students' actions harmed him, he asserted, because they informed his friends and family, many of whom are Republicans, that he was running for president in a Democratic primary.

Haywood sought $120,202.15 to fully reimburse his advertising costs, an additional $1,000,000 in damages for the reputational injury he suffered in his community, and $50,000,000 in punitive damages.

The students and the college filed special motions to strike under Vermont's state anti-SLAPP statute, 12 V.S.A. § 1041. Both the students and the college argued that the lawsuit fell within the statute's scope, as "a suit arising from the defendant's exercise, in connection with a public issue, of the right to freedom of speech." 12 V.S.A. § 1041(a). The students' brief argued that that the fact that Haywood was running as a Democrat in New Hampshire is both undisputed and public, and therefore should not form the basis of a libel claim, and that the other claims of falsity were "quibbles and nitpicks." Both briefs argued that the suit was an improper attempt by the plaintiff to prevent the description of his policy stances in a manner he did not approve and asked the court to dismiss the libel claims and award costs and reasonable attorney's fees for all work associated with litigating the claims.

Haywood filed a response opposing the special motions to strike, arguing that it was the defendants who had had violated his First Amendment rights. Specifically, he claimed that the defendants infringed his right to expression by publishing a profile which may have led to "untold multitudes" not to read his webpage. Haywood further stated that the defendants had "no right to appeal an interlocutory order dismissing the motion under 12 V.S.A. section 1041 (g) as the federal courts of appeal are governed by the Interlocutory Appeals Act."

The college replied to Haywood's response, noting that the motion to strike "is not an appeal and § 1041(g) is not relevant at this time." However, the college argued that, "to the extent Plaintiff is arguing that 12 V.S.A. § 1041 is a state statute that incorporates aspects of state procedure, the District Court for the District of Vermont has already ruled that this is no bar to bringing an anti-SLAPP motion to strike in federal court," citing to Bible & Gospel Trust. 1:07-CV-17, 2008 WL 5245644 (D. Vt. Dec. 12, 2008).

On Sept. 26, 2012, St. Michael's college filed a motion to dismiss. The motion argued for the application of North Carolina defamation law, because the alleged defamation constituted an "aggregate communication," as it was published online, and Haywood was domiciled in North Carolina at the time of publication. The college further argued that, as a matter of law, the profile was not libel per se under North Carolina law, because all of the disputed statements, when considered on their face, and without reference to the context surrounding the publication, were simple descriptions of policy positions which did not subject Haywood to ridicule or disgrace.

The college also argued that, even if Vermont or New Hampshire law applied, the defendants' statements would not be defamatory, because they would not tend to lower the plaintiff in the esteem of a respectable group of people.

Finally, the college argued that Haywood is a public figure and therefore must show that the defendants acted with actual malice, knowing the statement was false or acting with reckless disregard for the truth. Haywood could not show actual malice, it argued, because the complaint contained nothing more than "naked assertions " that did not constitute even a "bare factual showing that the Defendant purposefully acted without concern for the truth."

The students also filed a motion to dismiss, which the college joined. The students' motion noted that the only evidence of actual malice cited in Haywood's brief was an allegation that the students interviewed his associates in North Carolina "for one purpose only: pressuring the Plaintiff from continuing his campaign." The students argued that these interviews were not evidence of malice, but were part of standard journalistic practice. The students also argued that the complaint did not allege injury for which damages could be awarded, arguing that "[i]t is not a reasonable inference nor reasonably foreseeable nor a proximate cause that a St. Mike's freshman journalism class assignment actually derailed a fringe candidate's campaign to unseat an incumbent President."

Following Haywood's filing of an amended complaint, which further addressed the embarrassment allegedly caused by the statements at issue, both the students and the college renewed their motions to dismiss and their motions to strike.

Haywood responded to the renewed motions, reiterating his prior arguments and alleging that the special motions to strike were frivolous and intended to delay and that costs should be awarded if he was required to travel to a hearing on the Motion to Strike.

On December 14, 2012, after supplemental briefing on the anti-SLAPP provision, the court issued an opinion and order granting the defendants' renewed motions to dismiss the amended complaint for failure to state a claim and defendants' special motions to strike under Vermont's anti-SLAPP statute. The Court awarded the defendants costs and reasonable attorney's fees.

In evaluating the 12(b)(6) motions to dismiss, the court ruled that Vermont law indicated that the law of the state where the plaintiff was domiciled controlled. However, it noted that special damages can occur in more than one jurisdiction. It therefore ruled that Haywood could seek damages for the loss of the election under New Hampshire law, and for his reputational injury under North Carolina law. However, the court determined that Haywood's claim must be dismissed under either North Carolina or New Hampshire law.

The court held that Haywood failed to state a libel claim because: (1) his claim did not satisfy the elements of libel under North Carolina law; (2) his claim did not establish the state of mind or injury elements of a libel claim under New Hampshire law; and (3) his claim did not establish that the profile was written or published with actual malice.

The court held that the profile was not libel under North Carolina law because it did not impugn the plaintiff's character, finding that the policy positions described in the profile were, in many cases, "simply a hair's breadth away from Plaintiff's true position," and not "so outlandish" that they would expose him to public hatred, contempt, or ridicule. The court also found that Haywood had not identified any contextual elements that would alter a reader's understanding of the profile and provided "no factual underpinnings to his conclusory allegation that the student Defendants intended to defame Plaintiff." Rather, the court found that the "students had a contrary motive, as they submitted the Profile in fulfillment of an assignment in journalism, a profession that relies on factually accurate reporting. They had nothing to gain, and a grade to lose, by writing falsehoods." Finally, the court concluded that "[d]amages are particularly "speculative and uncertain" in this case, given that Plaintiff lost the election by a significant vote ratio (more than 116 to 1)." Aycock v. Padgett, 516 S.E.2d 907, 910 (N.C. Ct. App. 1999) ("[t]he notion that the loss of an election constitutes special damages for which a court may grant relief is far too speculative and uncertain to entertain.").

The court also held that the profile was not libel under New Hampshire law, because New Hampshire law requires the plaintiff to demonstrate an injury to his reputation, and the only reputational injury Haywood alleged was that his friends and family discovered that he was running as a Democrat.

The court also found that Haywood failed to satisfy his burden to prove the students' state of mind. A New Hampshire plaintiff can only recover compensatory damages if he shows the defendants were negligent, and Haywood did not allege negligence. The court likewise found that Haywood could not meet the heightened standard for defamation that applies to public figures under the First Amendment. The court noted that, as a person running for the highest public office in the country, Haywood was a public figure for purposes of defamation law and needed to establish by clear and convincing evidence that a defamatory falsehood was made with actual malice. His allegations that the students contacted his associates to pressure him into ceasing his campaign did not rise above a speculative level, as there was "no immediately apparent reason why the student Defendants would have such a motivation." The court concluded that Haywood was conflating the actual malice standard with malice in the colloquial sense and overlooking the fact that the reckless disregard standard is subjective and requires an assessment of the defendant's actual state of mind.

The court then turned to the motions to strike under Vermont's anti-SLAPP law. The court noted that some federal courts have decided that state anti-SLAPP provisions conflict with the Federal Rules of Civil Procedure and have therefore declined to apply them in federal court. However, the District Court followed the District of Vermont's earlier holding in Bible & Gospel Trust that there is no direct conflict between the Vermont anti-SLAPP statute and the Federal Rules, and that "the state interest outweighs any federal interest."

In evaluating the merits of the anti-SLAPP motions, the court looked primarily to California precedent interpreting an analogous anti-SLAPP provision, because the Vermont Supreme Court had not interpreted the Vermont anti-SLAPP statute.

The court concluded that the defendants met their threshold burden of proving that their conduct is protected by the anti-SLAPP statute because (1) the profile was published in a public forum, and (2) the publication was in furtherance of the students' right to free speech and involved speech concerning a public issue. Citing CA law, the court found that "[a]n Internet website that is accessible to the general public ...is a public forum." Cole v. Patricia A. Meyer & Associates, APC, 206 Cal. App. 4th 1095, 1121 (Cal. App. 2d 2012).

The court also found that "it is clear that the writing of the profile was an exercise of the students' freedom of speech." It noted that California courts have identified three categories of speech concerning a public issue: (1) the subject of the statement precipitating the claim was a person or entity in the public eye; (2) the statement precipitating the claim involved conduct that could affect large numbers of people beyond the direct participants; and (3) whether the statement or activity precipitating the claim involved a topic of widespread public interest." Wilbanks, 121 Cal. App. 4th at 898.22. The students' speech concerned a public issue under all three definitions: (1) as a candidate for President, Haywood was in the public eye; (2) Haywood's candidacy had the potential to affect large numbers of people; and (3) the election (and each issue addressed in the profile) was a topic of widespread public interest.

Finding the Plaintiff's burden satisfied, the court then considered whether the plaintiff could prove that: (1) the defendant's exercise of his or her right to freedom of speech was devoid of any reasonable factual support and any arguable basis in law; and (2) the defendant's acts caused actual injury to the plaintiff. The court found that Haywood failed to make that showing.

The statements in the profile had reasonable factual support, according to the court, because they were quite similar to the statements on Haywood's campaign website. The court further found that defendants' speech had a "decidedly firm basis in law" because, as it ruled in granting the defendants' motions to dismiss, Haywood's claim was not legally sufficient. Finally, court found that the actual injury Haywood alleged was "highly speculative, considering that he lost the primary by an overwhelming margin; the Profile was published only on the St. Michael's College website; and Plaintiff's alleged reputational injury derived primarily from a true statement contained in the Profile."

Finally, the court held that the defendants were entitled to the entirety of their attorney's fees and costs, not just those relating to the litigation of the anti-SLAPP motions. The court's analysis of Vermont law governing other fee shifting provisions led him to conclude that the Vermont courts would interpret the fee-shifting clause broadly. The court held that the legal work on the various motions was "inextricably linked," and "severance of the work ... is untenable." Finally, the court held that this interpretation of the fee shifting provision advanced "the policy of the anti-SLAPP statute, as it guarantees that costly litigation will not chill protected expression."

Haywood filed a notice of appeal pro se on Jan. 2, 2013.

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Heads Up, Online Radicals -- You're Next

For me, thinking about one of the Obama administration's latest initiatives to keep us all safe online is like one of those pattern recognition puzzles (you know, like "What is the next term in this sequence: O, T, T, F, F, S, S, E, N, __?").  Here, the sequence is:

cyber bullies, scammers, gangs, sexual predators, ________?

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@Parody or @Crime? AZ Bill May Blur the Line

Arizona State Representative Michelle Ugenti (R-Scottsdale) introduced Arizona House Bill 2004 in December, which would amend Arizona’s criminal code and make it a class 5 felony to impersonate somebody online, including, specifically, on a social networking site. A class 5 felony carries in Arizona a presumptive sentence of a year and a half imprisonment. Rep.

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The Journal News Fallout: Limiting the First Amendment to Protect the Second

Eight days after a gunman entered Sandy Hook Elementary School, shooting and killing 20 young students, 6 staff members and fueling a national discussion on gun

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Filing Lawsuits in the United States over Google Autocomplete is...

On December 21, 2012, Dr. Guy Hingston, a cancer surgeon from Port Macquarie in New South Wales, Australia, filed suit against Google in the U.S. District Court for the Central District of California. Dr.

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The Impact of "Aaron's Law" on Aaron Swartz's Case

Like so many around the greater Berkman community I was stunned and saddened to hear that Aaron Swartz committed suicide late last week. I truly admired Aaron's work and consider the future of Internet policy substantially worse off without his presence. For more on his life and work, I'd encourage you to visit this gathering of Berkman blog feeds, which this week is filled with posts that discuss his life and work in greater detail.

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Saltsman v. Goddard

Date: 

10/25/2012

Threat Type: 

Lawsuit

Party Receiving Legal Threat: 

Alexandria Goddard aka "Prinnie" and anonymous Doe defendants

Type of Party: 

Individual

Type of Party: 

Individual

Court Type: 

State

Court Name: 

The Court of Common Pleas, Jefferson County, Ohio

Case Number: 

12-CV-00544

Verdict or Settlement Amount: 

$0.00

Legal Counsel: 

Thomas G. Haren, Jeffrey M. Nye, Marc J. Randazza (Goddard), Scott T. Greenwood (Anonymous commenters), Francesca T. Carinci (Marian Waguespack)

Publication Medium: 

Blog

Relevant Documents: 

Status: 

Concluded

Disposition: 

Dismissed (total)

Description: 

In August 2012, two football players from Steubenville High School were arrested and charged with the rape of a 16-year-old girl. Classmates circulated Twitter posts, videos, and photographs indicating that the players may have carried the girl, unconscious, from party to party and sexually assaulted her while others watched. A police investigation uncovered pictures of the girl, naked and apparently unconscious, from partygoers' phones.

Cody Saltsman, a football player who was not indicted, tweeted a picture of the girl looking unresponsive as two boys carry her by her wrists and ankles. He also tweeted comments about the girl, including the phrases "whore status," "sloppy," and "I have no sympathy for whores."

Alexandria Goddard, a blogger who writes under the pseudonym "Prinnie" at prinniefied.com, wrote a series of blog posts on the case. She posted screen shots of related Twitter posts and photos. She also suggested that a number of unindicted individuals had participated in the rape, including Cody Saltsman. In response to a comment on her blog reading "students by day ... gang rape participants by night," Goddard wrote, "Cody Saltsman [is] playing tonight. Reno, SHAME ON YOU." She also wrote that his fellow football players should "roll on their pal Cody Manson" and "[p]erhaps when scumbag is finally arrested I will post a picture of him for his mother that says ‘How do you like your scumbag son now?' ... Tell Cody not to feel too bad, he is not the lone asshole in all this."

A number of commenters on the blog also posted about Saltsman, including statements that he was there when the rape was occurring, that he was the "mastermind" behind the crime, that he had previously stated he would "ruin that bitch," and that he had sent the victim's father the picture of her being carried by her wrists and ankles with text reading "look at your whore daughter now." Other commenters made comments including: "[g]et CS and his posy [sic] off the field and problem solved"; "Cody needs to suffr some consequences too!"; and, in response to the question "[w]hat is [the Saltsman's] business because I never want to spend money there," the statement "CS father owns Fort Steuben Plumbing/Maintenance."

On October 25, 2012, Saltsman and his parents, James and Johna Saltsman, filed a complaint against Goddard, fifteen anonymous commenters identified by screen names and Internet Protocol (IP) addresses (including those who made the above statements), and ten additional John Doe defendants. Saltsman sued for defamation and intentional infliction of emotional distress, and sought injunctive relief, compensatory damages in excess of $25,000, and punitive damages. The complaint was amended on November 19, 2012 to add claims for false light and spoliation of evidence.

Saltsman's attorneys obtained the IP addresses for each anonymous commenter from HostGator, the Internet Service Provider (ISP) for the "prinnified" blog, which apparently turned over the IP addresses without providing notice to the commenters or to Goddard. On November 16, the plaintiffs moved for authorization to conduct discovery from each anonymous commenter's ISP in order to obtain the commenters' identities.

Goddard's counsel objected to Plaintiffs' motion for authorization to conduct discovery to obtain the identities of the anonymous defendants, asserting that the First Amendment right to speak anonymously barred such discovery.

In a supplemental memo supporting the motion for authority to conduct discovery, Saltsman disputed that the First Amendment protected the identities of the authors, urged the court to act quickly in order to prevent the ISPs from deleting relevant information, and argued that Goddard had no standing to object on behalf of the Does.

Acknowledging that there were no published Ohio decisions on point, Saltsman directed the court to the often-followed test laid out in Dendrite Int'l Inc. v. Doe No. 3. 775 A.2d 756 (N.J. Super. A.D. 2001). Under Dendrite, courts allow plaintiffs to conduct discovery on anonymous online posters' identities when plaintiffs (1) attempt to notify defendants that their identities are being sought and explain how to present a defense; (2) quote verbatim the allegedly actionable online speech; (3) allege all elements of the cause of action; (4) present evidence supporting the claim of violation; and (5) show that, on balance and in context, the plaintiff's right to identify the speaker in order to redress alleged wrongs outweighs the First Amendment right to anonymous speech. Saltsman asserted that he met all of these elements, particularly focusing on the fifth element, the balancing of rights. Because the First Amendment does not protect false assertions of fact, he argued, the defendants had no right to anonymous speech in this context.

Goddard filed a Memorandum in Opposition to the motion on November 21, and a supplemental Memorandum in Opposition on November 26. Plaintiffs' responded with a second supplemental memorandum in support of their motion on November 28.

The Court filed an order on November 29, granting the plaintiffs' motion. The court authorized the relevant ISPs to release personally identifiable information associated with the IP addresses identified in the complaint. The court required that notice of the discovery be given to the anonymous commenters and that the commenters be given fourteen days after the notice to file motions to quash.

On December 14, the American Civil Liberties Union of Ohio stated in a press release that they had offered to represent a number of the "John Doe" defendants. ACLU Volunteer Attorney Scott Greenwood stated, "[w]e believe the real goal of this lawsuit is to discover the identity of anonymous online commenters so that they, and future commenters will be intimidated and discouraged from voicing their opinions. This is just an updated form of a classic Strategic Lawsuit Against Public Participation (SLAPP) which is typically used to silence speech that is protected under the First Amendment."

Plaintiffs reached a settlement with Goddard and the anonymous commenters and voluntarily dismissed the case with prejudice on December 27, 2012. With one exception (defendant Waguespack), the identities of the commenters were not disclosed. No money was exchanged, and Goddard did not retract any statements or agree to stop covering the case. Goddard did write on her blog that she "never had any evidence of [Cody Saltsman's] direct involvement" in the events of the night and agreed to give him space on her blog to present his side of the story.

The "prinnified" blog also ran the following statement from Cody Saltsman: "I deeply regret my actions on the night of August 11, 2012. While I wasn't at the home where the alleged assault took place, there is no doubt that I was wrong to post that picture from an earlier party and tweet those awful comments. ... At no time did my family mean to stop anyone from expressing themselves online - we only wanted to correct what we believed were misstatements that appeared on Ms. Goddard's blog. "

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The First Circuit Tackles Copyright in News Photography and Docudramas

On Monday the First Circuit released an important opinion addressing copyright and news photography, in Harney v. Sony Pictures Television, Inc., No. 11-1760 (1st Cir. Jan. 7, 2003).  The case is related to the famous "Clark Rockefeller" incident.

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RT the Hate: France and Twitter Censorship, Part Two

Last October I wrote about the rise in popularity among French Twitter users of the hashtag #unbonjuif ("a good jew"). In December we saw a growth in other offensive hashtags, including the homophobic #Simonfilsestgay, ("if my son is gay") or the xenophobic #SimaFilleRamèneUnNoir ("if my daughter brings a Black man home").

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Are Rights of Publicity the Fatal Flaw of the Mugshot Racket?

Before the holidays, Wired reported the filing of a putative class action in Ohio against a group of privately owned websites that allegedly collect and publish mugshot photos, and then charge those whose photos appear exorbitant amounts to have the photos removed.

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And That's It for 2012...

Tomorrow, Harvard University will shut down for its annual Winter Recess, marking the end of the calendar year for those of us at the Digital Media Law Project.  It seems like this year has flown by, with so much that we have done and so much that we still plan to do.

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Chicago Area Courts Ban Electronic Devices, For Some

Criminal courthouses in Cook County, Illinois (Chicago and environs) will ban the public from bringing in electronic devices as of Jan. 15, under an order issued by Cook County Chief Judge Timothy Evans in mid-December. See Gen’l Admin. Order 2012-8 (Ill. Cir. Ct., Cook Cnty. Dec. 11, 2012).

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Dietz Development LLC v. Perez

Date: 

10/31/2012

Threat Type: 

Lawsuit

Party Receiving Legal Threat: 

Jane Perez

Type of Party: 

Individual
Organization

Type of Party: 

Individual

Court Type: 

State

Court Name: 

Fairfax County Circuit Court, Virginia

Case Number: 

2012-16249

Legal Counsel: 

James T. Bacon, Allred, Bacon, Halfhill & Young P.C.; Rebecca Glenberg, ACLU of Virginia; Paul Alan Levy, Public Citizen Litigation Group

Publication Medium: 

Forum

Relevant Documents: 

Status: 

Pending

Disposition: 

Injunction Issued

Description: 

Dietz Development is a construction contractor based in Washington, DC. According to the complaint, Jane Perez, a high school classmate of Dietz Development owner Christopher Dietz, hired Dietz Development to do work on Perez's home. Disagreements arose over the nature of the work, which resulted in a lawsuit over unpaid invoices in July 2011. The lawsuit was dismissed after Dietz failed to timely file a bill of particulars (a more specified factual statement following a complaint) under Virginia court rules.

According to the complaint, on January 31, 2012, Perez posted a critical review of Dietz Development on Angie's List, including the following statements:

  •  "Dietz Development LLC was to perform: painting, refinish floors, electrical, plumbing and handyman work. I was instead left with damage to my home and work that had to be reaccomplished for thousands more than originally estimated."
  • "My home was damaged; the 'work' had to be re-accomplished;"
  • "I won on summary judgment (meaning that the case had no merit)."
  • "he invoiced me for work not even performed and also sued me for work not even performed"
  • "This is after filing my first ever police report when I found my jewelry missing and Dietz was the only one with a key."

Perez also posted substantially similar material on Yelp.com on February 6, 2012. On May 11, 2012, Perez filed similar statements with the Virginia Department of Professional and Occupational Regulation (DPOR).

On August 13, 2012, Perez posted further statements on Yelp.com regarding Dietz Development, including that the company "is not legitimate in lacking BBB Accreditation." On August 27, 2012, Perez posted again on Yelp.com, stating that Dietz had received sanctions from the DPOR and that "the Consumer Protection Agency and the Office of the Attorney General are also good sources who stated that Dietz has been sued by another client for 'unfinished work'."

Dietz Development filed a complaint in the Fairfax County Circuit Court in Virginia on October 31, 2012, alleging defamation based on the statements above and seeking $750,000 in damages and an injunction removing the statements from these websites and preventing Perez from making similar statements in the future. Dietz denies all of the statements made above, and claims that (1) the invoices and lawsuit focused only on work that had been completed, (2) that he had returned the key immediately following termination of their relationship, (3) the Better Business Bureau has given Dietz Development an A+ ranking, (4) no sanctions were imposed by the DPOR, and (5) that Dietz has not been sued by other clients. 

Also on October 31, 2012, Dietz filed a motion for preliminary injucntion, arguing that an injunction should be issued here because the statements are defamatory per se, Dietz Development cannot "direct marketing at those who see" the material posted by Perez, and this information will cause the plaintiffs future monetary harm. Dietz conceded that "this would to a small extent reduce [Perez's] freedom of expression until there is a final hearing," but argued that Perez "has no financial interest in this speech, and she would not be prevented from pursuing any work opportunity or ongoing business concern." Dietz argued that an injunction favors the public interest because "[t]he public interest is met in the preservation of truthful communications and presentation of accurate information in making consumer choices."

Perez filed an answer on November 19, 2012. On December 4, 2012,  Perez filed an opposition to the preliminary injunction. The opposition claimed that the suit filed against Perez is a "SLAPP" suit, and argued that an injunction should not be issued because the reviews are currently not accessible to a usual web search (because Perez removed the Yelp review and the Angie's List review is only viewable behind a paywall), issuing an injunction would harm Perez's right to free speech, and the statements are either true or published without the requisite degree of fault. Perez also stated that she intended to introduce evidence showing that Dietz was investigated and sanctioned by the DPOR, and that lawsuits and Attorney General investigations had been filed in the District of Columbia against Dietz Development.

On December 5, 2012, the court issued a brief order granting the preliminary injunction in part. The court ordered:

(1.) The Defendant shall remove any post that refers to the "loss of jewelry;" and

(2.) The Defendant shall modify any post that refers to "...'Summary Judgment' (meaning that the case had no merit)" to "...'Summary Judgment' (meaning the case was dismissed with prejudice in my favor)"; and

(3.) For any future publication, the Defendants shall comply with paragraphs (1) and (2) above. 

Update:

On December 17, 2012, Perez filed a motion for reconsideration of the preliminary injunction, arguing that such an injunction constitutes a prior restraint.

On December 26, 2012, while the motion for reconsideration was pending, Perez filed a petition for review with the Supreme Court of Virginia under Virginia Code § 8.01-626. The petition argues that the injunction was an impermissible prior restraint, and violated principles of equity because injuries due to libel are considered to have an adequate remedy in monetary damages.

On December 28, 2012, the Supreme Court of Virginia issued a summary reversal of the injunction, finding both that the injunction failed to state the duration of the injunction under Virginia Code § 8.01-624, and that "the Preliminary Injunction was not justified and that the respondents have an adequate remedy at law."

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CMLP Notes: 

AFS did first draft 12/14/12 first update 12/17/12 and second update 1/2/13

Congratulations to The Lens on its Section 501(c)(3) Determination!

The Digital Media Law Project would like to congratulate The Lens, the New Orleans area's first nonprofit, nonpartisan public-interest newsroom, on obtaining a positive ruling on its Section 501(c)(3) status from the Internal Revenue Service!

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Copyright in Tattoo Case: Escobedo v. THQ, Inc.

Excerpt from Escobedo v.

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A Special Deal Just For You: The Value of Big Data Continues to Elude Consumers

For a while now, one of the main causes of concern for privacy advocates has been "Big Data," that is, the collection, aggregation and analysis of data, on a, well, BIG scale. This post takes the opportunity to review some specific issues and recent developments in this area.

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Copyright of “Public Facts”: Craigslist v. PadMapper

Craigslist was meant for the common good, or as founder Craig Newmark puts it, “doing well by doing good.”  At least, that has been its announced mission since it began as an email distribution among friends.

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AF Holdings LLC v. Doe

Date: 

04/24/2012

Threat Type: 

Lawsuit

Party Receiving Legal Threat: 

John Doe, Josh Hatfield

Type of Party: 

Organization

Type of Party: 

Individual

Court Type: 

Federal

Court Name: 

U.S. District Court for the Northern District of California

Case Number: 

4:12-cv-02049-PJH

Legal Counsel: 

Nicholas Ranallo

Publication Medium: 

Other

Relevant Documents: 

Status: 

Pending

Description: 

On April 24, 2012, AF Holdings LLC filed a complaint against a John Doe defendant as well as individual defendant Josh Hatfield in the U.S. District Court for the Northern District of California, arising out of the alleged distribution via BitTorrent swarm of a video. The plaintiff, which asserted that it held the copyright in the video by assignment, claimed that the Doe defendant violated its copyright by reproducing and distributing the video via BitTorrent, and contributed to infringement by all other members of the BitTorrent swarm.

The plaintiff claimed that defendant Hatfield was liable on a state law theory of negligence for failing to secure his wifi Internet connection against public use (including the alleged use by defendant Doe) for infringing purposes. The plaintiff also noted that it did not know whether Hatfield himself was the Doe responsible for the uploading of the video via BitTorrent.

Hatfield filed a motion to dismiss the complaint against him, or, in the alternative, for a more definite statement as to whether plaintiff was pursuing a contributory copyright infringement against Hatfield as well as a negligence claim. This first motion was withdrawn when the plaintiff filed an amended complaint, which added further allegations regarding the negligence claim against Hatfield (including allegations in support of the claim that Hatfield should have known about infringing activity occurring via his Internet connection).

On June 30, 2012, Hatfield filed another motion to dismiss (or for a more definite statement with respect to contributory infringement), this time with respect to the allegations of the amended complaint. The motion argued that the negligence claim against Hatfield failed for three reasons: (1) the claim as stated on the face of the complaint was within the subject matter of copyright, and preempted by federal copyright law either expressly or on theories of conflict or field preemption; (2) the claim was barred by Section 230 of the Communications Decency Act because it treated Hatfield as the "speaker or publisher" of material provided by a third party; and (3) the plaintiff failed to plead a special relationship giving rise to a duty on Hatfield's part to secure his wifi Internet connection. Hatfield further argued that the complaint was ambiguous as to whether he was being sued only for negligence or also for contributory copyright infringement, and sought clarification as to the basis for the claims against him in order to allow him to respond properly.

On July 3, 2012, the Electronic Frontier Foundation moved for leave to file an amicus curiae brief in support of Hatfield's motion to dismiss. The proposed brief argued that finding negligence liability for failure to secure a wifi connection would interfere with federal, state, private, and community efforts to promote open access to public wifi, and would exacerbate problems with allegedly coercive settlement practices in mass file-sharing litigation. The court denied leave to file the brief.

In its opposition to Hatfield's motion to dismiss, the plaintiff argued that express preemption by federal law did not apply to the negligence claim; rather than asserting infringement of copyright, the plaintiff said, the claim asserted negligent operation of a residential network, which is not an exclusive right under the Copyright Act. The plaintiff further argued that Hatfield failed to establish either conflict preemption (because he identified no conflicting state or federal statutes relating specifically to operation of home Internet connections) or field preemption (because he did not cite to cases indicating that a federal regulatory scheme had occupied the relevant field). With respect to Hatfield's Section 230 defense, the plaintiff argued that Section 230 was inapplicable because the claim related to negligence leading to copyright infringement by a third party, rather than a failure to edit, withhold, or restrict access to a third party's offensive speech. Finally, the plaintiff argued that Hatfield had engaged in negligent affirmative acts rather than a negligent failure to act, giving rise to a general responsibility to the public that did not require proof of a specific duty owed by Hatfield.

With respect to Hatfield's motion for a more definite statement, the plaintiff argued that the issue of the definiteness of the negligence claim would not be ripe until after the motion to dismiss was resolved. In another part of the plaintiff's opposition, however, the plaintiff explicitly disclaimed that it was asserting that Hatfield "knowingly facilitated and actively participated in another's alleged infringement."

Hatfield responded further to these arguments in a reply brief on July 23, 2012, arguing, among other things: (1) with respect to preemption, that the plaintiff improperly focused on Hatfield's conduct as opposed to the rights plaintiff sought to protect; (2) that Section 230 protection was not limited to cases involving "offensive speech;" and (3) that plaintiff's argument that Hatfield engaged in active misfeasance as opposed to a negligent failure to act conflicts with the plaintiff's own complaint, which alleged a failure to secure an Internet connection.

On September 4, 2012, the district court granted Hatfield's motion to dismiss the claims against him. The court ruled that the claim against Hatfield (1) was expressly preempted by the Copyright Act; and (2) alleged a failure to act that was deficient as a negligence claim because the plaintiff had not established any special relationship between it and Hatfield giving rise to a duty to act. The court further noted that Hatfield appeared to meet the qualifications for protection under Section 230, but found that it was not necessary to rule on that issue given the other deficiencies in the plaintiff's claim.

The court further noted that there was no evidence that the plaintiff had served the Doe defendant, and gave the plaintiff until October 5, 2012, to do so or face the dismissal of the remainder of the complaint without prejudice.

On September 28, 2012, the plaintiff moved for leave to file a second amended complaint expressly identifying Hatfield as the Doe defendant, claiming that further investigation following the filing of the first amended complaint had given rise to a reasonable basis to name and serve Hatfield as a direct and contributory infringer of the plaintiff's copyright. The motion for leave stated that the additional information discovered by the plaintiff related to Hatfield's "interactions on the computer and living situation (among other things)."

Hatfield filed an opposition to the motion to file a seconded amended complaint on October 12, 2012. The plaintiff moved to strike Hatfield's opposition, on the basis that Hatfield was not a party in the time period between the dismissal of the claim against Hatfield in the first amended complaint and the allowance of the proposed second amended complaint. Therefore, plaintiff argued, Hatfield had no standing to respond to the plaintiff's attempt to add new claims against him. The court rejected this argument.

In the opposition, Hatfield argued that the plaintiff had failed to prosecute its claims against the Doe defendant in a timely manner and as required by the court's October 5th order, and as such the court should dismiss the remainder of the first amended complaint. Hatfield further argued that leave to amend the complaint a second time should be denied, because: (1) the plaintiff's motion was made in bad faith and futile, because the plaintiff conceded in its response to the earlier motion to dismiss that Hatfield was ignorant of the alleged infringement; and (2) there was no excuse for the plaintiff's delay in proceeding against Hatfield, the plaintiff having neither identified the new information at issue or why it could not have learned that information earlier.  Hatfield also noted that the identification of his IP address as the source of the torrent at issue (which plaintiff knew about at the beginning of the case) had not been sufficient to name him as an infringer at the outset.

The plaintiff replied to the opposition, arguing that the identification of Hatfield's IP address would have been sufficient to name Hatfield at the outset, but that it had wanted to be "confident that it ha[d] an objectively reasonable basis to name" him as the infringer. Thus, the plaintiff claimed, its delay in naming Hatfield as the Doe defendant was the result of careful diligence rather than inaction or bad faith. With respect to the issue of whether it could have discovered the new information earlier with reasonable diligence, the plaintiff argued that its investigation was "heavily reliant on insights, the timing of which are out of Plaintiff’s control; after enough 'digging', Plaintiff will sometimes have the good fortune to find information sufficient to name a direct and contributory infringer." The plaintiff also argued that it had no obligation to disclose that information in support of its motion to amend. Finally, the plaintiff argued that an amendment cannot be considered futile merely because it contradicts a position previously taken by a plaintiff and considered by a court, because an "amended complaint inherently changes the position taken by the amending party."

At a hearing on November 7, 2012, the district court rejected the suggestion that the current amended complaint should be dismissed pursuant to the October 5th order, and (as mentioned above) denied the motion to strike Hatfield's opposition to the motion for leave to amend. The court further directed the plaintiff to submit for the court's consideration a revised proposed second amended complaint specifically identifying the new facts learned about Hatfield; pending that submission, the court deferred on ruling on the motion to amend.

On November 14, 2012, plaintiff submitted its second proposed second amended complaint for consideration as directed by the court. The new allegations presented in support of the identification of Hatfield as the infringer include:

  • "that Defendant had a large Internet presence, and that presence demonstrated Defendant's knowledge of computers and the Internet."
  • "According to a Facebook page purportedly attributed to a Josh Hatfield living in the Bay Area ... Defendant ‘likes' movies, ‘pretty much any movie,' among other things."
  • "According to a MySpace page purportedly attributed to a Josh Hatfield living in the Bay Area ... he goes by the moniker ‘Mistah HAT' and has pictures of his various activities including, but not limited to, playing video games."
  • "Defendant lived in a small apartment building in Oakland, California ... . Plaintiff discovered a recent listing by a real estate agent for one of the units located on the property. According to that listing, the building has eight units with at least on two-bedroom unit."
  • "There was no information available about Defendant's neighbors or whether he in fact Defendant [sic] had any nearby neighbors."
  • "Research on the building's other potential residents indicated that, while a residential building, it had a few tenants who were running their businesses out of their units."
  • "Through [a] skip trace, it was revealed that Defendant was thirty-three-years old and in fact currently residing at [ADDRESS]. Further it revealed that he lived at that location with thirty-year old female with a different last name. There was no indication that the two were married."
  • "Defendant had a criminal record. The offenses allegedly occurred in Oregon on June 25, 2001 and January 10, 1999, and both were labeled as ‘Court Offense: VIOL OF BASIC RULE.' The actual violation charged was unclear, but each passed through the criminal courts in Oregon."
  • "Plaintiff found no evidence that Defendant had a wireless Internet network. Further, Plaintiff found no evidence that, if such wireless Internet connection existed, that such network was unsecured (i.e. without password protection)."
  • "Most importantly, Plaintiff searched the Court's docket in this case and never found any declaration under oath from Defendant stating clearly that he had not infringed on Plaintiff's work. In fact, Plaintiff had never encountered such a document off the record as well."

On January 7, 2013, the court denied the plaintiff's motion to file the second amended complaint and its motion to strike the defendant's opposition to the motion. The court indicated uncertainty as to whether Hatfield would be substantially prejudiced by the amendment given his lack of knowledge, based on the plaintiff's prior conduct and statements, that he was considered a target for a direct copyright infringement claim. However, the court did find that "AF Holdings delayed unduly in seeking leave to amend, and that its conduct is at least suggestive of bad faith." The court further found that

the new allegations in the revised proposed [Second Amended Complaint] are vague and speculative, and do not demonstrate diligence or add any substance to the claims. ... In short, the revised proposed SAC alleges no facts showing that Hatfield infringed AF Holdings' copyrighted material, apart from the facts that were previously alleged and that have been known to AF Holdings for more than a year[.]

Having denied the plaintiff's motion to amend, the court also denied Hatfield's motion that the case be dismissed for lack of prosecution as per its comments at the hearing on November 7, 2012.

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The Thankless Task of the Political Fact-Checker

One overarching theme of the 2012 election season was a struggle with truth. Both campaigns were accused of serial falsehoods, and continuing to spread incorrect information after the truth was reported.

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