January 7, 2010 Defamation, Section 230

Injunction against defamatory content could not reach website owner

Blockowicz v. Williams, — F.Supp.2d —, 2009 WL 4929111 (N.D. Ill. December 21, 2009)

(This is a case from last month that has already gotten some attention in the legal blogosphere, and is worth reporting on here in spite of the already-existing commentary.)

Plaintiffs sued two individual defendants for defamation over content those defendants posted online. The court entered an order of default after the defendants didn’t answer the complaint. The court also issued an injunction against the defendants, requiring them to take down the defamatory material.

grasping

When plaintiffs were unable to reach the defendants directly, they asked the websites on which the content was posted — MySpace, Facebook, Complaints Board and Ripoff Report — to remove the material.

All of the sites except Ripoff Report took down the defamatory content. Plaintiffs filed a motion with the court to get Ripoff Report to remove the material. Ripoff Report opposed the motion, arguing that Rule 65 (the federal rule pertaining to injunctions) did not give the court authority to bind Ripoff Report as a non-party. The court sided with Ripoff Report and denied the motion.

Federal Rule of Civil Procedure 65 states that injunctions bind the parties against whom they are issued as well as “other persons who are in active concert or participation with” those parties. In this case, the court looked to the Seventh Circuit opinion of S.E.C. v. Homa, 514 F.3d 674 (7th Cir. 2008) for guidance on the contours of Rule 65’s scope. Under Homa, a non-party can be bound by an injunction if it is “acting in concert” or is “legally identified” (like as an agent or employee) with the enjoined party.

Plaintiffs argued that Ripoff Report was acting in concert with the defamers. Plaintiffs looked to Ripoff Report’s terms of service, by which posters to the site give an exclusive copyright license to and agree to indemnify Ripoff Report. Those terms also state that Ripoff Report will not remove any content for any reason. Plaintiffs read this combination of terms to stand for some sort of arrangement whereby Ripoff Report agreed to be a safe haven for defamatory material.

The court rejected this argument, finding there was no evidence in the record that Ripoff Report intended to protect defamers. Moreover, there was no evidence that Ripoff Report had communicated with the defendants in any way since the entry of a permanent injunction, or otherwise worked to violate the earlier court order requiring defendants to remove the materials.

Other commentary on this case:

Grasping photo courtesy Flickr user Filmnut under this Creative Commons license.

January 5, 2010 Contracts

Browsewrap website terms and conditions enforceable

Major v. McAllister, — S.W.3d —, 2009 WL 4959941 (Mo. App. December 23, 2009)

The Missouri Court of Appeals has issued an opinion that reflects a realistic grasp of how people use the web, and also serves as a definitive nod to self-responsibility. The court refused to accept a website end user’s argument that she should not be bound by the website terms and conditions that were presented to her in the familiar “browsewrap” format.

Click

Ms. Major used a website called ServiceMagic to find some contractors to remodel her home in Springfield, Missouri. Each page she saw during the process had a link to the website terms and conditions. At the point where she submitted her contact information to facilitate the signup process, she was presented with a link to the website’s terms and conditions. We’ve all seen this countless times — the link read, “By submitting you agree to the Terms of Use.”

Major admitted she never clicked on the link and therefore never read the terms and conditions. But had she clicked through she would have read a forum selection clause providing that all suits against ServiceMagic would have to be brought in Denver, Colorado.

When Major sued ServiceMagic in Missouri state court, ServiceMagic moved to dismiss, citing the forum selection clause. The trial court granted the motion and Major sought review. On appeal, the court affirmed the dismissal.

Major relied heavily on Specht v. Netscape, 306 F.3d 17 (2d Cir. 2002). The court in Specht held that end users of Netscape’s website who downloaded a certain application were not bound by the terms and conditions accompanying that download because the terms were not visible on the screen without scrolling down to see them.

But in this case the court found the terms and conditions (including the forum selection clause) to be enforceable. In contrast to Specht, the ServiceMagic site did give immediately visible notice of the existence of the terms of the agreement. Even though one would have to click through to read the terms, the presence of the link was sufficient to place the website user on reasonable notice of the terms, and subsequent use by the end user manifested assent to those terms.

Click image courtesy Flickr user smemon87 under this Creative Commons license.

January 2, 2010 Litigation

Some thoughts on jurors doing internet research – keep the process clamped down

People v. Carmichael, — N.Y.S.2d —, 2009 WL 5126920, (N.Y.A.D. 4 Dept., Dec 30, 2009)

A recent decision from a New York appellate court gives us occasion to think about the problem of jurors doing web research to find information relating to the case.

The Carmichael Case

A jury convicted one Carmichael of murder. One of the jurors did some internet research during the trial on the question of whether the gunshot wound on the victim was a close contact wound or was inflicted from a distance. When Carmichael discovered the juror’s research, he moved to set aside the jury’s verdict. He argued that the juror’s misconduct caused prejudice to a substantial right.

Jurors Only -- no outside influences!

The trial court denied the motion and Carmichael sought review. On appeal, the court held that the trial court properly denied the motion to set aside the verdict.

It found that Carmichael suffered no prejudice to a substantial right because the juror’s testimony at a hearing on the matter showed that the information found during the internet research was not helpful, that he remained confused even after the research, and that he based his verdict only on the evidence presented at trial.

The Modern Person’s Connection to the Web

The sense of connection that the modern person feels within the web causes an intriguing disruption to the traditional method of the jury trial system. It calls us to evaluate whether it’s fair to characterize conduct like that of the Carmichael juror as “misconduct.” As this Time article notes (and as we all know from our own experiences), it is natural for jurors to desire background, contextual information about the matter being considered.

The tension applies to the problem of jurors acquiring information concerning the case as well as the problem of jurors distributing information they have, or making inappropriate connections with others in the process. The past few months have shown us, for example, stories of improper attempts by jurors to friend witnesses, prohibitions on judges connecting with lawyers, questions of witness intimidation through Facebook, and orders prohibiting courtroom tweeting.

In most instances this tendency to want and share information is a positive attribute. Skepticism, rationality and transparency are noble qualities. But information crossing the abstract borders of the trial court can jeopardize the fairness that the process has historically ensured. It’s no small problem. Even Britain’s Lord Chief Justice recognizes that the ability to so easily get information external to the case “changes the whole orality tradition [i.e., oral testimony] with which we are familiar.”

It’s not a new problem. I was writing about it almost five years ago. Here’s a post I wrote and a podcast episode I did about it back in 2005.

Keep ’em Clamped Down

At the most general level there are two options for handling the present tension. Courts could assimilate the modern tendency and simply leave the process unchecked — allowing information to flow in and out as if on the breeze. The other option would be to clamp down, as the courts in Michigan have done, enacting rules that prohibit jurors doing research and disseminating information during the proceedings.

Our tradition should tell us to go with the latter, that is, clamping down. Looking at it a certain way, there is nothing different in kind occasioned by modern communication methods that mandates information to be free flowing. Though in the past it would have been less feasible, it would not have been impossible for jurors to share information during the process or do external research during off hours. To foster the fairness of the proceedings, courts have historically fortified the abstract walls of the courtroom, permitting the jurors only to consider the evidence made a part of the record. Think about it — that’s the entire basis for having rules of evidence in the first place.

So even though it’s easier to get information these days, and even though jurors want to do that (and in most situations outside of jury duty should be encouraged to do so), there is no good reason not to enforce strict regulations prohibiting outside research. Whether a juror should be permitted to share information during the process is more subtle — there are more concerns there about openness in the process implicated. Absent national security or other similar reasons, we generally don’t want proceedings to be incommunicado.

The solution should not be an assimilation and accompanying dissolving of the borders of the walls around the process, but should come from education of the jury pool. The quasi-closed system of the proceedings, moderated by rules of evidence helps ensure fairness and accuracy. To the extent jurors are helped to understand such a notion of “information regularity,” the more likely they are to see that it makes good sense.

Jurors only photo courtesy Flickr user dmuth under this Creative Commons license.

December 31, 2009 Section 230

Website drives off with Section 230 win over Chevy dealer

Nemet Chevrolet sued the website Consumeraffairs.com over some posts on that website which Nemet thought were defamatory and interfered with Nemet’s business expectancy. The website moved to dismiss the lawsuit, claiming that the Communications Decency Act at 47 U.S.C. 230 immunized the website from the lawsuit.

But when we're driving in my Malibu, it's easy to get right next to you. . . . "

The court dismissed the action on Section 230 grounds and Nemet sought review of the dismissal with the Fourth Circuit Court of Appeals. The appellate court affirmed the dismissal.

Section 230 precludes tort plaintiffs from holding interactive computer services (like website operators) liable for the publication of information created and developed by others. Most courts (like the Fourth Circuit) consider Section 230’s protection to be a form of immunity for website operators from lawsuits arising over third party content.

But that immunity disappears if the content giving rise to the dispute was actually created or developed by the operator and not by a third party. In those circumstances the operator also becomes an information content provider. And there is no Section 230 immunity for information content providers.

That’s where Nemet steered its argument. It alleged that the website was a non-immune information content provider that created and developed the offending content.

Nemet raised two general points in its argument. It claimed that the website’s structure and design elicited unlawful content, and that the site operator contacted individual posters to assist in revisions to the content. It also claimed that the site operator simply fabricated a number of the offending posts.

Applying the pleading standards on which the Supreme Court recently elaborated in Ashcroft v. Iqbal, the court found Nemet’s claims that the site operator was actually an information content provider to be implausible.

As for the structure and design argument, the court differentiated the present facts from the situation in Fair Housing Council of San Fernando Valley v. Roommates. com. In Roommates.com, the court found that the website was designed to elicit information that would violate the Fair Housing Act. In this case, however, there was nothing unlawful in inviting commentary on goods or services, even if it was for the purposes of drumming up business for plaintiffs’ class action lawyers.

As for the other arguments, the court simply found that the allegations did not nudge the claims “across the line from conceivable to plausible.” The court found the argument that the website fabricated the posts to be particularly not creditable, in that Nemet’s allegations relied mainly on an absence of information in its own records that would connect the post to an actual customer.

On balance, this decision from the Fourth Circuit shows that Section 230 immunity is as alive and well at the end of the “oughts” as it was a dozen years before when the Fourth Circuit became the first federal appellate court to consider the scope of the section’s immunity. That 1997 decision in the case of Zeran v. AOL remains a watershed pronouncement of Section 230’s immunity.

Congratulations to my friend and fellow blogger Jonathan Frieden’s impressive win in this case.

And Happy New Year to all the readers of Internet Cases. Thanks for your continued loyal support.

Chevy Malibu photo courtesy Flickr user bea-t under this Creative Commons license.

December 9, 2009 Trademarks

Court denies motion to dismiss AdWords trademark infringement case

FragranceNet.com, Inc. v. Les Parfums, Inc., — F.Supp.2d —, 2009 WL 4609268 (E.D.N.Y. December 8, 2009)

FragranceNet.com sells perfume online. It sued several of its competitors, claiming trademark infringement and other causes of action like unfair competition and unjust enrichment, over the defendants’ alleged purchase of variations of the term “fragrancenet” to trigger sponsored links on Google results pages. These sponsored links allegedly drove traffic to defendants’ websites.

The defendants moved to dismiss the complaint. Had this case been filed a year ago, the defendants may have argued that the case should be dismissed because the purchase of keywords to trigger sponsored links was not “use” of the marks. But in light of the Rescuecom decision from this past spring, defendants were constrained to argue differently.

They claimed that the case should be dismissed because the purchased keywords are generic terms and therefore not protectible as trademarks. The court rejected this argument, holding that it was inappropriate to determine whether the marks are generic at the motion to dismiss stage because plaintiff had adequately stated plausible trademark claims in its complaint. The question of genericness is better considered with some actual facts.

Photo courtesy Flickr user hslo under this Creative Commons license.

November 5, 2009 Miscellaneous, Privacy

Death scene photos posted on the web did not subject coroner to liability

Werner v. County of Northampton, 2009 WL 3471188 (3rd Cir. October 29, 2009) (Not selected for official publication).

Plaintiff’s son died in the family home. No one seems to know for sure whether it was an accident or suicide. Even Plaintiff gave conflicting statements to the court — in his complaint he said it was not suicide, but in a later-filed brief he said it was.

Do not cross this line and I mean it.

In any event, on the day the son died, the coroner came to the house to take pictures. Somehow the coroner’s son got a hold of the photos and posted them on the web with a caption “There is no better way to kill yourself.”

Plaintiff sued the coroner under 28 U.S.C. 1983 which, among other things, gives citizens a cause of action when their rights are violated by someone acting under the law. Plaintiff claimed the coroner committed a due process violation of Plaintiff’s liberty interests in his reputation by allowing the photos to be posted.

To succeed on his liberty interest claim, Plaintiff was required to satisfy the “stigma plus” test. The district court dismissed the complaint, finding Plaintiff’s allegations did not meet this standard.

A statement that is “stigmatizing” under this test must be (1) made publicly, and (2) false. In this cause, the court found that the death scene photos were the relevant statement. But there were no allegations in the complaint that the photos themselves were “false.” (What the court was probably saying here is that the photos had not been Photoshopped or otherwise changed in a way to make them not accurately portray the scene.)

The court made a fine distinction in the process of dismissing the case. In response to the motion to dismiss, Plaintiff argued that the thrust of his argument was that the website falsely suggested his son committed suicide. But the court found otherwise, carefully looking at the allegations of the complaint which, for example, said that the photos “fueled the false impression that the Plaintiff’s son committed suicide.”

There were no allegations that the photos themselves were the false statements. But what about the caption, “[t]here is no better way to kill yourself,” you ask? Though the opinion does not address this point, one is left to conclude that that language could not be attributed to the defendant coroner, since it was his son that posted the photos, and not himself.

Photo courtesy Flickr user Fabio Beretta under this Creative Commons license.

November 4, 2009 Evidence, Litigation

Robbery conviction overturned because prosecutor played YouTube video during closing argument

Miller v. State, 2009 WL 3517627 (Ind. App. October 30, 2009)

Appellant Miller and his dad robbed Wedge’s Liquor Store in Logansport, Indiana back in November 2007. During the robbery Miller pulled out a shotgun and pointed it at the clerk’s face.

Get your grubby paws off my YouTube image

During closing argument at trial, the prosecutor showed the jury a video from YouTube to illustrate “how easy it was to conceal a weapon inside clothing.” The video was not admitted as evidence but was used merely as a demonstrative aid. The jury convicted Miller and the court sentenced him to 18 years in prison.

Miller appealed his conviction, arguing that the trial court made a mistake in letting the jury see the YouTube video. The court agreed with Miller and reversed.

The court noted that experiments and demonstrations may be permitted during trial if they will aid the court and jury. But in this case the court of appeals found that the YouTube video showing how weapons could be concealed could not possibly provide such aid. The state conceded in its appeallate brief that Miller’s defense theory was mistaken identity. So “the whole issue about the ability to hide weapons under clothing was ultimately unimportant.”

Moreover, before showing the video to the jury, the prosecutor said that the video “[had] nothing to do with this case.” The court of appeals agreed with Miller’s argument that the video “[brought] alive the passions of the jury . . . and suggested Miller was not only the robber but that he also . . . intended to . . . cause injury or death.” The video “was irrelevant, prejudical, and confused issues. . . .”

YouTube evidence picture courtesy Flickr user PIAZZA del POPOLO under this Creative Commons license.

November 3, 2009 Miscellaneous

In New Hampshire, your landlord has to give you free* cable

Lally v. Flieder, 986 A.2d 652 (N.H. 2009)

Hey, let’s watch HGTV and get some ideas for the apartment! It’s not like we have to pay for it or anything.

Anyone who has ever been a landlord will think the New Hampshire Supreme Court may have lost its mind. Those who like TV and broadband access a lot may think otherwise.

Awesome apartment with guitars that kick even more ass, yo.

Here’s the story.

A tenant told his landlord that he wasn’t going to pay rent anymore. So the landlord sued for unpaid rent and to get possession of the apartment back. Six days later the landlord disconnected the cable service. Turns out that was a no-no.

The nonpaying tenant countersued the landlord under a New Hampshire law that provides:

No landlord shall willfully cause, directly or indirectly, the interruption or termination of any utility service being supplied to the tenant including, but not limited to water, heat, light, electricity, gas, telephone, sewerage, elevator or refrigeration, whether or not the utility service is under the control of the landlord, except for such temporary interruption as may be necessary while actual repairs are in process or during temporary emergencies.

The trial court ruled in favor of the landlord, finding that cable service was not a protected utility and therefore by disconnecting the service, the landlord had not engaged in unlawful self help.

The tenant sought review with the New Hampshire Supreme Court. On appeal, the court reversed, finding cable service critical to the notion of “habitability.”

The court looked to the language of the statute and found cable service to be like the utilities specifically mentioned. The court observed that the specified utilities “all pertain to the habitability of a dwelling or a person’s well being.”

Right. In the middle of a brutal New Hampshire blizzard, nothing will keep you warm like a hearty dose of the Kardashians. And who doesn’t think the right to surf for porn is every bit as essential to a happy life as not having raw sewage backing up in your kitchen sink.

Apparently the members of the court really like watching TV and surfing the web using a broadband connection:

Modern cable television also pertains to the habitability of a dwelling and a person’s wellbeing. Indeed, many people access essential telephone service, the Internet, news information and entertainment by way of cable. Thus, the unlawful termination of a tenant’s cable television service would be a means of accomplishing a self-help eviction-the very evil the legislature meant to deter.

For these reasons, the court found that the landlord broke the law when it discontinued the nonpaying tenant’s cable service.

*Until the court kicks your ass to the curb.


Apartment photo courtesy Flickr user Jordan Roher under this Creative Commons license.

November 2, 2009 Miscellaneous

Relationship status and the law: it’s complicated

Online statements by mother were critical evidence in paternity case

Watermeier v. Moss, 2009 WL 3486426 (Tenn. Ct. App. October 29, 2009)

Under Tennessee law a man can petition the court to determine that he is the father of a child born to a woman who is married to someone else. (Better make sure there is good security in the courthouse parking lot!)

The court will consider a petition filed more than 12 months after the child’s birth untimely if : (1) the mother was married and living with her husband at the time of conception, (2) the mother and her husband “remained together” through the time the petition was filed, and (3) both the mother and her husband file a sworn statement saying the husband is the father.

Petitioner Watermeier asked the court to determine that he was the father of a child born to Appellee, a woman married to someone else. The woman and her husband opposed the petition. The parties did not dispute that she lived with her husband when the baby was conceived. The woman and her husband also both filed purportedly sworn statements that they were the parents of the child. The troublesome issue was whether the husband and wife had “remained together” through the time the petition was filed.

There was no dispute the two had separate residences. But they were not divorced and they testified they had no intention of getting divorced. In any event, the court found that the two had not “remained together” as provided under Tennessee law.

Among the important pieces of evidence the court relied upon in determining whether the two “remained together” were postings that the mother had made to an online dating service. On different occasions she had listed herself as “separated” and “divorced.” The court took these statements to “demonstrate that this is not an intact marriage and the parties have not ‘remained together.'”

So saying that “it’s complicated” might be an understatement, don’t you think?

Photo courtesy Flickr user debaird under this Creative Commons license.

October 26, 2009 Contracts, Litigation

Court upholds eBay forum selection clause

Tricome v. Ebay, Inc., 2009 WL 3365873 (E.D. Pa. October 19, 2009)

Everyone who signs up to use eBay has to assent to the terms of eBay’s User Agreement. Among other things, the User Agreement contains a forum selection clause that states all disputes between the user and eBay must be brought to court in Santa Clara County, California.

After eBay terminated plaintiff Tricome’s account, Tricome sued eBay in federal court in Pennsylvania. eBay moved to dismiss or to at least transfer the case, arguing that the forum selection clause required it. The court agreed and transferred the case to the U.S. District Court for the Northern District of California.

Plaintiff had argued that the court should not enforce the forum selection clause because it was procedurally and perhaps substantively unconscionable. The court found the agreement not to be procedurally unconscionable because Plaintiff did not have to enter into the agreement in the first place — he only did it to increase his online business. Furthermore, eBay did not employ any high pressure tactics to get Plaintiff to accept the User Agreement. Moreover, eBay had a legitimate interest in not being forced to litigate disputes all around the country.

The court likewise found the User Agreement was not substantively unconscionable either. It would not “shock the conscience” for a person to hear that eBay — an international company — would undertake efforts to focus litigation it is involved with into a single jurisdiction. Furthermore, having the forum selection clause would conserve judicial and litigant resources, in that parties and the courts would know in advance where the appropriate place for disputes concerning eBay would be heard. Finally (and rehashing an earlier point regarding procedural unconscionability), Plaintiff had a meaningful choice — he could have decided not to do business on eBay in the first place.

Map photo courtesy Flickr user sidewalk flying under this Creative Commons license.

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