Archive for October, 2007

Ninth Circuit: Website not liable for anonymously written, posted emails

Thursday, October 18, 2007

Pamela Roskowski, former police chief of Corvallis, Oregon, sued the Corvallis Police Officers’ Association (“CPOA”) and the International Brotherhood of Teamsters, Local 223, alleging libel, false light, and intentional infliction of emotional distress. Among many, MANY other things, Roskowski claimed that the defendants published numerous false and defamatory statements on a website created by CPOA. Magistrate Judge Donald C. Ashmanskas found that the website “allowed, if not encouraged, the public to post messages about Plaintiff. The website was advertised in the local newspaper and was intended to be used as a public forum for discussion about Plaintiff and her service as chief of police.” Roskowski challenged the publication of “unverified” anonymous e-mail on CPOA’s website:

The information complained about is the anonymous e-mails critical of Plaintiff’s performance as chief of police that were made available through the website. Defendants claim that each of these e-mails was posted directly to the website by the anonymous author and that Defendants had no control over who posted or what was posted on the website. Plaintiff has offered no evidence to the contrary. All of the e-mails presented to the court were addressed to the mayor, members of the Corvallis city council and/or radio talk show host Lars Larson and were written by individuals under fictitious names. There is no evidence that the e-mails were forwarded to Defendants prior to being posted to the website or that Defendants had any control over the information contained in the e-mails that were posted on the website. The information complained about by Plaintiff was provided solely by an information content provider other than Defendants.

Playing right into the defendants’ hands, Roskowski asserted that the Defendants were liable for “publishing” the emails. Not unexpectedly, Magistrate Judge Ashmanskas rightfully concluded that “[p]laintiff is clearly treating Defendants as publishers or speakers of the information. Defendants qualify for protection under [Section 230] and can not be held liable for any defamatory information posted by others on its website.”

In a memorandum opinion filed last week (designated as not appropriate for publication/non-precedential), a Ninth Circuit panel affirmed Judge Anna Brown’s grant of summary judgment in favor of the defendants (which was granted after Judge Brown adopted Magistrate Ashmanskas’ Findings and Recommendation quoted from above). Citing Section 230 and several Ninth Circuit decisions, the panel ruled that Roskowski did not demonstrate that CPOA itself made the subject postings, thus, “she cannot hold CPOA liable for the content of the postings.”

No surprises here. However, some of the language in the Magistrate’s F&C (which was left untouched by the District Court and the Ninth Circuit) concerns me. In fact, it would seem that with a few different (but innocuous) facts, this case could have gone the other way.

First, why is a federal magistrate relying upon a 2001 Washington state appellate court decision when reciting the Section 230 immunity framework?

Second, the F&C states that “[t]o qualify for protection under the Act, the interactive computer service . . . can not control the information provided in any way” (emphasis added). I think this is an overstatement. See, uh, Section 230 case law.

Third, in support of the aforementioned quotation, the F&C cites the district court decision in Carafano. While that opinion was affirmed by the Ninth Circuit, it was done so on other grounds, and contrary to the Ninth Circuit’s opinion, concluded that Section 230 immunity did not apply to the subject website. Why is the F&C citing this ruling?

Fourth, and perhaps most disconcerting, the F&C states that “[t]here is no evidence that the e-mails were forwarded to Defendants prior to being posted to the website or that Defendants had any control over the information contained in the e-mails that were posted on the website.” I already made my point about the ‘control’ issue, so I won’t address that again. But as for how the e-mails came to be published on the CPOA website, would it have made a difference if the emails had been faxed to the website owner, and then posted by the website owner on the website? I’m reminded of the Ninth’s Circuit Batzel decision, which was issued well before the Magistrate ruled here. Because in my example the emails would have been provided to CPOA in its role as a provider of an interactive computer service, I tend to think this indirect transmission route would not have made a difference for immunity purposes. Yet the F&C makes no reference to Batzel, and in fact suggests a different outcome would be appropriate under my example.

Bottom line, had CPOA posted material intended for the website, but that it had received via regular mail, or edited materials posted on the website to, say, remove the names of private citizens, it’s possible this case (at least as far as the Magistrate is concerned) would have come out differently.

Xcentric wins one in Arizona

Friday, October 12, 2007

Earlier this year Global Royalties, Ltd. and its principal, Brandon Hall (“Plaintiffs”), sued Xcentric Ventures, LLC and its Manager, Edward Magedson (“Defendants”), in Arizona federal court for defamation.

As you may know, the defendants operate ripoffreport.com, a website that solicits consumer complaints. The basis of the defamation claim were statements by one Spencer Sullivan, who apparently posted messages on the site (i) referring to Global’s operation as a “scam”; (ii) stating that two individuals “involved with” Global “had written bad checks and otherwise treated him dishonorably”; and (iii) stating that “any upstanding commercial operation could bear the scrutiny of a crime unit without any issue” (posted after plaintiffs had discouraged potential customers from contacting Canadian law enforcement). Defendants allegedly refused Sullivan’s subsequent request to remove his posts from the website.

Noting that the allegedly defamatory statements were written by Sullivan, and not defendants, earlier this week Judge Frederick J. Martone ruled that Section 230 precluded plaintiffs’ defamation claims. In so doing, the court rejected plaintiffs’ argument that by failing to remove the subject posts, defendants had adopted them (which they argued was tantamount to creation or development). The court noted that established law rejected such assertions of notice, and the Defendants’ failure to remove the allegedly defamatory statements was an exercise of a publisher’s traditional editorial functions.

I noticed that the court characterized as “minor and passive participation in the development of content” the fact that defendants allegedly “supplied a list of titles from which Sullivan picked the phrase ‘Con Artists’ to label [his first allegedly defamatory] statement.” I have not reviewed plaintiffs’ complaint, but if the ‘Con Artists’ label is beyond the scope of the substantive defamation allegations, such participation seems entirely irrelevant to the Section 230 analysis.

Chicago Lawyers’ Committee files appellate brief in Craigslist litigation

Friday, October 12, 2007

Complying with the recently announced filing deadline, the Chicago Lawyers’ Committee has filed an appellate brief in its case against Craigslist, presently pending before the Seventh Circuit.

Buried in a footnote is where I found the only reference to the Ninth Circuit’s now-benched Roommate.com decision. While the issues presented in the two Fair Housing Act cases are not identical, I would have expected CLC’s counsel to try to make more of the Ninth Circuit’s decision. I suppose it’s basically a moot point now.

I’m very much looking forward to attending the oral argument in this one.

Full Ninth Circuit to rehear Roommate.com case

Friday, October 12, 2007

Remember the Ninth Circuit’s ruling in Fair Housing Council of San Fernando Valley v. Roommate.com LLC? How could you forget.

Plaintiff fair-housing groups had charged Roommate.com with Fair Housing Act violations in connection with its online questionnaires and member profiles. This past May a three-judge Ninth Circuit panel ruled that Section 230 does not immunize Roommate.com for all of the content on its website and in its email newsletters. Specifically, the panel concluded that Roommate was “responsible” for its questionnaires because it created or developed the forms and answer choices (rendering the website a content provider of the questionnaires). Explaining that it did not read Carafano “as granting CDA immunity to those who actively encourage, solicit and profit from the tortious and unlawful communications of others,” the panel also ruled that

[b]y categorizing, channeling and limiting the distribution of users’ profiles, Roommate provides an additional layer of information that it is “responsible” at least “in part” for creating or developing.

The decision thus left Roommate.com exposed to potential FHA liability for its questionnaires and user profiles. But that may change.

Eric Goldman and Howard Bashman report on their respective blogs today that the Ninth Circuit has granted Roommate.com’s petition for rehearing en banc. Stay tuned.

Regulation of Online Intrastate Gambling

Friday, October 12, 2007

Earlier this week Congressman Tom Feeney (R-Fla), in written materials supplementing previous floor remarks, addressed the 2006 Unlawful Internet Gambling Enforcement Act and what he views as a threat to that law:

[L]ast year, I cosponsored legislation with Congressman Bob Goodlatte to help stop the widespread growth of gambling over the internet. Though Federal law already prohibits gambling over telephone wires, the passage of this legislation was necessary to maintain the original intent of the law while also bringing it up to speed with the explosion of current and future technology. However, this update of the law made clear that it would only affect interstate commerce, respecting the rights of states by leaving to them the decision whether and how to regulate gambling within their own borders. New legislation before the Financial Services Committee attempts to undo all of this previous work, instead granting the federal government the expansive and exclusive right to regulate all online gambling. This new legislation would represent the first time in history that the Federal Government would be given power to issue gambling licenses, and it marks a significant shift away from allowing states to determine for themselves what type of policy is best. Proponents of this legislation state that the bill offers states the right to “opt out” of this regulation, but the truth is that the states already have the right to determine their own policy towards gambling without any broader federal regulation that threatens to undermine their control over licensing standards and enforcement actions.

I haven’t seen the bill the Congressman is referring to, and I’m not expressing any opinion here about gambling, or whether it should be legal. But I am scratching my head about the concept of online intrastate gambling.

Is it technologically feasible for a wagering site based in Illinois to only allow persons physically located in Illinois to place bets? I suppose it could be tried, but something tells me that lots of determined people would find ways around such a restriction, which would presumably invite federal attention.

Perhaps the bill’s opponents are instead worried about states losing out on tax revenues that could one day be extracted from online gambling sites purportedly operating exclusively within a single state?

If anyone is familiar with the proposed legislation, I’d be interested in your opinion.