Blogger Is Sued for Business Disparagement


This blogger was sued by this company for this post, for which plaintiff alleges damage to business reputation, business disparagement and loss of earning capacity (client signup and retention). (Interestingly, the item published in the post gives the blogger a defamation case against the author.)

Read the legal papers here.

A legal defense fund for the blogger has been set up by Greg Swann at BHB. A noble deed.

NOTE: To those who have been following the ongoing affair, the lawsuit is NOT about the posts which were referenced in the Cease and Desist letter. This lawsuit is about a later post.

What happens next?

The plaintiff brought suit in California against the individual blogger who resides in New Jersey. While there is subject matter jurisdiction (a claim under law this court has authority to adjudicate), I expect a motion to dismiss for lack of in personam (personal) jurisdiction– in layman’s terms, the plaintiff does not do business in, nor have sufficient contact with, California, to be fairly hauled into a California court.

The Law and its Long Arm

The legal test for personal jurisdiction over nonresidents:

The nonresident defendant must have certain minimum contacts with [the forum State] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice’.

Traditional notions of fair play and substantial justice (”due process “) derive from the 14th Amendment to the US Constitution.

The state laws which define “minimal contacts” are known as long arm statutes (you know, the long arm of the law). Minimal contact issues consider, among other things, where a person advertises or derives income, owns property (in rem jurisdiction– the case has to involve the property), does business, or would expect to get sued if they committed an act in that state (eg. car accident, assault). Each state is free to define its own standards of minimal contact BUT those standards must not violate the due process clause of the 14th amendment. Y’all gotta be fair.

California’s Long Arm statute is very broad. It goes as far as the California or US constitutions allow. It is set forth in Cal.Civ.Proc. Code Section 410.10 and reads, with unlawyerlike brevity, as follows:

410.10. A court of this state may exercise jurisdiction on any basis not inconsistent with the Constitution of this state or of the United States.

The nature of the blog and the internet will surely play a role in the decision. My gut says it gets tossed, but I know CA to be legally unpredictable. I’ll have to research some cases when I get a chance.

BTW, if anyone has any links to cases (CA, Ninth Circuit, US Supreme Court) on personal jurisdiction/CA long arm statutes involving blogs, put them in the comments.

(Note: The fact that First Amendment issues are involved in a case has no bearing or effect on whether personal jurisdiction has been obtained . Those issues go to the merits of the case.)

All bloggers ought to know how to stay out of the way of lawyers. Most conferences do not cover this aspect of blogging. Inman News, to its credit, will have a panel on the subject. Blogging Pitfalls: How NOT to Get Sued at the Blogger Connect. (disclosure: I am moderating the panel and am a lawyer in real life)

(Image thanks to Image Generator).

Further Reading and Related Posts:

International Shoe Co. v. Washington (US Supreme Court 1945) - seminal case

Did Blogger Defame Miami Developer? A $25 million Libel Lesson

Playboy Playmate Sues Blogger for Libel

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  • Thanks for taking this up, Joe.
  • Thanks for rallying the troops, Greg. I have been working behind the scenes. We will get this to end well.
  • It is great to hear a legal opinion on this issue. I have spent a lot of time on this myself and I am so happy to see so many good people getting involved.

    Thanks,
  • Joe
    I haven't checked but I think some state long arm statues include internet contacts. Since a person who publishes on the internet has the ability to reach other states, I believe some states will deem that sufficient to satisfy the minimum contacts standard.
  • Lou,

    Right. That is the analogy to national publications. My experience has been that courts will look for the money -- if they determine that you are a commercial enterprise or deriving income from the state (usually not a one shot deal), that is enough. I would be surprised if a personal, non-commercial blog was held to the same standard as a publisher for profit. I too have to check the cases in CA to determine if that is a distinguishing factor.

    I think that would set a dangerous precedent for personal bloggers and have a chilling effect on speech. If plaintiff were another individual, I could see it falling the other way-- but a company--no.

    Oh, the grey fog of law.
  • Thanks Lou. Apparently, the Ninth Circuit (which includes CA) has adopted the more reasonable Zippo approach, favoring this blogger.
  • Slim...cheesball... those are just some of the words that come in my mind on this. Never heard of e-perks before but then again, I try to stay as far away from lead generation pilferers as possible.

    Glad to see that the troops are rallying for one of our own. This should not even be a case, in my opinion. I was under the impression that we lived in America and had rights to free speech.

    And this blogger has the right to block any comments that he wishes...

    I'd throw the whole thing out of court if it got that far. Can't imagine wasting precious court time on this.

    Looking forward to see you at Inman again this year.
  • Hi Joe

    I was hoping some of the more "legally adept" would give some input.

    I don't want to blow the possible arguments, but Vlad in some way had a commercial contact with the plaintiff writing a paid review for them, thus some of his income is certainly from the state.

    As far as I am aware, his real estate blog figures very low in his sources of income - he might have been able to buy a few beers with what he earned for the review.
  • Given the amount of information generated about this, I think they would be better off dropping the whole thing.
  • Hi Andy

    You raise a good point and one that will certainly be argued in the motion papers to the court.

    That may be true--- but one commercial transaction is normally insufficient to establish minimal contact UNLESS the dispute arose over that paid post. Had they sued under the original C&E;, they would have a better argument for jurisdiction. The subject post may be enough removed in character to be distinct from the review post.

    Still, the court will consider who solicited whom for the pay-for-post business. If ePerks approached him, it changes the character of the contact and works in Vlad's favor.

    If the jurisdiction turns on the pay-for-post income, no blogger in their right mind would do one.

    Lesson one: Think long and hard before doing a pay-for post review. Add an ironclad disclaimer if you do (with provision for attorney fees and court costs).
  • If VLAD wants to end this just send the attorneys this link. - Look at the areas I boxed in Red.
    http://www.interiorliving.com/eperks.jpg

    For those who need an explanation.
    http://www.robotstxt.org/faq/prevent.html

    How do I prevent robots scanning my site?
    The quick way to prevent robots visiting your site is put these two lines into the /robots.txt file on your server

    I would estimate they did this around October/November and didnt change it.

    Now ejerks go fire your webmaster and stop the stupid lawsuit its your webmasters fault not anyone elses.

    Mitchell
    InteriorLiving.Com
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