FC: California court awards attorney fees to anonymous posters

From: Declan McCullagh (declanat_private)
Date: Fri May 18 2001 - 08:59:19 PDT

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    Court order in Global Telemedia anonymity case:
    http://www.cacd.uscourts.gov/CACD/RecentPubOp.nsf/bb61c530eab0911c882567cf005ac6f9/f7212ed54f47e7c588256a0d005e4715?OpenDocument
    
    And, a related story about Indian police banning anonymity by requiring 
    visitors to cybercafes to provide ID:
    http://in.news.yahoo.com/010516/48/vla9.html
    
    -Declan
    
    ---
    
    Date: Fri, 18 May 2001 10:19:35 -0400
    To: Declan McCullagh <declanat_private>
    From: David Sobel <sobelat_private>
    Subject: Court awards att'y fees to anonymous posters
    
    
    Declan -
    
    FYI.
    
    - D.
    
    
    
    For Immediate Release:                          Contact: Megan E. Gray, 
    (213) 975-1763
    May 18, 2001
    
    
    Court Orders Company and Its Officers to Pay Internet Posters
    More Than $55,000 in Attorneys' Fees
    
    Anti-SLAPP Statute Mandates Money Award When Lawsuit
    Is Filed In Violation of Free Speech Rights
    
    
    LOS ANGELES, CA --  In a first of its kind, a federal court in California 
    has ordered a publicly traded company and two of its executive officers to 
    pay more than $55,000 in attorneys' fees incurred by two individuals that 
    they sued for posting critical comments on a popular Internet message board.
    
    On February 26, 2001, the court dismissed the lawsuit filed by Global 
    Telemedia International, Inc. ("GTMI," now trading as "GLTI") and its 
    officers Jonathan Bentley-Stevens and Regina Peralta against several 
    anonymous John Does for negative posts on a Raging Bull message board.  The 
    plaintiffs had claimed that certain posts had crossed the line into 
    defamation and interference with economic prospects.  Defendants argued 
    that the suit was brought against them as a "transparent effort to 
    intimidate and silence individuals who are critical of GTMI's corporate 
    performance."  These disfavored lawsuits are commonly referred to as 
    Strategic Litigation Against Public Participation or SLAPP lawsuits.  Under 
    California law, a defendant can move to dismiss the lawsuit if the alleged 
    bad acts arose from his exercise of free speech in connection with a public 
    issue and if the plaintiff cannot show a probability of success on the 
    merits.
    
    Recently, after prevailing in their motions to dismiss the lawsuit, the 
    posters filed motions asking the Court to order the plaintiffs to pay all 
    their attorneys' fees incurred in defending against the meritless 
    lawsuit.  Under California law, an award of attorneys' fees is mandatory if 
    a case is shown to be a SLAPP lawsuit.  Yesterday, the posters learned that 
    the Court granted their motions, awarding over $55,000.
    
    This is the first time a court has applied the mandatory attorney-fee 
    provision in the anti-SLAPP statute to a defamation lawsuit involving 
    anonymous internet message-board posters.  The large attorney-fee award may 
    stem the hundreds of "cybergag" lawsuits being filed around the country to 
    stifle internet speech expressing negative opinions about matters of public 
    interest, like poor corporate performance.
    
    The attorneys for one of the defendants, Megan Gray and Brian Ross of Baker 
    & Hostetler LLP, are pleased with the court's ruling.  Gray stated, "This 
    is exactly the kind of case that the anti-SLAPP statute, and its mandatory 
    attorney-fee award, was designed for -- plaintiffs need to realize that 
    there is a significant downside to filing a frivolous lawsuit aimed at 
    chilling protected speech."
    
    In the Court's prior order, Judge David Carter determined that internet 
    message boards are, as a general matter, forums for the expression of 
    opinion, not fact.  " The statements were posted anonymously in the general 
    cacophony of an internet chat-room which posts around 1,000 messages a week 
    on GTMI…They were part of an on-going, free-wheeling and highly animated 
    exchange about GTMI and its turbulent history.  Importantly, the postings 
    are full of hyperbole, invective, short-hand phrases…the posts are written 
    with a great deal of linguistic informality."  Turning to the specific 
    posts, the court held that "reasonable readers would not take these posts 
    to be anything more than a disappointed investor who is making sarcastic 
    cracks about the company.  The reasonable reader, looking at the hundreds 
    and thousands of postings about the company from a wide variety of posters, 
    would not expect that the defendant was airing anything other than his 
    personal views of the company and its prospects."
    ###
    Megan Gray and Brian Ross are attorneys with Baker & Hostetler in Los 
    Angeles.  They represent many clients in connection with internet issues, 
    online privacy, anonymous speech, and related issues.  With approximately 
    400 attorneys, Baker & Hostetler LLP is among the nation's top law 
    firms.  With lawyers practicing in virtually all areas of law, Baker & 
    Hostetler also has a significant technology, First Amendment, and 
    intellectual property practice.  The Firm has offices in Los Angeles, Costa 
    Mesa, Cleveland, Cincinnati, Columbus, Denver, Houston, Orlando, and 
    Washington.  More information about Baker & Hostetler can be found at 
    www.bakerlaw.com.
    
    
    
    
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