Court Lacks Personal Jurisdiction Over Nonresident Blogger, Website Host
The Delaware Superior Court has ruled on an issue over an allegedly defamatory article that caused injury to a Delaware corporation hosted on a website outside of Delaware.
June 07, 2017 at 10:30 AM
6 minute read
In Rotblut v. Terrapinn, C.A. No. N15C-12-024-AML (Del. Super. Sept. 30, 2016), Judge Abigail LeGrow confronted the following question: When an allegedly defamatory article caused injury to a Delaware corporation, but the article was posted solely on a website with no connection to Delaware, while the author was outside Delaware, and without any nexus between either the author, the website's host and Delaware, can jurisdiction be maintained against the author of the article and the host of the website? Her answer: no. Although the opinion makes passing references to federal constitutional due process concerns, LeGrow's analysis rests squarely on Delaware's long-arm statute.
The case was brought by Jeffrey Rotblut, the CEO of UBO Proprietary Trading, and UBO, an alternative asset manager, research firm and system developer for institutions and high-net worth individuals. UBO was a Delaware corporation. The defendants were Terrapinn Inc., a business media company organized in Delaware that promotes and conducts trade exhibitions, conferences, training solutions and electronic and print publications worldwide; its parent company, Terrapinn Holdings, a U.K. company; and Lewis Wilkins, an individual and citizen of the District of Columbia.
Rotblut participated as a panelist in a conference hosted by Terrapinn in New York City. Following the conference, Wilkins authored an article posted on Terrapinn's “Total Trading” blog concerning the panel. The article attributed a statement to Rotblut that his trading firm once lost $40 million in about 20 minutes, a statement, according to the complaint, was actually made by another panelist. Because the article said the plaintiffs incurred huge trading losses in a very short period of time, the plaintiffs alleged that their ability to raise capital and ongoing discussions with potential investors ceased following the article's publication.
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