Two particularly important cases were decided by the Court of Appeals last month, in both of which the Court was divided. In Shiamili v. The Real Estate Group of New York Inc., the Court held (4-3) that blog operators alleged to have not only displayed an anonymous posting but also to have moved it to a more prominent area of the blog under mocking headlines and added a doctored photograph with the caption “King of the Token Jews” were immune from claims of defamation and unfair competition by disparagement under the Communications Decency Act. In ABN AMRO Bank, N.V. v. MBIA Inc., the Court held (5-2) that policyholders affected by a series of transactions that allegedly left an insurer undercapitalized could challenge the transactions in a suit against the company under the Debtor and Creditor Law and common law, and were not confined to bringing an Article 78 proceeding against the Insurance Superintendent who approved the transactions as their only avenue for relief.

Communications Decency Act

The Court of Appeals has issued its first decision applying the federal Communications Decency Act, 47 U.S.C. §230 (CDA). It is an important decision. In its 4-3 opinion in Shiamili v. The Real Estate Group of New York Inc., the deeply divided Court affirmed dismissal of claims for defamation and unfair competition by disparagement against website operators it deemed immune from such claims under the CDA.

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