On December 10, 2002, the High Court of Australia issued its decision in Dow Jones v. Gutnick, affirming the jurisdiction of the courts in the Australian State of Victoria to try a suit brought by Mr. Gutnick against Dow Jones for articles published by the latter on its Internet news service alleging that Mr. Gutnick was a money-launderer and tax evader. The court considered the publisher's request to create a special rule for Internet defamation, but decided to uphold the pre-existing technology neutral rule that a statement is published where the recipient receives the statement and that jurisdiction may be exercised wherever a defamatory statement is published and the plaintiff's reputation is harmed. In the case of defamatory statements made on the Internet, the court held that Australia may exercise its jurisdiction over an out-of-country defendant that could reasonably know that the plaintiff had a reputation in Australia. Sufficient connections between the defendant and Australia arise as a question of enforcement of judgement, and not on the issue of choice of forum or choice of law. By contrast, on December 13, 2002, the U.S. 4th Circuit Court of Appeals issued an opinion in Young v. New Haven Advocate, holding that Virginia cannot exercise personal jurisdiction over two small Connecticut based newspapers and their employees for allegedly libellous statements against a Virginia prison warden posted on their websites. The court applied the standard laid out in ALS Scan, Inc. v. Digital Service Consultants, Inc., finding that the newspapers did not have sufficient minimal contact with Virginia because they did not manifest an intent to aim their websites at a Virginia audience. For the full text of the High Court of Australia decision in Dow Jones v. Gutnick, visit: http://www.austlii.edu.au/au/cases/cth/high_ct/2002/56.html For the full text of the U.S. 4th Circuit Court of Appeals decision in Young v. New Haven Advocate, visit: http://pacer.ca4.uscourts.gov/opinion.pdf/012340.P.pdf

E-TIPS® ISSUE

02 12 19

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