Justia Internet Law Opinion Summaries

DirecTV and Dish Network (“Defendants”) provide video services in part through the Internet. The City of Creve Coeur filed this class action in Missouri state court on behalf of local government authorities, seeking a declaratory judgment that Defendants are liable under the Video Services Providers Act (“VSPA”) and implementing local ordinances, plus injunctive relief, an accounting of unpaid fees, and damages. Defendants removed the action based on diversity jurisdiction and the Class Action Fairness Act (CAFA). After the state court entered an interlocutory order declaring that VSPA payments are fees, rather than taxes, DirecTV filed a second notice of removal, arguing this order established the required federal jurisdiction. The district court granted Creve Coeur’s motion to remand.   The Eleventh Circuit affirmed on different grounds. The court explained that the district court’s remand order plainly stated that the remand was based on comity principles as articulated in Levin, not on “state-tax based comity concerns.” Comity as a basis to remand was raised and fully argued in the first remand proceeding. Federal courts have long precluded two bites at this apple. Second, the Supreme Court in Levin emphatically stated that the century-old comity doctrine is not limited to the state-tax-interference concerns that later led Congress to enact the TIA. Third, the state court’s December 2020 Order addressed, preliminarily, only the VSPA fee-or-tax issue under state law. It did not address the broader considerations comity addresses. The state court order in no way overruled or undermined the basis for the district court’s first remand order. Therefore, DirecTV failed to establish the essential basis for a second removal. View "City of Creve Coeur v. DirecTV LLC" on Justia Law

After unfavorable comments were posted about Test Prep, the company and its owner filed suit against several defendants, including Allnurses and its founder and a user. Test Prep alleged claims sounding in defamation, contract, and fraud, as well as other theories of liability asserting that Allnurses had induced users to post negative comments. The district court granted Allnurses' motion for judgment on the pleadings and dismissed the suit against the user for lack of personal jurisdiction.The court held that Allnurses was immunized under Section 203 of the Communications Decency Act from liability arising from the posts on the message board. The court held that Test Prep failed to plausibly allege that Allnurses was the "information content provider" of the posts at issue. In this case, the sum total of the complaint's factual allegations pleaded no more than a "sheer possibility" that Allnurses was wholly or partly responsible for creating or developing the posts made by the message board users. Furthermore, in the absence of any contractual relationship between Test Prep and Allnurses, there is no basis for the complaint's allegation that Allnurses had certain obligations to Test Prep including to take down defamatory or libelous posts. The court also held that an individual user plaintiff failed to plead facts sufficient to establish a breach of the terms of the service contract; the district court properly granted judgment in favor of Allnurses on the promissory estoppel claim; claims of fraud and claims based on other theories of liability rejected; the district court did not err in granting the user's motion to dismiss for lack of personal jurisdiction; and the district court did not err in granting Test Prep's motion to transfer the case. View "East Coast Test Prep LLC v. Allnurses.com, Inc." on Justia Law