Dow Jones & Co., Inc. v. Harrods, Ltd.

237 F. Supp. 2d 394, 2002 U.S. Dist. LEXIS 19516, 2002 WL 31307163
CourtDistrict Court, S.D. New York
DecidedOctober 11, 2002
Docket02 Civ. 3979(VM)
StatusPublished
Cited by69 cases

This text of 237 F. Supp. 2d 394 (Dow Jones & Co., Inc. v. Harrods, Ltd.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dow Jones & Co., Inc. v. Harrods, Ltd., 237 F. Supp. 2d 394, 2002 U.S. Dist. LEXIS 19516, 2002 WL 31307163 (S.D.N.Y. 2002).

Opinion

DECISION AND ORDER

MARRERO, District Judge.

TABLE OF CONTENTS

Page

INTRODUCTION .399

I.BACKGROUND. CO CO CO

A. FACTS. CO CO CO

B. THE ARGUMENTS |£- O to

II. STANDARD OF REVIEW .404

III. DISCUSSION.404

A. ACTUAL CONTROVERSY.406
1. Meaning and Scope of Actual Controversy.406
2. The Actual Controversy Standard Applied.407
3. First Amendment Considerations.409
4. Intercourt Conflict and Comity.410

*399 5. Other Case Law.413

B. PURPOSES OF THE DJA.418
1. Constitutional Dimensions.418
2. Antisuit Injunctions.420
3. Concurrent Jurisdiction .421

a. Jurisdictional Basis .421

b. Basis for Injunctive Relief.422

4. Preemptive Judgments.425
5. Unique Complexities of Public Policy.427
C. COURT DISCRETION.431
1. Resolution of the Controversy.437
2. Useful Purpose.439
3. Forum Shopping .439
4. Conflict with Another Jurisdiction .440
5. Adequate Alternate Remedy.442

a. Pendency of Another Action.442

b. Comity.443

c. Exception to Comity .446

IV. PERSONAL JURISDICTION . 447

V. ORDER .447

Plaintiff Dow Jones & Company, Inc. (“Dow Jones”) brought this action against defendants Harrods, Limited (“Harrods”) and Mohamed Al Fayed (“Al Fayed”) requesting a declaratory judgment and injunctive relief. Dow Jones seeks to preclude Harrods and Al Fayed from pursuing claims for defamation asserted in a lawsuit Harrods commenced against Dow Jones in the United Kingdom arising from the publication 'of an article in The Wall Street Journal (the “Journal”) in April of this year. Now before the Court is a motion by Harrods and Al Fayed, pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(2), to dismiss the complaint. At issue is whether the federal Declaratory Judgment Act (the “DJA”) may be applied for the purpose of the judgment Dow Jones seeks, or whether, assuming the DJA were properly invoked, based on the facts presented here . the Court should exercise its discretion under the DJA to grant or deny declaratory relief. For the reasons discussed below, the motion is granted.

I. BACKGROUND
A. FACTS

To the question “What is in a joke?”, this lawsuit gives a decidedly wooden answer: a federal case. 1 Beyond the purported humor that gave rise to the conflict, however, he several serious questions entailing federal statutory and constitutional law, as well as issues of weighty international dimensions.

The action began with an April Fool’s joke. Harrods, which, among various other commercial enterprises, operates the well-known department store of that name *400 in London, England, issued a press release on March 31, 2002, headlined “Al Fayed Reveals Plan to ‘Float’ Harrods.” The release stated that Al Fayed, Harrods’ Chairman and effective owner, would issue on the following day an important announcement “about his future plans for the world-famous store,” including “a first-come-first-served share option offer.” 2 Journalists seeking further comment were directed to contact “Loof Lirpa” at Harrods. In fact, “Loof Lirpa” is “April Fool” spelled backward. On April 1, 2002, the planned announcement posted on the designated website described Al Fayed’s decision to “float” Harrods by building a ship version of the store to be moored in London on the embankment of the Thames River. The announcement included a limited offer of “shares in this exciting new venture.” Persons who registered on the website by noon that day, “the first of April!”, were promised “a share certificate.” 3

Dow Jones read the March 31 press release as purporting to announce that

Harrods planned to “float shares,” i.e., a public offering of stock. It did not wait to see Harrods’ actual disclosure on the announcement date. Instead, on April 1, in the print editions of the Journal in the United States, and in the Journal’s website “WSJ.com.,” Dow Jones published an article reporting that Harrods would disclose plans that day to publicly list the company’s shares. 4

Upon learning that Harrods’ announcement had been an April Fool’s joke, the Journal published a correction so advising its readers in an item that appeared in its April 2, 2002 print editions in the United States as well as on WSJ.com. Three days later, Dow Jones countered with a story it asserts was intended as the Journal’s own brand of wry, light-hearted humor, the article that ultimately catapulted into the conflict now before this Court. The Journal’s “Deals & Deal Makers: Bids & Offers” column on April 5, 2002 published an item entitled, “The Enron of Britain?” (the “April 5 Article”). 5 The first sentence of the April 5 Article, which appeared in the *401 Journal’s, United States print edition and on WSJ.com., states that: “If Harrods, the British luxury retailer, ever goes public, investors would be wise to question its every disclosure.” It then detailed the April Fool’s joke, which the story reported had been mistaken by “some news organizations” as an announcement of a plan to sell Harrods shares publicly. Dubbing the prank “[n]ot exactly Monty Python-level stuff,” the column questioned whether Harrods could “get in trouble for messing with the facts?” by issuing the bogus press announcement.

At this point the lawyers entered. Promptly the face of comedy began to furrow and its smile to curl into what often becomes tragedy’s first sour frowns and snarls: incipient litigation. As the lawyers recount the tale, Harrods apparently did not see any humor in the article, and rather took umbrage from the Journal’s reference to it and Enron in the same breath.

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237 F. Supp. 2d 394, 2002 U.S. Dist. LEXIS 19516, 2002 WL 31307163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dow-jones-co-inc-v-harrods-ltd-nysd-2002.