General Steel Domestic Sales, L.L.C. v. Chumley

840 F.3d 1178, 44 Media L. Rep. (BNA) 2569, 2016 U.S. App. LEXIS 19629, 2016 WL 6441028
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 1, 2016
Docket15-1293
StatusPublished
Cited by5 cases

This text of 840 F.3d 1178 (General Steel Domestic Sales, L.L.C. v. Chumley) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Steel Domestic Sales, L.L.C. v. Chumley, 840 F.3d 1178, 44 Media L. Rep. (BNA) 2569, 2016 U.S. App. LEXIS 19629, 2016 WL 6441028 (10th Cir. 2016).

Opinion

KELLY, Circuit Judge.

Defendants-Appellants Atlantic Building Systems, LLC d/b/a Armstrong Steel Corporation and its CEO, Ethan Chumley (collectively, “Armstrong Steel”), appeal from the district court’s denial of immunity under the Communications Decency Act (“CDA”). Gen. Steel Domestic Sales, Inc. v. Chumley, No. 14-cv-01932-REB-CBS, 2015 WL 4911585, at *5-9 (D. Colo. Aug. 18, 2015). We dismiss this appeal for lack of jurisdiction. We conclude that the CDA *1178 provides immunity from liability, not suit, and the district court’s order does not qualify under the collateral order doctrine.

Background

This case involves a dispute between two competing prefabricated steel building companies in Colorado. General Steel employed Mr. Chumley until 2005, when he left to start his own competing steel building company, Armstrong Steel. The parties have been engaged in numerous legal disputes ever since.

The underlying dispute involves Armstrong Steel’s negative online advertising campaign against General Steel. When internet users searched for “General Steel,” negative advertisements from Armstrong Steel would appear on the results page. 1 Aplt. App. 28-29. Clicking on the advertisements would direct users to Armstrong Steel’s web page entitled, “Industry Related Legal Matters” (“IRLM Page”).

The IRLM Page contained thirty-seven posts, twenty 1 of which form the basis of General Steel’s complaint. 3 Aplt. App. 387-488. To varying degrees, the twenty posts summarize, quote, and reference lawsuits involving General Steel. Each lawsuit is listed with a title, a brief description of the case, and a link, by which the reader could access the accompanying court document. The majority of the case descriptions contained quotes that were selectively copied and pasted from the underlying legal documents.

General Steel brought four claims: (1) unfair competition and unfair trade practices under the Lanham Act, (2) libel and libel per se, (3) intentional interference with prospective business advantage, and (4) civil conspiracy. Armstrong Steel sought summary judgment, claiming immunity from suit and liability under Section 230 of the CD A.

' The district court found that Armstrong Steel was entitled to immunity for three posts because those posts simply contained links to content created by third parties. The court refused, however, to extend CDA immunity to the remaining seventeen posts and the internet search ads. The court found that the “defendants created and developed the content of those ads,” and were therefore not entitled to immunity. Gen. Steel, 2015 WL 4911585, at *7. With respect to the remaining seventeen posts, the court found that the defendants developed the content by selectively quoting and summarizing court documents in a deceiving way. Id. at *8. It also held that the CDA’s immunity provision does not apply to the Lanham Act. Id. at *9. Armstrong Steel appeals from the denial of immunity and claims appellate jurisdiction under the collateral order doctrine.

Discussion

This court has jurisdiction over “final decisions” made by district courts. 28 U.S.C. § 1291. Under the collateral order doctrine, we may exercise jurisdiction over non-final decisions if the appellant shows that the district court’s order “[1] conclusively determine[d] the disputed question, [2] resolve[d] an important issue completely separate from the merits of the action, and [3] [is] effectively unreviewable on appeal from a final judgment.” P.R. Aqueduct & Sewer Auth. v. Metcalf & Eddy, Inc., 506 U.S. 139, 144, 113 S.Ct. 684, 121 L.Ed.2d 605 (1993) (internal quotations omitted). See generally Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541, 546, 69 S.Ct. 1221, 93 L.Ed. 1528 (1949). Thus, we lack jurisdiction over non-final orders unless these three requirements are met. *1179 United States v. Copar Pumice Co., 714 F.3d 1197, 1204 (10th Cir. 2013). Because we find that Armstrong Steel cannot meet the third factor, it is unnecessary to address the first two. See Stringfellow v. Concerned Neighbors in Action, 480 U.S. 370, 375, 107 S.Ct. 1177, 94 L.Ed.2d 389 (1987).

We apply the collateral order doctrine narrowly so as not to undercut the final-judgment rule. Dig. Equip. Corp. v. Desktop Direct, Inc., 511 U.S. 863, 868, 114 S.Ct. 1992, 128 L.Ed.2d 842 (1994). The requirements for collateral-order appeal are stringent. Id. Although the Supreme Court “has been asked many times to expand the ‘small class’ of collaterally appealable orders, [it has] instead kept it narrow and selective in its membership.” Will v. Hallock, 546 U.S. 345, 350, 126 S.Ct. 952, 163 L.Ed.2d 836 (2006). Indeed, this court has recognized the Supreme Court’s “increasingly emphatic instructions that the class of cases capable of satisfying this ‘stringent’ test should be understood as ‘small,’ ‘modest,’ and ‘narrow.’ ” United States v. Wampler, 624 F.3d 1330, 1334 (10th Cir. 2010) (quoting Dig. Equip. Corp., 511 U.S. at 868, 878, 114 S.Ct. 1992; Will, 546 U.S. at 350, 126 S.Ct. 952).

Armstrong Steel argues that Section 230 of the CDA bars not just liability, but also suit. Aplt. Br. at 55-58. A district court order denying immunity from suit is effectively Unreviewable because immunity from suit “is effectively lost if a case is erroneously permitted to go to trial.” Mitchell v. Forsyth, 472 U.S. 511, 526, 105 S.Ct. 2806, 86 L.Ed.2d 411 (1985). Thus, the Supreme Court has “repeatedly ... stressed the importance of resolving immunity questions at the earliest possible stage in litigation.” Hunter v. Bryant, 502 U.S. 224, 227, 112 S.Ct. 534, 116 L.Ed.2d 589 (1991). If, however, Section 230 of the CDA only protects against liability, then we lack jurisdiction because a district court order denying liability is certainly reviewable on appeal. See Lauro Lines S.R.L. v. Chasser, 490 U.S. 495, 500, 109 S.Ct. 1976, 104 L.Ed.2d 548 (1989). For the following reasons, we conclude that Section 230 of the CDA provides immunity only from liability, not suit.

Congress passed the CDA to “protect children from sexually explicit internet content.” FTC v. LeadClick Media, LLC, No. 15-1009-cv, 838 F.3d 158, 173, 2016 WL 5338081, at *11 (2d Cir. Sept. 23, 2016).

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840 F.3d 1178, 44 Media L. Rep. (BNA) 2569, 2016 U.S. App. LEXIS 19629, 2016 WL 6441028, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-steel-domestic-sales-llc-v-chumley-ca10-2016.