Johnson v. Arden

614 F.3d 785, 2010 U.S. App. LEXIS 16116, 2010 WL 3023660
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 4, 2010
Docket09-2601
StatusPublished
Cited by244 cases

This text of 614 F.3d 785 (Johnson v. Arden) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Arden, 614 F.3d 785, 2010 U.S. App. LEXIS 16116, 2010 WL 3023660 (8th Cir. 2010).

Opinion

SMITH, Circuit Judge.

Susan and Robert Johnson filed a state civil suit making multiple claims against several defendants as a result of allegedly defamatory statements posted on an internet discussion board. The defendants removed the case to federal court. The original complaint included six defendants; however, the Johnsons located and served only InMotion Hosting, Inc. (“InMotion”), Melanie Lowry, and Kathleen Heineman.

The district court 2 dismissed the claims against InMotion with prejudice, finding that the Communications Decency Act (CDA) of 1996, 47 U.S.C. § 230(c)(1) and (e)(3) protects InMotion. The court dismissed the claims against Lowry and Heineman without prejudice, finding that Lowry and Heineman had insufficient contacts with the State of Missouri to be subjected to personal jurisdiction in Missouri. Finally, the district court set aside a state court default judgment against Lowry under Federal Rule of Civil Procedure 60(b). On appeal, the Johnsons argue that the district court erred in dismissing the claims against InMotion, Heineman, and Lowry and erred in setting aside the default judgment against Lowry. For the reasons stated below, we disagree and affirm.

I. Background

The Johnsons reside in Unionville, Missouri, where they own and operate the exotic cat breeding business known as the Cozy Kitten Cattery. The Cozy Kitten Cattery is a Missouri limited liability company formed in 2007. Its principal office and place of business is located in Missouri, and the Johnsons are its sole members. Around December 2004, the Johnsons obtained a registered federal trademark and service mark for “Cozy Kitten Cattery.” The Johnsons operate their cat breeding business under that trademark and licensed the use of that trademark and service mark to Cozy Kitten Cattery, LLC. The Johnsons advertise their business on the internet and *788 have a website with the web address www.CozyKittens.com.

Someone posted several allegedly defamatory statements about the Cozy Kitten Cattery on the interactive website www.ComplaintsBoard.com. In response, the Johnsons and Cozy Kittens Cattery filed suit against Elizabeth Arden d/b/a www.ComplaintsBoard.com, Michelle Reitenger, www.ComplaintsBoard.com, InMotion, Lowry, and Heineman in Putnam County, Missouri. Counts I, II and III allege that all six defendants conspired to use www.ComplaintsBoard.com to post false statements about the Johnsons, including statements that the Johnsons kill cats, the Johnsons “rip off’ cat breeders, the Johnsons steal kittens, the Johnsons’ cats and kittens are infected, and the Johnsons are con artists. The Johnsons assert that they requested all defendants to remove the statements but that the statements were not removed for more than 48 hours. The Johnsons assert that they suffered lost sales of kittens and cats, lost revenue and lost goodwill and will continue to suffer damages because of the statements posted on the interactive website.

The Johnsons assert that InMotion, Lowry, and Heineman were all served with the Summons and Petition/Complaint, although all three dispute service. The Johnsons were unable to locate or serve defendants Elizabeth Arden d/b/a www. ComplaintsBoard.com, Michelle Reitenger or www.ComplaintsBoard.com.

Heineman, Lowry, and InMotion moved in district court to dismiss the action based on lack of personal jurisdiction and insufficient service of process. Heineman and InMotion also asserted improper venue as an additional ground for dismissal.

A. Kathleen Heineman

Heineman is a resident of the State of Colorado and has been since 1981. Heine-man is a cat breeder and also works as an accountant. In both capacities, she works out of her home in Colorado. She maintains no offices in Missouri, owns no property in Missouri and does not pay taxes in Missouri. She also alleges that she does not own any domain name registrations and does not own or operate any website. However, the website, www.Boutique Kittens.com, and the related cat breeding and selling business are licensed by the State of Colorado to Heineman, and thus for the purpose of this appeal, we will assume that Heineman owns the website in question.

The Johnsons assert that Heineman sells cats and kittens throughout the United States, including the State of Missouri, while advertising on the internet using the web address www.BoutiqueKittens.com. The Johnsons allege that Heineman advertises and sells cats and kittens under the name “Cozy Kittens and Cuddly Cats.”

Heineman had a limited business relationship with the Johnsons, which ended in March 2006. The Johnsons never employed Heineman or paid her a salary. She provided administrative assistance to the Johnsons from her home office in Colorado, including proofreading services and other miscellaneous work on an intermittent basis, such as helping them to acquire cats.

Between 2002 and 2006, the Johnsons contend that Heineman purchased about 16 cats for them from breeders throughout the United States. Heineman did not profit from the purchase of these cats. Some of these cats were shipped to Heine-man in Colorado and then eventually shipped to Susan Johnson in Missouri; other eats were picked up from the sellers directly by the Johnsons or their relatives. In 2002, Heineman twice delivered cats to the Johnsons in Missouri. During the course of their relationship, the Johnsons *789 contend that they shipped seven cats to Heineman and charged her only for their out-of-pocket expenses.

In the course of their relationship, Heineman also purchased advertising space from the Johnsons on www.Cozy Kittens.com for a fee of $100 per kitten advertised. The Johnsons’ website then listed Heineman’s email address as the contact email for persons interested in those cats. These advertisements were not targeted to Missouri residents, and Heineman did not place any cats or kittens or do any other business in Missouri. Heineman advertised approximately 50 cats in this manner. Heineman asserts that she has not posted or authorized anyone else to post anything about the John-sons on www.ComplaintsBoard.com or on any other website.

B. InMotion Hosting, Inc.

InMotion is a California corporation and maintains its principal place of business there. InMotion, as an internet service provider (ISP), only hosted the www. ComplaintsBoard.com website. InMotion does not operate www.ComplaintsBoard. com or create any of its content. InMotion does not monitor or control the content of its customer’s websites, including www.ComplaintsBoard.com.

The website www.ComplaintsBoard.com is published worldwide on the internet. The website is interactive, permitting and encouraging individuals to post complaints about businesses and business owners. Individuals seeking to post complaints on the website are required to register with the website and provide identifying information, such as their name and email address.

C. Melanie Lowry

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Bluebook (online)
614 F.3d 785, 2010 U.S. App. LEXIS 16116, 2010 WL 3023660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-arden-ca8-2010.