Medytox Solutions, Inc., Seamus Lagan and William G. Forhan v. Investorshub.com, Inc.

152 So. 3d 727, 43 Media L. Rep. (BNA) 1133, 2014 Fla. App. LEXIS 19689, 2014 WL 6775236
CourtDistrict Court of Appeal of Florida
DecidedDecember 3, 2014
Docket4D13-3469
StatusPublished
Cited by5 cases

This text of 152 So. 3d 727 (Medytox Solutions, Inc., Seamus Lagan and William G. Forhan v. Investorshub.com, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medytox Solutions, Inc., Seamus Lagan and William G. Forhan v. Investorshub.com, Inc., 152 So. 3d 727, 43 Media L. Rep. (BNA) 1133, 2014 Fla. App. LEXIS 19689, 2014 WL 6775236 (Fla. Ct. App. 2014).

Opinion

TAYLOR, J.

This case concerns efforts by the plaintiffs to force an interactive computer service provider to remove statements from its website made by a third party that *729 allegedly defamed the plaintiffs. We affirm the trial court’s dismissal of the complaint for injunctive relief, because the website operator enjoys immunity from such relief under section 230 of the Communications Decency Act, 47 U.S.C. § 230.

The defendant, InvestorsHub.com, operates a website that serves as a forum for investors to discuss financial markets and information about public companies. According to the operative complaint, the website hosts nearly 85 million individual postings on almost 22,000 separate message boards, with new postings added at a rate of 40,000 new messages on each trading day.

In 2012, Christopher Hawley, using the screen name “Seamus outer,” posted several allegedly defamatory statements about the plaintiffs, Medytox Solutions, Inc., Seamus Lagan, and William Forhan, on the InvestorsHub website. In a separate action, Medytox Solutions and Mr. Lagan filed a third-party complaint against Hawley for defamation and tortious interference. The plaintiffs’ counsel contacted the defendant and its counsel, seeking to have the postings removed from the website. The defendant removed two of Haw-ley’s posts, but declined to remove the remaining two posts.

In February 2013, the plaintiffs brought an action for declaratory relief against the defendant for its failure to remove the allegedly defamatory postings from its website The plaintiffs later filed an amended complaint, adding a separate count for injunctive relief.

The defendant moved to dismiss the amended complaint on the grounds that it was immune as an internet service provider under the Communications Decency Act, and that equity would not enjoin a libel under Florida law. After a hearing, the trial court entered an order granting the defendant’s motion to dismiss with prejudice, relying on case law from the Florida Supreme Court and the Third District. The trial court later entered a final order of dismissal.

On appeal, the plaintiffs argue that the Communications Decency Act does not preempt an equitable action under Florida law for the removal of libelous postings. They contend that the preemption recognized by the Florida Supreme Court is limited to tort-based claims seeking monetary liability, and that nothing in the Communications Decency Act suggests that Congress intended to preempt equitable claims for injunctive relief.

The defendant responds that the immunity afforded by section 230 of the Communications Decency Act broadly extends to “any action” against a provider of an interactive computer service if the action is premised upon the content of another. The defendant maintains that section 230 immunity applies with equal force in injunction matters as it does in actions seeking money damages.

“A trial court’s ruling on a motion to dismiss based on a question of law is subject to de novo review.” Execu-Tech Bus. Sys., Inc. v. New Oji Paper Co., 752 So.2d 582, 584 (Fla.2000).

Section 230 of the Communications Decency Act states that “[n]o provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.” 47 U.S.C. § 230(c)(1). Section 230 further states that “[n]o cause of action may be brought and no liability may be imposed under any State or local law that is inconsistent with this section.” 47 U.S.C. § 230(e)(3). Certain causes of action, however, are not barred by section 230, including actions based on federal criminal statutes, intellectual property law, and “any State law that *730 is consistent with this section.” 47 U.S.C. § 230(e)(l)-(3).

The plain language of section 230 “creates a federal immunity to any cause of action that would make service providers liable for information originating with a third-party user of the service.” Zeran v. Am. Online, Inc., 129 F.3d 327, 330 (4th Cir.1997). Section 230 “precludes courts from entertaining claims that would place a computer service provider in a publisher’s role.” Id. Consequently, “lawsuits seeking to hold a service provider liable for its exercise of a publisher’s traditional editorial functions — such as deciding whether to publish, withdraw, postpone or alter content — are barred.” Id.

In enacting section 230, “Congress wanted to encourage the unfettered and unregulated development of free speech on the Internet, and to promote the development of e-commerce.” Batzel v. Smith, 333 F.3d 1018, 1027 (9th Cir.2003). Section 230 was therefore designed, in part, “to maintain the robust nature of Internet communication and, accordingly, to keep government interference in the medium to a minimum.” Zeran, 129 F.3d at 330.

Another specific purpose of section 230 was to overrule the decision in Stratton Oakmont, Inc. v. Prodigy Services Co., 23 Media L. Rep. 1794, 1995 WL 323710 (N.Y.Sup.Ct.1995), which held that an Internet Service Provider could be liable for defamatory statements if it exercised sufficient editorial control over its bulletin boards so as to render it a publisher. See S. Rep. No. 104-230, at 194 (1996) (Conf. Rep.). As the Fourth Circuit explained:

Congress enacted § 230 to remove the disincentives to selfregulation [sic] created by the Stratton Oakmont decision. Under that court’s holding, computer service providers who regulated the dissemination of offensive material on their services risked subjecting themselves to liability, because such regulation cast the service provider in the role of a publisher.

Zeran, 129 F.3d at 331.

In Doe v. America Online, Inc., 783 So.2d 1010, 1013-17 (Fla.2001), the Florida Supreme Court held that section 230 preempts Florida law as to causes of action based in negligence against an Internet Service Provider as a distributor of information. Our supreme court found the Zeran court’s reasoning persuasive, adopting the Fourth Circuit’s analysis of the history of the Communications Decency Act as a basis for its own reading of section 230. Id. at 1013-15. Accordingly, the court explained: “We specifically concur that section 230 expressly bars ‘any actions’ and we are compelled to give the language of this preemptive law its plain meaning.” Id. at 1018.

Although Doe v. America Online does not specifically address the availability of injunctive relief, the Third District recently confronted this issue in Giordano v. Romeo,

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152 So. 3d 727, 43 Media L. Rep. (BNA) 1133, 2014 Fla. App. LEXIS 19689, 2014 WL 6775236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medytox-solutions-inc-seamus-lagan-and-william-g-forhan-v-fladistctapp-2014.