Salfinger v. Fairfax Media Ltd.

2016 WI App 17, 876 N.W.2d 160, 367 Wis. 2d 311, 44 Media L. Rep. (BNA) 1231, 2016 Wisc. App. LEXIS 26
CourtCourt of Appeals of Wisconsin
DecidedJanuary 20, 2016
DocketNo. 2015AP150
StatusPublished
Cited by5 cases

This text of 2016 WI App 17 (Salfinger v. Fairfax Media Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salfinger v. Fairfax Media Ltd., 2016 WI App 17, 876 N.W.2d 160, 367 Wis. 2d 311, 44 Media L. Rep. (BNA) 1231, 2016 Wisc. App. LEXIS 26 (Wis. Ct. App. 2016).

Opinion

CURLEY, P.J.

¶ 1. Roderick N. Salfinger and Threshold Aeronautics, LLC (we refer to Roderick Salfinger individually as "Mr. Salfinger" and to the co-appellants collectively as "Salfinger") appeal from a final order dismissing Fairfax Media Limited, d/b/a the Sydney Morning Herald, Fairfax Media Publications Party Limited, and Fairfax Digital Australia and New Zealand Party Limited (collectively, "the Fairfax parties") for lack of jurisdiction.1 On appeal, Salfinger asserts that the trial court erred in finding that, although jurisdiction was authorized under Wis. Stat. § 801.05(4)(b) (2013-14),2 exercising that jurisdiction would offend due process. We agree with the trial court and affirm.

BACKGROUND

¶ 2. This lawsuit, which challenges Wisconsin jurisdiction over multiple Australian and New Zealand defendants, has its genesis in an article entitled "Lawyers, guns, money: the sting in Yellow Tail" published in the Sydney Morning Herald on October 30, 2010. That article, which circulated in print within Australia, was also made available worldwide on the internet [319]*319via the Sydney Morning Herald's website.3 While it is not entirely clear how many individuals in Wisconsin have actually accessed or read that article since first appearing online, 826,746 users located in Wisconsin accessed the Sydney Morning Herald website between May 23, 2011, and June 16, 2014.4

¶ 3. The Sydney Morning Herald article at issue in Salfinger's lawsuit primarily discussed the Australian family behind the popular Yellow Tail wine label; however, it also touched on the family's relationship with appellant Roderick Salfinger. Numerous individuals offered descriptions and opinions about Mr. Salfinger in the article that were less than flattering, and Salfinger's lawsuit hones in on one specific statement that Salfinger alleges is untrue and defamatory and has caused personal and professional harm: that Mr. Salfinger "faces prosecution in the [United States] after allegedly producing a revolver at his daughter's wedding." Mr. Salfinger denies that he engaged in such conduct and requested that the Sydney Morning Herald retract the statement, which it has, to date, refused to do.

¶ 4. Mr. Salfinger, an Australian citizen, asserts that he has resided in Shorewood, Wisconsin, since August 2010.5 He claims that the alleged harm [320]*320suffered — both business and personal — stems from the Sydney Morning Herald publication and that the alleged injury occurred in Wisconsin because of his residence here. Among the alleged harms Mr. Salfinger claims to have suffered include: (1) loss of investments in co-appellant Threshold Aeronautics, LLC, by potential investors; (2) loss of business opportunities in the mining industry; (3) inability to establish or maintain meaningful interpersonal relationships; and (4) depression.

¶ 5. At least some of Mr. Salfinger's alleged business harm relates to his membership interest in co-appellant Threshold Aeronautics, LLC ("Threshold"), a domestic limited liability company registered in Wisconsin as of June 14, 2012 — nearly two years after the Sydney Morning Herald article at issue was published. Generally speaking, the alleged harm to Threshold arises from Mr. Salfinger's status as one of its two members, as Salfinger alleges that Threshold has lost out on investments due to the unwillingness of investors and businesses to work with Threshold and Mr. Salfin-ger after reading about Mr. Salfinger in the Sydney Morning Herald article. The Sydney Morning Herald article makes no reference to Threshold.

¶ 6. Respondent Fairfax Media Limited is a media holding company incorporated in New South Wales, Australia, with its principal offices located in Pyrmont, Australia.6 Respondent Fairfax Media Publications [321]*321Party Limited is a media publisher and is also incorporated in New South Wales, Australia, with its principal offices located in Pyrmont, Australia. In its answer, Fairfax Media Publications Party Limited affirmatively alleges that it publishes the Sydney Morning Herald. Respondent Fairfax Digital Australia and New Zealand Party Limited, too, is a media publisher incorporated in New South Wales, Australia, and its principal offices are also located in Pyrmont, Australia.

¶ 7. Salfinger filed the summons and complaint on October 30, 2013, and the Fairfax parties were served on January 28, 2014.7 The Fairfax parties filed an answer and affirmative defenses on March 18, 2014, raising lack of personal jurisdiction as an affirmative defense. The trial court stayed all discovery except discovery dealing with jurisdiction, and on July 29, 2014, the Fairfax parties filed a motion to dismiss for lack of personal jurisdiction.8

¶ 8. The parties engaged in significant briefing on the Fairfax parties' motion to dismiss. The trial court had initially planned to issue its decision on the motion to dismiss at a hearing on October 22, 2014; however, on October 21, 2014, Salfinger moved to amend the complaint and to stay the pending motion to dismiss, arguing that he would concede claims against certain defendants and would also clarify the factual basis for the remaining jurisdiction claims if allowed to [322]*322file the amended complaint. Salfinger further suggested that allowing him to submit an amended complaint would aid the trial court in deciding whether there was jurisdiction over the Fairfax parties.

¶ 9. The trial court, despite recognizing that Salfinger's motion " arrive [d] at the last minute after a motion to dismiss [was] fully briefed," nevertheless allowed Salfinger to file a proposed amended complaint. However, it denied Salfinger's request to stay the motion to dismiss and informed the Fairfax parties that they were not required to file responsive pleadings until after the trial court issued its ruling on the motion to dismiss. The trial court allowed Salfinger to file a supplemental response to the motion to dismiss " asserting any ground in opposition to the motion that ha[d] not previously been asserted," and the Fairfax parties were also given an opportunity to respond to Salfinger's supplemental brief.

¶ 10. The trial court thereafter issued its written decision and order on December 8, 2014, granting the Fairfax parties' motion to dismiss for lack of personal jurisdiction. In its written decision, the trial court explained that although it found that Wis. Stat. § 801.05(4)(b) applies and allows for jurisdiction, it nevertheless concluded that the Fairfax parties' "contacts with Wisconsin are simply too insubstantial to satisfy the dictates of the due process clause."

¶ 11. On appeal, we do not address the underlying nature of Salfinger's lawsuit. Rather, this matter comes to us for resolution of a jurisdictional issue that presents the unique question of whether a Wisconsin court may exercise jurisdiction over foreign defendants whose only real connection to the State of Wisconsin is in having published an article online that is ostensibly available to anyone in the world and that also provides [323]

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Cite This Page — Counsel Stack

Bluebook (online)
2016 WI App 17, 876 N.W.2d 160, 367 Wis. 2d 311, 44 Media L. Rep. (BNA) 1231, 2016 Wisc. App. LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salfinger-v-fairfax-media-ltd-wisctapp-2016.