The Consortium For Independent Journalism, Inc. v. Global News, A Division Of Corus Entertainment, Inc.

CourtDistrict Court, E.D. Virginia
DecidedApril 15, 2021
Docket1:20-cv-01205
StatusUnknown

This text of The Consortium For Independent Journalism, Inc. v. Global News, A Division Of Corus Entertainment, Inc. (The Consortium For Independent Journalism, Inc. v. Global News, A Division Of Corus Entertainment, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Consortium For Independent Journalism, Inc. v. Global News, A Division Of Corus Entertainment, Inc., (E.D. Va. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division

THE CONSORTIUM FOR ) INDEPENDENT JOURNALISM, INC., ) t/a Consortiumnews.com, ) ) Plaintiff, ) ) v. ) Civil Action No. 1:20-cv-01205 (AJT/TCB) ) GLOBAL NEWS, ) a Division of Corus Entertainment, Inc., ) ) Defendant. ) ____________________________________)

MEMORANDUM OPINION AND ORDER

Plaintiff The Consortium for Independent Journalism t/a Consortium News (“Plaintiff”) has sued Defendant Global News, a Division of Corus Entertainment, Inc. (“Defendant” or “Global”), for defamation and business conspiracy for falsely accusing Plaintiff of being part of a cyber-influence campaign directed by Russia. In response to the Complaint, Defendant has filed a Motion to Dismiss for Lack of Personal Jurisdiction. [Doc. No. 9] (the “Motion”). Upon consideration of the Motion, the memoranda in support thereof and in opposition thereto, the argument of counsel at the hearing held on March 3, 2021, and for the reasons that follow, the Motion is GRANTED and the action is DISMISSED without prejudice for lack of personal jurisdiction. I. BACKGROUND The Complaint [Doc. No. 1] (“Compl.”) alleges the following: Plaintiff, a Virginia corporation headquartered in Arlington, Virginia, founded in 1995, publishes “Consortium News,” an internet-based investigative news magazine. Id. ¶¶ 1, 6. Plaintiff’s journalists are based in Virginia and elsewhere in the United States and around the world. Id. ¶ 1. Defendant Global is a division of Corus Entertainment, Inc., “a media and content company that creates and delivers brands and content for audiences around the world.” 1 Id. at

¶ 7. Global (a) is “part of a national television network;” (b) “broadcasts news reports and operates an online, digital platform, www.global news.ca;” (c) “employs 200 journalists working in 13 newsrooms to provide content about issues in Canada, the United States and abroad;”(d) “maintains a Washington, D.C. bureau and agents who live and work in Washington, including [its bureau chief];” (e) “routinely reports and publishes articles about matters unique to Virginia [See, e.g., https://globalnews.ca/tag/virginia/];” (f) “advertises and represents that ‘Global news [is] your source for the latest news and Virginia;’” and (g) the Global journalist who has “published false and defamatory statements about Plaintiff . . . wrote the article about Plaintiff at issue in this action and appeared on television to publish additional defamatory Statements.” Id. In February 2017, Consortium News published an article in Virginia titled, “A Nazi

Skeleton in the Family Closet.” Id. ¶ 12. The article reported that Chrystia Freeland (“Freeland”), then Canada’s Foreign Affairs Minister, in an attempt to whitewash her family’s ties to the Nazis and thereby further her political career in Canada, lied about her grandfather’s

1 Defendant has submitted in support of its Motion a Declaration that states that Global is not a division of Corus Entertainment, Inc., but rather a division of Corus Television Limited Partnership, a Canadian limited partnership, registered in Winnipeg, Manitoba and headquartered in Toronto, Canada, which, in turn, is “an indirect, wholly- owned subsidiary of Corus Entertainment Inc.,” a Canadian corporation registered in Calgary, Alberta, and also headquartered in Toronto, Canada, and that “[e]ach of the intermediate corporate entities between Corus Television Limited Partnership and Corus Entertainment Inc. is also organized and registered under the laws of Canada with its headquarters in Canada.” [Doc. No. 11] at ¶ 2. Any inconsistency between the Complaint’s allegations and the Declaration concerning the ownership of Global does not appear to be a material factual dispute with respect to personal jurisdiction vel non. In any event, the Court accepts as true for the purposes of the Motion Plaintiff’s allegation in the Complaint concerning Global’s ownership. 2 past as an editor of a Nazi newspaper in occupied Poland during World War II and his support for the German aggressors who collaborated with Ukrainian nationalists in killing Russians, Jews, Poles, and other minorities. Id. In the following weeks, several other news outlets published similar stories. Id. ¶¶ 13, 14.

In 2019, ahead of the October 2019 Canadian elections, the Canadian Communications Security Establishment (“CSE”) (akin to the United States’ National Security Agency) prepared a Secret “Canadian Eyes Only” intelligence report that was given exclusively to Global in furtherance, according to Plaintiff, of a scheme to defame Plaintiff and deflect attention from Freeland’s misconduct and her grandfather’s past. Id. ¶ 16. The CSE report described efforts by Canada’s adversaries to manipulate Canada’s politics, including targeting Freeland with “cyber influence activity to cause [them] reputational damage,” “in order to discredit the Government of Canada’s ongoing diplomatic and military support of Ukraine, to delegitimize Canada’s decision to enact the Justice for Victims of Corrupt Foreign Offices Act, and the expulsion of several Russian diplomats,” and as an example of these efforts the report pointed to the February 2017

Consortium News article. [Doc. No. 10] (“MTD Mem.”) at 4. Plaintiff alleges Global agreed to republish CSE’s false statements to undermine Consortium News’s credibility and integrity as a news publisher to support CSE’s interest in squashing any further criticism of Freeland. Compl. ¶ 17. In October 2019, Freeland won re-election; a month later she was named Deputy Prime Minister and a month after that she was named Minister of Finance. Id. In December 2019, Global published an article (“the Article”) and two television broadcasts (“the Broadcasts”) that Plaintiff claims falsely accused Consortium News of being part of a cyber-influence campaign directed by Russia. Id. ¶ 1. The Article was posted on the

3 Global News website on December 10, 2019, and concerned the “Canadian Eyes Only” report by the CSE, the Canadian intelligence agency, about foreign countries’ attempts to influence Canadian politics and interfere with Canadian elections. Id. ¶¶ 1, 2, 16; see also Sam Cooper, Canadian eyes only’ intelligence reports say Canadian leaders attacked in cyber campaigns,

GLOBAL NEWS (Dec. 10, 2019), https://globalnews.ca/news/6258755/intelligence- reportscanadian-leaders-attacked-cyber-campaigns/. According to Plaintiff, these and similar statements were published on outlets that included Twitter, Global News Television, online at globalnews.ca, and YouTube. Compl. ¶ 2. In addition, the two Broadcasts, which pertained to what was reported in the Article, were aired and subsequently posted to the Global News website. Based on these allegations, Plaintiff alleges that Global engaged in defamation (Count I) and business conspiracy (Count II).2 As summarized by the Plaintiff, Global’s accusations insinuated that Plaintiff was part of an “online smear campaign” undertaken by “hostile foreign states,” including Russia that targeted Freeland in 2017 when she was Canada’s Foreign Affairs

Minister, Compl. ¶ 2; and Global published these and similar statements in December 2019 at the time of an international campaign by Freeland, then-Deputy Prime Minister of Canada, and others in the Canadian government to link their critics to Russia as a way of discrediting the critics and protecting themselves and their political agendas. Id. Based on these allegations, Plaintiff also claims that Defendant is subject to personal jurisdiction over these claims pursuant to Virginia’s long-arm statute, Va. Code, § 8.01-

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