US Dominion, Inc. v. Byrne

CourtDistrict Court, District of Columbia
DecidedApril 20, 2022
DocketCivil Action No. 2021-2131
StatusPublished

This text of US Dominion, Inc. v. Byrne (US Dominion, Inc. v. Byrne) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
US Dominion, Inc. v. Byrne, (D.D.C. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

US DOMINION, INC., et al.,

Plaintiffs,

v. Civil Action No. 1:21-cv-02131 (CJN)

PATRICK BYRNE,

Defendant.

MEMORANDUM OPINION

US Dominion, Inc. and other related corporate entities allege that Patrick Byrne defamed

them in connection with the 2020 election. See generally Compl. (“Compl.”), ECF No. 1. Byrne

has moved to dismiss the Complaint, arguing among other things that Dominion has failed to plead

that he made provably false statements about the Plaintiffs; that Dominion has failed to plead that

he made his statements with actual malice; and that some of his statements are protected by the

fair report privilege and the Communications Decency Act. See generally Def.’s Mot. to Dismiss

(“Def.’s Mot.”), ECF No. 25. For the following reasons, the Court denies the Motion.

I. The Parties

US Dominion, Inc., Dominion Voting Systems, Inc., and Dominion Voting Systems

Corporation are related corporate entities involved in the sale of electronic voting machines and

software in the United States. See Compl. ¶¶ 13–16; see also id. ¶ 29 (“Today, Dominion’s

business is organized as US Dominion, Inc., and its two wholly owned subsidiaries, Dominion

Voting Systems, Inc. and Dominion Voting Systems Corporation.”). John Poulos founded

Dominion “out of his basement in Toronto,” Canada. See id. ¶ 25. Dominion has grown over the

years, and it now contracts with state and local governments throughout the United States to supply

1 voting systems and services in elections. Id. ¶¶ 25–30. Local election officials use Dominion’s

voting machines to tabulate votes and count paper ballots. Id. ¶ 31.

Patrick Byrne is a resident of Utah. In 1999, Byrne became the Chief Executive Officer of

Overstock. Id.1 Starting in 2014, Byrne directed Overstock’s investments in several blockchain-

based companies, including some that focused on using blockchain technology in elections.

Id. ¶¶ 36–37. Byrne resigned from the role of CEO in 2019 after Overstock’s insurance carrier

issued an ultimatum: “it would not renew its policy as long as Byrne was in charge.” Id. ¶ 34.

Since then, Byrne has focused his attention on election integrity. Id. ¶ 41. Leading up to, during,

and after the 2020 election, Byrne made numerous statements and media appearances in which he

discussed Dominion’s voting systems and election fraud. See generally id.

II. Factual & Procedural Background2

This case centers around the American election held on November 3, 2020, as well as the

voting systems in place to count votes. See generally Compl. States employed a myriad of

procedures to handle early, same-day, and mail-in votes throughout the election cycle. The

different procedures resulted in no clear winner emerging from the presidential election on

Tuesday, November 3, 2020. Days later, several news outlets declared Joseph Biden victorious.

Those declarations did not end matters. Private citizens and public officials challenged, and local

officials audited, election results throughout the country.

1 Byrne received his B.A. from Dartmouth College, his master’s degree as a Marshall Scholar from Cambridge University, and his PhD from Stanford University. Id. ¶¶ 16, 33. 2 The Court has previously resolved similar motions involving similar (though not identical) factual backgrounds. See US Dominion, Inc. v. Powell, 554 F. Supp. 3d 42 (D.D.C. 2021), appeal dismissed sub nom. US Dominion, Inc. v. My Pillow, Inc., No. 21-7103, 2022 WL 774080 (D.C. Cir. Jan. 20, 2022).

2 In August 2021, Dominion filed this lawsuit against Byrne, claiming that he made

numerous statements actionable as defamation per se. See id. ¶ 161. The heart of Dominion’s

Complaint involves eighteen allegedly defamatory statements. See Compl. ¶ 153(a)–(r). The

statements vary in length, scope, and content. See id. Byrne made some of the statements during

interviews, while others appeared in print. See id. All involve allegedly false and defamatory

statements about Dominion and the company’s role in the 2020 election and elections more

broadly. See id.

For example, Dominion alleges that on November 17, 2020, Byrne stated while on a

television show that the “election was hacked;” that he had “the data, the electronics, everything”

to prove it; and that “Dominion ran” the election. Id. ¶ 153(a). As another example (the second

in the Complaint), Dominion alleges that on November 18, 2020, Byrne claimed that the State of

Texas hired “Dominion Voting Systems” to study the “Dallas election in 2018,” which gave the

company “two years to deconstruct and reverse engineer how to hack an election.” Id. ¶ 153(b).

On November 24, 2020, Byrne claimed that the “election machinery, especially Dominion’s, is a

joke,” and that “the functionality built into these systems, especially Dominion’s, by now everyone

knows the story, that it was Hugo Chavez that wanted some election software built that he could

goon.” Id. ¶ 153(d). The sixth allegedly defamatory statement occurred on November 24, 2020,

when Byrne stated that Smartmatic’s software, which became Dominion’s software “after a series

of corporate mergers and acquisitions,” “was developed in Venezuela, by Hugo Chavez for him to

rig his elections.” Id. ¶ 153(f). And on February 5, 2021, Byrne published a blogpost claiming

that “Dominion” “paid for” a “shredding truck” to shred “3,000 pounds of ballots.” Id. ¶ 153(p).

Based on these and other allegedly false and defamatory statements, Dominion seeks

3 compensatory damages, lost profits, lost goodwill, security expenses, incurred expenses, punitive

damages, and pre- and post-judgment interest. See id. Prayer for Relief.

Byrne has moved to dismiss. See generally Def.’s Mot. From Byrne’s perspective, the

allegations concern statements that, among other things, either: “(1) reflect fair and accurate

reporting of official government and judicial proceedings; (2) contain Byrne’s protected

commentary or opinions; . . . (3) are not actionable under applicable law; . . . or (4) relate to minor

details or do not even concern Dominion but rather other people or entities.” Id. at 25. In

particular, Byrne argues that his statements are not actionable because some of them are not false,

some constitute protected opinion, he did not make them with actual malice, and his alleged

defamatory statements receive protection under the fair report privilege and the Communications

Decency Act. Id. at 26, 29, 36, 37, 45.

III. Legal Standard

Federal Rule of Civil Procedure 12(b)(6) requires dismissal of a complaint if it “fail[s] to

state a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). To survive a motion to

dismiss filed under Rule 12(b)(6), a plaintiff must plead “facts to state a claim of relief that is

plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A court treats the

“complaint’s factual allegations as true and afford[s] the plaintiff the benefit of all inferences that

can be derived from the facts alleged.” Atlas Brew Works, LLC v. Barr, 391 F. Supp. 3d 6, 11

(D.D.C.

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