Wednesday, August 20, 2014

“Blogging has become quite a big deal as more people engage in it as a source of information,”

"Obsidian Finance v. Crystal Cox

In January, the Ninth Circuit found that a trustee subjected to criticism by a blogger for its role in a real estate bankruptcy needed to show the blogger had acted negligently, ruling in the case that bloggers and others who speak on issues of public concern are entitled to the same free-speech protections as traditional members of the press.

The three-judge panel reversed part of a lower court decision that held Obsidian Finance Group LLC did not need to show fault to establish liability against blogger Crystal Cox. Cox had accused Obsidian of tax fraud in its role as trustee in a real estate bankruptcy case, and was hit with a $2.5 million defamation verdict in 2011 over her posts. But the trial court erred in not granting Cox certain First Amendment protections, the panel ruled, citing U.S. Supreme Court cases that held the traditional media did not have greater constitutional privileges than other speakers.

“Blogging has become quite a big deal as more people engage in it as a source of information,” Heinke said. “The ruling allows not just bloggers but anybody posting comments on the Internet to get First Amendment protection even if they are not part of the institutional press.”

Obsidian is represented by Steven Wilker, Robyn Aoyagi and David Aman of Tonkon Torp LLP.

Cox is represented by Eugene Volokh of Mayer Brown LLP.

The cases are Obsidian Finance Group LLC et al. v. Crystal Cox, case number 12-35238 and 12-35319, in the U.S. Court of Appeals for the Ninth Circuit."

Source
http://www.law360.com/articles/557815/the-biggest-california-cases-of-2014-midyear-report