Thursday, April 17, 2014

Obsidian Finance v. Crystal Cox; EQUALITY for ALL Bloggers to that of Institutional press, main stream media, traditional journalist.

"I was forwarded an article by Jeff Barnard of the AP opining on a recent Federal Court decision from the 9th Circuit regarding the 1st Amendment–the very first federal appellate ruling affording bloggers, such as myself,  legal protections similar to those of journalists generally.

While I’ve been threatened, to no result, multiple times, with lawsuits and other random attempts to dull my pen, this decision impacts beyond my desk to anyone giving wide circulation about an injustice, or an opinion on a “public issue.”

Some frame of reference.  A series of blogs I posted early last year received widespread attention, including commentary by the Miami Herald, R Street Institute and others. Not so much because of what I wrote, but…because someone I wrote about tried to stop me.

The series of articles narrowed to a public adjuster upset at my observation that his firm’s name  appeared intended to make people think he was with the government. His threat:

“…cease and desist and remove our name right away.  Failure to do so will result in a suit, naming you for damage to our reputation and name.”

Incredulous, I did no such thing.

Just the opposite. I published additional research demonstrating that his firm might be violating both state and federal law. 

In my published response (Freedom of Speech & the USA), I offered to print his full unedited reply should he care to offer one. He didn’t. I now find the links I provided to his website no longer work.

Retained counsel during the episode provided advice, much of which, if followed, would’ve restricted me from mentioning anyone by name and merely citing applicable statutes without stating that someone, anyone, may be in violation thereof–cogent but, impractical, especially when exposing that a specific name may be in violation of a specific statute. A broader application could handcuff exposing some entities committing far more egregious acts and deceptions.

In 2010, Crystal Cox, a self described “investigative blogger” published posts attacking   Obsidian Finance Group and its partners. She accused them of tax fraud, money laundering, and more. Her posts were published on websites with names like “obsidianfinancesucks.com.”
Obsidian and one of its partners sued for defamation.

The Ninth Circuit in Obsidian Finance v. Crystal Cox  used convoluted language to isolate a simple proposition–even though someone might not write for the “institutional press,” they’re entitled to protections the Constitution grants journalists.

The protections of the First Amendment do not turn on whether the defendant was a trained journalist, formally affiliated with traditional news entities, engaged in conflict-of-interest disclosure, went beyond just assembling others’ writings, or tried to get both sides of a story.

As the Supreme Court has accurately warned, a First Amendment distinction between the institutional press and other speakers is unworkable: “With the advent of the Internet and the decline of print and broadcast media . . . the line between the media and others who wish to comment on political and social issues becomes far more blurred.”

One AP article quotes Gregg Leslie of the Reporters Committee for the Freedom of the Press saying the ruling affirms what many have long argued: “Standards set by a 1974 U.S. Supreme Court ruling, Gertz v. Robert Welch, apply to everyone, not just journalists.”

“It’s not a special right to the news media,” he said. “So it’s a good thing for bloggers and citizen journalists and others.”

To me the real beauty of this decision, is not that millions of bloggers just like me were right  but, that we now have the media’s freedom to be wrong."

Source
http://johnsonstrategiesllc.com/1st-amendment-the-freedom-to-be-wrong

AN IMPORTANT VICTORY for FREE SPEECH. "In an important victory for free speech advocates, the Ninth Circuit has joined other courts in establishing that authors protected by the First Amendment need not be journalists to have such robust protections."

"In Obsidian Finance Group, LLC v. Cox, — F.3d —- (2014) (filed Jan. 17th, 2014), the Ninth Circuit overturned a lower court decision that limited certain First Amendment protections to institutional journalists. The Court explained that “protections of the First Amendment do not turn on whether the defendant was a trained journalist, formally affiliated with traditional news entities, engaged in conflict-of-interest disclosure, went beyond just assembling others’ writings, or tried to get both sides of a story.”

In aligning the Ninth Circuit with other circuits which have addressed the issue, the court reaffirms that negligence is the minimum legal standard for any case involving matters of public interest (and possibly all cases). To receive general damages without suffering specific harm and to receive punitive damages, the plaintiff must establish that the defendant published the statements with actual malice, meaning intentional knowledge of falsity or reckless disregard of the truth.
In New York Times Co. v. Sullivan, 376 U.S. 254 (1964), the Supreme Court established the modern First Amendment framework. Public officials must prove actual malice to prove liability. Curtis Publishing Co. v. Butts, 388 U.S. 130, (1967), then extended this standard to public figures. A decade later, in Gertz v. Robert Welch, Inc., 418 U.S. 323, 350 (1974), the Supreme Court held that the First Amendment required a negligence standard for private defamation actions. Significantly less than the actual malice standard, it nonetheless established that there could not be liability without fault.
In Obsidian Financial Group, the Ninth Circuit does not suggest the defendant is blameless:
Crystal Cox published blog posts on several websites that she created, accusing Padrick and Obsidian of fraud, corruption, money-laundering, and other illegal activities in connection with the Summit bankruptcy. Cox apparently has a history of making similar allegations and seeking payoffs in exchange for retraction. SeeDavid Carr, When Truth Survives Free Speech, N.Y. Times, Dec. 11, 2011, at B1. Padrick and Obsidian sent Cox a cease-and-desist letter, but she continued posting allegations.
The accusations and statements, however, were difficult to view as factual assertions. Where there were assertions of fact, the court explains, the plaintiff must establish the negligence of the statements.
The Ninth Circuit also sidestepped the issue whether the Gertz negligence standard applies to matters of purely private concern. It noted the unresolved question, when it stated that “the Supreme Court has ‘never considered whether the Gertz balance obtains when the defamatory statements involve no issue of public concern.’” (quoting Dun & Bradstreet, Inc. v. Greenmoss Builders, 472 U.S. 749, 757 (1985) (plurality opinion)).
Instead, the Ninth Circuit noted that the blog was made available to the public at large, just as every blog does. Moreover, the court noted that “public allegations that someone is involved in crime generally are speech on a matter of public concern.” So instead of answering whether the negligence standard applies to private matters, the court expanded the realm of public discourse to almost any public accusation.
This strategy has the effect of expanding the negligence standard to almost any claim. It may leave certain personal matters personal, though this is unclear. It could also leave certain formats, such as personal emails, texts, and friends’ lists as matters of purely private concern, but undoubtedly many of allegedly defamatory posts on such platforms will also be matters of public concern.
The distinction between matters of public concern and purely private matters has less and less meaning, and the distinction is likely to continue to erode in the context of defamation, though perhaps remain relevant in some issues involving privacy.
Nonetheless, the case is an important victory for free speech interests. Of course, this does not mean anything can be published with impunity. Negligence is not a terribly difficult test to meet and those plaintiffs who have truly been harmed will still have their day in court. It is difficult to be the subject of online attacks, but the rules of law should apply equally to all speakers, journalists, bloggers, and citizens alike. In the Ninth Circuit, it now does."

Source
http://lawandinformatics.com/2014/01/23/ninth-circuit-provides-important-protection-to-bloggers/

"“This case is the first one from a federal court of appeals that specifically protects the rights of bloggers,” said UCLA constitutional law professor Eugene Volokh, who represented Cox without charge on appeal.

Crystal Cox held her ground and held on to this Appeal, for the Greater Good of ALL whistleblowers, citizen journalists, and anti-corruption bloggers.

"SAN FRANCISCO -- A federal appeals court unanimously overturned a defamation award against a blogger Friday, ruling that 1st Amendment protections for traditional news media extend to individuals posting on the Web.

“The protections of the 1st Amendment do not turn on whether the defendant was a trained journalist, formally affiliated with traditional news entities,”  Judge Andrew D. Hurwitz wrote for a three-judge panel of the U.S. 9th Circuit Court of Appeals.

The panel said its holding was the first of its kind within the 9th Circuit but that other circuit courts already have extended protections for journalists to individual speakers.

.....

“This case is the first one from a federal court of appeals that specifically protects the rights of bloggers,” said UCLA constitutional law professor Eugene Volokh, who represented Cox without charge on appeal.

He said the ruling would also protect other individuals, including those who leaflet and who speak out on behalf of politicians or activist groups.

Source
http://www.latimes.com/local/lanow/la-me-ln-blogger-1st-amendment-20140117,0,5295817.story#ixzz2zBErr0z7

Wednesday, April 9, 2014

DEMAND Transparency and Accountability. YOU are the NEWS. No Governing Body has a RIGHT to tell you what is NEWS. You see it, video it, know it, research it.. it is NEWS and it is also YOUR First Amendment RIGHT. "a Legitimate Journalist" as a Label is BULLSHIT plain and simple and a Violation of YOUR Rights, PERIOD.

"Currently being debated by the Senate, but rarely discussed on mainstream television, is the Shield Law. While on the surface it may seem to be rather innocuous, some of the language in it and its implications are quite problematic for journalists.

A Shield Law is a law which “provides statutory protection for the ‘reporters’ privilege’— legal rules which protect journalists against the government requiring them to reveal confidential sources or other information.”[1] Generally, this is a positive occurrence as journalists are much more able to conduct their work and bring information to public light if they do not need to worry about having to reveal their sources. While Shield Laws have occurred in the past, they have only been on the state level. This currently proposed Shield Law is the first one to reach the federal level and the main goal is to protect journalists from having to reveal confidential sources in federal cases.[2]
However, there are certain instances in which journalists will have to reveal sources, such as “(1) The party seeking disclosure has exhausted all reasonable alternative sources of the information; (2) The requested information is essential to resolving the matter; (3) Disclosure of the requested information would not be contrary to the public interest; and (4) In criminal cases, if the requesting party is the federal government, the government must show that there are reasonable grounds to believe that a crime has occurred.”[3]
While overall it may seem like a good bill, there are a number of problems with this Shield Law, officially known as the Free Flow of Information Act of 2013. For starters, this law would “allow the government to seize reporters’ records without notifying them for 45 days – a period of time that could be renewed by a judge 45 additional days – if investigators convince a judge pre-notification ‘would pose a clear and substantial threat to the integrity of a criminal investigation.’”[4] This power of seizing records without notifying reporters was used most recently in regards to the Associated Press, when the federal government seized their phone records in May of last year, with the government only saying that “they were needed for investigation of an unspecified criminal matter.”[5] Oh yes! What transparency and accountability! Infringing upon the First Amendment rights of reporters and then only giving what is essentially a BS, purposefully vague explanation.
In addition to this, the government can force journalists to give up information in the name of national security.[6] This is quite worrying as the US government has time and time again been involved in operations of entrapment.[7,8] Due to this, they could potentially have a scenario where they create a case of entrapment, label it terrorism, and then force all journalists to give up information on any and all sources as well as seize their records under the guise of national security.
Yet in this current bill, not only can the government continue to engage in the above behavior, but they are also defining who is and who is not a journalist. Initially, the bill defined a journalist as “a person who has a ‘primary intent to investigate events and procure material’ in order to inform the public by regularly gathering information through interviews and observations” and added the stipulation that “The person also must intend to report on the news at the start of obtaining any protected information and must plan to publish that news.”[9] This seems to be rather fine as it would include mainstream and independent journalists. However, the situation became problematic when in September 2013, an amendment to the bill was proposed that- let’s just say- ‘more clearly’ defined who and who was not a journalist.
Kevin Gostolza of Firedoglake discussed this amendment last year and it would be appropriate to quote him now at some length:
A “covered journalist,” under the amendment, would be the following: an employee, independent contractor, or agent of an entity or service that disseminates news or information by means of newspaper; nonfiction book; wire service; news agency; news website, mobile application or other news or information service (whether distributed digitally or other wise); news program; magazine or other periodical, whether in print, electronic, or other format; or through television or radio broadcast, multichannel video programming distributor (as such term is defined in section 602(13) of the Communications Act of 1934 (47 U.S.C. 522(13)), or motion picture for public showing… That person must also have the “primary intent to investigate events and procure material in order to disseminate to the public news or information concerning local, national, or international events or other matters of public interest.” Or, that person should be engaged in the “regular gathering, preparation, collection, photographing, recording, writing, editing, reporting or publishing on such matters.” A person would also qualify as a “covered journalist” if they had experience in journalism and had “substantially contributed, as an author, editor, photographer, or producer, to a significant number of articles, stories, programs, or publications” in the past twenty years. As Feinstein said, it would “cover a legitimate journalist such as a Dan Rather who leaves his media entity and takes to publishing freelance stories on the web.”[10] (emphasis added)
Now, let’s begin to take those paragraphs apart and analyze them, bit by bit.
In the first paragraph, the law defines a journalist as “an employee, independent contractor, or agent of an entity or service that disseminates news or information” and then goes on to define the many mediums by which the news can be disseminated. Some of this language seems to be problematic. What exactly do they mean by “independent contractor?” Do they mean a freelancer? Do they mean someone like myself who researches and writes independently?"

Monday, April 7, 2014

Do Search Engines HAVE First Amendment Rights? Does Google Blogger Have First Amendment Rights? Is Google a Publisher?

"As the internet evolves the rights and responsibilities of its users become more clearly defined.  Courts have found themselves in the position of having to apply the common law precedent to the Internet.  A recent case out of the Ninth Circuit Court of Appeals is helping to legally define the protections of bloggers on the Internet. Obsidian Fin. Grp., LLC  v. Cox, No. 12-35238, D.C. No. 3:11-cv-00057-HZ (9th. Cir. Jan. 17, 2014).

The facts are not as clear as I would have liked, so I will try my best to distill them.  Summit Accommodators voluntarily petititoned for Chapter 11 bankruptcy in late 2008. The defendant Kevin Padrick, a senior principal and co-founder of Obsidian was appointed as a bankruptcy trustee. Crystal Cox is a self-appointed real estate whistleblower.  Cox created and wrote content for blogs: http://www.obsidianfinancesucks.com andhttp://www.summit1031sucks.com.  Some of the claims Cox made about Padrick on the blog, he is: corrupt, committed tax fraud, and called him derogatory names.  Obsidian Fin. Grp., LLC v. Cox, CV-11-57-HZ, 2011 WL 2745849 (D. Or. July 7, 2011).  Obsidian Financial Group and Padrick sent Cox a cease and desist letter, but she continued anyway.
One observation the district court made was Cox did not try to attempt any neutrality.  With domain names like http://www.obsidianfinancesucks.comvisitors should know that the blog will take a critical stance, “which expressly discloses its bias against bankruptcy courts, bankruptcy trustees.”  Obsidian Fin. Grp., LLC v. Cox, CV-11-57-HZ, 2011 WL 2745849 (D. Or. July 7, 2011) adhered to in part on reconsideration, 812 F. Supp. 2d 1220 (D. Or. 2011) aff’d, 12-35238, D.C. No 3:11-cv-00057-HZ (9th Cir. Jan. 17, 2014).  Many of the blog posts were not counted as libelous because they were based upon opinion rather than fact.  However, the district court found one blog post libelous in nature because it made “fairly specific allegations [that] a reasonable reader could understand . . .to imply a provable fact assertion.”Obsidian Fin. Grp., LLC v. Cox, 812 F. Supp. 2d 1220, 1233 (D. Or. 2011) aff’d,12-35238, 2014 WL 185376 (9th Cir. Jan. 17, 2014).
Cox then asserted that the First Amendment offered her protections from liability deriving from New York Times Co. v. Sullivan, 376 U.S. 254 (1964).  First, she claimed that the subject matter was of public concern.  Second, both Padrick and Obsidian were public figures.  The judge rejected both of these arguments saying that neither Obsidian nor Padrick sought to be a public or limited public figure.  Instead, Cox created the controversy around them.
Both parties appealed.
The Ninth Circuit Court of Appeals reasoned that since the New York Timescase, courts have not given any extra protection to journalists than they have anyone else. “[E]very other circuit to consider the issue has held that the First Amendment defamation rules in Sullivan and its progeny apply equally to the institutional press and individual speakers. . . We agree with our sister circuits.”Obsidian Fin. Grp., LLC v. Cox, 12-35238, D.C. No. 3:11-cv-00057-HZ (9th. Cir. Jan. 17, 2014).
The Court went even further by saying that Padrick’s actions were a matter of public concern.  Since Padrick was the trustee of failed ponzi scheme that involved tens of millions of dollars his actions were of public interest.  Furthermore, because Cox accused Padrick of fraud among other things, her accusations were also a matter of public concern.
One thing the Ninth Circuit Court of Appeals did not address is how she made her accusations.  Some individuals have asserted that Cox’s motives  are not all that pure and even go so far as to call her manipulative with financial motives, rather than a journalist. 

Critics say because her day job is to manage people’s reputations on the internet and when acting as an investigative journalist, Cox has registered dozens of domain names to negatively influence the search results of a person’s name. Cox will then ask for a fee in order to repair one’s reputation.  See Complaint at 2-4 Randazza v. Cox, 920 F. Supp.2d 1151 (D. Nev. 2013) (No. 12-02040).
In my opinion, part of the issue is definitely how Cox made the speech.  By linking together multiple websites together to voice her opinion, Cox manipulated the search engine results.  Professor Eugene Volokh, who represented Cox at the oral argument in front of the Ninth Circuit Court of Appeals, argued previously that search engine rankings are a type of corporate speech made by the search engines.  If Professor Volokh’s argument is believed, then Cox’s speech should not be considered pure at all.
I do not believe there is any case law on whether search engine manipulation can be considered defamation or not.  However, this technological part of the argument is something that the Court missed in their analysis.  In a later post, I will analyze Professor Volokh’s argument about search engine rankings being considered speech, and the logical extension, if search engine rankings are manipulated can that be considered defamation."
First Amendment Protection for Search Engines, Eugene Volokhhttp://www.volokh.com/wp-content/uploads/2012/05/SearchEngineFirstAmendment.pdf

oh and P.S. - My Day JOB at that Time was a Real Estate Broker Owner, and my "Day Job" has NEVER EVER been a "reputation manager" .. ahh but who cares about Factoids RIGHT?

oh and I registered the Domains NOT to negatively Influence the Search Engines but to use MODERN, New Media to EXPOSE CORRUPTION.. and ya Kevin Padrick and Marc Randazza are CORRUPT.. do some investigatin'
oh and Here is the FULL docket of Nevada SLAPP suit and Perjury of Marc Randazza http://ia701205.us.archive.org/2/items/gov.uscourts.nvd.91330/gov.uscourts.nvd.91330.docket.html

Saturday, April 5, 2014

First Amendment to the United States Constitution

"The Ninth Circuit Court ruled in Obsidian Finance Group LLC and Kevin Padrick vs. Crystal Cox (2014)[178] ruled that liability for a defamatory blog post involving a matter of public concern cannot be imposed without proof of fault and actual damages.[179]

Bloggers saying libelous things about private citizens concerning public matters can only be sued if they’re negligent i.e. the plaintiff must prove the defendants negligence – the same standard that applies when news media are sued.

The federal appellate court thus essentially said that journalists and bloggers are one and the same when it comes to the First Amendment
[180] and, in the words of Eugene Volokh, a professor at the UCLA School of Law, that nonprofessional press, especially bloggers, "for First Amendment purposes, have the same rights as others do, as for example the institutional media does."[181]

The unanimous three-judge panel rejected the argument that the negligence standard established for private defamation actions by the U.S. Supreme Court in 1974's Gertz v. Robert Welch Inc. only applied to "the institutional press."
[181] "The Gertz court did not expressly limit its holding to the defamation of institutional media defendants," Judge Andrew Hurwitz wrote for the three-judge panel. "And, although the Supreme Court has never directly held that the Gertz rule applies beyond the institutional press, it has repeatedly refused in non-defamation contexts to accord greater First Amendment protection to the institutional media than to other speakers."[181] Hurwitz wrote: "The protections of the First Amendment do not turn on whether the defendant was a trained journalist, formally affiliated with traditional news entities, engaged in conflict-of-interest disclosure, went beyond just assembling others' writings or tried to get both sides of a story. …

In defamation cases, the public-figure status of a plaintiff and the public importance of the statement at issue -- not the identity of the speaker -- provide the First Amendment touchstones."
[182]"

Source
http://en.wikipedia.org/wiki/First_Amendment_to_the_United_States_Constitution

Wednesday, April 2, 2014

"I believe that keeping silent when an injustice is taking place is condoning it." Crystal Cox Case

"

Crystal Cox Whistleblower

I quote India Today Group chairman and editor-in-chief Aroon Puri, from indianexpress.com:

The role of the media is to question and uncover facts that interested parties are keen to suppress and verify information, rather than resort to activism and drive an agenda, a panel discussion on responsible journalism at the CII National Conference has brought out.

He goes on further to say, according to his rulebook on journalism, “the biggest poison in journalism is journalists, proprietors and editors who have an agenda, who have to promote a point of view or an interest” and that activism should be nowhere near journalism. But if it “happens as a byproduct”, he said “I am okay with it”

He said according to his rulebook on journalism, “the biggest poison in journalism is journalists, proprietors and editors who have an agenda, who have to promote a point of view or an interest” and that activism should be nowhere near journalism. But if it “happens as a byproduct”, he said “I am okay with it”

“Activism is a good idea and a lot of people are full-time activists. But by being activist, media gives good activists a bad name. The job of the media is not to be activist but to be active. Our training has been to avoid activism and to be scrutinising,”


"

The “new media” obviously concerns many politicians like Feinstein, who show the same hostility to bloggers as her predecessors once showed to the media before New York Times v. Sullivan. While the issues are not identical between the torts doctrines and media shield laws, the ruling undermines the argument that there is a clear line between bloggers and conventional reporters in dealing with public disputes and allegations. We have still not resolved how to draw the line (if such a line is possible) between conventional and new media. What is significant is that this court is refusing to expose bloggers to the type of pre-Sullivan liability that would dramatically chill Internet speech.

Crystal L. Cox, Whistleblower Media, Poking a Big of Fun at Big Media"


Source

Thursday, March 27, 2014

Badmouthing the Bankruptcy Trustee and the First Amendment

"  As a Chapter 7 panel trustee, I sometimes annoy (to use a mild term) the occasional party - either because they don't understand the bankruptcy process, have an inflated sense of self-entitlement, or merely because my actions are inimical to their sense of well being.

A California trustee, in a similar situation, found himself in the cross-hairs of a somewhat critical blogger in a Ninth Circuit decision that defined the scope of a blogger's right under the First Amendment to publicly criticize a trustee's actions. Not just a bankruptcy case, the Obsidian Finance Group, LLC v. Cox decision provides a road map to applying First Amendment decisions to online commentary.

Kevin Padrick was appointed as the Chapter 11 trustee for Summit Accomodators, Inc. shortly after it filed its Chapter 11 bankruptcy petition. He soon found himself within the cross-hairs of a Crystal Cox, who commenced blogging about the bankruptcy in a manner critical of Mr. Patrick (some examples: "the facts of what Kevin Padrick of Obsidian Finance did that was probably illegal are washed under the carpet, never to be seen again" and "He is smart and good at his job, which is apparently screwing people out of their money").

She accused Padrick of fraud, corruption, money-laundering and other illegal activities in connection with the Summit bankruptcy. In response, Padrick and his company, Obsidian Finance Group, LLC, sued Cox for defamation.

The underlying framework derives from two Supreme Court cases - New York Times Co. v. Sullivan and Gertz v. Robert Welch, Inc. In Sullivan, the Supreme Court stated that defamation against a public official is only actionable if made with "actual malice." The plaintiff must show that the writer published the statement with actual knowledge that it was false or with reckless disregard to the truth. Under Gertz, in a private defamation action mere negligence in making a false statement is sufficient to create liability.

Padrick was arguing for an even more lenient standard, arguing that the Gertz negligence standard applied only to protect journalists, or, alternatively, where a matter of public concern was involved.

The District Court held that most of Cox's posts were constitutionally protected opinion, with the exception of one allegation - that Padrick had failed to pay taxes due from the bankruptcy estate. That claim went to a jury, which found in favor of Padrick.

After Cox's motion for a new trial was denied, she appealed the case to the Court of Appeals for the Ninth Circuit, which held (a) that First Amendment protections were available to a blogger, (b) that Padrick was not a "public officer" but that the bankruptcy case was a matter of public concern, thus requiring a higher standard before liability could attach, and (c) that liability could not be imposed without a showing of fault or actual damages.

The Circuit Court started with analyzing whether Cox could avail herself of First Amendment protections, or whether those protections were limited to journalists. Citing to the Supreme Court case, Citizens United, as well as decisions in the Second, Third, Fourth, Eighth, and DC Circuits, the court held that a First Amendment distinction between the institutional press and other speakers is unworkable. In defamation cases, the speaker's status as a professional journalist is not relevant - First Amendment protections derive from the defamed party's status and the public importance of the matter being discussed.

The Court then turned to the question of whether the matter was of public concern. It held that it was. Padrick was appointed as a bankruptcy trustee of a company that had been accused of diverting funds from investors.

His actions, and particularly the allegations that he was acting improperly in his position, were a matter of public concern. Accordingly, Padrick needed to prove that Cox had acted negligently in making her statements to obtain a judgment for actual damages incurred. Also, the jury could not award presumed damages, under Gertz, unless it found that Cox acted with actual malice.

The Court also considered whether Padrick, as a bankruptcy trustee, was a public official. If he was, then the stricter New York Times standard would apply to the entire case.

The Court noted that Padrick was neither elected nor appointed to a government position, and did not exercise control over governmental affairs. He merely was appointed as a stand-in for a debtor in possession. As such, Padrick was not a public official for purposes of defamation law.

The case was remanded back to the District Court for further proceedings. So, perhaps, the matter will have to be retried, with Padrick having to prove either that Cox acted with actual malice, in order to obtain an award of presumed damages, or having to prove both that she acted negligently and also that he suffered actual damage as a result of her posts. As for me, I was told when I got into this business that Chapter 7 trustees need to have a thick skin."

Source
http://tech-bankruptcy.blogspot.com/2014/03/badmouthing-bankruptcy-trustee-and.html

Monday, March 24, 2014

"Federal Court Officially Protects Blogger’s Freedom of Speech!"

"Are internet blog posts afforded the same 1st amendment rights granted to those working with traditional news media?

Yes, according to this recent 9th Circuit Court case which appears to be the the first federal case that specifically addresses and protects the rights of bloggers.

Internet writers can now take a deep breath and write a little more freely.

In defamation suits, bloggers and citizen journalists are at par with the professional journalists. The legal standards for judging their actions should be the same in relation to the First Amendment.

Crystal Cox, the blogger in question, was taken to court by Obsidian Finance Group, for having allegedly defamed the company.  In her blog, Cox accused the Finance group of fraud, corruption and other deeds of misconduct.  While Cox posted various blogs about this company, the one post that went to trial contained allegations that one of the company’s principals had failed to pay taxes for a company that filed Chapter 11 bankruptcy."

Source and Full Crystal Cox Case article
http://rauschlaw.wordpress.com/tag/1st-amendment/

Friday, March 21, 2014

Accuardi v. Fredericks; Obsidian v. Cox Citing

"Finally, Accuardi relies on this court’s decision in Obsidian Fin. Grp., LLC v. Cox, CV-11-57-HZ, 2011 WL 5999334, *6 (D Or Nov. 30, 2011). In that case, the defendant published statements on the Internet that the plaintiff had committed tax fraud while administering assets as a court-appointed trustee in the bankruptcy proceedings of a private corporation.

The court found that those statements were not a matter of public concern because they did not involve a question for public discourse, but strictly related to the handling of a private company’s bankruptcy affairs, citing Gertz v. Robert Welch, Inc., 418 US 323, 350 (1974).

The focus of Fredericks’s statements about Accuardi, unlike those about the plaintiff in Obsidian, is how Accuardi’s involvement with the private company affects the public.

Fredericks’s scrutiny is not limited to the private management of the Telemarketing Entities, but questions how that management resulted in alleged robo-calling to the citizens on the National Do Not Call Registry and violations of federal and state law.

More importantly, the Ninth Circuit disagreed with this court’s conclusion in Obsidian that the allegations of tax fraud were not a public issue because “[p]ublic allegations that someone is involved in crime generally are speech on a matter of public concern.” Obsidian Fin. Grp., LLC v. Cox, 12-35238, 2014 WL 185376, at *5 (9th Cir Jan. 17, 2014). As explained above, Fredericks’s statements implying that Accuardi is violating the law involve a matter of public concern. Thus, Fredericks has met his initial burden. "

Source
http://law.justia.com/cases/federal/district-courts/oregon/ordce/3:2013cv01825/114216/40

Tuesday, March 11, 2014

"Blogger's First Amendment Rights Upheld" - Crystal Cox Case

"Bloggers can rest easier as they post articles from their computers.  They have equal First Amendment rights with trained journalists.

That was the recent decision of the United States Ninth Circuit Court of Appeals in a defamation lawsuit brought against a blogger in California.

The decision went even further, confirming that First Amendment rights are applicable to everyone, and that everyday citizens and Pulitizer Prize-winning journalists journalists all possess the same rights under the First Amendment.

The unanimous 9th Circuit decision reversed a $2.5 million judgment against blogger Crystal Cox by Obsidian Finance Group and its co-founder Kevin Padrick.

The verdict followed a nearly inexplicable District Court opinion allowing the case to go to trial on the basis that Ms Cox could not produce evidence that he was a trained journalists engaged in that profession, that he could not claim the First Amendment protection of the New York Times v. Sullivan case.

For the decision in Obsidian Finance Group v. Cox, CLICK HERE.

For most First Amendment lawyers, the surprise was not the 9th Circuit's reversal, but the District Court's original decision, which seemed to go against a half-century of law to the contrary, although seldom applied to the new technology of blogging.

The lawsuit arose from a post by Ms Cox accusing Obsidian and Padrick of tax fraud in the handing of a company that was in Chapter 11 bankruptcy.

The 9th Circuit covers most of the western-most United States, including California.  The United States Circuit Courts of Appeal are the second highest federal courts, next to the US Supreme Court."

source and Full Article
http://lawforwriters.blogspot.com/2014/01/bloggers-first-amendment-rights-upheld.html

Crystal Cox Case; Ninth Court Decision NOT a Gift. The Law is the Law and Judge Hernandez violated it, PERIOD.

Friday, March 7, 2014

"Two years ago, a federal judge in Oregon made a shocking ruling that sent chills down the spine of all bloggers"


"Tag Archives: Crystal L. Cox

Federal appeals court says bloggers have same 1st Amendment rights as journalists
Posted on January 20, 2014 by Dr. Eowyn

Two years ago, a federal judge in Oregon made a shocking ruling that sent chills down the spine of all bloggers."

Crystal Cox Making a STAND against all Odds, has Changed the WORLD, and will eternally Empower ALL Citizen Journalists, Whistle Blowers and Investigative Bloggers WORLDWIDE.


12-35238 Obsidian Finance Group, LLC, et al v. Crystal Cox;

Crystal Cox Cited in USA v. Barrett Lancaster Brown, "MOTION TO DISMISS THE INDICTMENT, Defendant BARRETT LANCASTER BROWN files this motion to dismiss Count 1 and Counts 3–12 of the Indictment.

"However, First Amendment protection is not contingent on whether the
speaker is “a trained journalist, formally affiliated with traditional news entities, engaged in
conflict-of-interest disclosure, went beyond just assembling others’ writings, or tried to get both
sides of a story.” Obsidian Fin. Grp., LLC v. Crystal Cox 740 F.3d 1284, 1291 (9th Cir. Jan. 17,
2014) (applying First Amendment protection to blogs). "

http://cryptome.org/2014/03/brown-0064.pdf

"A VICTORY for All Independent Bloggers, God Bless You Crystal – Word of God . . . Speak. Amen!!". Crystal Cox Ninth Circuit.

"EDITORIAL: I became acquainted with Crystal Cox (Twitter @CrystalLCox1) through our mutual stalking experiences related to Marc Randazza and his connection with the Los Angeles porn industry and hired stalkers who harass and bully anyone who dares to speak out against their abuse and corruption against all of humanity. Crystal has done some amazing work exposing the Truth about these criminals and their far reaching agendas being played out throughout our judicial system today!
The events that began this journey for Crystal was her attempt to expose corruption in the federal bankruptcy court. Little did we know when we began to talk that our lives had both been touched by the same type of corruption and then threatened when we worked to expose our stories to the public. Monica Foster’s story is another who has been through the same type of harassment and abuse because she sacrifices to expose these criminal organizations. And, we are not alone. There are many more . . .
This is truly a judicial victory for The People and a slap in the face of those who call themselves professional journalists and think they have rights to special privilege. The Free Press is about reporting to The People the facts and the truths that others attempt to hide, exploit and manipulate. This ruling says you haven’t been doing your job for some time now so it’s time for The People to take over.
Thank you, Dear Lord, for giving us this victory which brings The People closer to the Truth and Justice You promised us all. May You have mercy on their souls as Your Justice Reigns over all. Amen!"
Source and Full Article
http://worldcourtofpublicopinion.com/?p=1288

Wednesday, March 5, 2014

Powerful Portland Trustee Loses on Appeal

http://www.underdoglawblog.com/2014/01/bloggers-deserve-first-amendment.html

"By Michael FullerThe Underdog Lawyer ®


Today, for the first time in history, the Ninth Circuit Court of Appealsconferred First Amendment protections to bloggers accused of defamation.

Powerful Portland Trustee Loses on Appeal


In 2011, Portland District Judge Marco Hernandez chose to deny blogger Crystal Cox protections under the Constitution because she was not a formal press member.



Cox had been sued for defamation after blogging about Oregon bankruptcy trustee Kevin Padrick and his investment company, Obsidian Finance Group.


Padrick retained prominent Portland lawyer David Aman of Tonkon Torp LLP, and obtained a $2.5 million verdict against Cox, who represented herself at trial.



Judge Hernandez instructed the jury that Padrick should prevail at trial, even if his lawyer failed to prove Cox acted with any degree of fault.

Today's Opinion Sets First Amendment Precedent


Today, the Ninth Circuit reversed, holding that Cox's failure to submit evidence that she was a journalist did not strip her blog of First Amendment protections.


The opinion is the first of its kind in the Ninth Circuit, which covers Washington, Oregon, California, Idaho, Nevada, Arizona, and Montana.

After Trial Loss, Blogger Gained Allies


Cox's loss at trial shocked many in the legal blogging community, and she quickly gained support from an all-star team of appellate lawyers on appeal.


After prevailing in court, Padrick took the bold legal maneuver ofattempting to terminate Cox's appeal by purchasing her appellate rights at sheriff's sale.

Key among Cox's allies was UCLA First Amendment professor Eugene Volokh, who assisted Portland firm Angeli Law Group LLC pro bono in filing an initial motion to stay in district court.


On January 15, 2013, Judge Hernandez granted Cox's motion to stay the proposed sheriff's sale.

The case, Obsidian Finance Group, LLC et al v. Cox, is nowremanded back to Oregon district court for a new trial.

Commentary


As a free speech law blogger, I rejoiced when I read Judge Hurwitz's opinion. Thank you, thank you, thank you, professor Eugene Volokh and Benjamin Souede!

Pigs Get Fat; Hogs Get Slaughtered.

Maybe the second time around, Padrick and his lawyer will avoid going "scorched earth" on a mentally impaired judgment-proof out-of-state pro se blogger.

Had Padrick been more reasonable in his legal positions in the first instance, he might have still won a monster verdict, and avoided this embarrassing reversal.

The first I actually heard of this case was Padrick's seemingly evil attempt to liquidate Cox's right to appeal on the Volokh Conspiracy a year ago.

The "Free Speech Notice" on my website was a direct result of Judge Hernandez's holding.


Say what you will about Citizens United, I thought it interesting the panel was so heavily persuaded by it in this pro-consumer opinion.

“We have consistently rejected the proposition that the institutional press has any constitutional privilege beyond that of other speakers.”
Citizens United v. FEC, 558 U.S. 310, 352 (2010)."

Source