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## author : bala@malaysia.net
## date : 04.02.99
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Suit Alleging E-Mail
Libel Is Dismissed
Source: http://www.lawnewsnetwork.com/stories/jan/e010499g.html
By Mark Hamblett
New York Law Journal
Monday, January 4, 1999
An on-line service provider had no editorial
control over the content of e-mail messages
and bulletin board postings and cannot be held
liable for defamation, a state appeals court
has ruled.
A unanimous, four-judge panel of the Appellate
Division, Second Department dismissed the
complaint filed by a Boy Scout in Alexander G.
Lunney v. Prodigy Services Company, issued
Dec. 28.
The case began in 1994, as the court noted,
when "an infantile practical joker with access
to a computer" sent a Boy Scout leader a
threatening e-mail message in the name of
15-year-old Boy Scout Alexander G. Lunney.
Mr. Lunney's Scout Master was told of the
e-mail message and went to the teen's home,
where he confronted him in the presence of his
mother.
To make matters worse, Prodigy wrote Mr.
Lunney and said his account with the on-line
service had been suspended because of his
transmission of "abusive, obscene and sexually
explicit material".
The company was later forced to apologize when
it discovered that several fictitious accounts
had been opened in Mr. Lunney's name.
Mr. Lunney filed suit in December 1994
claiming libel, negligence and harassment. He
later amended his complaint to encompass two
bulletin board messages from "the practical
joker" and a claim of intentional infliction
of emotional distress.
He also alleged that internal bookkeeping
entrys and handwritten memos described him as
a delinquent who had committed credit card
fraud and transmitted obscene material.
Westchester Supreme Court Justice Joan B.
Lefkowitz denied Prodigy's motion for summary
judgment on Jan. 18, 1998.
The Second Department reversed. Writing for
the court, Justice Lawrence J. Bracken said
the applicable precedent was the 1974 Court of
Appeals decision in Anderson v. New York
Telephone Co. (35 NY2d 746).
TELEPHONE ANALOGY
In Anderson, the Court drew a distinction
between telegraph companies, where employees
directly participate in the transmission of
messages, and the phone company, where callers
directly communicate with listeners.
Justice Bracken said that Prodigy is "by far"
more analogous to a telephone company than it
is to a telegraph company. And even in the
case of a telegraph company, he said, a
qualified privilege exists that requires proof
of actual malice.
The appellate panel disagreed with the holding
in Stratton Oakmont Inc., v. Prodigy Services
Co.(Sup Ct. Suffolk County, May 24, 1995),
where a defamatory posting on the company's
financial bulletin board was held actionable.
The court in Stratton Oakmont ruled that
Prodigy "exercised editorial control" over the
bulletin board "to the extent that it could be
considered the publisher of the defamatory
posting."
Justice Bracken, though, noted that it was
impossible for online services to have any
meaningful control over bulletin boards, so
Prodigy should not have been held liable in
the earlier case. In any event, the judge said
that Prodigy made no attempt to control the
bulletin board at issue in the Lunney case.
And Justice Bracken said it is obvious that an
on-line service cannot maintain editorial
control over "all of the e-mail sent by its
subscribers."
Finally, he noted that the internal Prodigy
memoranda were shielded by the common interest
privilege.
Justices Sondra Miller, Cornelius J. O'Brien,
William D. Friedmann concurred in the
decision.
Michael J. Silverberg and Bruce J. Turkle of
Phillips, Nizer, Benjamin Krim & Ballon were
the attorneys for Prodigy.
Mr. Lunney was represented by his father, J.
Robert Lunney, and Phillip C. Landrigan
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