Latest 3 Cases This Week: Lyngaas v. Curaden AG (6th Cir.), Next Technologies, Inc. v. Beyond the Office Door LLC (7th Cir.), Tah v. Global ...

Constitutional Problems With the Kentucky Proposal (Supported by Mitch McConnell) to Change the Way U.S. Senate Vacancies Are Filled

VIKRAM DAVID AMAR

In this second of a series of columns, Illinois Law dean and professor Vikram David Amar comments on the Kentucky proposal to change the way U.S. Senate vacancies are filled. Dean Amar argues that the Seventeenth Amendment precludes such a proposal, which would allow the state legislature to substantively constrain the governor’s choices in making a temporary appointment.

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Lyngaas v. Curaden AG

Court: US Court of Appeals for the Sixth Circuit

Dockets: 20-1243, 20-1199, 20-1200

Opinion Date: March 24, 2021

Judge: Ronald Lee Gilman

Areas of Law: Business Law, Communications Law

Curaden AG, a Swiss entity, manufactures toothbrushes. Curaden USA, an Ohio corporation headquartered in Arizona, is a Curaden AG subsidiary and promotes Curaden AG products throughout the U.S. The two companies had not executed the standard written distribution agreement that typically governs the practices of Curaden AG’s subsidiary distributors. Curaden USA never presented its advertising materials to Curaden AG for review. Curaden USA purchased a list of thousands of dental professionals’ fax numbers and created the fax advertisements at issue, which displayed Curaden USA’s contact information without mention of Curaden AG. Curaden USA hired companies to send the faxes and paid for the transmission. Lyngaas, a Livonia dentist who had received two Curaden USA faxes, filed a purported class action under the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227. The Sixth Circuit affirmed that Lyngaas could not pierce the corporate veil to hold Curaden AG liable for Curaden USA’s action, that faxes received by a computer over a telephone line violated the TCPA, that it had personal jurisdiction over both Curaden entities, that Curaden USA violated the TCPA but that Curaden AG was not liable as a “sender,” and that Lyngaas’s evidence and expert-witness testimony concerning the total number of faxes successfully sent were inadmissible due to unauthenticated fax records. A claims-administration process was established for class members to verify their receipt of the unsolicited fax advertisements.

Next Technologies, Inc. v. Beyond the Office Door LLC

Court: US Court of Appeals for the Seventh Circuit

Docket: 20-2169

Opinion Date: March 24, 2021

Judge: Frank Hoover Easterbrook

Areas of Law: Business Law, Commercial Law, Communications Law, Internet Law

Next makes office equipment and refers potential customers to reviews that rate its products highly. Next's competitor, Beyond, published reviews critiquing Next’s standing desks. Instead of pursuing a claim under the Lanham Act, 15 U.S.C. 1125, Next sued in federal court under diversity jurisdiction, relying on Wisconsin’s common law of defamation. The district judge treated product reviews and political commentary as equivalent and cited the Constitution, holding that because Next is a “limited-purpose public figure”—made so by its own efforts to sell its wares—all criticism by a competitor is constitutionally protected unless the statements are knowingly false or made with reckless indifference to their truth. The court concluded that the standard was not met. The Seventh Circuit affirmed on other grounds, stating that it was “skeptical” about the trial court’s use of the Constitution. On the district court’s approach, few claims under the Lanham Act ever could succeed, and commercial advertising would be treated just like political campaigning. Next failed to state a claim under Wisconsin law. “Whatever one can say about whether both gray paint and polished metal should be called 'silver,’ or whether two circuit boards are as good as one, these are not 'false assertions of specific unfavorable facts.’”

Tah v. Global Witness Publishing, Inc.

Court: US Court of Appeals for the District of Columbia Circuit

Docket: 19-7132

Opinion Date: March 19, 2021

Judge: David S. Tatel

Areas of Law: Civil Rights, Communications Law, Constitutional Law

Plaintiffs, two former Liberian officials, allege that Global Witness, an international human rights organization, published a report falsely implying that they had accepted bribes in connection with the sale of an oil license for an offshore plot owned by Liberia. The DC Circuit affirmed the district court's dismissal of the complaint for failing to plausibly allege malice. The court concluded that the First Amendment provides broad protections for speech about public figures, and the former officials have failed to allege that Global Witness exceeded the bounds of those protections. In this case, plaintiffs advanced several interlocking theories to support the allegation of malice, but the court agreed with the district court that these theories fail to support a plausible claim that Global Witness acted with actual malice.