Professional Documents
Culture Documents
A Publication of the American Association for Justice formerly Association of Trial Lawyers of America (ATLA®) Vol. 12, No. 1, Fall 2007
MATTHEW A. CARTWRIGHT
INSIDE MESSAGE FROM THE CHAIR
We Can Level the Playing
Page 4
New Section
Field in NASD Arbitrations
Members,
Welcome! F or the Business Torts Section,
2007-2008 will be a year of
consolidating successes of years
clause. The current reality f or
individual investors is that no
hope exists for a jury trial. In
past and moving on with new practical application, the lack of
Page 6 initiatives. a jury trial has generally result-
Taking the gavel from ed in exactly the kind of tribunal
AAJ Exchange Immediate Past Chairman Kirk from which the Founding
Litigation Reasonover, I begin my term Fathers were trying to protect
with a call to action from all of this country. These arbitrator
Packet
our members to follow up on an panels are composed primarily
Preview important project that Kirk of brokers and dealers, not ordi-
began: to get AAJ members to nary people who might identify
enroll as arbitrators for the with the claimant, but industry
Page 7 National Association of insiders who empathize only
Matthew A. Cartwright
Missing a Securities Dealers. with the respondent. There can
As you know, anyone with a be little doubt that in many, orthopedic surgeons.
Must-Read dispute against a stockbroker is many of these cases, justice has It does not have to be this
Article from bound by the provisions of the been a victim. Imagine trying a
Last Year’s NASD mandatory arbitration malpractice case to a jury of continued on Page 2
Newsletters?
Internet-Related Business Torts:
The Rights of Privacy and Publicity
Back Issues of By Gregory Rutchik, San Francisco, Calif.
Business Torts
Section
newsletters can
M ost lawyers have little
time to spend on the
Internet, and fewer have
Even if the tort of false light
is far from your practice, as the
Internet becomes even more
claim and avoid missing a
potential case and maybe even
summary judgment if you
be found on our thought of potential claims and prolific these tips should help attempt to plead one.
Web site at claimants as coming from the you when an Internet-related The individual’s right to be
Internet – and I’m not talking business tort client comes left alone – the right of privacy
www.justice.org/
about advertising your practice knocking. In the end, you will – is a constitutional right deriv-
sections/businesstorts. here. I’m speaking of business be able to identify the differ- ing from the U.S.
torts related to the right of pri- ence between a right of privacy
vacy and publicity. claim and a right of publicity continued on Page 3
From the Chair cont. from Page 1 It is merely to start leveling the playing
2007-2008
field at these arbitrations. SECTION OFFICERS
Now the task is to promote our goal.
way. Any AAJ member, not just a First, as a Section member, you should
Chair
Business Torts Section member, can make it your business to enroll as a
Matthew A. Cartwright
become an NASD arbitrator. Through NASD arbitration panel member this
Munley Munley & Cartwright, PC
Kirk’s efforts and the good offices of a year. The enrollment process is straight-
672 N. River St., Ste. 310
number of important AAJ Governors, forward. For more information, contact
Wilkes-Barre, PA 18705-1036
AAJ, notwithstanding its worthy and AAJ Sections at sections@justice.org.
Phone: 570/824-5599
longstanding opposition to arbitration Once you become a NASD arbitrator, E-mail: mattc@munley.com
as a format, gave approval for its mem- you can explain to other AAJ members
bers to become NASD arbitrators. It how important and easy it is.
was an important first step. Certainly, AAJ has given us the green light on Chair-Elect
our goal is not to appoint arbitrators this important project. Let’s go! Colleen Duffy Smith
who will vote in lockstep for claimants. McManis Faulkner & Morgan
50 W. San Fernando St., #1000
San Jose, CA 95113-2415
Phone: 408/279-8700
AAJ Litigation Groups E-mail: cduffysmith@mfmlaw.com
Gregory Alan Rutchik’s contact information was incorrectly stated in the Secretary-Treasurer/Newsletter Editor
Summer 2007 edition. The correct information is: the arts and technology law Gregory Alan Rutchik
group, 3 Embarcadero Center, 6th Floor, San Francisco, CA 94111, T: 415-399- the arts and technology law group
9440, F: 415-399-9444, gregory@rutchik.com. 3 Embarcadero Center, 6th Floor
San Francisco, CA 94111
Phone: 415/399-9440
Edward Chester
Administrative Assistant
This Section Newsletter is intended to be a forum of opinion and information pertaining to the interest
of Section members. Unless specifically stated otherwise, its contents reflect the views of authors only,
and should not be interpreted as a statement of the position or policies of AAJ or the Section itself. © 2007, American Association for Justice
formerly Association of Trial Lawyers of America
Published material remains the property of AAJ. No material may be reproduced or used (ATLA®)
out of context without prior approval of, and proper credit to, this Section Newsletter. All rights reserved
Privacy and Publicity cont. from Page 3 privileged or newsworthy should have is compensable. The Anderson case –
fallen on the plaintiff’s shoulders. resting in copyright – supported that a
Musicians captured on video when videotape depicting sexual intercourse
al. In Easter Seal Soc For Crippled their stage collapsed, and subsequent- was protectable and enforceable.
Children and Adults of Louisiana, Inc. v. ly mocked on ABC’s “American
Playboy Enterprises, Inc., 530 So. 2d 643, Funniest Home Videos” were able, DISCLOSURE OF PRIVATE FACTS
648 (La. Co. App. 4th Cir. 1988), the after obtaining a reversal of a lower Although it is true that celebrities
“mere appearance” of an individual court’s dismissal, to move forward on and non-celebrities alike can allege a
captured in a crowd scene of an adult their “well-pleaded general allega- claim of appropriation - the impermis-
movie called “Candy the Stripper” that tion” that must be determined by the sible commercial use of one’s identity
focused on sex and drugs was insuffi- trier of fact.5 causing injury to dignity and self-
cient for that individual to establish a Ms. Hilton’s case is reminiscent of esteem and resulting in emotional dis-
claim of false light. the Hustler Magazine v. Wood case and tress - it is a difficult claim for non-
The plaintiff’s burden of proof is not the Pamela Lee Anderson sex video celebrities to pursue. In addition,
easily met. A transsexual sued a news- case. See e.g. Wood v. Hustler Magazine, celebrities who encourage their public
paper for invasion of privacy for pub- Inc., 744 F.2d 94 (1984). Hustler Mag., exposure and wide circulation of their
lishing a column that revealed her Inc. v. Wood, 469 U.S. 1107 (1985). images, may have difficulty establish-
then-secret sex change operation. The Certiorii denied; Michaels et al. v. Internet ing damages to their dignity or hurt
trial court in Diaz v. Oakland Tribune, Entertainment Group, 5 F. Supp. 2d 823 feelings.
Inc., 139 Cal. App. 3d 188 (1983), (C.D. Cal 1998). Thus, in California, injured parties
returned an award for compensatory In Wood, the appellate court must take a different tact. Like Hilton
and punitive damages but the appel- affirmed a jury verdict against Hustler they are often advised to assert claims
late court reversed. The appellate court after a neighbor submitted nude pho- of “disclosure of private facts” – a com-
found that the trial court held the tos under a forged consent. While the mon law cause of action. Because a
newspaper to a high standard to show Wood case speaks to the issue of an major component is disclosure to the
“newsworthiness” and found the bur- effective consent, it sends a clear mes-
den of proof that the article was not sage that negligent invasion of privacy continued on Page 5
Privacy and Publicity cont. from Page 4 selves engaged in sexual conduct. the ones who originally sold the Hilton
Will Hilton be entitled to any less materials was dismissed without prej-
protection due to her history of pub- udice. Even after months of litigating,
public at large, disclosure via the lishing intimate details of herself? 4 the effect of her actions against the
Internet almost guarantees that this Should she be? remaining defendants remains unset-
element can be met. tled. In fact, the court ordered that
Certain celebrities will face chal- RIGHT OF PUBLICITY IS ABOUT another defendant be dismissed unless
lenges when attempting to establish MONEY Ms. Hilton agrees to be deposed by
that the “facts are not already known As Paris Hilton’s case bears out, September 17, 2007.
to the public” and that the “disclosure there is a likelihood of success in stop- The lesson for the rest of us to use:
is highly offensive to a reasonable per- ping another party from using one’s As private relationships fall apart in
son of ordinary sensibilities.” Hilton likeness, voice or image if in fact they this time of the Internet, online dating
will have little trouble establishing that are doing so to make money. In short, and instant messaging, the courts will
her personal information such as her right of publicity is a property right. It see many more cases under the claims
medical information and her phone is about getting compensated for of invasions of privacy rights. As you
and bank numbers are unknown to the another’s use of your likeness, voice or confront litigants and potential clients
public. However, will certain celebri- image for money. In fact, California with Internet activities, these claims
ties face more difficulties convincing a and many other states have enumerat- become very real. They play out in
jury that the disclosure of their infor- ed the right of publicity under the domestic relations claims and as part
mation is highly offensive? unfair competition laws in the of more business tort practices. The
Doesn’t the standard require the Restatement of Unfair Competition issue will be difficult for courts to han-
trier of fact to determine whether the §46 and the California Civil Code. dle as defendants and Web content to
disclosure is highly offensive from the While a claim for violation of one’s proliferate over the Internet while
plaintiff’s perspective? If it isn’t offen- right to publicity makes sense for a plaintiffs bear a heavier and costlier
sive to the plaintiff — and that might celebrity or someone who could turn burden in stopping it.
be a tact taken by defendants seeking their likeness or voice into money, it is
to defeat this claim — how could it be not clear that his claim meets the needs Notes:
offensive to a juror? of a civilian on the street who is hurt by 1. Lest we be incomplete, the First, Fourth, Fifth and
Here are some scenarios that courts stolen nude photos. Of course, one Fourteen all provide some protection of privacy.
Although in all cases the right is narrowly defined
have found NOT to be highly offensive could quickly see a claim for violation of and limited to government intrusion. See e.g. Paul v.
when disclosed: retirement, religious right of publicity if a hereto now David, 424 U.S. 693, 713 (1976).
affiliation, buying of a new expensive unknown becomes front page news on a 2. See e.g. Rosenberg v. Martin, 478 F.2d 520, 524
house, finding and returning a large paid porn site, but this is not the norm. (2d Cir. 1973).
3. Paris Hilton v. Bardia Persa et al; CD. CA Los
sum of money, receiving a certain Clearly, the court in Hilton’s case Angeles; 2:00-cv-08306-TJH-RZ;
salary, passing or failing a test, being agreed with Hilton and preliminary 4. Approximately 30 states recognize the tort of false
the wealthiest person in town, kissing enjoined the defendant from using her light invasion of privacy.
a certain rock musician in the stall of a likeness, image, or other materials for 5. See Sharrif v. American Broadcasting Company,
13 So. 2d 768 1993.
woman’s toilet.6 commercial gain. The problem – as 6. (See McCarthy, page 547).
On the other hand, here is a list of Hilton’s experience bears out – is that 7. See e.g.
things that courts said ARE highly others are using her image as a result http://www.hollywoodreporteresq.com/thresq/spot-
offensive to a reasonable person: of the Internet and she will have to light/article_display.jsp?vnu_content_id=100354481
1; “Hilton's suit does not mention that she became
1) Unpermitted publication in a spend additional funds and time in an famous -- or infamous -- largely because of the
national magazine of a nude photo- attempt to stop them. Even if she does release on the Internet of an explicit sex tape with
graph of the person. enjoin some, the offshoring of content her then-boyfriend, Rick Salomon, on the eve of the
2) Disclosure by employer of a fel- and activities makes it difficult to take premiere of “Simple Life.” The video received a
pornography industry award in 2005 for best selling
low employee that she had a hysterec- down everything that was taken from title of the year.”
tomy or mastectomy. Hilton and used to generate money.
3) Public disclosure of the plaintiff’s The average individual has as many
name on signs carried by protesters quills in their arsenal to fight against Gregory Rutchik is newsletter editor for
that plaintiff was about to undergo an invasions of their privacy as Hilton but the Business Torts Section. The arts and
abortion. at what cost and effect? It has taken technology Law Group, 3 Embarcadero
4) The showing of a surreptitiously Hilton more than six months and Center, 6th Fl., San Francisco, CA 94111,
made videotape of plaintiff engaged in unquestionably tens or maybe hun- T: 415/399-9440, gregory@rutchik.com,
sexual intercourse. dreds of thousands of dollars in legal www.thepiracylawyer.com. Gregory is
5) The distribution on the Internet of fees to stop one defendant. The com- working on a book on litigating right of
a video made by plaintiffs of them- plaint against two other defendants – privacy and right of publicity claims.
Vol. 11, No. 1, Fall 2006 Vol. 11, No. 4, Summer 2007
The Chair’s Message - A “Business Torts” The Editor’s Message - Making Request for
Winter in Miami Admissions Your Friend
Kirk Reasonover Gregory Alan Rutchik
X
Pleading Fraud - Exposing the Gritty Details The In Pari Delicto Defense in Bankruptcy
By Gregory Alan Rutchik, San Trustee Actions
Francisco, Calif By Elizabeth Pipkin, San Jose, Calif. and
James C. Ferrell, Houston, Texas
An Intellectual Property Primer - Copyright and
Trademark Guidelines for the Business Lawyer Promissory Note Fraud
E
• Save time and money by gaining access to knowledge and documents from cases similar to yours. • Telemarketers, Spam
• Avoid pitfalls by uncovering specific strategies from your colleagues. and Junk Faxes
• Reduce the time it takes to prepare a case for trial.
• Structure your discover strategies and arguments toward a favorable verdict or settlement.
Visit www.justice.org/litgroups and find out how you can take advantage of this unique AAJ benefit.
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