971 F.3d 747
8th Cir.2020Background:
- Test Prep (East Coast Test Prep LLC) sells nursing test-prep services; Allnurses.com is a moderated forum where registered users post and "like" comments under site Terms of Service.
- Users posted comments claiming Test Prep’s services would be "redundant/obsolete" and that Test Prep was under federal investigation; some moderator actions (a "like," thread closure, removal of a Test Prep employee’s posts) followed.
- Test Prep and its owner Olynyk sued Allnurses, its founder, and user Uhura Russ for trade libel, contract and promissory-estoppel claims, fraud/consumer-fraud claims, and theories of inducement/vicarious liability.
- The district court granted judgment on the pleadings for Allnurses (dismissing trade libel, contract, and fraud claims) and later dismissed Russ for lack of personal jurisdiction; it alternatively granted summary judgment on fraud claims.
- On appeal, Test Prep argued §230 immunity did not apply because Allnurses allegedly created/developed content; it also challenged the pleading sufficiency on contract and fraud theories and contended Russ waived jurisdictional defenses or the case should be transferred.
- The Eighth Circuit affirmed: §230 barred the trade-libel claim (no plausible allegation Allnurses was the content provider), contract and promissory-estoppel claims failed, fraud claims were implausible, and the court lacked personal jurisdiction over Russ.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §230(C)(1) bars Test Prep’s trade libel claim for third-party posts (Russ/Moeller) | Allnurses was partly responsible for creating/developing the posts (paid/solicited users; users were agents/volunteers) so §230 immunity shouldn’t apply | Allnurses is an interactive computer service and not the speaker/publisher of third-party content; no plausible facts show it was an information-content provider | Affirmed §230 immunity: complaint failed to plausibly allege Allnurses created/developed those posts |
| Whether Allnurses’ Terms of Service formed an enforceable contract benefiting Test Prep (breach; implied covenant) | Terms and communications promised removal of libelous posts and protection of "lively debate," creating contractual obligations to Test Prep/Olynyk | Test Prep/Olynyk were not parties or intended beneficiaries; terms did not promise immediate removal or keep threads open; no contractual obligation to plaintiff | Dismissed contract and implied-covenant claims: no contractual relationship or plausible breach alleged |
| Whether fraud and consumer-fraud claims were plausibly pled (misrepresentation/omissions about neutrality/advertiser relationships) | Allnurses misrepresented forum neutrality and concealed ties to advertisers (moderator "like," thread handling), causing harm | Allegations are bare, conclusory, and insufficiently specific to plead fraud or statutory consumer-fraud claims | Dismissed fraud claims as implausible; district court’s alternative summary-judgment disposition need not be revisited |
| Whether district court had personal jurisdiction over Russ and whether Russ waived that defense; whether case should be transferred to Pennsylvania | Russ’s pro se filings failed to preserve jurisdictional defense/waived it; if not, interests of justice require transfer rather than dismissal | Russ is a Pennsylvania resident with no Minnesota contacts; she timely asserted lack of jurisdiction and did not waive the defense | Affirmed dismissal for lack of personal jurisdiction; no waiver; district court did not abuse discretion in denying transfer |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (pleading must state a plausible claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (plausibility standard and ‘‘sheer possibility’’ rule)
- Fair Hous. Council v. Roommates.com, LLC, 521 F.3d 1157 (9th Cir.) (§230 recognizes immunity for interactive computer services)
- Jones v. Dirty World Entm’t Recordings LLC, 755 F.3d 398 (6th Cir.) (site operator may lose §230 immunity if it helped create/develop content)
- Huon v. Denton, 841 F.3d 733 (7th Cir.) (pleading facts showing site control/creation can defeat §230 dismissal)
- Kimzey v. Yelp! Inc., 836 F.3d 1263 (9th Cir.) (plaintiffs must plausibly allege the site fabricated or developed third-party content)
- Noble Sys. Corp. v. Alorica Cent., LLC, 543 F.3d 978 (12th Cir.) (standard of review for judgment on the pleadings mirrors Rule 12(b)(6))
- Patel v. Soriano, 848 A.2d 803 (N.J. Super. Ct. App. Div.) (elements of trade libel)
- Wilson v. Dubois, 29 N.W. 68 (Minn.) (trade-libel principles under Minnesota law)
- Johnson v. Arden, 614 F.3d 785 (8th Cir.) (standard of review for personal-jurisdiction rulings)
- Everett v. St. Ansgar Hosp., 974 F.2d 77 (8th Cir.) (discretionary review of transfer/dismissal decisions)