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Keywords

lawsuitplaintiffdefendantdamagesappealburden of prooffreedom of speech
lawsuitplaintiffdefendantappealburden of prooffreedom of speech

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Trout Point Lodge, Ltd. v. Handshoe, 729 F.3d 481, 41 Media L. Rep. 2413

Facts

Trout Point Lodge, along with its owners Vaughn Perret and Charles Leary, filed a defamation lawsuit against Doug K. Handshoe in Nova Scotia after he published allegedly defamatory statements on his blog, Slabbed.org. The Nova Scotia Court entered a default judgment against Handshoe after he failed to respond to the lawsuit, awarding Trout Point Lodge $75,000 in damages and additional amounts to Perret and Leary. Trout Point then attempted to enforce this judgment in Mississippi, leading to the current appeal.

Trout Point Lodge, along with its owners Vaughn Perret and Charles Leary, filed a defamation lawsuit against Doug K. Handshoe in Nova Scotia after he published allegedly defamatory statements on his blog, Slabbed.org.

Issue

Whether the default judgment obtained by Trout Point Lodge in Nova Scotia is enforceable in the United States under the SPEECH Act.

Whether the default judgment obtained by Trout Point Lodge in Nova Scotia is enforceable in the United States under the SPEECH Act.

Rule

Under the SPEECH Act, a foreign defamation judgment is unenforceable in the U.S. unless it provides at least as much protection for freedom of speech as the First Amendment and relevant state law, or the defendant would have been found liable for defamation under U.S. law.

Under the SPEECH Act, a foreign defamation judgment is unenforceable in the U.S. unless it provides at least as much protection for freedom of speech as the First Amendment and relevant state law, or the defendant would have been found liable for defamation under U.S. law.

Analysis

The court determined that the defamation law applied in the Nova Scotia proceeding provided less protection for freedom of speech than U.S. law, particularly because Canadian law does not require a plaintiff to prove falsity as an element of defamation. Additionally, the court found that Trout Point failed to prove that Handshoe would have been found liable for defamation in a Mississippi court, as the allegations in the First Amended Statement of Claim were insufficient to establish falsity under Mississippi law.

The court determined that the defamation law applied in the Nova Scotia proceeding provided less protection for freedom of speech than U.S. law, particularly because Canadian law does not require a plaintiff to prove falsity as an element of defamation.

Conclusion

The Court of Appeals affirmed the district court's ruling that the default judgment was not enforceable under the SPEECH Act, concluding that Trout Point failed to meet its burden of proof.

The Court of Appeals affirmed the district court's ruling that the default judgment was not enforceable under the SPEECH Act, concluding that Trout Point failed to meet its burden of proof.

Who won?

Doug K. Handshoe prevailed in the case because the court found that Trout Point could not enforce the Nova Scotia judgment under the SPEECH Act due to insufficient proof of falsity and the lesser protections afforded by Canadian defamation law.

Doug K. Handshoe prevailed in the case because the court found that Trout Point could not enforce the Nova Scotia judgment under the SPEECH Act due to insufficient proof of falsity and the lesser protections afforded by Canadian defamation law.

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