Why is it OK for an American company to headquarter in one state then cherry pick another in which to file a lawsuit? Surely a company should be governed by the laws of the state in which they are based.
It seems weird to choose the set of laws you want to be judged by when the defendant cannot do the same.
It shouldn't be OK and Media Matters will surely file for a change of venue. They're located in DC and Twitter in California. Heck, Twitters own TOS says that your use of the service is governed by California law, so any claim that they fraudulently used the service should be handled in California.
But activist judges are also known to deny motions for made up reasons, so Twitter starts in Texas in hopes an activist judge keeps the case there to "stick it to the liberals."
Texas is famous for judges that keep the venue there, with laws that are friendly to corporations. It's why it's the most popular state for these shitbird corporate lawyers to file suits.
That's an excellent point that should be fatal to venue. The official "X Terms of Service" clearly state:
The laws of the State of California, excluding its choice of law provisions, will govern these Terms and any dispute that arises between you and us. All disputes related to these Terms or the Services will be brought solely in the federal or state courts located in San Francisco County, California, United States, and you consent to personal jurisdiction and waive any objection as to inconvenient forum.
I have a hard time imagining that even the most biased court would refuse to apply X's own plainly-worded forum selection clause against itself.
Surely a company should be governed by the laws of the state in which they are based
This is not true and wouldn't make why sense: let's say you are a delivery company and one of your drivers runs over a dog in Texas. The lawsuit can be filed in Texas, regardless of whether your company is in Texas, California, or even outside the united states. The place you are incorporated in doesn't change the damages or laws you violated when running over the dog. Of course you can also move the venue to the state the company is based in.
You cannot (generally) move it to another state, since that state doesn't even have jurisdiction over any part of the incident.
The internet is just special in the sense that really something that happened on the internet happened everywhere on earth at the same time, meaning any venue is a place where potential damages were accrued.
Agree that if an incident happens in a particular jurisdiction, the local court should handle it. That makes sense, no argument here.
But here they get to choose the set of laws because there was no physical location? That just feels wrong somehow. Anyway there is a physical location and if anything, the incident was 'perpetrated' by a person who was physically located somewhere at the time. It should be handled by the court local to them at the time. In the case of organisations, I guess this would mean where the defendant company operates from. Or if we accept it is virtual and everywhere then, it should be governed by federal laws not state laws.
Makes sense, but how can things like the slapp suit from bob murray have been in a state (west virginia) neither hbo ( who called bob a lot of shit and is located in new york ) , bob murray ( utah) or his company were in?
Edit: excuse me, i meant bob murray, not bill murrey
Essentially the same argument: Due to the fact the HBO show was syndicated throughout the united states, he can file in the federal courts in e.g. Texas (usually the argument is something like "They damaged business relations/contracts in XYZ state, therefore we file in XYZ state").
I think your example covers the case where a company has a lawsuit filed against it. And the object of the lawsuit is an event that occurred in a particular state. But why should a company be able to originate a lawsuit in the state of their choosing? Shouldn’t it either be their home state or the home state of whom ever they’re suing? Or wherever the events in question took place?
The issue with the internet is that it did take place in texas as well: The news article was available in texas, so the news corp can be sued there. Basically the argument is: "Media Matters harmed X's brand in texas using misleading information" (you can read their arguments for filing in texas under the "Jurisdiction and Venue" section of their filing).
Also remember that this is currently X's wish list: Media Matters can file for a change in venue.