Ninth Circuit Provides Some Relief for Employers and Executives Anonymously Trashed on the Web

Keeping silentAnonymous Internet posts attacking employers and executives have become all too common. Until the Ninth Circuit Court of Appeals’ decision last week in Anonymous Online Speakers v. United States District Court for the District of Nevada Reno, courts have relied on the First Amendment right to speak anonymously to set substantial obstacles in the path of employers and executives seeking to compel Internet service providers to disclose the identity of anonymous speakers on the Web. In a case of first impression in the federal appellate courts, the Ninth Circuit appears to have made it significantly easier for employers and executives to unmask the perpetrators of anonymous Internet attacks.

The case arose out of Signature Management TEAM’s alleged smear campaign against Quixtar. According to Quixtar, TEAM was responsible for anonymous posts that accused Quixtar of “systemic dishonesty,” “systemic noncompliance” with regulations, and improperly treating its franchisees. TEAM’s online content manager refused to answer questions at his deposition seeking the anonymous speaker’s identity. Quixtar sought an order compelling disclosure; the anonymous speakers intervened in the proceeding to prevent disclosure.

In a significant victory for employers and executives, the Ninth Circuit rejected the approach to unmasking requests taken by all other courts to date. These courts required the putative victim of an anonymous attack to produce levels of proof that almost always will be unattainable at the early stages of a case when the unmasking issue typically is addressed, so the defendant can be identified, served with the complaint, and subject to discovery. The Ninth Circuit ruled that rather than requiring the victim to prove his claims, trial courts should determine whether the anonymous speech is political, religious or literary and entitled to heightened protection, or commercial and entitled to less protection.

When anonymous speech is “commercial,” which typically will be the case when employers or executives come under attack, a trial court should apply a balancing test. The test weighs the anonymous speaker’s First Amendment rights against the “need for relevant discovery,” recognizing the "great potential for irresponsible, malicious, and harmful communication" and that particularly in the age of the Internet, the "speed and power of internet technology makes it difficult for the truth to 'catch up' to the lie." Although future application of these high-level principles is difficult to predict, the Ninth Circuit’s new approach to “unmasking cases” almost surely will result in greater success for employers and executives seeking to unmask anonymous speakers on the Web.

While savoring this victory, employers should keep in mind that litigation against anonymous speakers on the Web can be expensive, time consuming, and distracting. In many circumstances, the victims of an anonymous attack will be better served by letting the offending comment become lost in the daily flood of information on the Internet.

This entry was written by Philip L. Gordon and Christopher M. Leh.

Photo credit: rtiom

Oral Argument in the Quon Text Messaging Case Suggests the U.S. Supreme Court Will Avoid a Broad Pronouncement Concerning Employee Privacy Rights

During oral argument today in a closely watched case with potentially, far-reaching implications for private and public employers, the U.S. Supreme Court suggested that its ultimate ruling could be far narrower than anticipated by many. In the case, City of Ontario v. Quon, the Court is reviewing a the Ninth Circuit Court of Appeals’ ruling that the City of Ontario (California) Police Department violated the Fourth Amendment rights of SWAT officer Jeff Quon by reviewing text messages sent and received by Quon using a City-provided pager and messaging service. The Ninth Circuit found that: (a) Quon had a reasonable expectation of privacy in his text messages, and (b) the City violated Quon’s privacy expectation by reviewing his text messages without his knowledge or consent, the two elements of Quon’s Fourth Amendment claim.

While public discussion of the case has revolved principally around the first element of Quon’s claim, i.e., whether Quon reasonably could expect privacy in his text messages, the Supreme Court seemed to focus more heavily on the second element, i.e., whether the City’s review of Quon’s text messages was excessive or unreasonable. During the trial in the case, the jury found that the City’s purpose in searching Quon’s text messages was to determine whether those messages were sent for business or personal reasons. Under persistent questioning from Justices Breyer and Sottomayor, Quon’s counsel struggled to identify a less intrusive means for the City to achieve this indisputably, legitimate purpose than the City’s reading all of Quon’s text messages. The Supreme Court could resolve the case on this initial element of Quon’s claim and not even address whether Quon’s privacy expectation was reasonable.

The Court also appeared skeptical of the Ninth Circuit’s conclusion that Quon reasonably could have expected privacy in his text messages. To reach that conclusion, the Ninth Circuit had relied upon a statement by Lieutenant Duke, the police official responsible for the text messaging program. Duke told Quon that he would not read Quon’s text messages to determine whether they were business-related or personal so long as Quon paid the service provider’s overage charges when Quon exceeded the contractual limit on the number of characters per month. Justices Alito’s and Ginsburg’s questions suggested that they viewed Duke’s statement to be limited to his own actions as opposed to a guarantee of Quon’s privacy against any search by the City. Justices Stevens’ and Kennedy’s questions honed in on the nature of Quon’s SWAT duties, suggesting that Quon could not reasonably expect privacy given that he was on call 24/7 and knew, or should have known, that his text messages might be evidence in criminal proceedings.

Interestingly, Chief Justice Roberts’ questioning suggested that he was somewhat sympathetic to Quon’s contention that he reasonably could expect privacy in his text messages. The Chief Justice noted in his questions that Quon paid the City for his personal text messages, sent at least some of the texts while off-duty, and was told by Duke that he (Duke) would not audit them. The Chief Justice also noted that the Internal Affairs investigators who reviewed the transcripts of Quon’s text messages had redacted the personal ones, suggesting that these investigators considered the personal messages to be private.

In another noteworthy twist, the United States Government, arguing alongside the City, asked the Court to adopt a bright-line rule that employers can defeat the reasonableness of any employee’s expectation of privacy by issuing a policy informing employees that they have no privacy in their communications over employer-provided equipment. The Court did not seem receptive to this position. Justice Sottomayor noted the Court’s well established precedent — O’Connor v. Ortega — holding that “operational realities” of an office are a factor in determining whether an employee had a reasonable expectation of privacy in the workplace and that the employer’s policy is just one factor to consider.

Perhaps most telling of the Court’s likely hesitance to adopt a bright-line rule in either direction were comments by Justice Alito and the Chief Justice. Justice Alito emphasized the newness of the communications technology in the following statement:

[E]lectronic communications are stored all over the place in – and there isn't a history — these are — these are relatively new. There isn't a well-established understanding about what is private and what isn't private. It's a little different from putting garbage out in front of your house, which has happened for along time.

The Chief Justice emphasized the evolving nature of communications technology in response to the federal government’s advocacy of a bright-line rule, stating, “We are dealing with [the Fourth] [A]mendment that looks to whether something is reasonable. And I think it might be the better course to say that the Constitution applies, but we are going to be more flexible in determining what is reasonable because we are dealing with evolving technology.” (emphasis supplied).

A ruling will be issued by the end of the Court's term in June 2010.

This entry was written by Philip L. Gordon.

Supreme Court Review of Quon May Provide Important Guidance for Private Employers

The U.S. Supreme Court agreed, today, to review the Ninth Circuit Court of Appeal’s decision in Quon v. Arch Wireless, a case with potentially important implications for private employers. As explained in prior posts, the appellate court held that the City of Ontario Police Department violated a SWAT officer’s reasonable expectation of privacy by reviewing the content of his sexually explicit text messages, even though: (1) the messages had been sent with a Department-issued pager through a service provider under contract with the Department, and (2) the Department’s formal policy informed all SWAT officers that the Department might review their text messages. In reaching that conclusion, the Ninth Circuit relied principally on a statement by the officer in charge of the text messaging program to the SWAT officer that the Department would not review his text messages if he voluntarily paid any overage charges resulting from excessive personal use.

Although there are some differences in the privacy standards applicable to public sector and private employers, the standards are sufficiently similar that the Supreme Court’s decision likely will provide important guidance for employers on at least three issues. First, the law is relatively well settled that private employers can review any communications stored on a corporate e-mail server when the employer notifies employees of the monitoring, typically through an electronic resources policy. Quon is one of the first cases to address whether the same rule applies when the employee’s communication is transmitted through a third-party service provider under contract with the employer. The issue has gained increasing importance as an increasingly large number of employees use text messaging during the work day. (A case currently under consideration by the New Jersey Supreme Court, Stengart v. Loving Care, addresses an employee’s privacy expectations in copies of e-mail stored on a company-issued laptop that were sent through the employee’s personal e-mail account to her attorney.)

Second, the Supreme Court’s decision likely will address how a formal employment policy that otherwise would defeat an employee’s privacy expectation could be countermanded by an informal representation to a specific employee. Here, private employers likely will receive guidance on the types of informal statements that could be sufficient to countermand a formal policy as well as the degree of authority of the person making the informal statement necessary to override the formal policy.

Third, the Supreme Court also granted review on the question whether the senders of text messages to the SWAT officer had a reasonable expectation that his government employer would not read them. This question raises an issue that often is overlooked in cases revolving around an employer’s review of employee e-mail, i.e., the privacy interests of the sender. Without further development, it is difficult to anticipate the extent to which the Supreme Court’s ruling on this issue might affect private employers and what that affect might be.

Notably, the Supreme Court denied the service provider’s request for review of the Ninth Circuit’s ruling that the provider violated the federal Stored Communications Act by disclosing the SWAT officer’s text messages to the Department without his consent. Under the Act, a communications service provider, such as an ISP or cell phone provider, generally cannot disclose stored communications without the sender’s or recipient’s consent. An exception permits disclosure to the subscriber — the Department in the Quon case — when the provider is a “remote computing service.” The Ninth Circuit ruled that a “remote computing service” is akin to an electronic filing cabinet. Because the provider in the Quon case was a facilitator of communications, it was not a “remote computing service” and, therefore, could not take advantage of the exception. With the growing prevalence of “cloud computing” services, the proper definition of a “remote computing service” has become increasingly important. The Supreme Court’s decision to forego review of this issue leaves the Ninth Circuit’s ruling on this issue intact.

At bottom, Quon reflects the dynamic nature of the law governing technology in the workplace as communications technology rapidly moves beyond e-mail, and societal expectations change.

This entry was written by Philip L. Gordon

Photo credit: Niklas Bildhauer

Who Said Employees Have No Right To Privacy In Their Corporate E-Mail And Internet Access?

“You have no right to privacy in your e-mail using corporate resources”
“The Company reserves the right to monitor your Internet access at any time”
So chimes policy after policy after policy. But, is the mantra really true?

Several recent cases suggest that answer is “not always.” In United States v. Long, the highest military court (not exactly a known bastion of privacy protection), recently held that a Marine Corps investigator violated a soldier’s privacy rights by obtaining inculpatory e-mail from the system administrator. The Department of Defense had an e-mail policy that was as draconian as any private employer’s, but the policy said nothing about turning over e-mail to criminal investigators, and the system administrator admitted that he did not read individual e-mails when monitoring the system because he felt they were private. Sound familiar?

At the start of 2007, the Ninth Circuit Court of Appeals in United States v. Ziegler held that an employee caught viewing child porn on his work computer had a reasonable expectation of privacy in the computer because it was stationed in his locked office. The court stated more generally, “in the private employer context, employees retain at least some expectation of privacy in their office,” which, for most employees in today’s working world includes a computer with stored e-mail.

In yet another example, a federal district court in California held that a police officer had a reasonable expectation of privacy in salacious text messages exchanged with his girlfriend using a department-issued pager. In that case, Quon v. Arch Wireless Operating Co., the fact that the department had a written policy singing the same song as most electronic resources policies was irrelevant since the department had communicated an unwritten policy of not auditing the text messages except when an officer disputed charges for overages.

Perhaps judges are starting to worry about the privacy of their own e-mail? Perhaps it is time to revisit and revise your electronic resources policy?