Libel Suits Against American Media in Foreign Courts Kathleen A

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Libel Suits Against American Media in Foreign Courts Kathleen A Penn State International Law Review Volume 9 Article 7 Number 1 Dickinson Journal of International Law 1991 Libel Suits Against American Media in Foreign Courts Kathleen A. O'Connell Follow this and additional works at: http://elibrary.law.psu.edu/psilr Part of the International Law Commons Recommended Citation O'Connell, Kathleen A. (1991) "Libel Suits Against American Media in Foreign Courts," Penn State International Law Review: Vol. 9: No. 1, Article 7. Available at: http://elibrary.law.psu.edu/psilr/vol9/iss1/7 This Comment is brought to you for free and open access by Penn State Law eLibrary. It has been accepted for inclusion in Penn State International Law Review by an authorized administrator of Penn State Law eLibrary. For more information, please contact [email protected]. Libel Suits Against American Media in Foreign Courts I. Introduction American print and broadcast media have expanded signifi- cantly into international markets during recent decades. This growth has undoubtedly increased profits for American media outlets. It has also allowed American media to acquire even more worldwide re- spect for its news than it has enjoyed in the past. Yet with all these positives, there are bound to be negatives as well. Perhaps one of the most threatening of these is the fact that the expansion into interna- tional markets has exposed American media to libel suits in foreign courts. Since foreign libel law often differs significantly from the United States' media-protective law in this area, exposure to suits elsewhere is a far from desirable result of expansion. Recently, the press has noted a growing trend of libel plaintiffs suing American media in foreign courts.' An American attorney, Le- onard Boudin,2 filed an action against Time in a London court on behalf of former Greek Prime Minister, Andreas Papandreou.' Boudin was repeatedly4 quoted in press statements saying that the suit was not filed in the United States because "the English law of libel is much more favorable than the American law of libel .... The prime minister, as a public figure, would have had a much harder go at it in the United States." F. Lee Bailey, who repre- sented the Prime Minister of the Bahamas, Sir Lynden 0. Pindling, 1. DeBenedictis, Moving Abroad: Libel Plaintiffs Say It's Easier Suing U.S. Media Elsewhere, A.B.A. J., September 1989, at 38 [hereinafter Moving Abroad]; Docker, Plaintiffs Take Libel Suits Abroad To Favorable Laws, The Wall Street Journal, June 6, 1989, at B1, col. 3 [hereinafter Favorable Laws]. The Wall Street Journal article indicated that there were a minimum of four libel suits against American media defendants pending in foreign courts and that actions were pending against The Wall Street Journal in Europe and Asia, stemming respectively from its European and Asia editions. Favorable Laws, supra note 1, at BI, col. 3. 2. Mr: Boudin passed away November 24, 1990. Edward Copeland, Partner, Rabino- witz, Boudin, Standard, Krinsky & Lieberman, New York, New York, was serving as counsel for the case as of the summer of 1990. 3. Papandreou, a Harvard educated scholar and political exile until democracy was re- stored in 1976, was first elected prime minister in 1981, re-elected in 1985, and defeated in June of 1989 in a bid for second re-election. United Press International, September 27, 1989; Reuters, July 28, 1989. Constantine Mitsotakis was Prime Minister of Greece as of the sum- mer of 1990. Chicago Tribune, April 12, 1990, at 16, col. 1. 4. Favorable Laws, supra note 1, at BI, col 3; Moving Abroad, supra note 1, at 38. See also Reuters Library Report, May 8, 1989. 5. Moving Abroad, supra note 1, at 38. 6. Pindling has been Prime Minister of the Bahamas since January, 1967. He has also 148 DICKINSON JOURNAL OF INTERNATIONAL LAW [Vol. 9:1 in Canada against National Broadcasting Company (NBC) echoed Boudin's explanation.7 Still, the fact remains that American media have exposed themselves to this litigation by circulating their publi- cations in foreign markets and allowing their electronic transmissions to be broadcast outside the United States. This Comment will first explore the gradual growth of Ameri- can media into a leading position in foreign markets. English libel law and a current English action, Papandreou v. Time will then be discussed. Next, Canadian libel law and a recent Canadian action, Pindling v. National Broadcasting Company (NBC), will be ex- amined. American libel law will be then described together with two recent suits filed in the United States, Sharon v. Time and Desai v. Hersh. An analysis of how, in each instance, the choice of forum was supported by the plaintiff's goals in filing the suit will lead to the conclusion that both the Papandreou and Pindling suits may have been properly filed in foreign courts, and that it is too early to pinpoint a trend in forum-shopping among libel plaintiffs based solely upon a handful of cases filed in foreign courts against Ameri- can media defendants. II. International Expansion of American Media Great Britain was actually the first nation to become a leader in international communications.8 Rigid control over oceanic cables and information centers staved off competition from other countries until the United States, touting the benefits of the free movement of infor- mation to international business development, infiltrated following World War II. While formal efforts to assure free flow created am- biguous results, the United States ultimately achieved its goal during the years of 1948-68 when its technology leapt ahead of that in the rest of the world, causing American communications instruments to come into world-wide demand and use.10 served as Financial Minister since October, 1984. Facts on File World New Digest, Marsh 23, 1990, at 213. 7. "[T]he suit was brought abroad in part because 'there is no future in it for a public figure [in the U.S.].'" Favorable Laws, supra note 1, at BI, col. 3. 8. Schiller, Free Flow of Information - for Whom? in MASS MEDIA POLICIES IN CHANGING CULTURES 106 (G. Gerbner ed. 1977) [hereinafter Free Flow of Information]. 9. Id. at 106-7. The United States made sure it had the support of the United Nations Educational, Scientific, and Cultural Organization (UNESCO) on the issue of free flow of information. UNESCO, one of the peace-keeping structures established following World War II, id. at 110, created a special division to assure the attainment of this very goal: The Mass Communications Division. Id. at 11. See also A. SbMTH, THE GEOPOLITICS OF INFORMATION: How WESTERN CULTURE DOMINATES THE WORLD, 31-2 (1980). The Mass Communications Division was initially an adamant supporter of free flow of communications, but its support has since faltered with the growing recognition of the need to protect privacy rights. Id. at 113. See also Lowry, Transborder Data Flow: Public and Private International Law Aspects, 6 Hous. J. INT'L L. 159 (1984); H. SCHILLER, INFORMATION AND THE CRISIS ECONOMY (1986). 10. Free Flow of Information, supra note 8, at 112. Winter 1991] LIBEL SUITS The American media have assumed a central role in world-wide activity ever since by shaping the large-market growth of all the forms of mass media. 1 Ironically Great Britain, as the gateway to the British Commonwealth market, served as the major catalyst in the United States' growth into a media power by using American communications products. 2 This connection may have also contrib- uted to English becoming the dominant language of international media."3 In recent years, Asian countries have become recognized tech- nological powers. Still, American media have continued to exert sub- stantial international influence by becoming affiliated with multina- tional corporations and by joining together to form large corporate entities.' 4 The strength of the United States media presence in interna- tional markets is demonstrated by the fact that eighty percent of the television programs broadcast in the Western Hemisphere were pro- duced in the United States.' 5 The COMSAT Act of 1962 provided further means for the United States to gain dominance in interna- tional broadcasting by creating an international partnership in a pri- vate corporation based in the United States for the purpose of profit- ably developing an international space communications system.' 6 American print media are equally influential internationally. American newspapers, magazines and news agencies have served as models for prestige or elite newspatiers around the world. 7 The 11. Tunstall, Media Imperialism? in AMERICAN MEDIA AND MASS CULTURE: LEFT PER- SPECTIVES 540 (D. Lazere ed. 1987) [hereinafter Media Imperialism]. "By 1970, the interna- tional strength of America advertising agencies had succeeded Hollywood as the single most remarkable aspect of American media presence." Tunstall, The American Role in Worldwide Mass Communication in MASS MEDIA POLICIES IN CHANGING CULTURES 8 (G. Gerbner ed. 1977) [hereinafter The American Role in Worldwide Mass Communication]. See also, W. READ, AMERICA'S MASS MEDIA MERCHANTS 96-143 (1976). 12. The American Role in Worldwide Mass Communication, supra note 11, at 9. 13. Id. 14. B. BAGDIKIAN, THE MEDIA MONOPOLY (1983). See also, B. COMPAINE (ed.), WHO OWNS MEDIA?: CONCENTRATION OF OWNERSHIP IN THE MASS COMMUNICATIONS INDUSTRY (1979). 15. Media Imperialism, supra note 11, at 541 quoting A. WELLS, PICTURE TUBE IMPE- RIALISM: THE IMPACT OF U.S. TELEVISION ON LATIN AMERICA, 121 (1972). "The countries that are strongly regional exporters of media tend themselves to be unusually heavy importers of American media." Id. at 550. 16. Other nations have complained that the United States has been too dominant in this partnership. Riegel, Satellite Communications and National Power in MASS MEDIA POLICIES IN CHANGING CULTURES 66-7 (G.
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