The Virginia Supreme Court on Thursday overturned a judge’s decision to force California-based website Yelp to turn over the names of users who wrote negative reviews of a Virginia carpet cleaning business.
The ruling did not determine whether Yelp has a First Amendment right to keep reviewers’ identities secret in the closely watched suit against Alexandria-based Hadeed Carpet Cleaning Inc. Instead, the justices ruled that the state courts lack jurisdiction over Yelp’s user information stored in California.
“The information sought by Hadeed is stored by Yelp in the usual course of its business on administrative databases within the custody or control of only specified Yelp employees located in San Francisco, and thus, beyond the reach of the circuit court,” Justice Elizabeth A. McClanahan wrote in the 16-page majority opinion.
Hadeed’s attorney, Raighne Delaney, told The Washington Times that the latest ruling was a significant blow to small businesses in the state.
“The decision is a loss for Virginia small businesses. Unless the General Assembly changes the law, Virginia small businesses will have to fight these unmasking battles with Yelp in California,” Mr. Delaney said.
The carpet cleaning company filed the defamation suit in 2012 against seven people who posted anonymous negative reviews of its services on Yelp.
Hadeed said that a search of its customer database showed the reviewers were not real customers and the reviews were false.
Alexandria Circuit Judge Lisa B. Kemler held Yelp in contempt when the company refused to turn over information on the seven reviewers. The Virginia Court of Appeals upheld the judge’s decision that Hadeed’s right to protect its reputation was equal to Yelp reviewers’ free-speech rights.
• Kellan Howell can be reached at khowell@washingtontimes.com.
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