Keeton v. Hustler Magazine, Inc.

Background

Kathy Keeton, a New York resident who helped produce a national magazine, sued Hustler Magazine, an out-of-state publisher, for libel based on five issues published between 1975 and 1976. Keeton’s only connection to New Hampshire was that Hustler regularly sold about 10,000–15,000 copies there each month. Earlier efforts in other States failed because of time limits, and New Hampshire was the only State where her claim was not barred when she filed.

Reasoning

The lower courts dismissed the case for lack of jurisdiction, saying New Hampshire’s interest was too small to require Hustler to defend a nationwide claim there. The Supreme Court reversed, holding that regular, deliberate magazine sales in a State create enough ties — or “minimum contacts” — to make it fair to require the publisher to defend a libel suit in that State. The Court said New Hampshire’s long six-year time limit and the “single publication rule” (which allows one suit to seek damages for harm everywhere) do not by themselves stop a State from asserting jurisdiction. The Court emphasized that questions about which State’s laws apply to out-of-state damages are separate and will be decided later in the case.

Real world impact

This ruling means companies that sell many copies of a national publication in a State can be sued there for what they print. Plaintiffs may bring one lawsuit in a State where the publisher has regular sales and seek nationwide damages; whether those damages are awarded depends on later legal fights over choice of law and the merits. Publishers must therefore expect to defend multistate libel suits where they deliberately market their magazines.

Dissents or concurrances

Justice Brennan agreed with the result in a concurrence, stressing that Hustler’s sales in New Hampshire were sufficient to allow the suit to proceed.