Backpagecom LLC v Dart

8/17/2019 Backpagecom LLC v Dart

1/59

{\rtf1 \ansi{\colortbl;\red0\green0\blue0;\red255\green255\blue255;\red255\green0\blue0;\red0\green255\blue0;\red0\green0\blue255;\red0\green255\blue255;\red255\green0\blue255;\red255\green255\blue0;\red0\green0\blue128;\red0\green128\blue128;\red0\green128\blue0;\red128\green0\blue128;\red128\green0\blue0;\red128\green128\blue0;\red128\green128\blue128;\red192\green192\blue192;\red170\green170\blue170;\red85\green85\blue85;\red37\green37\blue37;\red119\green119\blue119;\red254\green254\blue0;\red20\green93\blue164;

\red105\green105\blue105;\red190\green190\blue252;\red247\green247\blue247;\red203\green203\blue203;\red127\green127\blue127;\red245\green245\blue245;\red71\green120\blue194;\red223\green223\blue223;\red239\green239\blue239;\red204\green204\blue204;\red236\green236\blue236;\red187\green187\blue187;\red227\green227\blue227;

\red255\green194\blue211;\red229\green243\blue255;\red179\green218\blue255;\red243\green243\blue243;\red102\green102\blue102;\red183\green242\blue206;\red153\green255\blue102;\red238\green238\blue238;\red182\green231\blue243;\red255\green255\blue204;\red255\green204\blue0;\red255\green255\blue102;\red255\green255\blue174;

\red204\green255\blue255;\red245\green147\blue0;}{\fonttbl {\f0 Arial;}{\f1 Symbol;}{\f2 Times New Roman;}{\f3 georgia;}{\f4 sans-serif;}{\f5 serif;}


2/59

}{\*\generator Apache XML Graphics RTF Library;}\fet0 \ftnbj \paperw12240 \paperh15840 \margt1080 \margb1080 \margl1080 \margr1080 \headery720 \footery720 \itap0 \cols2\sectd {\header {{\trowd \ltrrow \trleft0\clpadb60 \clpadfb3 \clpadl400 \clpadfl3 \clbrdrt \clbrdrb \brdrw20 \brdrcf17 \brdrs \clbrdrl \trql \clvertalb \clwWidth9380 \cellx9380\clpadb60 \clpadfb3 \clpadl400 \clpadfl3 \clbrdrt \clbrdrb \brdrw20 \brdrcf17 \brdrs \clbrdrr \trql \clwWidth700 \cellx10080\intbl{\li0 \f0 \b0 \ql \ri0 \fs18 \cf1 \i0{\f0 \strike0 \ul0 \b0 \fs18 \cf1 \i0}{\f0 \b1 \fs18 \cf18 \i0{\f0 \strike0 \ul0 \b1 \sa0 \sb0 \fs18 \cf18 \i0Backpage.com, LLC v. Dart, --- F.Supp.3d ---- (2015)}}{\f0 \strike0 \ul0 \b0 \fs18 \cf1 \i0}}\f0 \li0 \strike0 \ul0 \b0 \sa0 \ql \sb0 \fs18 \ri0 \cf1 \i0 \intbl \cell \intbl{\li0 \f0 \b0 \ri0 \fs18 \cf1 \qr \i0

}\f0 \li0 \b0 \fs18 \ri0 \cf1 \i0 \qr \intbl \cell \row }{\trowd \lastrow \trleft0\clbrdrb \clbrdrl \trql \clwWidth10080 \cellx10080\intbl{\li0 \f0 \b0 \ql \ri0 \fs18 \cf1 \i0}\f0 \li0 \b0 \ql \fs18 \ri0 \cf1 \i0 \intbl \cell \row }}\par }{\footer {{\trowd \lastrow \trleft0\clpadl60 \clpadfl3 \clbrdrt \brdrw20 \brdrcf17 \brdrs \clbrdrb \clbrdrl \trql \clvertalb \clwWidth9300 \cellx9300\clpadl60 \clpadfl3 \clbrdrt \brdrw20 \brdrcf17 \brdrs \clbrdrb \clbrdrr \trql \clwWidth700 \cellx10000\intbl{\li0 \f0 \b0 \ql \ri0 \fs20 \cf17 \i0

{\f0 \strike0 \ul0 \b0 \fs20 \cf17 \i0}{\*\shppict {\pict \pngblip \picw78 \pich10 \picwgoal1170 \pichgoal150 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


3/59

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}}{\f0 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf17 \i0

\u169\'3f 2015 Thomson Reuters. No claim to original U.S. Government Works.}

}\f0 \li0 \strike0 \ul0 \b0 \sa0 \ql \sb0 \fs20 \ri0 \cf17 \i0 \intbl \cell \intbl{\li0 \f0 \b0 \ri0 \fs20 \cf17 \qr \i0{\b0 \i0 \ul0 \fs20 \f0 \chpgn }}\f0 \li0 \strike0 \ul0 \b0 \fs20 \ri0 \cf17 \i0 \qr \intbl \cell \row }}\par }{\li0 \f2 \par}\sect\sbknone\pgncont\cols2{\ids0 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_document_1}{\*\bkmkend co_document_1}{\f2 \b0 \fs20 \cf1 \i0{\*\bkmkstart Idab4a1d0521511e5be1ff4cec5913d5d_Target}{\*\bkmkend Idab4a1d0521511e5be1ff4cec5913d5d_Target}\par}{\li0 \f3 \b0 \ri0 \fs20 \cf1 \qc \i0

{\f3 \strike0 \ul0 \b0 \sa0 \sb100 \fs20 \cf1 \i02015 WL 5174008\par}}{\li0 \f3 \b0 \ri0 \fs20 \cf1 \qc \i0{\li0 \f3 \b0 \ri0 \fs20 \cf1 \qc \i0{\li0 \f3 \b0 \ri0 \fs20 \cf1 \qc \i0{\f3 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0United States District Court,\par}}

{\f3 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0N.D. Illinois, Eastern Division.\par}}}{\li0 \f3 \b0 \ri0 \fs20 \cf1 \qc \i0}{\li100 \f3 \b0 \ri100 \fs20 \cf19 \qc \i0{\li100 \f3 \b0 \ri100 \fs20 \cf19 \qc \i0


4/59

{\li100 \f3 \b0 \ri100 \fs20 \cf19 \qc \i0{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Search/Results.html?query=advanced%3a+OAID(5037848546)&saveJuris=False&contentType=BUSINESS-INVESTIGATOR&startIndex=1&contextData=(sc.Default)&categoryPageUrl=Home%2fCompanyInvestigator&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem" }{\fldrslt{\f3 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0Backpage.com, LLC}}}{\f3 \strike0 \ul0 \b0 \sa0 \sb200 \fs20 \cf19 \i0, Plaintiff,\par}}{\li100 \f3 \b0 \ri100 \fs20 \cf19 \qc \i0{\f3 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf19 \i0v.\par}}{\li100 \f3 \b0 \ri100 \fs20 \cf19 \qc \i0{\f3 \strike0 \ul0 \b0 \sa200 \sb0 \fs20 \cf19 \i0Sheriff Thomas J. Dart, Defendant.\par

}}}}{\li0 \f2 \b0 \ri0 \fs20 \cf1 \qc \i0{\f2 \b0 \fs20 \cf1 \i0{\f3 \b0 \fs20 \cf1 \i0{\f3 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0No. 15 C 06340}}}{\f3 \b0 \fs20 \cf1 \i0

{\f3 \b0 \fs20 \cf1 \i0{\f3 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0|

}}{\f3 \b0 \fs20 \cf1 \i0{\f3 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0August 24, 2015}}{\f3 \b0 \fs20 \cf1 \i0{\f3 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

|

}}{\f3 \b0 \fs20 \cf1 \i0{\f3 \strike0 \ul0 \b0 \sa200 \sb0 \fs20 \cf1 \i0September 2, 2015\par}}}}


5/59

{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b1 \ri0 \fs20 \cf19 \i0{\*\bkmkstart co_opinion_1}{\*\bkmkend co_opinion_1}\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb3f9582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb3f9582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ri0 \fs20 \cf1 \qc \i0{\f2 \b1 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b1 \sa200 \sb600 \fs20 \cf1 \i0MEMORANDUM OPINION AND ORDER\par}}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0178321201&originatingDoc=Idab4a1d0521511e5be1ff4cec5

913d5d&refType=RQ&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)" }{\fldrslt{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0John J. Tharp, Jr.}}}\sa200\sb200{\f2 \strike0 \ul0 \b0 \sa200 \sb200 \fs20 \cf1 \i0, United States District Judge\par}}}

{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \fs20 \cf1 \i0}{\f2 \b1 \fs20 \cf1 \i0{\*\bkmkstart co_pp_sp_999_1_1}{\*\bkmkend co_pp_sp_999_1_1}{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i0*1}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

In its order of August 21, 2015, the Court denied plaintiff Backpage.com\rquote s motion for a preliminary injunction and allowed the temporary restraining ord

er to expire, absent any agreement between the parties to voluntarily extend it. This opinion summarizes the Court\rquote s preliminary factual findings and its reasons for the ruling.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par


6/59

}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb3fa582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb3fa582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ql \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b1 \sa0 \sb200 \fs20 \cf1 \i0I. BACKGROUND\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Backpage.com (\u8220\'3fBackpage\u8221\'3f), which operates a website devoted to online classified advertising, seeks an injunction against Cook County SheriffThomas Dart requiring him to notify credit card companies Visa and MasterCard of any ruling by this Court that it was likely unlawful for him to exhort them ina June 29 letter and follow-up communications thereafter to \u8220\'3fcease anddesist\u8221\'3f allowing their cards to be used to process payments to Backpage. (Backpage no longer asks for a mandatory injunction requiring Dart to \u8220\'3fretract\u8221\'3f the letters.)\par

}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Last month, this Court entered a temporary restraining order prohibiting Sherriff Dart from further efforts to persuade others to \u8220\'3fdefund\u8221\'3f Backpage, pending an evidentiary hearing on Backpage\rquote s claim that Dart\rquot

e s actions violated the First Amendment. The Court ruled that Backpage was entitled to a TRO because it had a better than negligible chance of prevailing on its claim based on the record at the time. In particular, the Court concluded that Backpage might be able to demonstrate that Sheriff Dart\rquote s letter constituted the kind of informal prior restraint that the Supreme Court prohibited in}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1963125299&pubNum=0000780&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Bantam Books, Inc. v. Sullivan,

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

372 U.S. 58 (1963)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. In that seminal case, the Court enjoined the Rhode Island Commission to Encourage Morality in Youth from its}{\f2 \b0 \fs20 \cf1 \i1


7/59

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1de facto}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

censorship campaign of sending threatening letters to distributors of books itdeemed obscene, followed up with visits from police officers. Rejecting the argument that the Commission, which lacked any direct investigative or prosecutorial authority, was simply \u8220\'3fexhorting booksellers and advis[ing] them of their legal rights,\u8221\'3f the Court held that the Commission had effected a prior restraint because its \u8220\'3fnotices, phrased virtually as orders, reasonably understood to be such by the distributor, invariably followed up by policevisitations, in fact stopped the circulation of the listed publications.\u8221\'3f}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1963125299&pubNum=0000780&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_780_67&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_780_67" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Id}

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0. at 67, 68}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par

}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0At the TRO stage, the Court also rejected Dart\rquote s challenge to Backpage.com\rquote s standing to challenge Dart\rquote s actions vis-\u224\'3f-vis the credit card companies, which, Dart argued, affected the expressive rights of Backpage.com users but not the forum itself. The Court rejected the argument that Backpage.com lacked an injury-in-fact, but it expressly reserved for further consideration the questions whether Dart\rquote s actions, rather than the credit cardcompanies\rquote voluntary decision to dissociate themselves from the content published by Backpage, caused that injury and whether injunctive relief could redress Backpage.com\rquote s alleged injuries.

\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0


8/59

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Since the TRO issued, the parties have engaged in expedited discovery, including a limited number of depositions permitted by the Court. The parties submitted further briefs, and the Court held an evidentiary hearing on August 20, 2015, atwhich the parties presented additional documentary evidence and testimony through live witnesses and declarations.}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

Based on the evidence of record, the Court preliminarily finds the facts as set forth below.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb3fb582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb3fb582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ql \ri0 \fs20 \cf1 \i0

{\f2 \strike0 \ul0 \b1 \sa0 \sb200 \fs20 \cf1 \i0II. FACTS\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \fs20 \cf1 \i0}{\f2 \b1 \fs20 \cf1 \i0{\*\bkmkstart co_pp_sp_999_2_1}{\*\bkmkend co_pp_sp_999_2_1}{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i0*2


Backpage.com\rquote s adult services section overwhelmingly contains advertisements for prostitution, including the prostitution of minors. Backpage uses filters that prevent certain words and phrases from being posted, but many of the advertisements nevertheless clearly solicit payments for sex. Symbols, photographs, and videos depict what words cannot. In over 800 sting operations responding to Backpage ads since 2009, Dart\rquote s officers have made arrests for prostitution, child trafficking, or a related crime 100% of the time. Evidence submittedby Dart from other law enforcement agencies and non-profit anti-trafficking groups, as well as evidence from a lawsuit by a trafficking victim against Backpage, establish that Backpage.com\rquote s adult section is the leading forum for unl

awful sexual commerce on the Internet and that the majority of the advertisements there are for sex.}{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00012037082041_ID0}{\*\bkmkend co_footnoteReference_B00012037082041_ID0}{\field {\*\fldinst HYPERLINK "#co_footnote_B00012037082041_1" }{\fldrslt{\super \f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs16 \cf5 \i01}}}


9/59

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

Backpage maintains that there is legitimate commerce advertised in the adult section, but it has adduced no evidence of what, if any, percentage of ads in theadult section relates to non-criminal \u8220\'3fescort\u8221\'3f or other legal\u8220\'3fadult\u8221\'3f activity.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb3fc582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb3fc582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ri0 \fs20 \cf1 \qc \i0{\f2 \strike0 \ul0 \b1 \sa200 \sb400 \fs20 \cf1 \i0A. Sheriff Dart\rquote s Letters\par}

}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Sheriff Dart has long worked against human trafficking, including prostitution and the sexual exploitation of women and children, in his capacity as Sheriff ofCook County. His efforts comprise law enforcement measures, attempts to curtailonline trafficking through civil legal action,}{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00022037082041_ID0}{\*\bkmkend co_footnoteReference_B00022037082041_ID0}{\field {\*\fldinst HYPERLINK "#co_footnote_B00022037082041_1" }{\fldrslt

{\super \f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs16 \cf5 \i02}}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

assistance programs for trafficking victims, and vocal advocacy on this issue.As part of this initiative, Dart tried in several communications over a period of years to persuade Backpage to take measures to prevent the use of the \u8220\'3fadult\u8221\'3f section of its website for advertisements for prostitution (and the attendant human trafficking and exploitation). Frustrated with what he perceived as Backpage\rquote s lip service to his concerns, and hamstrung from taking legal action by statutory protections for forum websites such as Backpage,}

{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00032037082041_ID0}{\*\bkmkend co_footnoteReference_B00032037082041_ID0}{\field {\*\fldinst HYPERLINK "#co_footnote_B00032037082041_1" }{\fldrslt{\super \f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs16 \cf5 \i03}}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

Dart sought more creative ways to curtail the selling of sex on Backpage.


10/59

\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \fs20 \cf1 \i0}{\f2 \b1 \fs20 \cf1 \i0{\*\bkmkstart co_pp_sp_999_3_1}{\*\bkmkend co_pp_sp_999_3_1}{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i0*3}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

Dart had multiple employees working on trafficking issues in general and Backpage advertising in particular. In early 2015 he hired Stephanie Zugschwert as Assistant General Counsel for Policy and tasked her with working on sex trafficking issues. She reported to Director of Policy Joseph Ryan, who in turn reported to Cara Smith, a direct report of Sheriff Dart. Shortly into her tenure, Zugschwer

t drafted a strategy document entitled \u8220\'3fBackpage.com: Approach Major Financial Institutions.\u8221\'3f The memo is addressed to Dart, Smith, and Ryan,and is dated May 7, 2015.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0The memorandum sets forth a strategy of using the \u8220\'3fNational Day of Johns\u8221\'3f}{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00042037082041_ID0}{\*\bkmkend co_footnoteReference_B00042037082041_ID0}{\field {\*\fldinst HYPERLINK "#co_footnote_B00042037082041_1" }{\fldrslt{\super \f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs16 \cf5 \i04}}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

as a \u8220\'3flaunching pad to exert national pressure on the financial institutions,\u8221\'3f which are identified as \u8220\'3fVisa, MasterCard, American Express, and Discover.\u8221\'3f The memorandum described a media event where the sheriff\rquote s office would partner with other law enforcement agencies to show the financial institutions how Backpage was being used \u8220\'3fas a front for adult and minor prostitution.\u8221\'3f According to Zugschwert, \u8220\'3fThe goal would be to ultimately present this information in a streamlined media digestible form, with our National Day of Johns partners signing on and to release it with the National Day of Johns media effort.\u8221\'3f\par


11/59

}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0The memorandum goes on to provide \u8220\'3fcontext\u8221\'3f for approaching the credit card companies. It notes the \u8220\'3fself-serving concern of financial institutions [about] their own potential liability for allowing suspected illegal transactions to take place\u8221\'3f as well as the concern of \u8220\'3fbanks\u8221\'3f for \u8220\'3ftheir business reputations and that of their investors.\u8221\'3f}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0The memorandum then sets forth in more detail the financial institutions\rquote

\u8220\'3flegal/moral and reputational responsibility\u8221\'3f to disaffiliate with Backpage. It refers to the legal obligations of financial institutions tofile suspicious activity reports if illegal activity is suspected, and concludes that \u8220\'3fbanks\u8221\'3f that knowingly allow illegal transactions \u8220\'3fare susceptible to money laundering prosecutions, reputational damage and/or

hefty fines.\u8221\'3f The document next posits that use of Visa or MasterCardto purchase advertising on Backpage violates the companies\rquote user rules governing illegal activity. Finally, the memorandum collects examples of \u8220\'3fsimilar situations\u8221\'3f in which financial institutions, in some cases inresponse to government pressure, have dissociated themselves from \u8220\'3fhigh-risk\u8221\'3f industries.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par

}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Although Dart did not necessarily read or \u8220\'3fapprove\u8221\'3f every aspect of the memorandum, he did green-light the idea of sending letters to the credit card companies about Backpage, and he signed the two letters that had been appended to the strategy memorandum with only minimal changes (likely made by Smith). Much of the content from the strategy memorandum is reproduced in the letters, including the discussion of the legal duties of \u8220\'3ffinancial institutions\u8221\'3f to report suspicious activity and the citation to the federal money laundering statute. The letters are dated June 29, 2015. One is addressed to the Chief Executive Officer of Visa, Inc. and all of the members of its Board of

Directors, and is cc\rquote d to the CEOs of the top five institutional investors in Visa. The other is addressed to the same personnel at, or affiliated with,MasterCard. The entire text of the otherwise identical letters is reproduced inthe Appendix to this opinion.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f


12/59

\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \fs20 \cf1 \i0}{\f2 \b1 \fs20 \cf1 \i0{\*\bkmkstart co_pp_sp_999_4_1}{\*\bkmkend co_pp_sp_999_4_1}{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i0*4}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

The letters, which were distributed by email attachment, were sent to numerouspersonnel within Visa and MasterCard other than the nominal addressees; for example, lawyers and public relations officers. Despite the letters\rquote closingrequest that each institution respond \u8220\'3fin one week\u8221\'3f with the identity of a person that Dart could work with, the sheriff\rquote s team followed up with various people at Visa and MasterCard almost immediately by email andtelephone. Visa and MasterCard were informed that Dart would hold a press conference on July 1 to announce his campaign of pressure on the credit card companies.\par}

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0American Express did not receive a June 29 letter from Dart because, as the letters to Visa and MasterCard note, it already had terminated the use of American Express credit cards for payments to place ads in Backpage\rquote s \u8220\'3fadult\u8221\'3f section. American Express based its decision on the reputational ha

rm that would inure from being associated with the distasteful and/or illegal content in that portion of the website. It withdrew from Backpage in April 2015, without having received any request or other communications from Dart.}{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00052037082041_ID0}{\*\bkmkend co_footnoteReference_B00052037082041_ID0}{\field {\*\fldinst HYPERLINK "#co_footnote_B00052037082041_1" }{\fldrslt{\super \f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs16 \cf5 \i05}}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

Dart later sent a thank-you letter to American Express.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}}


13/59

{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb3fd582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb3fd582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ri0 \fs20 \cf1 \qc \i0{\f2 \strike0 \ul0 \b1 \sa200 \sb400 \fs20 \cf1 \i0B. Actions by the Credit Card Companies\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Unbeknownst to Dart, MasterCard had already taken steps to disaffiliate with Backpage. Indeed, the record shows that MasterCard had been discussing internally the propriety of authorizing payments using the card for ads in Backpage\rquote s adult services section since at least March of 2015, when it received communications from \u8220\'3fstockholders, law enforcement and lawyers\u8221\'3f prior to its annual shareholders\rquote meeting.}{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00062037082041_ID0}{\*\bkmkend co_footnoteReference_B00062037082041_ID0}{\field {\*\fldinst HYPERLINK "#co_footnote_B00062037082041_1" }{\fldrslt


Def. Hearing Exs. 77, 87. In response to MasterCard\rquote s concerns about complaints from investors and negative media reports about Backpage, Bank Frick, one of Backpage\rquote s Lichtenstein-based acquiring banks,}{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00072037082041_ID0}{\*\bkmkend co_footnoteReference_B00072037082041_ID0}{\field {\*\fldinst HYPERLINK "#co_footnote_B00072037082041_1" }{\fldrslt


decided on June 23, 2015, to terminate its relationship with Backpage, effective July 31, 2015. A communication between a MasterCard \u8220\'3fFranchise Integrity\u8221\'3f executive and the acquiring bank on June 2, 2015, Backpage.com islisted in a summary of \u8220\'3fconcerns,\u8221\'3f with negative press reports attached. In a follow-up discussion on June 10 the same executive states that \u8220\'3fnegative media\u8221\'3f could render association with Backpage.com \u8220\'3fbrand damaging.\u8221\'3f Other communications followed, and a June 23, 2015, email from the same acquiring bank confirms for MasterCard that \u8220\'3ft

he Bank\rquote s management has taken the decision to close down the account for [Backpage]\u8211\'3ffor reason of the concerns that you raised and in a best-practice approach to demonstrate cooperation.\u8221\'3f The email proposed giving\u8220\'3fregular\u8221\'3f notice and terminating effective July 31.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f


14/59


Nevertheless, MasterCard acted more quickly after receiving Dart\rquote s letter. After the letter went out, Cara Smith, Dart\rquote s aide, communicated withpersons in MasterCard\rquote s legal department, and she was informed by middayon June 30 that the acquiring bank had terminated its relationship with Backpage. A MasterCard lawyer told Smith, \u8220\'3fWe were already fairly advanced with an investigation here.\u8221\'3f On July 1 an email from the acquiring bank that had terminated Backpage noted that it was \u8220\'3fhoping that the other acquirers processing [Backpage] will cooperate as adequately and as quickly as well.\u8221\'3f All of the Backpage acquirers for MasterCard did in fact terminate in short order.\par

}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Visa took only a little longer. Dart\rquote s aide Cara Smith emailed Visa Inc.on June 30 to flag the June 29 letter and request \u8220\'3fa brief call.\u8221\'3f Shortly after, Smith informed Visa that Mastercard had elected to terminate

and expressed hope that \u8220\'3fVisa will take similar immediate action.\u8221\'3f Visa informed Dart\rquote s staff that a separate legal entity, Visa Europe, \u8220\'3fowned\u8221\'3f the relationship with Backpage.com, and that all Visa Inc. could do is \u8220\'3fencourage an outcome.\u8221\'3f Visa Inc. promisedto \u8220\'3fencourage Visa Europe to look at [Backpage] and do due diligence and get to the right decision.\u8221\'3f In the meantime, Dart\rquote s office continued to exert pressure for a fast decision\u8212\'3finforming Visa that it was the lone holdout and would be spoken of as such at the fast-approaching July 1press conference and in Dart\rquote s impending press release. Concern that Visa would be the odd-man out at the press conference clearly prompted Visa to expedite its consideration of the issue, and Visa informed Dart\rquote s office on the morning of July 1 that it would issue a statement announcing that it had \u8220\'3ftaken action to stop processing payments for Backpage.com and the merchant\

rquote s acquirers have confirmed that they have suspended acquiring.\u8221\'3f\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0


15/59

{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0MasterCard\rquote s press statement stated that it severed ties with Backpage \u8220\'3fbased on a request from the Cook County Sheriff\rquote s office\u8221\'3f that \u8220\'3fconfirmed\u8221\'3f brand-damaging activities, and Visa publicly explained that it had \u8220\'3freceived allegations from U.S. law enforcement that the merchant backpage.com is linked to child prostitution and human trafficking.\u8221\'3f\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Dart submitted the affidavit of Martin Elliott, Senior Director of Visa USA, Inc., and its Global Head of Brand Protection, stating that \u8220\'3ffollowing\u8221\'3f Sheriff Dart\rquote s letter, members of the Global Risk group, in consultation with the legal department, \u8220\'3fmade the decision to request that Visa Europe, a separate and independent legal entity, contact Backpage.com\rquote

s acquiring banks in order to terminate\u8221\'3f the use of Visa cards on Backpage. According to Elliott, \u8220\'3f[a]t no point did Visa perceive Sheriff Dart to be threatening Visa with prosecution or any other official state action, nor did Visa base its decision on any such threat.\u8221\'3f}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Internal communications at Visa, Inc., on June 30 and July 1, however, make it clear that some individuals inside Visa viewed Dart\rquote s initiative as political posturing and believed some of the communications from his office used \u8220\'3fthreatening language\u8221\'3f or were comparable to \u8220\'3fblackmail.\u8221\'3f\par}

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Dart\rquote s office professes surprise at the speedy response from MasterCard and Visa, maintaining that the expectation had always been, in the words of CaraSmith, that the letters would initiate \u8220\'3fmarathon\u8221\'3f discussionswith the companies, rather than precipitate any immediate action. Yet at least o

ne member of the Sherriff\rquote s communications team, Benjamin Breit, stated in multiple contexts that the sheriff had \u8220\'3fcompelled\u8221\'3f the credit card companies to act. And the sheriff\rquote s own press release was titled \u8220\'3fSheriff Dart\rquote s Demand to Defund Sex Trafficking Compels Visa and MasterCard to Sever Ties with Backpage.com.\u8221\'3f On July 10, Joseph Ryan circulated what he called \u8220\'3fa proposed background for the impact of our successful efforts\u8221\'3f; in that summary, he wrote: \u8220\'3fChoked of itsfinancial lifeline\u8211\'3fand branded by the financial community as untouchable\u8211\'3fBackpage will likely wither.\u8221\'3f\par


16/59

}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb3fe582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb3fe582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ri0 \fs20 \cf1 \qc \i0{\f2 \strike0 \ul0 \b1 \sa200 \sb400 \fs20 \cf1 \i0C. Effects on Backpage\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \fs20 \cf1 \i0}{\f2 \b1 \fs20 \cf1 \i0{\*\bkmkstart co_pp_sp_999_6_1}{\*\bkmkend co_pp_sp_999_6_1}

{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i0*6}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

The evidentiary record with respect to the effects of the companies\rquote withdrawal from Backpage has not been meaningfully augmented since the TRO proceedings. At that point, Backpage\rquote s CEO attested that the company was in immediate financial jeopardy because the primary payment mechanisms of its ad-buyershad been cut off.\par}}

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0In the wake of the companies\rquote decisions, Backpage elected to allow the free posting of ads throughout its website, and it is continuing to do so. It hasalso attempted to mitigate the effects of the credit card companies\rquote decisions by promoting alternative payment methods, including Bitcoin and Backpage \u8220\'3fcredits,\u8221\'3f which can be purchased by mail. Prior to implementat

ion of the TRO, Dart continued efforts to \u8220\'3fdefund\u8221\'3f the adult section by, among other things, contacting the Governor of Texas, the FBI, and the Chief Postal Inspector to request scrutiny of the mail-order purchase of credits through Backpage\rquote s Texas-based post office box. He also contacted American Express to report that its cards could be used to buy credits which then could be used on the adult section. Dart\rquote s department continued to test the use of credit cards to purchase adult ads on Backpage and inform the credit card companies when a transaction succeeded.\par}


17/59

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Backpage did not set forth any evidence about whether any of Visa or MasterCard\rquote s acquiring banks would enter into merchant agreements with Backpage if informed that Dart acted (or likely acted) illegally in sending the letters to Visa and MasterCard. At least one of Backpage\rquote s acquiring banks responded to a letter from Backpage, in which Backpage had set forth its case for why it is a completely legitimate enterprise, by asking Visa Inc. if it could reinstate Backpage or if it was being instructed to terminate Backpage \u8220\'3fdue to compelling evidence.\u8221\'3f At MasterCard, an internal communication dated July2 states that MasterCard should \u8220\'3fhide behind\u8221\'3f the law enforcement referral as to the Backpage termination, in part because MasterCard would not want to be embarrassed if Backpage were to \u8220\'3fengage another acquirer.\u8221\'3f [65]. A July 8 MasterCard email reflects that one of the acquirers had asked if it would be permitted to reinstate Backpage.\par}

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb3ff582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb3ff582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ql \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b1 \sa0 \sb200 \fs20 \cf1 \i0

D. Dart\rquote s proposed clarification\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Dart and his staff testified uniformly that the goal of their campaign was to defund the \u8220\'3fadult\u8221\'3f section of Backpage to curtail human trafficking, although the June 29 letter speaks more generally to desisting from placing ads \u8220\'3fon websites like Backpage.com.\u8221\'3f There is no evidence that Visa or MasterCard considered pulling their cards from the adult section only, as American Express had done.

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0The record contains drafts of letters to MasterCard and Visa from Dart advising

them that he takes no issue with Backpage.com generally and intended only to defund the adult section. In light of the TRO which restricted his communicationswith the credit card companies, however, Dart has not in fact given them noticeof this clarification.\par}}


18/59

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb400582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb400582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ql \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b1 \sa0 \sb200 \fs20 \cf1 \i0III. DISCUSSION\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0To obtain a preliminary injunction, the moving party must demonstrate that it has no adequate remedy at law, that it will suffer irreparable harm if relief is denied, and that it has some likelihood of success on the merits.}{\f2 \b0 \fs20 \cf1 \i1

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1See}}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2025614390&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_694&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_694" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Ezell v. City of Chicago,}

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0651 F.3d 684, 694 (7th Cir.2011)

}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. \u8220\'3fIf the moving party meets these threshold requirements, the district court weighs the factors against one another, assessing whether the balance ofharms favors the moving party or whether the harm to the nonmoving party or thepublic is sufficiently weighty that the injunction should be denied.\u8221\'3f}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Id

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. \u8220\'3fThese considerations are interdependent: the greater the likelihoodof success on the merits, the less net harm the injunction must prevent in order for preliminary relief.\u8221\'3f\par}}}


19/59

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\*\bkmkstart co_anchor_Idc7eb401582a11e598dc8b09b4f04}{\*\bkmkend co_anchor_Idc7eb401582a11e598dc8b09b4f04}\par{\li0 \f2 \b1 \ri0 \fs20 \cf1 \qc \i0{\f2 \strike0 \ul0 \b1 \sa200 \sb400 \fs20 \cf1 \i0A. Likelihood of Success on the Merits\par}}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \fs20 \cf1 \i0}{\f2 \b1 \fs20 \cf1 \i0{\*\bkmkstart co_pp_sp_999_7_1}{\*\bkmkend co_pp_sp_999_7_1}{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i0*7}

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0The key question remains whether Backpage can establish that Dart\rquote s acti

ons amount to informal censorship in violation of the}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Bantam Books}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

line of cases. The answer turns primarily on the issue of whether Dart can be said to have implicitly threatened the credit card with official action if they d

id not terminate their relationships with Backpage, and if so, whether the threat caused the intended result.}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1See}}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1963125299&pubNum=0000780&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_780_67&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_780_67" }{\fldrslt

{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Bantam Books,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

372 U.S. at 67}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

(explaining that Commission\rquote s actions were unconstitutional because it \


20/59

u8220\'3fdeliberately set about to achieve the suppression of publications deemed \u8216\'3fobjectionable\u8217\'3f}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1and succeeded in its aim}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0.\u8221\'3f), 68 (further reasoning that the Commission \u8220\'3fdirectly and designedly stopped the circulation of publications in many parts of Rhode Island\u8221\'3f because the distributor\rquote s \u8220\'3fcompliance with the Commission\rquote s directives was}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1not voluntary}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0.\u8221\'3f) (emphasis supplied in both quotes). Under the direct holding of}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1

Bantam Books,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

an informal prior restraint is established where threatening government actioncauses a restraint on speech. But, the Court was careful to note, its ruling does not require law enforcement officials to \u8220\'3frenounce all informal contacts with persons suspected of violating valid laws prohibiting obscenity.\u8221\'3f}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1963125299&pubNum=0000780&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_780_71&originationContext=document&vr=3.0&rs=cb

lt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_780_71" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Id}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0. at 71\u8211\'3f72}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0.\par

}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0


21/59

Subsequent cases have heeded this admonition and reaffirmed that government officials, including law enforcement officials, retain their own First Amendment rights to speak on matters of public concern. They may permissibly advocate for particular results, criticize conduct, and even threaten others with public embarrassment.}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1See}}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2002070815&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_1125&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_1125" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1American Family Ass\rquote n, Inc. v. City and County of San Francisco,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

277 F.3d 1114, 1125 (9th Cir.2002)}}}

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0;}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2001466615&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_573&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_573" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1McLaughlin v. Watson,}}

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0271 F.3d 566, 573 (3d Cir.2001)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0;}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1999245091&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_69&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_69" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1

X\u8211\'3fMen Sec., Inc. v. Pataki,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

196 F.3d 56, 69 (2d Cir.1999)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0;}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?fin


22/59

dType=Y&serNum=1991126836&pubNum=0000350&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_350_1016&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_350_1016" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Penthouse Int\rquote l., Ltd. v. Meese,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

939 F.2d 1011, 1016 (D.C.Cir.1991)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0;}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1984125487&pubNum=0000350&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1R.C. Maxwell Co. v. Borough of New Hope,}}

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0735 F.2d 85 (3d Cir.1984)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. They may not, however, make implied or explicit threats of government sanctions that have the effect of chilling protected speech.}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2002070815&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_1125&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_1125" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1American Family Ass\rquote n,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

277 F.3d at 1125}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

(\u8220\'3fpublic officials may criticize practices that they would have no constitutional ability to regulate, so long as there is no actual or threatened imposition of government power or sanction\u8221\'3f);}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?fin

dType=Y&serNum=2001466615&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_573&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_573" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1McLaughlin,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0


23/59

271 F.3d at 573}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

(\u8220\'3fIt is not enough that defendant speaks critically of plaintiff or even that defendant directly urges or influences the third party to take adverse action.}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

Rather, defendant must \u8220\'3fthreaten\u8221\'3f or \u8220\'3fcoerce\u8221\'3f the third party to act\u8221\'3f);}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1991126836&pubNum=0000350&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_350_1015&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_350_1015" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Penthouse Int\rquote l,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

939 F.2d at 1015}}}

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0(\u8220\'3f[T]he Supreme Court has never found a government abridgement of First Amendment rights in the absence of some actual or threatened imposition of governmental power or sanction.\u8221\'3f). The doctrine of prior restraints on speech is implicated only where threats of official action are present.}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1See}}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1963125299&pubNum=0000780&originatingDoc=Idab4a1d0521511e5be1ff4c

ec5913d5d&refType=RP&fi=co_pp_sp_780_72&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_780_72" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Bantam Books,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

372 U.S. at 72}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

(violation stemmed from the censorship effectuated by threats of \u8220\'3fextr

alegal sanctions.\u8221\'3f). In short, attempts to convince must be distinguished from attempts to coerce; the former are perfectly legal.}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2003446179&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_344&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_344" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1


24/59


25/59


Furthermore, Dart\rquote s pre- and post-letter statements are consistent with(though not conclusive proof of) an attempt at official coercion. The strategy memorandum expressly recommended appealing to the credit card companies\rquote interest in avoiding liability and it cannot be credibly argued that the references to the federal money laundering statute and other regulations defining duties of financial institutions were not intended to suggest that the companies could face civil or criminal liability for facilitating payments for unlawful ads placed on Backpage.com (even if Dart\rquote s department itself could not take direct action). And after the letters were sent, Dart\rquote s office was happy to take credit for \u8220\'3fcompelling\u8221\'3f the companies\rquote actions. Dart referred to his letter not as a \u8220\'3frequest\u8221\'3f but as a \u8220\'3fdemand.\u8221\'3f A \u8220\'3fdemand\u8221\'3f is consistent with his role as sheriff, but not \u8220\'3fa father and a caring citizen.\u8221\'3f Finally, theurgency of the sheriff\rquote s department\rquote s follow-up communications imposed another layer of coercion due to its strong suggestion that the companies could not simply ignore Dart.}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Dart\rquote s letter asked for a response within \u8220\'3fone week,\u8221\'3f and then only to identity a contact person, but within hours of sending the letter multiple staff members were hounding personnel within each company about terminating their relationships with Backpage.com.

\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0To the extent that the letter could reasonably be found to be a \u8220\'3fthreat,\u8221\'3f however, it does not clear the threshold with much room to spare. Th

at a jury}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1could}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

find Dart\rquote s letters to contain a threat of official action does not mean that a jury}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1

would}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

make such a finding. Backpage may prevail on this issue, but there is ample reason for doubt. Compared to the language of the threats, often coupled with police action, in}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1


26/59

Bantam Books}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

itself and other cases where an informal prior restraint was found, Dart\rquote s oblique, footnoted, references to irrelevant statutes and clunky statements about legal duties seem unlikely to inspire fear of legal reprisals\u8211\'3fparticularly on the part of large, sophisticated corporations with immediate accessto top-tier legal resources and advice. On the spectrum between \u8220\'3fattempts to convince\u8221\'3f and \u8220\'3fattempts to coerce,\u8221\'3f the letterfalls, in the Court\rquote s view, much closer to the former. Yet, even if Dart\rquote s actions pale in comparison to those described in cases where a prior restraint was found, at this stage the Court cannot hold as a matter of law that the letter, and subsequent aggressive follow-up communications, were}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1not}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

threatening.\par}

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0But a threat alone is not a prior restraint. Under}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1

Bantam Books}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

and its progeny, the threat must cause the intended result of censoring certain speech based on its content. As Backpage\rquote s counsel conceded at the hearing, the threat must produce some \u8220\'3fconsequence.\u8221\'3f And here is where Backpage\rquote s view and Court\rquote s part ways. Backpage contends thatthe requisite causal connection is established because Dart\rquote s letter caused the credit card companies to act. And while the Court does not quarrel with the premise that}{\f2 \b1 \fs20 \cf1 \i0

{\f2 \b1 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i1the letter}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

precipitated the companies\rquote actions\u8211\'3fthe Court has made the preliminary finding, consistent with the evidence, that the companies responded to Dart\rquote s letter\u8211\'3fit is far from clear that any


27/59

}{\f2 \b1 \fs20 \cf1 \i0{\f2 \b1 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i1threat}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

the letter may have contained caused the companies\rquote action. Recall thatDart is permitted, and indeed, constitutionally entitled, to speak out on matters of public concern such as the online trafficking of women and children on Backpage.com. If his use of the bully pulpit to educate and even shame the companies persuaded them to act, then there has been no prior restraint of speech by thegovernment. And there is plenty of evidence to suggest that this is what occurred. For example, the companies\rquote public statements attested to their desire not to be associated with illegal transactions. Internal communications likewise reflect that the terminations are attributable to the illegal or \u8220\'3fbrand damaging\u8221\'3f activity present in the adult section of Backpage.com. Visa\rquote s affidavit states that it was not influenced by any threat.}{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00082037082041_ID0}{\*\bkmkend co_footnoteReference_B00082037082041_ID0}

{\field {\*\fldinst HYPERLINK "#co_footnote_B00082037082041_1" }{\fldrslt{\super \f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs16 \cf5 \i08}}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

And Mastercard had reason to terminate to Backpage before hearing anything from Dart because of its concerns about negative media attention; its acquirer merely advanced the termination date. Indeed, American Express needed no communication from Dart to abandon Backpage; this makes it even more plausible that for business reasons Visa and MasterCard simply did not want to be associated online sex trafficking.\par

}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \fs20 \cf1 \i0}{\f2 \b1 \fs20 \cf1 \i0{\*\bkmkstart co_pp_sp_999_9_1}{\*\bkmkend co_pp_sp_999_9_1}

{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i0*9}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

Backpage insists, however, that it would be irrelevant if the credit card companies had acted \u8220\'3fpurely voluntarily.\u8221\'3f}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Backpage urges the Court to focus only on Dart\rquote s actions, not their effec


28/59

t on the credit card companies; according to Backpage, if there was a threat, then it does not matter whether the companies\rquote actions were caused by the threats or by permissible advocacy or indeed by their own independent business considerations. But this is not consistent with the governing authorities. The involuntary nature of the third parties\rquote actions\u8211\'3f}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1i.e.,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

action caused by a threat\u8211\'3fhas been deemed relevant in prior}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Bantam Books}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

cases, including the seminal case itself. All of the cases cited by Backpage involved third parties\rquote decisions to stop selling materials deemed obsceneby some government official or body without any prior due process or judicial decision, and in each case, the voluntariness of the third parties\rquote decisio

ns was considered. In}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Bantam Books,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

the Supreme Court rejected the argument of Rhode Island\rquote s Commission toEncourage Morality in Youth that it \u8220\'3fsimply exhorts booksellers and advises them of their legal rights,\u8221\'3f in part because it was found as a fact\u8211\'3fa finding the Court expressly noted that it was bound by\u8211\'3fthat the distributor\rquote s \u8220\'3fcompliance with the Commission\rquote s dir

ectives was not voluntary,\u8221\'3f in keeping with the \u8220\'3fgeneral rule\u8221\'3f that \u8220\'3f[p]eople do not lightly disregard public officers\rquote thinly veiled threats to institute criminal proceedings against them if theydo not come around.\u8221\'3f}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1963125299&pubNum=0000780&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_780_68&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_780_68" }{\fldrslt{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0372 U.S. at 68}}}

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. Deeming it to have been \u8220\'3fparticularly relevant,\u8221\'3f}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1963125299&pubNum=0000780&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_780_63&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_780_63" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1


29/59

id}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0. at 63}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0, the Court highlighted and relied upon the factual finding that the book distributor was compelled by the Commission\rquote s threat to involuntarily comply with its directive; Backpage\rquote s insistence that the Court\rquote s focus onthis fact was merely an idle \u8220\'3freference\u8221\'3f is not persuasive.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0The relevance of coercive effect as set forth in}

{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Bantam Books}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

was highlighted in another case Backpage.com relies upon,}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1980100338&pubNum=0000350&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_350_1360&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_350_1360" }{\fldrslt

{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Penthouse Int\rquote l, Ltd. v. McAuliffe,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

610 F.2d 1353, 1360 (5th Cir.1980)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0, in which the court noted: \u8220\'3fThe Supreme Court found that even though the distributors would violate no law if they refused to cooperate with the Commission, compliance with the directives was Not voluntary.\u8221\'3f In}

{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1McAuliffe,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

the Fifth Circuit similarly concluded that \u8220\'3f[i]t cannot be said that the retailers of the magazines in question \u8216\'3fvoluntarily\u8217\'3f removed the magazines from their shelves\u8221\'3f because it resulted directly from a \u8220\'3fcalculated scheme of warrantless arrests and harassing visits to reta


30/59

ilers.\u8221\'3f}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1980100338&pubNum=0000350&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_350_1360&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_350_1360" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Id.}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

at 1360}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. Likewise, the courts in}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1984122979&pubNum=0000345&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_345_422&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_345_422" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1ACLU v. City of Pittsburgh,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

586 F.Supp. 417, 422 (W.D.Penn.1984)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

and}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1986135981&pubNum=0000345&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&originationContext=document&vr=3.0&rs=cblt1.0&transitionTyp

e=DocumentItem&contextData=(sc.AlertsClip)" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Playboy Enterprises Inc. v. Meese,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

639 F.Supp. 581 (D.D.C.1986)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0, examined the voluntariness of third parties\rquote decisions to take First\u8211\'3fAmendment\u8211\'3fprotected materials out of circulation. In the first of these cases, the court relied on the plaintiff\rquote s proof by a preponderan

ce of the evidence \u8220\'3fthat the distribution of a publication, which has not been judicially determined to be obscene, has been deterred by the Mayor\rquote s official pronouncements,\u8221\'3f specifically noting that \u8220\'3fthe vendors\rquote compliance with Mayor Caliguiri\rquote s directives in this casewas not voluntary.\u8221\'3f 639 F.Supp. at 422. In the}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Playboy}


31/59


case, the court also considered the issue of voluntariness when it noted the fact that \u8220\'3fmany of the decisions not to sell were made after [the defendant\rquote s] letters were sent out\u8221\'3f in rejecting the argument that distributors voluntarily stopped selling the magazine.}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1986135981&pubNum=0000345&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_345_585&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_345_585" }{\fldrslt{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0639 F.Supp. at 585}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par

}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0The Second Circuit cases that Backpage cites also support the view that only action involuntarily taken in response to a threat of official action would show aprior restraint.}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

In}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1983121778&pubNum=0000350&originatingDoc=Idab4a1d0521511e5be1ff4c

ec5913d5d&refType=RP&fi=co_pp_sp_350_39&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_350_39" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Hammerhead Enterprises, Inc. v. Brezenoff,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

707 F.2d 33, 39 (2d Cir.1983)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0, which involved a campaign to stop retailers from selling an offensive board ga

me, the court held that the challenged communication was not part of \u8220\'3fan informal system of censorship\u8221\'3f because it did not refer to \u8220\'3fadverse consequences that might be suffered\u8221\'3f; because the agency lacked authority to impose sanctions; and because \u8220\'3fnot a single store was influenced.\u8221\'3f The reasoning supports the view that a threat (a reference to \u8220\'3fadverse consequences\u8221\'3f) that in fact influences conduct is required. In}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=1991073139&pubNum=0000350&originatingDoc=Idab4a1d0521511e5be1ff4c


32/59

ec5913d5d&refType=RP&fi=co_pp_sp_350_210&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_350_210" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Rattner v. Netburn,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

930 F.2d 204, 210 (2d Cir.1991)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0, the Court reversed the district court\rquote s finding that the challenged communication was not threatening or coercive because, in contrast to}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Hammerhead,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

\u8220\'3fa threat was perceived and its impact was demonstrable.\u8221\'3f Again, therefore, the Court reasoned that a prior restraint is shown where there is a threat (there, a letter from a village trustee to a Chamber of Commerce publi

cation criticizing an advertisement and intimating that the member businesses might be boycotted as a result) that caused the limitation of speech (the Chamberdiscontinued its newspaper). Backpage also cites}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Okwedy,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

but that case does not support the argument that voluntariness is irrelevant; indeed the opinion does not address the question of causation other than to recite the fact that the government official\rquote s letter caused the billboard own

er to remove the signs to which the official objected.}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2003446179&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_340&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_340" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1See}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

333 F.3d at 340}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f


33/59


Although addressing different factual contexts, Seventh Circuit case law also supports the view that there is no prior restraint unless a threat causes involuntary action.}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2019643444&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Fairley v. Andrews,


578 F.3d 518 (7th Cir.2009)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

defines a prior restraint as \u8220\'3fthreatening penalties for future speech.\u8221\'3f}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2019643444&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_525&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_525"

}{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Id}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0. at 525}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. In order to actually recover for such a threat, however, the plaintiff must establish two more elements, and \u8220\'3f[o]ne is proof of causation.\u8221\'3f}

{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2019643444&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_525&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_525" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Id}}


34/59

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0. at 525}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. In}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Fairley,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

that meant that prison guards who were assaulted and threatened had to show itwas because of their potential testimony against the jail, not another reason.}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2026752089&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Id}}

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0.}{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Surita v. Hyde,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

665 F.3d 860 (7th Cir.2011)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

also addresses the issue of causation. In the relevant part of that case, objec

tors to a proposed local towing ordinance were threatened with assessment of a fee for a planned protest and a ban on future protests if they did not pay. The court held that because \u8220\'3fa reasonable jury could find that prohibiting [plaintiff\rquote s] speech was the motivating, or even but-for, cause of [the] threats,\u8221\'3f the plaintiff\rquote s claim survived summary judgment. However, if the objector\rquote s speech was chilled for another reason\u8211\'3fthe evidence suggested that perhaps she voluntarily was not planning a rally for thedate in question\u8211\'3fthen she would have no damages ensuing from the threats, and her claim would fail.}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1See

}}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2026752089&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_879&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_879" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1id


35/59

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0. at 879}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. And, finally, in}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2016322288&pubNum=0006538&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Henderson v. Huibregtse,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

281 Fed. App\rquote x 577 (7th Cir.2008)}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0, the Seventh Circuit again addressed the question of causation where a prison inmate sued over a newspaper\rquote s refusal to supply his subscription. The court held that an advisory city resolution urging the publisher to prohibit sales

to inmates was not a prior restraint because in addition to lacking a \u8220\'3fthreat,\u8221\'3f he could not establish that the resolution had coercive effect on the publisher.}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2016322288&pubNum=0006538&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_6538_580&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_6538_580" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Id}

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0. at 580\u8211\'3f81}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0. Because the publisher, of its own volition, did not want to sell subscriptions to inmates, there was no restraint caused by the government action.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f

\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0In light of this precedent, Backpage cannot credibly contend that it is \u8220\'3firrelevant\u8221\'3f that Visa and Mastercard, much like the newspaper in}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1


36/59

Henderson}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

vis-\u224\'3f-vis prisoners, simply did not want to do business with a websitewhere advertisers peddle flesh. Once a threat is established, the plaintiff must further prove that the threat restrained speech. If something other than the government\rquote s threat caused the restraint, then the plaintiff\rquote s casefails. And in this case, in contrast to the cases on which Backpage relies, there is abundant affirmative evidence of voluntary action by the credit card companies to dissociate themselves from Backpage\rquote s seedy offerings.}{\f2 \b0 \fs16 \cf1 \i0{\*\bkmkstart co_footnoteReference_B00092037082041_ID0}{\*\bkmkend co_footnoteReference_B00092037082041_ID0}{\field {\*\fldinst HYPERLINK "#co_footnote_B00092037082041_1" }{\fldrslt{\super \f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs16 \cf5 \i09}}}\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0To be clear: the Court does not doubt that Dart\rquote s}{\f2 \b1 \fs20 \cf1 \i0{\f2 \b1 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i1letter}


caused action by Visa and MasterCard, or at least the timing of that action. But the letter was primarily information and advocacy, at most obliquely hinting that some official sanction might result from inaction, and so cannot be wholly equated with whatever implicit threat of government sanction it also contained. The record to date, which includes no contradictory evidence from Backpage, amply establishes that the credit card companies caused the termination of their agreements with the website voluntarily and not because they were coerced by threats from Dart. Based on that evidence, there is no basis to infer that the response of the credit card companies to Dart\rquote s letters would have been any different had they not contained the language to which Backpage points as carrying co

ercive import. There is, therefore, no basis to conclude that the threat of official action caused any restraint on speech.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}


37/59

{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0Dart\rquote s actions cannot be deemed \u8220\'3finformal censorship\u8221\'3f to the extent that the credit card companies made a rational business decision that is in keeping with clear policies to protect their brands from reputational harm. And only censorship, albeit informal\u8211\'3fthe \u8220\'3frestraint\u8221\'3f part of \u8220\'3fprior restraint\u8221\'3f\u8211\'3fis prohibited by the First Amendment.}{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1See}}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2001441116&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_1123&originationContext=document&vr=3.0&rs=cblt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_1123" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Blue Canary Corp. v. City of Milwaukee,}

}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0251 F.3d 1121, 1123 (7th Cir.2001)

}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

(\u8220\'3fBy \u8216\'3fprior restraint\u8217\'3f Blackstone and modern courtsalike mean censorship\u8211\'3fan effort by administrative methods to prevent the dissemination of ideas or opinions thought dangerous or offensive.\u8221\'3f). No matter what Dart\rquote s methods, if his threat did not coerce the companies\rquote actions\u8211\'3fand the evidence suggests it did not\u8211\'3fhe cannot be liable for censoring the content on Backpage.com.\par}

}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \b0 \fs20 \cf1 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i1Bantam Books}}

{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0and the other cases relied upon Backpage simply do not address the situation before this Court, where there is affirmative evidence, not just the defendant\rquote s conjecture, that the third parties upon whom the government official prevailed acted voluntarily for reasons independent of any threat. Backpage wants the Court simply to ignore this evidence, but none of its cited authorities imposes liability for a prior restraint in the face of evidence that the public official\rquote s action did not cause the subsequent curtailment of expression. Because no evidence has been presented to establish that credit card companies acted out of concern that Dart would initiate, or cause to be initiated, any enforcemen


38/59

t proceedings or other legal action against them, the Court concludes, on this record, that Backpage\rquote s likelihood of success on the merits is nil.\par}}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0\u160\'3f\par}{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\li0 \f2 \qj \b0 \ri0 \fs20 \cf1 \i0{\f2 \strike0 \ul0 \b0 \fs20 \cf1 \i0}{\f2 \b1 \fs20 \cf1 \i0{\*\bkmkstart co_pp_sp_999_11_1}{\*\bkmkend co_pp_sp_999_11_1}{\f2 \strike0 \ul0 \b1 \sa0 \sb0 \fs20 \cf1 \i0*11}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

Even if Backpage were correct, and it was not required to show that Dart\rquote s alleged threats had any coercive effect, the decision by the companies to terminate their relationships with Backpage because of the illegal and brand-damagi

ng activity taking place in the adult section of Backpage.com is nevertheless relevant to show that injunctive relief is not appropriate here.}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf1 \i0

To establish its standing to seek an injunction, Backpage must show that: (1) it is under threat of an actual and imminent injury in fact; (2) there is a causal relation between that injury and the conduct to be enjoined; and (3) it is likely, rather than speculative or hypothetical, that a favorable judicial decision will prevent or redress that injury.}{\field {\*\fldinst HYPERLINK "http://www.westlaw.com/Link/Document/FullText?findType=Y&serNum=2022905074&pubNum=0000506&originatingDoc=Idab4a1d0521511e5be1ff4cec5913d5d&refType=RP&fi=co_pp_sp_506_585&originationContext=document&vr=3.0&rs=c

blt1.0&transitionType=DocumentItem&contextData=(sc.AlertsClip)#co_pp_sp_506_585" }{\fldrslt{\f2 \b0 \fs20 \cf5 \i1{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i1Schirmer v. Nagode,}}{\f2 \strike0 \ul0 \b0 \sa0 \sb0 \fs20 \cf5 \i0

Backpagecom LLC v Dart

Documents