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George Rush, a New York resident and columnist for the New York Daily News, wrote a critical column about Berry Gordy, the founder and former president of Motown Records. Gordy, a California resident, filed suit in a California state court against Rush and the newspaper (the defendants), alleging defamation (a civil wrong, or tort, that occurs when the publication of false statements harms a per­son’s good reputation). Most of the newspaper’s subscribers are in the New York area, and the paper covers mostly New York events. Thirteen copies of its daily edition are distributed to California subscribers, however, and the paper does cover events that are of nationwide interest to the entertainment industry. Because of its focus on enter­tainment, the newspaper also routinely sends reporters to California to gather news from California sources.

Can a California state court exercise personal jurisdiction over the New York defendants in this case? What factors will the court consider in de­ciding this question?

If you were the judge, how would you decide the issue, and why? Discuss fully.

Operation Management, Management Studies

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