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Alabama, and the scholar sued for libel in her home state. Luban refused to attend court sessions, her lawyers arguing that Alabama did not have jurisdiction, leading to the default judgment.
Griffis then asked a Minnesota court to enforce the award.
Luban's attorney argued the initial suit should have been filed in Minnesota, saying most libel cases for printed materials occur in the place where the statement is produced.
The high court's unanimous decision overturned rulings in two lower Minnesota courts upholding the Alabama verdict.
"The fact that messages posted to the newsgroup could have been read in Alabama, just as they could have been read anywhere in the world, cannot suffice to establish Alabama as the focal point of the defendant's conduct," the court's opinion said.
Griffis' attorney, Peter Erlinder, said he may appeal to the U.S. Supreme Court.
"We think the court simply misread the law," he said, adding that the ruling effectively gives Minnesotans freedom "to attack people anywhere in the world" and never have to prove they were in the place where the damage was done.
Luban's attorney, John Borger, said the ruling extends traditional libel protections to cyberspace.
"Engaging in a general discussion to a general audience will not be enough to lead to a suit elsewhere even if the person being talked about lives in another state or country," he said.
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