Paresh Dave, writing for the LA Times:

The California Supreme Court agreed to review Yelp’s objection to a decision ordering it to strip the Internet of comments posted about a San Francisco law firm.

The law firm owner, Dawn Hassell, sued Ava Bird, the disgruntled former client who allegedly posted the reviews — and lower courts agreed that Yelp should be forced to remove them.

And:

To the frustration of many plaintiffs’ attorneys, the Communications Decency Act has long freed online publishers from liability for user postings on their websites and apps. But many technology experts say the Hassell case may be the biggest threat yet to the immunity.

The appellate court found that no liability was being placed on Yelp, and thus the ruling didn’t go against federal law. Instead, as the “administrator of the forum” where defamatory speech existed, Yelp bears the responsibility of removal, the court said.

Experts in technology law say they’re optimistic that the California Supreme Court will spike the order against Yelp.

If this decision goes against Yelp, it will certainly impact crowd sourced rating and comment sites. Bigger pockets will be able to sue unflattering comments into submission. Chilling.