Restatement (Second) of Torts (Defamation) states: Publication of defamatory matter is its communication intentionally or by a negligent act to one other than the person defamed. One who intentionally and unreasonably fails to remove defamatory matter that he knows to be exhibited on land or chattels in his possession or under his control is subject to liability for its continued publication.
I believe that Olson Newspaper and Daily Planet would be liable to Luthor because they intentionally and unreasonably failed to remove defamatory matter. I do not think that Slow Lane Coffee knew it was defamatory when putting the copies out for their patrons.
If Luthor notifies them of its falsity and they do not take them out then they would be violating Restatement (Second) of Torts (Defamation.) I also do not think they could be held liable if users were on dailyplanet.com on their wifi. That would be something out of Slow Lane Coffee’s control to be liable for things people do while they are on their laptops or phones at their location.
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