Diversity Jurisdiction Exists in ChatGPT Defamation Case, Says OpenAI

The requisite money amount in controversy is satisfied, and complete diversity exists between the parties, to establish that the U.S. District Court for Northern Georgia in Atlanta has jurisdiction over plaintiff Mark Walters’ defamation complaint against OpenAI, said OpenAI’s response Monday (docket 1:23-cv-03122).

U.S. District Judge Michael Brown had ordered OpenAI to show cause by Monday why the complaint it removed July 14 to Atlanta federal court shouldn’t be remanded to Gwinnett County Superior Court where it originated because OpenAI’s notice of removal established “neither the requisite amount in controversy nor diversity of citizenship” (see 2308080031). Walters, a nationally syndicated talk show host, alleges OpenAI’s ChatGPT service defamed him to a reporter (see 2307240031).

Walters didn’t state the amount in controversy in his complaint, said OpenAI’s response. But the categories of damages he seeks, including general and punitive damages, plus attorneys’ fees, “make clear that the amount in controversy at the time of removal was in excess of the required jurisdictional threshold,” it said.

Moreover, on July 6, about a week before removal, Walters’ counsel presented OpenAI with a settlement demand that exceeds $75,000, “which further demonstrates that the amount in controversy at the time of removal exceeded the jurisdictional threshold,” it said. Walters' counsel also confirmed in writing Aug. 8 that the amount in controversy exceeds $75,000, it said.

Walters is a resident of Georgia, and OpenAI is a citizen of 20 states and the District of Columbia, but not Georgia, so “complete diversity exists between the parties,” it said. Walters’ reply to OpenAI’s response is due Sept. 5.