The Internet and Pending Law Suit Against NAELB listserve

   by Kit Menkin

 From the very beginning, Jim Raeder has not wanted to divulge the name of the person who sent a series of malicious e-mails about his company CapitalWerks to his funders, leasing associations, and leasing leaders in the industry.  He has said from the beginning it was not good for the industry to “air any laundry in the public” and funding sources “ don't like any controversy at all, whether you are guilty or not.”

In reality, he will be letting employees go because of the effect this has had on his company, including two funders, and brokers bringing up copies of what was sent on the interne to potential clients.   CapitalWerks employees have written e-mail, which Mr. Raeder was not happy about, telling of their difficulties, working harder with less returns.

He remembers his settlement with Sierra Cities.  There were at least a dozen law suits regarding the sale or “warranties” when the company was sold to American Express.  To Leasing News knowledge, all were won by the plaintiffs, such as Fred Van Etten, Mark McQuitty, to name a few, with the condition the settlement not be made public. That is the position he finds himself now in with the “culprit.”

Leasing News readers overwhelming were in favor of learning the name and company as it could happen to them.  The internet has changed “public information,” not only with trade publications such as Leasing News with its archives, but blogs and other web sites by those with complaints.  In addition, “internet spiders” now can find information without the specific address needed by a “gopher” or even old Netscape general search words.  The business world has changed has changed as “the internet has a thousand eyes.”

It also is no secret the alleged freedom of the internet is being abused. eMail once thought deleted are on many hard drives and recoverable.

A message between two people can cause legal problems, and sent to others, causes many liabilities, as explained in Leasing News Advisory Board member Dan Janal's “Risky Business: Protect Your Business from Being Stalked, Conned or Blackmailed on the Web”

http://www.amazon.com/exec/obidos/ISBN%3D0471197068/
danjanalsonlin00A/103-0205572-2897419

The Monitor took on July 16,2001 off its “bulletin board” after it was abused by e-mails from a phony address, plus false accusations later admitted by the broker who sent them.  There were evidently too many liabilities in continuing this “bulletin board.”

http://two.leasingnews.org/archives/July01/7-16-01.htm

A serious law suit is about to be filed against the National Association of Equipment Leasing Brokers (NAELB) and those who allegedly defamed, plotted, and encouraged action against a leasing company on their listserve and internet forum. This may become a landmark case in the leasing industry use of the internet by its members.

An association is liable for what it members publish, especially if it is also brought out into the public arena.  Telecom Agents Association in the beginning of the NorVergence Scandal was contacted by Leasing News.  To discuss the subject with members, it not only required membership to join their “listserve,” but was extremely careful in what was allowed to be said as the NorVergence attorneys were very aggressive.  They actually “policed” every statement made.

The Equipment Leasing Association (ELA) attempts to police what is being said on their listserve, actually warning members to stop specific conversations, and has gotten their legal counsel, who specializes in antitrust matters, to not only warn members on line, but speak to them privately that they have a responsibility of what they talk about on the association listserve. Last week, ELA management got involved, including their legal counsel.  I personally spoke with Edward A. Groobert of DYKEMA & GOSSETT PLLC about the difficulties of what appears innocent and may appear otherwise. He wants all members to be aware of what they communicate on the association listserve.

In the National Association of Equipment Leasing Brokers Listserve

it is more obvious the lack of controls, and Leasing News itself has been the subject of much invective, the collusion of directors and ex-directors calling our advertisers, contacting those who have written e-mail to us, and the encouragement of cancellation of reading Leasing News. We have e-mails from these people, and copies of e-mails sent to readers to substantiate this. Many of these also appeared in the NAELB forum; and continue to this day.

This broker vendetta is about to be exposed in a public lawsuit in the process of being filed by a California leasing company and certainly will bring the legal ramifications of “free speech” versus being malicious or violating federal antitrust laws regarding unfair competition, price fixing, and slander to association internet “listserve” communication.