Friday, August 01, 2008
Montgomery Co. court hears legal dirt
Attorneys cited the First Amendment on Thursday in the case of a New River developer who says bloggers have defamed him and hurt his business.

The Roanoke Times | File April
Some people refer to this stockpile of topsoil as "Mount Woody," after developer Roger Woody, who owns the property and built these town houses.

The Roanoke Times
Related
Previous coverage
- ACLU says lawsuit is groundless (May 24, 2008)
- Christiansburg developer files suit over blog (May 6, 2008)
The Roger Woody-Christiansburg blogger saga will continue at least another month, a Montgomery County Circuit Court judge ruled Thursday morning.
Woody, a developer in the town, is seeking more than $10 million in actual damages and $350,000 in punitive damages from Terry Ellen Carter, Tacy Newell-Foutz, Carol Lindstrom and Meghan Dorsett for their alleged involvement in blog postings critical of his business practices.
The lawsuit filed by Woody's attorney, B.K. Cruey of Shawsville, states that, "The Defendants combined, associated, agreed, mutually undertook or concerted together for the purpose of developing a website on the internet to be used willfully and maliciously" to cause injury to him and his business. The Web site listed in the filing is www.thinkchristiansburg.com, which is operated by Carter and Newell-Foutz.
The lawsuit alleges the Web site and a "local newspaper" were used to publish false and misleading information about Woody and his business, Showcase Home Builders. It refers to photographs of a topsoil stockpile at his property on Cambria Street near hundreds of town houses he has built in past years. The Web site has criticized the appearance and questioned the safety of the pile of dirt in the residential neighborhood.
Both Carter and Newell-Foutz demurred to Woody's claims, or asked that they be dismissed. The demurrer, filed on behalf of Carter by American Civil Liberties Union attorneys Rebecca Glenberg and Jonathan Rogers, and on behalf of Newell-Foutz by Guy Harbert of Roanoke, states that the criticisms posted on the site are protected by the Constitution.
Carter entered the courthouse Thursday accompanied by five people, including her husband and people she said were there because they believe in the First Amendment. She was joined shortly thereafter by Newell-Foutz and Harbert. By the time the hearing began, supporters filled two rows of seats in the courtroom.
Lindstrom and Dorsett were among those seated in the crowd because they had received an extension for their portion of the legal action. Woody did not attend the hearing.
"This is a SLAPP suit," Rogers told Judge Ray Grubbs in his opening statement, referring to a Strategic Lawsuit Against Public Participation.
Rogers said that Woody's claim was erroneous because no documentation of specific financial loss had been presented. He also said that Carter had no competitive interest with any of Woody's businesses, so her blog postings were not malicious or posted with the intent to sabotage.
"They're not statements of fact, they're statements of opinion," Rogers said.
While he cited various landmark cases similar to this one, Rogers said that the trump card in his defense is the First Amendment. Carter was just voicing her opinion on the town's happenings in a public forum, Rogers said.
"And thank God we're allowed to do that in this society," he told the judge.
Harbert's defense for Newell-Foutz was similar to Rogers'.
"I know I've never said this before and I'll probably never say it again, but I agree with everything Mr. Rogers is saying," said Harbert, eliciting laughter from the courtroom.
Harbert reiterated Rogers' points about the site serving as an open forum for opinion, and that Woody's claim failed to demonstrate any actual financial loss. He also went on to say that Woody must prove actual malice.
Cruey responded in court by calling the criticism aimed at Woody on thinkchristiansburg.com an "all-out attack" against his character and business practices.
He stated that Woody has tried to have the mound of topsoil removed, but legal environmental issues with the state have slowed the process. Cruey also stated that Woody has permits for everything and has always acted lawfully.
"You have to wonder, why in the world did they do this?" asked Cruey, speaking about the alleged attack on Woody's business.
Addressing the claim that Woody failed to cite financial damage, Cruey said Woody lost business because his name has been run through the mud. Cruey said that if the demurrer stands, his client might stand to lose even more business.
"If you open the Web site back up ..." to allow blog posts similar to the ones in question to continue "... you can really destroy his business," Cruey said.
After hearing both sides, Grubbs told both parties that they can expect a ruling on the matter in a month to six weeks.
"It's another six weeks; we got to wait another six weeks," Carter said after the hearing.
Carter was appreciative of the support she received in the courtroom.
"Really this isn't about me, it's about the First Amendment," she said.
Lindstrom, who has never mentioned Woody on her blog, Depot Dazed, said Cruey told her that she and Dorsett were included in the lawsuit because they were seen at town meetings with Carter and Newell-Foutz, which led him to believe there was collusion.
"The fact that it got to this point and that people were wrongfully included bothers me," Lindstrom said.
She said she believes she was included because she has been aggressive in requesting town documents and posting them online.
"This is the perfect way to silence people who don't have the money to fight these kinds of battles," she said.
Recently diagnosed with lupus and lacking health insurance, Lindstrom said she has had to choose between legal aid and medical care.
Dorsett was equally upset that she was included in the case.
"I showed up at a town meeting in public and was seen with Tacy and Terry, but if you asked me how a blog works I couldn't even tell you," she said.
Cruey said that he will take Lindstrom and Dorsett for their word, which is why they were granted an extension.
"If they have nothing to do with it, then I've agreed to file a nonsuit," he said.
Cruey said that if he later finds that the two had something to do with the blogs, he would file suit again on behalf of Woody. He said the criticism that Woody receives is unfair.
"I've noticed one thing that the news media fails to mention about the topsoil is that Mr. Woody can't move the dirt pile until he gets permission from the state," he said.






