IT Forum admin sued for defamation in Auttralia

[Oliver]

Thought this might interest some here.

Whirlpool, an online IT forum, is being sued by an accounting software firm, 2Clix, for "injurious falsehood".  2Clix is suing the forum admin for allowing people to voice opinions regarding their software, on the public forum.

I think this will be classed as defamation, though I'm not a lawyer.  Defamation laws allow for an entity (person or organisation) to sue for recovery of losses caused by publicly issued statements which are both damaging and false.

Whirlpool is a forum set up by Simon Wright, primarily to discuss various aspects of the ISP's available here in Aus.  In the fora, one member asked for advice about some accounting software being considered for the member's business.  There were strong negative responses from a number of forum members who had tried to use the software.

A number of users of the software didn't get past the trial settup stages (didn't 'go live'), due to the software not functioning as advertised.  Many were unsatisfied with the support.  Some felt they had been misled with regards to features shown in the software demonstration, which were later clarified as being 'development features', or similar. Companies that cancelled their subscription to the software were not able to retrieve data/reports from the period of use.  The complaints were numerous, and mostly from people reporting to have had direct dealings with 2Clix, or known someone who had.

The suit is being defended.  I think it's rather an interesting case, and I think it will set an important precedent in Australian civil law.

Oliver

[Oliver]

Update - 2Clix have informally mentioned to Simon Wright that they intend to withdraw their civil claim.  Nothing has been officially filed though.

There is speculation that they have realised that the siuit is only causing more damage to their public image.  Simon has certainly had a lot of community support on the Whirlpool fora.

The issue has reached nation news radio, and major news internet sites.

Apparently the suit does not come under the category of defamation.  The law has recently been changed (not sure if it's national or state law) to increase the burden of proof for defamation.  This suit was a matter of 'injurious falsehood'.  I'm not really sure what the difference is, though.  I believe part of the claim requires that it was Simon's intent to cause damage to 2Clix reputation.

While I think it's good that the suit will probably not go ahead, I was interested to see how it would have been handled in court.  It must be one hell of a hassle for Simon, all round.

Whirlpool has received donations for legal costs.  Whirlpool originally advised people not to donate, as the costs could not be forecast.  They have now stopped all donations, and will refund any excess at the end of proceedings.

Oliver

[motorollin]

Glad they put a stop to these irresponsible people voicing their opinions in public. If we let people start doing that then the next thing you know we'll be living in a democracy.

--
moto

[Oliver]

Too right, Moto.  In one way, I was hoping that the case would be successfully defended in court, though I believe Simon would be prefer it not go that far.

Now, the case is most likely being formally withdrawn very soon.