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Defamation Suit Dismissed Against Alleged Online Griper and Web Site
New York Law Journal
October 07, 2009
A "disgruntled consumer" expelled from a private finance course he later allegedly blasted on a popular consumer complaint Web site as a "joke and a scam" may not be sued for defamation, a Manhattan judge has ruled.
In Intellect Art Multimedia Inc. v. Milewski, 117024/08, New York Supreme Court Justice Judith J. Gische also rejected claims by the Swiss Finance Academy against the Web site that gives consumers an electronic forum to air their gripes.
Such complaints have become an increasingly common feature of the Internet -- and an increasingly common source of lawsuits by aggrieved businesses.
In February 2008, Matthew Milewski of Manhattan enrolled in one of the academy's Switzerland summer courses and paid a deposit. When he attended, he told staff he would pay the balance when a student loan came through, according to the ruling.
The academy, which bills itself as a "highly selective summer institute" offering finance and business seminars taught by experienced faculty, expelled Milewski, citing his behavior, which it described as "disruptive ... and rude and insulting" to staff members, and for failing to pay his tuition.
In July 2008, posts on www.ripoffreport.com accused the program of being a "bait & switch company," which required participants to "bring your OWN pillow, sheets, comforter and shower towels," and only served toast for breakfast.
The author of the posts, "Lilly," also wrote that the company was run by "two incompetent people" and that "if I took a poll from the 150 people that went this summer 130 people would ask for a refund cause they know they got worked."
Another post said the course locations were switched "a week before the program starts" and no refunds were given.
Ripoffreport.com touts itself as a site where dissatisfied consumers can post about their experiences with various businesses under the tagline, "Don't let them get away with it…let the truth be known!"
The site charges companies to help "resolve" posted disputes by "contacting each and every unhappy customer to try to resolve the dispute in an amicable manner."
Swiss Finance Academy, which boasts a "highly satisfied customer base of more than 430 alumni," claimed the posts had contributed to a 70 percent decline in its summer 2009 enrollment. It sued the Arizona-based operator of ripoffreport.com, Xcentric Ventures LLC, and Milewski for defamation, and Milewski separately for breach of contract.
Appearing pro se, Milewski denied making the posts, but argued that the content was opinion and thus protected speech.
Justice Gische agreed, dismissing the majority of the claims.
She characterized Milewski as a "disgruntled consumer" whose statements "reflect his personal opinion based upon his personal dealing with plaintiff."
