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Judges Berate Spammer For 'Incompetent' Litigation

An anonymous reader writes "Joseph Kish, attorney for alleged serial spamming firm e360, must have known he was in trouble when Judge Richard A. Posner interrupted him seconds into his opening statement to berate both Kish and his client. Kish was appearing before the United States Court of Appeals for the Seventh Circuit to explain why his client was entitled to $27,000 from Spamhaus, a British anti-spam nonprofit. None of the judges on the appeals court panel seemed sympathetic to e360's argument, but Judge Posner did most of the talking. He spent fully two-thirds of Kish's 15-minute presentation demanding that Kish explain his client's methodology and lecturing him on its inadequacy. 'This is just totally irresponsible litigation,' he said. 'You can't just come into a court with a fly-by-night, nothing company and say "I've lost $130 million."'"

37 of 143 comments (clear)

  1. $27,000 is not that small by cats-paw · · Score: 5, Interesting

    "The judges expressed surprise that a defendant would even bother to appeal a judgment as small as $27,000."

    What exactly does that mean ? Litigation is so expensive that you should just pay up when somebody sues you
    for thousands of dollars ? Is the court encouraging blackmail by lawsuit ??

    --
    Absolute statements are never true
    1. Re:$27,000 is not that small by hedwards · · Score: 3, Informative

      No, it's because the benefits of winning greatly outstrips the potential gains. It's an awfully big gamble to take. When you factor in the money it costs for an attorney and the necessary legal staff, you very quickly run up bills much higher than that. Some people will appeal on principle, but I suspect that it's fairly unusual.

      Plus, they lost their first trial, you're more likely to get the sum knocked down than overturned at this stage, which means that you end up paying even more money that you would have as you wouldn't be getting legal fees from the other party.

      A judge doing that at the beginning of the first trial would be way out of line.

    2. Re:$27,000 is not that small by Dunbal · · Score: 2, Insightful

      All your questions and more can be answered by reading the damned article.

      --
      Seven puppies were harmed during the making of this post.
    3. Re:$27,000 is not that small by Hotawa+Hawk-eye · · Score: 5, Insightful

      Spamhaus is fighting this judgment for some of the same reasons IBM fought SCO -- if Spamhaus showed that it wouldn't defend itself against one spammer, them they'd be inundated by other spammers looking to kill Spamhaus through a thousand paper cuts (lawsuits.) Even if Spamhaus spent ten times the amount of the judgment on the appeal, if they win and it prevents a hundred other similar lawsuits it would be worth it.

    4. Re:$27,000 is not that small by sangreal66 · · Score: 5, Informative

      Spamhaus did in fact, not defend themselves. That is how the judgment was rendered in the first place.

    5. Re:$27,000 is not that small by Dan541 · · Score: 2

      Because the US courts have no jurisdiction over them. It would be unreasonable to expect them to respond, I know I wouldn't.

      --
      An SQL query goes to a bar, walks up to a table and asks, "Mind if I join you?"
  2. Ridiculous by Anonymous Coward · · Score: 5, Insightful

    You can't just come into a court with a fly-by-night, nothing company and say "I've lost $130 million."'

    Yeah, this would be like the music industry claiming to have lost many times their actual revenue due to filesharing - they'd be laughed out of court. Or their victim would be bankrupted. Something like that anyway.

    1. Re:Ridiculous by mbone · · Score: 2

      Yes, in the case of file sharing the content industries have bribed the Congress into granting them statutory damages. The spammers haven't been nearly as industrious... yet.

  3. Alas, by Jawnn · · Score: 4, Interesting

    ...Judge Posner is incorrect. One most certainly can "just come into a court with a fly-by-night, nothing company and say 'I've lost $130 million.'" That's the problem with the our legal system. Patent trolls do it all the time. One can bring suit for just about anything, against just about anyone. Happily, every once in a while a court will abandon protocol and call "bullshit" right up front. On that call, of course, His Honor is dead on. Hopefully, this frivolous action will cost the plaintiff and more importantly, his attorneys dearly.

    1. Re:Alas, by ViableDreams · · Score: 2

      The real issue (to the Court) seems to been how the case was presented, not the merits of the case itself. Despite the one statement about "fly-by-night company", the judge was really just complaining about the quality of the case. Had the same case be presented by good attorneys with a well-prepared case the judge would have gone along with it. When there's big money involved (SCO, patent trolls) you can hire expensive attorneys and take the time to prepare (spin) a case, even out of nothing. Here the attorneys were working for free and for the defense; there was no money in for them and it showed in their work.

    2. Re:Alas, by Kjella · · Score: 4, Insightful

      ...Judge Posner is incorrect. One most certainly can "just come into a court with a fly-by-night, nothing company and say 'I've lost $130 million.'" That's the problem with the our legal system. Patent trolls do it all the time.

      I'd never thought I'd come to the defense of patent trolls, but that is based on what the one who has used it illegally has made, not the one who wrote it. Otherwise you could just take whatever GPL code you can find and say "They've given it away, so their revenue losses are $0 and there's no damages to pay". Could $megacorp have earned $130 million on the patented technology? Yes. Then that belongs to the patent holder. Claiming that your business has suffered $130 million in losses on the other hand requires that you've actually lost $130 millions in revenue - which a fly-by-night, nothing company has not. Unless you can convince the court that without this vicious action your company would have been the next Facebook, but that's an extremely tough sell. Of course it's good that you don't award money to pipe dreams, but it also means you sometimes end up with tactical lawsuits - drain the small challenger's war chest and even if you lose they don't get fully compensated for the growth they could have had.

      --
      Live today, because you never know what tomorrow brings
    3. Re:Alas, by the+eric+conspiracy · · Score: 5, Informative

      Hmm I think Judge Posner has a much deeper knowledge than you of what one can and cannot do in a court of law.

      From Wikipedia:

      Posner has been called "the worldâ(TM)s most distinguished legal scholar." He is the author of nearly 40 books on jurisprudence, legal philosophy, and several other topics, including The Problems of Jurisprudence, Sex and Reason, Overcoming Law, Law, Pragmatism and Democracy, and The Problematics of Moral and Legal Theory. The Journal of Legal Studies has identified Posner as the most cited legal scholar of the 20th century, and a 1999 New York Times article identified Posner as one of the most respected judges in the United States.

    4. Re:Alas, by UnknowingFool · · Score: 2

      The free attorneys represented the defense, Spamhaus ,not the plaintiff who was e360 but your other points are correct.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    5. Re:Alas, by guanxi · · Score: 2

      Hmm, who to take the word of... a respected judge, or an anonymous person with nothing but uncited claims.

      If we are just going to Appeal to Authority, what is the point of even reading the news? Is it possible that people in authority make mistakes or have biases. I know we've never seen it, but is it conceivable?

      Judge Posner has spoken!

    6. Re:Alas, by Adrian+Lopez · · Score: 4, Insightful

      It's just one of the charms of slashdot, at least half the people here think they're ready to be a Supreme Court judge. Particularly when it comes to stretching the constitution so far that they can strike down something Congress did that they disapprove of.

      To take one example, what should "limited time" in the copyright clause amount to? 1 year? 10 years? 100 years? 1000 years? There's nothing a court could latch onto and say 49,9 years is limited and 50,1 years is "unlimited". Now, I'm very much for copyright reform but it's Congress that has to pass it, not trying to divine an exact, maximum limit from an extremely vague wording.

      If you're going to criticize other people's interpretation of the US Constitution you should at least understand their position before doing so. The case you're thinking of had nothing to do with X years being "limited" and X+n years being "unlimited". Instead, the case had to do with Congress extending the term of copyright not only on new works but on existing works as well. Without this type of retroactive extension, copyrights set to expire after X years would expire after X years. Otherwise, copyrights set to expire after X years could be extended indefinitely through acts of Congress, thus rendering "limited times" a meaningless term.

      Now what was that you were saying about the "charms of slashdot"?

      --
      "In prison you just have to shut your eyes and take it. Here you have to shut your eyes and give it."
    7. Re:Alas, by guanxi · · Score: 2

      I have it on good authority that you can reduce embarrassment by clicking the link before posting a comment.

  4. Re:Why isn't this done more often? by Foobar+of+Borg · · Score: 3, Insightful

    It seems like there are dozens of these type of cases going on constantly. Corporate litigation is rife with abuse right now... this ought to be going on every day. I guess a lot of the integrity has been bought or bribed out of the system...

    And yet, when Congress or whichever President discusses "tort reform" they mean making it harder for us actual human beings to sue when we are injured.

  5. Re:Peers by the+linux+geek · · Score: 4, Insightful

    SCO wasn't a scam. SCO was a legitimate company, with a very decent product and a large customer base, that was run into the ground by apparently-deranged corporate management.

  6. Possibly career ending for this litigator by Anonymous Coward · · Score: 4, Interesting

    For those keeping score at home, judge Posner is likely the best known and most highly regarded judge in America outside the Supreme Court. Getting publicly lambasted by Posner for incompetence does not bode well for any attorney's career.

  7. Re:Makes me sympathise with the spammer by Anonymous Coward · · Score: 4, Insightful

    It's not bias if it is a reaction to absurd behavior and arguments, as is the case here. This case is filled with plenty of absurdity and never should have been filed. The only reason why this case wasn't summarily dismissed at the outset is because Spamhaus didn't show up to court the first time around and got a default judgement issued against them. It has no merit and should have never been filed to begin with. Is it bias to call a spade a spade here?

  8. This is the sign things are not going your way. by www.sorehands.com · · Score: 5, Interesting
    I listened to the oral arguments with joy, The oral arguments reminded me of the ruling in e360 v. Comcast, where it started with, "Plaintiff e360Insight, LLC is a marketer. It refers to itself as an Internet marketing company. Some, perhaps even a majority of people in this country, would call it a spammer. "

    But, what is interesting is the e360Insight, LLC, v. ChoicePoint Precision Marketing, LLC case. He sued them for providing them e-mail addresses for Ferguson, Ferron , and myself. Linhardt claimed he "licensed" our e-mail addresses from Choicepoint. However, Linhardt swore under oath (claimed in the case of Ferguson) with that Ferguson, Ferron, and I signed up with their partner. I am thinking that might apply in any further proceedings, if there are any.

  9. Re:Reducing the damages? by Gutboy · · Score: 2

    No. Because they didn't respond to the first case, they lost and now have to pay. What they are trying to do is get the payment as small as possible. $1 judgement usually means "You are right, but you have suffered no real damages but we have to award you something".

  10. Re:Makes me sympathise with the spammer by Anonymous Coward · · Score: 2, Insightful

    Judge's behavior does not indicate bias. e.g. your signature says you have the world's hardest puzzle game - that's free speech. But if you want to litigate, and base damages on your 'hardest puzzle game in the world', then you better be capable of showing that you have surveyed the world and have a reason to say it is the hardest.

    This maybe biased (like the judge) but I think the spammer's argument has as much water as your signature.

  11. Re:Peers by AlecC · · Score: 5, Interesting

    SCO was /at one time/ a legitimate company. But it sold its major asset, and the shell was taken over by patent trolls. Since a company is nothing but a piece of paper, unlike humans, they can be converted from one use to a totally different one. WPP, the world largest advertising agency, descends from "Wire and Plastic Packging", a company which manufactured supermarket trollies. Nokia was once a forest products company, then sold rubber boots. 3M started out mining.

    --
    Consciousness is an illusion caused by an excess of self consciousness.
  12. Why Not ? by mbone · · Score: 2

    RIAA and the MPAA claim damages in the trillions, more than their industries have ever made. I don't recall hearing any judges berating them.

    1. Re:Why Not ? by UnknowingFool · · Score: 2

      The difference is when the RIAA or MPAA put in a claim for a certain dollar amount they explain how they got the number and what legal arguments allow them to claim such numbers. The defense is allowed then to challenge the logic or reasoning in the numbers. From what I understand, e360 seemed to make up these numbers without much explanation and kept changing them at trial. That puts an unfair burden on the defense and the court. They should have been prepared before trial. That is what the judge is upset; he's not concerned really about who wins or loses but that both sides follow procedures. One side not following procedures wastes his time and the court's time.

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
  13. 27,345,357 unique messages from E360 blocked by shoppa · · Score: 5, Insightful
    The most astounding thing:

    In his original complaint http://www.spamsuite.com/webfm_send/357 the guy running E360 presented as fact, that Spamhaus had blocked at least 27,345,357 unique messages from E360.

    This is like saying, oh, I killed 37 people (and here's a list of who I killed) and that's why the cops are ganging up on me so I'm suing them.

  14. Re:Peers by Abreu · · Score: 2

    Nintendo started making card games

    --
    No sig for the moment.
  15. Re:Peers by UnknowingFool · · Score: 2

    The OP is correct in the history of SCO. As Caldera, it was actually a Linux company. It wasn't until Darl McBride took over as CEO, renamed it, and decided the company's business would be litigation instead of making real products that doomed SCO.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  16. Re:Reducing the damages? by uglyduckling · · Score: 2

    Actually, they don't have to pay, because they're a British company and don't recognise the jurisdiction of the course to enforce these fees. That's why they withdrew in the first place, and only changed their mind when offered Pro Bono representation. In the UK, the sending of spam is illegal, so a British company cannot be sued for providing protection against something that would be illegal in the first place.

  17. Re:Peers by Kjella · · Score: 2

    Since a company is nothing but a piece of paper, unlike humans, they can be converted from one use to a totally different one.

    So can people. And it honestly matters just as little if the mafia boss or drug lord did a honest day's work once before turning to crime, it's what they are now.

    --
    Live today, because you never know what tomorrow brings
  18. Re:Makes me sympathise with the spammer by UnknowingFool · · Score: 4, Insightful

    From my viewpoint the judge was not biased against the plaintiff for who they represented; he was angry at them for shoddy legal work. Admonishing one side for not preparing well isn't new when it comes to the law. In essence, they are wasting his time and the court's time when the court could be hearing someone else who had prepared for their case. Remember this is the Court of Appeals. They should have had their case solid before going to trial as the District level.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  19. I thought that was the point of our legal system by guanxi · · Score: 2

    I thought nothing companies were entitled to the same justice as the big shots. Isn't that much of the point of our judicial system?

  20. Re:Why isn't this done more often? by rusl · · Score: 2

    That is an important thing to remind people of who support that "tort reform".

    I'm a Canadian. Working in the USA I started to get a feeling why there are so many lawsuits. You go to work and it really is seen as a sort of individuals competitive duty to maintain their own safety standards. There is a desperation and lack of regard for safety rules unless they are legally mandated (and then they are enforced like crazy like putting baby warning stickers on every random plastic bag as if that would be helpful). So for a poor desperate worker without a safety net the options are go broke or sue. Most just go broke but an industrious few manage to sue. And nowhere in that process does common sense come in: why is this happening, how to resonably fix it. It's all just a war to cover your own ass.

    Why is the USA so broken!?

    Maybe something about Ayn Rand being the 2nd most influential book after The Bible!?

    We should all watch the latest Adam Curtis documentaries!

    --
    Stupidity is its own reward.
  21. Why Copyright After You're Dead Still Makes Sense by billstewart · · Score: 2

    Back in the 80s, 88-year-old Helen Hooven Santmyer published And Ladies Of The Club, a novel which became a New York Times best seller.*

    Having the term of copyright extend past the author's death still makes sense, and doesn't violate the concept of "limited time". Publishers pay authors based on how much money they expect to make selling the book (or program or whatever.) Some of that money is an advance, and some of it's royalties as copies of the book get sold. Under the current system, the publisher makes a guess about how many copies they'll sell, and if it's enough to be worth publishing at all, they decide how much advance to pay you, and (if the book actually keeps selling), after the advance is paid off, they keep paying you royalties. If you die, well probably your spouse or kids get it, or your creditors or whatever.

    If you're an 88-year-old author, and copyright ends when you die, a publisher is unlikely to be willing to risk publishing your book, because you might die in a year and they wouldn't make much money - if the book is selling well, other publishers could print their own copies and sell it (like the ebooks on Amazon which are often ripped off from still-living authors) - and if they do publish it, they're not going to give you much of an advance, and your kids aren't going to get royalties from the other publishers if you die.

    (*Ok, technically she published it with a university press, sold a couple hundred copies mostly to libraries, and then somebody from a commercial publishing house saw it, thought it was great, and then she got the good publishing deal, and died a year or two later. So she did get a reasonable chunk of the royalties before she died, but the book stayed in print for a long time.)

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  22. Spammers, Music Industry, Patent Trolls by billstewart · · Score: 3, Insightful

    As other people have pointed out, when Patent Trolls come to court saying that your misappropriation of their intellectual property cost them $130 million, it's not frivolous, because they're pointing at the $130 million you actually made, and saying it ought to belong to them. On the other hand, this spammer is coming into court, and saying "Judge, I coulda been a contender*, I coulda made'a 130 million dollars selling Nigerian Herbal Fake Viagra, but Spamhaus put me on their list, and now I'm just a bum!", and that's frivolous because all they can really demonstrate is that now they're just a bum.

    The music industry is an intermediate case. They're the people who made hundreds of millions of dollars selling the public music from Britney Spears and N'Sync, so yeah, they coulda been a contender if you hadn't been sharing their music for free. On the other hand, just because Joe's Garage Metal Band really does have more talent than Britney, it's really dodgy to argue that they could have made $130m from the stuff you gave away without demonstrating that you'd given away 10 million copies, as opposed to the three copies that people actually downloaded that they don't have proof of.

    (*Hey, it's fair use, don't sue me!)

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  23. Re:Why Copyright After You're Dead Still Makes Sen by Kirijini · · Score: 2

    Following your logic, a fixed definite copyright term makes more sense than one based on the author's span. If all works got a 30, 50, 70, whatever year copyright term, then some copyrights wouldn't be worth less due to a shorter duration. And determining whether a work is still under protection would be easy, as all you need to know is the publication date of the work.