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Court Renders $3 Judgment Against Spamhaus

www.sorehands.com writes "Back in 2006, e360Insight and David Linhardt obtained an $11.7M judgment against Spamhaus, an international anti-spam organization. The judgment was subsequently appealed and reduced to $27,002. That judgment was appealed yet again, and the appeals court has now vacated the earlier number and entered a judgment against Spamhaus in the amount of $3. (Yes, three dollars.) As you may recall, e360's oral arguments for the latest appeal were not well received by the court." The ruling itself is a fairly entertaining diatribe about how e360 shot itself in the foot repeatedly and with enthusiasm throughout the case, and contains gems like this: "By failing to comply with its basic discovery obligations, a party can snatch defeat from the jaws of certain victory."

34 of 156 comments (clear)

  1. So... by Anonymous Coward · · Score: 2, Insightful

    The spammers still won... Sure it's only 3 dollars.. But they still won. Instead of being burned at the stake like they deserve...
    How is that justice or a good thing?

    1. Re:So... by WrongSizeGlass · · Score: 4, Insightful

      The spammers still won... Sure it's only 3 dollars.. But they still won. Instead of being burned at the stake like they deserve... How is that justice or a good thing?

      It's not perfect, but it is good because Spamhaus gets to stay in business and fight spam for all of us.

    2. Re:So... by Anonymous Coward · · Score: 3, Informative

      They only won because Spamhaus decided not to show up to the original trial. If you don't show up, you lose.

      You can read more about it in TFA.

    3. Re:So... by rekoil · · Score: 3, Insightful

      I'm guessing the $3 comes from $1 for each of the three charges in the original suit - the lowest amount a US Judge is allowed to award a plaintiff. In other words: "I have to decide in your favor, but I'll be damned if you actually get anything out of it".

    4. Re:So... by emurphy42 · · Score: 3, Informative

      Only after sinking however much money into lawyer's fees, and awards that low are fairly obvious code for "we're required by law to award you something, but you're a real asshat so you get the absolute minimum amount allowed".

      From a quick scan of TFA, the final judgment boils down to:

      • The spammers missed several deadlines, then blamed the last one on their lawyer dropping the ball and his partners being tied up on other cases at the time, then got an extension of a few weeks and promptly busted out a dozen-odd witnesses (they'd previously claimed that only the boss knew the relevant info) and upped their claim to about $135M. Even negligence would be grounds enough for them to lose something, and furthermore this history is evidence enough that they're deliberately screwing around and thus grounds enough for them to lose more.
      • The spammers were demanding Spamhaus to disclose irrelevant details about its employees and equipment (it was pointed out that Spamhaus doesn't track who downloads their list, so wouldn't know which ISPs might be using it to block spam).
      • Said boss's back-of-the-envelope estimate (cost of one e-mail multiplied by number of e-mails he thinks were blocked because Spamhaus listed them as an alleged spammer) bounced around so much ($11M to $135M to $122M to $30M) that he was clearly exceeding his reasonable business knowledge, thus the whole idea was thrown out for lack of evidence.
      • The $27K was based on "okay, fine, we'll buy you lost three client contracts a month earlier than you would have otherwise", but $27K was revenue and it was pointed out that they should be looking at profit instead. Said boss claimed it was pure profit because "the e-mails were already sent"; this was questioned generally and specifically, and also thrown out for lack of evidence.
    5. Re:So... by Anonymous+Cowpat · · Score: 2

      yes and no. If the court doesn't have jurisdiction, the judge is supposed to toss the case, not rule on it anyway inspite of the fact that his ruling will be unenforceable. In this case, the judge took the word of the plaintiff (who obviously has a massive vested interest in getting a default judgement) that the court had jurisdiction, and proceeded with the case.

      --
      FGD 135
    6. Re:So... by CrazyDuke · · Score: 2

      Personally, if the $3 went to the court, I would not bother the clerks with pennies. But, if it went directly to the spammers, I would be sorely tempted to send 300 one cent USD international money orders in seperate envelopes with signature confirmation for the spammers to cash.

      Sign here, please! ...and here...and here...etc...

      What? It's just a signature. You can't just write your signature? We all can. What's the big deal?

      --
      Any sufficiently advanced influence is indistinguishable from control.
    7. Re:So... by snowgirl · · Score: 5, Informative

      Spamhaus tried to argue that the court didn't have personal jurisdiction, and sent a lawyer under General Appearance to argue against the amount of the judgement. The appeals court rightfully explained that by making such an argument, Spamhaus recognizes the jurisdiction of the court.

      They initially attempted to argue lack of personal jurisdiction under Special Appearance of a lawyer, but then (probably due to a misunderstanding of law, and advice from a UK lawyer) feared that they might jeopardize their claim of lack of personal jurisdiction by appearance, and so they up and quit, withdrawing their appearance. As a result, a default judgement was entered (as was the normal course of fighting cases prior to special appearance), and their remaining position was to fight any attempts to recover the judgement with claims that the court had no personal jurisdiction. They decided for the other route of arguing against the damages, and thus making a general appearance and submitting to jurisdiction.

      I honestly think it's probable that they were working under different legal assumptions based on UK law, rather than US law, and didn't understand how to properly argue lack of personal jurisdiction in the US... (since the US law in this matter differs from UK law, it's not an unreasonable assumption.)

      --
      WARNING! This girl exceeds the MAXIMUM SAFE standards established by the FDA for BRATTINESS
    8. Re:So... by snowgirl · · Score: 2

      Spamhaus is a British company anyway so the court had no jurisdiction over them. They only appealed on principal, there was never any prospect of them paying or being shut down.

      Yeah, "appealing on principle"... and thus making a general appearance, and submitting to the jurisdiction of the court. Good job on those principles...

      --
      WARNING! This girl exceeds the MAXIMUM SAFE standards established by the FDA for BRATTINESS
    9. Re:So... by TheRaven64 · · Score: 3, Insightful

      There's one important thing about having the spammers win: you can appeal if you lose a case, you can't appeal if you win. If the judge had ruled against the spammers, then they could have appealed at the next court up and wasted more time and money. This judgement means that Spamhaus can appeal if they want (which, I presume, they won't), but the spammers have to accept the judgement. The point of an award like this is to say 'you are technically in the right as a point of law, but you shouldn't actually win, no go home.'

      --
      I am TheRaven on Soylent News
    10. Re:So... by Kreigaffe · · Score: 2

      this is old -- but if I recall correctly, I think Spamhaus got themselves into the shit PRECISELY BY responding to the summons. Granted, their response was "No.. we're not responding", but the fact that they responded was taken as acknowledgement of the court's jurisdiction. And then, when they never showed up, the court had no option but to find in favor of the plaintiff since the defendant had acknowledged the court's jurisdiction but failed to appear to defend themselves.

      Maybe i have it confused with a different case. it's possible.

      --
      ... still waiting for this free-as-in-beer free beer I keep hearing about. :|
  2. Re:See... by ge7 · · Score: 2

    Quite many. GroupOn and their multiple daily emails about new offers is perfect example of this. Spammers have just wisen up from the 90's (or, adjusted to laws, as spamming wasn't illegal back then)

  3. Re:See... by dougmc · · Score: 4, Interesting

    How many people actually legitimately "opt-in" for spam? Probably pretty close to 0.

    Quite a few, actually.

    Like ge7 said ... history has proven that people *will* opt into spam if you give them something in return. Give them a free ringtone, a mp3, some porn. Or a coupon for free food, and they'll agree to almost anything. It's not like anybody actually reads what they're agreeing to.

    Of course, the flip side is that many of these people will scream bloody murder when these companies start spamming them "for no reason".

    And many people do opt-in to spam -- spam that's highly targeted. As ge7 said ... GroupOn deals in your area? Often quite valuable, but once you stop caring -- it's spam.

  4. Spamhaus should add a site for $3 donation by h2oliu · · Score: 2

    If they created a site where people could donate $3 to them, I wonder how many people would contribute?

    --
    Ok, I give up, why you?
  5. Re:See... by 91degrees · · Score: 2

    True that it's not really all that different. Although I think the main objection to spam isn't the cost of time and bandwidth, but more of a psychological feeling of powerlessness that there's nothing you can do to stop it. It's essentially a form of harassment.

    Established companies with a reputation to maintain, I'd imagine, are actually quite happy to remove you from the mailing list on request.

  6. Re:RTFA... by Low+Ranked+Craig · · Score: 2

    Well, we're all disappointed that the ruling was a PDF and that the court doesn't use ASCII for your viewing pleasure. Maybe you should stick to browsing with Lynx on a VT100.

    --
    I still cannot find the droids I am looking for...
  7. Re:Our Court System favors only Lawyers by darkshadow88 · · Score: 2

    In the US, you don't have to pay the winner's attorney's fees unless the judge specifically orders it. In this case, he did not. I also doubt that Spamhaus spent very much defending themselves in this case--the default judgment was because they didn't show up, and they went on to appeal the damages.

  8. Re:See... by Splab · · Score: 2

    If you have signed up for it, it isn't spam. Spam is unsolicited communications where the sender has somehow managed to get your contact information in a way where you did not explicitly allow for it.

    When the local stores send someone e-mail it is a concious signup made by the recipient.

  9. Re:Our Court System only exists for the Lawyers by snowgirl · · Score: 2

    As explained to an anonymous coward above, lawyers fees are only awarded if it is declared in the judgement, and not for all cases where someone loses. In particular, lawyers fees are usually only awarded in cases where it would be unreasonable for a party to shoulder the burden of bringing the case to court, usually because one side is so utterly wronged that it's either "come on defendants, these people shouldn't have had to bring this matter to a court... you were clearly wrong, and decided to just scream out 'nu-huh'"... or "come on plaintiffs, this argument is the stupidest thing in the world, and you have no evidence and/or no sane legal theory to make your argument... they never should have had to defend this in court in the first place."

    --
    WARNING! This girl exceeds the MAXIMUM SAFE standards established by the FDA for BRATTINESS
  10. Re:See... by CBravo · · Score: 3, Interesting

    That is half of the truth. The second part is content/applicability and ease of opt-out.

    If my pencil-shop sends me an email after 5 years because he wants to sell a new one, it is spam. You don't expect it.
    If my car-dealer sends me an email after 5 years because he wants to inform me about a call-back, most people would not consider it spam.
    If my ISP sends me an email about pencils, it is spam.
    If I cannot opt-out because I need my customer card to complete the procedure, it is spam.

    Actually, and anyone at an ESP will tell you that, if the receiver thinks it is spam: it is. Because _that will_ hurt your deliverability at the hotmails and yahoos of the world.

    Btw I'm in that business.

    --
    nosig today
  11. Re:See... by amiga3D · · Score: 2

    Essentially hell, it is harassment. The non-stop assault of these assholes as they swarm my mail box makes me see red. They should be required by law to provide a valid return email account so I can e-mail them back and tell them how little I appreciate them sending me their shit.

  12. Comedy of Errors by Software+Geek · · Score: 2

    The defendant made legal errors regarding personal jurisdiction, thus losing their opportunity to get the case dismissed for lack of jurisdiction AND their opportunity to argue the merits.
    The plaintiff made legal errors regarding discovery, thus losing their opportunity to recover damages.
    The trial judge made legal errors that twice resulted in the verdict being overturned.

    In the end, the case was decided without any actual evidence on the merits being admitted.

    Justice!

    1. Re:Comedy of Errors by artor3 · · Score: 2

      The defendant made legal errors regarding personal jurisdiction, thus losing their opportunity to get the case dismissed for lack of jurisdiction AND their opportunity to argue the merits.
      The plaintiff made legal errors regarding discovery, thus losing their opportunity to recover damages.
      The trial judge made legal errors that twice resulted in the verdict being overturned.

      In the end, the case was decided without any actual evidence on the merits being admitted.

      Justice!

      And after all of this, $3 changes hands. Oh, except for the undoubtedly enormous sums paid to the lawyers on all sides.

      Working as intended.

  13. Re:See... by Machtyn · · Score: 3, Informative

    Once you stop caring, it's fairly trivial to opt-out again... at least for legitimate services. Groupon would most certainly comply with an opt-out request.

  14. Wrong! None. by www.sorehands.com · · Score: 5, Informative

    Spam is UNSOLICITED!

    If people signed up for it, then it is not spam.

  15. Re:See... by Slashdot+Assistant · · Score: 2

    By definition email is no-longer spam if the receiver opted-in to receive it. Spam is *unsolicited* bulk email. This distinction is important because without it pretty much every piece of bulk email sent would be spam.

  16. Re:Why accountable at all by fafaforza · · Score: 2

    I don't get it either. Spamhaus isn't forcing anyone to use their list. If their list is full of false positives, then email providers are free not to use it. Wouldn't a more common sense target be a company like Yahoo that uses Spamhous as part of their policy?

  17. Re:See... by Pharmboy · · Score: 3, Informative

    They should be required by law to provide a valid return email account so I can e-mail them back and tell them how little I appreciate them sending me their shit.

    They are. The law just isn't enforced.

    --
    Tequila: It's not just for breakfast anymore!
  18. Attorney: sounds like they blew it by hawk · · Score: 3, Informative

    I am an attorney, but this is not legal advice, and does not apply to your situation. If you want advice, pay my retainer.

    Generally, responding at all confers jurisdiction, even if there was none to start with.

    According to the opinion, spamhaus responded, and then changed it's mind.

    Under traditional rules, all that could be done was contest jurisdiction, and any other act consented to jurisdiction (my civil procedure prof actually suggested using a letter rather than regular pleadings for good measure).

    Under modern federal rules, and in most states, everything Canberra done at once--BUT you must deny Judie it croon in every pleading, or else.

    hawk, Esq.

    1. Re:Attorney: sounds like they blew it by hawk · · Score: 2

      Yikes. Comes from being a touch-typist using an iPad.

      It has hard-core auto-"correct"

      You must deny jurisdiction in every pleading--the first one in which you do not is a consent to jurisdiction.

  19. Re:See... by Capt.+Skinny · · Score: 4, Funny

    Spam boss: Hey Johnson, how are you coming on those replies to this morning's penis enlargement campaign?
    Johnson: Making progress boss. Only 200,000 more replies left to read.
    Spam boss: Great work Johnson.
    Johnson: Hey boss?
    Spam boss: Yeah Johnson?
    Johnson: I think you should take a look at this reply from amiga3D...
    Spam boss: Hmm... [reads email from Johnson's computer screen to self]
    Spam boss: Well, sheeeeeiiiiiiiiiiiiit, Jonhson, this guy is really unhappy with us. Son of a gun.
    Johnson: What should I do, boss?
    Spam boss: Take him off all our lists IMMEDIATELY! Have operations cancel the campaign that's going out right now and the two in the queue until we can be sure he's on on those lists. Forward his email to customer service and have them reply with an apology, and offer him a coupon for 25% off of a spam campaign. We'd better nip this in the bud before this guy makes makes his complaints public -- our reputation depends on on it!
    Johnson: Of course, boss! Right away!

  20. Precedent? by Xacid · · Score: 2

    What I don't understand is how this is a "win". Yes, the court slapped SH on the wrist, but they still ruled against them. No beneficial precedent is set that I can see.

  21. Not in a civil suit. Re:Precedent? by rocket+rancher · · Score: 2

    What I don't understand is how this is a "win". Yes, the court slapped SH on the wrist, but they still ruled against them. No beneficial precedent is set that I can see.

    Precedent? In a civil suit? Stare Decisis is not operative in a civil suit, for good reason. Be illuminated.

  22. Re:See... by andymadigan · · Score: 2

    Groupon isn't opt-in, it's opt-out. It's hard to even see the deals, let alone purchase them, without entering your e-mail address. There's no option at registration to disable e-mails. Instead, you have to wait until you get one and click the opt-out link.

    On top of that, there's no way to opt-out of them giving your e-mail address to the retailer in question, who is then free to sell it to whomever they wish. (I stopped using groupon when they implemented that particular 'feature').

    --
    The right to protest the State is more sacred than the State.