Update 3-26-2014 The court dismissed the case.
THE ADVOCACY FOR CONSUMER RIGHTS LLC, a.k.a TAFCR, an Arizona foreign limited liability company,
Plaintiff,
V.
STEVE RHODE AND JANE DOE RHODE; JOHN DOES I-X; JANE DOES I-X; ABC PARTNERSHIPS I-X; DEF LIMITED LIABILITY COMPANIES I-X; and XYZ CORPORATIONS
Defendants.
For their claims for relief against Defendants, Plaintiffs allege as follows:
PARTIES, JURISDICTION AND VENUE
1. The Advocacy for Consumer Rights LLC (“TAFCR” or “Plaintiff” ) is an Arizona foreign limited liability company with its principal place of business in Arizona.
2. Upon information and belief, Defendant Steve Rhode (” Defendant” ) and Jane Doe Rhode reside in North Carolina.
3. All acts of Defendant as alleged herein were performed for the benefit of his marital community with Jane Doe Rhode, and vice versa.
4. Plaintiff suffered damages in Maricopa County, Arizona, caused by Defendant.
5. Defendant did things and caused things to happen in Maricopa County, Arizona, upon which the allegations in this Complaint are based.
6. Defendant directed defamatory statements about Plaintiffs to Arizona residents.
7. JOHN and JANE DOES 1-10 are fictitious persons who may have an interest herein. ABC PARTNERSHIPS 1-10; XYZ CORPORATIONS 1-10; and DEF LIMITED LIABILITY COMPANIES 1-10 are fictitious entities who may have an interest herein. At such time as the true name of said fictitious persons and/or entities become known to Plaintiffs, Plaintiffs may amend their pleadings to reflect same.
9. Upon information and belief, jurisdiction and venue are proper in this Court.
FACTS
10. All of the allegations contained within the paragraphs above and below are hereby incorporated by reference as if fully set out herein.
11. TAFCR offers services to consumers who may have experienced problems with creditors or mortgage servicers issues.
12. Defendant posted false statements on the internet, at http:// getoutofdebt.org/51516/is-the-advocacy-for-consumer-rights-and-chad-pratt-a-scam-will, stating that “IS THE ADOVACY OF CONSUMER RIGHTS AND CHAD PRATT A SCAM?” stating that it is “odd” that TAFCR is a Nevada company; stating that TAFCR “is a front end marketing group that sends out advertisements and refers people to other firms”; implying that TAFCR is a scam; and making a variety of other untrue and damaging statements aimed at Plaintiffs (collectively the “False Statements”). The False Statements have been attached to Exhibit A hereto.
13. Defendant also posted false statements on the internet, at https://getoutofdebt.org//60957/the-advocacy-for-consumer-rights-says-i-have-a-good-case-against-wells-fargo-tina stating that TAFCR’s program is a conspiracy to get people with mortgage fraud cases to believe they are a victim and implying that TAFCR is a scam. The False Statements have been attached to Exhibit B hereto.
14. Defendant also posted defamatory and/or copyrighted material on the following websites:
A. https://getoutofdebt.org//wp-content/uploads/2013/08/mortgage_fraud_faq_new.pdf
B. https://getoutofdebt.org//wp-content/uploads/2013/08/whistleblower_new.pdf
C. http://uk.passfail.com/blogs/get-out-of-debt/the-advocacy-for-consumer-rights-says-i-have-a-good-case-against-wells-fargo-a-tina/the-advocacy-for-consumer-rights-says-i-have-a-good-case-against-wells-fargo-a-tina-10609754.htm
F. https://getoutofdebt.org//wp-content/uploads/2013/04/TAFCR.org_new.pdf
G. https://getoutofdebt.org//wp-content/uploads/2013/04/TAFCR.org_new.pdf
H. https://getoutofdebt.org//tag/chad-pratt/
I. https://getoutofdebt.org//tag/the-advocacy-for-consumer-rights/
COUNT I – DEFAMATION AND DEFAMATION PER SE
15. All of the allegations contained within the paragraphs above and below are hereby incorporated by reference as if fully set out herein.
16. ln making and publishing the False Statements, Defendant has caused the unprivileged publication of false and defamatory statements to third parties.
17. The False Statements are about and concerning Plaintiff.
18. Defendant communicated the False Statements to third parties via the Internet and/or intentionally made such statements on the Internet accessible to third parties without password protection.
19. The False Statements are and would be highly offensive to a reasonable person and have been published to third parties with the apparent intent of causing harm to the reputation and economic interests of Plaintiff.
20. In making and publishing the False Statements, Defendant had knowledge of or acted in reckless disregard as to the falsity of the False Statements and the false light in which Plaintiff would be placed.
21. As a direct and proximate result of the Defendant posting the False Statements, Plaintiff has sustained, and will continue to sustain, immediate and irreparable harm and injury , but not limited to, damage to reputation, losses in revenues, loss of profits, loss of goodwill, loss of business relations with existing and future business prospects, and loss of competitive business advantage, opportunity, and/or expectancy.
22. The False Statements made by Defendant impeach the honesty, integrity or reputation of Plaintiff.
23. The False Statements made by Defendant constitute defamation per se and general damages are presumed as a matter of law.
24. Plaintiff has suffered general and special damages in an amount to be proved at trial.
25. In making and publishing the False Statements, Defendant acted maliciously, willfully, wantonly, and unlawfully.
26. For such willful and malicious acts, Plaintiff hereby seeks punitive damages in addition to its actual damages.
27. Defendant’s acts, omissions, conduct and transactions alleged herein were aggravated, outrageous, and guided by evil motives wherein Defendant intended to harm plaintiff and/or consciously pursued a course of conduct knowing that it created a substantial risk of significant harm to Plaintiff.
28. To dissuade Defendant from pursuing a similar course of conduct in the future and to discourage other persons from similar conduct in the future, an award of punitive damages should be awarded against Defendants in the sum of sufficient magnitude to punish Defendants and to deter similar conduct by others.
COUNT II— APPLICATION FOR PRELIMINARY AND PERMANENT IN JUNCTION
29. Al l of the allegations contained within the paragraphs above and below are hereby incorporated by reference as if fully set out herein.
30. As a di rect and proximate result of the Defendant posting the False Statements, Plaintiff has sustained, and will continue to sustain, immediate and irreparable harm and injury including, but not limited to, damage to reputation, losses in revenues, loss of profits, loss of goodwill, loss of business relations with existing and future business prospects, and loss of competitive business advantage, opportunity, and/or expectancy.
31. The False Statements made by Defendant impeach the honesty, integrity or reputation of Plaintiff, Plaintiff’s business, and Plaintiffs services.
32. The False Statements are defamatory on their face.
33. There is a substantial risk that unless Defendant’s wrongful acts described herein are temporarily, preliminarily, and/or permanently enjoined, Defendant will continue to irreparably injure Plaintiff.
34. Plaintiff has no adequate remedy at law; therefore, Plaintiff is entitled to injunctive relief.
COUNT II—I TORTIOUS INTERFERENCE WITH CURRENT AND PROSPECTIVE BUSINESS RELATIONSHIPS
35. All of the allegations contained within the paragraphs above and below are hereby incorporated by reference as if fully set out herein.
36. Plaintiff has existing business relationships with clients and other persons relating to its business.
37. Plaintiff has a reasonable expectation of future business relationships with existing colleagues, prospective clients and employees, and others with whom Plaintiff does business or with whom Plaintiff may reasonably expect to do business. This expectancy is based, in part, on the considerable time, energy, and resources it takes to develop the goodwill and reputation associated with Plaintiffs reputation.
38. At all material times hereto, Defendant was aware of Plaintiff’s existing and/or prospective business relationships.
39. As described herein, Defendant intentionally and/or purposefully interfered with Plaintiff’s existing and prospective relationships by unlawfully making the False Statements.
40. Defendant communicated the False Statements to third parties via the internet and/or intentionally made such statements on the internet accessible to third parties without password protection.
41. As a direct and proximate result of the Defendant posting the False Statements, Plaintiff has sustained, and will continue to sustain, immediate and irreparable harm and injury including, but not limited to, damage to reputation, losses in revenues, loss of profits, loss of goodwill, loss of business relations with existing and future business prospects, and loss of competitive business advantage, opportunity, and/or expectancy.
42. Defendant’s conduct was intentional, malicious and done for the purpose of causing injury to Plaintiff.
43. For such willful and malicious acts, Plaintiff hereby seeks punitive damages in addition to its actual damages.
44. Defendant’s acts, omissions, conduct and transactions alleged herein were aggravated, outrageous, and guided by evil motives wherein Defendant intended to harm Plaintiff and/or consciously pursued a course of conduct knowing that it created a substantial risk of significant harm to Plaintiff.
45. To dissuade Defendant from pursuing a similar course of conduct in the future and to discourage other persons from similar conduct in the future, an award of punitive damages should be awarded against Defendants in the sum of sufficient magnitude to punish Defendants and to deter similar conduct by others.
WHEREFORE, Plaintiff demands judgment against Defendants as follows:
A. For a preliminary and permanent injunction compelling Defendant to remove from the Internet all material pertaining to Plaintiff and its business;
B. For a preliminary and permanent injunction enjoining Defendant from publishing any false statements or defamatory material to any third party;
C. For general damages in an amount to be proven at trial;
D. For special damages in an amount to be proven at trial;
E. For punitive damages in an amount to be proven at trial;
F. For Plaintiff’s costs herein incurred;
G. For plaintiff’s reasonable attorneys’ fees incurred herein, which are not less than $5,000.00 in the event of default;
H. For interest on the foregoing attorneys’ fees and court costs at the statutory rate from the date of judgment until paid;
I. For prejudgment and post-judgment interest on all damages at the highest rate allured by law from the date of injury until paid in full;
J, For such other and further relief as the Court deems just and proper.
RESPECTFULLY SUBMITTED this 17th day of September, 2013
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