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Suing to Silence? RadioShack turns its legal guns on a middle-class web site operator.
Ft Worth Weekly ^ | 1/28/04 | Dan Malone

Posted on 01/30/2004 6:35:47 AM PST by mylife

Suing to Silence? RadioShack turns its legal guns on a middle-class web site operator.

By Dan Malone

RadioShack's headquarters complex is going up along with the company's legal costs. Even as RadioShack's new headquarters rises from mounds of dirt on the northern edge of downtown Fort Worth, complaints about the company's overtime policies are turning into a mountain of their own. More than 3,300 current or former RadioShack managers across the nation, including 310 from Texas, have "opted-in'' to a class action lawsuit alleging that the company required them to work long hours without overtime pay. That means almost half of the estimated 7,500 eligible workers have joined the suit -- an almost 50 percent sign-up rate that attorneys say they rarely achieve in such cases.

RadioShack, meanwhile, has refocused the aim of one of its own lawsuits, training its large-bore legal guns on the administrator of a website, RadioShackSucks.com, that was publicizing the class action claim.

Bradley D. Jones, the webmaster of RadioShackSucks.com, said the lawsuit has left him waging a serious David and Goliath battle over the issue of free speech on the internet.

"I'm just one little guy against a multi-million- or billion-dollar corporation,'' Jones said in a telephone interview from his business in London, Ky. "I want people to realize that I am a 44-year-old family man. I have a wife and two kids and was a RadioShack dealer for 17 years. ... I'm not some punk kid trying to run a protest site.''

The company's suit against Jones and the workers' class action suit against the company are inextricably intertwined. Shortly after a federal judge in Chicago tentatively approved the class action, RadioShack sued RadioShackSucks.com and two former employees who had posted information there that the company found objectionable. The site also includes links to a law firm handling the class action lawsuit, including one that allows a visitor to "click here to see if you qualify'' to join in the litigation.

Even for a large national retail chain like RadioShack, the stakes are substantial. The company has already paid out $30 million to settle one such claim, and an attorney working on the current class action said that suit could cost the company $100 million more. The class action complaint contends that RadioShack wrongly characterizes salespersons as managers in order to avoid having to pay them overtime -- a charge that the company has disputed.

Fort Worth Weekly first reported on the fight between the company and the pesky, irreverent web site in August 2003. The site mixes Beavis and Butthead-level humor (a cartoon character whizzing on the RadioShack logo), litigation news, and commentary posted anonymously by employees and consumers about the company. The chatter ranges from complaints about company policies to queries about whether employees have ever had sex in store bathrooms.

RadioShack's initial lawsuit against the web site was aimed at two former employees, people Jones calls "rogue users," whom the company claimed were posting objectionable and defamatory e-mails. Those two employees, who subsequently agreed to stop posting offensive material on the site, have since been dropped from the lawsuit. Jones, though, has replaced them as a defendant.

In its most recent filing, RadioShack claims that Jones breached a contract he signed to settle a lawsuit that he had previously filed against the company. Jones, who ran a RadioShack store in Kentucky, said he sued the company after it refused to renew his contract and then opened a nearby store that competed with his own.

In that settlement, Jones received $7,500, was released from a $5,000 debt to RadioShack, and agreed to drop all links to RadioShackSucks.com from his own web site -- an agreement that RadioShack says blocks him from operating the objectionable site. Nothing in that agreement, however, specifically addressed whether Jones could run -- as opposed to merely link to -- the sucks.com site.

Ryan Stephan, one of the class action attorneys, said RadioShack is "intent on having this site removed.''

"They are essentially taking the position that they will overwhelm this individual,'' Stephan said. "That's a tough thing for an individual to face when you have a corporation going after you and your personal assets. We believe the lawsuit is meritless. The question is, can you spend $100,000 to defend this?''

He also said there is no doubt that the site played a big role in connecting his law firm to potential class action clients. "Usually a very successful rate is [when] 10 to 20 percent'' of those eligible join a class action lawsuit, he said. "People are afraid of suing their employer and losing their job. In this case, we're almost at 50 percent.''

"I think they [RadioShackSucks.com] were very instrumental in our level of success," Stephan said. "The fact that this lawsuit [against the site] was filed two weeks after we were allowed to proceed ... is very telling.''

The Weekly wanted to ask RadioShack executives about their views on the growing number of plaintiffs in the class action lawsuit and why the company had refocused its lawsuit on Jones. But in an e-mail, company spokesman Charles Hodges said RadioShack's executives would remain silent "because the questions [are] related to pending litigation that we can't discuss at this time.''

In an interview last summer, however, senior vice president Mark Hill defended the company, saying it respected the free-speech rights of its workers and treated them in accordance with federal labor law. He said the company had no intention of shutting down the site.

Jones' lawyer, Kevin Vice of Dallas, said a 1996 federal telecommunications law protects message boards from the type of lawsuit filed by RadioShack. That law, according to Vice, was intended to shield web hosts, internet service providers, and others in the electronic ether by making it clear Congress didn't consider them to be traditional publishers vulnerable to libel lawsuits.

RadioShack has accused Jones of libel, breach of contract, and trademark violations. Jones said he has done nothing wrong. He took over running the site a couple of years ago from another former RadioShack worker and said he makes no money from it. "Not a penny,'' he said. "In fact the web site costs me money.'' He said his aim is to provide a forum where those who have issues with the company "can let off a little steam.''

The lawsuit, he said, imperils the free speech rights that Americans cherish. If RadioShack prevails, others are sure to follow their lead. "There are public message boards all over the internet,'' he said. "Where are you going to draw the line on that? Are you going to say public message boards can't exist? It's just like a wall outside an interstate [highway]. If somebody paints graffiti on it, are you going to blame the wall?''

Neither of the lawsuits has been scheduled for trial. But lawyers for the class action case are scheduled to be in Fort Worth next month to take depositions from company executives -- collecting yet more information in the case they're attempting to build against RadioShack


TOPICS: Business/Economy; News/Current Events; US: Texas
KEYWORDS: radioshack; slapp; wages
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To: AnAmericanMother
I went in RS a month or so ago and asked if they had ATX power supplies for computers. They had no Idea what I was inquiring about. "I" finally had to tell the manager "nope you dont sell them"
21 posted on 01/30/2004 10:03:50 AM PST by mylife
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To: AnAmericanMother
He used to buy all his homebrew components at RS.

Last Octember, I visited my local store to see if they had any of their two meter handie talkies left (on close out). I quote the clerk: "Two meter radios? I have no idea what you are talking about"

22 posted on 01/30/2004 10:04:18 AM PST by steveo (Alwyas use you're spell checkor)
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To: AnAmericanMother
(we won't talk about the mnemonic device used to remember that, will we, Violet? ;-

But, she was willing.

23 posted on 01/30/2004 10:05:19 AM PST by Professional Engineer (NASA bumper sticker: My other Rover is a FORD too.)
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To: AnAmericanMother
"You've got questions, we've got dumb looks." He used to buy all his homebrew components at RS. Now it's easier just to mail order them, because if you go into one of the stores and ask for, say, a 100 pF capacitor, they look at you like you have two heads.

As an Amateur Radio Operator, I avoid Radio Shack like the plague for any components. I wouldn't even by a cell phone from there these days. Unless an item is on sale or clearance, it is always cheaper someplace else. Dealing with the spiff-induced, sales quota achieving cell phone salepeople just isn't worth my time anymore. Those that actually have a clue about what they sell left a long time ago.
24 posted on 01/30/2004 10:13:23 AM PST by Skywarner (Freedom isn't Free. Remember our WWII vets!)
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To: Skywarner; AnAmericanMother
Your posts remind me of the time I went looking for a 1/2 Watt, 1k ohm resistor.

"I think the resistors are over there."
"We only have quarter Watt resistors? It's always been like that."
"Well we might have it in one of our other stores, have you checked there?"
"No I'm don't know much about electronics, I'm going to Colledge for business. I'm sorry we couldn't help you. Have you taken a look at our Cell phones? What company do you use now?"

Buh buy RS guy. Haven't returned to a radio shack since.
25 posted on 01/30/2004 12:04:24 PM PST by Outlaw76 (Citizens on the Bounce!)
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To: Bloody Sam Roberts
It's the free flashlights that were the shack's downfall.
26 posted on 01/30/2004 12:08:27 PM PST by stainlessbanner
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To: AnAmericanMother
if you go into one of the stores and ask for, say, a 100 pF capacitor, they look at you like you have two heads.

I know! It freaked me out the first time I got that "deer in the headlights" look when I asked where the BNC connectors were located after their remodeling.

Fortunately, I've discovered a beautiful little Mom and Pop electronics parts store in my town that has quite a selection of goodies at really good prices. And, they'll order me anything I want if they don't have it. I buy from them exclusively and I've told them why. I want them to stay in business.

27 posted on 01/30/2004 8:33:44 PM PST by Bloody Sam Roberts (Do stars clean themselves with meteor showers?)
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