Motions to dismiss Palm Coast Travel lawsuit filed with court

It’s our turn.

Almost three months after filing a lawsuit against one of its customers and me, our lawyers have answered Palm Coast Travel’s charges in two separate motions for dismissal.

Here’s Peter Lay’s motion (PDF); here’s mine (PDF).

I’ll hit the highlights, starting at the top. Here’s the summary of my attorney’s response:

This lawsuit is a classic example of a corporation attempting to use the burden and expense of litigation to silence a consumer advocate and stifle free speech.

Count I and Count II of Plaintiff’s Complaint must be dismissed because Plaintiff fails to state a cause of action for either defamation or tortious interference against Elliott. To state a valid claim for defamation under Florida law, a plaintiff must plead actual damages. By failing to identify a single customer affected as a result of Elliott’s alleged defamatory statements, Plaintiff fails to state a cause of action for defamation.

Plaintiff also improperly alleges that Elliott’s reporting depicted it in a “false light,” a tort that has been abandoned by Florida courts. Similarly, Plaintiff also fails to state a cause of action for tortious interference. It is well established under Florida law that a plaintiff claiming tortious interference must identify the agreement or the specific customers allegedly interfered with.

Plaintiff does not specify a single customer or agreement allegedly interfered with. Furthermore, the alleged defamatory statements at issue in this case are simply nonactionable, protected as privileged under basic Florida defamation law.

This Court should put an immediate halt to Plaintiff’s attempts to use expensive litigation to silence a renowned consumer advocate, and should readily dismiss this baseless action.

Here’s Lay’s attorney’s summary:

Counts III and IV of Plaintiff, SMOLINSKI AND ASSOCIATES, INC. D/B/A PALM COAST TRAVEL’S Complaint (hereinafter “Complaint”) should be dismissed because the claims of defamation and tortious interference asserted against Defendant, PETER LAY fail to state causes of action for which relief may be granted, and the Court cannot properly maintain personal jurisdiction over Defendant, PETER LAY in this matter.

Not much more to say. See you in court.

(Photo: billaday/Flickr Creative Commons)

  • SirWired

    I take it Florida does not have anti-SLAPP laws?

    This would be as good of a poster-child as any for such laws.

    SirWired

  • Debra

    @Chris

    I noticed you have tagged these stories with various key words. One key word is “Revelex”. Is this a reference to the company that provides an electronic booking engine service for travel agents? If so, what do they have to do with this?

  • Bill Norris

    I’m sure that there are thousands of folks like me who want to wish you and Peter the best of luck in your dismissal efforts. This case is, and has always been, a transparent attempt to stifle any criticism of Lee Smolinski and his companies. I expect that any competent Judge will laugh your opponents out of court. I hope that you both will ask the court to pay for your legal costs in defending yourselves against this absurd lawsuit, and I hope that the State of Florida will put their criminal investigation against the company on the fast track.

  • Christopher Elliott

    @Debra — good question. There have been some additional documents filed with the court that answer it. Look for details in a future post.

  • Debra

    Thanks, Chris. I think I may have found the tie-in here. I Googled Revelex and found a press release (below) indicating Revelex sold Prime Travel Protection, but also found a second document. If you read the footnote on page 4 of the second document it indicates Revelex owns 50% of Smart Travel Group, the entity that is suing you and Mr. Ley! Will we learn more about this company soon? Seems like they have been under the radar considering all the publicity related to the travel agencies.

    http://www.highbeam.com/doc/1G1-172048093.html

    http://www.scribd.com/doc/2712223/Revelex-Corporation-v-World-Travel-Holdings-Inc-et-al-Document-No-24

  • jmj

    Does Florida (is that the venue?) have any SLAPP statutes?

  • Christopher Elliott

    @Debra, nice sleuthing. You’re getting warm.

    @jmj, no, Florida doesn’t have any SLAPP statutes. If it did, Palm Coast Travel wouldn’t have been able to find a lawyer to take this case. As it is, I’m surprised they did. This case will be dismissed before the lawyers can put down their briefcases in court.

  • Duke Nukem

    How’s this for criticism? Palm Coast Travel Sucks!!!

  • Don

    Chris,
    I presume your attorneys are asking for dismissal with prejudice and for costs.
    Don

  • Debra

    @Chris
    No, I’m not warm, I’m hot now! Check out the link below. Click on “Product Features” and scroll down to “Insurance”. It appears Revelex also sold Trip Assured! Wasn’t this the company that preceeded Prime Travel Protection? I’m not sure of the date of this article, but one of your posters way back indicated that Trip Assured went out of business in 2007.

    So, let me get this straight. You are being sued by a company that may be owned by Revelex and Revelex has been advertising the sale of these illegal insurance policies since at least 2007? I honestly hope your case isn’t dropped. The Palm County Courts are about five hours away from where I live and I’ll make it a point to be there and hope you and your lawyers expose these companies for what they have done.

    http://www.revelex.com/poweragent.rvlx

  • Ed Davenport

    Chris, you better print a screen shot of what Debra has found because I am sure Revelex will remove reference to Prime Travel Protection once they get word what has been uncovered. Your lawyers will probably need this confirmation. Has the state of Florida looked into Revelex?

  • http://www.legalsatyricon.com Marc J. Randazza

    For those of you asking if Flori-duh has an anti-SLAPP statute, it does not. However, it does have a statutory provision for seeking sanctions against the plaintiff and its attorney if the suit is filed without any basis in law or fact. See Fla. Stat. Sect. 57.105.

    This seems like a perfect case for 57.105 sanctions.

  • Christopher Elliott

    @Marc and @Don, I can confirm that a 57.105 motion has been sent to the plaintiff. I will publish it when it’s filed with the court.

    When the court dismisses this case, Palm Coast Travel will pay my legal bills.

  • http://www.ffocus.org Mr Bad Example

    Chris,

    Isn’t there a federal SLAPP statute? Also what is up in Florida? It seems like scam central.

    Can you sue them for damages? if so you ought to.

  • Carver

    @Marc

    According to Citizen Media Law Project, Florida does indeed have an Anti-Slapp Statute but it’s really weak and narrowly tailored to government abuse (Fla. Stat. § 768.295) and Homeowners Associations (Fla. Stat. § 720.304 (4))

    That’s too bad because a good anti-slapp can really deter attorneys from bring truly frivolous lawsuits such as this one.

  • Joe Farrell

    @Chris – actually I think the reality is that they’ll dismiss and you’ll eat your expenses as the cost of doing business – there is no way anyone pays for someone else’s legal bills just because – without being compelled.

    @Marc – also – the frivolous lawsuit statutes or Bar rules actions are rarely enforced – there is ALWAYS some reason for a lawsuit. . . .perhaps they did not find the right claim is what they’ll say –

    I can count on the fingers of one hand the number of cases brought in the last 25 years where I was ever awarded fees for frivolousness – and only collected on one of them.

    But – I’ve been wrong before – good luck Chris – its not that I disagree with your right to them in this case, its just the reality of getting a dismissal with prejudice far outweighs a couple thousand dollars in attorneys fees to bring a motion to dismiss . . .

  • Bill McDonald

    I agree with you counselor (Joe) – the case against Chris and the customer will be dismissed if it does get to court. The plaintiffs seems stubborn enough to let it get that far without settling so I see a court date. However, I feel both respondents will be awarded fees. How can the plaintiff claim defamation? The state fined him and ordered probation. Chris merely reported the matter and the customer cried foul for being sold an illegal policy. These are the types of suits judges get very upset about. It’s a single issue – plaintiff does a wrong, defendant calls out plaintiff and plaintiff sues. Defamation and tortious inteference are extremely hard to prove. If plaintiffs continue to pursue this they will start throwing all kinds of mud at Chris and the customer – all irrelevant.

  • Carver

    @Joe

    Here in California, you stand an excellent chance of getting attorneys fees for losing an Anti-SLAPP motion to dismiss.

  • Matt

    @Chris
    I don’t know if you have come across this, but below is a screen shot of Smartcruiser’s internet registration:

    Domain Name: SMARTCRUISER.COM

    Administrative Contact, Technical Contact, Zone Contact:
    Palm Coast Travel
    Lee Smolinski
    4800 N Federal Highway
    Boca Raton, FL 33431
    US
    (561)393-7377 (561)393-7377
    (561)393-7622 (561)393-7622 [fax]
    whois@emailaddressprotection.com
    ** VISIT http://www.emailaddressprotection.com **

    Domain created on 16-May-2002
    Domain expires on 16-May-2012
    Last updated on 03-Apr-2008

    Domain servers in listed order:

    DNS4.REVELEX.COM
    DNS5.REVELEX.COM

    It appears they share the Revelex domain server. I’m not sure what this all means, but posters have mentioned the connection between the company that has sued you (Smartcrusier) and Revelex. Somehow one of the entities must own the other. It could be more than a travel agent suing you. I only know what I have read about Revelex, but they seem to be a very big player in the travel industry. Your legal counsel needs to get to the bottom of this because if there is an ownership interest between Smartcruiser and Revelex then it’s possible you are being sued by an entity that has a relationship with many, many well known travel suppliers who you probably work with. I would think if this is accurate, it should be brought out. This is just my opinion and I am obviously not handling your case so I will leave it to your counsel.

  • Christopher Elliott

    @Matt these are interesting connections, but if I were to write something about Revelex, it would be far more investigative. I would speak with former employees and customers (by the way, thanks to those of you who have already contacted me) and look into its relationships not only with Smartcruiser.com, but also with various other suppliers.

    As part of that project, I would also take a hard look at Lee Smolinski. Which other businesses does he own? Where does he actually reside most of the time? Maybe I already know the answers to these questions.

    I probably wouldn’t publish the results on my blog, at least not initially. Instead, I might place it in one of my many media outlets, after being vetted by their attorneys. Or I could pass my research off to another investigative reporter.

    I think the serial suers who filed this utterly frivolous complaint against me have a choice to make. If this case continues, the coverage of their business dealings may expand beyond a handful of benign blog posts on Florida’s enforcement actions. Do they really want that?

    All I can say is: “stay tuned.”

  • Will

    I’ve followed your blog on this story since you first reported almost two years ago. If you scroll through the articles, information related to Mr. Smolinski’s other businesses have already been posted. One that was mentioned, but never followed-up is a company called Ship to Shore Cruises out of Valley City, OH. Mr. Smolinski is listed as an officer of this company. A screen shot of the internet registration of “shiptoshorecruises.com” reveals the same domain name (Revelex) as what Matt discovered in his post above related to Smartcruiser. This appears important to other posters who may have more insight into this whole mess. BTW, all of this information is public. In fact, if you click on the link below that is from a Google search, you will find additional information regarding to Mr. Smolinski’s companies. I wonder who are the smart boys in “Smart Boys Consulting”?

    http://www.peekyou.com/lee_smolinski/127823489

    Registrant:
    PALM COAST TRAVEL

    Registered through: 3Essentials, Inc.
    Domain Name: SHIPTOSHORECRUISES.COM

    Domain servers in listed order:
    DNS4.REVELEX.COM
    DNS5.REVELEX.COM

  • John

    Before the conspiracy theories run away with this, I think it’s important to realize what Revelex does. According to their website and among other things, they create and sell booking engines for both online and in office use. It’s not a far stretch to see a business that books the majority of its travel online using one of their booking engines to run the business’s website.

    So no, having their domain names pointed at Revelex name servers doesn’t mean anything other than they are hosting the website (just like any one of the 20 domain names I own. One of which is pointed at an ActiveEvents server. ActiveEvent owns no portion of my company).

    As far as selling products fake insurance products, Revelex is a booking engine. They enable others to sell. The fact that they had integration (that’s wat the press release says) to sell products that ended up being fake insurance means nothing other than enough customers asked them to build the integration into the booking engine.

    I’m all for sticking it to Palm Coast. The state of Florida has now made their ruling and Palm Coast has agreed in the consent order that it did its customers wrong (cleaned up what I really wanted to say). Let’s not set Chris or anyone else up to be sued by making accusations that aren’t founded.

  • Christopher Elliott

    @John thanks for your concern. I haven’t written anything about Revelex — yet. Comments on this blog and others are protected under the Communications Decency Act.

    What’s more, in the unlikely event that there were any additional litigation, it would virtually guarantee I’d take a hard look at any and all business dealings related to Palm Coast Travel, and that those findings would be widely published.

    The way I see it, I’ve been on my best behavior until now. I’ve only reported what the state of Florida has done since I’ve been sued, nothing more. Palm Coast Travel still has a little bit of time before I start a more active investigation.

    I don’t think it wants that kind of attention.

  • Bill McDonald

    @John
    Chris nor anyone on his blog has made any accusations related to Revelex that would be deemed defamatory. Only public information has been posted. The domain name issue related to Revelex is only part of the reason that this company has become a topic of conversation. A footnote in a federal lawsuit posted previously indicated that Revelex owns 50% of Smart Travel Group LTD. According to the DFS order, Smart Travel Group LTD. is listed as one of the parties and is associated with Smolinski and Associates, the plaintiff in the case against Chris and the customer. So, if as you write, you are all for “sticking it to Palm Coast” and there is an ownership interest between these companies, I am sure you would agree it probably would be prudent for the plaintiffs to dig a bit deeper and determine who is actually behind the litigation.

  • Carl

    @previous posters

    The footnote on page four of the document below is what has created the interest in this recent topic.

    http://www.scribd.com/doc/2712223/Revelex-Corporation-v-World-Travel-Holdings-Inc-et-al-Document-No-24

  • In Memory of Paul Donohue

    Paul Donohue passed away last year. He fought until his death for reimbursement of his claim after he purchased a PTP policy. In reading Paul’s post from over a year ago, it’s almost as if he saw into the future. The Florida Department of Financial Services has finally named a handful of these travel agencies, but the threats of lawsuits are no longer threats. Just ask Chris and Peter Lay.

    Paul Donohue February 9, 2009 at 1:40 pm
    I have been waiting patiently in the wings since Jan 2008 for the state of Florida Dept. of Financial Services to nail down these travel insurance frauds. According to the Florida laws–section 626.901 {1} {ah} I am not going to name these travel agencies–{but we all know who they are ] are liable financially to pay these insurance claims that were represented as “Trip insurance” to the people who bought these policies. The reason I am not naming any of them is that the first thing they due is have their attorney write you a letter with intentions to sue on the grounds of defamation. The problem right now is that the line of people who have been ripped off is so long that it is staggering. All sorts of lies and scams are being perpitrated so that that they dont have to pay on these policies. The only ones who seem to be winning right now are the attorneys who are fighting the people with legitimate claims. We all are looking at one very ,very, large chunk of money!!! Paul Donohue

  • Bill McDonald

    Interesting comments by Mr. Donohue and very sad about his passing. A lot of interesting facts have been posted on this site over the last few years. It seems as of late Revelex is the hot issue. Did they sell fake insurance or didn’t they? Well, one just needs to go back to a post dated March 17, 2009 made by Al Ferguson, president of one of Florida’s largest travel agencies and frequently mentioned on these blogs as a seller of illegal insurance. His comment below seems to confirm Revelex’ involvement.

    http://www.elliott.org/blog/this-is-just-the-beginning-of-a-much-larger-investigation/

    Travel Agency software programs include insurance links that allow “seemless” selling of the insurance on the clients invoice. Insurance is an add on to this invoice and commission is not significantly greater for one product to another. In general, I would suppose it is not a “conspiracy” but ignorance. But when I continue to return to the point that hundreds of agencies are in this same boat, it is because they sold through a reservation system that included this insurance product (Revelex being one of the largest, and many others.)

  • Christopher Elliott

    @Bill McDonald thanks for pointing that out. If I were to investigate Revelex, I would call all of the agencies who sold Prime Travel Protection and ask them how they got the policies. I wonder what kind of assurances were made about the product via reservation systems used by travel agents? It could be very interesting.

    I appreciate the tip. I think I’m going to start making some calls this week. I’m just about out of patience with this suit, and I have columns to write.

  • In Memory of Paul Donohue

    @Chris
    Don’t give up! From the tone of your post above, it’s obvious you have had it up to your ears regarding all of this. You could be on to something big here and for the memory of Mr. Donohue and all of those other seniors who have lost money, been harassed with legal threats and have been sued, please continue your investigation. Mr. Ferguson has given you a good lead. Several articles back it was mentioned that his agency has over a half-million dollars in claims, yet he states the selling of illegal insurance on the part of “hundreds of agences” was “ignorance” because they just purchased through reservation systems like Revelex. Maybe now these travel agencies will be willing to talk.

  • Bill Norris

    Keep your chin up, Chris. I know that you’ve been exposing this fraud for at least six years, and it seems like nothing happened at the State of Florida political level to even slow it down for the first five years. I’m not trying to be political, but it’s been reported in multiple newspaper stories and comments on your blog that despite the fact that the previous Florida Governor, previous Attorney General (current Governor) and previous CFO were contacted by multiple fraud victims about this fraud, nothing was done, despite the fact that laws were on the book to stop the fraud in it’s tracks. You would think that the current crop of FL officials would be doing something about it, but the current Attorney General, who has plenty of time to file a suit to repeal a law that hasn’t even been implemented yet, is nowhere to be seen on the issue, despite the fact that the current CFO is being very proactive about punishing those who sold illegal insurance. Despite all of this, the current AG is leading the current CFO in this year’s race for Governor.
    That’s pretty sad. I’ve belived for many years that any fool, given enough political contribution funds, can get elected to public office. This sorry crop of “Leaders” confirms my judgement.

  • Don’t Want To Be Sued

    I’m a senior, a victim of this scam and do not want to find myself facing a lawsuit by these vindictive individuals. After all of these years it finally seems the scam is unfolding. The modus operandi is all the same: 1) advertise to customers it’s insurance; 2) make large commissions – more than legitimate insurance companies offer; 3) threaten and sue customers who speak out about the illegal nature of the product; 4) tell the authorities it wasn’t insurance, but a protection contract.

    Now it’s time to get to the root of the problem. Was it the travel agents who were duped? If so, that’s no excuse and they deserve their punishment, but maybe it’s this search engine, Revelex where it all began. Someone needs to find out. Questioning the travel agents may be the best avenue, Chris. I bet you could get several of them to join you in a counter suit against the responsible party for marketing this fake insurance.

  • George Fleming

    Let me try to understand this. Al Ferguson of Legendary Journeys, by his own admission booked illegal insurance through the search engine, Revelex. The page 4 footnote in the lawsuit, Revelex v. World Travel Holdings, Inc. indicates that Revelex owns 50% of Smart Travel Group. Smart Travel Group is part of Lee Smolinski’s empire of companies that includes Smartcruiser.com and Palm Coast Travel. Florida’s Department of Financial Services admonished Smolinski’s companies for selling illegal insurance. So, did Smolinski have a hand in the sale of illegal insurance through Ferguson’s Legendary Journeys? If so, what about Best Price Cruises and all the other agencies that are on the hot seat? Did they book through Revelex? If so, then they actually were being assisted in the sale of illegal insurance by their very own fellow travel agency – Palm Coast Travel. A tangled web indeed.

  • A Fightin’ Irishman

    @George
    Very interesting observation. If I was an agency owner and got caught selling these illegal insurance policies I would pursue action against the vendor. It appears from your analysis based on Legendary Journeys’ statement, the vendor may also be Revelex as a middleman for Prime Travel Protection. A previous poster included a website that showed Revelex advertised another illegal insurance product, Trip Assured. This smells like a big lawsuit to me. There are so many legal issues here. Did the travel agencies that purchased through Revelex know another travel agency owner may have had an interest in Revelex? How many agencies purchased illegal insurance through Revelex? Lots of questions. Chris, you need to start asking these questions. If Revelex owns half of Smart Travel then indirectly you are being sued by them. Have your attorney issue a non-party subpoena for records.
    Better yet, I’d make them a party in a counter-suit. I’m sure your attorney will get dozens of calls from travel agencies who may want to commence their own lawsuits.

    “IRISH FOOTBAL IS BACK IN 2010″

  • Frankie Leo

    @George Fleming:
    Wow, George! That’s some explanation. I’m still trying to get my brain around it. The best explanation that I can come up with in order to help me understand is that If Lee Smolinski was Robin Hood, he’d rob from the rich AND the poor, and keep the loot himself.
    Is that close?

  • Cliff Sousa

    Better watch those comments, Frankie. Mr. Smolinski will sue you, too!

    What I would like to know is the actual relationship with Smolinski and Revelex. That public document shows Revelex owns half of Smart Travel Group so there is some kind of ownership interest. Legendary Journeys’ Al Ferguson surfs this board and he did mention his clients’ insurance came through the Revelex site. Maybe Al can shed some light on this tangled web.

  • JoeM1929

    @Chris
    You might be interested to learn about another lawsuit Smolinski and Associates DBA Palm Coast Travel were involved in nearly 11 years ago. Palm Coast Travel was named as a counter-defendant in a lawsuit filed by Continental Airlines in federal court in West Palm Beach (Case #99-8318). Continental Airlines claimed Mr. Smolinski and his wife were involved in “a fraudulent scheme involving the frequent flyer miles program, by arranging for the improper purchase of frequent flyer miles and rewards from airline customers, that were then sold or bartered in the form of upgrades to other airline customers, in violation of counter-plaintiff’s (Continental Airlines) rules and regulations”.
    No mention of the type of insurance he sold along with the frequent flier miles.

    from JoeM1929

  • Ronda

    good luck, from the information concerning the suit you already have up, I think its fairly safe to say that the case will be thrown out. it sounds like a really stupid suit, its obvious they’re just trying to make money.