March 19, 2001
The Palo Alto Daily News and its publishers have prevailed in a lawsuit filed against them, and the man who sued them, David Danforth, has been ordered to pay the newspaper’s arbitration fees.
Danforth, a disgruntled former worker and investor, sued the Daily News’ parent company, Priceless L.L.C., and the paper’s publishers, Dave Price and Jim Pavelich, over events going back to 1996.
Price and Pavelich dismissed Danforth in August 1996, about eight months after the paper started. Danforth hasn’t been involved in the newspaper since. In his lawsuit, Danforth sought money damages based on numerous complaints about how Price and Pavelich operated the newspaper company.
Danforth claimed in his lawsuit that Price and Pavelich published stories to benefit advertisers, and held other stories that might have offended advertisers. The arbitrator rejected those claims along with all other claims Danforth made in his 1999 lawsuit.
After four days of testimony, an arbitrator rejected all of Danforth’s allegations and ruled in favor of Price, Pavelich and Priceless L.L.C.
In addition, the arbitrator ordered Danforth to pay the arbitration costs of Price, Pavelich and the Daily News.
“We’re pleased by the ruling,” said Price. “It was a complete vindication of our newspaper. Danforth’s allegations were groundless.”