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Miami real estate blogger sued for $25 million

Real estate bloggers: practice diligence with what you publish on your blog! If you claim something inaccurately and it causes injury to a person, you may be sued for libel. In response to a claim of libel, blogger Lucas Lechuga was let go by his brokerage and is currently being sued for $25 million (see CBS video).

According to the video, legal experts disagree about whether or not you can be held liable for something you post on your blog.

I believe I met Lucas in New York at Inman Connect a few weeks ago, and remember him to be a nice guy. I wish him the best in resolving this issue.

"Libel" is defined as "an untruthful statement about a person, published in writing or through broadcast media, that injures the person's reputation or standing in the community. Because libel is a tort (a civil wrong), the injured person can bring a lawsuit against the person who made the false statement."

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Lucas' Blog (Talk about great link bait!!)

Miami Herald

4realz.net

___Related Links___

Historical blogger libel case

Posted by Jonathan Washburn on 01/29/2008 04:05 PM

Comments (89)

Originally posted at: jonwashburn: Miami real estate blogger sued for $25 million

89 Comments on Miami real estate blogger sued for $25 million

JAN

2008

YIKES!

My attorney is on retainer.

Jonathan- How scary is that! I watched the video and I know the development and I guess I am going to have to keep my opinion to myself so I don't get sued. I thought that opinion is free to express but not distortion of facts. Opinions and facts are two different things. I hope the judge rules in Lucas' favor. Katerina

This will be an interesting case to follow. The internet is opening up all new territory and things are constantly changing. I hope that people will still be able to express their opinions and given free speech, not that they should use it to spread lies or hurt others though. I think that Lucas had some misinfomation and mistakes happen but unless the developer can show malicious intent, his slow business is not totally due to the blog and he should not be made to pay. Of course, I only know the information that was in that 2 minute newscast as well. That's my .02! Thanks for sharing!

Very worrisome. However, as long as you can verify your facts you should be Ok. I just wrote a blog but i ommited all names, but maybe I should get Kirks' attorney on retainer.

It's open season on Realtors.

Very interesting. I'm sure this case will be watched closely. It is extremely important to be accurate even when stating an opinion.

Losers! People who resort to suing like this have way to much time on their hands. "in my opinion"...don't want to be added to the lawsuit :)

This is all new territory as far as the law goes(so I am told). It will be interesting to see what happens in this case. My understanding is as Nestor and Katerina stated above, opinions are one thing, distortion of facts and malicious intent is another. I am sure there will be laws that will be put in effect regarding these issues as cases go through the courts. Currently there is an awareness campaign heavily broad-casted on the radio about preventing cyber bullying. It is actually very alarming. This is still the new frontier.

Thanks, Jonathan. I watched the video. I see where Mr. Lechuga may have crossed a line but not defining his use of a term that is commonly used in a specific manner. I guess if we do an expose, we better have the facts and terminology down excruciatingly clear and faultless. And, if we have our position and facts down clear and faultless, we should give the blog another 5 minutes before hitting send--just to question our personal version of truth.

Isn't is unfortunate?

Scary stuff and certainly makes you think twice about what you write! Great tip, thanks!

Of course we should all be careful about what we say. Duh. The internet does not forget. "If you don't have anything nice to say..."

I haven't met Lucas but I did talk to him this past summer - he showed a listing of mine on Brickell Key. I am very curious as to why the developer thinks they have a legitimate case against the agent.

1. I hope (for the developer's sake) that libel pertains to entities, not only people. Otherwise this goes out the window.

2. The agent gave his opinion on his belief of the standing of the building based on his clients trying to get out as well as on knowledge of buyers suing to get out. How does that qualify as libel? Does anyone ever watch CNBC? "Experts" are brought on board all the time to provide their opinions....I can't imagine they're right every time, does that mean lawsuits should follow?

The Miami condo market has been hit hard and a number of projects are either failing, going to fail or never even make it off the ground. We talk about this regularly, not just agents but the Miami-Dade and Broward populations. Does that mean we want to see them fail? I know I don't. But it's an unfortunate fact that some are. I've read articles about Met, Club and I believe One having issues. Should the publishing entities be sued? I feel that before going the litigious route, one needs to be sure that the accused isn't within 1st Amendment rights. From what I've read so far, I'm not sure the agent was out of bounds. Of course I'd need to read the original blog first.

"Going bankrupt does not necessarily mean filing..."

???? What planet does that come from? The implication of going bankrupt has specific meaning in most conversation, IMO.

Irresponsible. And difficult to see how that irresponsibility is a 1st Amendment right.

And where I live and work, a licensee is held to a higher standard.

I know agency can be practiced in a variety of ways in different states, but North Carolina puts me in the default position of representing the Seller, with the exception of folks who have signed up for Buyer's Agency with me. That is how I approach blogging about real estate.

Does this feller have a Buyer's Agency agreement with his entire readership? Or is Florida law significantly different?

I'll take a stab at this: a planet where "going bankrupt" does not necessarily mean filing. A place such as......oh Earth.

I don't know the facts, but everyone wants to blame and make someone else pay for their misfortune. Every since the McDonald's lawsuit of 1994, I felt anyone can be a victim without cause.

And since Enron? Take your retirement funds and bury them in the yard like my grandparents did.

Tara - I agree with what you've written. Our market has been hit very hard and it does stink for us. But I can't believe this agent has had any real effect on Opera. In my opinion, the building is located in a nice area with some pretty good views. It's mainly the market. Call it bad luck if you will.

Jonathan,
We will have to watch this to see how it plays out. We walk around with a target on our backs.

Interesting story and this certainly needs to be followed with updates. I particularly found this statement interesting:

''I viewed these statements to be more negative in tone than just providing information,'' Shuffield said, adding the firm wouldn't have hired Lechuga had it known about the blog."

Something to think about....

Yikes! I am always conscious about what I write. Remember, it can be used against us.

Jonathan,
Thanks for blogging about this.
We have to be so careful how we word things, especially when speaking about someone or a group of someones.....good lesson for us all, just sorry that he is facing this in his life right now.

Jo

This is why you need to stick to the facts. You can voice your opinion but better not get the facts wrong

I knew this day was coming....I have read many cases...this is the first real estate lawsuit...I have heard about...I imagine there will be more....I check frequently...why because I am concerned for others...others who write as if they in fact do not have to follow Code of Ethics or real estate law.

Malicious intent...I have heard that before....seems sometimes the court of law does not even consider this! I wish this gentleman lots of luck and in my mind let it be a lesson for others who think they can write anything...without any type of consequences...

As transaction brokers....we present fact...not opinion...I know it's Florida law...but let it be a lesson...you take a huge risk for your own personal opinions...when pertaining to real estate and other financial matters.

I do hope that NAR gets involved and sets some true guidelines for blogging.

It can't be stressed enough.....manners...respect....and facts! In my mind...if you can't or won't say it to someone face to face...don't let the keyboard give you virtual guts....it can backfire!

OUCH! Thanks for posting this

I included a link in my blog post about this story that really should be required reading by any real estate blogger. It's a great FAQ on defamation (and other legal aspects of blogging).

I remember making a comment about this during Project Blogger. I really wasn't thinking of the litigation outcome at the time, but that is a logical path.

On the other hand, how many reporters would be fired for printing the same article?

What a ahame we all need to be a little careful of what we think while typing.

Jon, It has been my observation that a lot of bloggers, especially the ones who got started early, think they can say anything they want. Libel laws are very well established and defined. There is a whole body of case law that parses "intent" and "damage." I don't know the "state" of the law in Florida, but I would think that he might lose but damages might be small.

I'm curious what your take on this is vis-a-vis AR's exposure as a publisher.

Bill Roberts

BTW there is also the issue of a broker's responsibility for the blog of his salespeople.

My grandmother always said that a hit dog will bark everytime.

"legal experts disagree about whether or not you can be held liable for something you post on your blog..." Really? I find that hard to believe. Liable is liable. I don't have a clue whether this guy is righ or wrong, but I'm having a hard time understanding, in principle, how illegal behavior suddenly becomes legal if it's done on a blog. That's a ridiculous concept to me.

Well I would think that they have to prove that his blog directly effected the sales on that complex and I think that's going to be hard to do.

With regards to saying what he believed is facts about the builder, I don't know. Does this mean we'll be sued every-time we share our personal thoughts and opinions with the public regardless of the platform?

Jeff - I don't think there's any issue that an otherwise illegal act becomes legal if done on a blog. That's a losing proposition. The issue is if anything illegal has been done at all. From what I've read, I don't see that having happened. But as is usually the case, there are 3 sides to every story.

I read it here first, thanks Jonathan "Scoop" Washburn!

Isn't the confusion that no bloggers have yet been sued (much... yet. ) Of course you are liable for what you write but that you are not responsible for the opinions of the foaming at the mouth folks that leave comments on your blog*... but are responsible for your own opinions and statements in your blog of course and any foaming at the mouth comments you leave on others blogs libeling (slandering) others.

Do I have this right... He was not with EWM (brokerage?) when he wrote it? But EWM is being sued... deep pockets?

Will the traffic on our blogs go up? Brokers looking for problems? Attorneys looking for libel to sue over...

While unfortunate, hopefully this will give AR bloggers pause and encourage more diligence in future posts.

Scary stuff -- It will be interesting to see how all of this plays out. . .

Jonathan ...all the more reason to watch what you write! I saw it this morning on Twitter and watched the video in total amazement.

Thanks for sharing this news. I've always known to be careful about what I say, once it's out of your mouth you can't take it back. Blogging is impossible to reverse, and you can't control anyone else's opinions or words, so it pays to watch your own. It will be interesting to see how this pans out.

wow - blogging leading to a suit - I know you have to use common sense, but here is real food for thought!

Tchaka... I've read the posts and watched the video. I'm not here to debate whether the blogger did or didn't do something wrong. I'm reacting to the notion that blogging changes the playing field with respect to what we can and should be held accountable for. I think we agree on that point. It does not.

Unfortunate for Lucas.

Seems lately people who are insecure in their own business are suing others with no basis for the suit. Unfortunately there will always be people like this and lawyers to represent them.

Ok,

I have a question here and something to possibly add:

Lucas wasn't with EWM at the time the post was published. Wouldn't his "old" broker be the one to be sued (along with Lucas)?

Thoughts?

I am sure the claim well be adjusted to address the other brokerage firm. Ya know probably just a fact of someone not doing their homework when they filed the papers.

I would absolutely think that the previous brokerage firm that he was employed with at the time of the post is going to be named. They name everyone and their mother... and of course their priority is the ones with the "deepest" pockets.

I still don't see this one standing up in a court of law. From what I read it sounds like he's being sued over his opinion. What ground does that have? Unless they take the ground of defamation of character or slander against the builder

Of course we have to be responsible for what we write and be factual... but come on what is this really about?

Jeff - Yes we do agree on that point.

Desiree - Your 3rd paragraph sums up my exact sentiments.

Jonathan...

It was just a matter of time before this happened.

Such a shame. It reflects so badly on all of us.

Of course it's going to set a precedent and that sucks.

TLW...ROAR!

Fascinating.

Seems that the builder is probably looking for deep pockets.

Shucks. Anyone can sue anyone for anything anytime. However, can they prove damages??? I wonder if that builder or developer can prove that the comments in that blog are the cause of his slow closings, if he has slow closings. Somehow, I doubt it. Who listens to real estate sales persons anyway??????????

I believe that what we write must be either factual or opinion and identified as such. We have the right to public opinion. But, if we publish what we state as fact, the facts had better be correct.

The writer on his blog would probably better present himself to the public by presenting his own skills and market knowledge rather than public publishing what should only be disclosed to a buyer client.

It's a stick wicket.

About the only person about whom it's really safe to write is youself.

I know I've gotten rather "exercised" when ActiveRain members wrongly accused me of writing posts about market areas where I had no knowledge or using a loction for my membership that wasn't true. I disputed those posts publicly because my reputation means a lot to me. Ask Sardi.

I withdrew from a very popular forum/blog because of the backbiting and sniping about members, namely me.

Blogging is good business and fun. However, don't have license to defame others unless we're ready to suffer the consequences.

I don't think the lawsuit will go anywhere, but I could be wrong. This builder is a somewhat of a public figure and they're almost fair game. Almost, but not quite.

Scary that sueing is the answere to everything and certainly makes you think twice about what you write!

THANKS, for posting this Jonathan, scary.

KT,

It`s not right for the Broker to terminate without giving this youngman a fair chance to defend himself in a court of law.

If I was EWM I`d pull the site down immediately.

I almost bought in that building...I met all the sales people there too. I'm sure there is two sides to the story and I bet the public would think otherwise but i wold agree by mentioning by name is a problem in the making.

Well, we will have to wait to know the facts -- and whether or not damages can be proven. However, I agree with Jeff Turner that the law is the law -- and it applies to blogs --

I just had another realtor blog accusing me of lying about my transactions last year. She had the nerve to blog without checking facts or knowing anything. I called her on it and posted my defense on line. She quickly removed her blog. I think you should be held responsible for what you blog because I just might not be as nice the 2nd time.

This is terrible. Thanks for posting.

Blogging can be dangerous! Like they say... "Every Rose has it's Thorn"

Wow, I am really not sure about all this. I have mixed feelings. maybe he did go a bit too far with his blog. But nothing to the tune of $25,000000 will be interesting watching this unfold...

Nothing amazes me these days!

Unfortunately for this developer, it seems they have created more exposure for the negative situation by escalating litigation. I bet they had no idea they would get involved in a discussion that involves so much more than the sale of condo units in Miami.

wow... guess we have to become more like the tabloids....and speak in third person or use phrases like "sources report" or " "a close friend stated..."

I'd have to go in and see what exactly was done by this gentlemen but my initial reaction is, "Great, another Sue happy happening...this should prove even more expensive for the rest of us."

On another note, I was kidding Lenn:-)

Jonathan,

I thought I read somewhere recently that 'bloggers' have been afforded the same privileges and freedoms as journalists!!! What goes here? I wouldn't want to have to fly under the radar!!! Thanks, Fran

Sara

You hit the nail on the head. Look at the news footage. They show his dark buildings and chronical his past financial issues. Not pretty.

I’ve been following this story very closely and have been reading the various blog posts about the matter at hand. Take a look at the link below. The National Association of Realtors (NAR) has decided to cover the story. However, in their blog post they stated that “On Monday, Esslinger-Wooten-Maxwell fired Hollo”. As some of you may already know by following this story, Hollo is the developer. He was not fired by EWM. Lechuga, the local Miami Realtor, was fired by EWM. This, in itself, could become a cause for a lawsuit against NAR. It was likely just a typo but one that could potentially mean a lawsuit against NAR for defamation of character by the developer. This blogging thing could get out of hand very quickly.

http://www.realtor.org/RMODaily.nsf/pages/News2008012902?OpenDocument&WT.cg_n=RMO&WT.cg_s=RSSDaily

If the developer is a public figure, and he very well might be, it will be extremely difficult to win this suit.

I just posted on this case from a legal perspective.

http://tinyurl.com/2uuale

Bloggers would be wise to put a bold disclaimer on all posts that all blog posts are the opinion of the agent and NOT the broker. Brokers and agents should also check with their E&O carriers for insurance coverage.

I've actually taken a look at the said agent's website. He actually has a disclaimer at the very, very, very, very, very bottom of his website. Probably too minuscule for anyone to notice but it is still there. In that disclaimer, he does state that the views of the author are not endorsed by his brokerage. Something along those lines. I'll need to refer back to that again to be sure but I'm pretty sure that it is something along those lines.

Oh yikes.... that looks ugly. Bad thing is no matter who is right or wrong everybody will pay.

I believe he joined the agency (that just let him go) less than a month after writing the post that started everything. Whatever he'd written could have been found with quick scan through his blog going back less than a month... whatever it was (I don't know the whole story), it didn't prevent the agency from taking him on as their representaive at the time.

How incredible is that? This will surely be a story to keep an eye on.It's even more important than ever to be sure your facts are straight before stating something in a blog. I really hope this case turns out well for this blogger...and the rest of us.

He actually wrote the post in November. He didn't join his new brokerage until December. That's how I understand it, at least from reading the RE.net postings from him and others. There are so many inaccuracies though in this ongoing saga. I'm not sure who to believe. (Disclosure: This is just the belief of a commentator....any inaccuracies are not my responsibility).

Jonathan - please keep us all posted as this case progresses. Thanks for bringing this situation to our attention.

This is the first I've heard about this. Scary!

If the blogger is in danger, it would be for not backing off of his opinion when it was shown to be faulty. He can't get into trouble for saying that he thinks that the guy's business may go into the toilet, but to say that he went bankrupt when he didn't is a different matter.

I'm going to have to pay attention to this one.

Jonathan,

I'm glad you pointed out this story. It's a good reminder to watch what we blog about and be mindful there can be consequences.

As usual "big money begets big problems". I believe Lenn Harley said it best in her comment. It is only safe to write about yourself. But then who would listen?

JAN

2008

Great commentary! I'm not going to comment on whether I feel anyone is right or wrong...because, in the end, this is just a blog. Everyone has the right to their opinion on a blog. I value these opinions. Enough Said!

Interesting...

Wording is everything and also on a public arena such as this REAL estate network I know I try to mind my matters. Too often the ego gets in the way of common sense and the bashing and in this case 'slander' is not really the way to go. A reminder I'm sure.

Sally

I have to step in here: It hasn't yet been decided if Lucas did or did not "slander," that is for a court to decide. I hope that you are not acting as a judge/jury here. He is the one of the most widely-read and smart guys you'll ever meet.

Sally are you saying that Lucas "slandered" someone? Because if you did, you wouldn't really be following your own words of wisdom...'slander' is not really the way to go. A reminder I'm sure.

It's a fine line, and you may have just stepped over that line, no?

Kevin,

Thank you! Let the courts decide if I slandered anyone. If I in fact I did slander someone, then I will pay the consequences. I still have not been served with a court order. That is a FACT! I find it a bit upsetting that people are saying that I slandered somebody when that fact has not been proven. Most of you don't even know what is involved in this court case, nor have read the actual complaint. If this lawsuit ends up being thrown out of court, which I think it will, I will absolutely be upset by some of the comments made above. It will likely lose me business because several people have stated that I slandered somebody. The Internet does not forgive. Anything stated on the Internet remains for eternity. If a future client Googles my name and they happen to come across this post, and decide not to work with me, then for sure I will be upset. Let the courts decide and let's not say that I slandered somebody when the fact of the matter is that nothing has been decided. I haven't even been served yet!

My pleasure.

Let's not confuse libel with slander. I do not see any way Lucas can be successfully charged with slander. I'm not convinced they can with libel either, but that's for the courts to decide.

Thanks for posting this. Of course we are held liable for what we blog about. Not sure where the legal experts are coming from that disagree with that.

I think at issue is the phrase going bankrupt. I do think there is a common idiom where people will say "It's bankrupting me, or I'm going bankrupt," but not actually mean they are filing bankruptcy. Bankrupt is a verb (how the blogger used it) vs. a noun (implying bankruptcy). Look it up in the dictionary. Semantics is everything. I really don't see how the developer is going to win this one. How the heck he is coming up with $25M is beyond me? Not that Lucas isn't a good blogger, but he really thinks that one comment caused him $25M in damages? Hello, the market sucks!!

Seems Lucas would have a case for damages due to the lawsuit. I mean he is the one who lost his job and is getting defamed in the news. In a year from now, all clients are going to remember is that some real estate agent Lucas guy got sued. They aren't going to remember the details or if it was valid. I hope he gets a big apology from the developer on the front page of the newspaper. :)

Now having done, my rant, I do think we need to be careful about what we say about specific builders and our clients for that matter. I email my clients blogs that are about them, if I am remotely concerned that they would be offended. My clients know I blog, and they actually will say "well this situation is a blog topic for you" or "please don't blog about this (and I don't)." Blogging is a great thing. Common decency will get you a long way, in my book.

Aaaah, preach on Melina. It's good to read from someone with sense about them!

BTW, I was in Brickell Key this afternoon and sat down with a broker to discuss the state of the area and it's not good. He's not a doom and gloom type, merely stating what he's noticed from sellers and potential buyers. There a number of buildings in the area that are having problems because buyers are backing out and forfeiting their deposits. Since no one is buying and units are going into foreclosure, appraisers are not able to get high values, thus making it even more expensive for the buyers to close. Opera is in the same boat as those buildings. As I mentioned before, it's the market down here, not the blogger.

yikes - better to be safe than sorry. Thanks for the link.

JAN

2008

Lucas- I am glad you came on here to read the comments. I hope you win this case and counter sued for damages, you are the one who has damages. Please keep us informed as to how it goes. I am sorry that you have to defend yourself against fellow bloggers. It does not matter who you are, you have the right to your opinion and the right to express it. The market is so bad for condos in Miami and attorneys are starting up new niche; getting buyers out of condo contracts. I just read an article about this building in the South FLorida Business Journal and the journal is not getting sued! What is up with that! Where is the ACLU when you need them? Katerina

Fortunately truth remains an absolute defense against both libel and slander actions.

FEB

2008

The truth is your defense, granted. But once the judge has banged the gavel and awarded someone $25M, it becomes your burden (and expense) to appeal that ruling, with no assurance that a Court of Appeals will even hear it.

MAR

2008

Common! So what about the consumer reports for cars. Do the car companies sue the people who report which ones are considered the "worse", and can those car companies really pin point their sales based on the consumer reports that get published. I don't think so.

I think in retrospect that developer is killing his own business and the agent will eventually make a killing off the publicity his getting from blogging and from the developer himself. I bet you there are a lot of consumers out there that will thank him for posting the comment and he will get that business.

As for the broker who fired the agent, so much for backing up your agent. Then again, that is expected of big companies who really have loyalty only to themselves and not the little people who make them big when good things happen.

I guess this REALLY is the land of opportunity. Who is the opportunist in this case? is for the courts to determine, but I side with the agent.

Your buddies are behind you more so than your company by posting the comments you see thus far. You won't lose your business as long as you come out learning out of this experience, and I think you already have.

Chin up!

JUN

2008

Yeah, I say he should not have said the guy was bankrupt if he wasn't but I agree, even if liable, the court would have to be able to prove damages. This is why these cases don't go far. You have to be able to document real damages directly connected to this statement. Good luck on that.

But blogger beware! I see more of a fair housing violation or something is the part to be aware of. I have read ridicuous staements about neighborhoods on forums from Realtors. Check your blogs and language.

FEB

This is why you should always back-up your information with resources (preferably with links). Presenting information this way takes the liability aspect off of you the blogger.

APR

It's sad how people don't value the real estate profession. It's no wonder why with all the so called "professionals" acting like children and talking about one another. If you have nothing nice to say, don't say anything at all! Lawsuits are poping up every wheres about real estate slander.

Here is a newspaper link with more professionals slandering.

http://www.leaderherald.com/page/content.detail/id/509510.html?nav=5011

MAY

Does anyone have an idea how this turned out?

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