I Won’t Be Sued Into Silence
By Dianne Jacob
Wednesday, April 16, 2008 | I was sued by the owner of the Los Angeles Times for speaking my mind about the business practices of one his companies, ironic because people involved in journalism are usually fierce defenders of free speech.
Sam Zell’s Manufactured Home Communities -- now operating under the name Equity Lifestyle Properties, Inc. -- owns and operates more than 300 mobile home parks in 28 states, including four parks in the district I represent.
At first, it was difficult to take Zell or his lawsuit seriously. There’s something amusing about being sued for defamation by an individual who calls himself the “grave dancer.”
Indeed, a U.S. District Court judge determined the suit had no merit and bounced it out of court.
Later, however, when Zell’s lawyers appealed the case to the 9th U.S. Circuit Court of Appeals, I came to suspect that MHC’s lawsuit wasn’t really about my negative remarks.
Today, weeks after the appeals court dismissed all but a small piece of the case against me, I am convinced that Zell is using our judicial system to bully me and intimidate those who dare question how MHC treats its customers.
In my district, Zell’s customers are my constituents. In 2002, when MHC raised their rents some 25 percent, my constituents came to me in fear. Many were fixed-income seniors petrified of losing their homes in an already tight housing market.
I did my homework and learned a great deal about the landlord behind the increase, a billionaire real estate titan with a deep disdain for bureaucracy, well known to the financial world as a "vulture investor."
Above all, I read about his company's parade of lawsuits slapped against various California municipalities to repeal rent control ordinances, including protracted cases against the cities of Santa Cruz, Santee and San Rafael.
Yet, MHC’s claims against me are different from its other lawsuits. San Diego County doesn't have a rent control ordinance and has shown no interest in pursuing one.
At issue in my case is the "provability" of three remarks I made after MHC’s rent increase was announced: that our local district attorney was interested in looking into MHC’s activities, that MHC lied about fixing a sewage leak in one of its parks and that MHC has a reputation of running people out of older mobile home parks.
This column is an overdue message to seniors in Zell-owned mobile home parks who continue to challenge his exorbitant rent increases, to ethical park owners not afraid to say, out loud, that MHC gives their industry a bad name by crossing the line between profit and plunder and to journalists who continue to cover Zell's activities in the face of hostile depositions and legal fees.
I stand behind my three remarks about Mr. Zell’s company. I'm not afraid of him or his high-priced attorneys.
What I am afraid of is the notion that I don’t have a right to publicly air my opinion of Mr. Zell's business practices. I'm doubly afraid of the message this sends to Americans like me, Americans who speak out when they believe they see wrongdoing, Americans who can't afford to use the legal system as their own personal intimidator.
If I could go back to 2002, I would add one more remark to my list of complaints against MHC. In my opinion, Zell’s company uses the court system to crush jurisdictions that stand in the way of its profits. When MHC doesn’t win on merit, the company tries to price the defendant out of the judicial process with expensive litigation. The city of San Jose, the county of San Luis Obispo and the city of Santee are intimately familiar with this tactic.
MHC’s doctrine of death-by-a-thousand-legal-appeals especially exploits the limited financial resources of cities and counties. Is it lost on Zell that by weighting down our legal system with lawsuits designed to prolong rather than to resolve, he is actually a party to the bloated bureaucracy he so despises?
Zell’s lawyers have called my comments "harmful coming from a powerful local official," and to prevail, they will need to prove that harm in court.
It’s hard for me to believe that my remarks were much of a threat to a man that Forbes lists as the 52nd richest person in America, and I’m prepared to defend my words because I don’t want others sued into silence. More than ever, I believe that MHC does bad business and, in America, I have every right to say so.
Dianne Jacob represents the Second District on the San Diego County Board of Supervisors. Her district encompasses the eastern portion of San Diego County. She said she submitted this piece to the LA Times, which declined to publish it. What do you think about what she wrote? Send your perspective to share with our readers.
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Comments so far on this story: 1. Zell is Bad News wrote on April 15, 2008 8:59 PM:
"Diane, this is pure lawsuit abuse. It is plain and simple and must be stopped. I am glad you are speaking out because this company has been trying to bankrupt Santee over its rent control ordinance for years. They are bullies and they prey on seniors. Why do you think they changed their name? I think the County should have a rent control ordinance because of greedy goliaths like this. Don't give up!" 2. Jack Griffiths wrote on April 16, 2008 6:54 AM:
"Anyone acquainted with this Supervisor knows that Mr Zell will come to regret his application of litigation in his self serving attempt at censorship of this good Lady. As Mahatma Ghandi said: One has no control over the reciprocity of violence one initiates: In this case MHC/Zell may have unleashed a world wind of justifiable redress and righteous rectification. The Supervior is well known for both her in-depth research and her unparalled tenacity, especially,in defense of her constituencies and-or a just cause. Out of sympathy for the sinner but not the sin I have but one word in warning to Mr Zell: !DUCK!" 3. JR wrote on April 16, 2008 8:08 AM:
"Dianne, sorry to hear of your distress, though perhaps you now have a sense of what some reporters feel when your fellow Soop, Roberts, has some reporters ejected from hearings without so much as a murmur from them if he or others don't like the papers they work for. Censorship is a two way street to nowhere and as the poster above stated, one has no control over the reciprocity of violence one initiates. I suggest you and the others get cracking on that rent control ordinance and give the old sonofabeehive something to spend his fortune on, pronto." 4. Concerned About Freedom of Spe wrote on April 16, 2008 8:37 AM:
"Would this be considered a SLAP suit?" 5. Rocky wrote on April 16, 2008 8:53 AM:
"Check out the mess on Mission Gorge Road and see what's happening to the mobile home parks there. Santee is fast becoming the poster child of over building stemmed by Greed. The Bulldozers are on a roll and the east county is their playground. Just look what's taking place on Rattlesnake Mountain that over looks the once country villages of both El Cajon and Santee. What's next? Gillespie field? Just look at all the condo's that could sprout up on that now flattening open space where the El Cajon Race Track once stood. Yes, like the Bulldozers, Greed is on a roll and the push is "Eastward Ho." It's an "Out of control" situation and the problem is, we just don't have enough Dianne Jacob's at the helm to curb these "Moguls of Mayhem. Next you will be tell me they want to put a freeway through Santee." 6. SLAPPed? wrote on April 16, 2008 9:02 AM:
"Sounds like a SLAPP suit. California law prohibits these whittle-the-defense' type of suits. Curious to know if Dianne Jacob's counsel has pursued an anti-SLAPP action." 7. eastcountyresident wrote on April 16, 2008 9:24 AM:
"Funny how you bemoan the litigation process in this instance yet use the same tactics when denying medical services to the poor in San Diego County. As well, you have used litigation to circumvent the democratic process with regard to the medical marijuana issue. You are talking out of both sides of your mouth Dianne." 8. Christopher Hall wrote on April 16, 2008 9:45 AM:
"I would hope that this injustice as we have seen it described here will symbolize the fight for justice elsewhere in the county supervisors' efforts to benefit the general public. I would love to think that the people have a tenacious leader fighting for their rights and seeking justice for all. Please show us how you can take those minority special interests and eviscerate them, starting with land use abuse, labor abuse, food and fuel profiteering, corporate manipulation of public utilities, 'dumb' development growth, water use and abuse and the poor planning of transit and transportation, region wide." 9. KensingtonDreams wrote on April 16, 2008 10:25 AM:
"As a resident who has been poorly represented by Toni Atkins on the City Council, I am insanely jealous after reading this. I commend Dianne Jacob for always fighting for her constituents and speaking out for them. I still don't want to move to East County but her people are fortunate." 10. Maura Larkins wrote on April 16, 2008 10:46 AM:
"Harvard University has started a data bank of lawsuits that are filed for the purpose of stifling freedom of speech. The Citizen Media Law Project website can be found at link If we Americans want to keep our freedom to publicly discuss matters of public interest, we will have to fight for it. Go, Dianne!" 11. park resident wrote on April 16, 2008 12:19 PM:
"Dianne, everything you have written is TRUE -- If anything, it is UNDERstated. Good luck with your case and ask if you need anything from people like myself for your case. Truth is that I too have experienced the wrath of ELS and been to court (AND WON EVERY POINT) when I availed myself of my rights. You have stated the situation very well. THANK YOU for speaking out!!!" 12. Howiek wrote on April 16, 2008 1:53 PM:
"Uh Rocky! In case you hadn’t noticed, Hwy 52 IS going through Santee, sure looks like a freeway to me—only twenty years late!" 13. Rocky wrote on April 16, 2008 3:36 PM:
"You missed my humor Howiek. First come the Bulldozers and up go the houses, condos and Starbucks. Then the Bulldozers hang around and in goes the freeways. Yet my friend we still have them thar potholes, gridlock traffic, and more polluted air in what once was the country. You just can't beat progress. And its 20 years late?" 14. Billy Bob Henry wrote on April 16, 2008 5:13 PM:
"Classic SLAPP lawsuit and it should have been bounced on the first response/answer by Dianne Jacobs. Link here folks; link and here is how to defend against a SLAPP lawsuit; link" 15. Que? wrote on April 16, 2008 8:36 PM:
"I don't think a public official making unfounded claims agianst a company to "bully" them are considered freedom of speech. Let's see the cost of everything is going up. Good luck holding onto 1950's financial mentalities. I remember when a candy bar was 5 cents. But I am not slandering Mars or Hershey's over it am I?" 16. Que? wrote on April 16, 2008 8:36 PM:
"I don't think a public official making unfounded claims agianst a company to "bully" them are considered freedom of speech. Let's see the cost of everything is going up. Good luck holding onto 1950's financial mentalities. I remember when a candy bar was 5 cents. But I am not slandering Mars or Hershey's over it am I?" 17. Que? wrote on April 16, 2008 8:36 PM:
"I don't think a public official making unfounded claims agianst a company to "bully" them are considered freedom of speech. Let's see the cost of everything is going up. Good luck holding onto 1950's financial mentalities. I remember when a candy bar was 5 cents. But I am not slandering Mars or Hershey's over it am I?" 18. Owner wrote on April 17, 2008 6:29 PM:
"Say what you will ELS has been constantly tormented by onerous rent control laws that seek to make private citizens subsidize cheap housing. Not everybody can afford to live within 20 miles of the Pacific Ocean, too bad there is pleny of cheap housing in the Valley between Fresno and Bakersfield." 19. San Marcos Says, wrote on April 18, 2008 7:58 AM:
"If I have one wish, it would be for you, Diane Jacobs, to represent those of us in North County who are seriously under-represented. Your depth of passion and integrity is well-known and would be welcomed. We have problems, and many of them are similar to yours. There are many other ways that the power-brokers can wreak their havoc on citizens. Please check the VOSD letter written by a former resident in one of the MHC/Zell parks, who now lives in Illinois. Zell is famous for doing what he is doing to you. Freedom of speech is alive and well and we all have the rights granted to us by our forefathers. Do NOT let him/them stop you from speaking out about injustice. Redevelopment has got to stop, too, before it ruins every neighborhood. Thanks again !" 20. Billy Bob Henry wrote on April 18, 2008 8:07 AM:
"17. Que? wrote on April 16, 2008 8:36 PM: "I don't think a public official making unfounded claims agianst a company to "bully" them are considered freedom of speech.............. Then you getter go back to law school junior and retake con law I. Opinion speech, IS protected, and the fact is a "public" official or company, such as Zell and ELS have a significant and high burden to meet for a defamation lawsuit. Hope this helps. BTW congrats to Dianne for making the LA Times this morning! Link; link" 21. Bonnie wrote on April 19, 2008 9:32 AM:
"Looks like each time Jacobs speaks Sam will be amending his Complaint. So the process will continue to be long and drawn out. It doesn't smell like SLAPP to me, but I'm not a lawyer." 22. Sad to See wrote on April 19, 2008 1:35 PM:
"Good for you Diane! Are you paying the legal bills for defending these lawsuits or does it come from taxpayer funds? In my town, Heaven help a business owner or citizen who opposes the Council majority's (and their big development campaign contributor's) radical neighborhood-destroy redevelopment schemes. They can be assured they'll be inspected into oblivion by the code enforcement department, Storm-Water Runoff Inspectors, as well as receiving surprise visits from a variety of regulatory agencies acting on anonymous tips. Yes, tyranny is alive and well in San Marcos and it ears the face of local government officials and fifty of their closest cronies." 23. Parker Roberts wrote on May 12, 2008 5:33 PM:
"As a terminally pissed off MHC park resident here in coastal Delaware I fully admire Dianes Jacob's noble plight to slam the "money beast" down to soul-cleansing legal ground. He really needs this healing therapy otherwise how else would a junk investment billionaire have a moral point of reference?? Alas, however, creatures of his ilk never quite grasp the soothing benfits of a losing lawsuit. There are many Sam Zells in this world and for obvious reasons they all come complete with the obligatory army of attack attorneys. Anyway,it is unfortunate to learn that the good residents of Southern California are going through the same legal crap shoot with this lawyer infested egotist as we have here in Delaware. Our rent cap suit (and it was a fair one) was shot down by the local 'good old boys' club of investment politicians and a wimpy judge."
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