A Superior Court jury in San Luis Obispo County found two Cal Coast News writers libeled a hazardous-waste contractor when they accused him of illegal activity in a 2012 article, and are now responsible for $1.1 million in damages.
The defamation trial of Karen Velie and Daniel Blackburn, current and former co-owner of Cal Coast News, respectively, began last week and concluded with closing arguments Wednesday.
The case stems from a lawsuit filed by Charles Tenborg, past president of Arroyo Grande-based waste-management company Eco Solutions, which contracted with public agencies such as the San Luis Obispo County Integrated Waste Management Authority.
After Thursday’s verdict, Tenborg said he was “extremely relieved.”
“I’m ready to continue on with my life,” Tenborg said. “I plan on living here for the rest of my life, and these accusations were false — there were no sources and there was no evidence.”
Tenborg’s attorney, James Wagstaffe, said the verdict restores faith in local journalism.
“This is not a newspaper, this is an online rag sheet that sensationalizes,” Wagstaffe said. “And a local community can be terrorized by that activity. When there are false statements — I believe in the First Amendment, I believe in great investigative journalism. This was not that.”
Velie and Blackburn could not immediately be reached for comment, but one of their four defense attorneys, David Vogel, said the verdict was “disappointing.”
He said that two of the sources that the two used for the article have since died and another lived “outside the jurisdiction” and was unable to testify.
“I think the jury based its verdict in large part on the fact that we couldn’t produce those witnesses,” Vogel said.
He said he did not know what the jury award means for the future of the website, or whether Velie and Blackburn planned to now take the libelous article down. It remained online as of Thursday afternoon.
“I don’t know what their intent is at this point,” Vogel said.
Throughout the trial, Tenborg’s attorney, San Francisco-based James Wagstaffe, alleged the writers didn’t research easily verifiable facts or obtain appropriate records, seek sources with direct knowledge, or allow Tenborg a chance to defend himself against their allegations.
The article, “Hazardous waste chief skirts law,” alleges that Tenborg illegally received a no-bid contract with the Integrated Waste Management Authority (IWMA), had been fired from his previous position with the county, and was “encouraging (clients) to break state law.”
The article — which features photos of Tenborg and IWMA manager William Worrell, as well as a stock image of a yellow barrel labeled “Radioactive” — remains on the Cal Coast News website.
Tenborg was seeking more than $1 million in damages for loss of future revenue and at least $500,000 in punitive damages.
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Matt Fountain is a reporter with the San Luis Obispo Tribune. Contact him at mfountain@thetribunenews.com.