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Insurance Customer's 'Gripe Site' Is Protected Free Speech, Court Rules

A New Jersey man who launched a Web site criticizing his car insurance company cannot be sued for defamation because the statements included on the site are protected free speech, a judge in Manhattan has ruled.

Penn Warranty Corp. alleged in a complaint filed in New York County Supreme Court that defendant Ronald DiGiovanni defamed the company through a series of allegedly libelous statements.

But Justice Judith J. Gische said DiGiovanni has a right to maintain the "gripe site" because the challenged speech "is merely a statement of the defendant's personal opinion about the quality of services" provided by Penn Warranty.

In May 2000, the court's ruling explains, DiGiovanni agreed to a standard insurance contract with Penn Warranty for his 1994 GMC Sonoma truck. After Penn Warranty denied a claim filed by DiGiovanni under the service contract, DiGiovanni brought a small-claims action in New Jersey for breach of contract. The case settled for $2,500.

DiGiovanni then created www.pennwarrantylitigation.com, claiming that the company engaged in deceptive business practices. He maintained, among other things, that the insurer is a "crooked" and "blatantly dishonest company" that has "been ripping off its contract holders for quite a while" and "committing fraud on a grand scale."

Justice Gische said the statements on the now-defunct site, when viewed in their full context, show that DiGiovanni is a "disgruntled consumer" and "reflect his personal opinion based upon his personal dealing" with Penn Warranty.

"The statements are subjective expressions of consumer dissatisfaction with the plaintiff and the statements are not actionable because they are the defendant's personal opinion," Justice Gische wrote Oct. 28.

Penn Warranty also failed to persuade the court that it had lost any business as a result of DiGiovanni's actions.