Werner Erhard and Associates v. Christopher Cox for Congress
Encyclopedia
Werner Erhard and Associates v. Christopher Cox for Congress is a lawsuit that was filed in 1988 by the company Werner Erhard and Associates
Werner Erhard and Associates
Werner Erhard and Associates, also known as WE&A or as WEA, operated as a commercial entity from February 1981 until early 1991. It replaced Erhard Seminars Training, Inc. as the vehicle for marketing, selling and imparting the content of the est training, and offered what some people refer to as...

 and its owner Werner Erhard
Werner Erhard
Werner Hans Erhard is an author of transformational models and applications for individuals, groups, and organizations...

 (the founder of Erhard Seminars Training
Erhard Seminars Training
Erhard Seminars Training, an organization founded by Werner H. Erhard, offered a two-weekend course known officially as "The est Standard Training"...

, or "est") against then-Congressional candidate Christopher Cox and his campaign organization Christopher Cox for Congress. Cox's campaign sent out material which was critical of Rosenberg's ties to Erhard and Erhard's organizations. The mailer described Rosenberg as an "est advocate", and quoted a Los Angeles
Los Angeles (magazine)
Los Angeles magazine is a monthly regional magazine of national stature. Published by Emmis Communications and produced monthly since the spring of 1961, LA Magazine is a combination of award-winning feature writing, investigative reporting, service journalism, and design, the definitive resource...

magazine article which had said the Cult Awareness Network
Cult Awareness Network
The Cult Awareness Network was founded in the wake of the November 18, 1978 deaths of members of the group Peoples Temple and assassination of Congressman Leo J. Ryan in Jonestown, Guyana. CAN is now owned and operated by associates of the Church of Scientology, an organization that the original...

 described Erhard's organization as a "destructive cult
Destructive cult
A destructive cult is a religion or other group which has caused or has a high probability of causing harm to its own members or to others. Some researchers define "harm" in this case with a narrow focus, specifically groups which have deliberately physically injured or killed other individuals,...

". The Cox campaign mailer was compared by The Orange County Register
The Orange County Register
The Orange County Register is a daily newspaper published in Santa Ana, California. The Register is the flagship publication of Freedom Communications, Inc., which publishes 28 daily newspapers, 23 weekly newspapers, Coast magazine, and several related Internet sites.The Register is notable for its...

to that mailed out by the Badham campaign in the 1986 election. Cox's campaign also called citizens and asked them what they thought of a political candidate who had connections "with that cult est". Cox won the election in the Republican primary, with Irvine, California
Irvine, California
Irvine is a suburban incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28, 1971, the city has a population of 212,375 as of the 2010 census. However, the California...

 Councilman David Baker placing second and Rosenberg third. Cox went on to win the general election and become the next United States Representative from California's 40th congressional district
California's 40th congressional district
California's 40th congressional district is a congressional district in the U.S. state of California based in Orange County. The district covers cities in the northern part of the county, including Fullerton, Orange, Cypress, Stanton, and Buena Park....

.

On May 27, 1988, Werner Erhard and his organization Werner Erhard and Associates filed a lawsuit for $5 million in Orange County Superior Court against Christopher Cox and his campaign, claiming libel and slander. On December 6, 1988, Superior Court Commissioner
Superior Courts of California
The Superior Courts of California are the superior courts in the U.S. state of California with general jurisdiction to hear and decide any civil or criminal action which is not specially designated to be heard in some other court or before a government agency...

 Eleanor M. Palk issued a ruling dismissing the libel cause of action
Cause of action
In the law, a cause of action is a set of facts sufficient to justify a right to sue to obtain money, property, or the enforcement of a right against another party. The term also refers to the legal theory upon which a plaintiff brings suit...

, but did not dismiss the slander charges. On December 16, 1988, Palk ruled that Cox, his defense attorneys, and expert witnesses could view a 60-hour est organization videotape. Cox's attorneys had requested to view the video in order to determine if material contained in the tape could support expert witness
Expert witness
An expert witness, professional witness or judicial expert is a witness, who by virtue of education, training, skill, or experience, is believed to have expertise and specialised knowledge in a particular subject beyond that of the average person, sufficient that others may officially and legally...

 testimony from cult
Cult
The word cult in current popular usage usually refers to a group whose beliefs or practices are considered abnormal or bizarre. The word originally denoted a system of ritual practices...

 experts. On February 28, 1989, Werner Erhard chose to drop the charges of slander from his suit against Cox. Erhard's attorney's asserted this decision was made in order to expedite an appeal of the dismissal of the libel charges to the California Courts of Appeal. According to testimony given by Cox in his nomination hearing to become Chairman of the U.S. Securities and Exchange Commission, the case was dismissed with prejudice in 1992.

1986 campaign

In March 1986, Erhard's brother Nathan Rosenberg announced his intention to run for congress in Orange County, California
Orange County, California
Orange County is a county in the U.S. state of California. Its county seat is Santa Ana. As of the 2010 census, its population was 3,010,232, up from 2,846,293 at the 2000 census, making it the third most populous county in California, behind Los Angeles County and San Diego County...

. Rosenberg had spent years volunteering for Erhard-related organizations, including both Erhard Seminars Training
Erhard Seminars Training
Erhard Seminars Training, an organization founded by Werner H. Erhard, offered a two-weekend course known officially as "The est Standard Training"...

, and The Hunger Project
The Hunger Project
The Hunger Project is a 501 non-profit charitable organization incorporated in the state of California.The Hunger Project describes itself as an organization committed to the sustainable end of world hunger...

,
and served in key managerial roles. Rosenberg's political opponent in the primary campaign for California's 40th congressional district
California's 40th congressional district
California's 40th congressional district is a congressional district in the U.S. state of California based in Orange County. The district covers cities in the northern part of the county, including Fullerton, Orange, Cypress, Stanton, and Buena Park....

 was five-term incumbent member of the United States House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...

, Robert Badham
Robert Badham
Robert Edward Badham was an American politician. He was born in Los Angeles, California, graduated from Beverly Hills High School in 1947, and Stanford University in 1951...

. The Congressional Quarterly
Congressional Quarterly
Congressional Quarterly, Inc., or CQ, is a privately owned publishing company that produces a number of publications reporting primarily on the United States Congress...

 publication Politics in America described the 1986 race as "a significant primary challenge for the first time since he [Badham] initially ran for his seat". Writing in The Almanac of American Politics, authors Michael Barone and Grant Ujifusa described Rosenberg as "a fringe candidate who is the brother of est founder Werner Erhard". Rosenberg's decision to run against Badham was a move made against the Republican leadership.
Badham was critical of Rosenberg's ties to Erhard's organizations, referring to Rosenberg's run as a "tissue paper campaign". Badham stated to journalists during the campaign: "His [Rosenberg's] ties are terribly close to Erhard ... I would imagine [that Erhard's supposed promotion of his brother's candidacy] would be the outreach for power, the tenets of the est program: to create a different world by mind revolution. And that is ominous in scope." Badham described Rosenberg's campaign as a "front" for Erhard, and stated that est training techniques included "brainwashing". Badham publicized summaries of his tax return
Tax return
A tax return is a tax form that can be filed with a government body to declare liability for taxation in various countries:* Tax return * Tax return * Tax return * Tax return...

s, and requested that Rosenberg do likewise, stating "who is Nathan Rosenberg, who sent him here and where does he get his money?"

Badham characterized Erhard's organization as a "mind control
Mind control
Mind control refers to a process in which a group or individual "systematically uses unethically manipulative methods to persuade others to conform to the wishes of the manipulator, often to the detriment of the person being manipulated"...

 group", and his campaign sent out a mailer to 130,000 households in his district comparing it to the groups led by Bhagwan Shree Rajneesh and Jim Jones
Jim Jones
James Warren "Jim" Jones was the founder and leader of the Peoples Temple, which is best known for the November 18, 1978 mass suicide of 909 Temple members in Jonestown, Guyana along with the killings of five other people at a nearby airstrip.Jones was born in Indiana and started the Temple in...

. Werner Erhard and Associates filed a lawsuit against Badham regarding the mailer, Badham later retracted and publicly apologized for these statements after he was reelected, and the lawsuit was dropped.

Erhard and his brother both denied that there was anything untoward behind Rosenberg's campaign, and denied that it was influenced by Erhard or his companies. "There is no connection between my brother and his organization and this campaign," said Rosenberg. Rosenberg denied that he had ever served Erhard's organization as an "est trainer", though he had volunteered as a seminar leader for est and The Forum. Werner Erhard and Associates executive vice president Dr. Jack Mantos stated "If it becomes clear that at any point Nathan or any political candidate is subverting or using those kinds of resources, then maybe we'll put a stop to it. But at this point, it's purely coincidental that a lot of Nathan's friends have also done our programs. I am very clear that there is no corporate thrust, no corporate intent to support Nathan or any other candidate." A few weeks after Rosenberg filed his intent to run for Congress on March 7, 1986, his campaign had 200 volunteers.

An April 1986 article in the Los Angeles Times
Los Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....

described connections between Nathan Rosenberg's campaign for Congress and Erhard's organizations. Erhard and Rosenberg's brother, Harry Rosenberg, was on leave from his position as director of the national seminar program at Werner Erhard and Associates, in order to serve as Nathan Rosenberg's campaign manager.Harry Rosenberg acknowledged to the Los Angeles Times that approximately one quarter of the campaign's 200 volunteers came from Erhard's organizations. According to data from the Federal Elections Commission, 43% of donations to Nathan Rosenberg's total of US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

39,551 in campaign donations as of March 31, 1986 came from executives of Erhard's organization or individuals related to the est training or The Forum. Harry Rosenberg told the Los Angeles Times that $8,583 of the campaign contributions were given from 32 employees of Werner Erhard and Associates, and an additional $8,355 came from another 32 "volunteer seminar directors, seminar participants and one manager of The Hunger Project".

A résumé
Résumé
A résumé is a document used by individuals to present their background and skillsets. Résumés can be used for a variety of reasons but most often to secure new employment. A typical résumé contains a summary of relevant job experience and education...

 given out by Nathan Rosenberg on the day of a March 25, 1986 press conference about his political campaign neglected to include his involvement in Erhard's organizations. He later acknowledged that he had served in several roles in Erhard's organizations, including: National chairman for 300 "seminar directors", volunteer "seminar director" for both the est training and subsequently The Forum, "a very high-level volunteer" and "major contributor" and fund-raiser for The Hunger Project, and volunteer fund-raiser for the Breakthrough Foundation, a San Francisco organization founded by Erhard. When Rosenberg was asked by the Los Angeles Times why he did not initially list this information on his résumé, he asserted that these connections were not relevant.

In June 1986, Badham defeated Rosenberg in the election by a wide margin, and Badham announced his victory early when only the absentee ballot
Absentee ballot
An absentee ballot is a vote cast by someone who is unable or unwilling to attend the official polling station. Numerous methods have been devised to facilitate this...

s had yet been counted. Rosenberg had raised a total of $200,000 in his 1986 campaign, and received 35 percent of the vote in the Republican primary election. Rosenberg kept involved in political dealings after the campaign, serving as co-chairman of the California Young Republicans and a member of a local fund-raising organization for his political party.

After Rosenberg was defeated in the campaign by Badham, Werner Erhard appeared at a speaking event on his behalf in order to alleviate Rosenberg's campaign debt. Erhard was the guest speaker at a September 15, 1986 fund-raiser event for Rosenberg which cost $175-per-person to attend. Rosenberg stated that no one should infer from the fund-raising invitations that Erhard and his organizations had influenced his campaign. "Look, that's just absolute nonsense. That's my brother, and he's coming to a fund-raiser that I'm doing. He's going to be speaking there. And also, he's a draw. I've got $15,000 to pay off, and I got to get it paid off," said Rosenberg in an interview with the Los Angeles Times. When asked to comment on Erhard's speaking engagement at the fund-raiser, Congressman Badham described it as "confirmation" that Werner Erhard was "part and parcel of the campaign".

1988 campaign

On January 4, 1988, Badham announced he would not seek re-election to Congress, and Nathan Rosenberg said he "is definitely looking at it". Rosenberg said he had "stayed in contact with all the supporters I had last time", and had already raised $50,000 for a potential primary challenge to Badham. Rosenberg became the first candidate to officially enter the race for the open seat for Congress on January 5, 1988. Rosenberg told The Orange County Register
The Orange County Register
The Orange County Register is a daily newspaper published in Santa Ana, California. The Register is the flagship publication of Freedom Communications, Inc., which publishes 28 daily newspapers, 23 weekly newspapers, Coast magazine, and several related Internet sites.The Register is notable for its...

that follower's of Erhard would again be involved in his campaign. Rosenberg said he already had $200,000 in cash and an additional $150,000 in pledged contributions. He hired David Vaporean, Badham's campaign manager from 1986. Rosenberg commented on the effect of Erhard on his 1988 campaign: "In some ways it's a help. In other ways, for some people, it's controversial. Werner is a controversial figure."

Rosenberg ran against Christopher Cox in the 1988 race for the seat representing California's 40th congressional district. For the period of January 1 to March 31, 1988, Rosenberg's campaign had raised $195,986 to Cox's $186,082. Rosenberg's top campaign contributors included eight executives with Werner Erhard and Associates. Rosenberg also led the contenders for the 40th Congressional District in total expenses for the period. Rosenberg was seen as an early favorite in the 1988 race, though his candidacy was subject to a whisper campaign
Whisper campaign
A whispering campaign or whisper campaign is a method of persuasion in which damaging rumors or innuendo are spread about the target, while the source of the rumors seeks to avoid being detected while spreading them...

 that the majority of his supporters were followers of his brother Erhard's est training. "His money is est money," said a political operative in Orange County in a statement in the Sacramento Bee.

In May 1988, Cox campaign political strategist Carlos Rodriguez stated that his candidate would raise a concern regarding Rosenberg's ties to Erhard's est organization. Cox's campaign sent out a four-page political mailer to 110,000 potential Republican voters in the district, which accused Rosenberg of concealing links to Erhard, est and The Forum, and of not being fully truthful regarding his work experience. The mailer characterized Rosenberg as an "est advocate". It quoted a Los Angeles
Los Angeles (magazine)
Los Angeles magazine is a monthly regional magazine of national stature. Published by Emmis Communications and produced monthly since the spring of 1961, LA Magazine is a combination of award-winning feature writing, investigative reporting, service journalism, and design, the definitive resource...

magazine article which had said that the Chicago, Illinois organization Cult Awareness Network
Cult Awareness Network
The Cult Awareness Network was founded in the wake of the November 18, 1978 deaths of members of the group Peoples Temple and assassination of Congressman Leo J. Ryan in Jonestown, Guyana. CAN is now owned and operated by associates of the Church of Scientology, an organization that the original...

 referred to Erhard's companies as "destructive cult
Destructive cult
A destructive cult is a religion or other group which has caused or has a high probability of causing harm to its own members or to others. Some researchers define "harm" in this case with a narrow focus, specifically groups which have deliberately physically injured or killed other individuals,...

s". Quotations included in the mailer said "what Erhard has done is utterly disastrous". The Los Angeles magazine article cited by the mailer quotes a representative of the Cult Awareness Network who had compared the est organization to the Unification Church
Unification Church
The Unification Church is a new religious movement founded by Korean religious leader Sun Myung Moon. In 1954, the Unification Church was formally and legally established in Seoul, South Korea, as The Holy Spirit Association for the Unification of World Christianity . In 1994, Moon gave the church...

, Scientology
Scientology
Scientology is a body of beliefs and related practices created by science fiction and fantasy author L. Ron Hubbard , starting in 1952, as a successor to his earlier self-help system, Dianetics...

, Transcendental Meditation
Transcendental Meditation
Transcendental Meditation refers to the Transcendental Meditation technique, a specific form of mantra meditation, and to the Transcendental Meditation movement, a spiritual movement...

, and Hare Krishna
International Society for Krishna Consciousness
The International Society for Krishna Consciousness , known colloquially as the Hare Krishna movement, is a Gaudiya Vaishnava religious organization. It was founded in 1966 in New York City by A.C. Bhaktivedanta Swami Prabhupada...

. The Orange County Register
The Orange County Register
The Orange County Register is a daily newspaper published in Santa Ana, California. The Register is the flagship publication of Freedom Communications, Inc., which publishes 28 daily newspapers, 23 weekly newspapers, Coast magazine, and several related Internet sites.The Register is notable for its...

compared the mailer to a similar brochure sent out by Badham's 1986 campaign to voters in the district. A political consultant for Cox said that the mailer was sent out in order to point out "Rosenberg's campaign tactics of concealment and distortion," and stated "We just wanted to tell the voter to be wary of anything Nathan Rosenberg says." The Cox campaign also placed phone calls to voters asking for their opinions on a political candidate's links "with that cult est". A subsequent mailer sent out by the Cox campaign included an article that detailed Rosenberg's connections to Erhard's est organization. The article stated "some critical studies ... branded" est "a non- or even anti-religious cult with Eastern mystical overtones".

According to the Los Angeles Times, Rosenberg said he had worked as a "seminar leader" in The Forum, and he "angrily dismissed allegations raised in the mailer that his brother's programs are subversive or cultlike." Rosenberg's political consultant, David Vaporean, acknowledged that "a number of people" who had previously heard Rosenberg lecture in seminars for Erhard's organization were included in the volunteer base for his 1988 campaign.

A poll in late May 1988 found that a majority of voters were not concerned with whether or not a candidate had a controversial member within their family - a reference to Rosenberg's brother Erhard. The poll, conducted by Chapman University
Chapman University
Chapman University is a private, non-profit university located in Orange, California affiliated with the Christian Church . Known for its blend of liberal arts and professional programs, Chapman University encompasses seven schools and colleges: Lawrence and Kristina Dodge College of Film and Media...

's Chapman College Survey group for The Orange County Register
The Orange County Register
The Orange County Register is a daily newspaper published in Santa Ana, California. The Register is the flagship publication of Freedom Communications, Inc., which publishes 28 daily newspapers, 23 weekly newspapers, Coast magazine, and several related Internet sites.The Register is notable for its...

, showed Cox leading in the Republican primary with 15 percent to Rosenberg's 13 percent. 57 percent of voters polled were undecided. Of those that were decided, 36 percent supported Cox, while 30 percent supported Rosenberg. "I think the undecideds will break out along the lines of the people who have already decided," he said. "We'll get the lion's share. The momentum is all going in the right direction," said Cox. Rosenberg commented on the large number of undecided voters: "What it points out is none of us really has gotten our message out," he said. "Not one candidate has been strong enough to break out of the pack."

In June 1988, only days before the election date, mailers were sent out by an individual named Arthur M. Jackson that characterized Christopher Cox as a Communist propagandist, based on Cox's business involvement in translating the Soviet newspaper, Pravda
Pravda
Pravda was a leading newspaper of the Soviet Union and an official organ of the Central Committee of the Communist Party between 1912 and 1991....

, and accused Baker of marital infidelity. Rosenberg, whose own campaign had sent out a similar mailer referencing Cox's Pravda translation work, held a press conference and stated his campaign had "nothing to do" with Jackson's mailers, an assertion that seemed implausible to Cox and Baker. Jackson was a graduate of Erhard's est training, and a donor to Rosenberg's campaign. A company called Diversified Mailing Inc. handled Jackson's mailings. The same company processed Rosenberg's campaign mail and had been used by his political consultant David Vaporean for 10 years. Rosenberg acknowledged he knew Jackson since 1980 when the two both worked in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....

 He said that Jackson was "a friend, but a misguided friend", and told press he had asked an aide to return Jackson's $1,000 campaign contribution to him, as he disapproved of his tactics. Rosenberg asserted that Cox was responsible for the bitter nature of the campaign, stating, "He started it with all those lies about est. We tried to take the high road."

Cox gained in pre-election polls after gaining powerful supporters including William F. Buckley, Jr.
William F. Buckley, Jr.
William Frank Buckley, Jr. was an American conservative author and commentator. He founded the political magazine National Review in 1955, hosted 1,429 episodes of the television show Firing Line from 1966 until 1999, and was a nationally syndicated newspaper columnist. His writing was noted for...

, Oliver North
Oliver North
Oliver Laurence North is a retired U.S. Marine Corps officer, political commentator, host of War Stories with Oliver North on Fox News Channel, a military historian, and a New York Times best-selling author....

 and Robert Bork
Robert Bork
Robert Heron Bork is an American legal scholar who has advocated the judicial philosophy of originalism. Bork formerly served as Solicitor General, Acting Attorney General, and judge for the United States Court of Appeals for the District of Columbia Circuit...

. Cox won the June 7, 1988 Republican primary. Irvine, California
Irvine, California
Irvine is a suburban incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28, 1971, the city has a population of 212,375 as of the 2010 census. However, the California...

 Councilman David Baker came in second in the primary, and Nathan Rosenberg came in "a distant third", after previously coming in second in pre-election polling. Cox received 31% of the vote, Baker 29%, and Rosenberg 18%. Cox went on to win the general election and become a member of the United States House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...

.

In June 1988, police closed an investigation into alleged jamming of the Cox campaign's phone lines by supporters of Rosenberg. "For several weeks, about every third call we got was one of these bogus calls. You would hear a kind of whirring noise like a machine of some kind. ... It got so bad just before the election that we had to move our get-out-the vote operation to another office and use cellular phones in the field," said Cox's campaign manager Bob Schuman. A representative of the police said that charges were not made because though the location of the jamming was traced, it could not be determined specifically which individuals were responsible. "It's incredible to me that someone can do what was done to us and we have an absolute identification" of the location of the jamming, said Schuman. "I can't speak for Chris, but I feel pretty strongly that we don't want to let them get away with it. We don't want to let it end here," he said. Rosenberg denied knowledge about the phone jamming. "I don't know anything about it. I don't want to speculate about who might have done this to Cox's phones, but I certainly don't condone it," said Rosenberg. Rosenberg posited that the Cox campaign was requested police look into the matter as a tactic to discourage him from attempting a write-in-campaign
Write-in candidate
A write-in candidate is a candidate in an election whose name does not appear on the ballot, but for whom voters may vote nonetheless by writing in the person's name. Some states and local jurisdictions allow a voter to affix a sticker with a write-in candidate's name on it to the ballot in lieu...

 against Cox in the November general election for Congress. According to the Orange County Deputy District Attorney, the phone calls were traced to a residence owned by Rosenberg supporters. The residence belonged to a developer and his wife who had each made donations of $1,000 to Rosenberg's campaign for Congress.

Suit filed

On May 20, 1988, Werner Erhard and Associates announced its intention to file a lawsuit for $5 million against Cox over the mailer sent out to voters about the est company and other Erhard organizations. On May 27, 1988, Werner Erhard and his organization Werner Erhard and Associates filed a lawsuit in Orange County Superior Court against Cox and his campaign Christopher Cox for Congress, claiming libel and slander charges for the mailer that had described Erhard's organization as a "destructive cult
Destructive cult
A destructive cult is a religion or other group which has caused or has a high probability of causing harm to its own members or to others. Some researchers define "harm" in this case with a narrow focus, specifically groups which have deliberately physically injured or killed other individuals,...

". Nathan Rosenberg was not a party to the suit. The lawsuit claimed that statements about the est organization made in the Cox campaign mailer were "untrue, libelous and extremely damaging" to its reputation and that of its founder, Werner Erhard. Erhard and his company claimed that the mailer could potentially harm its "human potential
Human Potential Movement
The Human Potential Movement arose out of the social and intellectual milieu of the 1960s and formed around the concept of cultivating extraordinary potential that its advocates believed to lie largely untapped in all people...

" seminars, financial dealings, and other business interests in Orange County.

Sharon Spaulding, a representative of Werner Erhard and Associates, called the characterization of the est training in the Cox campaign mailer "completely untrue, clearly libelous, and ... extremely damaging", and said "We are taking this action to rectify ... allegations made against ... Werner Erhard and Associates, its employees and the more than 24,000 people in Orange County who have participated in programs developed by Mr. Erhard." According to Spaulding, the est organization had warned the Cox campaign against making critical statements about it, and provided Cox with material regarding its prior conflict with the Badham campaign.

Official's for Cox described Erhard's suit as a political ploy for Rosenberg's campaign. Cox's campaign manager, Bob Schuman, defended the mailing. He described Erhard's suit as "baseless and groundless". He said the assertions it made were "factual and documented", and that its statements about the est organization were attributed to "a credible publication". Schuman pointed out that the fact that Erhard's organization did not file a lawsuit against the "credible publication that we quoted word for word shows that this is malicious litigation designed to help Nathan Rosenberg's campaign". He noted that the language of the Cox campaign mailer was different than that used previously by the 1986 Badham campaign's mailer about the est organization.

Art Schreiber, an attorney for Werner Erhard and his organization Werner Erhard and Associates, stated that the fact that a defamatory statement had previously been published in another publication was not a proper defense against a possible claim of libel.

At a candidates forum at the University of California, Irvine
University of California, Irvine
The University of California, Irvine , founded in 1965, is one of the ten campuses of the University of California, located in Irvine, California, USA...

 in May 1988, Cox commented on the mailings and defended the statements made therein: "I firmly believe that the issues I pointed out ... must be pointed out." Cox described the statements made in the mailings as "factual" and "issue-oriented". Cox noted that the comment characterizing the est organization as a "destructive cult
Destructive cult
A destructive cult is a religion or other group which has caused or has a high probability of causing harm to its own members or to others. Some researchers define "harm" in this case with a narrow focus, specifically groups which have deliberately physically injured or killed other individuals,...

" came from "a credible source", Los Angeles magazine, and that it was properly quoted. Referring to Rosenberg's involvement in the Erhard-related organization The Hunger Project
The Hunger Project
The Hunger Project is a 501 non-profit charitable organization incorporated in the state of California.The Hunger Project describes itself as an organization committed to the sustainable end of world hunger...

, Cox said: "(Rosenberg) claimed to be a leader in one of the foremost organizations devoted to solving world hunger. In fact that organization is an est affiliate and that was not identified."

Libel charges dismissed

On December 6, 1988, the libel portion of Rosenberg's lawsuit against Cox was dismissed. The ruling did not dismiss the slander portion of the suit, which dealt with phone calls individuals received which asked if they would vote for a political candidate with ties to a "cult" such as Erhard's est organization. Superior Court Commissioner Eleanor M. Palk ceded to the request by attorneys for Cox to dismiss the libel charge, and ruled that the statements included in the mailer sent out by the Cox campaign were within accepted grounds for comments made during a political campaign, and should be treated as opinion protected by the United States Constitution
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...

, which could not be characterized as defamatory under law. Of the calls from the Cox campaign received by voters that posed questions about Erhard's organization, Palk stated: "The audience consisted of residents who received unsolicited telephone calls and who would not necessarily expect a political message in the guise of what could have been understood to be a poll."

Erhard representative Sharon Spaulding stated "From our standpoint, we're just glad that the judge ruled we have a viable claim" for the issue of the slander part of Erhard's lawsuit. Erhard's attorney, William S. O'Hare, asserted that his client was vindicated by the ruling. O'Hare said that "Up until now, we didn't know whether this case had any validity at all. It was up in the air. ... This ruling is a mixed message, but at least we're still in court".

Sue Himmelrich, one of the lawyers who represented Cox in Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...

, called the judge's dismissal of Erhard's libel claim a victory: "We think this is a tremendous victory. Half of the lawsuit has been knocked out without the judge even having heard evidence, which is obviously unusual," she said. She said that Cox was "absolutely thrilled" when he heard of the judge's decision to throw out the libel charge. She said that "we have no doubt we'll win" the on the slander claim, as well as a possible appeal by Erhard of the dismissal of the libel claim. Himmelrich characterized Erhard's legal complaint as "a nuisance suit".

Slander charges dropped

On December 16, 1988, the judge in the case ruled that defense attorneys for Cox could watch a 60-hour est organization videotape. The videotape's purpose was to train instructors in the est organization on how to carry out est seminars. Superior Court Commissioner Eleanor M. Palk denied Cox's lawyers' request to view three other videotapes, but ruled that they could view the most recent tape, which was from 1984. Cox's attorneys hoped that the tape would help them to show that the est organization did have similarities to a religious cult
Cult
The word cult in current popular usage usually refers to a group whose beliefs or practices are considered abnormal or bizarre. The word originally denoted a system of ritual practices...

.

William O'Hare, a lawyer for Erhard, had argued that the videotapes should not be reviewed by defense attorneys because this would violate the privacy of the individuals that appear in the video. The judge's ruling specified that only expert witness
Expert witness
An expert witness, professional witness or judicial expert is a witness, who by virtue of education, training, skill, or experience, is believed to have expertise and specialised knowledge in a particular subject beyond that of the average person, sufficient that others may officially and legally...

es, Cox, and his lawyers would be able to watch the video. Cox's lawyer Sue Himmelrich stated that the video would potentially be able to assist cult experts in testifying that the Cox campaign's characterization of the est organization as a cult was accurate. "Truth is always an absolute defense (against libel). If the tapes establish that they (est instructors) do things that expert witnesses would consider cult-type behavior, that would help establish our defense," said Himmelrich.

Cox's campaign appealed the judge's decision not to dismiss the slander charges in addition to the libel charges. In February 1989 the California Courts of Appeal agreed to hear arguments from attorneys for Cox on why Erhard's slander charges should also be dismissed. Cox felt that the court would issue a ruling dismissing Erhard's slander charges on appeal.

On February 28, 1989, Werner Erhard chose to drop the charges of slander from his suit against Cox. His lawyers asserted that the slander charges were dropped so that Erhard could focus on an appeal of the earlier dismissal of Erhard's libel charges against Cox. "Our feeling is the libel case is the more significant of the two. The slander involved a smaller number of people," said Erhard's lawyer O'Hare. O'Hare explained that Erhard primarily wished to appeal the dismissal of the libel charges, but was prevented from doing so until the lawsuit involving Erhard's slander charges had been concluded, which could have taken weeks or months. O'Hare said that the slander charges were dropped so that Erhard could immediately take the dismissal of the libel charges to the California Courts of Appeal.

When contacted about Erhard's decision to drop the slander charges, Cox was happy and commented that this meant the end of the case: "This is terrific. The whole thing is over; the other shoe has dropped," he said. Daniel J. Woods, a lawyer for Cox, described the lawsuit as frivolous. "The Orange County Superior Court has already thrown out the libel claim, with good reason. Today's action is merely the est people giving up on the slander cause of action," said Woods. Woods said that Erhard would lose his case regarding the dismissed libel charges if he attempted to bring the matter up on appeal: "Saying they are going to focus on an appeal for the libel claim is only a face-saving statement."

In May 1989, Commissioner Palk ruled that Cox's and his lawyers had to return videotapes of est training seminars to Werner Erhard and Associates. Palk also ordered Cox to pay Erhard's organization $1,000 for failing to return them.

Christopher Cox described the lawsuit in his nomination hearing to become Chairman of the U.S. Securities and Exchange Commission, noting: "Following protracted discovery the case was dismissed with prejudice in 1992; I and the plaintiff executed a mutual release of claims. No settlement monies were paid." On February 5, 1992, Werner Erhard and Associates
Werner Erhard and Associates
Werner Erhard and Associates, also known as WE&A or as WEA, operated as a commercial entity from February 1981 until early 1991. It replaced Erhard Seminars Training, Inc. as the vehicle for marketing, selling and imparting the content of the est training, and offered what some people refer to as...

 filed a motion to dismiss with prejudice, titled: "Request for Dismissal - Full - With Prejudice".

Analysis

In a 1990 article reflecting on the political campaign, Larry Peterson of The Orange County Register
The Orange County Register
The Orange County Register is a daily newspaper published in Santa Ana, California. The Register is the flagship publication of Freedom Communications, Inc., which publishes 28 daily newspapers, 23 weekly newspapers, Coast magazine, and several related Internet sites.The Register is notable for its...

noted "Before Rep. Christopher Cox, R-Newport Beach, won the primary, various detractors: ... Attacked Rosenberg concerning the est human-potential seminar program led by his brother, Werner Erhard. Rosenberg denied the charges, and Erhard's firm sued Cox's campaign, charging libel and slander. The libel charges were dismissed ... Most of the charges were made in slick brochures mailed almost daily to voters in the district. Sometimes, as in Cox's mailing lambasting Rosenberg for links to what it called Werner Erhard's 'destructive cult,' the sender was identified. But sometimes attackers cloaked themselves in anonymity. That shielded candidates who were responsible for them—or on whose behalf they were made—from the wrath of those who might be turned off by smear tactics." Political consultant Eileen Padberg commented on the negative nature of the campaign "They used negative stuff because it works," and consultant Harvey Englander said that "the negative material gave candidates a way to distinguish themselves from their opponents."

See also

  • California's 40th congressional district
    California's 40th congressional district
    California's 40th congressional district is a congressional district in the U.S. state of California based in Orange County. The district covers cities in the northern part of the county, including Fullerton, Orange, Cypress, Stanton, and Buena Park....

  • Elections in California
    Elections in California
    Elections in California are held to fill various state and federal seats. In California, regular elections are held every even year , however the seats being decided each year varies, as the terms of office for certain seats varies. Special elections are also held to fill certain seats at other...

  • Landmark Education litigation
    Landmark Education litigation
    Since its formation in 1991, Landmark Education LLC has been involved in about a dozen lawsuits in the United States and a few more in Europe....

  • Ney v. Landmark Education Corporation and Werner Erhard
    Ney v. Landmark Education Corporation and Werner Erhard
    Ney v. Landmark Education Corporation and Werner Erhard is a legal case that was filed in United States District Court for the Eastern District of Virginia against Landmark Education, its predecessor Werner Erhard and Associates, and Werner Erhard, by a participant in one of Erhard's courses named...

  • Politics of California
    Politics of California
    The recent and current politics of the U.S. state of California are complex and involve a number of entrenched interests. .-Political issues:...

  • United States House of Representatives elections in California, 1986
    United States House of Representatives elections in California, 1986
    The United States House of Representatives elections in California, 1986 was an election for California's delegation to the United States House of Representatives, which occurred as part of the general election of the House of Representatives on November 4, 1986...

  • United States House of Representatives elections in California, 1988
    United States House of Representatives elections in California, 1988
    The United States House of Representatives elections in California, 1988 was an election for California's delegation to the United States House of Representatives, which occurred as part of the general election of the House of Representatives on November 8, 1988...


External links

Christopher Cox
Werner Erhard

Nathan Rosenberg
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