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NORTHERN CALIFORNIA RECORD

Tuesday, November 5, 2024

Construction Company Sues Employee Over Defamation Claims

State Court
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A local construction company is taking legal action against an individual for allegedly spreading damaging falsehoods about its business practices. On July 11, 2024, ATM BUILDS, INC. filed a complaint in the Superior Court of California, County of Santa Clara, accusing John Saunders of defamation and intentional infliction of emotional distress.

The plaintiff, ATM BUILDS, INC., a California corporation operating in Santa Clara County, asserts that John Saunders made multiple false and disparaging comments about the company. These statements included allegations such as "ATM does not pay its bills" and warnings to others to avoid doing business with ATM BUILDS because they purportedly do not settle their financial obligations. The lawsuit claims these defamatory remarks were communicated to Hayward Lumber, a key supplier for ATM BUILDS, and potentially other parties.

According to the complaint, Saunders is an employee at Hayward Lumber. His alleged false statements have significantly impacted ATM BUILDS' reputation and business operations. The plaintiff has been a long-time customer of Hayward Lumber and its predecessor Economy Lumber. Due to Saunders' actions, ATM BUILDS lost access to favorable pricing and reliable supply from Hayward Lumber, which is critical for their construction projects.

ATM BUILDS contends that Saunders acted negligently by failing to verify the truthfulness of his statements before making them. The company believes that Saunders either knew his statements were false or acted with reckless disregard for their truthfulness. As a result of these defamatory remarks, ATM BUILDS claims it has suffered substantial reputational damage within the Bay Area construction community and financial losses due to the inability to purchase materials at previously advantageous terms.

In addition to defamation, ATM BUILDS accuses Saunders of intentional infliction of emotional distress. The company alleges that Saunders' conduct was extreme and outrageous with the specific intent to cause emotional harm. This has led to considerable distress for those involved in managing the company's operations as they felt powerless against the spread of lies about their business practices.

The lawsuit also includes a claim for negligent infliction of emotional distress. It argues that Saunders' negligence was a significant factor in causing severe emotional suffering for those associated with ATM BUILDS due to humiliation and anxiety stemming from his defamatory statements.

ATM BUILDS seeks several forms of relief from the court: general damages exceeding $100,000; special damages also exceeding $100,000; pre-judgment interest on all damages from June 1, 2024; post-judgment interest until payment is made; costs incurred during litigation; punitive damages amounting to at least twice the sum of general and special damages; and any other relief deemed appropriate by the court.

Representing ATM BUILDS in this case is Trevor J. Zink from Omni Law Group APC. The case has been assigned Case No.: 24CV442982 in front of judges at the Superior Court of California in Santa Clara County.

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