McAlester News-Capital, McAlester, OK

Local News

June 11, 2007

Covington files suit against 'Watercooler' operator

By JAMES BEATY

SENIOR EDITOR

A lawsuit has been filed in Pittsburg County District Court against the operator of an Internet forum known as the McAlester Watercooler.

The lawsuit, filed today, lists Harold King as a defendant, as well as “John Doe,” numbers 1-50 and “Jane Doe,” numbers 1-50.

Filed on behalf of Steve Covington, doing business as Loan Plus, the suit seeks more than $10,000 in damages, as well more than $10,000 in punitive damages.

A petition filed with the suit also seeks a temporary restraining order and injunction, as well as expedited discovery, which would allow Covington’s lawyer to take depositions from the defendants sooner than usual.

Covington’s suit also requests a temporary restraining order prohibiting King and the other defendants “from publishing untruthful and slanderous information about Mr. Steve Covington d/b/a Loan Plus Inc.”

It also asks the courts to shorten the time King and the other defendants have to respond to the request for production of documents — to within 10 days after being served with the petition,

Court petitions state that a “warning” was posted on the site telling those who have borrowed money from “Loans Plus” to stop making payments on the loans.

Filed by Tulsa attorney Charles R. Graham, Covington’s suit alleges that King, as well as some of the John Does and Jane Does, “designed, set up, post comments and now maintain a message board via Internet named McAlester Watercooler for the purpose, in large part to discuss Mr. Steve Covington d/b/a Loan Plus Inc., both personally and professionally.”

The lawsuit alleges that the defendants from July 2005 to the present “have posted and continue to post messages communicating to third parties false and reckless statements” which are damaging to Covington, as well as his business and personal affairs.

It also alleges that King and the other defendants have been participating in a scheme to damage Covington d/b/a Loan Plus “by posting misleading, untruthful and slanderous statements” regarding him.

The lawsuit alleges that “The defendants claim Mr. Covington’s business Loan Plus Inc. is illegal, that he is not allowed under the law to be associated with the installment loan business and that he has no recourse under the law to collect any legitimate debt on behalf of his business.”

“Defendant King specifically encourages the public to enter into an agreement with Loan Plus Inc. by which they would receive money and then default on contracts by not repaying the loan to the individual’s agreement,” according to the lawsuit.

“Defendant King states Mr. Covington is without legal recourse to collect on the debt,” the lawsuit states.

Covington’s attorney maintains in court documents that Covington is licensed under state law to participate in the installment loan business and has every available means under state law “to seek redress for any legitimate default of a contract entered to on behalf of Loan Plus Inc.”

Covington’s suit claims that the alleged “false and derogatory statements” on the Web site subject Covington to public hatred, damage to his business, emotional distress, lost profits present and future, loss of business opportunities, contempt and ridicule.

It also alleges that the defendants’ conduct constitutes “tortuous interference” with Covington’s economic interests.

“The only injunctive relief that (Covington) requests is that defendants be made to play by the rules,” the court petition states.

Contact James Beaty at jbeaty@mcalesternews.com.

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