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To: Jeffrey S. Mitchell who wrote (2206)	12/14/2001 11:45:57 AM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 12465

Re: 12/13/01 - [VAR] Bloomberg: Former Varian Employees Defamed Company, Jury Says Former Varian Employees Defamed Company, Jury Says (Update1) By Pham-Duy Nguyen San Jose, California, Dec. 13 (Bloomberg) -- Two former research scientists at Varian Medical Systems Inc. defamed the company and its executives on Web sites and message boards and must pay damages of $425,000, a California jury said. Mary Day and Michelangelo Delfino are among the first to defend themselves in court against accusations that they defamed people on the Internet. Varian Medical, the No. 1 maker of cancer- therapy radiation machines, sued the couple in Santa Clara Superior Court in 1999, accusing them of damaging the reputation of the company and its executives by posting false statements on their Web sites. Day, 45, and Delfino, 51, must pay the $425,000 in damages to Varian Medical, Varian Semiconductor Equipment Inc., and company officials. Lawyers for Varian Medical said the jury's findings mean defamation law can be applied to the Internet. ``There's no Internet exemption to the law of defamation,'' said Lynne Hermle, Varian Medical's lawyer. Throughout the trial, the couple, who live next door to each other in Los Altos, California, have taken notes on the proceedings and posted them on their Web sites, with commentary. Flashing Cartoons Day and Delfino claim on one site, which is decorated with flashing cartoons of vomiting toilets, that Richard Levy, Varian Medical's chief executive officer, is a ``perennially novice President & CEO'' and ``violated his own company policy while overseeing Varian's legendary hostile work environment that included videotaping bathrooms.'' The same accusations are made against George Zdasiuk, Varian Medical's vice president, who is additionally described as ``plagued with mouth cankers and gastrointestinal problems.'' Day and Delfino, who worked at Varian Medical for a combined 25 years, say they are exercising their First Amendment rights. During the eight-week trial, Santa Clara Superior Court Judge Jack Komar ordered the jury not to look at the Web sites. On Tuesday, he barred Day and Delfino from making certain types of statements. ``I'm going to try to give you some areas that I think have been demonstrated to be false statements that the defendants have posted in the past,'' Komar told lawyers. ``I'm going to enjoin them from calling the plaintiffs, the individual plaintiffs, liars or chronic liars.'' Mental Illness Komar also ordered Day and Delfino to stop posting statements that accuse Varian Medical employees of adultery, promiscuity, and mental illness. When asked by Varian Medical attorney Hermle if the court could enjoin Day and Delfino from calling Zdasiuk ``sick,'' Komar denied the request. ``When you start talking about the CEO or vice president of a corporation, there is some leeway permitted to characterize decisions made by the CEO that do not relate to a fact which are expressed opinions.'' Day and Delfino said they have not yet decided whether to appeal but would continue their postings on the Internet. The Internet was supposed to level the playing field for the masses, Day said, but the decision empowered corporations. ``If you have two companies who try to shut up shareholders, where is the protection for the general public?'' she asked. A hearing to award punitive damages is scheduled for Monday. Day said her comments have not damaged the stock price of either company named in the case. ``Both CEOs testified it had no effect on the stock,'' she said. Shares of Palo Alto-based Varian Medical rose $1.25 to close at $67.15. ©2001 Bloomberg L.P. All rights reserved. quote.bloomberg.com