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The Blade sues Tom Pounds at the Toledo Free Press

The Blade is suing its former general manager and now publisher of a competing newspaper, the Toledo Free Press. Tom Pounds was in that position at The Blade in 2004 and apparently signed an agreement "which prohibited Mr. Pounds from disparaging or taking any action directly or indirectly to harm The Blade, its parent, divisions, subsidiaries, or affiliates or any of their directors, officers, shareholders, or employees."

It will be fascinating to see on what grounds The Blade (after seven years) is only now alleging breach of contract. I know that he has a sign on the second story of his building that says, "Boycott The Blade". Do you suppose that would be enough to enrage JRB? Oh, well, Tom is just another figure in a long list of locals that the publisher of The Blade has tried to run out of town.

http://www.toledoblade.com/Courts/2011/10/21/Blade-s-parent-company-sues-ex-manager-for-contract-breach.html

created by pete on Oct 21, 2011 at 01:29:46 pm     Media     Comments: 59

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Comments ... #

I don't know any specifics about their contract, but agreements like that usually only last a pretty short period, with a couple years being on the long end of the spectrum. Given he left 7 years ago, I can't imagine any of it applies anymore. I'm guessing your last sentence is the entire story, here. It would be nice for the Free Press to become big enough that it actually influences The Blade to step its game up and become a real news paper again. I can't say I really know anyone who holds The Blade in high regard, and that's not how it should be.

posted by Johio83 on Oct 21, 2011 at 02:09:17 pm     #  

Why would Michael Miller be named in the suit?...and where did the number $188,000 come from? Where is Paul Helm when you realy want to hear from him?

posted by Molsonator on Oct 21, 2011 at 02:17:09 pm     #  

I'd love to hear the Blade's entire rationale for this suit and how they came up with their damages figure.

7 years is a hell of a long time to sit and stew. And Pounds has the right to make a living in the same industry in the same town.

posted by oldhometown on Oct 21, 2011 at 02:38:14 pm     #  

The Toledo Free Press is...free. Frankly, its also a lot better.

posted by OhioKimono on Oct 21, 2011 at 03:11:58 pm     #   1 person liked this

I'd be curious to read the language in the agreement.

As others have referenced, there is normally some sort of time limit on any type of non-compete clause or similar agreements.

It would seem like this should be a fairly cut and dry lawsuit. Either the agreement was violated within the specified time frame or it wasn't.

I'd wonder if there was some sort of behind the scenes discussion going on over the past few years trying to resolve the issue without a lawsuit? It would seem odd for a suit to be filed "out of the blue" 7 years later if the parties hadn't been in contact about the issue somewhere in the interim.

posted by mom2 on Oct 21, 2011 at 03:50:01 pm     #  

I still enjoy reading the Blade. I also read the New York Times, so I'm getting my "heavy" news elsewhere. :-)

I have never warmed up to the Free Press. I like the idea of their paper, but the assortment of columnists who are just business people trying to promote themselves does not hold my interest. I don't really need another Mommy column or salon/spa boosterism. That sort of thing is being done much better on the internet (not that I seek it out online, either!)

I stopped reading Millar's editorials pretty early on when he began featuring his thoughts on baby diarrhea, his personal aftermath from greasy restaurant food, etc. The "new journalism" is WAY too personal for my taste. But TFP seems to have a fan base and I wish them well.

posted by viola on Oct 21, 2011 at 04:38:47 pm     #   3 people liked this

Folks,

I know as much about this story as you do. I am too busy developing / debugging. New products.

posted by paulhem on Oct 21, 2011 at 07:15:58 pm     #   1 person liked this

Here's the link to the Blade's complaint:

http://lcapps.co.lucas.oh.us/obpublicaccess//ViewDocument.aspx?docID=ZlZ7tOhlC%2bPCJse2o0loEJKneyc9vFId&chksum=49d0f66258d2883971657357cf37c346

The separation agreement itself was not attached to the complaint under the rationale that there are confidential terms and Pounds has a copy already. Seems from the complaint that the Blade paid Pounds a significant amount to sign said agreement and that Pounds took it and signed the on the dotted line. That's where the damages amount comes from.

Re: the Blade v. the Free Press, I think they are apples and oranges. The Free Press doesn't have nearly the coverage of local news and no coverage of national news. The columnists are pretty amateurish as well. I'm not a massive fan of the Blade, I think that the Blocks are petty, hold grudges and meddle too much with their paper, but in general I've always believed that you get what you pay for and that is true of the Blade vs. Free Press.

posted by Ace_Face on Oct 21, 2011 at 08:33:54 pm     #  

very interesting for a non compete to last this long. also extremely odd for the blade to even care since tfp isnt exactly stealing their customers. i see tfp as a nice little flip thru you pick up if you see it, not anything new worthy. but that said, i cant remember the last time i picked up a blade. i dont rely on them for news. i dont think a very high percentage of the balde devoted followers even know what tfp is.

posted by Ryan on Oct 21, 2011 at 09:01:23 pm     #   1 person liked this

That's quite a document. I guess the agreement Pounds signed is effective into perpetuity, eh? If so, I don't see how Tom Pounds could even think of opening a newspaper, given that he can't say much about The Blade or its management. What a muckup!

posted by pete on Oct 21, 2011 at 09:04:10 pm     #  

Ryan is spot on. I only read tfp if I happen to think about it as I'm entering/exiting the library. Occasionally, Steve Flagg writes some articles that are informative about tps.

posted by 6th_Floor on Oct 21, 2011 at 09:27:27 pm     #  

It doesn't sound like a non-compete, more like a non-disparagement and confidentiality agreement. As a matter of public policy, courts don't like non-competes to be long or unlimited as they infringe on the ability of parties to make a living after terminating the employment. A non-disparagement and confidentiality agreement on the other hand could go on forever, especially if Pounds had every opportunity to reject the agreement and instead chose to take the money. The question is whether he violated the agreement and since we don't have the original agreement, it's impossible for any of us to even venture an opinion.

posted by Ace_Face on Oct 21, 2011 at 09:54:49 pm     #  

So, the Yellow Blade,drums up its own headlines in a "news creation article", of its own ?
Sounds just as neurotic as it is !
Time for a new round of character assassination, by silver spooned puca's ?
Cold-blooded...

posted by ProfProvo on Oct 24, 2011 at 10:52:43 am     #  

Hey Paul, mind running to the pressroom and finding out how much ink is left before the re-order? lol

poor guy...

This is just sour apples from The Blade because their readership and ad revenue is declining, regardless the spin the Blade employees put on it. Just look for a Blade from 5 years ago and compare it to the content in the Blade from today.

Reaching for straws to destroy another's credibility. Not to tell you how to sell papers, but ain't the Stain due to create another controversy to bolster sales?

just curious...

posted by BrianInFlorida on Oct 24, 2011 at 08:12:57 pm     #  

and I mean the hard copy, not the internet. Altho I miss the old, easier to read style on the internet version I read from daily, it is difficult to find any real local news except the odd shooting or obituaries.

posted by BrianInFlorida on Oct 24, 2011 at 08:15:22 pm     #  

I saw an agreement signed by a party who was not allowed to talk about a defendant in any way until the end of time, and his lawyer was Fritz Byers, the same attorney who represents The Blade. I thought it was worded oddly, and I didn't think it would hold, simply because the person he was representing was a public person. How can you keep someone from ever talking about a public person until the end of time? Byers is an ass and I hope Pounds throws the stupid agreement back at him. Ridiculous!

posted by bikerdude on Oct 24, 2011 at 11:30:29 pm     #   1 person liked this

Can't you go down to the court house and ask to see the case file? I've done that. You can make copies. Copiers are available right in the office. However it was only with closed cases. The file is probably now in the Judge's clerk's office and might not be available.

posted by holland on Oct 25, 2011 at 11:37:38 am     #  

All the stuff that was submitted to the court is available here:

http://lcapps.co.lucas.oh.us/OBPublicAccess/ViewPublicDocuments.aspx?PAQueryID=131&LCKEY=ap8W3SMScmh4cka8FtNLq63XcXj0wz3tKJt7XlhAHFbSkWW%2fXkYUKg%3d%3d&OBKey__205_1=G-4801-CI-0201106113-000&tU=COC

But the non-disparagement agreement won't be online or in the case file most likely. If it does get submitted, it would be sealed and not available to the public.

posted by Ace_Face on Oct 25, 2011 at 03:27:31 pm     #  

Thanks, Ace_Face, for that URL. It certainly looks as if The Blade and the Block brothers are going to try to nail Pounds to the wall and deep-six the Toledo Free Press. In my mind, it was stupid for Pounds to sign that agreement and then start up a competing newspaper. But he did, didn't he? Ahh, hindsight.

In any case, this ploy by JRB is just another attempt to drive another independent mind out of town, in the same way he drove many others out. This local newspaper as it is run by this freak living in Pittsburgh has become the embodiment of what is wrong with Toledo.

posted by pete on Oct 25, 2011 at 03:54:57 pm     #   3 people liked this

To me it feels like the Blade is looking for someone to kick while their sales are down. the internet is killing newspapers all over - chasing the local free press out of town wont change their declining sales.

posted by OhioKimono on Oct 25, 2011 at 03:57:59 pm     #  

pete posted at 03:54:57 PM on Oct 25, 2011:

Thanks, Ace_Face, for that URL. It certainly looks as if The Blade and the Block brothers are going to try to nail Pounds to the wall and deep-six the Toledo Free Press. In my mind, it was stupid for Pounds to sign that agreement and then start up a competing newspaper. But he did, didn't he? Ahh, hindsight.

In any case, this ploy by JRB is just another attempt to drive another independent mind out of town, in the same way he drove many others out. This local newspaper as it is run by this freak living in Pittsburgh has become the embodiment of what is wrong with Toledo.

Surprised they haven't claimed the TFP's domain is theirs or the contact info is wrong and therefore had it (illegally!) seized.

posted by anonymouscoward on Oct 25, 2011 at 04:16:09 pm     #  

TheMentalBlock.com ??

posted by CharlesBronson on Oct 25, 2011 at 04:55:53 pm     #  

Any chance that Pounds wanted the Blade to come after him in a legal venue, to get better publicity for his own paper? If he knew he could count on a few attorneys (or just one!) for some pro bono legal representation, he could use this situation to his advantage. I really have trouble believing that the guy is dumb ... the agreement he signed was pretty clear, and he began to violate the terms as soon as he could.

posted by viola on Oct 25, 2011 at 05:25:33 pm     #  

"the agreement he signed was pretty clear, and he began to violate the terms as soon as he could"

Huh? You've seen the agreement and you know the terms and you know how it was violated?

posted by holland on Oct 25, 2011 at 05:33:37 pm     #  

Sorry holland, just basing my opinion on what I've read so far. "Nondisparagement". He's violated that principle many times -- starting in about the fourth issue of his new paper, if my memory serves. Like some of the others, I wonder why the Blade took so long to come after him, if they had this agreement in place all along.

posted by viola on Oct 25, 2011 at 05:42:51 pm     #  

"... start up a competing newspaper."

I don't understand how a weekly newspaper can be considered a competitor to a daily newspaper. The TFP added its Star edition, so I guess it's now publishing twice a week.

posted by jr on Oct 25, 2011 at 06:25:50 pm     #  

Uh, OK. I'd rather wait and see just what the undisclosed terms were/are. Right now all we've seen are the plaintiffs claims, no proof of those claims and no defendant's response to the claims. A little to soon to be passing judgement.

My guess is that the Blade's trying to scare TFP into backing off, knowing whose got the deeper pocket to economically withstand a prolonged court action. Even if the Blade doesn't win - it wins.

posted by holland on Oct 25, 2011 at 06:26:26 pm     #  

JR, you can be a competitor without publishing as frequently as the other paper. The Free Press is competing on several levels: advertizing, ideas, and other venues. I know that they have inserts that, I have been told, have taken a lot away from The Blade. The Toledo Free Press is a competitor in many ways.

posted by pete on Oct 25, 2011 at 06:45:58 pm     #  

There is no question they are competitors. TFP bills themselves as having the largest Sunday Paper circulation in the area. I think we don't have all the facts yet.

posted by Molsonator on Oct 25, 2011 at 06:59:19 pm     #  

Simple sell the TFP to his wife for one dollar.

posted by Linecrosser on Oct 25, 2011 at 07:06:42 pm     #  

the TFP is a HUGE competitor to the Blade. no question about it

posted by upso on Oct 25, 2011 at 07:27:34 pm     #  

Don't think he is married.

posted by Molsonator on Oct 25, 2011 at 07:30:01 pm     #  

Sell it to someone for a dollar.

posted by Linecrosser on Oct 25, 2011 at 07:31:59 pm     #  

"I don't understand how a weekly newspaper can be considered a competitor to a daily newspaper."

"The Free Press is competing on several levels: advertizing, ideas, and other venues. I know that they have inserts that, I have been told, have taken a lot away from The Blade."

I have to agree with jr. There's no way a weekly newspaper or non daily newspaper can compete with a daily. First of all, a daily newspaper has far more resources to be able to cover national and international events. They also can cover breaking news, etc. We're talking apples and oranges. Sorry, the advertising that the weeklies get is small and considered crumbs compared to the daily. The Blade must be pretty desperate to be going after a non-daily. Block obviously has been frustrated that he has never been able to close down the TFP.

posted by bikerdude on Oct 26, 2011 at 11:56:35 am     #  

The TFP circulation is not a true assessment of their readership. That paper goes from the driveway/grass to the trash every week. I never asked for it and I never read it.

posted by toledoramblingman on Oct 26, 2011 at 02:07:31 pm     #  

Your reasoning is not very scientific there TRM. How about quoting some audits and research? Or, as Led Zeppelin would say...Ramble on...

posted by Molsonator on Oct 26, 2011 at 02:34:43 pm     #  

I had a friend who sold for a "little weekly" newspaper in another city. You'd be surprised how much money that "little weekly" took off the table from some pretty major advertisers.

Every dollar they took was a dollar that was not going to other print publications in that city (either the major daily newspaper or other local print magazines/publications).

These "little weekly" papers can do a huge business just from restaurants and club/concert promoters. If you were promoting a concert, would you rather place an expensive print ad in a very broad older demographic newspaper or in a publication that is (1) free, (2) read by a younger crowd, and (3) is targeted towards people who are civicly, socially, and politically active. And probably cheaper than running a similar sized ad than the Blade...with the added effect that the ad lasts for a week in TFP, but maybe only a couple days in the Blade.

TFP established a really good foothold in the market. If the circulation numbers are there...and TFP seems to be doing well...then they start getting department stores, malls, etc. All dollars that could have gone to the Blade, but don't right now because TFP exists.

Absolutely they are a competitor...and therefore must be destroyed by whatever means necessary by the opponent. The Blade, like other daily newspapers, cannot suffer losing one red cent to any other print outlet. Here's a story from 2006 talking about the "grim forecast" for Block newspapers. You can't tell me things have gotten better for the Blade in this recession.

For a window on how things are going in 2011, here's another major publisher's 3rd quarter earnings ...down again.

The economic downturn has exacerbated the newspaper industry’s challenges making money off the Internet as print readership and ad dollars shrink....McClatchy earned $9.4 million, or 11 cents per share, in the quarter that ended Sept. 25. That’s down 21 percent from $11.9 million, or 14 cents per share, a year earlier. Revenue fell 8 percent to $300 million from $328 million. Advertising revenue declined 10 percent. Earlier this week, The New York Times Co. and USA Today publisher Gannett Co. reported smaller drops in third-quarter ad revenue.

posted by oldhometown on Oct 26, 2011 at 10:56:46 pm     #  

Interesting column. It's because of The Blade's sleazy attempts to censor competitors that I will never subscribe to it.

http://www.toledofreepress.com/2011/10/28/was-it-something-i-said/

posted by renegade on Oct 31, 2011 at 04:12:09 pm     #  

These three sentences say it all:

"What the plaintiffs are suggesting is not only an outrageous attempt at prior restraint on my free speech rights, it is a clear effort to malign my professional reputation... The attempt to silence this criticism should anger anyone who gives a damn about personal free speech and the rights of the press. While The Blade is quick to defend its First Amendment rights, it is telling that it does not extend that defense to others when it is the focus of criticism."

If and when this case ever goes to trial, these words may be prophetic and come back to haunt The Blade:
"The one small comfort is that we may finally be able to publicly share the stories of true disparagement the plaintiffs have perpetrated by their acts and the acts of the people they control."

posted by pete on Oct 31, 2011 at 05:04:59 pm     #   1 person liked this

And some good advice from Jeremy Baumhauer of the TFP:
<<<<<<<<<<<<<
This is my unsolicited advice to Pounds and Miller:

Do not settle: Toledo has long been starved of an alternative print newspaper with credibility and great intentions for the city.
Do not be bullied: This is where The Blade often wins these cases, by drowning you in legal fees. Deep pockets create bigger bullies.
Don’t stop: Miller must be doing something right if he was named in this lawsuit. Keep the columns and cartoons coming.
http://www.toledofreepress.com/2011/10/28/baumhower-blade-lawsuit-is-deja-vu-all-over-again/

posted by pete on Oct 31, 2011 at 05:18:04 pm     #   3 people liked this

Yet another reason why I will never, ever subscribe to The Toledo Blah.

posted by Newbie on Oct 31, 2011 at 09:05:50 pm     #  

The cartoon isn't even that bad. Block has a thin skin.
I can't believe Block is still causing problems for The Blade. It has such a bad reputation because of him. When are they going to get rid of him for good. Nobody can stand him. Unfortunately, I think the Toledo Free Press is in trouble, even though this is a case of prior restraint. The Blade has deep pockets and will bully whomever they deem a threat to their power. Talking about First Amendment rights and prior restraint is a lofty stance to take, but in the end, The Blade will prevail because of its power and money. The only thing we can do is offer support to Mr. McCarthy and the TFP and not buy The Blade.

posted by bikerdude on Nov 01, 2011 at 01:34:33 pm     #  

Huh?

posted by Molsonator on Nov 01, 2011 at 01:38:27 pm     #  

fascinating bump! http://www.toledofreepress.com/2011/12/19/tfp-answers-blade-lawsuit-files-countersuits/

posted by upso on Dec 20, 2011 at 09:25:03 am     #  

I can't believe Block is still causing problems for The Blade. It has such a bad reputation because of him. When are they going to get rid of him for good.

Can you fire the owner?

posted by mom2 on Dec 20, 2011 at 09:27:05 am     #  

Have any of the major TV outlets covered this story yet? It seems like a pretty big deal to have the two biggest print media outlets going at each other like this.

posted by upso on Dec 20, 2011 at 09:43:32 am     #  

Have any of the major TV outlets covered this story yet? It seems like a pretty big deal to have the two biggest print media outlets going at each other like this.

SSSSHHHHHHHH!!!!!!!!!!

We don't want to report that!!!

Do you know what the Blade will DO to us if we report something like "they're being bullies".

My goodness, where will we get the ideas for our important TV stories if the Blade won't talk to us anymore?????

We will be doomed...DOOMED!!! So don't report anything...

Signed,

WTOL, Channel 11 (proud "partners" with the Toledo Blade)

--------

The sad thing is....I'm not even joking....

posted by oldhometown on Dec 20, 2011 at 09:52:52 am     #   3 people liked this

From the TFP countersuit story posted above by upso:

The TFP counterclaim further asserts that Block Communications "has engaged in contacting various organizations around the City of Toledo seeking to preclude the TFP from being able to be sponsors of events, or limit its ability to do business with those companies and organizations; including but not limited to The Toledo Regional Chamber of Commerce, Partners in Education, United Way of Greater Toledo, The Toledo Mud Hens, Citifest, University of Toledo, Boys and Girls Club of Toledo, Home Builders Association, the Toledo Symphony Orchestra, The City of Toledo Mayor’s Office, The Lucas County Auditor, Imagination Station, The Toledo Walleye, the Huntington Center, etc."

posted by jr on Dec 20, 2011 at 01:21:35 pm     #  

The Toledo Free Press should consider establishing a Legal Defense Fund, so ordinary citizens can offer some support.

posted by CharlesBronson on Dec 20, 2011 at 02:21:54 pm     #   1 person liked this

I think there are many people who would help out.

posted by TartyTinkbeiner on Dec 20, 2011 at 02:39:28 pm     #  

jr posted at 12:21:35 PM on Dec 20, 2011:

From the TFP countersuit story posted above by upso:

The TFP counterclaim further asserts that Block Communications "has engaged in contacting various organizations around the City of Toledo seeking to preclude the TFP from being able to be sponsors of events, or limit its ability to do business with those companies and organizations; including but not limited to The Toledo Regional Chamber of Commerce, Partners in Education, United Way of Greater Toledo, The Toledo Mud Hens, Citifest, University of Toledo, Boys and Girls Club of Toledo, Home Builders Association, the Toledo Symphony Orchestra, The City of Toledo Mayor’s Office, The Lucas County Auditor, Imagination Station, The Toledo Walleye, the Huntington Center, etc."

That'd be anticompetitive behavior as well, and if anyone comes forward from any of the various groups and says "The Blade said we can't do business with the TFP", the book should be thrown hard at the Blade. I'm all for the $10 million in punitive damages should this be true.

posted by anonymouscoward on Dec 20, 2011 at 03:02:09 pm     #  

Copy of the Answer isn't up yet on the Clerk of Courts website. Looking forward to reading this one.

posted by Ace_Face on Dec 20, 2011 at 03:28:42 pm     #   2 people liked this

Along with AC, I too am eagerly awaiting the dirt to come out about The Blade and its attempts to hamstring the FP. The Freak In Pittsburgh should have his hands slapped hard for this crap... and be made to pay severely. But it would be a first and I won't hold my breath. He seems to have everyone in his pocket.

posted by pete on Dec 20, 2011 at 05:00:19 pm     #  

LOL, Ace!!!

posted by nana on Dec 20, 2011 at 09:21:09 pm     #  

I don't know how antitrust suits typically go, but this is a serious one.

posted by upso on Dec 20, 2011 at 09:45:44 pm     #  

I also had a run in with that stupid newspaper when I distributed a publication years ago. There was not a thing I could do. I wish I could have fought them, though. I would absolutely want to donate to any legal fund the Toledo Free Press would set up!

posted by renegade on Dec 21, 2011 at 05:33:31 pm     #  

I think a lot of people would

posted by upso on Dec 21, 2011 at 08:23:08 pm     #  

taliesin52, Check your micro blog.

posted by Robert916 on Dec 21, 2011 at 08:32:25 pm     #  

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