MAID OF THE MIST: Dispute to set sail again

<!--Mark Scheer--><table width="234" border="0" cellspacing="0" cellpadding="0" background="http://static.cnhi.zope.net/flashpromo/niagaragazette/images/byline_234x60.jpg" height="60"><tr><td><div align="center"><font size="3" face="Arial, Helvetica, sans-serif">By Mark Scheer</font><font face="Arial, Helvetica, sans-serif"><br /></font><font size="1" face="Arial, Helvetica, sans-serif"><a href="mailto:mark.scheer@niagara-gazette.com">mark.scheer@niagara-gazette.com</a></font></div></td></tr></table>

The father of the owner of a Georgia-based ticket broker locked in a dispute over operation rights granted to the Maid of the Mist Corp. has asked a federal court to reopen an earlier case between the two companies.

William Windsor, whose son, Ryan, owns Alcatraz Media, Inc. of Atlanta, has filed a lawsuit in U.S. District Court for the Northern District of Georgia claiming he deserves another chance to argue his side of a case that resulted in his son’s company being barred from selling vouchers for boat tours at the base of Niagara Falls.

An attorney for Maid of the Mist called Windsor’s recent court motions an attempt to “turn back the clock” on a previously litigated matter that has already been closed.

“As it has done numerous times in the past three and a half years, Maid intends to yet again defend against Windsor’s unfounded and frivolous motions,” said Maid of the Mist attorney Marc Brown.

In his filing, Windsor maintains top Maid of the Mist executives committed several hundred counts of perjury and conspiracy to commit fraud in a 2005 lawsuit between the two companies. The filing singles out Maid of the Mist President Christopher Glynn, vice president of marketing, Timothy P. Ruddy and Controller, Robert J. Schul, alleging that they made false statements in connection with the case.

Windsor asserts that 46 of the 50 paragraphs in the original lawsuit were false or incorrect. Of those, he maintains that 44 paragraphs have been proven false by the subsequent testimony of Glynn, Ruddy, Schul, or through other documents.

Windsor also suggests that Maid of the Mist filed its lawsuit in response to inquiries made by him to the Niagara Parks Commission. Windsor has raised questions about the procedure for leasing rights granted to Maid of the Mist on both sides of the border and is now attempting to file a bid to operate the boat tours himself.

Windsor also said he has filed a formal complaint on the matter with the Niagara County District Attorney’s office.

“Maid of the Mist was not honest with us,” said Windsor during a telephone interview. “They were not honest with the court. They lied hundreds of times. I don’t think people should be able to get away with that.”

Revisiting the court case

Brown noted that Maid won the original suit and the findings of presiding Judge Orinda D. Evans were backed by the Court of Appeals. Court documents show Evans issued a permanent injunction against Windsor and Alcatraz Media. In her ruling, she deemed Alcatraz’s behavior as “clearly stubbornly litigious” and awarded Maid attorney fees and expenses totaling roughly $400,000. The Appeals Court dismissed all counterclaims filed by Windsor and Alcatraz Media as “meritless” and asserted only to cause “unnecessary financial hardship” on Maid.

Windsor maintains that Maid won its case based on “lies, false sworn pleadings, false pleadings, and discovery abuse.” He insists the original proceedings deprived his son’s company of the “opportunity for a fair trial.” He now says he wants a new one, with a different judge.

Windsor has also asked the District Court to disqualify Evans from future proceedings between the two companies, arguing that she showed preference to Maid of the Mist in her handling of the earlier case.

“I hope a fair judge will look at what happened and be outraged,” Windsor said.

Dispute stems from ticket sales

According to court documents, Maid of the Mist entered into an agreement to allow Alcatraz Media to sell vouchers for boat ride tickets in 2004. The records indicate that the relationship deteriorated during the 2005 season after Maid officials claimed they started receiving complaints from customers about the discrepancy in price between vouchers purchased through Alcatraz Media and the price charged at the Maid’s box office in Niagara Falls.

Maid of the Mist subsequently notified Alcatraz it would no longer honor the company’s vouchers beyond July 29, 2005. The lawsuit followed with Maid of the Mist contending Alcatraz Media continued to sell vouchers beyond that date. Windsor countered by saying Maid of the Mist violated the terms of the contract by refusing to provide boat rides to over 800 Alcatraz Media customers – forcing those customers to pay Maid.

A copy of the ruling in the 2005 infringement lawsuit shows Evans sided with Maid of the Mist on nearly all counts.

“The court finds that a permanent injunction is clearly appropriate in this case,” Evans wrote in her decision. “Windsor’s overly hostile e-mails and Alcatraz’s persistence in selling vouchers for Maid rides even after Maid informed Alcatraz it did not have authorization to do so indicate that Alcatraz would resume sale of Maid vouchers or e-tickets should the court lift its preliminary injunction on such sales. The court has no doubt as to Windsor’s desire to inflict harm on maid. Alcatraz’s sale of maid vouchers and e-tickets would have the same result now as it did before: Angry customers at Maid box office and irreparable injury to Maid’s reputation and goodwill.”

Warning signs

Excerpts from Evans’ ruling in the case show Windsor warned years ago of his intention to challenge Maid’s standing as the lone provider of boat tours near the base of Niagara Falls. The ruling includes part of an Aug. 12, 2005 e-mail in which Windsor told an attorney for Maid of the Mist that he had no intention of “ever” stopping the sale of tickets for boat tours, despite Maid’s legal claim that his son’s company had violated the conditions of a written agreement to sell ride vouchers.

“I, myself, am busily preparing a new Web site that will solely sell Maid of the Mist tickets,” Windsor wrote in the e-mail. “In addition, I personally, am applying to Niagara Parks Commission for a contract to operate a boat ride at Niagara Falls, and I will do everything in my power personally to see that Maid of the Mist loses the ability to operate at Niagara Falls or gets the competitor they so richly deserve.”

Windsor insists that his company entered into an oral agreement with a Maid of the Mist official that allowed Alcatraz Media to continue to sell vouchers for boat rides throughout the 2005 season, which is part of the reason for his requesting another trial. He said the judge in the earlier case sided with Maid of the Mist based almost entirely on the company’s assessment of the situation, which he now claims top executives supported with lies and false documents.

Sailing forward

Windsor said he intends to continue to push for openness in the bidding process for tour boat operations at the base of the Falls and is already in court in Canada in an attempt to do so. He filed complaints with the Ontario Integrity Commission alleging that the Niagara Parks Commission acted inappropriately in entering into a lease with Maid of the Mist Steamboat Co. in Canada. He also submitted written protests with the New York state Office of the State Comptroller Bureau of Contracts concerning the lease arrangement between Maid and New York State Parks on the American side.

“We are going to set the record straight and we are going to go as long and as far as we have to,” Windsor said.

The Ontario Integrity Commissioner cleared the chairman of the Parks Commission of wrongdoing in the Canadian lease renewal, but did suggest the commission should review its contract procedures.

Brown noted that the New York State Comptroller’s Office has already rejected Windsor’s complaints on the American side.

“There has been no finding of improper conduct by the government agencies or Maid regarding Maid’s lease as a result of Mr. Windsor’s complaint and protest,” Brown said.

Contact reporter Mark Scheer at 282-2311, ext. 2250.

Text Only | Photo Reprints