Here's my thought on it, if it were up to me and I were going to set it up right now -Now that this Troubadour story is concluded, I'd love the discussion to return to Amir's original question about the suitability and community appetite for a general legal defense fund. This is my 2 cents as a practising lawyer and an EE by training. I've served on the board of a not-for-profit and I belong to two different regulated professional associations.
1. I would be very worried about the effectiveness and public acceptance of a general legal defense fund, a fund that is a pile of money amassed before actual litigation. This opens such a huge can of worms. Who holds the money? Amir in a regular bank account? A lawyer in a trust account? Gofundme? How can the money be used? Only on costs directly related to actual litigation? What about general legal advice or incorporation, not related to actual litigation but which is intended to minimize liability exposure? These are typical costs of running a business, not defending a lawsuit. Will there be rules about arms-length relationships with retained lawyers (can't hire a buddy or family)? Will there be rules about minimum competency (can't hire your estate or tax lawyer to do defamation), or maximum billable rate? Who manages the fund and who is allowed to dip into the fund? If no actual litigation happens, is money returned to contributors after a certain amount of time, or is it kept in the fund for future possible lawsuits?
I do not mean to impugn the integrity of Amir, Erin, or anyone else, but I don't feel comfortable contributing to this type of fund simply due to the potential for abuse, mismanagement, or reputation-damaging scandal.
2. A less risky alternative would be to set up a Gofundme only after a suit is filed in court. Decent people don't set up a cancer Gofundme simply because of family history; they do it after a diagnosis. The fund would be constrained to a specific case (and appeals) and unused money would be donated to a charity specified at the creation of the fund. Some of the concerns in 1. should still be managed here, but the specific nature of this fund makes it more palatable to me, personally, to accept the risks.
3. A trade association with dues and insurance. I don't think the membership would be big enough to make this viable, but others would know better than me.
It would be a trust, specifically for litigation or pre-litigation advice only, and funding would be limited to reviewers of audio equipment facing legal threats over their reviews. Eligibility for funding should be pretty easy to determine on a case-by-case basis.
I think there would also need to be a criterion as to whether the review was prima facie legitimate. If the trust determines that the review actually was very likely defamatory or negligent, the funds shouldn't be wasted on that.
I think it would need to be managed by a board of some sort.
I think your points about competency, conflicts of interest, etc. are good. A lot of details would need to be worked out while setting up the trust. Ideally a member who is an attorney can help set it up to avoid blowing all the cash in the process of creating the fund. So there also ought to be a stipulation that the reviewer would need to agree to deposit any funds raised related to the lawsuit back into the trust...
Anyway, yeah this gets very complex once you start thinking about it concretely. But I'm definitely in support of the idea after having watched this play out. Volunteer attorney definitely required for this...
I think the money would sit in the fund indefinitely, not to be returned to anyone. I think that's a feature, not a bug. If there's a pool of money out there, specifically to counter any audio reviewer facing this type of threat, this type of threat will be significantly deterred. And the reviewers will have a lot less stress about it.
If people like Eric Alexander knew (for example) that there was $250K of cash just sitting there, waiting to make him look stupid in court, even he would never send the kind of emails he's sent to Amir and Erin. As we know the only real danger a litigant like this poses is fiscal and temporary, but that can be a serious danger.
The analogy to a cancer gofundme* falls apart because you can't scare cancer off by having a healthy bank balance.
* HOWEVER - if anyone gets caught up in a lawsuit and actually needs the funding, they should definitely be encouraged to use that situation to fundraise, to avoid depleting the fund and ending back where we started.
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