This explains a lot about Scoville and his business "acumen".
From a posting on USENET by Spamtrap@spamcop.net:
Artifacts follow:
(1) Richard Morton Scoville was described in a Friday, November 16,
1990 San Antonio Business Journal article ("Artesia Water Loses
Moneyin Judicial Victory") as the "owner" of ArtesiaWaters.
In that article, "Rick Scoville" was described as having brought suit
in February 1987 against a glass bottle manufacturer in Mexico and
winning, in December 1989, a substantial judgment in a jury trial:
$ 28,060 actual damages
$ 2,000,000 exemplary damages
$ 136,000 attorney's fees
However, in May of 1990, a judge reduced the award to actual damages
only. Per the article:
"My greatest fears had become a reality -- that a judge, not a jury of
my peers, would tender a verdict which was predicated by something
other than right versus wrong," says company president Scoville. Judge
Whittington was unavailable for comment. But jury foreman Darla Allen,
who LEARNED OF THE CHANGE IN THE AWARD THROUGH LETTERS FROM SCOVILLE,
says she is disillusioned about the system.
...
Scoville was FINED FOR CONTEMPT OF COURT DURING THE TRIAL and fined $
500 when he protested to the judge against an ACCUSATION BY THE
DEFENSE THAT HE WAS BOTTLING TAP WATER. ... "We almost did go out of
business because of this," Scoville says.
(2) On Wednesday, April 10, 1991, the Wall Street Journal published an
article with this title:
FDA FINDS BUNK IN BOTTLEDWATER CLAIMS
In summary, the article stated:
Food and Drug Administration survey of US bottled-water industry
suggests that water of number of domestic companies may not be as pure
and natural as consumers have been led to believe; ArtesiaWaters ...
is heavily processed and COMES FROM THE SAME UNDERGROUND SOURCE THAT
SANANTONIO TAPS FOR ITS MUNICIPAL WATER SUPPLY...
(3) This article was followed by more public discourse regarding
bottlers and their claims, including specific discussion regarding
Richard Morton Scoville's company, Artesia Waters. As noted in
theMonday, April 15, 1991 article in 'Adweek Marketing
Week' (BRANDWEEK):
Water Brands Face New Scrutiny
Last week the $ 2.6 billion category won more unfavorable publicity as
Rep. John D. Dingell (D-Mich.) conducted hearings on the industry.
In testimony, the FDA revealed a bit of common industry knowledge --
that bottledwater sources are often the same ones used by
municipalcities. For the White House's favorite water brand, Artesia,
Artesia Waters Inc. USES THE SAME ACQUIFIER AS THE CITY OF SAN
ANTONIO, TEXAS
...
I think if I lived in San Antonio," ... "I'd feel a little cheated."
(4) In a Monday, July 10, 1991 article in the "Marketing News",
Scoville announced his plans to sue the Wall Street Journal, and a
professor who was a source for the WSJ's article, and
"possiblelitigation against [U.S. Representative John D.] Dingell".
Bottled-water firm set to sue over charges
ArtesiaWaters Inc., San Antonio, Texas, which is threatening legal
action, said it watched sales plummet 45% in May, a month after a
General Accounting Office report, ...
The charges that Artesia is the same quality as San Antonio's tap
water are "totally ludicrous," Scoville said. ...
But Scoville said it was the The Wall Street Journal's preview of the
House hearings, which included allegations against Artesia, that had
the "most damaging marketing effect."
...
the company is putting together a "major, major lawsuit" against the
Journal and one of the story's sources, ... a professor of
environmental health and hydrology at University of Texas at
Houston. ...
The congressional hearing "stirred up some unnecessary controversy"
but "I really don't think it hurt the industry," said Hellen Berry,
vice president of marketing at Beverage Marketing Corp., New York.
Consumers were skeptical about bottled water but that lasted "no more
than a week." ... Artesia was one of the few brands "actively
affected" and it has "already starting making its explanations." Berry
said other bottled water marketers "would be well advised to ignore
[the controversy] totally."
(5) According to a Friday, August 14, 1992 article in the San Antonio
Business Journal, Scoville and ArtesiaWaters filed yet another
lawsuit, this time in July against another bottle supplier, claiming
"2 millionin sales ... and $ 5 million a year in potential sales".
Artesia, Bottle Supplier Negotiating to Settle Legal Dispute
Artesia's petition alleges that [Vidriera Oriental, S.A. de C.V.
(VOSA) of Mexico] misrepresented its ability to produce bottles before
entering into its contract, violating the Texas Deceptive Trade
Practices Act. Under the act, Artesia should be able to recoup its
attorneys fees from the defendant in addition to three times its
actual damages, according to the suit. ...
The suit is not the first Artesia has filed against a Mexican bottle
company. ...
In that suit, a Dallas County judge pitched out a jury's decision
togrant Artesia $ 2 million in punitive damages and legal fees,
instead awarding the company $ 28,060 in damages from the lengthy
case. The judge's decision cost Artesia $ 150,000 in legal fees that
it would have partially recouped if the jury's decision had been
allowed tostand.
Within six months of the decision, Artesia appealed the suit and came
to an out-of court settlement with Vitro, Scoville says. He would
notreveal the amount of the settlement.
(6) In a Monday, January 25, 1993 article, the "Legal Intelligencer"
announced the jury's verdict AGAINST Scoville and ArtesiaWaters in
theWSJ lawsuit:
JURY: ARTESIA WATERS WAS NOT LIBELED
A federal court jury ruled Thursday that ArtesiaWaters, Inc., was not
libeled by a story in the Wall Street Journal that said the
companymisled consumers about the source of its product.
Artesia President Rick Scoville said he planned to appeal,...
Both Scoville and his attorney, George Shaffer, said they won a moral
victory because the jury did find that the company had not
distributedcontaminated water and did not have to recall any of its
products.
(7) A Monday, Frbruary 15, 1993 article in "Texas Lawyer" describes
the
verdict additionally:
ARTESIA WATERS INC. v. BRUCE INGERSOLL and THE WALL STREET JOURNAL
... Austin's George, Donaldson & Ford successfully defended The Wall
Street Journal and one of its reporters in a $10 million libel
suitfiled by San Antonio-based ArtesiaWaters Inc.
Artesia was represented by brothers George Shaffer and Robert Shaffer
& Shaffer.
U.S. Magistrate Judge John W. Primomo of San Antonio on Jan. 25
entered a take nothing judgment and dismissed the suit with prejudice.
An eight-member jury ... found Jan. 21 that statements in an article
published April 10, 1991, were not false and defamatory to Artesia.
...
The suit, filed in March 1992, alleged that the article implied that
Artesia sells city water, has had false or misleading promotions, has
bottled contaminated water and has conducted a recall. The jury found
only that the article stated or implied that Artesia sells city water
and has had false or misleading promotions. But the jury said those
statements were not false and defamatory.
(8) The case had interest in the publishing community, as noted in a
Saturday, February 20, 1993 article in "Editor & Publisher Magazine":
WSJ cleared in libel case
...
The jury found that the "article is a substantially true account of
the activities of the FDA" and a congressional committee.
Scoville claimed in the $ 10 million libel suit, filed in March 1992,
that the story damaged the company's reputation and reduced its sales.
Journal lawyer R. James George said the company misled the public by
claiming the water was "bottled at the source" and showed a waterfall
on the label. However, George said, there was no waterfall at the
source. He claimed Scoville even kept the source a "trade secret"
forsome time
(9) It is unclear if Scoville's string of unsuccessful lawsuits led to
this, but, as noted in this Friday, November 25, 1994 article in the
San Antonio Business Journal, the "financial backer of firm-founder
Rick Scoville" sold ArtesiaWaters Inc. to an employee, MARGARET K.
SHODROCK, and two outside investors:
Artesia: New owners, focus
ArtesiaWaters Inc., Texas' oldest bottler of mineral water, has
quietly changed hands.
...
...Shodrock says the deal was "very attractive." The Business Journal
was unable to reach Scoville before press time or find out the name of
Scoville's backer.
The firm's new owners have also changed Artesia's name to Alamo City
Beverage Inc., but will continue to offer products under the
Artesianame.
Alamo City Beverage currently has a work force of 18 people, but
employs more during its peak seasons during the summer. It operates at
a 37,000-square-foot bottling plant at 4671 Walzem Road. The
companypurifies and bottles water from the Edwards Aquifer.
Shodrock has been employed by Artesia for seven years, serving in
positions ranging from corporate comptroller to operations manager.
The firm's new president, Cheryl K. Randol, formerly maintained a
local dental practice, served in a teaching position at the University
of Texas Health Science Center and as a senior vice president at Texas
Dental Plans Inc. Randol and her husband are now co-owners of Alamo
City Beverage. ...
The company has replaced its old trademark brown glass bottles with
plastic.
...
According to Shodrock, the company under Scoville suffered declining
market share because of its emphasis on carbonated and flavored water.
"It was a management decision." Shodrock says. "(Carbonated water) was
the emphasis that (Scoville) wanted." Scoville is no longer with the
company.
Scoville, a former industrial glue salesman, launched the company in
1980, taking on France's Perrier, the dominant brand of bottled
waterat the time.
Scoville, an aggressive pitch man for his products, took the company
through a series of ups and downs during his tenure as CEO. During the
late 1980s, Artesia outsold Perrier's name-brand carbonated water
inTexas.
But, the firm also felt a slap when the Wall Street Journal ran an
article claiming the company misled consumers about the source of its
product. The company filed a $ 10 million libel suit against
thepublication, but a federal jury found the story not to be
libelous.
During the trial, testimony pointed out that the firm's earnings
decreased from 1989 to 1991, according to media reports. In better
times--1985--Scoville turned down a buyout offer from brewing
giantAnheuser-Busch.
(10) An amusing footnote to the foregoing, and a preview of his
current net lunacy, is provided by this report of harassment by
Scoville ofsamspade.org:
http://static.samspade.org/
A usenet spammer, using the name of Margaret Morice, using the email
addresses flyrite@swbell.net, mamorice@aol.com, KRic...@aol.com and a
number of flyno...@aol.com addresses is harassing both SamSpade.org
and centergate.com (the nice company that donates all of SamSpade.orgs
huge bandwidth requirements).
So far the harassment has taken the form of mailbombing, obscene
email, frivolous complaints to providers, harassing phone calls, bogus
police reports, threats of lawsuits and a number of other things.
These have gone to not only myself and the employees of Centergate and
associated companies but also to others who sit on the same commitees
as Centergate staff members. There have also been false allegations,
including what appears to be forged porn spam, sent to
businessassociates, risking significant business costs.
