PALO ALTO PAPER’S PARTNERS SETTLE

By: Lucia Moses

Arbitrator Brought In To Decide Case


David Danforth, who accused his former partners at the Palo
Alto (Calif.) Daily News of suppressing stories
unfavorable to potential advertisers, has been ordered to pay
$5,728.81 in arbitration fees and compensation in the case.

Danforth, who has started a number of small free dailies in
California and Colorado, also alleged in his 1999 lawsuit that
David Price and James Pavelich diverted $400,000 of the paper’s
revenue to themselves and unfairly ousted him from the paper’s
management in 1996. Price and Pavelich denied the charges.

The parties agreed to let an arbitrator decide the case without
giving a reason for the ruling.



Lucia Moses (lmoses@editorandpublisher.com) is an associate editor covering business for
E&P.



Copyright 2001, Editor & Publisher.

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