Cape Wind v. John Donelan

Cape Wind today announced it has accepted a settlement offer from John Donelan of $15,000 to resolve a defamation lawsuit filed against him for a fraudulent act he committed while Technical and Research Director of the Alliance to Protect Nantucket Sound. The Settlement Agreement followed Judge Allan van Gestel's Order in November, 2005.
"This lawsuit sends an important message: Although we welcome honest and fair debate, there is no place for fraudulent or unethical acts that mislead the public", said Cape Wind Communications Director Mark Rodgers.

Cape Wind v. John Donelan Lawsuit

The lawsuit began when John Donelan sent a false press release to State House Newswire Service in January, 2004 that sought to smear Cape Wind. The false press release was made to appear to be from a local company "announcing" it would not do business with Cape Wind. In an article that appeared on January 31, 2004 in the Cape Cod Times, Ernie Corrigan, spokesman for the Alliance to Protect Nantucket Sound denied anyone at the Alliance was involved: "Our opposition to this project is passionate and deeply-felt, but we would never stoop to any tactics such as this."

Cape Wind retained Kroll Security to conduct an investigation and, with the assistance of two court orders, the investigation traced the fraudulent press release to a computer at the home of the Research and Technical Director of the Alliance to Protect Nantucket Sound, John Donelan.

On March 2, 2004 a reporter with the Cape Cod Times asked Mr. Donelan if he sent the press release. At first, Donelan denied any involvement, but hours later admitted that he had written and sent the phony press release.

Also on March 2, 2004, Cape Wind filed a lawsuit against Donelan alleging a fraudulent act that sought to defame and discredit Cape Wind with other businesses, with regulatory agencies and with the public. The lawsuit alleged three other examples of "dirty tricks" carried out by the Alliance to Protect Nantucket Sound that included the distribution of 100,000 fliers of a distorted map that tripled the actual area of the wind farm, the use of distorted images on the Alliance website of what the wind farm would look like from land, and the Alliance's use of a faulty "viewshed map" that greatly exaggerated how many areas of the Cape and Islands that could see Cape Wind. Each of these incidents had been reported in local newspapers.

On March 18, 2004, Mr. Donelan was questioned by a Cape Wind attorney in a deposition for the lawsuit in which he refused to answer over 400 questions, invoking his Fifth Amendment rights against self-incrimination.

On November 18, 2005, Judge Allan van Gestel issued an Order stating that it was deemed established that "Donelan published a defamatory statement about Cape Wind." On January 31, 2006, a Settlement Agreement was reached between Cape Wind and Mr. Donelan.

Cape Wind donates Settlement to a worthy cause

Cape Wind President Jim Gordon announced that he would donate the $15,000 settlement to Project Prevention. Project Prevention is administered by the Housing Assistance Corporation of Cape Cod and provides assistance to low-income families having difficulty paying rent and energy bills. Project Prevention has assisted over 250 families on Cape Cod over the past six months.

"This gift from Cape Wind comes at a critical time for many of our clients in need," said Rick Presbrey, Executive Director of Housing Assistance Corporation of Cape Cod. "Often, a family must choose between paying for heating fuel and other utilities rather than paying their rent or mortgage, then fall behind on payments and eventually lose their home because they can never catch up. HAC will use these funds to help people pay their heating and electricity bills so that they can keep their family warm and stable despite their financial challenges."

Cape Wind's proposal to build America's first offshore wind farm on Horseshoe Shoal would provide three-quarters of the electricity used on Cape Cod and the Islands from clean, renewable energy - reducing this region's need to import oil, coal and gas. Cape Wind will create new jobs, lower electric costs, contribute to a healthier environment, increase energy independence and establish Massachusetts as a leader in offshore wind power.