Outlawnet reaches settlement

Outlawnet, the local Internet service provider affiliated with Sisters Schools, reached a settlement agreement on March 30 with Verado of Colorado Springs, Colorado.

Verado, formerly known as Firstworld, provides Outlawnet with its connection to the Internet. Verado suddenly cut off service March 16 in violation of their contract with Outlawnet, which required 30 days' notice.

In fact, Verado had been assuring Outlawnet for months that no service interruption was being considered, according to Outlawnet owner Jon Renner. (The Nugget, March 28, page 1)

Renner does not know why Verado decided to terminate service.

Outlawnet went to court and won a temporary restraining order restoring the connection on March 20. On March 30, a settlement was reached just prior to a second hearing on the case.

"Under the agreement, Firstworld (Verado) will continue service until April 18," said Outlawnet attorney Glenn Brown. By that time, Outlawnet will have switched to another provider of service.

"A settlement was also reached on Outlawnet's claims for monetary damages and attorney's fees," Brown said. He declined to specify the amount.

This did not actually cover all the costs that Outlawnet incurred as a result of the temporary outage, according to Renner. However, the cost of pursuing the matter through the courts would have been more than any potential award, he indicated.

Renner said he was told by the judge in the case, "Justice is expensive."

According to their web- site, Verado investors include energy giant Enron Corporation, Microsoft Corp. and Lucent Technologies.

The Board of Directors includes Donald Sturm, former vice chairman of construction giant Peter Kiewit Sons; James Sptizenberger, also formerly of Kiewit; Thomas Barrack, Jr., Chairman and CEO of Colony Capital and Colony Advisors; and John Donoghue, former Senior VP of MCI Worldcom.

Outlawnet is owned by Sisters teacher Jon Renner.