LOCH SHELDRAKE—Two residents from Foxcroft Village in Loch Sheldrake had a $2 million defamation lawsuit against them dismissed by Sullivan County Supreme Court Justice Kevin R. Bryant.

“Bryant’s decision gives life to New York’s recently amended anti-(Strategic Lawsuits Against Public Participation) SLAPP law,” said Chris Watkins, attorney for the two Foxcroft Village residents.

In November 2021, Jenny Paesch and Jacqueline Murphy were served with a defamation lawsuit from Foxcroft Village after making several social media posts describing unsafe conditions at the complex.

“They have had to live with leaking sewage systems and unreliable water service, living conditions that are reminiscent of an underdeveloped country,” Watkins told the Democrat.

The Anti-SLAPP law helps defendants navigate a path to dismiss “meritless lawsuits” and has recently been amended to protect “person’s exercise of speech, press, assembly, petition and associations rights on a matter of public concern.”

Foxcroft has a reported problematic history with freezing pipes in the winter to claims of undrinkable water within the complex.

Sean Wall-Carty, Deputy Supervisor for the Town of Fallsburg, told the Democrat during a Resource Day, an event held in March 2022 for residents to seek income-based home repair assistance, that the town has reopened dialog with Foxcroft to help resolve some of the ongoing issues that residents have publicly addressed at several town board meetings.

Foxcroft said those social media posts made by Paesch and Murphy were false and were a “reckless disregard for the truth,” and the “reputation as a manufactured home park community” has been damaged, according to the lawsuit.

Watkins submitted evidence to the court that showed a long history of infrastructure problems at the complex and a discontinued lawsuit by the New York State Attorney General on the water issues at the manufacturer’s home village.

Furthermore, Watkins submitted the Securities and Exchange Commission conviction of George Levin —one of the complex’s owners—on a multi-million Ponzi scheme in Florida dating back to 2017.

“Judge Bryant’s decision gives life to New York’s recently amended anti-SLAPP law and tells the George Levins of the world that the courts are no longer going to tolerate their frivolous lawsuits intended to bully critics into silence,” said Watkins.

Justice Bryant said in his decision that Foxcroft did not provide enough evidence to prove their defamation, and the defendants were expressing their frustration on the ongoing issues which represent a public concern and is now protected by anti-SLAPP law.

Marvin Newberg, attorney for Foxcroft, said they are planning to appeal the decision.

“The appellate court will respect their rights to sue somebody who accuses them of a felony crime. Foxcroft feels that the judge’s decision was too expansive in interpreting the statute,” he told the Democrat.

Newberg said he agrees that the residents from Foxcroft can express their free speech; however, “accusing someone of committing a felony of bribery is way beyond fair public comment, especially when there’s no truth to it.”

Foxcroft claimed the defendants stated on social media that the owners of Foxcroft bribed local and state officials to turn a blind eye to the growing and reported concerns at Foxcroft. However, Justice Bryant said the social media posts were taken out of context and they, “[did] not amount to an accusation of bribery.”

Watkins said, “I look forward to litigating my clients’ counter-claims against Levin’s company at trial.”