LIHU‘E — A Kaua‘i hang gliding outfit is suing two tour-scheduling companies for what it claims are disparaging comments that have led to a loss of business. Birds In Paradise LLC filed a suit in 5th Circuit Court on Friday,
LIHU‘E — A Kaua‘i hang gliding outfit is suing two tour-scheduling companies for what it claims are disparaging comments that have led to a loss of business.
Birds In Paradise LLC filed a suit in 5th Circuit Court on Friday, for cause of action against Frogman Charters Inc., doing business as Boss Frogs Travel, and West Maui Resort Partners L.P., doing business as Activity Warehouse.
The defendant companies are Maui-based and offer scheduling services through Kaua‘i kiosks or online and phone services. They contract for commission with companies that provide activities marketed to visitors, including hang-gliding lessons, lu‘aus, kayaking, ziplining and ATV or air tours.
The suit alleges that within the past six months, employees of Boss Frogs Travel and Activity Warehouse knowingly lied to potential customers of Birds In Paradise. The complaint states that employees discouraged parties from seeking reservations with Birds In Paradise by saying past clients have “been killed” or “went missing and were never found.”
“It’s wink, wink, nod, nod stuff,” said Gerry Charlebois, owner and founder of Birds In Paradise. “We went in undercover and videotaped them multiple times, going on and on, slandering my company.”
Charlebois said he does not contract or have an agreement with any scheduling company. He said it is because of this that the companies badmouth his reputation.
It was a visitor who called Birds In Paradise to say that a scheduling company had discouraged his family of four from flying with the company. Rather than being told the company didn’t schedule for Birds In Paradise, he said they were told that people have disappeared and died.
“We want them to stop telling people that we kill people,” Charlebois said. “We don’t kill people. It’s all about the commission.”
Birds In Paradise has one reported incident involving a person suffering a broken leg in 24,000 flights over 22 years, Charlebois said.
For a company operating two-seat aircraft with seven employees, paying a 35 percent commission to a scheduling company does not work within the margins to make the business viable, he said.
“It makes no sense doing it,” Charlebois said. “People have to book direct, and so the activity companies resort to innuendo.”
The complaint alleges Birds In Paradise has suffered from the defamatory and slanderous misrepresentations.
It also charges unfair methods of competition and deceptive trade practices by disparaging a business with false or misleading representations.
The defendants have contracts or agreements with competitors of Birds In Paradise and the suit charges intentional interference with economic advantage. The suit is seeking damages to be proven at trial.
Chris Mosk, director of sales for Boss Frogs Travel, said they have not seen the complaint yet but that the company does not book with anyone not under contract. The process requires companies to be compliant and have all the insurances in place.
As a company rule, Mosk said, kiosk employees at Koloa, Po‘ipu and Kapa‘a are trained to not use negative talk or to disparage the competition.
“As a business practice, that is just not that smart,” Mosk said.
Hawai‘i is “marketing crazy” with rack cards, publications and map ads, he added. It is not uncommon for people to approach the kiosk or call about something they read about that the company doesn’t schedule.
“If we don’t book them, we show them alternatives,” he said.
One helicopter tour outfit on Kaua‘i, on condition of anonymity, said that all scheduling companies are not the same. The manager said it’s just sound business practice to find a scheduling company and come to a mutually beneficial agreement.
“That means limiting who you work with,” the manager said. “We don’t deal with the companies in question anymore.”
Birds in Paradise was founded in 1990. It first offered tandem hang gliding and started offering powered hang gliding in 1993.
Charlebois has flown hang gliders since 1978 and once won the state hang gliding championship. He is an FAA-certified flight instructor, an FAA-certified mechanic and a certified Rotax aircraft engine technician.
Lihu‘e attorney Daniel Hempey of Hempey & Meyers is representing Birds In Paradise.
