Founder of est Sues Cox, Says Statements Libelous

Est founder Werner Erhard sued C. Christopher Cox on Friday, charging that Cox libeled him in a mailer seeking to tie his controversial self-improvement theories to Erhard’s brother, Nathan Rosenberg, who is Cox’s rival in a Republican congressional primary.

In papers filed in Orange County Superior Court in Santa Ana, Erhard seeks $15 million in damages because the mailer and Cox campaign workers who telephoned voters allegedly referred to est as a “cult.”

Erhard maintains in the lawsuit that the claim will hurt his business in Orange County, where thousands of residents have paid to attend his seminars on “human potential” and “empowerment.”

Although Rosenberg is not a party to the action, Cox campaign officials called the suit a political ploy for Rosenberg and denied that Erhard’s reputation had been irresponsibly impugned.

“We’re not suggesting anything about est,” said Bob Schuman, Cox’s campaign manager. “People can use their own judgment whether est is good or bad.”

Cox, a Newport Beach attorney and former senior associate White House counsel, and Rosenberg, a Newport Beach businessman, are among the leading candidates to succeed retiring Rep. Robert E. Badham (R-Newport Beach) in the 40th Congressional District.

The mailer, sent out earlier this month to 110,000 voters, is emblazoned with the words “Warning” and “Beware.” It features a photo of a smiling Rosenberg next to the words: “See why Nathan Rosenberg is clouding the truth.”

Several quotations said to be from the May issue of Los Angeles Magazine follow, in which one source describes est as a “destructive cult” and another says “what Erhard has done is utterly disastrous.”

The mailer calls Rosenberg “an advocate for est.”

The circular identifies the Cox campaign as its source in tiny letters printed along its edge.

Est stands for Erhard seminars training, which was among several “human potential” programs that gained popularity in the 1970s. Nearly 500,000 people have participated in Erhard’s programs, including, the suit asserts, 15,000 residents of the 40th District.

Erhard, who changed his name from Jack Rosenberg, stopped offering est programs in 1984. His theories are now presented in a seminar program known as The Forum.

Rosenberg has made no secret of his affiliation with his brother’s enterprises and has said throughout his campaign that he has lectured on leadership at Forum seminars.

Ted Long, Rosenberg’s campaign manager, said that as a result of the mailing, more than 600 voters have called his campaign headquarters. Most were upset, he said, that Cox had linked the Rosenberg campaign to Erhard’s enterprises.

Erhard’s attorney, Bill O’Hare, said his client resented being drawn into his brother’s campaign. He said Erhard intends to pursue the suit regardless of his brother’s fate at the polls June 7.

The Erhard suit brings the Cox campaign to Orange County courts for the second time. In April, Cox unsuccessfully sued elections officials after they refused to let him include President Reagan’s name as part of his occupation on the June ballot.

Cox had sought to identify himself as “senior Reagan counsel” but will appear as “White House counsel” on the ballot.