In 2006 ESP (Email Service provider) e360 insight, who send emails on behalf of their clients sued blocklist/anti spam organisation spamhaus after it listed its domains/IPs as allegedly sending spam.

The UK based Spamhaus did not defend the case which was brought to the courts on the basis of loss of earnings and the ruling was made in their absence. Spamhaus was ordered to pay $11.7m in compensation to e360 Insight, pull the organisation’s blocklist listing, and post a notice stating that it was inaccurate and wrong to say e360 Insight was involved in sending spam.

Spamhaus ignored the ruling and e360 insight responded by calling on the court to order the domain registrars Tucows or ICANN to suspend the spamhaus domains which would have taken the whole blocklist offline however the court denied this request.

e360 claim that 3 billion out of the 6.6 billion emails it sent on behalf of clients were blocked as a direct result of the listing as such a large percentage of mail administrators use the spamhaus blocklist as a method of determining whether a particular email is spam or not.

In mid June 2010, the appeals court slashed the $11.7m ruling to just $27,002 after it said e360 insight had been unable to substantiate its claims for loss of earnings and that the method used to calculate the loss of earnings was unscientific and not backed up by expert opinion.

The $27k was made up of $27000 compensation for loss of one e360 client which works out to be one months additional work that e360 would have had if it were not for the blocklisting and for the loss of two further clients $1 per client was awarded.

The judge also turned down e360 insight’s request of an injunction preventing spamhaus from being able to list e360 again in the future.