MR. Berman,
First, thank you for taking the time and making an effort to address the thread. Hopefully, this will allow us to gain a better understanding of how Lethe Press operates. The confusion about copyediting stems from another author with your company, who posted a portion of his/his contract which read:
All authors must secure the services of a copy editor before turning in final manuscripts for publication. Otherwise, such manuscripts will be deemed unacceptable. If an author does not know a skilled copy editor, Lethe Press can offer recommendations. The Author is responsible for paying the copy editors fees. If the Author cannot pay this at the time of submission, the fees will be deducted from his/her forthcoming royalties.
The idea that Lethe doesn't do edits was supported by yet another Lethe author. I think it might be best if you, the publisher, clarified once and for all what that clause in your contract means and how it applies to your current authors.
As for the situation with Beth, I find it curious that you would--out of apparent vindictiveness--drop her contract because of a post she made on her blog? When one of my authors has a complaint, I endeavor to work with that author and rectify the situation between us. I don't run off and pull her title, because all that does is to make the situation worse. If, as the author indicated, she was questioning some delinquent paperwork and/or a payment schedule, wouldn't it make more sense to address that situation first? As a publisher, you are contractually obligated to your authors to make certain that these things--their tax forms, their royalty schedules and God knows their royalty payments--are where they need to be.
Blog posts don't consitute a reason to terminate a publishing relationship, and considering the very public posts you made in regards to her and to another author on your livejournal, I find it very ironic that this is the reason you cite for pulling her books on one of the premier watchdog sites on the internet.
Most of us have been very surprised at how this situation has unfolded, because Lethe has a well-earned reputation as a fine small publisher, especially in the LGBT world. And you might want to take a moment and look back over this thread. Until yesterday, Beth was the person here who spoke in your defense.
Just sayin'...
I hope you resolve this situation to everyone's satisfaction. But of more interest to this community as a whole is a clarification of the editing situation and your approach to it in your contract.