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479 F.Supp.3d 840
N.D. Cal.
2020
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Background

  • Plaintiffs Penrose Hill, Ltd. (a Delaware winery) and CEO Philip James sued blogger Paul Mabray for defamation based on a Dec. 11, 2017 blog post and a 2019 Tweet that linked to it; suit filed Feb. 14, 2020.
  • The Blog Post criticized certain online/private‑label wine businesses as “fakers,” recounted prior controversial episodes involving James, and alleged that Penrose Hill/Firstleaf repackaged low‑quality wine.
  • In 2019 Mabray tweeted a link to the Blog Post; the Twitter preview displayed the article title, James’s photo, and a short quote (“Some good, some fakers.”).
  • Defendant moved to strike under California’s anti‑SLAPP statute and for judgment on the pleadings under Fed. R. Civ. P. 12(c); plaintiffs sought injunctive relief and damages.
  • The court held the bulk of the Blog Post was time‑barred (one‑year statute) but the Tweet preview republished limited content; it denied the anti‑SLAPP motion and granted Rule 12(c) dismissal because the Tweet’s challenged statements were non‑actionable opinion.
  • Plaintiffs were given leave to amend; anti‑SLAPP fees request was not granted because the special motion was denied.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Timeliness / Republication The 2019 Tweet republished the Blog Post and reset the statute of limitations. The Blog Post (Dec. 2017) is outside the 1‑year limitations period; a mere link does not republish. Blog Post statements are time‑barred; the Tweet preview (title/photo/short quote) constituted a limited republication and is timely.
Anti‑SLAPP (public interest) The statements concern the wine industry and consumer protection, so speech is tied to a public issue. The Tweet is protected speech about business models and is made in a public forum. Anti‑SLAPP denied: the Tweet’s content lacked sufficient closeness to a public interest issue to qualify for the statute’s protection.
Defamation — Fact vs. Opinion The Tweet preview and link conveyed false, defamatory facts about James and Penrose Hill. The Tweet and preview are opinionated, vague rhetoric (“fakers”), not provably false factual assertions. Rule 12(c) granted: the Tweet’s challenged words are non‑actionable opinion and do not imply verifiable false facts.
Remedy / Pleading Plaintiffs seek to proceed on defamation claim and injunctive relief. Defendant seeks dismissal (and fees) based on statute of limitations, anti‑SLAPP, and lack of falsity/actual malice. Complaint dismissed as to time‑barred Blog Post statements and as to the Tweet (opinion); leave to amend granted.

Key Cases Cited

  • Planned Parenthood Fed’n of Am., Inc. v. Ctr. for Med. Progress, 890 F.3d 828 (9th Cir. 2018) (federal courts must permit discovery for factual anti‑SLAPP challenges; legal challenges evaluated under Rule 12/8 standards)
  • Milkovich v. Lorain Journal Co., 497 U.S. 1 (1990) (statements of opinion are not actionable absent a provably false factual connotation)
  • Shively v. Bozanich, 31 Cal.4th 1230 (Cal. 2003) (single‑publication rule and when republication accrues a new cause of action)
  • Yeager v. Bowlin, 693 F.3d 1076 (9th Cir. 2012) (hosting a statement on a website without more is not republication; republication requires alteration or direction to a new audience)
  • Roberts v. McAfee, Inc., 660 F.3d 1156 (9th Cir. 2011) (continuing to host a website does not constitute republication)
  • Underwager v. Channel 9 Australia, 69 F.3d 361 (9th Cir. 1995) (three‑part test for whether a statement implies provable facts: broad context, specific context/content, and factuality of the statement)
  • FilmOn.com Inc. v. DoubleVerify Inc., 7 Cal.5th 133 (2019) (public‑interest inquiry for anti‑SLAPP requires a meaningful connection between the speech and the public issue)
Read the full case

Case Details

Case Name: Penrose Hill, Limited v. Mabray
Court Name: District Court, N.D. California
Date Published: Aug 18, 2020
Citations: 479 F.Supp.3d 840; 4:20-cv-01169
Docket Number: 4:20-cv-01169
Court Abbreviation: N.D. Cal.
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