Phoenix Trading, Inc. v. Loops LLC
732 F.3d 936
9th Cir.2013Background
- Amercare and Loops are competing hygiene product companies; Loops designed a prison-safe toothbrush and bid on NYC-DOC contract that Amercare later won.
- Loops alleged Amercare altered Loops toothbrushes, infringed Loops patent, and counterfeited Loops products in letters to officials and press; Amercare filed defamation in WA state court, later removed to the Western District of WA.
- District court granted Loops’ anti-SLAPP motion, holding immunity for statements to government bodies and considering media/IAC statements under public-concern framework, with malice lacking.
- Patents: Loops obtained a patent in 2008; district court found Loops could not recover monetary damages for patent infringement because of timing and marking issues.
- Lead-content and patent-infringement statements to press/IAC were analyzed for defamation; lead-content statements found nonactionable opinions to the press and public, while pre-issuance patent-infringement assertions toward government were not defamatory due to immunity or nondefamatory framing.
- On appeal, the Ninth Circuit affirmed the anti-SLAPP dismissal, holding immunity for government communications, timeliness considerations, limitations on certain statements, and lack of malice or falsity for remaining claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is Loops immune under § 4.24.510 for statements to government officials?</string> | Amercare argues liability for government-targeted statements should be barred by immunity. | Loops contends immunity applies to all government communications under § 4.24.510. | Yes; immunity applies to government statements, eliminating liability on those statements. |
| Are Amercare's lead-content and counterfeit/alteration claims time-barred by the statute of limitations? | Amercare contends limitations should toll or avoid dismissal. | Loops asserts two-year limit bars first two categories; later claims may survive. | Lead-content and alteration/counterfeit claims barred by statute of limitations. |
| Do statements to the press or IAC support defamation despite immunity for government communications? | Amercare argues malice can be shown to sustain defamation against non-government audiences. | Loops maintains those statements are nonactionable opinions or not proven with malice. | Lead-content statements to press are nonactionable opinions; remaining claims not shown with malice. |
| Did Amercare show the elements of defamation for remaining statements (lead content and patent references) after immunity and limitations analysis? | Amercare claims falsity, publication, fault, and damages are met with malice and public-figure status. | Loops argues statements were opinions or inadequately proven to be false with malice. | Amercare failed to prove defamation elements for these statements; judgment affirmed. |
Key Cases Cited
- White v. Johns-Manville Corp., 693 P.2d 687 (Wash. 1985) (discovery rule and accrual in defamation claims)
- Clare v. Saberhagen Holdings, Inc., 123 P.3d 465 (Wash. Ct. App. 2005) (discovery rule; due diligence in accrual)
- Ollman v. Evans, 750 F.2d 970 (D.C. Cir. 1984) (test for distinguishing fact from opinion in defamation)
- N.Y. Times v. Sullivan, 376 U.S. 254 (S. Ct. 1964) (actual malice standard for public figures)
- McNeal v. Allen, 621 P.2d 1285 (Wash. 1980) (privilege and immunities in communications context)
- Robel v. Roundup Co., 59 P.3d 611 (Wash. 2002) (defamation context and factual falsity considerations)
- Corbally v. Kennewick Sch. Dist., 973 P.2d 1074 (Wash. Ct. App. 1999) (public-figure and malice considerations in defamation)
- Haueter v. Cowles Publ’g Co., 811 P.2d 231 (Wash. Ct. App. 1991) (context and audience in evaluating statements as nonactionable opinions)
- McNeal v. Allen, 621 P.2d 1285 (Wash. 1980) (assertions in judicial context and privilege)
- Peregrine Funding, Inc. v. Sheppard Mullin Richter & Hampton LLP, 35 Cal. Rptr. 3d 31 (Cal. Ct. App. 2005) (burden-shifting in anti-SLAPP analysis (California law cited for standards))
