Britts v. Superior CourtBritts v. Superior Court
Opinion
In this original proceeding, we address whether the stay on “[a]ll discovery proceedings” (
As provided under
We hold that the language of the statute, which we construe broadly and in light of the statute’s legislative goals and history, must be read to mean that discovery motions, including those that are pending, are also stayed upon the filing of an anti-SLAPP motion. The trial court here proceeded with the pending discovery motion and issued an order against petitioners compelling discovery, deeming their objections waived, and imposing sanctions against them after their anti-SLAPP motion was filed and the discovery stay invoked. We accordingly grant petitioners’ request for writ relief.
STATEMENT OF THE CASE
On July 8, 2005, real party in interest (plaintiff below) Berg & Berg Enterprises, LLC (Berg), brought an action against petitioners David Britts, Tony Daffer, Barry Eggers, Diana Everett, John W. Gerdelman, Cliff Higgerson, Joseph Kennedy, and Bob Williams, as well as another codefendant, John Boyle, alleging a single cause of action for breach of fiduciary duty. The complaint alleged that petitioners and Boyle were former directors of an entity known as Pluris, Inc., of which Berg was a creditor. When Pluris, Inc., became insolvent, petitioners and Boyle allegedly breached their fiduciary duty to Berg by liquidating the company through an assignment for the benefit of creditors, rather than through bankruptcy proceedings.
In response to petitioners’ demurrer to the complaint, Berg filed a first amended complaint, which again pleaded the breach of fiduciary duty cause of action and added causes of action for negligent and intentional misrepresentation as species of fraud. Berg also served a demand for production of documents on petitioners under section 2031.010. Petitioners’ responses to both the amended pleading and the demand for production were due on January 3, 2006. On that day, Berg also served a notice of taking deposition of petitioner Bob Williams under section 2025.210. The notice set the deposition to take place on January 17, 2006, and also demanded the production of documents at the deposition.
In lieu of responding to the complaint or the discovery requests, on January 3, 2006, petitioners filed a special motion to strike under section 425.16—the anti-SLAPP statute—directed at Berg’s negligent and intentional misrepresentation causes of action. They also separately demurred to the breach of fiduciary duty cause of action. All parties agreed that the filing of the anti-SLAPP motion effected a stay on Berg’s pending discovery efforts under
On February 24, 2006, the trial court (Hon. C. Randall Schneider), by written order, sustained petitioners’ demurrer with leave to amend. The court determined that Berg could not state an individual claim for relief but could amend to plead the claim derivatively. Finding that it would have granted the anti-SLAPP motion had Berg not dismissed the fraud causes of action, the court also determined that petitioners were entitled to an award of attorney fees under the anti-SLAPP statute, the amount thereof to be determined by
separate motion. (
On March 1, 2006, petitioners served their responses to Berg’s demand for production of documents. The responses were composed of objections, which nevertheless constituted a “response” under section 2031.210. On March 2, 2006, Berg served by hand delivery notice of entry of the court’s February 24 order. At the same time, Berg contended that the discovery responses served by petitioners the previous day were untimely and that all objections had consequently been waived. Berg argued that the responses had been due on February 24, 2006, since the court’s order indicating how it would have ruled on petitioners’ anti-SLAPP motion and finding that they were entitled to attorney fees had been served by the clerk that day, effectively terminating the discovery stay under
On March 3, 2006, petitioners served their objections to the renoticed deposition of Bob Williams under section 2025.410. Although Berg had served the day before a notice of entry of the court’s order stating how it would have ruled on petitioners’ anti-SLAPP motion, the grounds for objection to the deposition included that the stay was still operative. On March 10, 2006, Berg for a third time noticed the deposition of Bob Williams to take place on March 23, 2006. Petitioners again objected to the deposition on numerous grounds, which this time did not include that the anti-SLAPP discovery stay was still in effect.
On March 16, 2006, Berg filed its second amended complaint, again pleading a single cause of action against petitioners for breach of fiduciary duty.
On April 11, 2006, Berg filed a motion to compel petitioners’ further responses to its demand for production, to compel Williams’s deposition, and for discovery sanctions. The hearing was set for May 12, 2006.
On April 20, 2006, petitioners applied ex parte for an order extending time to respond by demurrer or motion to the second amended complaint and setting a briefing and hearing schedule for those proceedings. Berg opposed the application but expressly requested that if the court were to grant additional time for the petitioners to respond to the amended pleading and petitioners were to file another anti-SLAPP motion, that the court also allow Berg’s then-pending discovery motion to “proceed notwithstanding the dis
covery stay [that would be] imposed by the anti-SLAPP statute.” The trial court (Hon. John F. Herlihy) issued an order directing petitioners to file their response to the second amended complaint and any intended anti-SLAPP motion on or before May 1, 2006, with the hearing to take place
In compliance with the court’s order, on May 1, 2006, petitioners filed their demurrer and second anti-SLAPP motion. But they filed no opposition to Berg’s discovery motion to compel, which was due that same day under section 1005. Petitioners claimed they were relieved from filing an opposition due to the stay on discovery proceedings, which was reimposed under the anti-SLAPP statute upon the filing of their second special motion to strike. (
On May 10, 2006, two days before the hearing on the discovery motion, petitioners’ counsel wrote a letter to the discovery judge (Hon. Socrates P. Manoukian) informing him of the filing of the anti-SLAPP motion and of their position that that filing had resulted in a stay on all discovery proceedings, including the pending discovery motion. Berg’s counsel responded the next day by sending his own letter to Judge Manoukian, which stated counsel’s belief that the hearing on the motion to compel should proceed. Later that day, petitioners’ counsel wrote another letter to the court responding to Berg’s counsel’s letter and reasserting that the discovery stay prevented the discovery motion from going forward and relieved them from filing opposition thereto.
Meanwhile, on May 5, 2006, the trial court (Hon. C. Randall Schneider) heard petitioners’ motion for an award of fees incurred as a result of their first anti-SLAPP motion. Petitioners had sought fees in the amount of $13,226 but at the hearing, the court stated its intention to award only $5,000. The court’s rationale in reducing the amount of fees to be awarded was that petitioners had not met and conferred with Berg before filing the first anti-SLAPP motion, which had resulted in Berg’s voluntary dismissal of the targeted fraud causes of action to which the motion had been directed. 3
On May 12, 2006, the trial court heard Berg’s motion to compel discovery and for sanctions. At the hearing, the judge (Hon. Socrates P. Manoukian) expressed irritation that petitioners had not informed him
Counsel was unable to do so, but did note that the anti-SLAPP statute itself states that “all discovery proceedings” are stayed upon the filing of the motion to strike. The court acknowledged that Berg had not filed a motion to allow discovery under
On June 22, 2006, the trial court (Hon. Neal A. Cabrinha) heard petitioners’ second anti-SLAPP motion and demurrers. At the hearing, the judge orally stated that the anti-SLAPP motion “will be denied.” He also said that the “[cjomplaint probably needs some further work” but he did not indicate just how he intended to rule on the demurrers. The court then asked counsel for Berg to prepare an order denying the anti-SLAPP motion and took the demurrers under submission. But no written order on the anti-SLAPP motion was immediately forthcoming.
On August 4, 2006, the trial court (Hon. Socrates P. Manoukian) issued a written order, served by the clerk that day, granting Berg’s motion to compel further responses to the demand for production of documents, compelling petitioner Williams to appear for deposition, and imposing monetary sanctions in the amount of $5,000 against petitioners. The order noted that Berg’s motion was “not opposed” and, further, that petitioners’ “[objections [to discovery] are deemed waived.” Petitioners were ordered to pay the sanctions and to comply with the order within 20 calendar days, by August 24, 2006.
On August 16, 2006, after Berg refused to stipulate to a three-week stay of enforcement of the August 4, 2006 discovery order, petitioners applied to the court (Hon. Socrates P. Manoukian) ex parte for a stay of enforcement to allow them to request writ relief from this court. That application was denied.
On August 23, petitioners filed their “petition for alternative or peremptory writ of mandate and/or prohibition” in this court. They also sought an immediate stay of the discovery order, which this court granted in order to permit further consideration of the issues raised by the petition. This court also requested preliminary opposition from Berg as the real party in interest.
On August 30, 2006, the superior court clerk served the trial court’s (Hon. Neal A. Cabrinha) written orders on petitioners’ second anti-SLAPP motion and demurrers. The court sustained the demurrers with leave to amend and “in light of’ that ruling, denied the anti-SLAPP motion as “moot.”
We issued an order to show cause why the relief prayed for in the petition should
DISCUSSION
I. Petitioners’ Contentions and Standard of Review
The issue presented by the petition for writ is whether the anti-SLAPP statute’s stay on “[a]ll discovery proceedings” applies generally to discovery motions, and in particular, those motions already pending at the time the anti-SLAPP motion is filed. (
The standard of review generally applicable to review of discovery orders is abuse of discretion, as management of discovery lies within the sound discretion of the trial court.
(John B.
v.
Superior Court
(2006)
Notwithstanding these principles, where the propriety of a discovery order turns on statutory interpretation, an appellate court may determine the issue de novo as a question of law.
(People ex rel. Lockyer v. Superior Court
(2004)
In construing a statute, a court’s “task is to ascertain the intent of the Legislature so as to effectuate the purpose of the enactment. [Citation.] We look first to the words of a statute, which are the most reliable indications of the Legislature’s intent. [Citation.] We construe the words of a statute in context, and harmonize the various parts of an enactment by considering the provision at issue in the context of the statutory framework as a whole. [Citations.]”
(Cummins, Inc. v. Superior Court
(2005)
II. Analysis
The anti-SLAPP statute sets forth a procedure for obtaining early dismissal
“The anti-SLAPP legislation in
The statute’s truncated timeframe for anti-SLAPP filings and hearings (
The language of
But the precise question here concerns whether the term “discovery proceedings” as used in the anti-SLAPP statute includes motions to compel
farther responses to discovery and for discovery sanctions such that these matters are also stayed under
But as petitioners point out, these sections of the Civil Discovery Act that make a distinction between discovery methods—there referred to as “discovery proceedings”—and discovery motions generally concern pretrial scheduling or timing matters. In that context, it is necessary to distinguish the two processes so that motions to resolve discovery disputes may naturally be heard after the time to respond to disputed discovery has passed.
Despite the more restricted meaning of the term “discovery proceedings” in the Civil Discovery Act, both the aims of the anti-SLAPP statute and the legislative mandate that it is to be construed broadly require that the term “discovery proceedings” in this context include discovery motions so that these matters are also stayed upon the filing of a special motion to strike. If this were not so, a calculating plaintiff who anticipates a defendant filing an anti-SLAPP motion could successfully thwart the statute’s purposes by propounding voluminous written discovery at the earliest possible time (generally, 10 days after service of summons or appearance by defendant (§§ 2030.020, subd. (b), 2031.020, subd. (b), 2033.020, subd. (b)) and then immediately moving to compel responses upon the targeted defendant’s objections to discovery, all before the 60-days-ffom-service-of-summons deadline for the filing of the anti-SLAPP motion under
Normally, a term having a specific meaning in one area of the law should be construed similarly elsewhere. But the rules of statutory construction permit different interpretations of the same or similar terms when the terms appear in different statutory schemes, each with a different legislative policy. Where such policies reveal a distinct legislative intent behind each respective statutory scheme,
The legislative intent behind the anti-SLAPP statute and its specific purposes are distinct from those general legislative policies and purposes evident in the Civil Discovery Act, which regulates pretrial factfinding and production of evidence. 7 Therefore, that the term “discovery proceedings” as used in the Act does not generally extend to discovery motions does not compel the same narrow construction of this term in the anti-SLAPP statute, especially when both constructions of the term are reasonable, depending on context, and such construction could very well thwart the legislative purposes of that statute. Thus, we conclude that the stay on all “discovery proceedings” as provided in the anti-SLAPP statute applies to discovery motions, including those already pending at the time the special motion to strike is filed, even though this term has a more narrow meaning in the Civil Discovery Act.
Accordingly, the trial court erred not only in proceeding with the hearing on Berg’s discovery motion while petitioners’ second anti-SLAPP motion was pending, but also in issuing its order compelling their compliance with discovery requests, imposing monetary sanctions against them, and finding a waiver of their objections. Moreover, if the determination of a waiver of objections was based on an implied finding that petitioners’ March 1, 2006 written objections to Berg’s demand for documents were untimely, such a finding would be erroneous. Although on February 24, 2006, the trial court had issued its written order stating that it would have granted petitioners’ first anti-SLAPP motion had Berg not dismissed the targeted fraud causes of action, Berg did not serve a notice of entry of that order until March 2, 2006. This rendered the objections served by petitioners the preceding day timely because the stay on discovery proceedings imposed by the filing of the first anti-SLAPP motion was not lifted until Berg served such notice of entry of the court’s order. Under sections 664.5 and 1019.5, and rule 309 of the California Rules of Court, “notice of entry of the judgment” in this context can only mean when a party serves written notice of entry of the order ruling on the anti-SLAPP motion or when the clerk of the court serves a copy of the ruling on the parties by order of the court. Neither of these events had happened here by the time petitioners served their objections to the document demand on March 1, 2006, in relation to their first anti-SLAPP motion. 8
It is now settled that without violating separation of powers principles, the Legislature may enact laws that govern the procedures and evidentiary rules applicable in judicial proceedings provided that the rules “[do] not defeat or materially impair” the core functions of the judiciary, which derive from article HI, section 3 of the California Constitution.
(Le Francois v. Goel
(2005)
Due to the imposition of the mandatory stay on “all discovery proceedings” as provided by
DISPOSITION
Let a peremptory writ of mandate issue directing respondent superior court to vacate its August 4, 2006 discovery order, to schedule a new hearing on Berg’s motion to compel and for discovery sanctions with a briefing schedule that allows petitioners a reasonable time to file opposition to the motion on its merits, and to consider the
Premo, Acting, P. J., and Elia, J., concurred.
Notes
Further unspecified statutory references are to the Code of Civil Procedure.
“SLAPP” is the now commonly used acronym for a “strategic lawsuit against public participation.” SLAPP suits are the target of the special motion to strike as provided at
The implication of the court’s ruling was that the failure to have met and conferred before filing the motion was a breach of professional courtesy. The record further suggests that the trial court’s perception—right or wrong—of sharp practice and a lack of civility and professional courtesy among counsel in this case affected more than that single ruling below. Counsel would be wise to remember that the snide personal attacks, hyperbole, and rhetoric that appear in this record do not aid in, and indeed distract from, the proper resolution of the issues. Effective and vigorous advocacy does not require this sort of behavior, which counsel for Berg in particular continues in briefing before this court. Rather than deal with the legal issue presented through effective analysis and persuasive reasoning, counsel instead mostly invokes invective, repeatedly accusing petitioners and their counsel of “game playing,” “stonewalling,” and “abuse of both the discovery process and the anti-SLAPP statute.” These allegations of nefarious motive are based on no more than innuendo and speculation and they are even more misplaced in light of the result here.
See footnote 3, ante.
“In evaluating an anti-SLAPP motion, the trial court first determines whether the defendant has made a threshold showing that the challenged cause of action arises from protected activity.
(Equilon[, supra,
As petitioners point out, the term “discovery proceedings” has frequently been used in cases to refer to both discovery efforts engaged in by parties litigant and discovery motion practice before a court. (See, e.g.,
John B.
v.
Superior Court, supra,
“The purposes of California’s discovery statutes are, ‘among other things, to assist the parties and the trier of fact in ascertaining the truth; to encourage settlement by educating the parties as to the strengths of their claims and defenses; to expedite and facilitate preparation
and trial; to prevent delay; and to safeguard against surprise.’ [Citations.]”
(Plunkett v. Spaulding
(1997)
The same reasoning applies to the stay on discovery proceedings imposed by the filing of petitioners’ second anti-SLAPP motion. As noted, the trial court’s orders denying the second motion as “moot” in light of its concurrent rulings on demurrer were filed below and served by the clerk on August 30, 2006. The record does not contain a written notice of entry of the orders served by any party, which would have had the effect of terminating the second stay. Thus, it appears the stay was still in effect when the trial court issued the discovery order on August 4, 2006, and on the date by which petitioners were to have complied with it 20 days later, notwithstanding Judge Cabrinha’s oral comment from the bench on June 22, 2006, that the second anti-SLAPP motion “will be denied.”