CHEONG YU YEE, Plaintiff and Appellant, v. DON CHEUNG et al., Defendants and Respondents.
No. D060989
Fourth Dist., Div. One.
Oct. 4, 2013.
220 Cal. App. 4th 184
COUNSEL
Law Offices of Amelia A. McDermott and Amelia A. McDermott for Plaintiff and Appellant.
J. Kenneth Jensen, in pro. per., for Defendant and Respondent J. Kenneth Jensen.
Pettit Kohn Ingrassia & Lutz, Douglas A. Pettit and Valerie Garcia Hong for Defendant and Respondent Sally Tsui Wong-Avery.
Phillips Haskett & Ingwalson and Frederick C. Phillips for Defendants and Respondents Yuk Wai Ho, Lin Wah Music Center of San Diego, Zhao Hong
OPINION
AARON, J.—
I.
INTRODUCTION
This appeal arises out of a malicious prosecution action filed by plaintiff Cheong Yu Yee against defendants J. Kenneth Jensen, Esq.; Sally Tsui Wong-Avery, Esq.; Don Cheung; Lin Wah Music Center of San Diego (Lin Wah); Zhao Hong Hang; Wai Mui Lee; Kai Ai Ng; Tong Yum; Ng Man Kiong; Lan H. Hom; Fung Yuet Xiong; Run You Chen; Kuen Wan Ghu; Xiao Xiong Pan; Pun Wa; Veronica Kwok; and Yuk Wai Ho.1
The malicious prosecution action arises from defendants’ participation in an underlying action against Yee for claims of fraud and conversion in the matter of Lin Wah Music Center v. Yee (Super. Ct. San Diego County, 2009, No. 37-2008-00080938-CU-FR-CTL) (the Lin Wah action). After a trial in the Lin Wah action, a jury found in favor of Yee on both of plaintiffs’ claims.
Almost two years after Yee prevailed in the Lin Wah action, he filed a malicious prosecution action against Lin Wah, multiple individual members of Lin Wah, and two attorneys who Yee alleged had represented the plaintiffs in the Lin Wah action—Jensen and Wong-Avery. In response to the malicious prosecution action, Lin Wah, the individual defendants, and attorney defendant Wong-Avery filed motions to strike under the anti-SLAPP (strategic lawsuit against public participation) law. Attorney defendant Jensen filed a demurrer to the complaint on the ground that the action was time-barred as to him, pursuant to the statute of limitations set forth in
We reject Yee‘s contentions on appeal and affirm the trial court‘s rulings.
II.
FACTUAL AND PROCEDURAL BACKGROUND
A. Factual background
Lin Wah is an organization whose members promote and participate in Chinese opera. Sometime in 2004, Lin Wah members met with Yee about the possibility of forming a nonprofit musical organization to stage and perform Chinese opera events. In 2005, Yee and Lin Wah formed the nonprofit organization “Asian Culture & Senior Center, Inc.” (ACSC). A representative of Lin Wah withdrew funds from its bank account and deposited them into an account created for ACSC. Yee became president of ACSC, and Cheung, one of the members of Lin Wah, became the treasurer of ACSC.
In 2006, a dispute arose concerning the management of the ACSC bank account, to which Cheung had access. At some point, Yee removed Cheung as a signatory of the ACSC bank account. Members of Lin Wah were unhappy with Yee‘s decision and accused Yee of withholding the funds. The members of Lin Wah voted to disassociate from Yee and ACSC.
Not long after Lin Wah and Yee parted ways, members of Lin Wah approached Wong-Avery for assistance in recovering from Yee money that they believed rightfully belonged to Lin Wah. Wong-Avery learned that Yee had hired an attorney to represent his interests with respect to the monetary dispute. Wong-Avery referred Lin Wah members to Attorney Jensen to assist them in the matter. In November 2007, Jensen sent a letter to Yee on behalf of Lin Wah requesting that he return the disputed funds.
A trial was held in April 2009. Wong-Avery associated in as cocounsel with Jensen on the first day of trial. Over two days, Lin Wah presented its case. At the close of Lin Wah‘s case, Yee moved for a nonsuit. The trial court ruled, “Well, okay, at this point, the court is supposed to give plaintiff the benefit of the doubt on the evidence. And viewing the evidence in the light most favorable, I think there‘s enough there to let it go past this point.”4
On April 29, 2009, the jury returned a verdict in favor of Yee on both causes of action.
B. Procedural background
Yee filed a complaint for malicious prosecution, intentional infliction of emotional distress, and negligent infliction of emotional distress against all of the defendants on April 28, 2011.
Attorney defendant Jensen filed a demurrer to the complaint on July 6, 2011, arguing that the action against him was time-barred under the one-year statute of limitations set forth in
On July 8, 2011, attorney defendant Wong-Avery filed a special motion to strike the entire complaint as to her, pursuant to
Later that month, the nonattorney defendants filed their own special motion to strike the complaint under
Yee filed a timely notice of appeal from the trial court‘s order.5
III.
DISCUSSION
A. Defendant Jensen‘s demurrer to the complaint
1. Legal standards
We review de novo an order sustaining a demurrer to determine whether the complaint alleges facts sufficient to state a cause of action. (CPF Agency Corp. v. Sevel‘s 24 Hour Towing Service (2005) 132 Cal.App.4th 1034, 1042.) We exercise our independent judgment as to whether the complaint states a cause of action. (Palestini v. General Dynamics Corp. (2002) 99 Cal.App.4th 80, 86.) “‘A judgment of dismissal after a demurrer has been sustained without leave to amend will be affirmed if proper on any grounds stated in the demurrer, whether or not the court acted on that ground.’ [Citation.]” (Gomes v. Countrywide Home Loans, Inc. (2011) 192 Cal.App.4th 1149, 1153.)
2. Analysis
Yee‘s complaint alleging malicious prosecution against Jensen and the other defendants was filed on April 28, 2011, which was one year 364 days after the jury returned a verdict in his favor in the Lin Wah action.6 A “cause of action for malicious prosecution first accrues at the conclusion of the litigation in favor of the party allegedly prosecuted maliciously. [Citation.]” (Babb v. Superior Court (1971) 3 Cal.3d 841, 846.)
The issue in dispute is whether the one-year statute of limitations set forth in
One other appellate court has concluded that “the one-year limitations period under
As with all questions of statutory interpretation, we begin with the words of the statute. “‘[W]e must look first to the words of the statute “because they generally provide the most reliable indicator of legislative intent.” [Citation.] If the statutory language is clear and unambiguous our inquiry ends. “If there is no ambiguity in the language, we presume the Legislature meant what it said and the plain meaning of the statute governs.” [Citations.] In reading statutes, we are mindful that words are to be given their plain and commonsense meaning. [Citation.]’ [Citation.] Thus, we ‘avoid a construction that would produce absurd consequences, which we presume the Legislature did not intend. [Citations.]’ [Citation.]” (Vafi, supra, 193 Cal.App.4th at p. 880.)
Other principles of statutory interpretation are also helpful: “‘[T]he intention of the Legislature . . . is to be pursued, if possible; and when a general and [a] particular provision are inconsistent, the latter is paramount to the former. So a particular intent will control a general one that is inconsistent with it.’ ” (Vafi, supra, 193 Cal.App.4th at p. 880, quoting
When determining which statute of limitations applies to a particular action, a court considers what the principal purpose or “gravamen” of the action is, rather than the form of action or the relief demanded. (Vafi, supra, 193 Cal.App.4th at p. 880.)
The plain language of
Yee‘s complaint alleges that Jensen acted wrongfully in “pursu[ing] a meritless lawsuit against [Yee] for fraud and conversion” and in “fil[ing] and continu[ing] litigation of the Underlying Action on behalf of [the nonattorney defendants] despite the fact no reasonable attorney would have done so.” Thus, the gravamen of Yee‘s complaint against Jensen is the allegation that Jensen engaged in wrongful acts in his performance of professional legal services in his representation of the nonattorney defendants. This claim clearly falls within the plain language of the statute. (See Vafi, supra, 193 Cal.App.4th at p. 880.) Yee‘s claim against Jensen also falls within the plain language of the alternative statute of limitations set forth in
As noted, where more than one statute might apply to a particular claim, “‘a specific limitations provision prevails over a more general provision.’ [Citation.]” (E-Fab, Inc. v. Accountants, Inc. Services (2007) 153 Cal.App.4th 1308, 1316-1317.) Given that
We are not persuaded by Yee‘s argument that the language of
Yee‘s contention that the phrase “a wrongful act or omission” in
Unless giving the words of a statute their plain and commonsense meaning would produce “‘absurd consequences,‘” we adhere to the plain meaning. (Vafi, supra, 193 Cal.App.4th at p. 880.) Although in enacting
Second, interpreting
Although we recognize that the effect of applying the one-year statute of limitations in
Because it is undisputed that the conduct at issue arose from Jensen‘s performance of his professional services to the plaintiffs in the Lin Wah action, and because the plain meaning of the words of the statute applies to the malicious prosecution claim against Jensen and such application is not absurd, we conclude that the one-year limitations period in
B. Defendant Wong-Avery‘s anti-SLAPP motion10
Yee‘s complaint suffers the same defect with respect to attorney defendant Wong-Avery as it does with respect to attorney defendant Jensen—i.e., it is untimely under
C. The nonattorney defendants’ anti-SLAPP motion
1. Applicable Legal standards
“Whether
Resolution of a special motion to strike “requires the court to engage in a two-step process. First, the court decides whether the defendant has made
For purposes of an anti-SLAPP motion, “[t]he court considers the pleadings and evidence submitted by both sides, but does not weigh credibility or compare the weight of the evidence. Rather, the court‘s responsibility is to accept as true the evidence favorable to the plaintiff . . . .” (HMS Capital, supra, 118 Cal.App.4th at p. 212.) A plaintiff “need only establish that his or her claim has ‘minimal merit’ [citation] to avoid being stricken as a SLAPP. [Citation.]” (Soukup v. Law Offices of Herbert Hafif (2006) 39 Cal.4th 260, 291.)
To establish a claim for malicious prosecution, a plaintiff is required to show that a prior claim initiated by the defendant was (1) pursued to a legal termination favorable to the plaintiff, (2) brought without probable cause, and (3) initiated with malice. (Villa v. Cole (1992) 4 Cal.App.4th 1327, 1335.)
2. Analysis
Yee does not challenge the trial court‘s conclusion that his malicious prosecution claim falls within the purview of the anti-SLAPP statute. (See Jarrow Formulas, Inc. v. LaMarche (2003) 31 Cal.4th 728, 735 (Jarrow) [a malicious prosecution action alleges that the defendant committed a tort by filing a lawsuit, and therefore, courts routinely conclude that malicious prosecution causes of action fall within the purview of the anti-SLAPP statute].) Accordingly, we address whether Yee presented evidence sufficient to “[establish] that there is a probability that [he] will prevail on the claim.” (
Trial in the Lin Wah action resulted in a legal termination favorable to Yee. We therefore consider whether Yee has shown that the nonattorney defendants filed and prosecuted the complaint against him without probable cause.
In determining whether the prior action was legally tenable, i.e., whether the action was supported by probable cause, the court is to construe the allegations of the underlying complaint liberally, in a light most favorable to the malicious prosecution defendant. (Sangster, supra, 68 Cal.App.4th at p. 165.) Further, we keep in mind that “every case litigated to a conclusion has a losing party, but that does not mean the losing position was not arguably meritorious when it was pled. [Citation.] And just as an action that ultimately proves nonmeritorious may have been brought with probable cause, successfully defending a lawsuit does not establish that the suit was brought without probable cause. [Citations.]” (Jarrow, supra, 31 Cal.4th at p. 743.)
We conclude that Yee has failed to show a probability of prevailing on the lack of probable cause element of his malicious prosecution claim.
Certain nonfinal rulings on the merits may serve as the basis for concluding that there was probable cause for prosecuting the underlying case on which a subsequent malicious prosecution action is based. (Wilson v. Parker, Covert & Chidester (2002) 28 Cal.4th 811, 817-818.) This is based on the notion that “[c]laims that have succeeded at a hearing on the merits, even if that result is subsequently reversed by the trial or appellate court, are not so lacking in potential merit that a reasonable attorney or litigant would necessarily have recognized their frivolousness.” (Id. at p. 818.) Thus, for instance, the denial of a nonsuit motion and a subsequent plaintiff‘s jury verdict has been found sufficient to
The trial court in the Lin Wah action denied Yee‘s motion for nonsuit at the close of the plaintiffs’ case, expressly concluding that the plaintiffs had presented sufficient evidence to allow their claims to go to the jury.11 We conclude that in this case, the trial court‘s determination on the motion for nonsuit that there was sufficient evidence to allow the jury to decide the questions presented by the case means that a reasonable attorney could have concluded that the Lin Wah action was not “‘totally and completely without merit.‘” (Sheldon Appel, supra, 47 Cal.3d at p. 885.) Indeed, there was evidence that there was a valid question as to who was the rightful owner of the funds that had been withdrawn from the Lin Wah account and transferred into the account for the newly formed ACSC. The fact that the jury ultimately sided with Yee does not mean that the action against him lacked probable cause.
In an attempt to overcome the fact that the trial court concluded that there was sufficient evidence to allow the jury to resolve the Lin Wah action, Yee contends that the fraud exception to the “interim judgment rule” applies, such that the trial court‘s ruling on the nonsuit motion in the Lin Wah action was procured as a result of “perjured testimony and false evidence.” However, Yee has failed to establish that the court‘s ruling on his nonsuit motion in the underlying action was obtained by fraud, perjury, or any other unfair conduct. Yee points to testimony by Cheung in the Lin Wah action, both at his
A review of Cheung‘s testimony at trial in the Lin Wah action, which included questions pertaining to his deposition testimony, demonstrates that Cheung, who utilized an interpreter during his testimony, was confused with respect to questions about whether he had spoken with members of the media. Specifically, Cheung readily admitted that he “sponsored” a press conference sometime in November 2006 concerning the dispute between Lin Wah and Yee, and that he spoke with the reporters who were present at that press conference. He was then asked whether he remembered his prior deposition testimony, in which he had said that he had “never spoken to any member of the media regarding this matter.” Cheung‘s response to this question is telling, in that he said that he had invited “the press, the reporters” but that he “was not speaking to anyone privately.” At trial, when pressed again with respect to his deposition response to a question about whether he had ever “‘given an interview to any member of the media concerning Mr. Yee,‘” which was that he had not “spoken to anyone,” Cheung agreed with his deposition testimony, and reaffirmed that he “personally did not speak to any person of the media because [he] did not know any of them.” When asked about what seemed to be conflicting testimony about holding a press conference, and why he had not stated during his deposition that he had held the press conference, Cheung said, “Nobody asked me that question at the deposition.”
It is clear from this portion of the transcript that rather than constituting evidence of fraudulent testimony, Cheung misunderstood the questions concerning his having “spoken” to members of the press as referring to instances in which he had spoken privately with members of the press, separate from the press conference that he readily admitted he had “sponsored.” We therefore reject Yee‘s contention that “[b]ut for this sort of testimony, the lower court would have granted Mr. Yee‘s non-suit motion.”
Because the record demonstrates that the defendants in the malicious prosecution case had probable cause to bring the underlying action, Yee cannot establish a probability that he will prevail on his malicious prosecution claim.
IV.
DISPOSITION
We deem the order sustaining Jensen‘s demurrer to the complaint without leave to amend to have incorporated a judgment of dismissal as to Jensen, and we affirm that judgment. We also affirm the trial court‘s order granting the remaining defendants’ special motions to strike. Costs are awarded to respondents.
Benke, Acting P. J., and O‘Rourke, J., concurred.
Notes
However, “when the trial court has sustained a demurrer to all of the complaint‘s causes of action, appellate courts may deem the order to incorporate a judgment of dismissal, since all that is left to make the order appealable is the formality of the entry of a dismissal order or judgment. [Citations.]” (Sisemore v. Master Financial, Inc., supra, 151 Cal.App.4th at p. 1396.) Here, the order sustaining the demurrer to the complaint without leave to amend as to attorney defendant Jensen effectively ended Yee‘s ability to proceed further with his case against Jensen, and the only step left to make the order appealable is the formal entry of a dismissal order or judgment. We therefore deem the order on Jensen‘s demurrer to incorporate a judgment of dismissal and will review the order in this appeal in the interest of judicial economy and the interest of justice. (See ibid.)
