LUNADA BIOMEDICAL, Plaintiff and Appellant, v. LAURA NUNEZ et al., Defendants and Respondents.
Nos. B243205, B246602
Second Dist., Div. Five.
Oct. 9, 2014.
230 Cal. App. 4th 459
The Hicks Law Group and James B. Hicks for Plaintiff and Appellant.
Milstein Adelman, Gillian L. Wade, Mayo L. Makarczyk, Sara D. Avila; and Erich D. Schiefelbine for Defendants and Respondents.
OPINION
MOSK, J.—
INTRODUCTION
Attorneys for a consumer served on a company a notice required for damages under the Consumers Legal Remedies Act,
FACTUAL AND PROCEDURAL BACKGROUND
Laura Nunez (Nunez) retained two law firms, Newport Trial Group (Newport) and Wasserman, Comden, Casselman & Esensten, LPP (Wasserman)3 to represent her in an anticipated consumer class action under the CLRA. Newport served Lunada Biomedical (plaintiff) with a one-page notice and demand, pursuant to
Thereafter, plaintiff‘s counsel sent an e-mail to Wasserman confirming their telephone conversation that occurred a few days previously, stating that he disagreed with Wasserman‘s claims for the reasons set forth in plaintiff‘s earlier reply letter, and stating, “[A]s I mentioned, I almost always consider settlement issues before litigation, so I asked you to propose a settlement offer. . . . There‘s no rush, we can talk whenever you are ready.” Later that afternoon, an attorney from Wasserman sent an e-mail to plaintiff‘s counsel, stating, “Given the upcoming holidays, I have not had a chance to talk to all interested parties, much less put together a ‘settlement offer.’ ” The e-mail also stated that Wasserman needed information regarding the sale of Amberen before it could propose a settlement demand, but that it would provide
A little over a month later, the attorney from Wasserman sent an 11-page letter to plaintiff‘s counsel via e-mail and United States mail thanking him for responding to “our [CLRA Notice] on behalf of our client, . . . Nunez . . . regarding her potential class action claims related to Amberen . . . .” The letter stated, “In accordance with our November 18th telephone conversation and subsequent email communications, this letter will discuss possible ways to resolve the current dispute concerning our client‘s false and misleading advertising claims against [plaintiff]. I will not attempt to further address the merits of [Nunez‘s] claims in this letter. Instead, I will simply outline briefly potential settlement approaches and structures.” It set forth possible “ALTERNATIVE SETTLEMENT STRUCTURES,” and detailed matters subject to injunctive relief consisting of “PROPOSED ADVERTISING AND MARKETING MODIFICATIONS.” The proposed advertising and marketing modifications were matters that, according to Wasserman, plaintiff should “permanently cease” from representing to current and potential purchasers of Amberen, “delete” from all Amberen advertising and labeling, and include in all future Amberen advertising and labeling.
Within two weeks, plaintiff filed a complaint alleging a single cause of action for declaratory relief against defendants. Plaintiff sought a determination regarding “the accuracy and legality” of plaintiff‘s advertising of Amberen. Plaintiff alleged in its complaint that “[t]his action is being filed because Defendants threaten to file a lawsuit claiming that Plaintiff‘s advertising violates California‘s consumer protection statutes, including . . . [the CLRA]. However, Defendants’ threatened suit lacks any basis. . . .” Plaintiff alleged in the complaint that “[t]his dispute was originally raised in a [CLRA Notice] claiming that [plaintiff‘s] advertising for Amberen supposedly violated the CLRA . . . .” Plaintiff also referred to in the complaint various additional communications the parties had regarding settlement, including Wasserman‘s letter. Plaintiff also included in the complaint responses to the matters contained in Wasserman‘s letter.
Nunez and Newport filed an anti-SLAPP motion, in which Wasserman joined. The motions were made on the grounds that plaintiff‘s claim arose from protected activity—“defendants’ CLRA [N]otice regarding plaintiff‘s deceptive advertising claims about its product Amberen, and related settlement communications“—and that plaintiff could not establish a probability of prevailing on its claim.
Plaintiff opposed defendants’ anti-SLAPP motions. In support of that opposition, plaintiff provided substantial evidence in support of its contention
The trial court issued a tentative ruling granting the special motions to strike the complaint, determining that defendants met their burden that plaintiff‘s claim arose from protected activity; plaintiff could not establish a probability of prevailing on its declaratory relief claim because “defendants’ notification letter” was absolutely privileged by the litigation privilege of
Defendants filed motions to recover their attorney fees under
DISCUSSION
A. Anti-SLAPP Motion
1. Legal Principles
(a) Anti-SLAPP Statute and Standard of Review
To satisfy the second prong—the probability of prevailing—the plaintiff must demonstrate that the complaint is legally sufficient and supported by a prima facie showing of facts to support a favorable judgment if the evidence submitted by the plaintiff is accepted. The trial court considers the pleadings and evidentiary submissions of both the plaintiff and the defendant. Although ” ‘the court does not weigh the credibility or comparative probative strength of competing evidence, it should grant the motion if, as a matter of law, the defendant‘s evidence supporting the motion defeats the plaintiff‘s attempt to establish evidentiary support for the claim. [Citation.]’ (Wilson v. Parker, Covert & Chidester (2002) 28 Cal.4th 811, 821 [123 Cal.Rptr.2d 19, 50 P.3d 733], superseded by statute on other grounds as noted in Hutton v. Hafif (2007) 150 Cal.App.4th 527, 547 [59 Cal.Rptr.3d 109].)” (Cole v. Patricia A. Meyer & Associates, APC (2012) 206 Cal.App.4th 1095, 1104–1105 [142 Cal.Rptr.3d 646] (Cole).) The standard for determining the merits of a defendant‘s special motion to strike a complaint is similar to that for determining the merits of a defendant‘s motion for summary judgment. “Both seek to determine whether a prima facie case has been presented by the plaintiff in opposing the motions.” (Bergman v. Drum (2005) 129 Cal.App.4th 11, 18 [28 Cal.Rptr.3d 112]; see Weil & Brown, Cal. Practice Guide: Civil Procedure Before Trial (The Rutter Group 2014) ¶ 7:1008, p. 7(II)-57 (rev. # 1, 2014) [“The ‘probability of prevailing’ is tested by the same standard governing a motion for summary judgment, nonsuit, or directed verdict“].) If a plaintiff sets forth a prima facie case in opposition to such motions, the motions must be denied.
The anti-SLAPP statute is broadly construed. (Briggs v. Eden Council for Hope & Opportunity (1999) 19 Cal.4th 1106, 1121–1122 [81 Cal.Rptr.2d 471, 969 P.2d 564]; Equilon Enterprises v. Consumer Cause, Inc., supra, 29 Cal.4th at p. 60, fn. 3.) “[A]n anti-SLAPP motion may lie against a complaint for declaratory relief [citation] . . . .” (Mission Springs Water Dist. v. Verjil (2013) 218 Cal.App.4th 892, 909 [160 Cal.Rptr.3d 524]; see Gotterba v. Travolta (2014) 228 Cal.App.4th 35, 40 [175 Cal.Rptr.3d 47] [“An anti-SLAPP motion lies against a complaint for declaratory relief, among other types of causes of action.“]; see Burke, Anti-SLAPP Litigation (The Rutter Group 2014) § 2.17, p. 2-12.)
(b) CLRA
The CLRA‘s purposes “are to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure such protection.” (
2. Analysis
(a) Arising from Protected Activity Under the Anti-SLAPP Statute
Plaintiff contends that the trial court erred in granting defendants’ special motions to strike its declaratory relief claim because it did not “arise from” a protected activity, the CLRA Notice and correspondence, but rather from a dispute as to whether plaintiff violated the CLRA. According to plaintiff, the CLRA Notice and correspondence were just evidence of the dispute. We disagree.
The parties do not dispute that the CLRA Notice and Wasserman‘s letter are protected activities and therefore subject to an anti-SLAPP motion. Prelitigation letters demanding that a party cease from doing certain acts or be subject to a lawsuit based on that conduct are in preparation or anticipation of litigation and fall within the protection of
It is true that even when “a party‘s litigation-related activities constitute ‘act[s] in furtherance of a person‘s right of petition or free speech,’ it does not follow that any claims associated with those activities are subject to the anti-SLAPP statute.” (Kolar v. Donahue, McIntosh & Hammerton (2006) 145 Cal.App.4th 1532, 1537 [52 Cal.Rptr.3d 712].) ” ’ [T]he mere fact that an action was filed after protected activity took place does not mean the action arose from that activity for the purposes of the anti-SLAPP statute. [Citation.] Moreover, that a cause of action arguably may have been “triggered” by protected activity does not entail that it is one arising from such. [Citation.]’ ” (Episcopal Church Cases (2009) 45 Cal.4th 467, 477 [87 Cal.Rptr.3d 275, 198 P.3d 66]; see Copenbarger v. Morris Cerullo World Evangelism, supra, 215 Cal.App.4th at p. 1245 [” ’ [t]he pivotal distinction’ is ‘whether an actual or contemplated unlawful detainer action by a landlord (unquestionably a
“In general, whether a cause of action is subject to a motion to strike under the SLAPP statute turns on whether the gravamen of the cause of action targets protected activity. [Citation.] . . . ¶ Where . . . a cause of action is based on both protected activity and unprotected activity, it is subject to
Here, the correspondence clearly arose in connection with the litigation that was contemplated or under serious consideration. Indeed, the CLRA Notice was required under the CLRA before an action for damages could be filed and thus is part of the litigation process. But for the CLRA Notice and demand letters, there would be no dispute. In order to satisfy the first prong, the challenged action must arise from the protected activity. (Equilon Enterprises v. Consumer Cause, Inc., supra, 29 Cal.4th at pp. 66–67.) In construing the anti-SLAPP statute broadly, as we must do (id. at p. 60, fn. 3), we believe that the CLRA Notice and correspondence not only preceded and triggered the declaratory relief action, but they were also the basis of the cause of the action. The declaratory relief action therefore arose out of those communications, which are protected activities.
In CKE Restaurants, Inc. v. Moore (2008) 159 Cal.App.4th 262 [70 Cal.Rptr.3d 921], the plaintiff commenced its declaratory relief action in response to a notice that the defendant had served on it pursuant to Proposition 65. (159 Cal.App.4th at pp. 266–267.) In the defendant‘s Proposition 65 notice, she claimed that the plaintiff served french fries that contained naphthalene, which is known to cause cancer and reproductive toxicity. (159 Cal.App.4th at p. 266, fn. 2.) In its opposition to the defendant‘s anti-SLAPP motion, the plaintiff claimed that “its lawsuit did not arise from the sending of the notices, but from ‘the underlying issues raised in [the defendant‘s] letters—namely the rights and obligations of CKE regarding its French Fries and other Food Products under Proposition 65 . . . .’ ” (Id. at p. 266.)
The court in CKE Restaurants, Inc. v. Moore, supra, 159 Cal.App.4th 262, rejected the plaintiff‘s contention that the lawsuit did not arise from the sending of the Proposition 65 notice. (159 Cal.App.4th at pp. 267, 271.) In upholding the trial court‘s order granting the defendant‘s anti-SLAPP motion, the court stated, “In its complaint, [the plaintiff] directly challenged the merits of the 60-day notice by referring to and quoting from the 60-day notice. [The plaintiff] requested a judicial determination that its food products
Although here the record does not provide that plaintiff threatened to sue defendants unless they withdrew the CLRA Notice, plaintiff alleged in its complaint, “This action is being filed because Defendants threaten to file a lawsuit claiming that Plaintiff‘s advertising violates California‘s consumer protection statutes, including . . . [the CLRA].” Plaintiff referred to the CLRA Notice in the complaint, alleging, “This dispute was originally raised in a [CLRA Notice] claiming that [plaintiff‘s] advertising for Amberen supposedly violated the CLRA . . . .” In its complaint, plaintiff also referred to various additional communications the parties had regarding settlement, including Wasserman‘s letter, and in the complaint plaintiff responded specifically to numerous matters contained in Wasserman‘s letter. Therefore, the declaratory relief action arose from defendants’ protected activities, without which there would have been no dispute.
In Country Side Villas Homeowners Assn. v. Ivie (2011) 193 Cal.App.4th 1110 [123 Cal.Rptr.3d 251], a member of a homeowners association criticized the association‘s management for its handling of maintenance issues, suggested that its board be recalled, and requested copies of its income and expense reports. (193 Cal.App.4th at pp. 1112–1113.) The homeowners association filed an action for declaratory relief against the association member, seeking among other things, a determination that its allocation of funds was consistent with the association‘s governing documents. (Id. at pp. 1113–1114.)
In affirming the trial court‘s grant of the anti-SLAPP motion of the association member, the court held that the declaratory relief action arose from a protected activity, stating, “[T]he action in this case was filed after [the homeowners association‘s] counsel threatened to sue [the association member] if she continued to request the financial documents and refuse to sign the confidentiality agreement. [The association member] did refuse to sign the agreement, and continued to speak out against [the homeowners association]. In response, [the homeowners association] filed suit against her seeking declaratory relief and attorney fees. [¶] It is clear from the evidence that the action in this case arose from [the association member‘s] exercise of her right of free speech in criticizing and speaking out against the action of [the homeowners association‘s] board.” (Country Side Villas Homeowners Assn. v. Ivie, supra, 193 Cal.App.4th at p. 1118.)
Plaintiff relies on City of Cotati v. Cashman (2002) 29 Cal.4th 69 [124 Cal.Rptr.2d 519, 52 P.3d 695] in contending that its declaratory relief action did not arise from defendants’ protected activities, but that case is distinguishable. There, owners of mobilehome parks brought a declaratory relief action against the city in federal court seeking a judicial determination that the city‘s rent control ordinance constituted an unconstitutional taking. (29 Cal.4th at pp. 71, 72.) In response, the city sued the park owners in state court, requesting a declaration the rent control ordinance was constitutional, valid, and enforceable. (Id. at p. 72.) The city “concede[d] that its purpose in filing the state court action was to gain a more favorable forum in which to litigate the constitutionality of its mobilehome park rent stabilization ordinance,” and that “in filing the state court action it intended subsequently to seek to persuade the federal court to abstain from hearing [the mobilehome park owners‘] suit.” (Id. at p. 73.)
The Supreme Court rejected the argument that the “filing of [the] state court action arose from [the mobilehome park owners‘] filing of their earlier federal action and, therefore, fell within the ambit of the anti-SLAPP statute.” (City of Cotati v. Cashman, supra, 29 Cal.4th at pp. 72–73.) The Supreme Court explained that although “[i]t is indisputably true . . . [the city‘s] action was filed shortly after [the mobilehome park owners] filed their claim in federal court,” “the mere fact an action was filed after protected activity took place does not mean it arose from that activity.” (Id. at pp. 76–77.) Instead, because the “fundamental basis” for the city‘s request for relief was the “underlying controversy respecting [the rental control] ordinance,” the city‘s lawsuit “therefore was not one arising from [the mobilehome park owners‘] federal suit” and “was not subject to a special motion to strike.” (Id. at p. 80.)
Although plaintiff‘s declaratory relief action here filed after defendant‘s protected activities does not necessarily establish that the lawsuit arose out of the protected activities, that is not the only factor. As noted above, the complaint refers extensively to the protected activities. And, unlike in City of Cotati v. Cashman, supra, 29 Cal.4th 69, in which the protected activity amounted only to a prior lawsuit, the protected activities here included a CLRA Notice, without which there would be no controversy. (CKE Restaurants, Inc. v. Moore, supra, 159 Cal.App.4th at p. 271.) Unlike the
In Gotterba v. Travolta, supra, 228 Cal.App.4th 35, the court held, as plaintiff argues here, that a declaratory relief complaint did not arise out of the defendants’ protected activities, but the protected activities were merely evidence of the parties’ dispute. In that case, the defendants’ counsel sent to the plaintiff a letter demanding that he stop making statements that were allegedly in breach of a confidentiality agreement. The letter stated that the statements subjected the plaintiff ” ‘to enormous liability and entitle[d] my client to seek tens of millions of dollars in compensatory and punitive damages,’ ” and that the plaintiff was to ” ‘proceed at [his] peril.’ ” (228 Cal.App.4th at p. 38.) The plaintiff filed an action for declaratory relief, seeking a declaration that the confidentially agreement was unenforceable. The plaintiff alleged that “a judicial declaration is necessary so that he may determine his rights and duties under the agreement and because [the defendants] ‘ha[d] repeatedly threatened legal action’ against him ‘based upon alleged violations and prospective violations of the purported “confidentiality agreement.” ’ ” (Id. at p. 39.) The defendants filed an anti-SLAPP motion to strike the declaratory relief action, asserting that the plaintiff ” ‘filed this action to prevent [the defendants] from exercising [their] right to send [prelitigation demand] letters and/or suing to enforce the terms of [a prior agreement].’ ” (Id. at pp. 39–40.)
In affirming the trial court‘s order denying the motion, the court stated, “Contrary to [the defendants‘] position and arguments, [the plaintiff‘s] complaint is not based upon [the defendants‘] sabre-rattling demand letters. The complaint seeks declaratory relief regarding the validity of the asserted termination agreements and not the propriety of [the defendants‘] demand letters. [¶] . . . [¶] . . . The demand letters do not form the ‘actual controversy upon which to base the claim for declaratory relief,’ but are merely evidence that a controversy between the parties exists. [Citation.] That ‘protected activity may lurk in the background—and may explain why the rift between the parties arose in the first place—does not transform a [contract] dispute into a SLAPP suit.’ [Citation.] [¶] . . . The lawsuit also does not seek to curtail [the defendants‘] right to send demand letters.” (Id. at pp. 41–42.)
Here, the protected activities include defendants sending of the CLRA Notice. It is not merely evidence of the dispute. The typical prelitigation demand letters involving liability are not prerequisites to filing lawsuits seeking damages. By contrast, the CLRA Notice here was required to be sent by the consumer before the consumer could file a lawsuit for damages under the CLRA.
In Copenbarger v. Morris Cerullo World Evangelism, supra, 215 Cal.App.4th 1237, a sublessee of a real property lease filed a lawsuit for, inter alia, declaratory relief against the sublessor after the sublessor served on the sublessee a 30-day notice to cure certain maintenance and other related defaults under the related lease agreements, and a three-day notice required for an unlawful detainer action. (215 Cal.App.4th at pp. 1241–1242, 1245.) The sublessee alleged that a controversy existed among the parties ” ’ “concerning their respective rights and duties arising under” ’ ” the lease agreements and a quitclaim deed, that it had no duty to repair the improvements to the property, that the 30-day notice and the three-day notice were premature and did not comply with the lease agreements, and that it was the owner of the improvements to the property. (Id. at p. 1242.) In reversing the trial court‘s order granting the sublessor‘s anti-SLAPP motion, the court held that, “while the three-day notice might have triggered the [declaratory relief] complaint, the evidence in the record demonstrates the complaint was based on an underlying dispute over [sublessee‘s] repair and maintenance obligations under the sublease and other unprotected activities.” (Id. at p. 1240.) In reaching its conclusion, the court emphasized that, ” ’ “[T]he mere fact that an action was filed after protected activity took place does not mean the action arose from that activity for the purposes of the anti-SLAPP statute.” ’ [Citation.]” (Id. at p. 1245.) The court concluded that the 30-day notice and the sublessee‘s letter in response constituted evidence that there was a dispute between the parties. (Id. at p. 1245.)
Copenbarger v. Morris Cerullo World Evangelism, supra, 215 Cal.App.4th 1237 is distinguishable. In that case, presumably the dispute between the parties arose before the 30-day notice. Here, the CLRA Notice created the dispute between the parties. Also, unlike in that case, plaintiff here specifically alleged in the declaratory relief action that it was “being filed because Defendants threaten[ed] to file a lawsuit claiming that Plaintiff‘s advertising violates California‘s consumer protection statutes, including . . . [the CLRA].” And, as noted above, the complaint extensively refers to the protected activities—the CLRA Notice and related correspondence. Thus, the declaratory relief action arose from the protected activities.6
As to the law firm defendants, the conclusion that the declaratory relief action arose from defendants’ protected activities is even more compelling than it is for Nunez. An attorney has standing to bring a special motion to strike a cause of action arising from petitioning activity undertaken on behalf of the attorney‘s client. (Rusheen v. Cohen (2006) 37 Cal.4th 1048, 1056 [39 Cal.Rptr.3d 516, 128 P.3d 713]; Neville v. Chudacoff, supra, 160 Cal.App.4th at p. 1262, fn. 6.) The declaratory relief complaint here alleged that a dispute existed because defendants wrongfully asserted that plaintiff‘s advertising was in violation of the CLRA. Because the law firm defendants are not consumers under the CLRA, they are unable to sue under the CLRA. There is, therefore, no actual controversy between them and plaintiff concerning any alleged violations of the CLRA. Any argument by plaintiff that the CLRA Notice and Wasserman‘s letter would be evidence that a controversy exists between it and the law firm defendants is unavailing.
(b) Probability of Plaintiff Prevailing on the Declaratory Relief Claim
Plaintiff contends that it demonstrated a probability of prevailing on its declaratory relief claim. We disagree.
“To demonstrate a probability of prevailing on the merits, the plaintiff must show that the complaint is legally sufficient and must present a prima facie showing of facts that, if believed by the trier of fact, would support a judgment in the plaintiff‘s favor. [Citations.] The plaintiff‘s showing of facts must consist of evidence that would be admissible at trial. [Citation.]” (Hall v. Time Warner, Inc. (2007) 153 Cal.App.4th 1337, 1346 [63 Cal.Rptr.3d 798]; see College Hospital, Inc. v. Superior Court (1994) 8 Cal.4th 704, 719–720, fn. 5 [34 Cal.Rptr.2d 898, 882 P.2d 894]; 1-800 Contacts, Inc. v. Steinberg (2003) 107 Cal.App.4th 568, 585 [132 Cal.Rptr.2d 789].)
As noted, ” ‘[A]n anti-SLAPP motion may lie against a complaint for declaratory relief [citation] . . . .’ [Citation.] Moreover, ‘the mere existence of a controversy is insufficient to overcome an anti-SLAPP motion against a claim for declaratory relief. [¶] To defeat an anti-SLAPP motion, the plaintiff”
Defendants contend, and the trial court concluded, that the litigation privilege precludes plaintiff‘s claim for declaratory relief. That privilege does not.
The litigation privilege is set forth in
We can, however, decide a matter on grounds different than that invoked by the trial court. “A reviewing court will uphold a judgment if it is correct for any reason ‘regardless of the correctness of [its] grounds . . . .’ [Citation.] ‘It is judicial action and not judicial reasoning which is the subject of review. . . .’ [Citation.]” (People ex rel. Gallo v. Acuna (1997) 14 Cal.4th 1090, 1119, fn. 4 [60 Cal.Rptr.2d 277, 929 P.2d 596].) Plaintiff cannot demonstrate a probability of prevailing on its declaratory relief claim because it may not sue for declaratory relief regarding a claim for damages under the CLRA.
(1) Cases
Defendants rely on Filarsky, supra, 28 Cal.4th 419, in which a city, after refusing to disclose to a requesting citizen certain documents under the
Plaintiff cites Baxter Healthcare Corp. v. Denton (2004) 120 Cal.App.4th 333 [15 Cal.Rptr.3d 430] (Baxter), which concerned the
In affirming the judgment, the court in Baxter, supra, 120 Cal.App.4th at page 359 held that the “OEHHA has failed to establish that Proposition 65 does not allow a business to bring a declaratory relief action under
The court in Baxter, supra, 120 Cal.App.4th at page 359 also held that there was an actual controversy between the OEHHA and the plaintiff and, therefore, the trial court did not abuse its discretion in granting declaratory
Plaintiff also relies on American Meat Institute v. Leeman (2009) 180 Cal.App.4th 728 [102 Cal.Rptr.3d 759] (American Meat), in which the defendant sent required notices under Proposition 65 to, inter alia, eight different meat processors and retailers. (180 Cal.App.4th at pp. 738-739.) The notices stated that the meat processors and retailers were selling either ground beef or liver products that contained chemicals identified by the state as being carcinogens and reproductive toxins, without supplying the warnings required by Proposition 65. (Id. at pp. 738-739.) The eight alleged violators were represented by trade associations. (Id. at p. 738.) The trade associations filed a declaratory relief action against the defendant seeking declaratory relief on behalf of all of the trade associations’ members that ” ‘as applied to meat and meat products,’ ” the warning requirement of Proposition 65 was preempted by the
The trial court overruled the defendant‘s demurrer on the ground that ” ‘sufficient facts [had] been pled to establish an actual controversy.’ ” (American Meat, supra, 180 Cal.App.4th at pp. 735, 740.) Subsequently, the trial court granted summary judgment in favor of the trade associations, concluding that under the circumstances, the
In affirming the trial court‘s order overruling defendant‘s demurrer, the court in American Meat, supra, 180 Cal.App.4th at page 742 stated that “the Notices gave rise to an actual controversy between [the defendant] and the Trade Associations’ members.” (Fn. omitted.) The court stated that because Proposition 65 provided daily penalties, “it was clearly in the interest of the Trade Associations to take action as soon as possible to determine what, if any, obligations were imposed on their members by Proposition 65.” (180 Cal.App.4th at p. 742.)
(2) Analysis of Cases
There are various aspects of Filarsky, supra, 28 Cal.4th 419, Baxter, supra, 120 Cal.App.4th 333, and American Meat, supra, 180 Cal.App.4th 728, that both support and undermine the conclusion that a declaratory relief action may not be maintained by a potential defendant in a CLRA damages action to establish that there was no violation of the CLRA. For example, Filarsky, supra, 28 Cal.4th 419, in which the Supreme Court directed the Court of Appeal to issue a writ of mandate compelling the trial court to enter an order sustaining the citizen‘s demurrer to the declaratory relief complaint, concerned the California Public Records Act. The CLRA, the statutory scheme involved here, provides for an award of attorney fees and costs if the complaining party prevails (
American Meat, supra, 180 Cal.App.4th 728, and Baxter, supra, 120 Cal.App.4th 333, both concerned Proposition 65. In American Meat, the court
As in Proposition 65, in which the statutory scheme provides for daily penalties that can be imposed on a person who violates Proposition 65, so too would a party expose itself to greater or additional damages claims for violating the CLRA the longer the matter is unresolved. Similar to the plaintiff in Baxter, supra, 120 Cal.App.4th 333, plaintiff here was subject to a difficult dilemma; absent the filing of a declaratory relief action, plaintiff either had to revise its advertising despite believing that it was supported by scientific evidence, or wait to be sued by defendants or other consumers. On the other hand, there is a mandatory attorney fees provision in the CLRA (
The court in Filarsky, supra, 28 Cal.4th 419 emphasized that circumventing a person‘s mandatory right under a statute to recover attorney fees if he or she prevails in an action under that statutory scheme is an important consideration in determining if a declaratory relief action undermines the statute. (Id. at p. 429.) Plaintiff‘s declaratory relief action here eliminates an important incentive afforded by the CLRA, mandatory attorney fees, and would thwart the CLRA‘s purpose. As noted above, the purposes of the CLRA “are to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure such protection.” (
As noted above, the CLRA, like the California Public Records Act, has a provision to expedite lawsuits brought under its provisions. Moreover, only a consumer may maintain an action under the CLRA. In addition, the declaratory relief action is against one consumer—Nunez—thereby eliminating the class action rights of the consumers who would have been joined in the CLRA class action. Also, under
It is inequitable for a consumer to be forced to defend a declaratory relief action and be deprived of the incentives and rights under the CLRA, merely because the consumer sent a CLRA notice, and regardless of whether that consumer decided ultimately to file a lawsuit under the CLRA. Indeed, the consumer may review responses to the CLRA Notice and decide not to bring an action. A preemptive request for a declaration of rights would compel the parties to litigate the matter. Thus, consumers would be deterred from making claims under the CLRA.
The test set forth in Filarsky, supra, 28 Cal.4th 419 is whether the declaratory relief action undermines the statute in question. In view of the factors to which we point, we believe it does in this case. Because, as a matter of law, plaintiff was precluded from filing a declaratory relief claim, it cannot demonstrate a probability of prevailing on that claim.
As to the law firm defendants, plaintiff cannot establish that it had a probability of prevailing on its declaratory relief claim against them because there is no actual controversy between them and plaintiff. ” ‘The fundamental basis of declaratory relief is the existence of an actual, present controversy over a proper subject.’ [Citation.]” (City of Cotati v. Cashman, supra, 29 Cal.4th at p. 79.)
Plaintiff‘s declaratory relief action is based on Nunez‘s claim that plaintiff‘s advertising for Amberen violated the CLRA and caused her damages.
B. Attorney Fees
Plaintiff contends that the trial court erred because it awarded defendants excessive attorney fees on their anti-SLAPP motions. It contended before the trial court that the attorney fees requested were unreasonably inflated and that the time records were inadequate.
A trial court, in assessing attorney fees, “begins with a touchstone or lodestar figure. . . . We expressly approved the use of prevailing hourly rates as a basis for the lodestar, noting that anchoring the calculation of attorney fees to the lodestar adjustment method ‘is the only way of approaching the problem that can claim objectivity, a claim which is obviously vital to the prestige of the bar and the courts.’ [Citation.] [¶] . . . [The lodestar] may be adjusted by the court . . . .” (Ketchum v. Moses, supra, 24 Cal.4th at pp. 1131-1132.)
Defendants had the burden of establishing their entitlement to attorney fees in connection with their anti-SLAPP motions, including the reasonable amount of those fees. (Christian Research Institute v. Alnor (2008) 165 Cal.App.4th 1315, 1320 [81 Cal.Rptr.3d 866].) ” ‘[T]he court may require [a] defendant[] to produce records sufficient to provide “a proper basis for determining how much time was spent on particular claims.” [Citation.] The court also may properly reduce compensation on account of any failure to maintain appropriate time records. [Citation.]’ [Citation.] The evidence should allow the court to consider whether the case was overstaffed,
Plaintiff relies on Bankes v. Lucas (1992) 9 Cal.App.4th 365, 371–372 [11 Cal.Rptr.2d 723] and Nazemi v. Tseng (1992) 5 Cal.App.4th 1633, 1637–1641 [7 Cal.Rptr.2d 762] (both of which cases were superseded by statute on other grounds as stated in Lee v. Wells Fargo Bank (2001) 88 Cal.App.4th 1187, 1197 [106 Cal.Rptr.2d 726]) in support of its contention that “a lack of evidence [to support a fee award] is a legal defect subject to de novo review.” These cases do not support plaintiff‘s contention. In Nazemi v. Tseng, supra, 5 Cal.App.4th 1633, the court reversed the trial court‘s award of attorney fees because the trial court “abused its . . . discretion” by considering defendant‘s untimely motion for attorney fees. (Id. at pp. 1640–1641.) In Bankes v. Lucas, supra, 9 Cal.App.4th 365, the court reversed the trial court‘s award of attorney fees to property owners as prevailing parties because they were not the prevailing parties and, citing Nazemi v. Tseng, supra, 5 Cal.App.4th 1633, their motion for attorney fees was untimely. (Bankes, at pp. 369-371.)
The trial court awarded $104,293.75 in attorney fees to Nunez and Newport, and $57,765.63 in attorney fees to Wasserman, for a total award of $162,059.38. In arriving at the award of attorney fees, the trial court applied a “multiplier of 1.25” to “reflect the contingent nature of the fees.”
Plaintiff contends that defendants submitted “block billing” of their attorney fees that did not amount to careful compilations of the time spent. The evidence submitted in support of the motions for attorney fees, however, was sufficient to allow the trial court to determine “whether the case was overstaffed, how much time the attorneys spent on particular claims, and whether the hours were reasonably expended.” (Christian Research Institute v. Alnor, supra, 165 Cal.App.4th at p. 1320.)
Plaintiff similarly contends that defendants failed to meet their burden of proof to document the hours expended because they submitted declarations of counsel as to the time they spent on various tasks and “did not even supply time records to [support] their . . . after-the-fact time estimates.” A defendant, however, can carry its burden of establishing its entitlement to
Plaintiff contends that the amount awarded to defendants for attorney fees—$104,293.75 to Nunez and Newport, and $57,765.63 to Wasserman—was excessive.10 “In challenging attorney fees as excessive because too many hours of work are claimed, it is the burden of the challenging party to point to the specific items challenged, with a sufficient argument and citations to the evidence. General arguments that fees claimed are excessive, duplicative, or unrelated do not suffice. Failure to raise specific challenges in the trial court forfeits the claim on appeal.” (Premier Medical Management Systems, Inc. v. California Ins. Guarantee Assn. (2008) 163 Cal.App.4th 550, 564 [77 Cal.Rptr.3d 695].) The trial court was familiar with the issues in this case. Because plaintiff did not point to the specific items challenged, with a sufficient argument and citations to the evidence, in support of its contention that the amount of awarded attorney fees was excessive, plaintiff forfeited this claim on appeal. (Ibid.)
Plaintiff contends that the attorney fee award should be reduced to $15,000, apparently in reliance on the reduction of the attorney fee awards in other cases. However, “each fee application under
Plaintiff argues that the multiplier of 1.25 was erroneous because “the requested amount was already enormous, and . . . [the] requested fees were excessive.” But this contention has nothing to do with the multiplier. Among the factors that may be considered by the trial court in adjusting the lodestar are the contingent nature of the fee award, the novelty and difficulty of the questions involved, and the skill displayed in presenting them. (Ketchum v. Moses, supra, 24 Cal.4th at pp. 1131-1132; Serrano v. Priest (1977) 20 Cal.3d 25, 49 [141 Cal.Rptr. 315, 569 P.2d 1303].) Excessive underlying attorney fees are not included among the factors listed in Ketchum and Serrano that may be considered by the trial court in awarding a multiplier.
Plaintiff did not raise before the trial court that any specific items did not relate to the anti-SLAPP motions. (See Christian Research Institute v. Alnor,
Because defendants prevailed on this appeal, they are entitled to recover their appellate attorney fees. “A statute authorizing an attorney fee award at the trial court level includes appellate attorney fees unless the statute specifically provides otherwise. [Citations.] Under . . .
DISPOSITION
The orders granting defendants’ anti-SLAPP motions and awards of attorney fees are affirmed. As the prevailing parties on the special motions to strike, defendants are entitled to recover from plaintiff the reasonable amount of attorney fees and costs incurred on appeal pursuant to
Turner, P. J., and Goodman, J.,* concurred.
Appellant‘s petition for review by the Supreme Court was denied January 21, 2015, S222666.
