Mendoza v. ADP Screening & Selection Services, Inc.Mendoza v. ADP Screening & Selection Services, Inc.
Opinion
The statute governing the “Megan’s Law” Web site (MLW) includes a provision prohibiting the “use of any information that is disclosed [on the MLW] ... for purposes relating to ... ... [][].. . Employment,” and a provision that “[a]ny use” of information disclosed on the MLW for such a purpose “shall make the user liable for . . . actual damages, . . . and attorney’s fees, exemplary damages, or a civil penalty not exceeding [$25,000].” (
The anti-SLAPP (strategic lawsuit against public participation) statute provides that “[a] cause of action against a person arising from any act of that person in furtherance of the person’s right of . . . free speech under the United States Constitution or the California Constitution in connection with a public issue shall be subject to a special motion to strike, unless the court determines that the plaintiff has established that there is a probability that the plaintiff will prevail on the claim.” (
The appeal before us today arises from a case in which the interests protected by the MLW statute meet face-to-face with the interests protected by the anti-SLAPP statute. The appeal presents us with two primary questions. First, does an employment-screening business have a constitutional free speech right—as such rights are defined in the anti-SLAPP statute—to republish information disclosed on the MLW to the business’s clients, notwithstanding the statutory prohibitions on the use of such information? Second, in the event such a constitutional free speech right exists, did the trial court properly grant the business’s anti-SLAPP motion to strike an MLW-based complaint for damages on the ground that plaintiff could not show as a matter of law a probability of prevailing?
FACTS
The Complaint
In November 2008, William Mendoza filed a first amended complaint (FAC) for damages against ADP Screening and Selection Services, Inc. (SASS),
1
alleging a cause of action for violations of Penal Code sections 290.4 and 290.46, a cause of action for violations of Civil Code section 1786.20, subdivision (c), of the Investigative Consumer Reporting Agencies Act (ICRAA;
In August 2007, Mendoza filled out an application for employment. (He does not allege with whom, or for what type of job, or that he was qualified for the position.) In September 2007, SASS conducted a preemployment background check on Mendoza. As part of its background check, SASS “accessed [the MLW] for the sole purpose of denying employment to individuals who were registered sex offenders.” The FAC does not allege whether Mendoza is a registered sex offender. The FAC does not expressly allege that information regarding Mendoza was disclosed on the MLW, but that factual allegation is implicit. The FAC does not expressly allege that Mendoza’s prospective employer decided not to hire him based on information disclosed on the MLW, but that factual allegation, too, is implicit. The FAC alleged that Mendoza “suffered irreparable harm and damages as a result of [SASS]’s unlawful . . . conduct,” but does not expressly allege facts showing the nature of those damages or causation. 2
The Anti-SLAPP Motion
SASS filed a special motion to strike Mendoza’s FAC pursuant to the anti-SLAPP statute. SASS’s motion argued that Mendoza’s claims arose from the company’s actions in furtherance of its constitutional free speech rights. In other words, SASS argued that it had a constitutional free speech right to
Mendoza opposed SASS’s anti-SLAPP motion on three fronts. First, he argued that the anti-SLAPP statute did not apply to SASS’s “commercial speech.” Second, he argued that his claims against SASS were sufficient to show that he probably would prevail on the MLW-based case. Finally, he requested leave to conduct discovery. On an evidentiary front, Mendoza submitted a declaration in which he set forth the following, admissible, nonconclusory facts:
“2. I applied for employment with a prospective employer. I passed the preliminary review and was selected for further consideration by the prospective employer.
“3. My prospective employer hired SASS for a fee to prepare a . . . report on [me] for employment purposes. I know this because I was told by my prospective employer and I received a copy of the . . . report [prepared by] SASS____
“4. . . . [T]he prospective employer gave me a copy of [SASS’s report].
“5. SASS delivered the . . . report to my prospective employer.[ 3 ]
“6. SASS’s . . . accessing of and use of the information disclosed on the [MLW] has . . . cost[] me gainful employment and the ability to lawfully earn wages, [and] caused me to suffer emotionally, including but not limited to depression.”
Following a hearing, the trial court entered a minute order granting SASS’s special motion to strike Mendoza’s complaint under the anti-SLAPP statute. The trial court’s statement of decision explained its reasons for granting SASS’s motion and dismissing Mendoza’s action. The court determined the FAC was subject to the anti-SLAPP statute because the conduct alleged by Mendoza arose in furtherance of SASS’s First Amendment rights of commercial speech on a matter of public interest, i.e., the identities of registered sex offenders, and the commercial speech exemption to the anti-SLAPP statute (see
The trial court’s statement of decision and order of dismissal included a mandatory award for attorney fees in the amount of $42,593.75 in favor of SASS. (See
Mendoza filed a timely notice of appeal.
DISCUSSION
I. The Anti-SLAPP Motion Was Properly Granted
The Legislature enacted the anti-SLAPP statute to address the societal ills caused by meritless lawsuits filed primarily to chill a defendant’s exercise of First Amendment rights. (
a. The Exemption to the Anti-SLAPP Statute Did Not Apply
Mendoza first contends the order dismissing his case must be reversed because SASS’s employment-screening conduct was entirely exempted from the anti-SLAPP statute’s purview by Code of Civil Procedure
Code of Civil Procedure
Code of Civil Procedure
b. Providing Employment-screening Reports Is a “Protected Activity” Within the Meaning of the Anti-SLAPP Statute
Mendoza next contends the order dismissing his case must be reversed because SASS’s employment-screening conduct is not “protected activity” within the meaning of the anti-SLAPP statute. We disagree.
Not all speech by a business enterprise constitutes “commercial speech,” a term often used in the advertising context. But it is well
We agree with the trial court that SASS made its requisite prima facie showing that, in publishing information disclosed on the MLW, it engaged in constitutionally protected speech on a subject of public interest. Indeed, the Legislature, in enacting the statutory scheme establishing the MLW, issued several findings which openly expressed the public’s strong interest in the dissemination of information regarding registered sex offenders. (See
Fredenburg v. City of Fremont
(2004)
To avoid the conclusion that SASS properly sought relief under the antiSLAPP statute based upon the company’s prima facie showing that it had acted in furtherance of its constitutional free speech rights, Mendoza argues SASS’s use of information on the MLW was an “illegal” activity. More directly, Mendoza contends his MLW-based claims against SASS are beyond the protections of the anti-SLAPP statute because the company engaged in statutorily prohibited conduct when it accessed the MLW, and sold information disclosed on the MLW to its clients. We understand the gist of Mendoza’s argument to be that every violation of a statutory prohibition necessarily removes the violator out from under the protective umbrella of the anti-SLAPP statute. We disagree.
The parties’ arguments cite
Flatley v. Mauro
(2006)
The Supreme Court affirmed the Court of Appeal’s decision, and the following is the relevant rule articulated in
Flatley
for purposes of Mendoza’s current case: “[W]here a defendant brings a motion to strike under [the anti-SLAPP statute] based on a claim that the plaintiff’s action arises from activity by the defendant in furtherance of the defendant’s exercise of protected speech . . . , but either the defendant concedes, or the evidence conclusively establishes, that the assertedly protected speech . . . was
illegal
as a matter of law, the defendant is precluded from using the anti-SLAPP statute to strike the plaintiff’s action. In reaching this conclusion, we emphasize that the question of whether the defendant’s underlying conduct was
illegal
as a matter of law is preliminary, and unrelated to the second prong question of whether the plaintiff has demonstrated a probability of prevailing, and [that] the showing required to establish conduct
illegal
as a matter of law—either through [the] defendant’s concession or by uncontroverted and conclusive evidence—is not the same showing as the plaintiff’s second prong showing of probability of prevailing.”
(Flatley, supra,
Our reading of Flatley leads us to conclude that the Supreme Court’s use of the phrase “illegal” was intended to mean criminal, and not merely violative of a statute. First, the court in Flatley discussed the attorney’s underlying conduct in the context of the Penal Code’s criminalization of extortion. Second, a reading of Flatley to push any statutory violation outside the reach of the anti-SLAPP statute would greatly weaken the constitutional interests which the statute is designed to protect. As SASS correctly observes, a plaintiff’s complaint always alleges a defendant engaged in illegal conduct in that it violated some common law standard of conduct or statutory prohibition, giving rise to liability, and we decline to give plaintiffs a tool for avoiding the application of the anti-SLAPP statute merely by showing any statutory violation.
We also reject Mendoza’s contention that SASS’s conduct was illegal or criminal under Penal Code
In the end, we are satisfied that SASS properly invoked the anti-SLAPP statute to challenge Mendoza’s complaint because SASS’s underlying conduct involved speech activity in furtherance of its First Amendment rights, and SASS did not concede that its underlying conduct was criminal, nor did the. evidence conclusively establish that its conduct was criminal.
c. Mendoza Did Not Demonstrate He Was Likely to Prevail
SASS’s anti-SLAPP motion argued that Mendoza could not prevail on his first cause of action for violation of Penal Code section 290.46—as a matter of law—because SASS had not “used” information disclosed on the MLW. The trial court agreed and so do we.
The relevant portions of Penal Code
“(Z)(l) A person is authorized to use information disclosed pursuant to this section only to protect a person at risk.
“(2) Except as authorized under paragraph (1) or any other provision of law, use of any information that is disclosed pursuant to this section for purposes relating to any of the following is prohibited:
“(B) Insurance.
“(C) Loans.
“(D) Credit.
“(E) Employment.
“(F) Education, scholarships, or fellowships.
“(G) Housing or accommodations.
“(H) Benefits, privileges, or services provided by any business establishment.”
Mendoza first claims these statutory provisions should be read together to create two independent prerequisites which must be met for a lawful disclosure of MLW information. That is, to disseminate the MLW information it first must be done to protect a person at risk and, second, the information can never be used for any of the listed, prohibited purposes. We disagree. We read these provisions as follows: Penal Code
SASS does not argue it is using the information to protect a specific person at risk. And while a strong argument might be made that employees are persons at risk whom an employer has a duty to protect from a sexually violent predator, SASS was not employing persons to work with Mendoza. Further, as we believe that because SASS did not “use” the information in a manner contemplated by Penal Code
Neither the term “use” nor the phrase “purposes relating to employment” is defined in the statute, and the parties have not cited us to any decision by a California state court interpreting these statutory terms. This means we must apply long-standing rules of statutory interpretation to fill in the definitional void.
In interpreting a statute, we first look to the language of the statute, giving effect to its “plain meaning” according to its ordinary usage, with
Mendoza argues that accessing, compiling, and republishing information disclosed on the MLW to prospective employers, when done for commercial payment, constitutes a “use” of such information for a “purpose relating to employment.” SASS argues that a “use” of information disclosed on the MLW for a “purpose relating to employment” only occurs when the information is taken into account by an employer in making an employment decision. In our view, both of these interpretations of the words of the MLW statute are reasonable, meaning we must decide whether the Legislature intended, when it enacted the MLW statute, to create liability for damages on the part of an employment-screening business that accesses, compiles and republishes information disclosed on the MLW. 4
Although the legislative history in the record and the parties’ briefs are sparse, we are satisfied that the MLW statute is not intended to create
liability for damages
on the part of employment-screening businesses that access, compile and republish information disclosed on the MLW; and that the statutory liability created by the MLW statute should be limited to employers who “use” information disclosed on the MLW as a basis for an employment decision. The MLW statute’s genesis can be traced back to the Legislature’s enactment of Penal Code former section 290.4 in 1994, which required the Department of Justice (DOJ) to compile and maintain a centralized record of the state’s registered sex offenders to be made available to local law enforcement agencies. (Stats. 1994, ch. 867, § 4, p. 4396.) In 1996, the Legislature added language to section 290.4 stating that any person who “copie[d], distribute^], disclosefd], or receive[d]” any information from DOJ’s sex offender records, “except as authorized by law,” was “guilty of a
By the beginning of this decade, the Legislature was completely rethinking the utility of sex offender information, and, in 2004, the Legislature added the MLW statute to the Penal Code to create the MLW so that the general public could access the DOJ’s information on registered sex offenders. (
The historical development of the statutory schemes governing DOJ’s sex offender informational records (
We also affirm the trial court’s conclusion that Mendoza could not—as a matter of law—show a probability of prevailing on his second cause of action against SASS for an alleged violation of Civil Code section 1786.20, subdivision (c). Section 1786.20, subdivision (c), provides: “An investigative consumer reporting agency may not make an inquiry for the purpose of preparing an investigative consumer report on a consumer for employment purposes
if the making of the inquiry by an employer or prospective employer of the consumer would violate applicable federal or state equal employment opportunity law or regulation.”
(Italics added.) The fatal element in Mendoza’s second cause of action for an alleged violation of section 1786.20, subdivision (c), is his unspoken predicate that his prospective employer’s inquiry into whether Mendoza was identified on the MLW somehow violated a
federal or state equal employment opportunity law or regulation.
We agree with the Attorney General’s conclusion, apart from Mendoza’s current case,
II. Discovery
The trial court’s decision not to permit Mendoza to conduct discovery was shaped by its conclusions that Mendoza could not show a probability of prevailing as a
matter of law
on his causes of action under Penal Code
III. SASS Is Entitled to Its Attorney Fees on Appeal
Code of Civil Procedure
The order entered on January 9, 2009, dismissing Mendoza’s action, is affirmed. Costs on appeal are awarded to SASS.
Rubin, J., and Lichtman, J., * concurred.
Notes
Mendoza’s pleading includes class action allegations, but the class action aspects of his case are not involved in the current appeal.
The MLW statute provides that any person “aggrieved by the misuse” of information available on the MLW “is authorized to bring a civil action . . . requesting preventive relief, including an application for a permanent or temporary injunction . . .” (
Paragraph 5 of Mendoza’s declaration also included the statement that he was denied employment based on the report. However, SASS’s objections based on lack of foundation and personal knowledge about the reason for his prospective employer’s employment decision were sustained.
As we noted above, Mendoza’s FAC does not seek injunctive relief against SASS based upon any alleged “misuse” of information available on the MLW. (See fn. 2, ante.)
Mendoza’s opening brief on appeal does not contain any meaningful argument challenging the trial court’s decision to strike his third cause of action for declaratory relief, and we presume he concedes that this third cause of action rises or falls with his first and second causes of action.
Judge of the Los Angeles Superior Court, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.