Rogers v. Home Shopping Network, Inc.Rogers v. Home Shopping Network, Inc.
Plaintiff Mimi Rogers has brought a libel action against defendants. Defendant National Enquirer has filed a special motion to strike Rogers’s complaint pursuant to California Code of Civil Procedure § 425.16. Rogers has made an ex parte application to continue the hearing on the special motion so that she can pursue discovery. Early consideration of National Enquirer’s motion would contradict the scheme of the Federal Rules of Civil Procedure and therefore run afoul of the Erie doctrine. The Court therefore grants Rogers’s application.
I. Background
On June 2, 1998, National Enquirer published an article containing certain statements about Rogers. (Compl. at ¶ 13.) Rogers brought a libel action against the Home Shopping Network and National Enquirer, alleging that both defendants knew the statements in the article were false.
National Enquirer filed a special motion to strike pursuant to California Code of Civil Procedure § 425.16. Under § 425.16, Rogers must show “a probability that [she] will prevail on the claim.” Id. at § 425.16(b)(1). Otherwise, the section provides that her claim must be dismissed. Id.
Rogers has filed an ex parte application seeking to continue consideration of the special motion. Rogers argues that she is unable to produce the proof required by § 425.16 because she has not had sufficient time for discovery. (Ex Parte Appl. at 5.) National Enquirer responds that a hearing before discovery is precisely the point of § 425.16 and delaying the hearing would frustrate the purposes of that section. (Opp. to Ex Parte Appl. at 2-3.) Thus, the Court must consider the appropriateness of holding a § 425.16 hearing before discovery.
II. Discussion
A. The statute
In 1992, the California Legislature enacted a provision commonly known as an “anti-SLAPP suit” statute. “The term ‘SLAPP suit,’ the acronym for ‘strategic lawsuit against public participation,’ was coined by two University of Denver professors, George W. Pring and Penelope Can-an, who authored the seminal influential studies on this phenomenon.”
Briggs v. Eden Council for Hope and Opportunity,
SLAPP suits are often brought for “ ‘purely political purposes’ ” in order “to obtain an economic advantage over the defendant, not to vindicate a legally cognizable right of the plaintiff.”
Id.
(quoting
Hull v. Rossi,
The California Legislature found that such suits were being used to harass plain
As it appears today, the statute begins by noting the legislative intent behind its enactment:
(a) The Legislature finds and declares that there has been a disturbing increase in lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for the redress -of grievances. The Legislature finds and declares that it is in the public interest to encourage continued participation in matters of public significance, and that this participation should not be chilled through abuse, of the judicial process. To this end, this section shall be construed broadly.
Cal.Civ.Proc.Code § 425.16.
To prevent such chilling, the Legislature created a special procedure for early testing of the validity of suits involving such rights:
(b)(1) A cause of action against a person arising from any act of that person in furtherance of the person’s right of petition or free speech under the United States or 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.
(2) In making its determination, the court shall consider the pleadings, and supporting and opposing affidavits stating the facts upon which the liability or defense is based.
(3) If the court determines that the plaintiff has established a probability that he or she will prevail on the claim, neither that determination nor the fact of that determination shall be admissible in evidence at any later stage of the case, and no burden of proof or degree of proof otherwise applicable shall be affected by that determination.
Id.
As an additional safeguard, the Legislature provided that a successful defendant may recover his or her expenses in bringing the special motion:
(c)In any action subject to subdivision (b), a prevailing defendant on a special motion to strike shall be entitled to recover his or her attorney’s fees and costs. If the court finds that a special motion to strike is frivolous or is solely intended to cause unnecessary delay, the court shall award costs and reasonable attorney’s fees to a plaintiff prevailing on the motion, pursuant to Section 128.5.
Id.
The Legislature then defined the activities that enjoy the special protections provided by this statute:
(e) As used in this section, “act in furtherance of a person’s right of petition or free speech under the United States or California Constitution in connection with a public issue” includes: (1) any written or oral statement or writing made before a legislative, executive, or judicial proceeding, or any other official proceeding authorized by law; (2) any written or oral statement or writing made in connection with an issue under consideration or review by a legislative, executive, or judicial body, or any other official proceeding authorized by law; (3) any written or oral statement or writing made in a place open to the public or a public forum in connection with an issue of public interest; (4) or any other conduct in furtherance of the exercise of the constitutional right of petition or the constitutional right of free speech in connection with a public issue or an issue of public interest.
Id.
Consistent with its intent to protect defendants from incurring legal expenses,
(f) The special motion may be filed within 60 days of the service of the complaint or, in the court’s discretion, at any later time upon terms it deems proper. The motion shall be noticed for hearing not more than 30 days after service unless the docket conditions of the court require a later hearing.
(g) All discovery proceedings in the action shall be stayed upon the filing of a notice of motion made pursuant to this section. The stay of discovery shall remain in effect until notice of entry of the order ruling on the motion. The court, on noticed motion and for good cause shown, may order that specified discovery be conducted notwithstanding this subdivision.
Id.
Thus, the California Legislature created new protections for defendants in suits related to public participation. The protections consist of a mechanism for early testing of the plaintiffs claims and an award of costs and fees to a successful defendant.
B. Application of the statute by California courts
While the anti-SLAPP statute is still fairly new, it has frequently been invoked and certain aspects of its application have become clear.
Although “[t]he typical SLAPP suit involves citizens opposed to a particular real estate development,”
Dixon v. Superior Ct. (Scientific Resource Surveys, Inc.),
A special motion to strike can be based on any defect in the plaintiffs action. Thus, a special motion may be premised on legal -deficiencies inherent in the plaintiffs claim, analogous to a motion to dismiss under
On a special motion to strike, “[t]he moving party bears the initial burden of establishing a prima facie showing [that] the plaintiffs cause of action arises from the defendant’s free speech or petition activity.”
Id.
at 630;
see also Wilcox,
The plaintiff can meet this evidence only by showing “ ‘a probability that the plaintiff will prevail on the claim,’ i.e.,
The California courts that have addressed the issue have all agreed that § 425.16 does not substantively alter any cause of action. Instead, § 425.16 is “a mere rule of procedure,”
Ludwig v. Superior Ct. (Barstow),
This “rule of procedure” provides that discovery is automatically stayed upon the defendant’s filing of a special motion to strike. Cal.Civ.Proe.Code § 425.16(g). A plaintiff who desires to conduct further discovery after the defendant files a special motion must file a noticed motion for permission to conduct such discovery, which the court will grant only for good cause shown and only for specified discovery.
Id.
These requirements have been strictly applied by California courts.
See, e.g., Sipple,
C. Section 425.16 applies in federal court
The
Erie
doctrine provides that in diversity actions state law controls substantive issues while federal rules provide the procedure.
See Erie R. Co. v. Tompkins,
The Ninth Circuit Court of Appeals recently held that § 425.16 falls within one of Erie’s exceptions. In
United States v. Lockheed Missiles & Space Co.,
In
Lockheed,
two qui tarn relators under the False Claims Act,
Both parties appealed the district court decision to the Ninth Circuit. Although the appeal raised various issues, only the Ninth Circuit’s discussion of § 425.16 is relevant here.
The Ninth Circuit began by discussing the legislative history of California’s anti-SLAPP statutes and then outlined some of the provisions of § 425.16.
Lockheed,
To answer this question, the Ninth Circuit began “by asking whether such an application would result in a ‘direct collision’ with the Federal Rules.”
Id.,
“In the absence of a ‘direct collision,’ ” the Ninth Circuit stated that it must “make the ‘typical, relatively unguided
Erie choice.’
”
Id.
at 1218 (quoting
Hanna v. Plumer,
D. The manner in which § 425.16 must be applied in federal court
While
Lockheed
concluded that some portions of § 425.16 apply in federal court, it did not address the precise methods and limits of its application. Lockheed considered only two provisions of § 425.16, subsections (b) and (c), and held that they are to be applied in federal court because they do not conflict with the federal rules. Subsection (b) provides the general availability of the special motion to strike and subsection (c) provides for awards of attorney’s fees.
See
Cal.Civ.Proc.Code § 425.16(b), (c). As noted earlier, however,
Lockheed
“expressed] no opinion regarding the applicability of any other provisions” of § 425.16.
Lockheed,
To determine the appropriate method of applying § 425.16 in federal court, the Court will consider each of the section’s provisions and determine whether it is in “direct collision” with the P’ederal Rules.
See Walker,
The first subsection of § 425.16 is a preamble declaring the Legislature’s intent in enacting the statute. See Cal.Civ. Proe.Code § 425.16(a). This subsection also declares that § 425.16 “shall be construed broadly.” Id. Because this subsection contains no substantive provisions, it does not conflict with any Federal Rule.
Subsection (b)(1) provides for the availability of the special motion to strike and requires the defendant to show “a probability” of success on the merits in order to survive the motion; subsection (b)(2) set out the scope of the evidence upon which the court decides the motion; and subsection (b)(3) provides that the finding of a probability of success is not admissible at any later stage of the case and does not alter any burden of proof. See Cal.Civ. Proe.Code § 425.16(b).
Subsection (c) provides that the court shall award attorney’s fees to a party bringing a successful motion to strike or to a plaintiff forced to defend a frivolous motion to strike. Cal.Civ.Proc.Code § 425.16(c). As discussed earlier, the Ninth Circuit has held that subsections (b) and (c) apply in federal court.
See Lockheed,
Subsection (d) provides that the special motion to strike may not be used against an action brought by a public prosecutor in the name of the people of the state of California. Cal.Civ.Proc.Code § 425.16(d). Restricting the availability of a state created special motion to strike does not conflict with any Federal Rule.
Subsection (e) defines the activities that receive the protections of special motion to strike.
While the previous subsections were dealt with easily, subsections (f) and (g) require more detailed consideration. Because these subsections affect each other, they must be considered together.
Subsection (f) provides that the special motion may be filed within sixty days of
Taken together, subdivisions (f) and (g) allow the defendant to file a special motion to strike immediately upon being served with the complaint. This filing automatically stays all further discovery. Should the plaintiff desire further discovery, he or she must file a noticed motion showing good cause and the court “may” permit “specified discovery.”
Thus, subdivisions (f) and (g) create a default rule that allows the defendant served with a complaint to immediately put the plaintiff to his or her proof before the plaintiff can conduct discovery. Only by noticed motion for and good cause shown will a court disturb this default rule by continuing the hearing regarding the special motion and even then the court will only allow “specified” discovery.
2
If this expedited procedure were used in federal court to test the plaintiffs evidence before the plaintiff has completed discovery, it would collide with
To show how subdivisions (f) and (g) collide with
However, § 425.16 is not limited to testing legal theories. As the statute provides, and as discussed earlier, a court presented with a special motion to strike must consider “supporting and opposing affidavits stating the facts upon which the liability or defense is based.” Cal.Civ. Proc.Code § 425.16(b)(2). Indeed, most of the California state court opinions addressing § 425.16 concern issues of fact rather than legal arguments.
See, e.g., Beilenson,
As held in Lockheed, a special motion to strike premised on legal arguments, similar to a 12(b)(6) motion, is available in federal court. A special motion to strike premised on an alleged lack of evidence, similar to a summary judgment motion, is also available in federal court. However, the manner in which these motions are presented and considered must comport with federal standards.
•
Because of the requirement that the nonmoving party be permitted to conduct
necessary discovery, summary judgment is often considered inappropriate early in a case.
See, e.g., Redmond v. Burlington Northern R. Co. Pension Plan,
These rules comport with the purpose of
Thus, § 425.16 and
For example, California courts have denied discovery under § 425.16 because the defendant failed to specify “what additional facts he expects to uncover ,... ”
Sip-ple,
Because the discovery-limiting aspects of § 425.16(f) and (g) collide with the discovery-allowing aspects of
As the Ninth Circuit held in
Lockheed,
simply bringing a special motion to strike in federal court does not create a conflict with the Federal Rules. However, this is true only if the federal court applies the usual federal standards regarding discovery and the timing of motions seeking judgments on the facts. In other words, if a defendant desires to make a special motion to strike based on the plaintiffs lack of evidence, the defendant may not do so until discovery has been developed sufficiently to permit summary judgment under
A correlative outcome is required regarding a special motion alleging legal deficiencies. By this, the Court refers to a motion that only identifies legal defects on the face of the pleading, analogous to a
In sum, § 425.16 applies in federal court. However, it cannot be used in a manner that conflicts with the Federal Rules. This results in the following outcome: If a defendant makes a special motion to strike based on alleged deficiencies in the plaintiffs complaint, the motion must be treated in the same manner as a motion under
National Enquirer asserts that this outcome is inconsistent with
Lockheed.
According to National Enquirer, the standard of the special motion to strike is different from the standard of
National Enquirer points out that
Lockheed
endorsed the application of § 425.16(b)(1) in federal court. This subsection provides that a suit falling within the SLAPP provisions shall be stricken “unless the court determines that the plaintiff has established there is a probability that the plaintiff will prevail on the claim.”
See Lockheed,
As an initial matter, it is not clear that there is any substantive difference between the two standards identified by National Enquirer. More importantly, however, it is incorrect to speak in terms of “burdens” when dealing with legal issues rather than matters of evidence.
See, e.g., Black’s Law Dictionary,
196 (6th ed.1990) (defining burdens in regards to evidence). Burdens are relevant when evidence is ambiguous or evenly balanced. The result of a question of law cannot be “ambiguous” or “evenly balanced.” While some questions are more difficult than others, eventually the judge must answer the question to the best of his or her ability. Thus, burdens of proof have no place in
Additionally, while National Enquirer interprets Lockheed as endorsing the use of a state standard that is different from the Federal Rules, National Enquirer does not explain how this would be consistent with the Erie doctrine. Therefore, the Court rejects National Enquirer’s argument.
In a separate argument, National Enquirer argues that
“Lockheed
reconciled the state statute with the Federal Rules by recognizing that the hard look required by state law would
precede
further litigation in federal court, as well as subsequent motion practice under
According to National Enquirer, this difference in timing avoids any possible conflict between § 425.16 and the Federal Rules. But if, as asserted by National Enquirer,
Lockheed
applied a heavier burden on the plaintiff in a special motion to strike than that imposed by the Federal Rules, Lockheed’s explanation for the lack of conflict is unsound: If the plaintiff cannot meet the heavier burden of the special motion, the case would be immediately dismissed. If so, the fact that the special motion precedes the
Lockheed’s explanation for the lack of conflict makes sense only if one assumes that the standards for a special motion to strike are no different from those of the Federal Rules. If they are no different, allowing a state-created vehicle to test the plaintiffs claim does not conflict with the Federal Rules and the various vehicles coexist peacefully. If, however, the standards are different, they will produce different outcomes, which means they conflict.
While National Enquirer discusses various arguments in favor of the early disposition of libel suits, these are of no moment if the state-created procedure conflicts with the Federal Rules.
See, e.g., Hanna,
In conclusion, in federal court, a special motion to strike must be decided pursuant to the standards of
E. Application to the present case
As discussed earlier, National Enquirer filed a special motion to strike Rogers’s complaint. The special motion does not attack Rogers’s legal theories. Instead, it claims that Rogers cannot support her claim with appropriate evidence. {See Mot. to Strike at 3 — 4.) Rogers seeks to continue the hearing on the special motion to strike in order to permit her to conduct discovery. {See Pl.’s Appl. at 5.) National Enquirer opposes a continuance, claiming that such a continuance would defeat the purpose of § 425.16. {See Opp. to Appl. at 1-2.)
This conclusion does not rule on any specific discovery request and does not address whether Rogers is entitled to discover the identity of the purported confidential source. The Court merely holds that Rogers has raised a legitimate issue as to discovery and is entitled to present these arguments in the usual manner and in the appropriate forum. Consideration of these arguments must be under the standards provided by the Federal Rules.
III. Conclusion
The Court continues the hearing on the special motion to strike to allow Rogers time to attempt to conduct discovery. 7 Only after discovery issues are resolved and discovery is complete will it be appropriate for the Court to consider the special motion to strike.
IT IS SO ORDERED.
Notes
. Only one other Ninth Circuit order mentions § 425.16, an unpublished memorandum in
Frias v. Los Angeles County Metro. Transp. Auth.,
No. 97-56078,
. As noted earlier, California courts have strictly applied these requirements.
See, e.g., Sipple,
. Two other aspects of subsection (i) do not conflict with any aspect of the federal rules. Subsection (f) permits a special motion to strike to be filed within sixty days of service of the complaint.
Subsection (f) also requires that the hearing on a special motion to strike be held not later than thirty days after the motion is filed unless the court’s docket requires a later hearing.
. Regarding these issues, § 425.16 does not necessarily require standards different from the Federal Rules. However, based on the
. This does not mean that the standards under which a court decides a legal question are unimportant, only that the issue of who bears
. Though burdens of proof are important for evidence-based summary judgment motions, § 425.16 does not alter the standard of the Federal Rules. When faced with a
. The Court also notes that it is not clear that § 425.16 applies to the present case. A newspaper should not be deemed a "public forum” for purposes of § 425.16.
See Lafayette Morehouse, Inc. v. Chronicle Publ'g Co.,
National Enquirer may have trouble satisfying the "public issue” or "issue of public interest” element. California decisions seem clear that the fact that a statement appeared in a newspaper is insufficient to satisfy this element.
See Carney v. Santa Cruz Women Against Rape,
It is true that California courts have found the public issue or issue of public interest element to be satisfied by speech on many different subjects.
See, e.g., Sipple,