Lead Opinion
Appellants Carl Harris and his company, Phat Groov Music, appeal the district court’s order denying their motion to dismiss a complaint filed by Appellees The Royalty Network, Frank Liwall, and Steven Weber. Harris sought to dismiss the complaint because the Appellees failed to comply with Georgia’s anti-SLAPP (Strategic Lawsuits Against Public Participation) statute by not filing verifications with their complaint, as required by O.C.G.A. § 9 — 11—11.1 (b). The district court denied the motion, and Harris pursued this interlocutory appeal. We conclude we have appellate jurisdiction under the collateral order doctrine and we affirm the district court’s order because § 9-11-11.1 does not apply in federal court in a diversity action.
I. BACKGROUND
The Royalty Network, Inc. is a New York corporation involved in music publishing and administration. Liwall is the president of The Royalty Network and Weber is the company’s west coast director. Harris, a Georgia resident, provided consulting services to The Royalty Network and would recruit songwriters, music artists, and producers on behalf of the corporation. The record indicates Harris worked for The Royalty Network since at least 2005, but the parties’ relationship ended in January 2011 when Liwall terminated Harris’s consulting agreement. Harris disputed the termination, and, following several communications between the parties, The Royalty Network filed a lawsuit in New York state court on May 12, 2011, alleging various causes of action and seeking a declaratory judgment that the consulting agreement had been terminated.
On May 27, 2011, Harris filed a complaint in the Fulton County Superior Court in Georgia, alleging causes of action against The Royalty Network and Liwall related to the company’s alleged failure to
In September 2011, Harris, acting through Phat Groov Music LLC, created and activated the website “www.theroyalty network.com” (the website). The website contains numerous statements denouncing the Appellees and their litigation tactics and providing copies of documents as well as commentary about documents filed in the lawsuits between the parties.
On December 22, 2011, the New York trial court dismissed The Royalty Network’s lawsuit for lack of personal jurisdiction over Harris. Subsequently, on February 21, 2012, Appellees filed a complaint against Harris in the U.S. District Court for the District of Arizona alleging causes of action stemming from Harris’s statements on the website.
On May 31, 2012, a state appellate court affirmed the trial court’s dismissal of Ap-pellees’ New York lawsuit. In August 2012, the Arizona federal district court dismissed Appellees’ lawsuit for lack of personal jurisdiction.
On September 6, 2012, Appellees filed the instant complaint against Harris and his company in the U.S. District Court for the Northern District of Georgia. In the complaint, Appellees alleged that Harris and Phat Groov Music published false and defamatory statements on the website and that they intended to prevent others from doing business with the company. Appel-lees asserted causes of action for libel per se, “injurious falsehood,” and intentional infliction of emotional distress. Appellees requested damages of not less than $1 million, punitive damages of $3 million, and an injunction requiring Harris to take down the website.
Harris filed a pro se motion to dismiss the complaint because it did not contain the verifications required by O.C.G.A. § 9-11 — 11.1(b). Section 9-ll-ll.l(b) requires that for any claim relating to an act that could be construed as having been done in furtherance of the right of free speech or the right to petition the government, both a plaintiff and plaintiffs counsel must file a written verification certifying that the claim is well grounded in fact, is warranted under existing law, and that the claim is not made for an improper purpose. O.C.G.A. § 9-ll-ll.l(b).
The district court denied Harris’s motion to dismiss, finding in pertinent part that the statute did not apply to the case. Harris filed a counseled motion for reconsideration, arguing the district court was wrong on the merits or, alternatively, urging the district court to either certify its order for interlocutory review by this Court or to certify a question to the Georgia Supreme Court. The next day, Harris filed a notice of appeal from the district court’s order denying his motion to dismiss.
The district court denied Harris’s motion for reconsideration and also declined to certify the appeal for interlocutory review by this Court or to certify a question to the Georgia Supreme Court. The district court stayed further proceedings pending this Court’s resolution of Harris’s appeal.
II. STANDARD OF REVIEW
We review de novo questions concerning our jurisdiction. Weatherly v. Ala. State Univ.,
This case comes to us on interlocutory review and we must first consider whether we have appellate jurisdiction to consider the appeal. We conclude we have jurisdiction to consider the case under the collateral order doctrine, and hold that § 9—11—ll.l(b)’s verification requirement conflicts with Federal Rule of Civil Procedure 11 and therefore does not apply in federal cases arising under the district court’s diversity jurisdiction. Accordingly, we affirm the district court’s decision de-nvinff Harris’s motion to dismiss.
A. Collateral Order Doctrine
It is by now axiomatic that this Court has jurisdiction over an order of the district court only if the order is final within the meaning of 28 U.S.C. § 1291, or if it falls into a small class of orders that are otherwise made appealable by statute or “jurisprudential exception.” See CSX Transp., Inc. v. City of Garden City,
The Supreme Court has emphasized that the collateral order doctrine is narrow and has cautioned that each prong of the Cohen test is stringent. See Will v. Hallock,
The district court’s order satisfies the first Cohen prong because it conclusively determined the disputed question of whether § 9-ll-ll.l(b)’s verification requirement applies in federal court. The district court’s order answered that question in the negative, finding § 9—11—11.1(b) does not apply in a diversity action because it conflicts with the Federal Rules of Civil Procedure and was “procedural” within the meaning of Erie Railroad Co. v. Tompkins,
The district court’s order also satisfies the second and third prongs of the collateral order doctrine. Both prongs require a sufficiently strong justification for an immediate appeal to overcome the ordinary preference for a single appeal following the end of litigation. Carpenter,
The denial of a motion to dismiss for failure to comply with Georgia’s antiSLAPP statute implicates significant constitutional guarantees and values of an exceptionally high order; specifically, the right to freedom of speech and the right to petition the government for redress of grievances. See U.S. Const, amend. I. The Supreme Court has repeatedly extolled the importance of the freedom of speech, explaining that the First Amendment expresses “a profound national commitment to the principle that debate on public issues should be uninhibited, robust, and wide-open,” New York Times Co. v. Sullivan,
[I]t is in the public interest to encourage participation by the citizens of Georgia in matters of public significance through the exercise of their constitutional rights of freedom of speech and the right to petition government for redress of grievances. The General Assembly of Georgia further finds and declares that the valid exercise of the constitutional rights of freedom of speech and the right to petition government for a redress of grievances should not be chilled through abuse of the judicial process.
O.C.G.A. § 9-ll-ll.l(a). Thus, the First Amendment values at the heart of Georgia’s anti-SLAPP statute militate strongly in favor of immediate appellate review.
The third Cohen prong is satisfied in this case because the district court’s conclusion that § 9 — 11—ll.l(b)’s verification requirement does not apply in federal court is effectively unreviewable on appeal from a final judgment. The Supreme Court has indicated that “the decisive consideration [under the third Cohen prong] is whether delaying review until the entry of final judgment would imperil a substantial public interest or some particular value of a high order.” Carpenter,
B. Conflict with the Federal Rules of Civil Procedure
Harris contends the district court erred by finding § 9 — 11—11.1 (b)’s verification requirement is a procedural rule that does not apply in federal court. It is well established that when- a federal court considers a case that arises under its diversity jurisdiction, the court is to apply state substantive law and federal procedural law. Hanna v. Plumer,
If the federal rule is not sufficiently broad to cover the issue or does not directly conflict with the state law, the district court should then proceed to the second prong of the Hanna test, which requires the district court to apply Erie and its progeny to determine “whether failure to apply the state law would lead to different outcomes in state and federal court and result in inequitable administration of the laws or forum shopping.” Burke,
Accordingly, we first consider whether the Federal Rules of Civil Procedure are sufficiently broad to control the issue of whether a complaint must be verified. In the federal system, Rule 11 provides the general rule regarding verifications and representations to the court.
By presenting to the court a pleading, written motion, or other paper — whether by signing, filing, submitting, or later advocating it — an attorney or unrepresented party certifies that to the best of the person’s knowledge, information, and belief, formed after an inquiry reasonable under the circumstances:
(1) it is not being presented for any improper purpose, such as to harass, cause unnecessary delay, or needlessly increase the cost of litigation;
(2) the claims, defenses, and other legal contentions are warranted by existing law or by a nonfrivolous argument for extending, modifying, or reversing existing law or for establishing new law;
(3) the factual contentions have eviden-tiary support or, if specifically so identified, will likely have evidentiary support after a reasonable opportunity for further investigation or discovery; and
(4) the denials of factual contentions are warranted on the evidence or, if specifically so identified, are reasonably based on belief or a lack of information.
Fed.R.Civ.P. 11(b). Rule 11(c) authorizes the district court to impose appropriate sanctions on an attorney, law firm, or party for violations of the rule. Fed.R.Civ.P. 11(c).
For any claim asserted against a person or entity arising from an act by that person or entity which could reasonably be construed as an act in furtherance of the right of free speech or the right to petition government for a redress of grievances under the Constitution of the United States or the Constitution of the State of Georgia in connection with an issue of public interest or concern, both the party asserting the claim and the party’s attorney of record, if any, shall be required to file, contemporaneously with the pleading containing the claim, a written verification under oath.... Such written verification shall certify that the party and his or her attorney of record, if any, have read the claim; that to the best of their knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law; that the act forming the basis for the claim is not a privileged communication ... and that the claim is not interposed for any improper purpose such as to suppress a person’s or entity’s right of free speech or right to petition government, or to harass, or to cause unnecessary delay or needless increase in the cost of litigation. If the claim is not verified as required by this subsection, it shall be stricken unless it is verified within ten days after the omission is called to the attention of the party asserting the claim. If a claim is verified in violation of this Code section, the court, upon motion or upon its own initiative, shall impose upon the persons who signed the verification, a represented party, or both an appropriate sanction which may include dismissal of the claim and an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, including a reasonable attorney’s fee.
O.C.G.A. § 9 — 11—11.1(b).
Based on the plain text of the state law and the federal rule, it is apparent that the federal rule is broad enough to cover the issue and that the two directly conflict. The federal rule explicitly provides that a pleading need not be verified or accompanied by an affidavit and allows parties discretion in deciding whether to verify pleadings. The Georgia statute, by comparison, mandates that a complaint or pleading asserting a claim must be accompanied by a verification making specific representations. See Burlington N. R.R. Co. v. Woods,
We acknowledge that Rule 11 states a pleading need not contain a verification “[u]nless a rule or statute specifically states otherwise.” Fed.R.Civ.P. 11(a). The rule’s reference to other rules or statutes, however, means other federal rules or statutes. We long ago held in Follenfant v. Rogers,
Because § 9-ll-ll.l(b)’s verification requirement conflicts with Rule 11, we must apply the federal rule unless it is invalid under the Rules Enabling Act or the Constitution. Alexander Proudfoot Co. World Headquarters L.P. v. Thayer,
Rule 11 is also valid under the Rules Enabling Act. That act authorized the Supreme Court to promulgate rules of procedure for cases in the federal district courts and courts of appeals. 28 U.S.C. § 2072(a); Woods,
Rule 11 does not abridge, enlarge, or modify any substantive rights simply because application of that rule instead of § 9-11-11.1(b) will mean that the Appel-lees’ lawsuit will go forward against Harris. In Hanna, the Supreme Court confronted a similar situation when it held that the federal rule governing service of process applied to a lawsuit rather than the contrary Massachusetts rule under which the lawsuit would not have been properly commenced. See Hanna,
In addition, it is irrelevant to our Rules Enabling Act analysis that § 9-11-11.1 may have been enacted for substantive or important purposes, such as safeguarding First Amendment rights or deterring abusive filings, because the state legislature’s objectives “cannot override the statute’s clear text.” Shady Grove,
Furthermore, because the Georgia anti-SLAPP statute seeks to achieve its objectives through a verification requirement, the instant case is distinguishable from the cases considered by other circuits that have found state anti-SLAPP laws applicable in federal court. For instance, in United States ex rel. Newsham v. Lockheed Missiles & Space Co., Inc.,
In Henry v. Lake Charles American Press, LLC,
In Godin v. Schencks,
Georgia’s anti-SLAPP statute is distinct from the anti-SLAPP statutes of California, Louisiana, and Maine in that it attempts to effectuate its deterrent purpose through a verification requirement. The California, Louisiana, and Maine provisions do not require a complaint to be verified, and the courts of appeals considering those statutes were therefore not presented with a potential conflict between the state laws and Rule 11. Compare Cal. C.C.P. § 425.16, and La.Code Civ. Proc. Ann. art. 97, and Me.Rev.Stat. tit. 14, § 556, with O.C.G.A. § 9-11-11.1. Accordingly, the First, Fifth, and Ninth Circuits had no occasion to address the question we consider in this case. In addition, unlike the First and Ninth Circuits, because we conclude a valid federal rule controls the question before us, we do not reach the second Hanna prong and thus do not wade into Erie’s murky waters. See Shady Grove,
In sum, Rule ll’s discretionary rule regarding the verification of pleadings answers the question in this case, does not transgress either the terms of the Rules Enabling Act or the Constitution, and is valid and controlling in federal cases arising under the district court’s diversity jurisdiction.
IV. CONCLUSION
For the foregoing reasons, we conclude we have jurisdiction to consider Harris’s appeal, and we hold that O.C.G.A. § 9 — 11— ll.l(b)’s verification requirement does not apply in diversity cases in federal court. Accordingly, the district court’s order is AFFIRMED.
Notes
. In Bonner v. City of Prichard,
. Although the district court concluded § 9-11 — 1 l.l(b)'s verification requirement is inconsistent with Federal Rule of Civil Procedure 8(a), we may affirm the district court's decision on any ground supported by the record, even if that ground was not relied on or considered by the district court. Kernel Records Oy v. Mosley,
Concurrence Opinion
concurring.
I concur in Parts I, II, and III.A of Judge Black’s opinion for the Court. As to Part III.B, I concur in the judgment because we are bound by Follenfant v. Rogers,
The “initial step” in “resolving conflicts between state law and the Federal Rules” is to “determine whether, when fairly construed, the scope of [the] Federal Rule ... is ‘sufficiently broad’ to cause a ‘direct collision’ with the state law or, implicitly, ‘control the issue’ before the court, leaving no room for the operation of that law.” Burlington Northern R. Co. v. Woods,
In relevant part, Rule 11(a) provides that “[ujnless a rule or statute specifically states otherwise, a pleading need not be verified or accompanied by an affidavit.” The text of Rule 11(a) is not confined to federal rules or statutes that require verification, and “it is the Rule itself, not the Advisory Committee’s description of it, that governs.” Wal-Mart Stores, Inc. v. Dukes, — U.S. —,
But even if Rule 11(a) were ambiguous — because it is arguably unclear whether the phrase “a rule or statute” refers only to federal rules and statutes or to both federal and state rules and statutes— the result would be the same. The Supreme Court has said that “we should read an ambiguous Federal Rule to avoid ‘substantial variations [in outcomes] between state and federal litigation.’ ” Shady Grove Orthopedic Associates, P.A. v. Allstate Ins. Co.,
In sum, I agree with Judge Fitzpatrick’s conclusion in Int’l Brominated Solvents Association v. American Conference of Governmental Industrial Hygienists, Inc., No. 5:04 CV 394(DF),
