USA WASTE OF CALIFORNIA, INC., Cross-complainant and Respondent, v. CITY OF IRWINDALE, Cross-defendant and Appellant.
No. B212719
Second Dist., Div. Five
Apr. 26, 2010
184 Cal. App. 4th 53
MOSK, J.
Aleshire & Wynder, Fred Galante and Anthony R. Taylor for Cross-defendant and Appellant.
Slovak, Baron & Empey and Shaun M. Murphy for Cross-complainant and Respondent.
OPINION
MOSK, J.---
INTRODUCTION
Cross-defendant and appellant City of Irwindale (City) appeals from the denial of its motion to strike cross-complainant and respondent USA Waste of California, Inc.‘s (USA Waste) second amended cross-complaint under the anti-SLAPP (strategic lawsuit against public participation) statute,
BACKGROUND2
In about 1988, United Rock Products Corporation (United Rock), an operator of sand and gravel quarries in the City, acquired an open sand and
In about 2002, United Rock began to backfill Pit No. 1 in accordance with the approved Reclamation Plan. Disputes arose between the City and United Rock, and litigation ensued. In February 2002, United Rock and the City entered into a “Standstill and Tolling Agreement” that stayed the litigation and resolved some of the parties’ disputes. The Standstill and Tolling Agreement describes the permissible “fill” of Pit No. 1 and provides for a compaction rate of 90 percent or less as follows:
“The permissible fill material and compaction standards for Quarry No. 1 shall be the following: Inert material, 90% bulk density soil compaction or such lesser percent as may be approved by the City Engineer which is considered engineered and suitable for development. Appropriate inert material shall be bulk fill material, including crushed or broken concrete, bituminous concrete and other material which arises from the excavation of roads, bridges, soil or rock and that does not contain contaminates (materials which are potentially harmful to human health or the environment). Inert materials shall only be those materials permitted by state law.” (Italics added.)
During the time that United Rock backfilled Pit No. 1, it submitted reports to the City representing that it was backfilling Pit No. 1 according to the relevant requirements, including the 90 percent compaction rate. In about September 2004, JH Properties, Inc., purchased Pit No. 1 from United Rock and assigned Pit No. 1 to Irwindale Partners. As part of the assignment, Irwindale Partners agreed to be bound by various requirements concerning the backfilling of Pit No. 1, including those in the Reclamation Plan and the Standstill and Tolling Agreement.
On December 20, 2005, the Irwindale City Council approved by resolution the Irwindale Backfill Committee‘s Guidelines for Above-Water Backfilling of Open-Pit Mines (Guidelines). The Guidelines were “based on the premise that the backfilled mine sites will be developed into higher-value commercial projects such as office buildings, warehouses, light manufacturing facilities, automobile dealers, restaurants, hotels, and consumer retail outlets.” The Guidelines contained detailed backfilling requirements designed to ensure the sites would support commercial building. The requirements exceeded the requirements in the Reclamation Plan and the Standstill and Tolling Agreement, and included a higher compaction rate of 93 percent.
In 2006, the City informed USA Waste that the Guidelines, including the 93 percent compaction rate, applied to Pit No. 1. The City stated that Pit No. 1 had to be backfilled in a manner that permitted the placement of a building on the finished site, even though the Reclamation Plan and the Standstill and Tolling Agreement did not so provide.
USA Waste contended that the Guidelines did not apply to Pit No. 1, but agreed to pay for engineering tests to determine whether Pit No. 1 was being filled in compliance with the Reclamation Plan. After the testing was complete, the City stated that Pit No. 1 had the following deficiencies:
“A. The United Rock portion of the fill was unacceptable because it did not meet the 90% compaction rate.
“B. The United Rock portion of the fill was unacceptable because it did not meet the new, tougher standards set forth in the Guidelines and did not meet the City‘s new goal that the fill ultimately be ‘developable.’
“D. Two areas out of the six areas tested in the USA Waste portion of the fill did not meet the 90% compaction requirement.”
In 2007, USA Waste agreed to remediate its backfill in Pit No. 1 to meet the 90 percent compaction rate in the Standstill and Tolling Agreement and presented proposals for such remediation and certification. The City rejected USA Waste‘s offer because such efforts by USA Waste would be meaningless unless United Rock‘s portion of the backfill also was remediated and because USA Waste‘s proposals did not meet the Guidelines’ standard that the backfill be compacted to 93 percent and be developable.
On June 1, 2007, the City issued a notice of violation (NOV) to JH Properties, Inc., Irwindale Partners, and USA Waste alleging that they were in violation of the filling standards applicable to Pit No. 1. The NOV alleged that the backfilling of Pit No. 1 failed to meet the standards that the fill be compacted at “no less than 90%” and be “suitable for industrial or commercial/office use.” (Italics added.)
On September 12, 2007, Irwindale Partners brought an action for declaratory relief against United Rock and USA Waste seeking an adjudication of the parties’ legal rights and duties arising out of USA Waste‘s backfilling operations at Pit No. 1 and subsequent actions of the City. On January 24, 2008, USA Waste filed a cross-complaint against Irwindale Partners and the City. On February 28, 2008, it filed its first amended cross-complaint. On September 8, 2008, it filed its second amended cross-complaint.
In the second amended cross-complaint USA Waste alleged causes of action against the City for declaratory relief, breach of contract (the Standstill and Tolling Agreement), and equitable estoppel. USA Waste alleged, “Since the issues raised by [Irwindale Partners] are inextricably intertwined with the issues raised in the NOV, USA Waste filed the Cross-Complaint in this action alleging, among other things, causes of action for Declaratory Relief, Breach of Contract, and Equitable Estoppel against the City concerning the issues and allegations set forth in the NOV.”
USA Waste further alleged in its declaratory relief cause of action that the Standstill and Tolling Agreement governs its backfilling operations at Pit No. 1, whereas the City contends that the Guidelines modify the Reclamation
USA Waste, in its breach of contract cause of action, alleged that USA Waste is a successor in interest to United Rock under the Standstill and Tolling Agreement and that the City breached that agreement by imposing backfilling standards that differ substantially from the Standstill and Tolling Agreement. USA Waste further alleged that the City indicated that it would force USA Waste to stop operations and excavate all fill in Pit No. 1 and remediate the fill in Pit No. 1 to meet the higher standards. USA Waste‘s equitable estoppel cause of action sought to estop the City from retroactively imposing backfilling requirements not in the Reclamation Plan or the Standstill and Tolling Agreement. USA Waste also sought damages against the City.
On October 20, 2008, the City filed its SLAPP motion seeking to strike USA Waste‘s second amended cross-complaint. In its SLAPP motion, the City contends that USA Waste filed its second amended cross-complaint against the City because the City issued the NOV. The trial court denied the motion, ruling that the gravamen of the causes of action alleged in the second amended cross-complaint was the City‘s action in imposing its new Guidelines and not the issuance of the NOV. The trial court ruled that the City had not met its burden of showing that the second amended cross-complaint was based on the City‘s exercise of protected activity under the anti-SLAPP statute.
DISCUSSION
The City contends that the trial court erred in denying its anti-SLAPP motion. The City argues that it engaged in protected speech in connection with an “official proceeding authorized by law,” within the meaning of
A. Relevant Legal Principles and Standard of Review
“‘A SLAPP suit---a strategic lawsuit against public participation---seeks to chill or punish a party‘s exercise of constitutional rights to free speech and to petition the government for redress of grievances. [Citation.] The Legislature enacted
“In considering the application of the anti-SLAPP statute, courts engage in a two-step process. ‘“First, the court decides whether the defendant has made a threshold showing that the challenged cause of action is one arising from protected activity. . . . If the court finds such a showing has been made, it then determines whether the plaintiff has demonstrated a probability of prevailing on the claim.“’ (Taus v. Loftus (2007) 40 Cal.4th 683, 712 [54 Cal.Rptr.3d 775, 151 P.3d 1185], ellipsis in original, quoting Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53, 67 [124 Cal.Rptr.2d 507, 52 P.3d 685] (Equilon).) ‘“‘The defendant has the burden on the first issue, the threshold issue; the plaintiff has the burden on the second issue. [Citation.]’ [Citation.]“’ [Citations.] ” (Rohde v. Wolf, supra, 154 Cal.App.4th at pp. 34-35.)
This case involves the allegation of protected speech by a government entity. The First Amendment to the United States Constitution does not apply to government speech. (Pleasant Grove City v. Summum (2009) 555 U.S. 460 [172 L.Ed.2d 853, 129 S.Ct. 1125, 1131].) Nevertheless, the California Supreme Court, in an opinion issued shortly after the United States Supreme Court‘s decision in Pleasant Grove City v. Summum, held that whether or not the First Amendment to the United States Constitution or article I, section 2 of the California Constitution directly protects government speech in the context of a SLAPP, “the statutory remedy afforded by section 425.16 extends to statements and writings of governmental entities and public officials on matters of public interest and concern that would fall within the scope of the statute if such statements were made by a private individual or entity.” (Vargas v. City of Salinas (2009) 46 Cal.4th 1, 17 [92 Cal.Rptr.3d 286, 205 P.3d 207].)
B. Applicability of Anti-SLAPP Statute
1. Not Protected Activity
The City contends that by issuing the NOV it engaged in protected speech in connection with an “official proceeding authorized by law” within the meaning of
“That a cause of action arguably may have been triggered by protected activity does not entail that it is one arising from such.” (City of Cotati v. Cashman (2002) 29 Cal.4th 69, 78 [124 Cal.Rptr.2d 519, 52 P.3d 695] (Cotati).) “[T]he statutory phrase ‘cause of action arising from’ . . .
“[A] defendant in an ordinary private dispute cannot take advantage of the anti-SLAPP statute simply because the complaint contains some references to speech or petitioning activity by the defendant. (See Paul v. Friedman [(2002)] 95 Cal.App.4th [853,] 866 [117 Cal.Rptr.2d 82] [‘[t]he statute does not accord anti-SLAPP protection to suits arising from any act having any connection, however remote, with an official proceeding‘].) . . . [I]t is the principal thrust or gravamen of the plaintiff‘s cause of action that determines whether the anti-SLAPP statute applies (Cotati, supra, 29 Cal.4th at p. 79), and when the allegations referring to arguably protected activity are only incidental to a cause of action based essentially on nonprotected activity, collateral allusions to protected activity should not subject the cause of action to the anti-SLAPP statute.” (Martinez v. Metabolife Internat., Inc. (2003) 113 Cal.App.4th 181, 188 [6 Cal.Rptr.3d 494].)
Even if the issuance of the NOV is protected speech within the meaning of section 425.16,5 the City‘s contention that the causes of action in the second amended cross-complaint are based on protected speech fails because those causes of action are not based on the City‘s issuance of the NOV. The causes of action concern whether the Reclamation Plan and the Standstill and Tolling Agreement govern the manner in which USA Waste is required to compact the fill in Pit No. 1, whether the City is bound to the Reclamation Plan and the Standstill and Tolling Agreement, and whether the City may add to or alter the requirements in the Reclamation Plan and the Standstill and Tolling Agreement through enactment of the Guidelines. That is, the “principal thrust or gravamen” of USA Waste‘s causes of action concerns the applicable compaction standards for Pit No. 1 and not the filing of the NOV. (Martinez v. Metabolife Internat., Inc., supra, 113 Cal.App.4th at p. 188.) The fact that the City‘s issuance of the NOV may have been a factor in the filing of USA Waste‘s cross-action against the City does not establish that the substantive basis for the cross-action was the issuance of the NOV. (Cotati, supra, 29 Cal.4th at p. 78.)
The City finds significant USA Waste‘s statement in the second amended cross-complaint: “Since the issues raised by [Irwindale Partners] are inextricably intertwined with the issues raised in the NOV, USA Waste filed the
USA Waste‘s claims concerning the applicability of City Resolution No. 90-19-1192 and the Guidelines to Pit No. 1 are not the types of action that are within the reach of the anti-SLAPP statute. In Graffiti Protective Coatings, Inc. v. City of Pico Rivera, supra, 181 Cal.App.4th at page 1211, the court held that the city‘s anti-SLAPP motion should be denied in connection with an action seeking to invalidate a city contract as not complying with municipal laws requiring competitive bidding. The court said, “We conclude that, even if plaintiff‘s claims involve a public issue, they are not based on any statement, writing, or conduct by the city in furtherance of its right of free speech or its right to petition the government for the redress of grievances. Rather, plaintiff‘s claims are based on state and municipal laws requiring the city to award certain contracts through competitive bidding.” In San Ramon Valley Fire Protection Dist. v. Contra Costa County Employees’ Retirement Assn. (2004) 125 Cal.App.4th 343, 355 [22 Cal.Rptr.3d 724], the court said, “there is nothing about [the County Retirement Board‘s] decision, qua governmental action, that implicates the exercise of free speech or petition.” The court added that the board “was not sued based on the content of speech it has promulgated or supported, nor on its exercise of a right to petition. The action challenged consists of charging the District more for certain pension contributions than the District believes is appropriate. This is not governmental action which is speech-related.” (Id. at p. 357.)
2. Not Public Issue or Issue of Public Interest
The City argues alternatively that if we determine that the causes of action in USA Waste‘s second amended cross-complaint are not sufficiently connected with the NOV, then “compliance with the filling standards” alleged in the second amended cross-complaint concerns “protected speech made in connection with ‘a public issue or an issue of public interest’ under Section 425.16, subdivision (e)(4).” The City is mistaken.
As we have held, the claims in question are not based on speech within the meaning of section 425.16, but even if they were, they are not protected under that statute as being in connection with “a public issue or an issue of public interest.” (
Although actions, decisions, or enforcement undertaken by a governmental entity may be in the public interest, they are not all sufficiently connected with a public issue or matter of public interest so as to be covered by the anti-SLAPP statute, even if governmental action might be subject to the anti-SLAPP statute. The essential issue in USA Waste‘s second amended cross-complaint concerns a private matter between USA Waste and
CONCLUSION
The original purpose of the anti-SLAPP statute was to protect nonprofit corporations and common citizens “from large corporate entities and trade associations” in petitioning government (see Sangster, Back SLAPP: Has the development of anti-SLAPP law turned the statute into a tool to be used against the very parties it was intended to protect? (Sept. 2003) 26 L.A. Law. 37-38). But now it has been broadened to protect large corporations and trade associations (ibid.), and even governmental entities “when such entities are sued on the basis of statements or activities engaged in by the public entity or its public officials in their official capacity.” (Vargas v. City of Salinas, supra, 46 Cal.4th at p. 17.) To extend the anti-SLAPP statute to litigation merely challenging the application, interpretation, or validity of a statute or ordinance would expand the reach of the statute way beyond any reasonable parameters.
DISPOSITION
The order is affirmed. Respondent is awarded its costs.
Kriegler, J., concurred.
TURNER, P. J., Concurring.---I concur that the burden of showing the fifth through seventh causes of action in the second amended cross-complaint has minimal merit never shifted to cross-complainant, USA Waste of California, Inc., but on slightly different grounds than my colleagues.
To begin with, the issuance of the violation notice is a written statement made in connection with an executive proceeding and an official proceeding within the meaning of
Thus, if the second amended cross-complaint sought relief in the causes of action directed at the city because it acted inappropriately in issuing or enforcing the violation notice, the burden would shift to cross-complainant to make its minimal merits showing under
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 . . . .”
The first cause of action in the second amended cross-complaint against plaintiff seeks declaratory relief. The issue that required a declaration of rights was who (plaintiff or cross-complainant) was to pay for the testing, investigation and remediation required by the city “in connection” with the violation notice. Further, the first cause of action seeks a declaration of rights “in connection” with the lease between plaintiff and cross-complainant and the violation notice. The second cause of action against plaintiff seeks contract breach damages “as a result” of the issuance of the violation notice. The third and fourth causes of action against plaintiff seek rescission and termination of the lease and damages because of the mistake of fact as to the required compaction rate and related impracticality of performance.
All of these allegations are incorporated into the fifth through seventh causes of action against the city which seek: declaratory relief concerning the standstill agreement; contract breach as to the standstill agreement; and equitable estoppel as it relates to the reclamation plan and the standstill agreement. Not a single word appears in the fifth through seventh causes of action concerning the violation notice. Cross-complainant seeks no damages from the city nor seeks any declaration of rights because of the violation notice. No doubt, material allegations in the first through fourth causes of action against plaintiff discuss damages and contractual uncertainty which result from the violation notice. And the first through fourth causes of action seek relief based in material part upon the issuance of the violation notice. But the issues before us involve the claims against the city and the language in the fifth through seventh causes of action does not challenge the violation notice. The issue is extremely close especially in the context of a liberally construed remedy. (
Appellant‘s petition for review by the Supreme Court was denied July 14, 2010, S183348.
