Opinion
Plaintiffs Angelina Morfin Vargas and Mark Dierolf sued defendants City of Salinas and city manager, David Mora (collectively City), for alleged misuse of public funds. The suit was dismissed as a SLAPP
Plaintiffs moved for attorney fees under section 1021.5, the private attorney general statute. Even though they lost on the merits, plaintiffs argued that their action was brought in the public interest and, since the Supreme Court had agreed with their legal analysis, they were “successful” for purposes of section 1021.5. City moved for attorney fees under section 425.16, subdivision (c), which provides for a mandatory award of attorney fees to a defendant prevailing on an anti-SLAPP motion.
I. Background
Plaintiffs were supporters of a ballot measure that would have repealed City’s utility tax. (Vargas I, supra, 46 Cal.4th at pp. 7, 14.) Prior to the election, City issued a report and published several articles describing the impact upon municipal services if the measure were enacted. (Id. at p. 13.) Plaintiffs sued. They alleged that the publications were campaign materials for which City may not lawfully expend public funds and not merely informational material, which may be produced at public expense. (See Stanson v. Mott (1976)
The trial court granted City’s special motion to strike under section 425.16, finding that the case arose from City’s exercise of protected speech in connection with a public issue and that plaintiffs had no probability of prevailing on the claim. Judgment was entered in favor of City. On appeal, this court rejected plaintiffs’ argument that we should examine the style, tenor, and timing of the material to determine whether it was campaign literature within the meaning of Stanson v. Mott, supra,
Following issuance of the remittitur, plaintiffs filed an unsuccessful motion for new trial. Thereafter, both sides filed motions for attorney fees. In denying
II. Contentions
There are two main issues on appeal. The first is whether, under the circumstances of this case, plaintiffs may be deemed successful parties for purposes of a section 1021.5 attorney fees award.
III. Discussion
A. The Refusal to Award Fees to Plaintiffs
Section 1021.5 is a discretionary fee-shifting provision. It provides, in pertinent part: “Upon motion, a court may award attorneys’ fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest if: (a) a significant benefit, whether pecuniary or nonpecuniary, has been conferred on the general public or a large class of persons, (b) the necessity and financial burden of private enforcement, or of enforcement by one public
The fundamental objective of the private attorney general doctrine is to encourage suits enforcing important public policies by providing substantial attorney fees to successful litigants in such cases. (Maria P. v. Riles (1987)
The preliminary consideration under section 1021.5 is the plaintiffs success. Notwithstanding the judgment against them, plaintiffs maintain that this case meets all the elements required for a section 1021.5 attorney fee award, including the requirement of success. Plaintiffs were successful, they say, because they succeeded in having Vargas I reject the “express advocacy” test. It is true that a court may find a plaintiff was successful under section 1021.5 absent a favorable final judgment, but in order to do so, the court must generally find that the plaintiff obtained relief in some other way. Under Graham v. DaimlerChrysler Corp. (2004)
B. The Award of Attorney Fees to Defendants
1. Question Presented and Standard of Review
The anti-SLAPP law was enacted to expedite the dismissal of SLAPP’s. (USA Waste of California, Inc. v. City of Irwindale (2010)
Plaintiffs assert throughout their briefs that the anti-SLAPP law does not apply to their suit against City, arguing that the government does not have a constitutional right to free speech and that section 425.17 exempts public interest suits like this one from the scope of the anti-SLAPP law. But Vargas I expressly concluded that this case is subject to the anti-SLAPP law. In particular, the Supreme Court held, “Whether or not the First Amendment of the federal Constitution or article I, section 2 of the California Constitution directly protects government speech in general or the types of communications of a municipality that are challenged here—significant constitutional questions that we need not and do not decide—we believe it is clear, in light of both the language and purpose of California’s anti-SLAPP statute, that 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 I, supra,
Although plaintiffs suggest that issues upon which the Supreme Court did not expressly rale may be raised in this appeal, the law of the case doctrine binds us to the conclusion reached in Vargas I. (De Anza Santa Cruz Mobile Estates Homeowners Ass'n v. De Anza Santa Cruz Mobile Estates (2001)
The remaining question presented is whether section 425.16, subdivision (c), infringes a plaintiff’s constitutional right of petition by providing for mandatory fee awards to prevailing government defendants. Plaintiffs maintain that the right of petition, as exercised in a lawsuit against the government, is entitled to special protection that does not extend to lawsuits against private parties. Because it is a constitutional issue, our review is de novo.
2. The Right of Petition
The right to petition the government for redress of grievances is protected by both the federal and state Constitutions. (U.S. Const., 1st Amend.; Cal. Const, art. I, § 3.) The right includes the right to petition the executive or legislative branches directly. As pertinent here, the right has also been construed as encompassing the right to petition the judicial branch for resolution of legal disputes. (California Transport v. Trucking Unlimited (1972)
While the right of petition “is accorded ‘a paramount and preferred place in our democratic system’ ” (City of Long Beach v. Bozek (1982)
Equilon Enterprises v. Consumer Cause, Inc. (2002)
3. The Noerr-Pennington Doctrine
Plaintiffs maintain that even if there is no constitutional problem when applied to suits against private parties, which was the case in Equilon, suits against the government are entitled to special protection. According to plaintiffs, SLAPP suits against government defendants should not be subject to a mandatory award of attorney fees unless they fit the “sham” exception to the Noerr-Pennington doctrine.
“The Noerr-Pennington doctrine is a broad rule of statutory construction, under which laws are construed so as to avoid burdening the constitutional right to petition.” (Tichinin v. City of Morgan Hill (2009) 177 Cal.App.4th 1049, 1064 [
We are bound by Equilon. (Auto Equity Sales, Inc. v. Superior Court (1962)
4. The Constitutionality of Section 425.16, Subdivision (c) as Applied to Government Defendants
Regardless of whether the Noerr-Pennington doctrine is directly applicable, plaintiffs argue that, given the paramount importance of the right to petition the government for redress of grievances, a SLAPP suit against a government defendant should not be subject to a mandatory award of attorney fees unless it fits the “sham” exception to the Noerr-Pennington doctrine, namely, that it is objectively baseless and improperly motivated. Amici curiae urge us to impose an objectively baseless standard. “Objectively baseless,” within the meaning of the Noerr-Pennington doctrine, means that “no reasonable litigant could realistically expect success on the merits.” (Professional Real Estate, supra,
Plaintiffs argue that since the statutory remedies to which Bozek referred were sections 128.5 and 1021.7, both of which require proof of bad faith, Bozek implicitly requires proof that a lawsuit is a sham before a government defendant may recoup its attorney fees. Bozek does not reach that far. Bozek involved allegedly malicious or bad faith litigation for which the city was seeking a remedy. The court had no occasion to decide whether the government is entitled to its fees in any other case. We do not dismiss the notion that a fee-shifting clause can discourage the filing of some lawsuits. Indeed, that is precisely what such clauses are frequently designed to do. But to the extent section 425.16, subdivision (c) imposes an incidental restriction upon legitimate petitioning rights, it is warranted by the governmental interests involved.
The tests used to evaluate the constitutionality of a law restricting the right to petition are drawn from the free speech cases. In Mejia v. City of Los Angeles (2007)
The only published case directly considering the issue before us is Schroeder, supra,
There is no dispute that enactment of section 425.16, subdivision (c) was within the Legislature’s constitutional power or that the subdivision is not a direct restriction upon the right to petition. And it is justified by two substantial governmental interests. One interest is the government’s right to be reimbursed for the cost of defending meritless suits, which was the interest at issue in Bozek, supra,
Plaintiffs and amici curiae argue that the goal of discouraging SLAPP’s is not as compelling in the case of a government defendant as it is in the case of private defendants. This is so, they say, because the First Amendment does
Plaintiffs are correct that the First Amendment does not explicitly grant the government the right to speak.
Although the government’s right to speak is a concept that has yet to be fully developed by the United States Supreme Court (Corbin, Mixed Speech: When Speech is Both Private and Governmental (2008) 83 N.Y.U. L.Rev. 605, 611 (Corbin)), it suffices for present purposes to observe that the government certainly has the freedom to speak. “Indeed, it is not easy to imagine how government could function if it lacked this freedom. ‘If every citizen were to have a right to insist that no one paid by public funds express a view with which he disagreed, debate over issues of great concern to the public would be limited to those in the private sector, and the process of government as we know it radically transformed.’ Keller v. State Bar of Cal,
Under section 425.16, subdivision (c), the plaintiff will be required to pay the government’s attorney fees only if the plaintiff cannot demonstrate that the complaint “is legally sufficient and supported by a sufficient prima facie showing of facts to sustain a favorable judgment if the evidence submitted by the plaintiff is credited.” (Wilcox v. Superior Court (1994)
Section 425.16, subdivision (c) is no broader than necessary to advance these significant governmental interests. Requiring a finding that the suit was objectively baseless or improperly motivated before a prevailing government
Citing USA Waste, supra,
In Graffiti Protective Coatings, the plaintiff had sued the city for its failure to use a competitive bidding process in awarding a painting contract. The appellate court held that the anti-SLAPP law did not apply because the case was based upon the city’s conduct of the bidding process, which was not activity to which the anti-SLAPP laws applied. “Were we to hold otherwise, we ‘would significantly burden the petition rights of those seeking mandamus review for most types of governmental action.’ ” (Graffiti Protective Coatings, supra,
USA Waste reached a similar conclusion in a suit challenging the city’s application of its land use guidelines. After rejecting the city’s contention that the suit was subject to the anti-SLAPP law, the appellate court concluded: “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 [citation]. But now it has been broadened to protect large corporations and trade associations [citation], and
Plaintiffs argue that in order to address the concerns expressed in USA Waste and Graffiti Protective Coatings, fee awards to government defendants should be contingent upon additional findings beyond just lack of merit. The argument misses the point of these two cases. USA Waste and Graffiti Protective Coatings merely apply the substantive limitations of the antiSLAPP law to cases involving public entity defendants. In other words, these cases describe situations that fall outside the scope of the anti-SLAPP statute. Section 425.16, subdivision (c) applies only to suits that fall within the scope of the anti-SLAPP statute.
In sum, the government has an interest in speaking out on issues of public concern and in being free of the costs of defending meritless lawsuits aimed at infringing the government’s free speech activities. Section 425.16, subdivision (c) protects the government’s interests by shifting the cost of defending such suits to the plaintiff. If the subdivision chills legitimate petitioning activity, it is merely incidental to and outweighed by the significant governmental interests the statute is designed to protect. Accordingly, section 425.16, subdivision (c) is not an unconstitutional infringement of the right of petition when applied in cases against the government.
5. The Amount of the Fee Award
(a) Fees for the Work of Associate Counsel
Plaintiffs maintain that the trial court erred in awarding the same hourly rate for both senior appellate counsel and associate appellate counsel and, as a result, the attorney fee award should be reduced by $30,069.90. We are unable to decipher plaintiffs’ reasoning. Plaintiffs’ argument contains several arithmetical calculations based upon an understanding of the fee award that plaintiffs fail to explain. Plaintiffs have not directed us to where in the record we may find the figures upon which they rely. Given the absence of comprehensible argument and citation to the pertinent record we treat the point as waived. (Colt v. Freedom Communications, Inc. (2003)
Plaintiffs argue that under section 425.16, subdivision (c), City is entitled only to fees incurred in connection with the section 425.16 motion, and not to fees incurred by opposing plaintiffs’ attorney fees motion under section 1021.5. Plaintiffs rely upon Lafayette Morehouse, Inc. v. Chronicle Publishing Co. (1995)
Plaintiffs also argue that City waived its right to attorney fees for opposing plaintiffs’ attorney fees motion because City only raised the issue in a supporting declaration. The declaration was more than adequate, setting forth all the work counsel’s office had performed and concluding, “In addition, we have spent and will further spend [time] addressing Plaintiffs’ motion to recover their attorneys’ fees in this matter, [f] I will submit a Supplemental Declaration with the City’s reply papers on its motion for an award of attorneys’ fees and costs, detailing the hours spent and fees incurred in connection with its motion for attorneys’ fees and Plaintiffs’ motion . . . .” There was no waiver.
(c) Costs
Plaintiffs challenge the costs designated in City’s papers as “Costs to File Briefs and Other Papers: $231.96 (Rule 8.278, subd. (d)(1)(D))” on the ground it was not a filing fee but, as counsel admitted orally, was the charge for delivering briefs to the Supreme Court. California Rules of Court, rule 8.278(d)(1)(D) lists as an acceptable cost the cost to serve, mail and file briefs. The trial court did not err in allowing this cost.
The trial court’s order granting defendants’ motion for attorney fees and denying plaintiffs’ motion for attorney fees is affirmed. Defendants are entitled to their costs on appeal.
Rushing, R J., and Elia, J., concurred.
A petition for a rehearing was denied December 12, 2011, and the petition of plaintiffs and appellants for review by the Supreme Court was denied February 29, 2012, S198996. Baxter, J., was of the opinion that the petition should be granted.
Notes
SLAPP is an acronym for strategic lawsuit against public participation. (Jarrow Formulas, Inc. v. LaMarche (2003)
Further unspecified section references are to the Code of Civil Procedure.
Section 425.16, subdivision (c)(1) provides in full: “Except as provided in paragraph (2), 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
Eastern R. Conf. v. Noerr Motors (1961)
We have received and considered two amicus curiae briefs in support of plaintiffs. One brief is filed by Californians Aware, First Amendment Project, and First Amendment Coalition, and the other by Center for Constitutional Jurisprudence, Libertarian Law Council, and Reason Foundation. We appreciate the cogent analyses presented in both briefs and have addressed the principal arguments raised within the discussion that follows.
In connection with the section 1021.5 motion, plaintiffs’ counsel moved to intervene on the ground that his fee agreement with plaintiffs entitled him to any attorney fees that might be awarded in plaintiffs’ favor. The trial court did not expressly rule on the motion to intervene and counsel argues on appeal that this was error. We need not consider the argument beyond noting that, since we affirm the trial court’s order denying the section 1021.5 motion, counsel was not prejudiced by the lack of a ruling on the intervention motion.
Plaintiffs were not wholly successful in their legal argument, either. The Supreme Court rejected plaintiffs’ contention that material is campaign material if it fails to present a neutral analysis of the pending ballot measure. Vargas I agreed with those appellate decisions “that explicitly have held that Stanson [v. Mott, supra,
We summarily dispose of City’s argument that plaintiffs have waived or are estopped from raising the constitutional argument because they failed to raise it in opposition to a previous attorney fees motion. “The sine qua non of estoppel is that the party claiming it relied to its detriment on the conduct of the party to be estopped.” (Orange County Water Dist. v. Association of Cal. Water etc. Authority (1997)
By its terms, the free speech clause of the First Amendment is a direct restriction of government power: “Congress shall make no law . . . abridging the freedom of speech . . . .” (U.S. Const., 1st Amend.)
“The government’s ability to say what it likes is not absolute. Although free speech commentators still debate the degree to which the government should be able to weigh in with its own viewpoint in the marketplace of ideas, especially on controversial topics like abortion,
Plaintiffs’ list of issues includes alleged error related to evidence of settlement discussions but their brief does not contain any argument on the point. Accordingly, we do not consider it. (Berger v. California Ins. Guarantee Ass'n (2005)
