Yaroslav LOZOVYY, Plaintiff-Appellant v. Richard L. KURTZ; Thomas R. Klei, Defendants-Appellees.
No. 15-30086.
United States Court of Appeals, Fifth Circuit.
Dec. 29, 2015.
813 F.3d 576
Michael A. Patterson, Susan Brooke Barnett-Bernal, Sharon S. Whitlow (argued), Long Law Firm, L.L.P., Baton Rouge, LA, for Defendants-Appellees.
Before BENAVIDES, DENNIS, and COSTA, Circuit Judges.
FORTUNATO P. BENAVIDES, Circuit Judge:
This appeal involves the application of
I. BACKGROUND
From 2001 to 2012, Plaintiff-Appellant Yaroslav Lozovyy (“Lozovyy“) was employed by Louisiana State University at the J. Bennett Johnston Sr. Center for Advanced Microstructures & Devices (“CAMD“) on an annual renewable-contract basis. Lozovyy worked as a research assistant, cоntributing to CAMD‘s study and development of potential alternative energy sources. During the course of Lozovyy‘s employment at CAMD, he had considerable contact with Peter Dowben (“Dowben“), a physics and astronomy professor at the University of Nebraska-Lincoln. Dowben and Lozovyy frequently collaborated on academic papers, publishing over two dozen together, and they often corresponded via email to share strategies for navigating inter-office politics. Dowben also wrote to CAMD representatives on Lozovyy‘s behalf severаl times; for instance, in 2010 Dowben wrote a long email to CAMD‘s interim director Richard L. Kurtz (“Kurtz“) about the apparent “poor quality” of recent CAMD research, arguing that it was “not a problem that [could] be laid at the feet of Yaroslav Lozovyy specifically.” Another time, Dowben wrote to an LSU professor and CAMD collaborator about Lozovyy‘s various contributions to CAMD‘s work, noting that Lozovyy had been going above and beyond his job description “as a good citizen” without “any appreciable benefits.”
In April of 2012, a decision was made not to renew Lozovyy‘s contract with CAMD, effectively terminating his employment at LSU. Lozovyy sent an email on June 28, 2012 suggesting that he had heard a “rumor . . . at LSU” that he “stole” CAMD data and “Dr. Kurtz was forced to fire” him as a result. Dowben subsequently contacted Kurtz and demanded an explanation for Lozovyy‘s termination, insisting that Lozovyy be allowed to return. In July of 2012, a conference call was held at Dowben‘s request to discuss Lozovyy‘s termination, among other things. The participants in the call were Dowben, Kurtz, LSU Vice Chancellor for Research and Economic Development Thomas R. Klei (“Klei“), Associate Vicе Chancellor Kalliat T. Valsaraj (“Valsaraj“), CAMD Scientific Director John Scott (“Scott“), and Prem Paul and Greg Snow of the University of Nebraska-Lincoln. Lozovyy alleges that during the conference call, Kurtz and Klei falsely stated that Lozovyy had been terminated for stealing and/or destroying CAMD data.
Based on the statements allegedly made during the conference call, Lozovyy sued Kurtz and Klei (collectively, “Defendants“) for defamation on July 1, 2013. After conducting discovery for over a year and twice having joint motions to extend discovery deadlines denied by a magistrate judge, Defendants filed a special motion to strike under
On July 24, 2014, the district court issued a notice to the parties that the special motion to strike would be converted to a motion for summary judgment, and Defendants would have 14 days to supplement their motion as appropriate for one for summary judgment. Defendants supplemented their motion on August 7, 2014, maintaining in the alternative that a special motion to strike was available to them under Louisiana law. On December 17, 2014, the district court issued another notice to counsel indicating that, upon reconsideration, Dеfendants’ motion would be treated as a special motion to strike under In the court‘s written order, it first noted that Article 971 could properly be applied in federal court, although “neither party ha[d] raised the issue.” The court then based its decision to grant the motion on its view that “the burden imposed by Article 971 is greater than . . . the burden of the non-movant on a motion for summary judgment,” and it indicated in a footnote that “if the ordinary summary judgment standard applied, . . . Peter Dowben‘s declaration would be enough, by itself, to defeat [the] motion . . . and create an issue of faсt for trial.” On the affidavits presented, the court concluded that Defendants’ evidence “east[ ] doubt on the credibility of . . . Mr. Dowben,” and thus “[i]f any weighing of evidence is required by Article 971, and the Fifth Circuit appears to require this, then Plaintiff loses.” The district court accordingly entered judgment dismissing Lozovyy‘s claim with prejudice on February 9, 2015. Lozovyy now appeals, arguing that (1) the motion and hearing were untimely, and (2) the district court misapplied Article 971‘s dismissal standard. [a] cause of action against a person arising from any act of that person in furtherance of the person‘s right of рetition or free speech under the United States or Louisiana 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 a probability of success on the claim. Lozovyy challenges the district court‘s grant of Defendants’ special motion to strike on two primary bases: first, Lozovyy argues that the motion and hearing did not comply with the timing provisions of Article 971, and second, Lozovyy insists that the court misapplied Article 971‘s “probability of success” standard when it apparently weighed conflicting affidavits and granted the motion despite the existence of a genuine dispute of material fact.2 We address Lozovyy‘s timeliness arguments first, and we then discuss the meaning of Article 971‘s dismissal provision.3 As noted above, Article 971 provides that special motions to strike under its auspices “may be filed within ninety days of service of the petition, or in the court‘s discretion, at any later time upon terms the court deems proper.” With respect to filing, Lozovyy cites no state-law authority for the рroposition that Defendants were required to seek leave of court in order to file their motion beyond ninety days. Rather, Lozovyy simply cites to cases where trial courts refused to consider Article 971 motions brought after the ninety day deadline. But these citations miss the point, which is that the decision whether to allow late motions is discretionary under 971(C)(1). Cases do exist where litigants have waited too long and trial courts have declined to exercise their 971(C)(1) discretion; but cases also exist where courts have allowed such motions to proceed. See, e.g., BCCL Enter., Inc. v. Rizzo, Nо. 2013 CA 1624, 2014 WL 4102467, at *2 (La.Ct.App. 1st Cir. Aug. 20, 2014). Ultimately, the broad, discretionary language of the statute “plainly allows a district judge to determine when a motion is timely filed.” Hampton-Stein v. Aviation Fin. Grp., LLC, 472 Fed.Appx. 455, 457 (9th Cir. 2012) (upholding a district court‘s decision to allow a late-filed motion under California‘s almost-identical anti-SLAPP statute). With respect to the timeliness of the hearing on the motion, Louisiana appellate court precedent conclusively forecloses Lozovyy‘s argument. In Aymond v. Dupree, a special motion to strike was filed in April of 2005, and the trial court scheduled the hearing on the motion, as well as two other motions, for July 12, 2005. 928 So.2d 721, 731 (La.Ct.App. 3d Cir.2006). The Louisiаna Third Circuit Court of Appeals held that this scheduling was permissible despite the thirty day language of Article 971, because the judge had been appointed ad hoc to hear the case and it was therefore “in the interest of judicial economy” for all motions to be heard “on the same date.” Id. The court also rejected the argument that the trial court should have listed specific “docket conditions” warranting the late hearing; the appellate court reasoned that had the legislature intended to require “oral or written reasons from the court еxplaining the court‘s deviation from the thirty-day scheduling provision, the legislature would have included a mandate for same. There is no such mandate.” Rather, “the article itself allows deviation from the” thirty day provision, and this provision “is broadly stated.” Id. As such, the court concluded that appellant‘s argument was “without merit.” Id. While Lozovyy dismisses the discussion in Aymond as “dicta” because the issue Lozovyy‘s primary contention on appeal is that the district court applied Article 971‘s “probability of success” dismissal standard incorrectly. Ruling on a special motion to strike under Article 971 involves a “burden-shifting analysis for weeding out frivolous claims.” Henry v. Lake Charles Am. Press, L.L.C., 566 F.3d 164, 170 (5th Cir.2009). The defendant-movant must first make a prima facie showing that Article 971 covers the speech or activity at issue—i.e. that the act sued upon was taken “in furtherance of the . . . right of petition or free speech under the United States or Louisiana Constitution in connection with a public issue.” Starr, 978 So.2d at 388-89. Once a prima facie showing is mаde, the burden shifts to the plaintiff to demonstrate a “probability of success” on his claim. Id. at 389. If the plaintiff demonstrates a “probability of success,” “the trial court denies the [special] motion and the suit proceeds as it normally would“; if the plaintiff fails to demonstrate a “probability of success,” the trial court dismisses the claim. Henry, 566 F.3d at 170. Lozovyy argues that the district court in this case, in ruling that Lozovyy had failed to demonstrate a “probability of success” on his defamation claim, applied Article 971 in a manner that directly conflicts with Assuming Article 971 properly applies in federal court, however, we are faced with the question of whether the district court applied the “probability of success” standard correctly as a matter of Louisiana law. Lozovyy forcefully and repeatedly argued to the court below that Louisiana courts treat Article 971 motions in the same mannеr as motions for summary judgment, foregoing credibility determinations and evidence-weighing and asking simply whether a genuine dispute of material fact exists. Nevertheless, the district court ultimately determined that Article 971 permits courts to weigh evidence and make credibility assessments in order to essentially resolve disputed issues of material fact before trial. Because we believe that Louisiana law would not sanction such a result, we must reverse the district court‘s judgment. In his briefing, Lozovyy relies heavily on a federal district court opinion from the Eastern District of Louisiana in whiсh the court undertook “a thorough review of the Louisiana cases interpreting [A]rticle 971” and concluded that in almost every instance “when Louisiana courts have found disputed issues of material fact, they have found that a special motion to strike should not be granted.” Louisiana Crisis Assistance Ctr. v. Marzano-Lesnevich, 827 F.Supp.2d 668, 679 (E.D.La.2011), vacated on other grounds, 878 F.Supp.2d 662 (E.D.La.2012). Our own review of Louisiana caselaw leads us to a similar conclusion. As a starting point, the Louisiana First, Second, and Third Circuit Courts of Appeal have all referred to Article 971 motions as “akin to [ ] motion[s] for summary judgment.” Hakim v. O‘Donnell, 144 So.3d 1179, 1190 n. 5 (La.Ct.App. 2d Cir. 2014); Hebert v. La. Licensed Prof‘l Vocational Rehab. Counselors, 4 So.3d 1002, 1010 (La.App. 3d Cir.2009); Lamz v. Wells, 938 So.2d 792, 796 (La.Ct.App. 1st Cir.2006). Most tellingly, Louisiana‘s Second Circuit has treated the Article 971 “probability of success” dismissal standard as effectively interchangeable with the standard for summary judgment under Louisiana law and has rejected the notion that either standard allows judges to weigh credibility. See Bradford v. Judson, 12 So.3d 974, 983 (La.Ct.App. 2d Cir.2009). In Bradford, the plaintiff sued the defendant over an email stating that the plaintiff had taken certain proceeds illegally. Id. at 981. The trial court granted defendant‘s motions for summary judgment and special motions to strike, and the appellate court reversed after conducting a thorough analysis of Louisiana‘s summary judgment standard and defamation law. See id. at 977, 982. The court explained that the determinаtion of whether to grant summary judgment requires an assessment of whether there is a “genuine” or “triable” issue of “material fact,” with “material fact” denoting a fact “the existence or This approach to Article 971 is consistent with the approach that California courts have taken in applying their “virtually identical” anti-SLAPP statute. Baxter v. Scott, 847 So.2d 225, 231-32 (La.Ct.App. 2d Cir.2003), vacated on other grounds, 860 So.2d 535 (La.2003). Courts of appeal in California have repeatedly held that the state‘s anti-SLAPP dismissal provision, which requires a non-movant to demonstrate a “probability of prevailing,” entails only a determination “that the complaint is both legally sufficient and supported by a sufficient prima facie showing of facts to sustain a favorable judgment.” D‘Arrigo Bros. of Cal. v. United Farmworkers, 224 Cal.App.4th 790, 169 Cal.Rptr.3d 171, 178 (6th Dist.2014). Notably, a court is not permitted to “weigh credibility [or] compare the weight of the evidence” in making this determination. Id. Moreover, California courts have consistently concluded that motions to dismiss under the state‘s anti-SLAPP provision should not be granted when material fact issues exist. See, e.g., GetFugu, Inc. v. Patton Boggs LLP, 220 Cal.App.4th 141, 162 Cal.Rptr.3d 831, 841 (2d Dist.2013) (holding that “opposing declаrations, by disputing” the falsity of the relevant statements, precluded dismissal). Because Louisiana courts have recognized the similarity between Article 971 and California‘s anti-SLAPP statute and have looked to California precedent in interpreting Louisiana‘s provisions, this caselaw is persuasive in predicting how the Louisiana Supreme Court would construe Article 971‘s “probability of success” standard.5 See, e.g., Baxter, 847 So.2d at 231-32. In short, a review of Louisiana caselaw—coupled with the recognition that Louisiana courts have relied on California‘s interpretation of its nearly identicаl anti-SLAPP provision in the past—leads us to believe that the Louisiana Supreme Court would decline to read Article 971‘s “probability of success” standard as permitting courts to assess credibility or weigh evidence in order to resolve disputed issues of material fact before trial.6 Nevertheless, Defendants argue that Article 971‘s “probability of success” standard was meant to codify a special, more stringent summary judgment burdеn that formerly applied to non-movants in Louisiana defamation cases, and they cite the Louisiana Supreme Court‘s opinion in Sassone v. Elder for this proposition. 626 So.2d 345, 351 (La.1993). Sassone, however, did not hold that defamation claims should be subject to a summary judgment standard that permits courts to weigh evidence and resolve disputed fact issues. Rather, the court in Sassone simply determined that defamation claims would not be subject to the unique standard for summary judgment in non-defamation cases that applied under Louisiana law at the time.7 See id. at 351-52. Put another way, Sassone was, if anything, merely a recognition that Louisiana‘s special summary judgment standard, which reflеcted a “strong preference for full trial on the merits,” did not apply to defamation claims “because of the constitutional considerations in such cases.” Id. at 352. This reading of Sassone is supported by the fact that Louisiana‘s distinct summary judgment standard for non-defamation claims was “legislatively overruled” by sarily inconsistent with our holding today. In Brandner, for instance, the court‘s conclusion rested largely on the fact that Plaintiff‘s affidavit conflicted with his own handwritten records that he attached to the affidavit. 2014 WL 7332206, at *12. Furthermore, to the extent that Brandner or a select few other cases can be read as permitting courts to resolve material factual disputes by weighing conflicting evidence, we are nevertheless persuaded that the weight of Louisiana authority supports our conclusion (and would lead the Louisiana Supreme Court to reach a consistent result). See Rogers v. Ash Grove Cement Co., 799 So.2d 841, 849 (La.Ct.App. 2d Cir. 2001) (Brown, J., dissenting) (lamenting the majority‘s failure to address Article 971 and noting thаt because “Article 971‘s intent and purpose [are] the same as a summary judgment motion,” denial of an Article 971 motion “obviously” means that “there [are] material issues of fact“). In sum, we believe the Louisiana Supreme Court would recognize that Article 971‘s “probability of success” standard does not permit courts to weigh evidence, assess credibility, or resolve disputed issues of material fact. Thus, when the district court in this case granted dismissal based оn its assessment of the credibility of the parties’ affidavits and despite its acknowledgment that a triable fact issue existed, the court applied Article 971 in a manner that is contrary to Louisiana law. For the foregoing reasons, we REVERSE the judgment of the district court and REMAND for further proceedings.II. APPLICABLE LAW
III. DISCUSSION
A. Timeliness of the Special Motion to Strike and Hearing
B. Application of Article 971‘s Dismissal Provision
IV. CONCLUSION
