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FRANK DU CHARME, Plaintiff and Respondent,
v.
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL
45 et al., Defendants and Appellants.
No. A097898
In the Court of Appeal of the State of California
First Appellate District
Divison Two
(San Mateo County Super. Ct. No. 405867)
San Mateo Superior Court, Hon. Rosemary Pfeiffer
COUNSEL
Jeffrey B. Demain, Altshuler, Berzon, Nussbaum, Rubin
& Demain; Sue D. Gunter, Sherman, Dunn Cohen, Leifer &
Yellig, P.C.; Michael Posner, Posner & Rosen LLP, for Appellant.
Roderick P. Bushnell, Bushnell, Caplan & Fielding, LLP,
for Respondent.
Filed July 3, 2003
INTRODUCTION
The International Brotherhood of Electrical Workers,
Local 45 (Local 45), the International Brotherhood of Electrical
Workers (IBEW), and Cecil Wynn (collectively, defendants), appeal
from an order denying their special motion to strike Frank Du
Charme's defamation claim against them. They contend the trial
court erred in ruling they had not satisfied the criteria of
the anti-SLAPP (strategic lawsuits against public participation)
statute (Code Civ. Proc., 425.16 [section 425.16]; see Equilon
Enterprises v. Con sumer Cause, Inc. (2002) 29 Cal.4th 53,
57), and consequently failing to award them attorney fees ( 425.16,
subd. (c)).
BACKGROUND
On August 11, 1998, Du Charme sued Local 45, the IBEW
and Cecil Wynn for breach of contract and of the covenant of
good faith and fair dealing, wrongful termination in violation
of public policy ( Tameny v. Atlantic Richfield Co. (1980)
27 Cal.3d 167), and defamation or libel. The gravamen of his
complaint was that in August of 1997, he was wrongfully terminated
from his employment as assistant business manager of Local 45,
and a defamatory statement about his termination was posted on
Local 45's Internet website.
Defendants removed the action to federal district court
(28 U.S.C. 1441) on the ground that all four causes of action
were preempted by section 301 of the Labor Management Relations
Act (LMRA; 29 U.S.C. 185 [section 301]). Du Charme moved to remand.
After a hearing, the district court denied the motion to remand,
ruling that Du Charme's contract claims were preempted and therefore
subject to federal question jurisdiction (28 U.S.C. 1331), and
exercising supplemental jurisdiction over his remaining claims.
Thereafter, the district court granted defendants' motion for
judgment on the pleadings, finding, inter alia, that section
301 also preempted Du Charme's defamation claim. On appeal, the
Ninth Circuit reversed the removal order and remanded the action
to state court.
On June 14, 2001, defendants filed a special motion
to strike Du Charme's defamation claim and for attorney fees
and costs ( 425.16, subds. (b) & (c)). The court granted
Du Charme's motion to lift the statutory discovery stay ( 425.16,
subd. (g)) for a period of 75 days. After a hearing, the court
denied the motion to strike. Defendants filed a timely notice
of appeal.
DISCUSSION
I. The Anti-SLAPP Statute
"The goal of statutory construction is to ascertain
and effectuate the intent of the Legislature. [Citation.]"
( Pacific Gas & Electric Co. v. County of Stanislaus
(1997) 16 Cal.4th 1143, 1152.) Our point of departure, therefore,
is section 425.16, subdivision (a), which states in pertinent
part, "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."
Section 425.16, subdivision (b)(1) provides that a cause
of action arising from an act in furtherance of a person's constitutional
right of petition or free speech in connection with a public
issue is subject to a special motion to strike, unless the plaintiff
establishes a probability he will prevail on the claim. Protected
acts include, "(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." ( 425.16, subd. (e).) As the
statute's plain language indicates, if the statement at issue
falls within the ambit of subdivisions (e)(1) or (2), defendants
need not separately demonstrate that it concerned an issue of
public significance. ( Briggs v. Eden Council for Hope &
Opportu nity (1999) 19 Cal.4th 1106, 1123 ( Briggs ).)
Section 425.16, subdivision (b)(1) requires the trial
court to engage in a two-step process when determining whether
to grant a motion to strike. First, it decides whether defendant
has made a prima facie showing that the acts of which plaintiff
complains were taken in furtherance of defendant's constitutional
rights of petition or free speech in connection with a public
issue. If defendant satisfies this threshold burden, plaintiff
must then demonstrate a reasonable probability of prevailing
on the merits. On appeal, we review these legal issues de novo.
( Paul for Council v. Hanyecz (2001) 85 Cal.App.4th 1356,
1364; Damon v. Ocean Hills Journalism Club (2000) 85 Cal.App.4th
468, 473-474 ( Damon ).)
"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."
( 425.16, subd. (b)(2).) This requirement has been interpreted
to mean that when the trial court examines plaintiff's affidavits,
it must consider whether he has presented sufficient evidence
to establish a prima facie case, i.e., a showing by competent
and admissible evidence, of facts which, if proven at trial,
would support a judgment in his favor; when it considers defendant's
affidavits, the court cannot weigh them against plaintiff' s,
but must decide only whether they defeat plaintiff's supporting
evidence as a matter of law. Defendant need not establish
that his action is constitutionally protected; rather, he
must make a prima facie showing that plaintiff's claim arises
from an act taken to further defendant's rights of petition or
free speech in connection with a public issue. ( Paul for
Council v. Hanyecz, supra , 85 Cal.App.4th at p. 1365; Macias
v. Hartwell (1997) 55 Cal.App.4th 669, 675 ( Macias ).)
By its terms, the anti-SLAPP statute is broadly construed.
( 425.16, subd. (a).)
II. The Trial Court's Ruling
Du Charme alleged that Cecil Wynn, who was assigned
to operate Local 45 when it was placed in trusteeship in conjunction
with an investigation into its financial operations, posted on
the local's website the false statement that Du Charme had been
"removed from office for financial mismanagement."
Defendants maintained the posting constituted free speech as
defined in section 425.16, subdivision (e), and Du Charme could
not show he would prevail on the merits. In denying their motion,
the trial court found the statement was made neither before nor
in connection with a proceeding, and the issue was not one of
public interest. Having determined, therefore, that defendants
had not met their threshold burden, the court did not reach the
issue of whether Du Charme might prevail on the merits.
III. The Issues on Appeal
A. Timeliness
An anti-SLAPP 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." ( 425.16,
subd. (f).) Defendants argued below that the time during which
the case was removed to federal district court should not count
toward the statutory limit, and in the alternative, that the
trial court should exercise its discretion to hear the otherwise
late-filed motion. Du Charme argued that under U.S. ex rel.
Newsham v. Lockheed Missiles & Space Co. (9th Cir. 1999)
190 F.3d 963, 970-973, defendants could have filed their anti-SLAPP
motion in federal court. At the hearing, the trial court called
Du Charme's point "fairly valid," but expressly eschewed
resolution of the timeliness issue in favor of exercising its
right to hear the motion under subdivision (f)'s "giant
discretionary clause."
On appeal, Du Charme contends the court abused its discretion,
but offers no authority for the propositions that a trial court
should be required to state reasons for exercising its discretion
to hear a belated anti-SLAPP motion, and that a defendant should
be required to demonstrate "persuasive justification"
for the delay.
B. Protected Statement
On appeal, defendants contend the statement Wynn posted
on the local's website falls within subdivisions (e)(2), (3)
and (4) of section 425.16. First, they maintain it was made in
connection with an issue under consideration and review by an
official proceeding authorized by law ( 425.16, sub. (e)(2)),
namely the trusteeship proceeding (29 U.S.C. 461-466).
The relevant facts are these: Local 45 was placed in
trusteeship in April 1997 after dues collection deficiencies
resulted in revenue losses, which led to an IBEW investigation
and an independent audit. Thereafter, the Department of Labor
(DOL) undertook a full investigation. In August, business manager
James Earl Jackson was terminated for embezzlement of union funds,
among other things, and eventually pleaded guilty to credit card
fraud. At about the same time, Du Charme received a letter from
Wynn terminating his employment as assistant business manager
based on his having received unauthorized vacation and overtime
pay. On August 26, 1997, the following statement was posted on
Local 45's Internet website, over the name of Cecil Wynn, Trustee:
"Business Manager James Earl Jackson and Assistant Business
Manager Frank Du Charme have been removed from office for financial
mismanagement of the Local. [] I, as Trustee, am the acting Business
Manager and want to assure you that business is as usual and
[w]ill continue to run smoothly. [] If you have any questions,
please do not hesitate to contact me."
These facts do not demonstrate how Wynn's statement
informing the membership, after the fact, of Du Charme's termination
was made "in connection with an issue under consideration
or review "by the DOL or in any trusteeship proceeding.
Defendants' reliance on Nicosia v. De Rooy (N.D.Cal.
1999) 72 F.Supp.2d 1093 is misplaced, for there it was undisputed
that the complaint arose out of acts in furtherance of the defendant's
right of free speech in connection with a public issue. The only
question before the court was whether plaintiff showed he would
probably prevail at trial. ( Id. at p. 1110.) The fact
that the statements at issue in Nicosia happen to have
been published on a website hardly means the case stands for
the proposition that any statement published on any website
in any context is protected by the anti-SLAPP statute, much less
that it comes within subdivision (e)(2). As the trial court suggested,
the purpose of subdivisions (e)(1) and (2) is essentially to
protect the activity of petitioning the government for redress
of grievances and petition-related statements and writings (
Briggs, supra , 19 Cal.4th at pp. 1120-1121). Contrary
to defendants' assertion, the Briggs court found all the
statements at issue in that case constituted petition-related
activity. ( Id. at pp. 1114-1115.)
Next, defendants contend Wynn's Internet posting constitutes
a statement made in a public forum in connection with an issue
of public interest, as well as conduct in furtherance of the
exercise of his right to free speech in connection with a public
issue or an issue of public interest ( 425.16, subds. (e)(3)
& (4)). Du Charme responds that the trial court correctly
determined his termination was not an issue of public interest.
Defendants' argument is based primarily on "the
protection federal labor laws afford to speech concerning labor
disputes." In Linn v. United Plant Guard Workers of America,
Local 114 (1966) 383 U.S. 53, 55 ( Linn ), the Supreme
Court held "that where either party to a labor dispute circulates
false and defamatory statements during a union organizing campaign,
the court [has] jurisdiction to apply state remedies [only] if
the complainant pleads and proves that the statements were made
with malice and injured him." The Linn court adopted
the "actual malice" standard enunciated in New York
Times Co. v. Sullivan (1964) 376 U.S. 254, 279-280 ( New
York Times ), i.e., knowledge of the falsity, or reckless
disregard of the truth or falsity of the defamatory statement.
( Linn, supra , 383 U.S. at p. 65.)
In Old Dominion Branch No. 496, Nat. Ass' n. of Letter
Carriers, AFL-CIO v. Austin (1974) 418 U.S. 264 ( Austin
), the court considered a defamation action by non-union
members based on statements made in a union newsletter during
a continuing organizational drive. ( Id. at pp. 266-268.)
The court found there was a "labor dispute" within
the meaning of Linn , even though "there was no dispute
between labor and management . . . and . . . the union's organizing
efforts were neither during the course of a representation election
campaign nor directed toward achieving recognition." ( Id.
at pp. 278-279.)
In Sullivan v. Conway (7th Cir. 1998) 157 F.3d
1092, the court relied on Austin and Linn in a case that
is factually similar to the one before us. Soon after a union
local hired Sullivan as a business agent, it was placed in trusteeship
and Sullivan was fired. ( Id. at p. 1096.) In four written
announcements to the local's membership, the trustee stated that
Sullivan and three other business agents had been fired and the
local had been placed in trusteeship because of a variety of
problems, including corruption. ( Id. at p. 1098.) Sullivan
sued for defamation. ( Id. at p. 1094.) In addition to
a state law privilege ( ibid. ), the court found the trustee
"had a federal privilege to express his opinion of Sullivan
in his communications on matters of union business to union officers
and members. Federal labor law preempts state defamation law
when applied in ways that interfere with the internal management
of unions." ( Id. at p. 1099.)
While these cases might support a preemption defense
against the merits of Du Charme's defamation claim, defendants
do not explain how the limited protection they provide for defamatory
"labor speech" justifies the conclusion that such statements
necessarily concern an issue of public interest within the meaning
of California's anti-SLAPP statute. Perhaps in tacit recognition
of that fact, defendants turn to California cases construing
section 425.16's "public issue" requirement.
"The definition of ' public interest' within the
meaning of the anti-SLAPP statute has been broadly construed
to include not only governmental matters, but also private conduct
that impacts a broad segment of society and/or that affects a
community in a manner similar to that of a governmental entity.
[Citations.]" ( Damon, supra , 85 Cal.App.4th at
p. 479, citing Macias, supra , 55 Cal.App.4th at p. 674,
and Church of Scientology v. Wollersheim (1996) 42 Cal.App.4th
628, 650-651 ( Wollersheim ).) "Although matters
of public interest include legislative and governmental activities,
they may also include activities that involve private persons
and entities, especially when a large, powerful organization
may impact the lives of many individuals." ( Wollersheim,
supra , 42 Cal.App.4th at p. 650 (citing product liability
suits, and real estate or investment scams as examples), quoted
in Macias, supra , 55 Cal.App.4th at p. 674 and Damon,
supra , 85 Cal.App.4th at p. 479.)
In Damon , for example, allegedly defamatory
statements about the manager of a homeowners association governing
3,000 individuals in 1,633 homes were made at its board of directors
meeting and in its newsletter. ( Id. at pp. 471-473, 479.)
The court found that because each of the statements concerned
"the manner in which a large residential community would
be governed," they concerned issues of public interest under
section 425.16, subdivision (e)(3). ( Id. at pp. 474-475.)
Defendants assert that Wynn's statement about the termination
of Du Charme's employment as Local 45's assistant business manager
similarly concerned the manner in which a large organization,
the local, would be governed, "an inherently political question
of vital importance to each individual and to the community as
a whole" ( id. at p. 479). But the cases are distinguishable.
In Damon , "each of the alleged defamatory statements
concerned (1) the decision whether to continue to be self-governed
or to switch to a professional management company; and/or (2)
Damon's competency to manage the Association. These statements
pertained to issues of public interest within the Ocean Hills
community." ( Ibid. ) "Moreover, the statements
were made in connection with the Board elections and recall campaigns."
( Ibid. ) In other words, they were made in the context
of a public debate about how the community would be governed
in the future. (See id . at pp. 471-473.) Indeed, "[b]y
the end of 1997, the senior citizen residents of Ocean Hills
were largely split into two camps: those who favored Damon's
continued service and those who wanted Damon terminated as general
manager." ( Id. at p. 472.) The allegedly defamatory
statements of those in the second group are the very type of
speech the Legislature sought to protect in order "to encourage
continued participation in matters of public significance"
( 425.16, subd. (a)). By contrast, Wynn was not participating
in any IBEW- or Local 45-wide discussion of Du Charme's qualifications
to continue as assistant business manager. He was simply informing
the local's members of Du Charme's termination.
In Macias, supra , 55 Cal.App.4th 669, the defamation
action arose out of a political flyer distributed to union members
in the course of a campaign to elect its officers. ( Id. at
pp. 671-672.) "[T]he court found that campaign statements
made during a union election constituted a ' public' issue because
the statements affected 10,000 union members and concerned a
fundamental political matter-the qualifications of a candidate
to run for office." ( Damon, supra , 85 Cal.App.4th
at p. 479, citing Macias, supra , 55 Cal.App.4th at pp.
673-674 ["The public issue was a union election affecting
10,000 members and [plaintiff/appellant]'s qualifications to
serve as president." (Italics added.)].) Contrary to defendants'
assertion, the Macias court relied on 29 United States
Code section 411(a)(2) ("Every member of any labor organization
shall have the right . . . to express any views, arguments, or
opinions . . . ." ) to hold not that the candidate's
statements "addressed public issues," but rather that
they constituted constitutionally protected speech. ( Id.
at p. 673.) The trial court here found Macias distinguishable
because the statements therein were made in the context of a
union election. Defendants' contention that the Macias court
did not so limit its decision is fatally undermined by the above-italicized
language. They have once again conflated the court's rulings
on the "free speech" and "public issues"
requirements of the anti-SLAPP statute. It is in regard to the
former, not the latter, that the Macias court cites Warren
v. Herndon (1981) 115 Cal.App.3d 141, [146-]147, wherein
the court held under Linn and Austin, that the New York Times
standard of constitutional malice applies to labor speech protected
by 29 United States Code section 411(a)(2). ( Macias, supra
, 55 Cal.App.4th at p. 673.)
After the close of briefing in this case, we issued
our opinion in Rivero v. American Federation of State, County,
and Municipal Employees, AFL-CIO (2003) 105 Cal.App.4th 913 (
Rivero ), in which we affirmed the denial of an anti-SLAPP
motion, after surveying the authority on the public issue requirement.
We held a Union's allegedly defamatory statements were not made
in connection with a public issue or an issue of public interest
because they concerned the supervision of a staff of eight by
an individual who had previously received no public attention
or media coverage, and the only people directly involved in and
affected by the situation were the supervisor and his eight supervisees.
( Id. at p. 924.) We noted that mere publication (in a
newsletter, for example, or on a website) should not turn otherwise
private information (e.g., job termination) into a matter of
public interest. ( Id. at p. 926.) We also reiterated
a commentator's observation that judges and attorneys will, or
should, know a public concern when they see it. ( Id. at
p. 929, quoting Briggs, supra , 19 Cal.4th at p. 1122,
fn. 9.)
This is true in the majority of cases, which involve
statements made in connection with a topic, person or entity
of widespread public interest. For example, "The
development of [a] mall, with potential environmental effects
such as increased traffic and impact[] on natural drainage, [is]
clearly a matter of public interest." ( Ludwig v. Superior
Court (1995) 37 Cal.App.4th 8, 15; see also, Sipple
v. Foundation for Nat. Progress (1999) 71 Cal.App.4th 226 [domestic
violence], Wollersheim, supra , 42 Cal.App.4th 628 [religious
institution with extensive media coverage, membership and assets],
Seelig v. Infinity Broadcasting Corp. (2002) 97 Cal.App.4th
798 [television show that generated considerable media debate],
M.G. v. Time Warner, Inc. (2001) 89 Cal.App.4th 623 [child
molestation in youth sports]. These are cases in which "private
conduct . . . impacts a broad segment of society . . . ."
( Damon, supra , 85 Cal.App.4th at p. 479.)
But Damon and Macias fall into a smaller group
of cases in which First Amendment activity is connected to an
issue of interest to only a limited but definable portion
of the public, a narrow segment of society consisting
of the members of a private group or organization-a 3,000-member
homeowners' association in the former, a 10,000-member union
local in the latter. These are cases in which private conduct
"affects a community [in the broad sense of the word]
in a manner similar to that of a governmental entity" (
Damon, supra, 85 Cal.App.4th at p. 479, italics added).
As previously noted, the allegedly defamatory statements in both
cases were made not only in connection with an issue of interest
to the members of the particular community, but also in the context
of an ongoing controversy, debate or discussion within that community-a
decision about future association governance in the former, an
election of officers in the latter. The statements in Macias
were designed to persuade union members to vote against a
particular candidate for union office. In Damon , the
statements were calculated to persuade members of the homeowners
association to change its method of governance. Thus protection
of the statements at issue in Damon and Macias serves
the anti-SLAPP statute's purpose of encouraging participation
in an ongoing controversy, debate or discussion. [FOOTNOTE
1]
By contrast, in this case, the Local's trustee posted
on its website the information that Du Charme had been removed
from office for financial mismanagement, a statement that was
presumably of interest to the membership (else why post it at
all?), but unconnected to any discussion, debate or controversy.
Du Charme's termination was a fait accompli; its propriety was
no longer at issue. Members of the local were not being urged
to take any position on the matter. In fact, no action
on their part was called for or contemplated. To grant protection
to mere informational statements, in this context, would in no
way further the statute's purpose of encouraging participation
in matters of public significance ( 425.16, subd. (a)).
We therefore hold that in order to satisfy the public
issue/issue of public interest requirement of subdivisions (e)(3)
and (4) of the anti-SLAPP statute, in cases where the issue is
not of interest to the public at large, but rather to a limited,
but definable portion of the public (a private group, organization,
or community), the constitutionally protected activity must,
at a minimum, occur in the context of an ongoing controversy,
dispute or discussion, such that it warrants protection by a
statute that embodies the public policy of encouraging participation
in matters of public significance. [FOOTNOTE 2] Because
the allegedly defamatory statement in this case was not made
in such a context, it is not entitled to the statute's protection.
We therefore need not determine what limitations there might
be on the size and/or nature of a particular group, organization,
or community, in order for it to come within the rule we enunciate
today.
To summarize, the statement trustee Wynn posted on Local
45's website does not satisfy the criterion of section 425.16,
subdivision (e)(2) because it was not made in connection with
an issue under consideration and review by an official proceeding
authorized by law. It satisfies neither subdivision (e)(3) nor
(e)(4) because, although it may well have been made in a public
forum (the Internet) and in furtherance of the exercise of the
constitutional right of free speech, defendants have not made
a prima facie showing that it was made in connection with a public
issue or an issue of public interest within the meaning of the
anti-SLAPP statute.
The trial court, therefore, properly denied defendants'
motion to strike Du Charme's defamation claim on the ground that
Wynn's website posting did not satisfy any of the criteria in
section 425.16, subdivision (e). It is therefore unnecessary
for us, as it was for the trial court, to determine the likelihood
that Du Charme would prevail on the merits.
DISPOSITION
The judgment is affirmed.
Kline, P.J.
We concur: Lambden, J., Ruvolo, J.
::::::::::::::::::::::::::::: FOOTNOTE(S):::::::::::::::::::::::::::::
FN1. The case of Dowling v. Zimmerman (2001)
85 Cal.App.4th 1400 ( Dowling ) is somewhat anomalous.
There, the attorney for one party to a property dispute wrote
an allegedly defamatory letter to a Townhouse Owners' Association
(TOA). ( Id. at pp. 1407-1408.) The court held the letter
came within subdivision (e)(2) of section 425.16 (see ante
, pp. 2-3), which does not require a public issue/interest
showing ( Briggs, supra , 19 Cal.4th at p. 1123), because
it was written in connection with a pending unlawful detainer
action. ( Dowling, supra , 85 Cal.App.4th at p. 1420.)
Because the attorney wrote with the express purpose of advising
the TOA of potential nuisance and safety concerns, the court
added that her letter also addressed conduct "that arguably
involved public issues of nuisance and safety." ( Ibid.
) The latter conclusion might be considered dicta. Moreover,
while the underlying dispute directly involved only two
couples, the attorney's letter was not merely informational,
as its stated purpose was to "give [the TOA] the opportunity
to correct and eliminate" dangerous conditions which "might
very well affect" other owners and residents. ( Id. at
p. 1407.)
FN2. This rule is consistent with the holding and result
in Rivero , because although the union there asserted
that its statements were made in the context of a major labor
dispute and/or organizing drive, we found no support in the record
for that assertion. (105 Cal.App.4th at pp. 917, fn. 4; 926,
927-928.)
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