BILL ANALYSIS SENATE JUDICIARY COMMITTEE Adam B. Schiff, Chairman 1999-2000 Regular Session AB 1675 A Assembly Judiciary Committee B As Amended May 28, 1999 Hearing Date: June 29, 1999 1 Code of Civil Procedure 6 JMR:cjt 7 5 SUBJECT Right to Appeal Decisions on Anti-SLAPP (Strategic Lawsuits Against Public Participation) Motions DESCRIPTION This bill would permit an appeal of an order granting or denying a motion to strike under the anti-SLAPP statute. It also would require the party filing an anti-SLAPP motion, and any party opposing the motion, to send certain documents to the Judicial Council to be maintained as part of a public record on these motions. (This analysis reflects author's amendments to be offered in Committee.) BACKGROUND Strategic Lawsuits Against Public Participation, or SLAPP suits, as they have become popularly termed, were first defined by University of Denver Law School Professor George Pring and University of Denver Sociology Professor Penelope Canan in their seminal article, Strategic Lawsuits Against Public Participation (1988) 35 Social Problems 506, as "civil lawsuits ... that are aimed at preventing citizens from exercising their political rights or punishing those who have done so." While SLAPP suits "masquerade as ordinary lawsuits" such as defamation and interference with prospective economic (more) AB 1675 (Asm. Jud. Comm.) Page 2 advantage, they are generally meritless suits brought primarily to chill the exercise of free speech or petition rights by the threat of severe economic sanctions against the defendant, and not to vindicate a legally cognizable right. (See, Pring and Canan, SLAPPS: Getting Sued for Speaking Out (Temple University Press, 1996).) In 1992, Code of Civil Procedure Section 425.16 was enacted by SB 1264 (Lockyer), Ch. 726, Stats. of 1992, to provide a "special motion to strike" which could be used by defendants in "SLAPP" suits to obtain an early judicial ruling and termination of a meritless claim arising from a person's exercise of the right to petition or free speech under the United States or California Constitution in connection with a public issue. In enacting the provision, the Legislature expressly found that "there has been a disturbing increase in lawsuits primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for the redress of grievances . . . 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." CHANGES TO EXISTING LAW Existing law provides that a cause of action against a person arising from any act of that person in furtherance of the person's right of petition or free speech under the United States or California Constitution in connection with a public issue, is subject to a special motion to strike, unless the court, after considering the pleadings and supporting and opposing affidavits, determines that there is a probability that the plaintiff will prevail on the claim. (Code of Civil Procedure Section 425.16. Other further references are to this code unless indicated otherwise.) Existing law specifies that the right to appeal is granted and governed by statute. (Code of Civil Procedure Sections 902 and 904.) Most judicial orders are not immediately appealable, but can be reviewed only as an appeal from the final judgment at the conclusion of the case. (Section AB 1675 (Asm. Jud. Comm.) Page 3 904.1; De Lao v. Superior Court (1951) 37 Cal.2d 711.) Existing law defines "judgment" as the final determination of the rights of the parties. (Section 577.) The courts have stated that there can be "but one final judgment in an action, and that is one which in effect ends the suit in the court in which it was entered, and finally determines the rights of the parties in relation to the matter in controversy." ( Bank of Am. Nat'l Trust & Sav. Ass'n v. Superior Court (1942) 20 Cal.2d 697, 701.) Generally, an appeal may be taken only from this final judgment in an action. Existing law provides that even if an order is not immediately appealable, the party may be able to obtain discretionary appellate review via an extraordinary writ petition. Writs typically allow the court of appeal to correct error when the petitioner has no immediate right of appeal, no adequate remedy at law, and a beneficial interest in the outcome. (Sections 1068-1069, 1086, and 1103.) Existing law provides that the perfecting of an appeal stays proceedings in the trial court upon the judgment or order appealed from or upon the matters embraced therein or affected thereby, including enforcement of the judgment or order, but the trial court may proceed upon any other matter embraced in the action and not affected by the judgment or order. (Section 916.) This bill would provide that an order granting or denying a special motion to strike shall be immediately appealable, and therefore, the perfecting of the appeal would stay proceedings in the trial court. This bill also would require the party filing an anti-SLAPP motion, and any party opposing the motion, to send certain documents to the Judicial Council to be maintained as part of a public record on these motions. COMMENT 1. Stated need for legislation According to the proponents, this bill would further the AB 1675 (Asm. Jud. Comm.) Page 4 purpose of the anti-SLAPP statute by allowing the defendant to immediately appeal a denial of a special motion to strike. Without this ability, a defendant will have to incur the cost of a lawsuit before having his or her right to free speech vindicated. The proponents contend that when a meritorious anti-SLAPP motion is denied, the defendant, under current law, has only two options. The first is to file a writ of appeal, which is discretionary and rarely granted. The second is to defend the lawsuit. If the defendant wins, the anti-SLAPP statute is useless and has failed to protect the defendant's constitutional rights. The proponents assert that since the right of petition and free speech expressly granted by the U.S. Constitution are at issue when these motions are filed, the defendant should have the immediate right to appeal and have the matter reviewed by a higher court. The author is submitting amendments in Committee to clarify that the right to appeal would apply to motions granted or denied in order to assure that both the plaintiff and defendant are given equal rights to appeal an adverse order. 2. Creating a public record of anti-SLAPP motions filed This bill would require the party filing an anti-SLAPP motion, and any party opposing the motion, to send certain documents to the Judicial Council to be maintained as part of a public record on these motions. When the anti-SLAPP statute was enacted, the Legislature requested that the Judicial Council report on the statute's effectiveness after five years of operation. Specifically, the Legislature requested that the Judicial Council report by January 1, 1998, on the frequency and outcome of motions to strike and on "any other matters pertinent to the purposes of this section." The report, which was recently distributed, made recommendations on several issues, including further data collection. As to this issue, the Judicial Council report concluded: AB 1675 (Asm. Jud. Comm.) Page 5 The Judicial Council does not believe that further data collection on special anti-SLAPP motions by the courts is necessary. The information already obtained by staff is adequate to indicate that special anti-SLAPP motions are not very common. Most survey respondents believed the existence of the statute deters SLAPP suits as the Legislature intended. A case-level review is required to collect data on special anti-SLAPP motions. Further tracking of Section 425.16 would be burdensome and costly and should not be required. (Legislative Report: Special Motions to Strike Strategic Lawsuits Against Public Participation, May 28, 1999, p. 4.) However, the specialists in the area that were hired by Judicial Council as consultants on the report came to a different conclusion. Because SLAPP suits are a highly specialized area of the law, two leading specialists on SLAPP suits, Penelope Canan, Ph.D., and George W. Pring, J.D., were hired as consultants on a contractual basis to analyze the results of the Judicial Council staff's data collection efforts. The consultants' views differ in significant respects from that of the council's on several issues. As to the data collection, the consultants stated: If the Legislature requires knowing how the anti-SLAPP provision is working, it must enable reliable research. At a minimum it should require the filing of a simple form whenever the motion is entered. Then a random sample of these could be selected and various participants interviewed about impacts. (Legislative Report, supra, p. 4.) DOES THE LEGISLATURE WANT TO FURTHER TRACK THE EFFECTIVENESS OF THE ANTI-SLAPP STATUTE? Support: California Broadcasters Association; California Newspaper Publishers Association; American Civil Liberties Union; California Anti-SLAPP Project; League of California Cities; Golden State Mobilhome Owners League, Inc.; California Employment Lawyers Association; Rural Canyons Conservation Fund; Planning and Conservation League AB 1675 (Asm. Jud. Comm.) Page 6 Opposition: None Known HISTORY Source: Author Related Pending Legislation: None Known Prior Legislation: None Known Prior Vote: Asm. Floor 79-1; Asm. Appr. 14-7; Asm. Jud. 12-0 **************