Agate v. IMG Worldwide CA2/2

CourtCalifornia Court of Appeal
DecidedNovember 20, 2013
DocketB243636
StatusUnpublished

This text of Agate v. IMG Worldwide CA2/2 (Agate v. IMG Worldwide CA2/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Agate v. IMG Worldwide CA2/2, (Cal. Ct. App. 2013).

Opinion

Filed 11/20/13 Agate v. IMG Worldwide CA2/2

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA SECOND APPELLATE DISTRICT DIVISION TWO

JAMES AGATE, B243636

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC455630) v.

IMG WORLDWIDE, INC., et al.,

Defendants and Respondents.

APPEAL from an order of the Superior Court of Los Angeles County. Ronald M. Sohigian, Judge. Affirmed.

The Aftergood Law Firm and Aaron D. Aftergood for Plaintiff and Appellant.

Akin Gump Strauss Hauer & Feld, Rex S. Heinke, Susan K. Leader, and Jessica M. Weisel; Mark J. MacDougall for Defendants and Respondents. Plaintiff and appellant James Agate (Agate) appeals from the trial court’s order granting a special motion to strike, pursuant Code of Civil Procedure section 425.16,1 all of the causes of action asserted against defendants and respondents Theodore Forstmann (Forstmann) and International Management Group (IMG) (collectively “defendants”) in Agate’s complaint seeking damages for slander. We affirm the trial court’s order. BACKGROUND The parties IMG is an international sports and media business that owns and manages large- scale sporting events and represents athletes, fashion models, celebrities, corporations, and sports organizations. IMG employs nearly 3,000 people and operates in approximately 30 countries. Forstmann was IMG’s chairman and CEO. He was also a founding partner of the private equity firm Forstmann Little, which has bought and sold companies such as Gulfstream Aerospace, General Instrument, and Topps. Forstmann Little owns 24 Hour Fitness. Forstmann died in November 2011 after a lengthy illness. Kathleen Broderick, Margot McGinniss, and Bessemer Trust Company, N.A., the representatives of his estate, were substituted as defendants in his place. Agate is an individual who resides in Las Vegas, Nevada. He was the owner of Agate Printing, a printing business, and had a long personal relationship with Forstmann. History of litigation between Agate and Forstmann In February 2008, Agate sued Forstmann and 24 Hour Fitness alleging breach of an oral agreement concerning printing services for 24 Hour Fitness, in Agate v. Forstmann, Los Angeles Superior Court case No. BC386431 (Agate I). After the superior court sustained, with leave to amend, the defendants’ demurrer to the complaint, Agate voluntarily dismissed Agate I in August 2008. Despite the dismissal, Forstmann entered into a confidential settlement agreement with Agate in April 2009 to resolve the claims in Agate I. After Agate received the final

1 All further statutory references are to the Code of Civil Procedure, unless otherwise stated. A special motion to strike is also referred as an anti-SLAPP motion.

2 payment under the settlement agreement, he wrote to Forstmann demanding more money. When Forstmann refused to pay, Agate filed another lawsuit on September 2, 2010, against Forstmann, IMG, 24 Hour Fitness, and Kirkland & Ellis, LLP, in a case captioned Agate Printing, Inc. v. Forstmann, et al., Los Angeles Superior Court case No. BC444880 (Agate II). In October 2010, Agate amended the Agate II complaint to include inflammatory allegations, including allegations that Forstmann had used Agate “as a betting conduit” for “Forstmann’s aggressive betting on and against athletes represented by IMG and events owned or controlled by IMG,” including a wager based on “inside information” on a tennis match between Roger Federer and Rafael Nadal, both IMG clients. In the amended Agate II complaint Agate further alleged that he had arranged for “Forstmann’s dates and interludes with escorts, models, and other people . . . who sold their ‘time’ and agreed to provide services to Forstmann in exchange for money” and that “Forstmann was concealing his gambling and writing off his losses and even, on occasion, his escort fees . . . as fabricated business expenses to [Agate Printing].” Agate further alleged that Forstmann had “made derogative comments about blacks, Jewish people, and other minorities” and “had singled out [IMG client Tiger] Woods as someone who he wanted to see fail.”2 On October 13, the day after filing the amended Agate II complaint, Agate wrote to Forstmann: “To bring you up to date in the event you haven’t heard, Agate Printing . . . filed the first amended complaint. . . . TMZ (www.tmz.com) has already jumped on the story. The first amended complaint is in the public record. You should expect to be inundated with questions from investigative reporters. You may want to carefully consider whether you want to deny my allegations.”

2 The defendants moved to compel arbitration of Agate II under the terms of the April 2009 settlement agreement, and the superior court ordered the case to arbitration.

3 Agate’s allegations received attention not only from TMZ, but from other publications such as USA Today, Fortune magazine, and the Daily Beast. Forstmann’s responses to Agate’s allegations in turn were published in financial publications, newspapers, and on celebrity news sites. The instant lawsuit and anti-SLAPP motion Agate filed this action on March 22, 2011, asserting three causes of action for slander. The first and second causes of action are against Forstmann and IMG, and the third cause of action is against Forstmann only. Agate’s complaint alleged that Forstmann made statements to various publications falsely accusing Agate of being a “stalker,” a “shakedown artist,” an “extortionist,” and “insane.” IMG filed an anti-SLAPP motion, arguing that the statements made by Forstmann and others concerned a matter of public interest and Agate could not establish a probability of prevailing on his claims. IMG further argued the allegedly defamatory statements were protected opinion, true, subject to the litigation privilege, or otherwise not actionable. Forstmann joined in IMG’s anti-SLAPP motion. In his opposition to the anti-SLAPP motion, Agate claimed that his first cause of action for slander was premised on false statements by Forstmann calling Agate “insane,” a “stalker,” a “shakedown artist,” a “scumbag lowlife,” “really insane,” a “nut job,” and having a “wire crossed.” Agate claimed his second cause of action was based on false statements by Forstmann referring to Agate Printing as “a piece of shit company” and statements by Michael Sitrick (an alleged agent of IMG and Forstmann) that the allegations in Agate II were “beyond false” and “preposterous.” The third cause of action, Agate maintained, was based on Forstmann’s statements referring to Agate as an “extortionist.” Agate further stated in his opposition that “[a]ny arguments by Defendants regarding any of the other statements do not matter as those statements are not the basis for any cause of action and only establish Defendants’ malice.” Following a July 2, 2012 hearing at which the parties presented argument, the trial court granted defendants’ anti-SLAPP motion and dismissed the action. This appeal followed.

4 DISCUSSION I.

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Agate v. IMG Worldwide CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/agate-v-img-worldwide-ca22-calctapp-2013.