Ashegian v. Beirne CA2/4

CourtCalifornia Court of Appeal
DecidedJune 20, 2013
DocketB245028
StatusUnpublished

This text of Ashegian v. Beirne CA2/4 (Ashegian v. Beirne CA2/4) 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
Ashegian v. Beirne CA2/4, (Cal. Ct. App. 2013).

Opinion

Filed 6/20/13 Ashegian v. Beirne CA2/4 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FOUR

MARC ASHEGIAN, B245028

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC480403) v.

JAMES G. BEIRNE et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Los Angeles County, Kevin C. Brazille, Judge. Affirmed. Joel Bander for Plaintiff and Appellant. Stocker & Lancaster and Michael J. Lancaster for Defendants and Respondents. INTRODUCTION Plaintiff and appellant Marc Ashegian appeals from the judgment entered after the trial court sustained a general demurrer to the complaint he filed against defendants and respondents James G. Beirne, the Law Offices of James G. Beirne, Paul Mendoza Allen and the Law Offices of Paul M. Allen. Ashegian’s complaint alleged a cause of action under Business and Professions Code section 6158.4,1 based on internet advertising by respondents that allegedly violated State Bar Act regulations (§§ 6158, 6158.1, and 6158.3) governing the content of electronic media advertising for legal services. The court sustained the demurrer on the ground that the complaint failed to allege that Ashegian previously had submitted a complaint regarding the allegedly unlawful advertisements to the State Bar and otherwise complied with the State Bar review procedures set forth in section 6158.4. On appeal, Ashegian contends that the plain language of the statute excuses California residents from following the State Bar review procedures before filing a civil enforcement action. We conclude that neither the plain language of the statute nor the relevant legislative history supports Ashegian’s interpretation, and we affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND Ashegian filed a complaint against respondents in superior court alleging a “civil enforcement action” pursuant to section 6158.4, subdivision (e), contending that respondents’ internet advertising for their legal services violated sections 6158 (barring electronic advertising that, taken as a whole, is false, misleading, or deceptive), 6158.1 (creating a rebuttable presumption that certain types of

1 All subsequent undesignated code references are to the Business and Professions Code.

2 messages are false, misleading, or deceptive), and 6158.3 (requiring that particular disclosures be included if an electronic advertisement portrays a result in a particular case). The complaint alleged that respondent Allen maintained a “banner ad” on the website associated with the newspaper Balita that is distributed to the Filipino- American community in Los Angeles County. According to the complaint, when an internet user clicked on the banner ad, he or she was directed to respondent Beirne’s web page instead, which Ashegian alleged constituted a deceptive act. The complaint further alleged that Beirne’s web page featured a video of an unidentified woman making false, misleading or deceptive statements of support for the Beirne law office. Ashegian sought $5,000 fines against respondents for each allegedly deceptive broadcast as well as attorneys fees. Two weeks later, Ashegian amended his complaint to state that following service of the original complaint on respondents, internet users who clicked on the banner ad for Allen were no longer routed to Beirne’s web page. Instead, users were directed to Allen’s single-page website, which stated, “We are a federally designated debt relief agency,” language which Ashegian alleges does not satisfy the requirements set forth in 11 United States Code section 528, subdivisions (a)(3) and (4), (b)(1). The complaint further alleged that a blog posting by Allen falsely stated that Allen’s firm had been handling bankruptcy cases for over a decade, when in fact Allen was a new admittee in his mid-twenties. Respondents demurred to the amended complaint on the grounds that (1) it failed to state facts sufficient to constitute a cause of action against respondents because no complaint regarding the advertisements at issue was first filed with the State Bar, as required by section 6158.4; (2) Ashegian failed to exhaust all administrative remedies; (3) he lacked standing to sue; (4) the complaint failed to

3 allege damages; (5) it was uncertain; and (6) it failed to comply with California Rules of Court, rule 2.112 by failing to specifically plead who was suing whom. The trial court sustained the demurrer on the ground that the complaint failed to allege compliance with the mandatory administrative procedures set forth in section 6158.4, subdivision (a), beginning with the requirement that a complaint be filed with the State Bar. Further, even if the State Bar review procedure did not apply, the complaint failed to allege that Ashegian gave respondents 14 days’ notice before filing an action, as required by section 6158.4, subdivision (d). The court denied leave to amend because, in opposing the demurrer, Ashegian failed to show that the complaint could be amended to show compliance with the administrative procedures. Ashegian timely appealed from the judgment dismissing the case.

DISCUSSION Ashegian contends that the trial court erred in sustaining the demurrer to the amended complaint for failure to allege compliance with the State Bar review procedures set forth in section 6158.4. However, the plain meaning of section 6158.4 as well as consideration of the relevant legislative history supports the trial court’s conclusion that Ashegian was required to comply with those State Bar review process set forth in this statute as a condition precedent to any civil enforcement action. “When reviewing a judgment dismissing a complaint after a successful demurrer, we assume the complaint’s properly pleaded or implied factual allegations are true, and we give the complaint a reasonable interpretation, reading it in context. [Citation.] We also consider judicially noticeable matters.”

4 (Campbell v. Regents of University of California (2005) 35 Cal.4th 311, 320 (Campbell).)2

I. Language of Section 6158.4 The State Bar Act (§ 6000 et seq.) was first amended in 1993 to add regulations on advertising for legal services. (§§ 6157-6159.2.) At that time, the Legislature adopted provisions prohibiting false, misleading or deceptive statements in such advertising, and prohibiting particular types of advertisements, such as guarantees, unidentified spokespersons, and impersonations without proper disclosures. (§§ 6157.1-6157.7, added by Stats. 1993, Assem. Bill No. 208 (1993- 94 Reg. Sess.).) The lone enforcement mechanism for the violation of these provisions was provided in former section 6157.5, now found in section 6159, which states: “The court shall report the name, address, and professional license number of any person found in violation of this article to the appropriate professional licensing agency for review and possible disciplinary action.” The statute did not provide for a private right of action for violations of the advertising regulations. In 1994, the State Bar Act was again amended, in part to add regulations with respect to legal advertising specifically via electronic media, namely television, radio, and computer networks. (§ 6157, subd. (d).) Of particular interest here, section 6158.4, prescribes the procedures to be followed by persons claiming a violation of sections 6158, 6158.1, or 6158.3, special regulations proscribing particular content in electronic media advertising for legal services.3

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Ashegian v. Beirne CA2/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ashegian-v-beirne-ca24-calctapp-2013.