BMR Summers Ridge v. H.G. Fenton Co. CA4/1

CourtCalifornia Court of Appeal
DecidedNovember 28, 2023
DocketD081115
StatusUnpublished

This text of BMR Summers Ridge v. H.G. Fenton Co. CA4/1 (BMR Summers Ridge v. H.G. Fenton Co. CA4/1) 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
BMR Summers Ridge v. H.G. Fenton Co. CA4/1, (Cal. Ct. App. 2023).

Opinion

Filed 11/28/23 BMR Summers Ridge v. H.G. Fenton Co. CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

BMR-SUMMERS RIDGE LP, D081115

Plaintiff and Respondent,

v. (Super. Ct. No. 37-2022- 00005238-CU-BT-CTL) H.G. FENTON COMPANY et al.,

Defendants and Appellants.

APPEALS from an order of the Superior Court of San Diego County, Katherine Bacal, Judge. Affirmed. Duane Morris, Colin L. Pearce, Jolie-Anne S. Ansley, and Ashley Barton for Appellants H.G. Fenton Company, Jeff Diltz, and Connie Powell. Pettit Kohn Ingrassia Lutz and Dolin, Ryan H. Nell, and Christine Y. Dixon for Appellant Fenton Technology Park Property Owners Association. Latham & Watkins, John T. Ryan, Nicole C. Valco, Grant E. Strother, Melissa Arbus Sherry, Anna M. Rathbun, and Christina R. Gay for Plaintiff and Respondent. H.G. Fenton Company (Fenton), Fenton Technology Park Property Owners Association (Association), Jeff Diltz, and Connie Powell (collectively, defendants) appeal the trial court’s order denying their special motions to strike BMR-Summers Ridge LP’s (BMR) complaint as a strategic lawsuit against public participation (SLAPP). Defendants contend that while the court correctly found BMR’s claims arise from protected activity, the court erred in finding that BMR showed a probability of succeeding on its claims. BMR argues that the court reached the right result because its claims have at least minimal merit. But BMR also contends that the court should have denied the motions to strike on the ground that BMR’s claims do not arise

from activity protected by the anti-SLAPP statute. (See Code Civ. Proc.,1 § 425.16.) We conclude that defendants failed to meet their burden of showing BMR’s claims arise from protected activity under section 425.16, subdivisions (e)(1) through (e)(4), because the alleged activity: (1) did not involve an “official proceeding”; (2) did not occur in a “public forum”; and (3) did not contribute to any public discussion about an issue of public interest. Having concluded that the motions to strike fall short at the first step of the anti- SLAPP analysis, we need not reach the question of whether BMR met its second-step burden of establishing a probability of success on the merits of its claims. (§ 425.16, subd. (b)(1).) Accordingly, we affirm the denial of defendants’ motions to strike. FACTUAL AND PROCEDURAL BACKGROUND Fenton, BMR, and Alexandria Real Estate Equities (ARE) are competitors in the San Diego commercial real estate market. Each business owns lots in Fenton Technology Park (Park), a large industrial area located between two freeways in the Sorrento Mesa area of San Diego. The Park is

1 All further statutory references are to the Code of Civil Procedure unless otherwise indicated. 2 governed by covenants, conditions, and restrictions (CCRs) which establish the Association, a nonprofit mutual benefit corporation, as a managing body. The CCRs provide that the Association’s members consist of the Park’s parcel owners. The CCRs also state that owners may use their land for “commercial or industrial purposes” including warehousing. Before developing or constructing improvements on their land, however, owners must submit their plans to the Association for approval. The Association’s board, comprised of directors from BMR, Fenton, and ARE, has the right to disapprove an application if it is “not in accordance” with the CCRs, is incomplete, or is not compliant with applicable governmental approvals and regulations. The CCRs provide that the Association “shall not unreasonably withhold its approval[.]” In 2021, BMR agreed to sell two of its lots to Amazon for an alleged profit of over $150 million for BMR. Amazon intended to build a facility on those lots for storing merchandise before delivery to final destinations in San Diego County. The agreement was contingent on receiving governmental approvals, as well as Association approval, within a specified time period. BMR obtained preliminary confirmation from the City of San Diego (City) that Amazon’s anticipated use was permissible under applicable permit and zoning requirements, and that the anticipated traffic was allowable. BMR then submitted an application to a committee, appointed by the Association, which considered the application during a video meeting. The meeting was only accessible to the Park’s property manager and representatives from ARE, BMR, and Fenton. BMR alleges that the property manager instructed BMR’s representative to recuse herself from the meeting before the Association deliberated and voted on the application. The

3 Association then denied the application, stating that Amazon’s proposed use was “incompatible either with the character of [the Park] as a first class integrated mixed use business center or with the purpose and general plan and intent of the [CCRs].” Although BMR submitted additional information and requested reconsideration, the Association did not change its decision, and Amazon withdrew from its agreement with BMR shortly thereafter. BMR filed suit in February 2022 against Fenton and the Association, as well as Diltz (Fenton’s committee representative who voted on the application) and Powell (Fenton’s board representative). BMR’s complaint, as amended, asserts causes of action (COA) based on: breach of the CCRs (first and second COAs); declaratory relief under the Nonprofit Mutual Benefit Corporation Law (Corp. Code, § 7110, et seq., third COA); breach of fiduciary duties (fourth COA), tortious interference with BMR’s relationship with Amazon (fifth, sixth, and seventh COAs), breach of the implied duty of good

faith and fair dealing (eighth COA), the Cartwright Act2 (ninth COA), unfair competition (tenth COA), and a request for other declaratory relief relating to the denial of BMR’s application (eleventh COA). Defendants filed anti-SLAPP motions to strike, arguing that the allegations in BMR’s amended complaint involve all four categories of protected activity as described in section 425.16, subdivision (e). (See § 425.16, subd. (e)(1)–(4).) Specifically, defendants argued that BMR was suing them for their actions in Association meetings, which constituted “official proceedings,” and that those actions were taken in a “public forum” involving high-profile issues of “public interest.” Defendants also contended

2 The Cartwright Act is California’s antitrust statute. (Bus. & Prof. Code, § 16700 et seq.) 4 that their protected activities gave rise to BMR’s claims, and that BMR could not demonstrate a probability of prevailing on the merits. After considering the parties’ briefs and holding a hearing, the trial court granted in part and denied in part defendants’ anti-SLAPP motions. The court first found that all of BMR’s claims arose out of the Association’s vote to deny the application, which constituted protected activity. The court then concluded that BMR showed a probability of prevailing on each of its claims, except as to Diltz and Powell individually for tortious interference and Cartwright Act violations. The court therefore dismissed only those specific claims against Diltz and Powell (fifth, sixth, seventh, and ninth COAs), but otherwise denied defendants’ motions to strike the remaining

COAs.3 Defendants timely appealed. DISCUSSION Defendants ask us to reverse the court’s order denying their anti- SLAPP motions, arguing that while the court correctly found BMR’s claims arise from protected activity, the court erred in finding that BMR showed a probability of succeeding on its claims.

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BMR Summers Ridge v. H.G. Fenton Co. CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bmr-summers-ridge-v-hg-fenton-co-ca41-calctapp-2023.