Callanan v. Grizzly Designs CA3

CourtCalifornia Court of Appeal
DecidedJune 29, 2022
DocketC094008
StatusUnpublished

This text of Callanan v. Grizzly Designs CA3 (Callanan v. Grizzly Designs CA3) 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
Callanan v. Grizzly Designs CA3, (Cal. Ct. App. 2022).

Opinion

Filed 6/29/22 Callanan v. Grizzly Designs CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published,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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 THIRD APPELLATE DISTRICT (Trinity) ----

CONNOR CALLANAN, C094008

Cross-complainant and Appellant, (Super. Ct. No. 20CV057)

v.

GRIZZLY DESIGNS, LLC, et al.,

Cross-defendants and Respondents.

At issue in this appeal is whether a cross-complaint filed by Connor Callanan against Charles Menken, Steven Menken, and Grizzly Designs, LLC, dba Brotherly Love (collectively “the Menkens”) is a SLAPP suit1 subject to a special motion to strike under Code of Civil Procedure section 425.16 (also known as the anti-SLAPP statute).2 The Menkens contend Callanan’s cross-complaint is a SLAPP suit because it was filed in

1 SLAPP stands for strategic litigation against public participation. (See Navellier v. Sletten (2002) 29 Cal.4th 82, 85 & fn. 1 (Navellier).) 2 Further undesignated statutory references are to the Code of Civil Procedure.

1 retaliation for a cross-complaint they filed against Callanan, and they filed a motion under section 425.16 seeking to strike it. The trial court granted the motion, and Callanan appeals. For the reasons stated below, we find Callanan’s cross-complaint is not a SLAPP suit because none of his claims arise from the filing of the Menkens’ cross- complaint. We thus reverse the trial court. FACTUAL AND PROCEDURAL BACKGROUND Although the Menkens’ motion is directed solely at Callanan’s cross-complaint, there are actually three separate complaints in this case: (1) a complaint filed by Riccardo Marino against the Menkens; (2) a cross-complaint filed by the Menkens against Marino and Callanan;3 and (3) a cross-complaint filed by Callanan against the Menkens. Marino’s complaint is not at issue here, and he is not a party to this appeal. We thus summarize only the Menkens’ cross-complaint against Callanan and Callanan’s cross-complaint against the Menkens. The Menkens’ Cross-complaint As noted, the Menkens filed a cross-complaint against Marino and Callanan. According to the allegations in the Menkens’ cross-complaint, the relevant facts are as follows. The Menkens are “engaged in the research and development of various cannabis based products intended for marketing in the burgeoning cannabis market space.” Marino and Callanan own and operate a business called UHSE Media LLC that provides media, marketing, and consulting services to the cannabis industry, and that holds itself out as having “specialized knowledge regarding the cultivation of high quality cannabis, and the preparation, marketing, development and branding of unique, high quality cannabis-based products for distribution in the cannabis market space.” In May 2019, the

3 The Menkens also sued Sierra Van Meter, who is alleged to be Marino’s significant other. Because Van Meter is not relevant to this appeal, we do not mention her further.

2 Menkens entered into an “oral agreement” with Marino and Callanan for such consulting services and agreed to pay them $30,000 each. The Menkens claim that, at least as to this consulting work, Marino and Callanan were independent contractors rather than employees. Marino and Callanan were “permitted” to live at the Menkens’ “business location” “as they deemed necessary” in order to do their consulting work, but they “were at all times free to come and go as they determined necessary and for their own purposes.” They began living and working at the Menkens’ business location in late May 2019. The Menkens run an apprenticeship program that gives “individuals seeking to gain entry into the cannabis production space . . . the opportunity to learn all phases of cannabis product production, including, but not limited to, planting, cultivating, harvesting, curing, manicuring, processing, packaging and/or marketing” cannabis. Although Marino and Callanan were not apprentices themselves, they were permitted to “embed themselves alongside such apprentices . . . to better inform their understanding” of the farm’s “unique and distinctive processes, procedures and branding elements.” At some point in time, Marino and Callanan began performing the duties assigned to the apprentices, including cultivating, harvesting, and processing cannabis. The Menkens contend “the substantial majority” of the work Marino and Callanan did on the farm was related to their independent media and consulting business. The Menkens also allege, however, that by November 2019, Marino and Callanan were failing to perform media and consulting services and were instead spending most of their time harvesting and processing cannabis. Marino and Callanan also began demanding sums of money “they believed they were entitled to under California’s wage and hour laws.” At this point, the parties’ relationship “became openly hostile” and Marino and Callanan (allegedly) set fire to a building that was used as an office and sleeping quarters, causing over $100,000 in damages. Marino and Callanan thereafter “embark[ed] on a campaign of harassing, defamatory and extortionate conduct” that included threatening to release photos and

3 videos that showed the Menkens “ ‘doing VERY illegal actions’ ” unless the Menkens (1) paid them $630,000, and (2) “convert[ed] them to wage/hour employees.” Based on these allegations, the Menkens asserted causes of action against Marino and Callanan for negligent and/or malicious destruction of property; civil conspiracy/extortion; intentional infliction of emotional distress; misappropriation of trade secrets; tortious breach of contract; and breach of the implied covenant of good faith and fair dealing. Callanan’s Cross-complaint Callanan then filed a cross-complaint against the Menkens, and it is Callanan’s cross-complaint that is the subject of the underlying anti-SLAPP motion.4 According to the allegations in Callanan’s cross-complaint, the Menkens operate a licensed cannabis farm in Northern California, and Callanan was employed by the Menkens to work on the farm. He alleges the Menkens deliberately misclassified him and others as independent contractors in order to deny them protections afforded to employees under California wage and hour laws. More particularly, he alleges the Menkens offered him a job in May 2019 and verbally agreed to pay him $30,000 for the six-month growing season; later, however, they presented him with a written contract that stated he would receive a salary of $30,000 per year and a production bonus of $30 per pound of cannabis harvested. He alleges various claims that he was not paid proper wages and that the Menkens ordered him to stay on the farm and threatened to reduce his production bonus if he did not stay. Callanan also alleges he was severely burned in a fire in the farm’s bunkhouse (which is presumably the same fire that the Menkens allege he and Marino intentionally set), and the Menkens thereafter “began a vengeful tirade” against him. He alleges the

4 We note that Callanan’s cross-complaint is virtually identical to Marino’s complaint.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Castleman v. Sagaser CA5
216 Cal. App. 4th 481 (California Court of Appeal, 2013)
Century 21 Chamberlain & Associates v. Haberman
173 Cal. App. 4th 1 (California Court of Appeal, 2009)
Finch v. Brenda Raceway Corp.
22 Cal. App. 4th 547 (California Court of Appeal, 1994)
Damon v. Ocean Hills Journalism Club
102 Cal. Rptr. 2d 205 (California Court of Appeal, 2000)
Tuchscher Development Enterprises, Inc. v. San Diego Unified Port District
132 Cal. Rptr. 2d 57 (California Court of Appeal, 2003)
Kajima Engineering & Construction, Inc. v. City of Los Angeles
116 Cal. Rptr. 2d 187 (California Court of Appeal, 2002)
Navellier v. Sletten
52 P.3d 703 (California Supreme Court, 2002)
Equilon Enterprises v. Consumer Cause, Inc.
52 P.3d 685 (California Supreme Court, 2002)
City of Cotati v. Cashman
52 P.3d 695 (California Supreme Court, 2002)
Park v. Bd. of Trs. of the Cal. State Univ.
393 P.3d 905 (California Supreme Court, 2017)
Jsj Limited Partnership v. Mehrban
205 Cal. App. 4th 1512 (California Court of Appeal, 2012)
Young v. Tri-City Healthcare District
210 Cal. App. 4th 35 (California Court of Appeal, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
Callanan v. Grizzly Designs CA3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/callanan-v-grizzly-designs-ca3-calctapp-2022.