City of Cotati v. Cashman

52 P.3d 695, 124 Cal. Rptr. 2d 519, 29 Cal. 4th 69, 2002 Daily Journal DAR 9950, 2002 Cal. Daily Op. Serv. 7957, 2002 Cal. LEXIS 5702
CourtCalifornia Supreme Court
DecidedAugust 29, 2002
DocketS099999
StatusPublished
Cited by704 cases

This text of 52 P.3d 695 (City of Cotati v. Cashman) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Cotati v. Cashman, 52 P.3d 695, 124 Cal. Rptr. 2d 519, 29 Cal. 4th 69, 2002 Daily Journal DAR 9950, 2002 Cal. Daily Op. Serv. 7957, 2002 Cal. LEXIS 5702 (Cal. 2002).

Opinions

Opinion

WERDEGAR, J.

We must decide in this case whether a municipality’s state court action for declaratory relief respecting the constitutionality of a mobilehome park rent stabilization ordinance, filed in response to a federal court declaratory relief action brought by park owners respecting the same ordinance, constitutes a strategic lawsuit against public participation [72]*72(SLAPP)1 within the purview of Code of Civil Procedure section 425.16 (section 425.16; the anti-SLAPP statute). We conclude it does not.2

Background

In 1998, the City of Cotati (City) adopted a mobilehome park rent stabilization program. (Cotati Ord. No. 680, adding ch. 19.14 to Cotati Mun. Code.) After City enacted the program, Gene Cashman and others, owners of mobilehome parks (collectively Owners), sued City in the United States District Court for the Northern District of California. Owners sought declaratory relief, an injunction, and damages allegedly resulting from City’s ordinance. In requesting a declaratory judgment, Owners alleged that “the following question [is] in actual controversy between the parties: Whether [City] effects an uncompensated regulatory taking by implementing and enforcing the rent-restriction Ordinance, in violation of the Fifth and Fourteenth Amendments to the United States Constitution.”

Subsequently, City sued Owners in Sonoma County Superior Court. City’s complaint outlined a cause of action for declaratory relief. City alleged that “An actual controversy has arisen and now exists betweén [City] and [Owners] relative to their respective rights and duties in that [City] contends that the [mobilehome park rent stabilization] ordinance and resolution are valid and enforceable, both on their face and as construed by [City], On the other hand, [Owners] contend that said ordinance, on its face is unenforceable, invalid, and void as effecting an unconstitutional taking . . . .” On information and belief, City also alleged that Owners contended the ordinance effected a taking in violation of the California Constitution. City sought a judgment “declaring the respective rights and duties of the parties under the ordinance in question and that the ordinance is constitutional, valid, and enforceable on its face and as applied to [Owners].” After the state court action was filed, City filed a motion in federal court asking that Owners’ action be dismissed on abstention grounds. (Younger v. Harris (1971) 401 U.S. 37 [91 S.Ct. 746, 27 L.Ed.2d 669].)

Owners shortly thereafter moved in state court, under the anti-SLAPP statute, to strike City’s complaint. Owners argued that City’s filing of its [73]*73state court action arose from Owners’ filing of their earlier federal action and, therefore, fell within the ambit of the anti-SLAPP statute. As evidence that City’s state court action was a SLAPP, Owners pointed to references in City’s complaint to Owners’ contention in the federal action that City’s ordinance constituted a taking.

City concedes that its purpose in filing the state court action was to gain a more favorable forum in which to litigate the constitutionality of its mobile-home park rent stabilization ordinance. Certain potentially applicable state law decisions on mobilehome park rent regulation, City notes, were favorable to its position in the underlying dispute. (See Montclair Parkowners Assn. v. City of Montclair (1999) 76 Cal.App.4th 784 [90 Cal.Rptr.2d 598]; Sandpiper Mobile Village v. City of Carpinteria (1992) 10 Cal.App.4th 542 [12 Cal.Rptr.2d 623].) City also concedes that in filing the state court action it intended subsequently to seek to persuade the federal court to abstain from hearing Owners’ suit.

The trial court ruled in favor of Owners on the anti-SLAPP motion. Noting that City’s action was filed shortly after Owners’ federal action, involved “the exact contention” made by Owners therein, and named only Owners as defendants, the trial court concluded Owners had, at the outset, carried their burden to show that the action “arose out of [Owners’] right of petition under the U.S. Constitution as defined in [section 425.16].” (See §425.16, subd. (b)(1).) Having concluded that Owners had carried their initial burden, the trial court considered whether City had demonstrated a probability of prevailing on its claim. Concluding City had not, the trial court granted Owners’ anti-SLAPP motion and ordered City’s action dismissed. The Court of Appeal reversed. We granted Owners’ petition for review.

Discussion

Section 425.16 provides, inter alia, 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 shall be subject to a special motion to strike, unless the court determines that the plaintiff has established that there is a probability that the plaintiff will prevail on the claim.” (Id., subd. (b)(1).) “As used in this section, ‘act in furtherance of a person’s right of petition or free speech under the United States or California Constitution in connection with a public issue’ includes: (1) any written or oral statement or writing made before a legislative, executive, or judicial proceeding, or any other official proceeding authorized by law; (2) any written or oral statement [74]*74or writing made in connection with an issue under consideration or review by a legislative, executive, or judicial body, or any other official proceeding authorized by law . . . .” (Id., subd. (e).)

Owners in their petition asked us to address two issues—whether a defendant in order to prevail on an anti-SLAPP motion must demonstrate that the targeted action was intended to chill the defendant’s free speech or petition rights; and whether a moving defendant must show that the action had the effect of chilling such rights. We conclude that defendants moving under the anti-SLAPP statute have neither burden. Nevertheless, because City’s action arose from the underlying controversy respecting the validity of City’s ordinance rather than from Owners’ federal lawsuit, we further conclude that City’s action was not subject to a special motion to strike under section 425.16.

A. Intent to Chill

City states that it filed this action in an attempt to obtain a more favorable forum than federal court in which to litigate the constitutionality of its mobilehome park rent stabilization ordinance. “City’s initial goal was to use the state action to persuade the federal court to abstain in favor of the state proceeding.” City in fact filed a motion in federal district court asking that the federal action be dismissed on a number of grounds, including abstention in favor of the state action. “A secondary, alternative goal,” City claims, “was to try to obtain a quick favorable decision upholding the Ordinance which then could be used for res judicata purposes in the federal court.” Owners argue that City’s real intention in filing this action went beyond the desire for a favorable forum. Owners speculate City actually “hoped to discourage [Owners] from continuing to litigate by burdening them with defending a new, costly, and duplicative lawsuit in a second jurisdiction.”

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52 P.3d 695, 124 Cal. Rptr. 2d 519, 29 Cal. 4th 69, 2002 Daily Journal DAR 9950, 2002 Cal. Daily Op. Serv. 7957, 2002 Cal. LEXIS 5702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-cotati-v-cashman-cal-2002.