Corzac v. City and County of San Francisco CA1/4

CourtCalifornia Court of Appeal
DecidedDecember 4, 2013
DocketA135767
StatusUnpublished

This text of Corzac v. City and County of San Francisco CA1/4 (Corzac v. City and County of San Francisco CA1/4) 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
Corzac v. City and County of San Francisco CA1/4, (Cal. Ct. App. 2013).

Opinion

Filed 12/4/13 Corzac v. City and County of San Francisco CA1/4 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION FOUR

CORZAC, INC. et al., Plaintiffs and Appellants, A135767 v. THE CITY AND COUNTY OF SAN (San Francisco City & County FRANCISCO et al., Super. Ct. No. CGC-10-505813) Defendants and Respondents.

I. INTRODUCTION Clarice Lacau and Ricci Cornell owned a restaurant and live entertainment venue located on property leased from the City and County of San Francisco (City), acting through the San Francisco Port Commission (Port). The City terminated the lease following two fatal shootings outside their establishment. Media coverage included statements from Port officials regarding the termination of the lease. Port officials stated that, among other grounds for terminating the lease, the business was not operating within the terms of the lease. Lacau, Cornell, and their business sued the City, the Port, and certain Port officials (respondents). This appeal concerns only a cause of action for defamation, which was premised on the allegedly false statements regarding the failure to comply with the lease.

1 Respondents moved in the trial court to strike the defamation cause of action pursuant to California’s anti-SLAPP statute (Code Civ. Proc., § 425.16).1 The trial court granted the motion, finding (a) respondents’ statements regarding the termination of the lease arose from protected activity, and (b) plaintiffs had failed to show they could prevail on their defamation claim. We agree with the trial court, and affirm. II. FACTUAL AND PROCEDURAL BACKGROUNDS Lacau and Cornell leased a building located at Pier 50 on San Francisco’s waterfront beginning in 1994. From this location they ran a business called Jelly’s, a Dance Café (Jelly’s). Although the lease provided the premises “shall be used for a Restaurant and Bar and for no other purposes,” Jelly’s provided musical entertainment from its inception, according to Cornell. This included salsa dancing and other dancing events. Cornell believed Port officials were aware that Jelly’s provided dancing and musical entertainment, and that they had no objections. Jelly’s also had licenses from other City departments, including the San Francisco Entertainment Commission (Entertainment Commission). The live music and salsa dancing at Jelly’s was popular. Unfortunately, there were three shootings, two fatal, outside of the establishment following events at Jelly’s. Following the second fatal shooting on July 12, 2010, the Entertainment Commission suspended the establishment’s operating license for seven days. Following the suspension, the owners of Jelly’s met with the police to develop a plan that would satisfy the police and the Entertainment Commission that Jelly’s could safely resume operations. On July 19, 2010, however, the Port, acting through Susan Reynolds, the deputy director of its real estate department, issued a 30-day notice of termination of the lease. At the time, the tenancy was month to month.

1 SLAPP is an acronym for “strategic lawsuit against public participation.” (Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53, 57.) All further statutory references are to the Code of Civil Procedure unless otherwise noted.

2 The July 2010 fatal shooting was reported in the San Francisco media. Given that it was not the first shooting connected to Jelly’s, and there had been other recent shootings linked to nightclubs in the City, the media followed up on the story. There were reports not only about the shooting, but also about the suspension of the business’s entertainment license and the subsequent lease termination. One news account described the shooting as “The killing that shoved Jelly’s into the limelight . . . .” A July 20, 2010 story published in the San Francisco Examiner newspaper reported the termination of the lease (“Port of SF boots Jelly’s club after fatal shooting”). The story included a quote from Port spokeswoman Renee Dunn Martin: “We just felt that it’s in the best interest of the Port, and the best interests of the public, that we not continue their lease.” Martin continued: “It’s really more about concern about public safety, from the Port’s perspective.” According to the story, Martin also commented that the police had been called to Jelly’s numerous times over the years, and that the lease permitted a full-service restaurant, not a nightclub. Patrons of Jelly’s came forward to support the establishment. A July 28, 2010 story in the Bay City News reported on plans by supporters of Jelly’s to attend an Entertainment Commission meeting (“Jelly’s Supporters Protest Closing of Club Following Shooting”). Once again the story included remarks from Martin, who indicated the shooting was the main reason for the eviction. Martin also pointed to noise complaints and to the Port’s view that Jelly’s was operating outside its lease as a dance club when the lease provided for a full-service restaurant. The story quoted Martin as saying, “It might be the public’s perspective that this is a great club and many people enjoy going there, and I can understand that, but at the same time we have a contract agreement with the leaseholders there . . . . [¶] When they go outside of their contract agreement, that gives us the right to exercise contract termination if we feel that’s necessary, which we obviously did.” Martin denied a claim by Jelly’s supporters that the Port was evicting Jelly’s in order to reclaim valuable waterfront property for redevelopment.

3 A press release dated August 9, 2010, and signed by Lacau and Cornell, announced a “Protest Rumba” that was to take place in front of the Port offices on August 13. The release stated that Jelly’s was being evicted after complaining about the Port’s sewage system. The release suggested the stated reasons for the eviction—the shooting and lease violations—were a pretext for the eviction. Members of the community were encouraged to support Jelly’s by attending the protest, and by signing an online petition to save Jelly’s. Eventually, Lacau, Cornell, Jelly’s, and a corporate operating entity, CorZac, Inc., sued over the eviction of Jelly’s. In a first amended complaint for damages and injunctive relief (FAC), they accused the City, the Port and others of breaching the lease, and retaliating against Jelly’s for complaining about the Port’s sewage system. Plaintiffs alleged: “Since June of 2010, Jelly’s has repeatedly told [respondents] that the Port’s sewage system around Jelly’s is not functioning properly and causing serious, ongoing damage to both Jelly’s and the environmental health of the San Francisco Bay. The complaint included a cause of action for defamation against respondents alleging they made false statements about plaintiffs to the media that were published for “public consumption.” The general factual allegations of the FAC attributed the defamatory statements to Martin and Reynolds. The complaint declared: “By falsely alleging that Jelly’s had engaged in illegitimate and unauthorized operations, the Port damaged the reputations of Jelly’s and its owners.” Respondents filed a special motion to strike the defamation cause of action pursuant to section 425.16. They contended that statements by Martin and Reynolds were protected activity under the anti-SLAPP statute, and that plaintiffs could not demonstrate a probability of success on the merits of their defamation claim.

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Corzac v. City and County of San Francisco CA1/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corzac-v-city-and-county-of-san-francisco-ca14-calctapp-2013.