Equilon Enterprises v. Consumer Cause, Inc.

102 Cal. Rptr. 2d 371, 85 Cal. App. 4th 654
CourtCalifornia Court of Appeal
DecidedApril 11, 2001
DocketB130701
StatusPublished
Cited by4 cases

This text of 102 Cal. Rptr. 2d 371 (Equilon Enterprises v. Consumer Cause, Inc.) 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
Equilon Enterprises v. Consumer Cause, Inc., 102 Cal. Rptr. 2d 371, 85 Cal. App. 4th 654 (Cal. Ct. App. 2001).

Opinion

102 Cal.Rptr.2d 371 (2000)
85 Cal.App.4th 654

EQUILON ENTERPRISES, LLC, Plaintiff and Appellant,
v.
CONSUMER CAUSE, INC., Defendant and Respondent.

No. B130701.

Court of Appeal, Second District, Division Two.

December 18, 2000.
Review Granted April 11, 2001.

*373 McCutchen, Doyle, Brown & Enersen, Leslie G. Landau, Colleen P. Doyle, Deborah A. Nolan and Robert A. Brundage, San Francisco, for Plaintiff and Appellant.

*374 Pillsbury Madison & Sutro and Michael J. Steel, San Francisco, for California Chamber of Commerce and Chemical Industry Council of California as Amicus Curiae on behalf of Plaintiff and Appellant.

Mehrban, Ghalchi & Yeroushalmi, Kamran Ghalchi, Morse Mehrban and Reuben Yeroushalmi, Los Angeles, for Defendant and Respondent.

Bill Lockyer, Attorney General, Richard M. Frank, Chief Assistant Attorney General, Craig C. Thompson, Acting Senior Assistant Attorney General and Edward G. Weil, Deputy Attorney General, for The People of the State of California as Amicus Curiae on behalf of Defendant and Respondent.

*372 BOREN, P.J.

Proposition 65, formally known as the Safe Drinking Water and Toxic Enforcement Act of 1986, authorizes private citizens to sue to enforce its provisions after first giving written notice of a water pollution violation. The notice encourages polluters to "clean up their act" before they are sued, and it alerts government authorities to water pollution problems. A consumer group sent a notice of intent to sue under Proposition 65 to two oil companies and to several government agencies. The consumer group's notice asserted that the oil companies' gas stations are releasing toxic chemicals into the soil and polluting local groundwater.

The oil companies targeted by the Proposition 65 notice promptly responded to the specter of litigation with a preemptive lawsuit against the consumer group. The trial court dismissed the oil companies' case on the grounds that it is an impermissible strategic lawsuit against public participation (SLAPP). We affirm because (1) Proposition 65 notices fall within the type of speech or right to petition protected by the SLAPP statute, and (2) the oil companies are unlikely to prevail on their claims.

FACTS

On October 14, 1998, respondent Consumer Cause gave notice of its intent to sue for alleged violations of Proposition 65. The notice asserts that 78 specified Shell and Texaco gas stations in Los Angeles and Ventura Counties have been polluting local groundwater by discharging benzene, lead and toluene into the soil beneath their facilities since October 9, 1994. The notice was sent to the state Attorney General, the Los Angeles County District Attorney, the Los Angeles City Attorney, Shell Pipe Line Corporation and Texaco, Inc.

Appellant Equilon Enterprises L.L.C., the successor-in-interest to Shell and Texaco, did not seek clarification of the Proposition 65 notice from Consumer Cause. Instead, Equilon filed a lawsuit for declaratory and injunctive relief against Consumer Cause on December 17, 1998. Equilon seeks a judicial declaration that the Proposition 65 notice served by Consumer Cause fails to comply with the requirements of the California Code of Regulations. Equilon claims that the notice was not served on the proper parties and does not describe the alleged toxic chemical discharges with sufficient particularity. Equilon also seeks to enjoin Consumer Cause from filing a Proposition 65 enforcement action.

Consumer Cause asked the trial court to strike Equilon's complaint on the grounds that it violates the statutory prohibition on SLAPP suits. The trial court agreed and dismissed Equilon's action. Equilon appeals.[1]

DISCUSSION

1. Overview of the SLAPP Statute

In 1992, the Legislature enacted a law regulating SLAPP's, finding that "there *375 has been a disturbing increase in lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for redress of grievances." (Code Civ. Proc, § 425.16, subd. (a).)[2] The statute is aimed at "[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...." (§ 425.16, subd. (b)(1).)

An act in furtherance of a person's constitutional right of petition or free speech includes: (1) any statements made in an official proceeding before any of the three branches of government; (2) any statements made in connection with an issue under consideration or review by a government body; (3) any statements made in a public forum in connection with an issue of public interest; or (4) "any other conduct in furtherance of the exercise of the constitutional right of petition or the constitutional right of free speech in connection with a public issue or an issue of public interest." (§ 425.16, subd. (e).)

The Legislature directs that the SLAPP statute "be construed broadly," declaring that "it is in the public interest to encourage continued participation in matters of public significance, and that this participation should not be chilled through abuse of the judicial process." (§ 425.16, subd. (a).) The goal is to eliminate meritless or retaliatory litigation at an early stage of the proceedings. (Liu v. Moore (1999) 69 Cal.App.4th 745, 750, 81 Cal. Rptr.2d 807; Macias v. Hartivell (1997) 55 Cal.App.4th 669, 672, 64 Cal.Rptr.2d 222.)

Legal commentators have identified a SLAPP as (1) a civil complaint or counter-claim for monetary or injunctive relief, (2) filed against nongovernment individuals or groups, (3) because of their communication to the government or the electorate, (4) on an issue of public interest or concern. (Braun, Increasing SLAPP Protection: Unburdening the Right of Petition in California (1999) 32 U.C. Davis L.Rev. 965, 969, citing Pring, SLAPPs: Strategic Lawsuits Against Public Participation (1989) 7 Pace Envtl. L.Rev. 3, 8; Tate, California's Anti SLAPP Legislation: A Summanj of and Commentary on Its Operation and Scope (2000) 33 Loyola L.A. L.Rev. 801, 803.)

The paradigm SLAPP arises from an environmental dispute. Typically, a citizens' public interest group protests against the business activities of a well-funded private enterprise, claiming that the enterprise is causing or will cause environmental damage. The enterprise files a SLAPP against the environmental activists claiming defamation, interference with prospective economic advantage, nuisance, emotional distress, and so on. (Wilcox v. Superior Court (1994) 27 Cal.App.4th 809, 815-816, 33 Cal.Rptr.2d 446.) The SLAPP delays, distracts, and imposes litigation costs on the activists. (Dixon v. Superior Court (1994) 30 Cal.App.4th 733, 741, 36 Cal.Rptr.2d 687.) "[W]hile SLAPP suits `masquerade as ordinary lawsuits' the conceptual features which reveal them as SLAPP's are that they are generally meritless suits brought by large private interests to deter common citizens from exercising their political or legal rights or to punish them for doing so." (Wilcox v. Superior Court, supra, 27 Cal.App.4th at p. 816, 33 Cal.Rptr.2d 446.)

A lawsuit that effectively curtails a person's right to petition or free speech is subject to a special motion to strike. (§ 425.16, subd. (b)(1).) There are two components the court must consider when such a motion is made.

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