Financial Corp. of America v. Wilburn

189 Cal. App. 3d 764, 234 Cal. Rptr. 653, 1987 Cal. App. LEXIS 1407
CourtCalifornia Court of Appeal
DecidedFebruary 18, 1987
DocketH001010
StatusPublished
Cited by48 cases

This text of 189 Cal. App. 3d 764 (Financial Corp. of America v. Wilburn) 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
Financial Corp. of America v. Wilburn, 189 Cal. App. 3d 764, 234 Cal. Rptr. 653, 1987 Cal. App. LEXIS 1407 (Cal. Ct. App. 1987).

Opinion

Opinion

AGLIANO, P. J.—

I

Plaintiffs appeal from a judgment entered after defendant’s general demurrer was sustained without leave to amend to their second amended complaint. At issue is the scope of the privilege afforded to publications and statements made by an attorney about an adversary prior to and in litigation.

We review a general demurrer under well-established principles. It presents the question of law whether the complaint, liberally construed, contains facts sufficient to entitle plaintiff to any relief. (B & P Development Corp. v. City of Saratoga (1986) 185 Cal.App.3d 949, 952-953, 959 [230 Cal.Rptr. 192].) “[W]e assume the truth of all material facts properly *769 pleaded in the complaint unless they are contradicted by facts judicially noticed [citations], but no such credit is given to pleaded contentions or legal conclusions. [Citations.] Specific factual allegations modify and limit inconsistent general statements.” (Id., at p. 953.)

II

A. Procedure

Plaintiffs’ original complaint was filed July 2, 1984. After demurrer was twice sustained with leave to amend, plaintiffs Financial Corporation of America and American Savings and Loan Association filed their second amended complaint on February 20,1985. After a hearing on June 12, 1985, the court sustained the demurrer of defendant William Wilburn without leave to amend. Plaintiffs purport to appeal from the order entered on June 12 sustaining the demurrer and from the subsequent order of July 29 denying plaintiffs’ motion for clarification or reconsideration of the June 12 order.

As defendant points out, an order sustaining a demurrer can only be reviewed on appeal from a subsequent judgment or order of dismissal and is not separately appealable. (Cornic v. Stewart (1918) 179 Cal. 242 [176 P. 164]; Youngblood v. Board of Supervisors (1978) 22 Cal.3d 644, 651 [150 Cal.Rptr. 242, 586 P.2d 556].) An order denying reconsideration of such a nonappealable order is not itself appealable either. (Genis v. Krasne (1956) 47 Cal.2d 241,249 [302 P.2d 289];/./. Weinrot & Son, Inc. v. Jackson (1985) 40 Cal.3d 327, 331 [220 Cal.Rptr. 103, 708 P.2d 682].) The notice of appeal filed on August 7, 1985, does not refer to the judgment entered on July 9 sustaining defendant’s demurrer. There is no indication this judgment was served on plaintiffs, however, nor was it brought to their attention by defendant in later opposing the motion for reconsideration. Though the notice of appeal refers to orders on different dates, we liberally construe it as from the judgment, when no one could have been misled that plaintiffs sought appellate review of the ruling on the demurrer, and the issues are fully briefed by both sides. (Cal. Rules of Court, rule 1(a); Collins v. City & Co. of S. F. (1952) 112 Cal.App.2d 719, 722-723 [247 P.2d 362]; Vibert v. Berger (1966) 64 Cal.2d 65 [48 Cal.Rptr. 886, 410 P.2d 390].)

B. The Complaint

The second amended complaint seeks actual and punitive damages from William Wilburn, an attorney, based on his activities, summarized as follows (with the alleging paragraph cited): He has made false accusations against plaintiffs, charging them with narcotics trafficking, obstructing justice, bribery, and deceptive and dishonest loan, accounting and other business *770 practices, (UU 6, 7.) He made these accusations in an action he filed on behalf of clients against plaintiffs and others, including certain of their officers, in United States District Court for the Northern District of California, Katen, et al. v. State Savings and Loan Association, et al. (No. C 84 20402 WAI) on June 22, 1984. (If 7.) The federal action purports to seek relief under the RICO, the Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. 1961 et seq.; which provides in § 1964 subd. (c), for recovery of treble damages and attorney’s fees) as well as other federal and state law causes of action. (If 7.) He also made these accusations before filing the federal action in March, April, May and June, 1984, (1) to “persons throughout Northern California,” and (2) to plaintiffs’ present and former employees, depositors, investors, and customers, from whom he sought confidential information. (If 6.)

Plaintiffs also complain defendant has threatened them with litigation, not only the federal action but other lawsuits, unless they make substantial payments to him. (U 14.) Plaintiffs also complain defendant filed and is maintaining the federal action. (UU 7, 10, 15, 19.)

Defendant engaged in these activities knowing the accusations were false, that they would receive attention from and be republished by the news media, 1 and that they were damaging to plaintiffs by virtue of the nature of their businesses, namely plaintiff Financial Corporation of America being a publicly traded corporation and the parent corporation of plaintiff American Savings and Loan Association (formerly State Savings and Loan), the largest savings and loan association in the country. (Till 10, 11, 12, 14.) The purpose behind all these activities is to have these accusations republished in the news media, to interfere with plaintiffs’ existing and prospective business with depositors, investors, and customers, and to otherwise damage plaintiffs’ businesses, and thereby to extort substantial money and property from plaintiffs as the price for ceasing. (UU 10, 13, 14, 19.) The sole purpose of filing the federal action is not to obtain the relief requested, but to shield these activities and future republications under the protective umbrella of privilege. (UU 15, 20.)

Plaintiffs’ first cause of action is for intentional interference with economic advantage and the second is for abuse of process.

Ill

A. Scope and Limits of Privilege for Statements Made in Course of Judicial Proceedings *771 By statute an action for defamation cannot be predicated on certain privileged oral or written statements. “A privileged publication or broadcast is one made ... 2. In any ... (2) judicial proceeding____” (Civ. Code, § 47.) “[T]he obvious purpose of section 47 [is] to afford litigants the utmost freedom of access to the courts to secure and defend their rights without fear of being harassed by actions for defamation.” (Albertson v. Raboff

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

Related

(PS) Henreid v. Haynes
E.D. California, 2025
Better Meat Co. v. Emergy, Inc.
E.D. California, 2023
Sharp v. Seven Arts Entertainment CA4/1
California Court of Appeal, 2022
Lo v. Lee
California Court of Appeal, 2018
Lo v. Lee
234 Cal. Rptr. 3d 824 (California Court of Appeals, 5th District, 2018)
Green v. Logan CA2/8
California Court of Appeal, 2014
Faunce v. Cate
222 Cal. App. 4th 166 (California Court of Appeal, 2013)
BCS Investments v. Lorenz CA4/1
California Court of Appeal, 2013
Chavez v. Indymac Mortgage Services
219 Cal. App. 4th 1052 (California Court of Appeal, 2013)
Wilson v. Hynek
207 Cal. App. 4th 999 (California Court of Appeal, 2012)
Tucker v. CBS Radio Stations, Inc.
194 Cal. App. 4th 1246 (California Court of Appeal, 2011)
MONEX DEPOSIT CO. v. Gilliam
680 F. Supp. 2d 1148 (C.D. California, 2010)
Pineda v. Williams-Sonoma Stores, Inc.
178 Cal. App. 4th 714 (California Court of Appeal, 2009)
Linear Technology v. Applied Materials
61 Cal. Rptr. 3d 221 (California Court of Appeal, 2007)
Linear Technology Corp. v. Applied Materials, Inc.
152 Cal. App. 4th 115 (California Court of Appeal, 2007)
Ameron Intern. Corp. v. Ins. Co. of Pa.
60 Cal. Rptr. 3d 55 (California Court of Appeal, 2007)
CDM Investors v. Travelers Casualty & Surety Co.
43 Cal. Rptr. 3d 669 (California Court of Appeal, 2006)
Visto Corp. v. Sproqit Technologies, Inc.
360 F. Supp. 2d 1064 (N.D. California, 2005)
Sylmar Air Conditioning v. Pueblo Contracting Services, Inc.
122 Cal. App. 4th 1049 (California Court of Appeal, 2004)
Palacin v. All State Insurance
14 Cal. Rptr. 3d 731 (California Court of Appeal, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
189 Cal. App. 3d 764, 234 Cal. Rptr. 653, 1987 Cal. App. LEXIS 1407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/financial-corp-of-america-v-wilburn-calctapp-1987.