Greka Integrated, Inc. v. Lowrey

35 Cal. Rptr. 3d 684, 133 Cal. App. 4th 1572
California Court of Appeal·Decided November 15, 2005·No. B179572·Published·Cited by 22 cases

Opinion

35 Cal.Rptr.3d 684 (2005)
133 Cal.App.4th 1572

GREKA INTEGRATED, INC., Plaintiff and Appellant,
v.
Gary LOWREY, Defendant and Respondent.

No. B179572.

Court of Appeal, Second District, Division Six.

November 15, 2005.

*686 Jeffrey B. Valle, Steven M. Ragona; Valle & Associates, for Appellant.

Gary R. Ricks, Brigham J. Ricks, Santa Barbara; Ricks & Associates, for Respondent.

YEGAN, J.

Greka Integrated, Inc. sued a former employee, Gary Lowrey, for breach of contract and conversion. Lowrey moved to *687 strike the complaint pursuant to the anti-SLAPP statute, Code of Civil Procedure section 425.16.[1] The trial court granted the motion, concluding that Greka's causes of action arose out of Lowrey's protected speech and that Greka had not shown a probability of prevailing on the merits. Greka contends the trial court erred because the motion was untimely, its causes of action are not based on protected activities and its claims have at least minimal merit. We affirm.

Facts and Procedural History

Greka owns and operates an integrated oil, gas and refinery business in Santa Maria. In August 2001, it hired Lowrey to work as a safety manager. Before he began work, Lowrey was required to sign a nondisclosure agreement in which he agreed that, ". . . during and after the term of my employment with Greka Energy I shall keep in confidence any proprietary or confidential information of the Company." About a year later Lowrey was unable to continue his employment and took a medical leave of absence. Greka alleges that Lowrey only took with him e-mails and other documents belonging to the company. Greka also alleges that he breached the nondisclosure agreement by disclosing those documents to third parties, including its competitors.

Lowrey contends that he discovered many violations of worker safety and environmental regulations while employed at Greka. He claims he was required to take the medical leave because Greka refused to correct these conditions, causing Lowrey to experience debilitating stress. Lowrey contends he had permission to take the e-mails and other documents home and that he retained them only because he never returned to work. Although Greka later asked him to return some company property that he kept at his house, it never asked for the documents. He contends that he never saw documents marked or treated as confidential or proprietary, and was not privy to Greka's confidential or proprietary information.

After leaving Greka, Lowrey testified at a deposition in Lopez v. Greka Energy, et al. (Super. Ct. Santa Barbara County No. 1090413) (hereafter, Lopez), a personal injury suit filed against Greka by an agricultural worker who was injured in a natural gas explosion at one of Greka's facilities. The Santa Barbara County District Attorney filed criminal charges against two Greka employees for recklessly causing the explosion, and a civil action against Greka itself for violating Health and Safety Code section 42402.3, subdivision (c) in connection with the same incident.[2] The employees pleaded guilty to misdemeanors. Lowrey testified at the trial in the action against Greka. Greka later paid a civil penalty of $200,000 pursuant to a settlement with the County.

The district attorney's office has also investigated Greka in connection with other worker safety and environmental contamination incidents. Lowrey cooperated in these investigations, granting interviews and providing the district attorney with the e-mails and documents he retained after leaving his employment at Greka.

*688 After Greka settled the district attorney's first civil action against it, it became involved in a contractual dispute with its competitor Unocal. Although the Unocal dispute did not involve any safety issues, Lowrey's name appeared on a Unocal witness list. Greka inferred from this circumstance that Lowrey was sharing its confidential information with nongovernmental third parties.

On August 23, 2004, Greka filed its complaint against Lowrey. The complaint alleges two causes of action. First, Greka alleges that Lowrey breached the nondisclosure agreement because he took Greka documents with him when he left his job and "has subsequently disclosed this proprietary and confidential material to numerous third parties." Second, Greka alleges a cause of action for conversion, claiming that Lowrey "took various proprietary and confidential material of Greka and converted the same to his own use."

About three weeks after Greka filed its complaint, the Santa Barbara County District Attorney's Office filed a second civil action against Greka. One cause of action sought to enjoin Greka's suit against Lowrey. Another named Greka's counsel of record as a defendant. Greka filed an ex parte application to stay proceedings in this action, to permit it to retain new counsel. At the hearing on that application, Lowrey served Greka's counsel with the motion to strike pursuant to section 425.16. The trial court granted the ex parte application and stayed proceedings in this action, as well as in the county's action against Greka.

Two days later, on September 24, 2004, the trial court held another ex parte hearing attended by counsel for all parties, including Greka. The trial court "lifted" the stay and, after conferring with all parties, scheduled Lowrey's anti-SLAPP motion to strike for October 26, 2004, without objection by Greka. At that hearing, the trial court granted the motion to strike without leave to amend, finding that the motion was timely, that Greka's causes of action arose out of Lowrey's protected speech, and that Greka had little probability of succeeding on the merits of its claims.

Standard of Review

"The consideration of anti-SLAPP motions is a two-step process. (Navellier v. Sletten (2002) 29 Cal.4th 82, 88, 124 Cal.Rptr.2d 530, 52 P.3d 703.) The first step is to determine whether `the defendant has made a threshold showing that the challenged cause of action is one arising from protected activity.' (Ibid.) Only if such showing is made should the court proceed on to the second step, which is to determine whether the plaintiff has demonstrated a probability of prevailing on the claim. (Ibid.; Equilon Enterprises v. Consumer Cause Inc. (2002) 29 Cal.4th 53, 67, 124 Cal.Rptr.2d 507, 52 P.3d 685.)" (Commonwealth Energy Corp. v. Investor Data Exchange, Inc. (2003) 110 Cal.App.4th 26, 31, 1 Cal.Rptr.3d 390.) We independently review both the question of whether Greka's causes of action arise from protected activity and the question of whether Greka has shown a probability of prevailing on the merits. (Gallimore v. State Farm Fire & Casualty Ins. Co. (2002) 102 Cal.App.4th 1388, 1396, 126 Cal.Rptr.2d 560; ComputerXpress Inc. v. Jackson (2001) 93 Cal.App.4th 993, 999, 113 Cal.Rptr.2d 625.)

Timeliness

Greka contends the trial court lacked jurisdiction to grant Lowrey's motion because it was heard more than 30 days after it was served. Section 425.16, subdivision (f) provides that a special motion to strike "shall be noticed for hearing *689 not more than 30 days after service unless the docket conditions of the court require a later hearing." This 30-day deadline is mandatory. (Decker v. U.D. Registry Inc. (2003) 105 Cal.App.4th 1382, 1389, 129 Cal.Rptr.2d 892.) It

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