Kajima Engineering & Construction, Inc. v. City of Los Angeles

116 Cal. Rptr. 2d 187, 95 Cal. App. 4th 921, 2002 Cal. Daily Op. Serv. 950, 2002 Daily Journal DAR 1173, 2002 Cal. App. LEXIS 1005
CourtCalifornia Court of Appeal
DecidedJanuary 30, 2002
DocketB149642
StatusPublished
Cited by140 cases

This text of 116 Cal. Rptr. 2d 187 (Kajima Engineering & Construction, Inc. v. City of Los Angeles) 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
Kajima Engineering & Construction, Inc. v. City of Los Angeles, 116 Cal. Rptr. 2d 187, 95 Cal. App. 4th 921, 2002 Cal. Daily Op. Serv. 950, 2002 Daily Journal DAR 1173, 2002 Cal. App. LEXIS 1005 (Cal. Ct. App. 2002).

Opinion

Opinion

PERLUSS, J.

Kajima Engineering and Construction, Inc. (Kajima) sued the City of Los Angeles (the City), claiming it was owed payment for work on a reconstruction project at the Badger Avenue Bridge in the Port of Los *924 Angeles. The City cross-complained, alleging causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing. The City later amended its cross-complaint and added 19 causes of action.

Kajima moved under Code of Civil Procedure section 425.16 1 to strike the amended cross-complaint as a SLAPP (strategic lawsuits against public participation) suit. The trial court initially granted the motion. On the City’s motion, however, the trial court reversed its prior decision and reinstated all but the 12th cause of action in the amended cross-complaint. Kajima appeals, contending the other 18 causes of action added by the amended cross-complaint should have been stricken. We affirm. 2

The test for determining whether an action is a SLAPP suit within the purview of section 425.16 is generally well defined by the case law. (See, e.g., Briggs v. Eden Council for Hope & Opportunity (1999) 19 Cal.4th 1106 [81 Cal.Rptr.2d 471, 969 P.2d 564]; Wilcox v. Superior Court (1994) 27 Cal.App.4th 809, 815-822 [33 Cal.Rptr.2d 446].) We publish this opinion, however, to emphasize that a cross-complaint or independent lawsuit filed in response to, or in retaliation for, threatened or actual litigation is not subject to the anti-SLAPP statute simply because it may be viewed as an oppressive litigation tactic. No lawsuit is properly subject to a special motion to strike under section 425.16 unless its allegations arise from acts in furtherance of the right of petition or free speech.

Factual and Procedural Background

Kajima sued the City for breach of contract and related causes of action arising from a reconstruction project on the Badger Avenue Bridge in the *925 Port of Los Angeles for which the City had hired Kajima to perform certain work. Kajima alleges it completed the work required under the contract, but the City failed to pay the balance due as well as additional sums incurred during performance of the contract. Kajima also claims it is entitled to indemnity for attorney fees it incurred in lawsuits arising out of the project. The lawsuit seeks damages of approximately $35 million, plus prejudgment interest, costs and attorney fees.

The City cross-complained against Kajima, alleging breach of contract and breach of the implied covenant of good faith and fair dealing in connection with Kajima’s bidding and work on the project. 3

The City later filed a first amended cross-complaint, alleging 19 additional causes of action: (1) fraud; (2) violation of the Public Contract Code (two causes of action); (3) unfair business practices; (4) embezzlement; (5) violation of the False Claims Act (10 causes of action); and (6) violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) (four causes of action). In the amended cross-complaint, the City named not only Kajima but also its two parent corporations as cross-defendants. The amended cross-complaint seeks (after trebling damages on certain causes of action) approximately $400 million in damages.

Kajima (but not its parent corporations) moved to strike the amended cross-complaint as a SLAPP suit under section 425.16, contending the cross-complaint “arises from, and is in patent retaliation for, Kajima’s exercise of its constitutional right to petition this court for redress by filing the complaint in this action.”

The trial court initially granted the motion in its entirety, ruling that Kajima’s filing of the complaint constituted “a writing made before an official body satisfying the requirement that a public interest be present in order to satisfy the requirements of the statute.” It also concluded the City had failed to meet its burden to demonstrate a probability that it would prevail on the merits of its amended cross-complaint. Accordingly, the court struck the amended cross-complaint.

The City filed a motion to vacate the trial court’s statement of decision, for a new trial, or for modification of the decision. After hearing this motion *926 the trial court determined the entire amended cross-complaint should not have been stricken. The court found that only the 12th cause of action for violation of the False Claims Act, based on the filing of Kajima’s underlying complaint, “arises from a public interest, namely, the exercise of free speech as required by the statute.” The court reinstated the amended cross-complaint, striking only the 12th cause of action.

Kajima filed a timely notice of appeal. 4

Contentions

Kajima contends the trial court erred in striking only the 12th cause of action because the City filed the amended cross-complaint “in retaliation for Kajima’s exercise of its constitutional right to petition,” that is, the filing of a complaint against the City to recover additional sums relating to the reconstruction project.

Discussion

1. Section 425.16 and the Nature of a SLAPP Suit.

Subdivision (a) of section 425.16 defines the Legislature’s purpose in enacting the anti-SLAPP statute: “The Legislature finds and declares that there has been a disturbing increase in lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom and petition for the redress of grievances. The Legislature finds and declares 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. To this end, this section shall be construed broadly.” (§ 425.16, subd. (a).) Based on these legislative findings, “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.” (§ 425.16, subd. (b)(1).)

Under the statute, an “ ‘act in furtherance of a person’s right of petition or free speech under the United States or California Constitution in connection *927

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Bluebook (online)
116 Cal. Rptr. 2d 187, 95 Cal. App. 4th 921, 2002 Cal. Daily Op. Serv. 950, 2002 Daily Journal DAR 1173, 2002 Cal. App. LEXIS 1005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kajima-engineering-construction-inc-v-city-of-los-angeles-calctapp-2002.