Michael Mogan v. Airbnb Inc.

Court of Appeals for the Ninth Circuit·Decided August 9, 2024·No. 23-55489·Unpublished

Opinion

NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS AUG 9 2024 MOLLY C. DWYER, CLERK

U.S. COURT OF APPEALS

FOR THE NINTH CIRCUIT

MICHAEL MOGAN, No. 23-55489

Plaintiff-Appellant, D.C. No.

2:23-cv-00174-SB-JC

v.

AIRBNB, INC.; O’MELVENY AND MEMORANDUM* MYERS LLP; DAWN SESTITO; DAMALI TAYLOR; DAVE WILLNER; JEFF HENRY; SANAZ EBRAHINI,

Defendants-Appellees.

Appeal from the United States District Court for the Central District of California Stanley Blumenfeld, Jr., District Judge, Presiding

Submitted June 5, 2024**

Pasadena, California

Before: COLLINS and LEE, Circuit Judges, and RODRIGUEZ,*** District Judge.

*

This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3.

**

The panel unanimously concludes this case is suitable for decision without oral argument. See FED. R. APP. P. 34(a)(2).

***

The Honorable Xavier Rodriguez, United States District Judge for the Western District of Texas, sitting by designation.

Appellant Michael Mogan (“Mogan”), an attorney proceeding pro se, appeals (1) the district court’s order granting Appellee Airbnb, Inc. (“Airbnb”) and Appellee Dawn Sestito’s (“Sestito”) motion to strike Mogan’s claims under California’s Anti- Strategic Lawsuits Against Public Participation (“anti-SLAPP”) statute and to dismiss under Rule 12(b)(6), and (2) the district court’s order denying Mogan’s motions for reconsideration and leave to amend. We have jurisdiction under 28 U.S.C. § 1291, and we affirm.

The present appeal is the latest chapter in a long history of litigation initiated by Mogan against or related to Airbnb, either on behalf of himself or his client, Veronica McCluskey, a former Airbnb host. Since 2017, Mogan, either on his own behalf or on behalf of McCluskey, has initiated sixteen separate lawsuits all stemming from a 2017 Airbnb dispute between McCluskey, her co-hosts, and Airbnb.

In 2017, Mogan began representing McCluskey when her Airbnb account was deactivated after an Airbnb investigation found she had violated Airbnb’s terms of service and made defamatory statements about her Airbnb co-hosts. At first, Mogan’s representation of McCluskey centered on the dispute between McCluskey and her former co-hosts, William and Roxanne Hendricks. But Mogan’s representation of McCluskey and his personal stake later expanded, spawning other

lawsuits against Airbnb, its employees, and Airbnb’s counsel for the deactivation of McCluskey’s account and Airbnb’s litigation strategy.

Most importantly, Mogan, proceeding pro se, previously filed a wholly separate suit in the Northern District of California in 2021 against Airbnb and its employees, Dave Willner, Jeff Henry, and Sanaz Ebrahimi, as well as Sacks, Ricketts & Case LLP and two of its attorneys (the “2021 Northern District Airbnb Litigation”). In that case, Mogan asserted seven causes of action, including abuse of process and intentional infliction of emotional distress (“IIED”), related to sanctions obtained by Airbnb against Mogan in a prior state court litigation and Airbnb’s alleged failure to pay arbitration fees. O’Melveny & Myers (“O’Melveny”), specifically Sestito and Damali Taylor (“Taylor”), represented Airbnb and its employees and secured both the dismissal of Mogan’s claims and Rule 11 sanctions against Mogan. During that representation, O’Melveny filed an unsuccessful vexatious-litigant motion. See Mogan v. Sacks, Ricketts & Case LLP, No. 21-cv- 08431-TSH, 2022 WL119212, at *5 (N.D. Cal. Jan. 12, 2022).

In January 2023, Mogan filed the instant suit against Airbnb and its employees1 as well as O’Melveny and its attorneys, Sestito and Taylor (hereinafter collectively, “Appellees”). In this suit, Mogan asserts that the filing of Appellees’

1 Mogan again named Dave Willner, Jeff Henry, and Sanaz Ebrahimi as defendants—though incorrectly referring to Ebrahimi as “Ebrahini” in his Complaint.

vexatious-litigant motion in the 2021 Northern District Airbnb Litigation amounted to malicious prosecution and IIED. However, soon after Mogan filed this suit, Airbnb and Sestito filed a motion to strike Plaintiff’s claims under California’s anti- SLAPP statute and to dismiss under Rule 12(b)(6) (the “Anti-SLAPP Motion”).

After finding the matter suitable for decision without oral argument, the district court granted the Anti-SLAPP Motion, dismissing Mogan’s claims for malicious prosecution and IIED. In applying California’s anti-SLAPP framework, the district court held that (1) Mogan’s claim arose from an “act in furtherance of a person’s right of petition or free speech under the United States or California Constitution in connection with a public issue,” (2) Mogan could not satisfy the requisite elements of malicious prosecution given that claim rested on the vexatious- litigant motion filed in the 2021 Northern District Airbnb Litigation, and (3) Mogan’s IIED claim was barred by California’s litigation privilege. Moreover, as Mogan was not the prevailing party, the district court declined to award him fees pursuant to California Code of Civil Procedure § 425.16(c)(1).

Thereafter, Mogan filed a motion for reconsideration under Federal Rules of Civil Procedure 59(e) and 60(b) and a motion for leave to amend his complaint to add another defendant as well as a civil conspiracy claim. The district court denied both motions. In doing so, the district court held, among other things, that (1) Mogan

had provided no proper basis for reconsideration and (2) Mogan’s proposed amendments were futile. This appeal followed.

1. After a de novo review, this Court concludes that the district court properly applied California’s anti-SLAPP statute in dismissing Mogan’s claims for malicious prosecution and IIED. In seeking review, Mogan argues that (1) California’s anti- SLAPP statute does not apply in federal court and, in any event, (2) the district court erred in applying California’s anti-SLAPP statute. We address both arguments in turn.

First, despite Mogan’s arguments to the contrary, California’s anti-SLAPP statute applies in federal court. Though Mogan cites out-of-circuit authority to argue the opposite, California’s anti-SLAPP statute plainly applies in federal court under Ninth Circuit precedent. See CoreCivic, Inc. v. Candide Grp., LLC, 46 F.4th 1136, 1141–44 (9th Cir. 2022) (holding that California’s anti-SLAPP statute applies in federal court).

Second, the district court properly applied California’s anti-SLAPP statute in dismissing Mogan’s claims as they rest on writings and statements made in civil litigation, and Mogan cannot establish any probability that he will prevail on either his malicious prosecution claim or his IIED claim because both claims fail as a matter of law.

The application of California’s anti-SLAPP statute is a two-step process: (1)

a defendant must first “establish[] the plaintiff’s cause of action arises from the defendant’s exercise of the right of petition or free speech,” and then (2) the plaintiff must “establish that there is a probability that the plaintiff will prevail on the claim.” Fashion 21 v. Coal. for Humane Immigrant Rts. of L.A., 117 Cal. App. 4th 1138, 1145 (2004), as modified on denial of reh’g (May 18, 2004) (cleaned up) (citing CAL. CIV. PROC. CODE § 425.16(b)(1)).

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