Nagel v. Twin Laboratories, Inc.

109 Cal. App. 4th 39, 2003 Daily Journal DAR 5542, 2003 Cal. Daily Op. Serv. 4354, 134 Cal. Rptr. 2d 420, 2003 Cal. App. LEXIS 764
California Court of Appeal·Decided May 22, 2003·No. No. G030196·Published·Cited by 77 cases

Opinion

Opinion

FYBEL, J.

Twin Laboratories, Inc., manufactures and markets nutritional and dietary supplements, some of which contain ma huang, a botanical source of ephedra alkaloids. General Nutrition Corporation (GNC) and its franchisees sell these products.

James Nagel, on behalf of himself and all others similarly situated (collectively Nagel), sued Twin Laboratories, Inc. (apparently incorrectly named [43]*43in the complaint as Twin Lab Corporation), GNC, and certain GNC franchisees for violations of California’s unfair competition laws and the Consumer Legal Remedies Act. (For ease of reference, we will refer to all defendants collectively as Twin Labs.) Both Twin Labs’ product labels and its Web site state that the ma huang extract in Twin Labs’ product “Ripped Fuel” is “standardized for 6% ephedrine.” Nagel claims this statement is false and misleading.

Twin Labs moved to strike the complaint pursuant to Code of Civil Procedure section 425.16 (section 425.16), commonly referred to as the anti-SLAPP (strategic lawsuit against public participation) statute. The trial court found Twin Labs’ labeling and advertising to be speech protected by section 425.16, but also found Nagel had established a probability he would prevail on the merits of his claims. Therefore, the trial court denied the motion to strike.

We affirm. Three recent opinions from the California Supreme Court—Navellier v. Sletten (2002) 29 Cal.4th 82 [124 Cal.Rptr.2d 530, 52 P.3d 703], City of Cotati v. Cashman (2002) 29 Cal.4th 69 [124 Cal.Rptr.2d 519, 52 P.3d 695], and Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53 [124 Cal.Rptr.2d 507, 52 P.3d 685]—have clarified the scope and application of the anti-SLAPP statute. A cause of action is subject to a motion to strike if it “satisfies both prongs of the anti-SLAPP statute—i.e., [it] arises from protected speech or petitioning and lacks even minimal merit.” (Navellier v. Sletten, supra, 29 Cal.4th at p. 89.)

With regard to the first prong—whether the cause of action arises from protected speech—Twin Labs’ product labels and Web site listing of the ingredients of its products are commercial speech, but are not immunized from a false advertising claim by virtue of the anti-SLAPP statute. The United States Supreme Court has long held commercial speech receives less protection than noncommercial speech. We conclude the list of a product’s ingredients does not satisfy the first prong of section 425.16. Even if the first prong of the anti-SLAPP statute had been satisfied, Nagel provided sufficient admissible evidence to show he had a probability of prevailing on the merits of his claims.

Facts and Trial Court Proceedings

Twin Labs manufactures and markets dietary supplements containing ephedra alkaloids, which are obtained from the ma huang plant. Twin Labs markets several different products containing ephedra alkaloids, including Ripped Fuel. Ephedra alkaloids are used as stimulants or diet aids in the [44]*44weight loss market. Ephedra has been allegedly linked to medical conditions causing serious illness and even death.

GNC and its franchisees advertise, market, distribute, and sell Ripped Fuel and other Twin Labs products containing ephedra alkaloids.

The labels on the bottles of Ripped Fuel state the ma huang extract is “standardized for 6% ephedrine.” Twin Labs’ Web site also contains this •statement. Nagel contends the ephedrine in Ripped Fuel is not “standardized,” at least not in the popularly understood use of the word. The results of tests conducted on Ripped Fuel appear to show the amount of ephedrine differs dramatically between lots.

Nagel sued Twin Labs for unfair competition, false advertising, and violation of the Consumer Legal Remedies Act (CLRA), contending the statements on the bottle labels and on Twin Labs’ Web site regarding the amount of standardized ephedrine in Ripped Fuel were false and misleading.

Twin Labs filed a special motion to strike under section 425.16, contending its product labeling and advertising were protected free speech on a matter of public interest and Nagel could not prevail on his claims. Nagel opposed the motion, arguing because Twin Labs’ advertising was false, it was not entitled to any protection and section 425.16 therefore did not apply. Nagel argued, alternatively, if the list of ingredients was protected by section 425.16, he had presented sufficient evidence to show he would prevail on his claims.

The trial court denied the motion to strike, finding Twin Labs’ labeling and advertising were protected by section 425.16, but Nagel had successfully shown he would prevail on his claims. Twin Labs appealed. (Code Civ. Proc., §§ 425.16, subd. (j), 904.1, subd. (a)(13).)

Discussion

I.

Standard of Review

On appeal, we review de novo whether section 425.16 protects the subject speech and whether Nagel demonstrated a probability he would prevail on his claims. (Lam v. Ngo (2001) 91 Cal.App.4th 832, 845 [111 Cal.Rptr.2d 582].)

[45]*45II.

Statutory Framework

Section 425.16 provides, in relevant part: “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).) “As used in this section, ‘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’ includes . . . 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)(4).)1

In analyzing a section 425.16 motion, the trial court engages in a two-step process. “First, the court decides whether the defendant has made a threshold showing that the challenged cause of action is one arising from protected activity.” (Navellier v. Sletten, supra, 29 Cal.4th 82, 88.) The defendant meets this burden by showing the act underlying the plaintiff’s cause of action fits within section 425.16. (Braun v. Chronicle Publishing Co. (1997) 52 Cal.App.4th 1036, 1043 [61 Cal.Rptr.2d 58].)

If the defendant meets this initial burden, the burden then shifts and the plaintiff must show a probability of prevailing on the claim. (Navellier v. Sletten, supra, 29 Cal.4th at p. 88.) “ ‘[T]he plaintiff “must demonstrate that the complaint is both legally sufficient and supported by a sufficient prima facie showing of facts to sustain a favorable judgment if the evidence submitted by the plaintiff is credited.” ’ ” (Id. at pp. 88-89.) The plaintiff must make a prima facie showing of facts that would, if proven, support a judgment in the plaintiffs favor. (Wilson v. Parker, Covert & Chidester (2002) 28 Cal.4th 811, 821 [123 Cal.Rptr.2d 19, 50 P.3d 733];

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Nagel v. Twin Laboratories, Inc., 109 Cal. App. 4th 39, 2003 Daily Journal DAR 5542, 2003 Cal. Daily Op. Serv. 4354, 134 Cal. Rptr. 2d 420, 2003 Cal. App. LEXIS 764 (Cal. Ct. App. 2003).

109 Cal. App. 4th 39 (Nagel v. Twin Laboratories, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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