Nelson v. Kremer CA1/1

CourtCalifornia Court of Appeal
DecidedApril 29, 2016
DocketA144130
StatusUnpublished

This text of Nelson v. Kremer CA1/1 (Nelson v. Kremer CA1/1) 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
Nelson v. Kremer CA1/1, (Cal. Ct. App. 2016).

Opinion

Filed 4/29/16 Nelson v. Kremer CA1/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION ONE

KAREN NELSON, Plaintiff and Respondent, A144130 v. KENNETH KREMER, (Alameda County Super. Ct. No. RG11580668) Defendant and Appellant.

Defendant and cross-complainant Kenneth Kremer appeals from an order granting in large part plaintiff and cross-defendant Karen Nelson’s special motion to strike his cross-claims (“anti-SLAPP” motion pursuant to Code Civ. Proc., § 425.16, subd. (b)(1)). The cross-claims at issue on appeal—extortion, wrongful use of administrative process, and abuse of process—arise from administrative and legal action Nelson pursued against Kremer after a failed real estate deal. On appeal, we review the trial court’s ruling on the special motion to strike de novo and so are not bound by the reasoning employed by the lower court. Rather, we independently examine (a) whether the cross-claims were properly subject to a special motion to strike (prong one of the anti-SLAPP analysis) and (b) if they were, whether Kremer made a sufficient evidentiary showing to establish a probability of succeeding on the merits of his cross-claims (prong two of the anti-SLAPP analysis). We conclude the three cross-claims were subject to a special motion to strike. We further conclude Kremer’s evidentiary showing was insufficient to establish a probability

1 he would succeed on the merits. We therefore affirm the order to the extent it granted Nelson’s special motion to strike. BACKGROUND Nelson sued Kremer over a real estate deal gone sour. The two, both real estate brokers, had formed a limited liability company to purchase a small shopping center in Bay Point, California. Kremer acted not only as the agent for the two as buyers, but also represented the seller. According to Nelson, Kremer breached his fiduciary duties to her and their investment company and committed malpractice, fraud, and other violations of California law. Three years into the litigation, and only months before the scheduled trial date, Kremer filed a verified cross-complaint, claiming Nelson unilaterally cancelled the deal out of personal spite towards him. He alleged four cross-claims: extortion, wrongful use of administrative proceedings, abuse of process, and defamation. In his cross-claim for extortion, Kremer alleged he and Nelson met on August 27, 2011, at which time Nelson threatened to file an administrative claim with the Department of Real Estate1 that could result in him losing his real estate license. She allegedly said she would file a claim if Kremer pressed forward with the arbitration proceeding he had filed to enforce the shopping center sale or if he did not refund her $50,000 deposit. In his cross-claim for wrongful use of administrative proceedings, Kremer alleged Nelson had, in fact, filed an administrative claim with the Department of Real Estate, and the claim was eventually dismissed, a result favorable to him.

1 The Department of Real Estate is now known as the Bureau of Real Estate. We refer to the department by its former name, given the timeframe relevant to this case and the parties’ own usage. (See Ryan-Lanigan v. Bureau of Real Estate (2013) 222 Cal.App.4th 72, 74, fn. 1.)

2 In his cross-claim for abuse of process, Kremer alleged Nelson maliciously included several causes of action in her complaint that were clearly subject to arbitration, sought to enjoin the ongoing arbitration, and otherwise filed motions and used discovery for improper purposes. In his cross-claim for defamation, Kremer alleged Nelson told others, falsely, that he was mentally unstable, committed criminal acts, acted fraudulently, and misrepresented facts when acting as a real estate agent. Nelson responded with a special motion to strike. In her moving papers, Nelson included a copy of a September 2012 formal accusation the Department of Real Estate lodged against Kremer. She also included interim and final orders, issued in 2014, from the Kremer-initiated arbitration proceedings. In these orders, Nelson was declared the prevailing party and Kremer was found to have breached his fiduciary duties as a real estate agent both to Nelson and to the parties’ LLC. In opposition to the special motion to strike, Kremer submitted a brief declaration explaining the “basis” of his claims. Though largely repetitious of his cross-complaint, it was not entirely consistent with his verified pleading. His extortion cross-claim, he now asserted, was based on statements Nelson allegedly made on April 27, 2011, not August 27 as alleged in the verified cross- complaint. He characterized Nelson’s asserted threat as to “take” unspecified “action” that could deprive Kremer of his real estate license, unless Kremer halted his arbitration and released her deposit. His abuse of administrative process cross-claim, he asserted, was based on Nelson following through on her threat and contacting the Department of Real Estate, which she did on June 20, 2011—a date between the two dates Kremer provided for Nelson’s supposedly unlawful threat, April 27 and August 27. In response to the copy of the administrative accusation Nelson provided to the court, Kremer maintained the accusatory pleading “was not the result of any determination that there was any validity to Nelson’s complaint” and attached letters showing the department,

3 after further consideration, chose to dismiss the accusation.2 Finally, as to his abuse of process claim, Kremer asserted Nelson wrongfully requested restraining orders and opposed arbitration in an effort to force him into bankruptcy. The trial court granted Nelson’s special motion to strike in part, striking the first three cross-claims on the ground they arose from protected speech activity and Kremer had not shown a probability of prevailing. It denied the motion as to the cross-claim for defamation, concluding the statements at issue were not protected under the anti-SLAPP statute. DISCUSSION Under California’s anti-SLAPP statute, a cause of action arising from the exercise of the constitutionally protected rights to petition or engage in free speech shall be stricken unless the proponent of the cause of action shows a probability of prevailing on the claim. (Code Civ. Proc., § 425.16, subd. (b)(1).) We review de novo both the issue of whether a cause of action arises from protected activity (the first prong of the anti- SLAPP analysis) and whether the plaintiff or cross-claimant has shown a probability of prevailing (the second prong of the analysis). (South Sutter, LLC v. LJ Sutter Partners, L.P. (2011) 193 Cal.App.4th 634, 657.) We address each of the three stricken cross- claims in order. Extortion The anti-SLAPP statute protects the right to petition before courts and administrative bodies (Briggs v. Eden Council for Hope & Opportunity (1999) 19 Cal.4th 1106, 1115 [“ ‘ “[t]he constitutional right to petition . . . includes the basic act of filing litigation or otherwise seeking administrative action” ’ ”], italics added), and this

2 Kremer also declared his abuse of administrative process claim arose from Nelson’s pursuit of relief before an organization called the Bay East Association of Realtors. This conduct was not alleged in his cross-complaint and was not argued in the appellate briefs. We do not mention it further.

4 protection extends to pre-dispute demands (Collier v. Harris (2015) 240 Cal.App.4th 41, 54 [“an attorney’s settlement demand letter on a client’s behalf generally is protected as a petition activity”]; Malin v.

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Nelson v. Kremer CA1/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-kremer-ca11-calctapp-2016.