NYGÅRD, INC. v. Uusi-Kerttula

72 Cal. Rptr. 3d 210, 159 Cal. App. 4th 1027
CourtCalifornia Court of Appeal
DecidedFebruary 1, 2008
DocketB194088
StatusPublished
Cited by163 cases

This text of 72 Cal. Rptr. 3d 210 (NYGÅRD, INC. v. Uusi-Kerttula) 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
NYGÅRD, INC. v. Uusi-Kerttula, 72 Cal. Rptr. 3d 210, 159 Cal. App. 4th 1027 (Cal. Ct. App. 2008).

Opinion

Opinion

SUZUKAWA, J.

After terminating his employment with plaintiffs Nygárd, Inc., and Nygárd International Partnership (collectively, the company or plaintiffs), 1 defendant Timo Uusi-Kerttula (Timo) gave an interview about his work experiences to a Finnish magazine, defendant Katso Magazine (the magazine). Plaintiffs sued Timo, the magazine, and its publisher for a variety *1033 of tort and contract claims, including breach of employment contract and defamation. The trial court struck the entire complaint pursuant to the anti-SLAPP (strategic lawsuit against public participation) statute, Code of Civil Procedure section 425.16. 2 We find that the anti-SLAPP motion was properly granted, and we affirm.

FACTS AND PROCEDURAL HISTORY

Timo ceased working for the company in 2005. Subsequently, he gave an interview to the magazine, then owned by defendant A-Lehdet (the publisher). The magazine published an article based on the interview in June 2005 (the June 2005 article). In it, Timo claimed that while working for the company, he “ ‘slaved . . . without a break,’ ” endured “ ‘pestering/taunting round the clock,’ ” had to “ ‘slave/drudge almost without a break the whole time,’ ” and felt himself “ ‘used.’ ” Further, he said, Nygárd wanted him to “ ‘work round the clock,’ ” “ ‘keeps an eye on his workers like a hawk,’ ” and “ ‘didn’t want to let his employees to even go and see a doctor’ ” when injured. Finally, he revealed that dancer Aira Suvio-Samulin and her granddaughters were Christmas guests in Nygárd’s home in the Cayman Islands.

On October 26, 2005, the company filed a complaint against Timo, the magazine, and the publisher for breach of contract, breach of the implied covenant of good faith and fair dealing, intentional interference with contract, breach of the duty of loyalty, and defamation. The complaint alleged that Timo intentionally revealed the company’s confidential information in violation of express and implied contractual duties; that Timo and the magazine made false and disparaging statements about the company that exposed it to “hatred, contempt, ridicule, and obloquy”; and that the magazine interfered with the contractual relationship between Timo and the company by “soliciting [the company’s] confidential information in order to defame and otherwise damage [the company].”

Timo, the magazine, and the publisher (collectively, defendants) filed anti-SLAPP motions to strike the complaint pursuant to section 425.16 on June 26, 2006. They contended that the June 2005 article concerned public figures and addressed issues of public interest; there was no evidence that the statements were false or were made with actual malice; neither the confidentiality agreement executed between Timo and the company, the implied covenant of good faith and fair dealing, nor the duty of loyalty prevented *1034 Timo from speaking about the company’s working conditions; and there was no evidence that the publisher knew about the confidentiality agreement when it published the article. Thus, they asserted, the complaint should be stricken under the anti-SLAPP statute.

The court granted the motions to strike on July 19, 2006. According to the court, in resolving a special motion to strike, “the trial court must engage in a two-step analysis: first, has the defendant shown that the challenged causes of action arise from, e.g., ‘free speech in connection with a public issue or an issue of public interest,’ and second, has the plaintiff demonstrated that it can probably prevail on the claim.” The court found that defendants met the first prong of the test because their evidence showed that the company and its founder, Nygárd, “are internationally known public figures who spend a great deal of money and effort to promote their business, success, wealth and lifestyle.” Further, plaintiffs employ over 12,000 employees worldwide. Thus, the court said, the statements made by Timo and published by the magazine involved highly visible public figures and issues of public interest.

Accordingly, the court said, the burden shifted to plaintiffs to show that they would probably prevail at trial on their various causes of action. The court concluded that plaintiffs failed to meet their burden. First, while plaintiffs’ declarations characterized some of Timo’s statements as “inaccurate,” “what they really provide is the individual employment experience of these four employees and their opinions about Nygárd’s working conditions. These different personal experiences do not render Timo’s statements false or defamatory.” Second, plaintiffs’ declarations failed to establish actual malice as required to prevail in a defamation cause of action against a public figure. Third, the court concluded that plaintiffs could not establish their causes of action for breach of contract, breach of the implied covenant of good faith and fair dealing, or breach of the duty of loyalty because Labor Code section 232.5 prohibits employers from requiring employees to “refrain from disclosing information about the employer’s working conditions.” Thus, regardless of the terms of Timo’s employment contract, Timo was free to speak about his working conditions. Finally, plaintiffs’ evidence did not even attempt to show that plaintiffs could probably prevail on their claim of intentional interference by the publisher and the magazine.

*1035 Defendants served notice of ruling on the anti-SLAPP motions on July 27, 2006. Plaintiffs timely appealed.

DISCUSSION

I. The Anti-SLAPP Statute and the Standard of Review

A special motion to strike under section 425.16—the so-called antiSLAPP statute—allows a defendant to seek early dismissal of a lawsuit that qualifies as a SLAPP. “SLAPP is an acronym for ‘strategic lawsuit against public participation.’ ” (Jarrow Formulas, Inc. v. LaMarche (2003) 31 Cal.4th 728, 732, fn. 1 [3 Cal.Rptr.3d 636, 74 P.3d 737].) A SLAPP is “[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.” (§ 425.16, subd. (b)(1).) Such an act includes “(1) any written or oral statement or writing made before a legislative, executive, or judicial proceeding, or any other official proceeding authorized by law; (2) any written or oral statement or writing made in connection with an issue under consideration or review by a legislative, executive, or judicial body, or any other official proceeding authorized by law; (3) any written or oral statement or writing made in a place open to the public or a public forum in connection with an issue of public interest; (4) or 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).)

A SLAPP is 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.

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Cite This Page — Counsel Stack

Bluebook (online)
72 Cal. Rptr. 3d 210, 159 Cal. App. 4th 1027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nygard-inc-v-uusi-kerttula-calctapp-2008.