Patel v. Chavez

CourtCalifornia Court of Appeal
DecidedApril 30, 2020
DocketB291695
StatusPublished

This text of Patel v. Chavez (Patel v. Chavez) 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
Patel v. Chavez, (Cal. Ct. App. 2020).

Opinion

Filed 4/30/20 CERTIFIED FOR PARTIAL PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

BALUBHAI PATEL et al., B291695

Plaintiffs and Appellants, (Los Angeles County Super. Ct. No. BC681074) v.

MANUEL CHAVEZ,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Maureen Duffy-Lewis, Judge. Affirmed.

___________________________

Frank A. Weiser for Plaintiffs and Appellants. Law Office of Eugene Lee and Eugene D. Lee for Defendant and Respondent.

 Pursuant to California Rules of Court, rules 8.1100 and 8.1110, this opinion is certified for publication with the exception of the Factual and Procedural Summary post, and the Discussion post, parts C. and D. Plaintiffs and appellants Balubhai Patel, DTWO & E, Inc. (DTWO), and Stuart Union, LLC (collectively, plaintiffs) appeal from the trial court’s order granting defendant and respondent Manuel Chavez’s motion to strike plaintiffs’ complaint against Chavez, pursuant to the anti-SLAPP statute, Code of Civil Procedure section 425.16. Plaintiffs’ complaint alleges that Chavez, plaintiffs’ former employee, falsely testified at a Labor Commissioner’s hearing on wage claims Chavez filed against plaintiffs, which the Labor Commissioner ultimately decided in Chavez’s favor. On this basis, plaintiffs’ complaint asserts a federal civil rights cause of action against all defendants under section 1983 of title 42 of the United States Code (section 1983). The complaint also contains a petition for writ of mandate addressed to all defendants seeking reversal of the Labor Commissioner’s award.1 On appeal, plaintiffs argue that the anti-SLAPP statute does not apply to federal causes of action, and that even if it did apply, plaintiffs met their burden of establishing a probability of success.

1 The complaint also named two Labor Commissioner officials as defendants to all causes of action. Chavez’s anti-SLAPP motion seeks to strike “the complaint,” not just the causes of action alleged against Chavez, and the language of the court’s order grants the motion without caveat. (Capitalization and boldface omitted.) But the Labor Commissioner officials named as defendants did not join Chavez’s anti-SLAPP motion, and the court has since sustained their demurrer to a first amended complaint filed while Chavez’s motion to strike was pending, leading the parties to stipulate to dismissing them as incorrectly named parties to this appeal. Thus, the record is inconsistent with reading the order on appeal literally, and we instead construe it as striking the complaint only to the extent it alleges causes of action against Chavez.

2 We disagree on both points and affirm the trial court’s order granting plaintiffs’ motion to strike the complaint to the extent it asserts causes of action against Chavez.

FACTUAL AND PROCEDURAL SUMMARY From 2002 to 2016, Chavez worked as an on-site property manager of the Stuart Hotel, a residential hotel owned and operated by plaintiffs.

A. Labor Commissioner Proceedings Against Plaintiffs In October 2015, Chavez filed a wage claim with the California Labor Board, alleging plaintiffs paid Chavez less than minimum wage and engaged in other wage claim violations. On January 12, 2017 and March 6, 2017, a Berman hearing2 took place regarding Chavez’s claims against plaintiffs. Chavez and others testified under oath. (See Cal. Code Regs., tit. 8, § 13505

2 A Berman hearing is “a dispute resolution forum established by the Legislature to assist employees in recovering wages owed.” (Sonic-Calabasas A, Inc. v. Moreno (2013) 57 Cal.4th 1109, 1124.) “ ‘A Berman hearing is conducted by a deputy [Labor] [C]ommissioner, “. . . [and] is designed to provide a speedy, informal, and affordable method of resolving wage claims. In brief, in a Berman proceeding the [C]ommissioner may hold a hearing on the wage claim; the pleadings are limited to a complaint and an answer; . . . The [C]ommissioner must decide the claim within 15 days after the hearing. ([Lab. Code,] § 98.1.)” [Citation.] The hearings are not governed by the technical rules of evidence, and any relevant evidence is admitted “if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs.” (Cal. Code Regs., tit. 8, § 13502.)’ ” (Sonic-Calabasas A, Inc. v. Moreno, supra, 57 Cal.4th at p. 1128.)

3 [at Berman hearing, “[o]ral evidence shall be taken only on oath or affirmation”].) On September 26, 2017, the Labor Commissioner issued a ruling in Chavez’s favor, awarding him approximately $235,000 in unpaid wages, penalties, and interest.

B. Plaintiffs’ Lawsuit On October 26, 2017, plaintiffs brought the action underlying this appeal3 against Chavez and two Labor Commissioner officials, Maria Huerte, who had presided over the Berman hearing, and Julie Su. The complaint alleges that, at the Berman hearing, Chavez “produced a falsified report of the claimed monies owed[,] falsely testified and gave perjured testimony in support of his complaint.” The complaint further alleges that “[p]laintiffs presented competent and credible evidence at the hearing that no monies were owed to [Chavez] on his complaint,” and that the Labor Commissioner’s ruling was illegal and/or incorrect in various ways. The complaint characterizes this conduct by all defendants as a “state action” that “violated the constitutional and civil rights of plaintiffs,” as a result of which plaintiffs suffered damages. Based thereon, the complaint asserts a section 1983 cause of action and seeks $10 million in damages from Chavez, Su, and Huerte. The complaint also contains a petition—addressed to all defendants—“[f]or a writ of mandate vacating and reversing the [Labor Commissioner’s decision].” The complaint alleges this

3 This was not the first lawsuit DTWO had filed against Chavez based on his wage claims. In December 2015, DTWO filed and served a complaint against Chavez, alleging Chavez was an independent contractor who had stolen hotel rental income and seeking an accounting of such income. DTWO dismissed the suit the day before trial.

4 petition is “pursuant to . . . Labor Code [s]ection[ ] 98.2, and/or . . . Code of Civil Procedure [s]ection 1094.5” and claims that “[p]laintiffs are entitled to a de novo hearing on this matter.”

C. Procedural History Following Complaint In November 2017, Huerte and Su filed a demurrer. Shortly thereafter, Chavez filed the instant anti-SLAPP motion seeking to strike the complaint. Chavez argued that the causes of action arose solely from Chavez’s testimony, which is protected conduct, and that therefore, as a matter of law, plaintiffs could not show a likelihood of success. On June 11, 2018, the trial court held a hearing on Chavez’s anti-SLAPP motion. In an order granting the motion that same day, the court concluded that the causes of action in the complaint arose from conduct protected under the anti-SLAPP statute, namely “testimony made in the underlying litigation before the Labor Commission[er].” It further concluded that, under the requisite anti-SLAPP analysis, this shifted the burden to plaintiffs to show a probability of success, and that plaintiffs could not do so, because “[Chavez’s] [s]tatements [during the Berman hearing] are absolutely privileged under Civil Code [section] 47, [subdivision] (b)—the [l]itigation [p]rivilege.” Plaintiffs timely appealed the order.

5 DISCUSSION Plaintiffs argue that the trial court erred in granting Chavez’s anti-SLAPP motion because the statute does not apply to federal causes of action brought in state court.

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Bluebook (online)
Patel v. Chavez, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patel-v-chavez-calctapp-2020.