Rand Resources, LLC v. City of Carson

433 P.3d 899, 243 Cal. Rptr. 3d 1, 6 Cal. 5th 610
CourtCalifornia Supreme Court
DecidedFebruary 4, 2019
DocketS235735
StatusPublished
Cited by161 cases

This text of 433 P.3d 899 (Rand Resources, LLC v. City of Carson) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rand Resources, LLC v. City of Carson, 433 P.3d 899, 243 Cal. Rptr. 3d 1, 6 Cal. 5th 610 (Cal. 2019).

Opinion

CUÉLLAR, J.

*614 The City of Carson (City) hired Rand Resources as its agent to negotiate with the National Football League (NFL) about the *615 possibility of building a football stadium in the City. But Rand Resources eventually sued the City, its mayor, and rival developer Leonard Bloom after the City replaced Rand Resources with Bloom's company. The defendants responded by making a motion under a **903 California statute designed to hasten resolution of certain disputes commonly characterized as strategic lawsuits against public participation (SLAPP)-lawsuits meant to chill the valid exercise of the public's rights to free speech and petition for redress of grievances. ( Code Civ. Proc., § 425.16, subd. (a) 1 ; see also Rusheen v. Cohen (2006) 37 Cal.4th 1048 , 1055, 39 Cal.Rptr.3d 516 , 128 P.3d 713 ( Rusheen ).) Known as the anti-SLAPP statute, this law permits a defendant facing such a lawsuit to dispose of it through a special motion to strike one or more causes of action.

To describe the standard governing whether such a motion will succeed, the statute uses certain open-ended terms that raise nuanced questions of interpretation. A special motion may target "cause[s] 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 Constitution or the California Constitution in connection with a public issue ..., 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).) A plaintiff who fails to persuade the court that he or she *6 will probably prevail on the cause of action in question faces immediate dismissal of that cause of action.

The question we tackle here is whether the causes of action asserted in Rand Resources' dispute with the City and other defendants arise-as required to advance a valid anti-SLAPP motion-from the defendants' acts in furtherance of their right of free speech in connection with a public issue. What we find is they do not, aside from two discrete claims asserted against Bloom and his company. The relevant provisions of the anti-SLAPP statute procedurally protect statements made "in connection with an issue under consideration or review" by a legislative body ( § 425.16, subd. (e)(2) ) or "any other conduct in furtherance of" the constitutional rights of petition or free speech "in connection with a public issue or an issue of public interest" ( § 425.16, subd. (e)(4) ).

The City Council indeed reviewed whether to renew plaintiffs' contract with the City. But the anti-SLAPP statute protects defendants' statements made "in connection with" that issue only where such statements form the basis of plaintiffs' claims-that is, where the statements themselves constitute the wrongs giving rise to the complaint. In this case, the statements on which plaintiffs based their claims against the City defendants were either (1) unrelated to the issue considered by the City Council, or (2) made long before *616 the issue came "under consideration or review" by the City Council. ( § 425.16, subd. (e)(2).) Under such circumstances, we hold that these statements do not satisfy the requirements of section 425.16, subdivision (e)(2). In contrast, the statements attributed to the City's codefendants-Bloom and his company-are at the heart of the intentional interference claims asserted against these codefendants. These claims do fall within the ambit of subdivision (e)(2) because they rely on statements Bloom made "in connection with" the issue the City Council reviewed.

We also find that none of defendants' statements are within the scope of subdivision (e)(4) of the anti-SLAPP statute, save for those statements underlying the claims against Bloom. The parties in this case agree that the building of a sports stadium in the City of Carson to host an NFL team is-given the wide-ranging impact that a project of such scale could have on the City-an issue of public interest. Yet, except as to two claims, the conduct providing the basis for plaintiffs' claims has only the slightest bearing on whether or not, or how, the stadium should be built, nor does it concern any comparable matter of public interest. Instead, the conversations underlying plaintiffs' action relate only to who should be responsible for the ordinary functions associated with representing the City in the negotiations with the NFL-plaintiffs or the other entities named as the City's codefendants. Since there is no evidence or persuasive argument that the identity of the City's agents was a matter of public interest in this case, defendants' conduct does not qualify as protected activity under section 425.16, subdivision (e)(4).

**904 Because we find some of plaintiffs' causes of actions are based on protected activities under subdivision (e)(2) and (e)(4) of section 415.26 but others are not, we affirm in part and reverse and remand in part the appellate court's judgment.

I.

The plaintiffs in this case are Richard Rand and his companies, Rand Resources and Carson El Camino, LLC (collectively, Rand Resources or plaintiffs). The defendants are the City of Carson and its mayor, James Dear (collectively, the City defendants). Also named as defendants are *7 Leonard Bloom and Bloom's company, U.S. Capital, LLC (collectively, the Bloom defendants). According to the complaint, in 2012, Rand Resources and the City entered into a contract in which Rand Resources was to act as the City's exclusive agent in negotiating with the NFL to build "a new, state-of-the-art sports and entertainment complex within the City" that would serve as the home stadium for an NFL team. All parties agree this development would have transformed the City and was a matter of public interest. *617 The agreement did not begin under the most auspicious circumstances. One of the City's earlier mayors had attempted to extort a bribe from Rand, and Rand, instead of paying, sued the mayor and the City. Rand won. While the case was on appeal, the City and Rand Resources entered into an agreement, the Exclusive Negotiating Agreement (ENA), which governed, inter alia, development of Rand Resources' own land within the parcel that the City was hoping to turn into a sports stadium. Rand Resources alleges the City extended the ENA multiple times.

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Bluebook (online)
433 P.3d 899, 243 Cal. Rptr. 3d 1, 6 Cal. 5th 610, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rand-resources-llc-v-city-of-carson-cal-2019.