Richard E. Moylan, Plaintiff/Counterclaim v. Axe Murderer Tours Guam, INC. Paseo View Properties, INC. E.C. Development, LLP JOHN DOE COMPANIES 1-5 AND JOHN DOES A-M, Defendant/Counterclaimants/Third-Party v. Douglas Moylan, Third-Party

2021 Guam 25
Supreme Court of Guam·Decided December 22, 2021·No. CVA20-21·Published

Opinion

IN THE SUPREME COURT OF GUAM

RICHARD E. MOYLAN,

Plaintiff/Counterclaim Defendant-Appellant,

v.

AXE MURDERER TOURS GUAM, INC.; PASEO VIEW PROPERTIES, INC.; E.C. DEVELOPMENT, LLP; JOHN DOE COMPANIES 1-5; and JOHN DOES A-M, Defendants/Counterclaimants/Third-Party Plaintiffs-Appellees,

v.

DOUGLAS MOYLAN,

Third-Party Defendant-Appellant.

Supreme Court Case No.: CVA20-021 Superior Court Case No.: CV0760-16

OPINION

Cite as: 2021 Guam 25

Appeal from the Superior Court of Guam Argued and submitted on August 25, 2021 Via Zoom video conference

Moylan v. Axe Murderer Tours Guam, Inc., 2021 Guam 25, Opinion Page 2 of 15

Appearing for Plaintiff/Counterclaim Appearing for Defendant/Counterclaimant/ Defendant-Appellant: Third-Party Plaintiff-Appellee Douglas B. Moylan, Esq. Axe Murderer Tours Guam, Inc.: Law Offices of Douglas B. Moylan Jeffrey A. Cook, Esq. 138 W. Seaton Blvd., Ste. 201 Cunliffe & Cook Hagåtña, GU 96910 A Professional Corporation 210 Archbishop Flores St., Ste. 200 Hagåtña, GU 96910

Appearing for Third-Party Defendant-Appellant: Curtis C. Van de veld, Esq. The Vandeveld Law Offices, P.C. 123 Hernan Cortes Ave. Hagåtña, GU 96910

Moylan v. Axe Murderer Tours Guam, Inc., 2021 Guam 25, Opinion Page 3 of 15

BEFORE: F. PHILIP CARBULLIDO, Chief Justice; ROBERT J. TORRES, Associate Justice; KATHERINE A. MARAMAN, Associate Justice.

CARBULLIDO, C.J.: [1] Appellants Richard E. Moylan and Douglas Moylan (collectively, “the Moylans”) appeal from denial of their motion for summary judgment under Guam’s Citizen Participation in Government Act of 1998 (“CPGA”), 7 GCA § 17101 et seq. (2005). The trial court initially granted the Moylans’ motion but reconsidered and reversed after this court issued Cho v. Alupang Beach Club, Inc., 2020 Guam 10. Applying Cho, the trial court determined the Moylans did not meet their CPGA prima facie burden because they did not show the claims against them had “no substantial basis other than or in addition to . . . petitioning activities.” Cho, 2020 Guam 10 ¶ 8 (quoting Duracraft Corp. v. Holmes Prods. Corp., 691 N.E.2d 935, 943 (Mass. 1998)). On appeal, the Moylans ask the court to carve out an exception to this rule. We decline to deviate from Cho and thus affirm the trial court.

I. FACTUAL AND PROCEDURAL BACKGROUND [2] The case arises from a dispute over real property in Hagåtña. Richard is a tenant in common over Lot No. 1051, Hagåtña, as are some of his relatives. Some of Richard’s relatives leased out their interests in Lot No. 1051; those interests have since been assigned to Paseo View Properties, Inc. Paseo View Properties is affiliated with E.C. Development, LLP, and these companies share common management. Appellee Axe Murderer Tours Guam, Inc. (“AMT”), operates a marine diving business on several lots adjacent to Lot No. 1051, which they lease from Paseo View Properties and/or E.C. Development. [3] In 2016, Richard—through his attorney, Douglas—sued AMT and Paseo View Properties, alleging the companies used Lot No. 1051 without Richard’s permission. After the

Moylan v. Axe Murderer Tours Guam, Inc., 2021 Guam 25, Opinion Page 4 of 15

discovery process started, Douglas allegedly made reports to five Government of Guam agencies, suggesting AMT may have violated local laws. Thereafter, Genevieve Rapadas, then- attorney for AMT, wrote a letter to Douglas about discovery issues. Rapadas wrote:

Finally, based on information from our client, it appears that you may be using the discovery process to obtain documents to harass our client. We were informed that today both the Guam Fire Department and the Guam Environmental Protection Agency visited AMT based on “complaints” made regarding what we were told were purported illegal operations and false business licenses. If these complaints were made by you and you are providing our documents to these agencies so that our clients may be “investigated” for wrongdoing that you are trying to manufacture, this is an obvious abuse of the discovery process. We hope that this is not the case.

See RA, tab 45 (Decl. Gary W.F. Gumataotao, Aug. 2, 2017), Ex. G at 2 (Letter Rapadas to Moylan, Feb. 3, 2017). Rapadas later sent another letter to Douglas, this time accusing him of taking photographs of AMT’s premises, employees, and customers in a harassing manner. SeeRA, tab 45, Ex. H at 1 (Letter Rapadas to Moylan, Feb. 13, 2017). Rapadas demanded that Douglas refrain from any further “investigatory activities or self-help actions” and claimed Douglas’s actions “have resulted in interruption of business operations and intimidation of its employees and customers.” Id. at 2. [4] In July 2017, AMT filed a counterclaim and a third-party complaint against Richard and Douglas, respectively. AMT asserted several claims against both Richard and Douglas, two of which are at issue in this appeal: Harassment and Tortious Interference with Business Relations (“TIBR”). AMT’s counterclaim against Richard for Harassment makes these factual allegations:

38. Several times in 2015 and 2016, Richard E. Moylan through his agent Douglas Moylan committed harassment by approaching Counterclaimant Axe Murderer’s employees and customers, taking pictures of them, occasionally within inches of their faces, their vehicles and their license plates. His conduct continued even after the filing of the underlying lawsuit on August 31, 2016.

39. On or about October 26, 2015, while Richard E. Moylan with his agent Douglas Moylan was on Lot 1051, one of Counterclaimant Axe Murderer’s

Moylan v. Axe Murderer Tours Guam, Inc., 2021 Guam 25, Opinion Page 5 of 15

employees approached Douglas Moylan to inquire his purpose for being on the property. In response to the employee’s inquiry, Douglas Moylan raised his hand to motion for the employee to leave and in doing so, struck the employee.

Following this incident, Counterclaimant Axe Murderer filed a report with the Guam Police Department naming both Douglas Moylan and Richard E. Moylan.

40. Upon information and belief within two days of Axe Murderer’s submission of business licenses unrelated to Lot No. 1051, Axe Murderer was inspected by both the Guam Fire Department and the Guam Environmental Protection Agency for reported illegal business activity by Richard E. Moylan through his agent Douglas Moylan.

RA, tab 35 at 25-26 (AMT’s Answer, July 13, 2017). AMT’s third-party claim against Douglas for Harassment makes essentially the same factual allegations, and AMT’s claims against Richard and Douglas for TIBR also essentially repeat these same allegations. [5] The Moylans moved for summary judgment on these claims under the CPGA, which protects litigants against “strategic lawsuits against public participation,” or “SLAPPs.” See 7 GCA 17102(a)(4)-(8), (b)(4). Initially, the trial court ruled for the Moylans. In its first Decision and Order on the issue, the trial court held: “AMT’s Harassment and TIBR claims directly allege that the Moylans engaged in petitioning the government,” thereby triggering CPGA protections. RA, tab 111 at 8 (Dec. & Order, Dec. 13, 2018). The trial court therefore granted summary judgment for the Moylans. AMT then moved for reconsideration, which was denied. [6] Several months later, this court issued Cho, 2020 Guam 10, where we held that a CPGA movant satisfies their prima facie burden only by showing the claim against them has “no substantial basis other than or in addition to the petitioning activities.” 2020 Guam 10 ¶ 8 (quoting Duracraft, 691 N.E.2d at 943). Following Cho, AMT renewed its motion for reconsideration, arguing Cho amounted to an intervening change in controlling law. The trial court agreed. The court held that while the Harassment and TIBR claims did allege petitioning activity (Douglas’s reporting to government agencies), the claims also alleged a substantial basis

Moylan v. Axe Murderer Tours Guam, Inc., 2021 Guam 25, Opinion Page 6 of 15

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Richard E. Moylan, Plaintiff/Counterclaim v. Axe Murderer Tours Guam, INC. Paseo View Properties, INC. E.C. Development, LLP JOHN DOE COMPANIES 1-5 AND JOHN DOES A-M, Defendant/Counterclaimants/Third-Party v. Douglas Moylan, Third-Party, 2021 Guam 25 (guam 2021).

2021 Guam 25 (Richard E. Moylan, Plaintiff/Counterclaim v. Axe Murderer Tours Guam, INC. Paseo View Properties, INC. E.C. Development, LLP JOHN DOE COMPANIES 1-5 AND JOHN DOES A-M, Defendant/Counterclaimants/Third-Party v. Douglas Moylan, Third-Party) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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