Richmond Compassionate Care etc. v. 7 Stars Holistic etc.

CourtCalifornia Court of Appeal
DecidedFebruary 21, 2019
DocketA153305
StatusPublished

This text of Richmond Compassionate Care etc. v. 7 Stars Holistic etc. (Richmond Compassionate Care etc. v. 7 Stars Holistic etc.) 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
Richmond Compassionate Care etc. v. 7 Stars Holistic etc., (Cal. Ct. App. 2019).

Opinion

Filed 1/29/19; Modified and Certified for Pub. 2/21/19 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION TWO

RICHMOND COMPASSIONATE CARE COLLECTIVE, Plaintiff and Respondent, A153305

v. (Contra Costa County 7 STARS HOLISTIC FOUNDATION, Super. Ct. No. MSC1601426) INC., et al., Defendants and Appellants; HOLISTIC HEALING COLLECTIVE, INC., et al., Defendants.

In 2014, we began our opinion in Moriarty v. Laramar Management Corp. (2014) 224 Cal.App.4th 125, 128 (Moriarty) with this observation: “Another appeal in an anti- SLAPP case. Another appeal by a defendant whose anti-SLAPP motion failed below. Another appeal that, assuming it has no merit, will result in an inordinate delay of the plaintiff’s case and cause him to incur more unnecessary attorney fees. (See Grewal v. Jammu (2011) 191 Cal.App.4th 977, 1002–1003.) And no merit it has.” Here is yet another such appeal. And we again affirm. BACKGROUND The General Setting In 2011, pursuant to Richmond Marijuana Ordinance No. 28-10 NS (ordinance), the City of Richmond issued a medical marijuana collective permit to Richmond

1 Compassionate Care Collective (RCCC). It was the first collective to obtain such a permit. Three other permits were later issued over the ensuing years, to: (1) Richmond Patients Group (RPG), acting through principals William Koziol, Darrin Parle, and Alexis Parle; (2) Holistic Healing Collective, Inc. (Holistic), acting through its principal Rebecca Vasquez; and (3) 7 Stars Holistic Foundation, Inc. (7 Stars), acting through its principal Zeaad M. Handoush. The ordinance had been adopted in 2010, and was from time to time amended, including in 2011, 2012, and 2014, when the ordinance was amended to reduce the number of dispensary permits from six to three, and also to provide that if a permitted dispensary did not open within six months after the issuance of a permit, the permit would expire and become void. RCCC ended up losing its permit. The Proceedings Below In July 2016 RCCC filed a complaint alleging a single cause of action, violation of the Cartwright Act. The complaint named 11 defendants: RPG, Holistic, 7 Stars, William and Alexis Koziol, Parle, Vasquez, Handoush, Lisa Hirschhorn, Antwon Cloird, and Cesar Zepeda. As indicated, eight of the defendants were the three collectives and three principals. As to the other three, Hirschhorn was alleged to be an agent of the other defendants (except Cloird and Zepeda), and Cloird and Zepeda were alleged to be the agents of the other defendants (except Hirschhorn). The complaint alleged in essence that defendants, acting in concert, encouraged and paid for community opposition to RCCC’s applications before the Richmond City Council and also purchased a favorably zoned property. In October 2016, represented by five separate counsel, defendants filed a joint special anti-SLAPP motion to strike pursuant to Code of Civil Procedure section 425.16 (section 425.16). The motion was heard by the Honorable Barry Goode, a most experienced Superior Court judge, and on December 5 he granted the anti-SLAPP motion in an “opinion and order” that among other things held that “supporting and encouraging others to oppose Plaintiff’s application before the City Council” were “statements or

2 conduct made in connection with . . . official proceedings” and “the location of a medical marijuana facility is not a public issue.” And, he concluded, the allegations “related to efforts to mobilize public opposition to Plaintiff’s application and to obtain a decision from the Richmond City Council . . . shall be stricken from the complaint. [But,] the allegations of the complaint related to the purchase of real property . . . shall not.” RCCC filed a First Amended Complaint and then a second, to both of which demurrers were sustained with leave to amend. Both demurrers were ruled on by Judge Goode. In August 2017 RCCC filed its Third Amended Complaint (TAC). The complaint itself was 85 paragraphs, and also included 17 exhibits consisting of text images, emojis, and notes of defendant Hirschhorn—a defendant, it developed, who had turned on the other defendants and was now assisting RCCC. On August 31, 2017 defendants 7 Stars and Handoush (collectively, 7 Stars) filed their own anti-SLAPP motion, along with a demurrer. The anti-SLAPP motion asked the Court to strike the claim for violation of the Cartwright Act, and also identified 28 specific paragraphs that 7 Stars claimed involved protected activity or appeared to incorporate by reference allegations of protected activity. The motion was set for hearing on October 12. While 7 Stars’ motion was pending, the RPG defendants filed their own anti- SLAPP motion, identifying specific allegations they sought to have stricken. On September 28 RCCC filed its opposition to the 7 Stars anti-SLAPP motion, included within which was a declaration of Hirschhorn, testifying as to the facts that underlay the TAC. And what a declaration it was: 10 pages that set forth in detail what the defendants did to defendant RCCC, detail that supported Hirschhorn’s testimony of a conspiracy among defendants to harm RCCC—their “war on RCCC.” This is how Hirschhorn described it: “Our group declared war on RCCC. We conspired to prevent RCCC from getting any property in Richmond. We discussed and presented leases, letters of intent to lease or purchase, and purchase agreements—all of which were bogus. The intent of these

3 phony real estate deals or leases, which were presented to landlords was to ‘tie them up with paper.’ Individuals in our group went door to door to landlords to ensure that they would not lease or rent their property to RCCC. As previously stated in this declaration, our group included Rebecca Vasquez, Zeaad Handoush, Jawad Dayem aka JJ, Adrian _________________, Bill Koziol and Darrin Parle and Cesar Zepeda and Antwon Cloird. “We had a list of names which we compiled to ensure that any landlord would not lease, nor sell any property to RCCC or anyone associated with RCCC. The list of names included John Valdez, Garib Karapetyan, Greg Serobyan, and attorneys, Brad Hirsch, James Anthony.” Hirschhorn’s 25-paragraph declaration went on to describe in vivid detail all that “the group” did in furtherance of their conspiracy against RCCC. A few examples should suffice: “16. Our activities included regularly visiting the City of Richmond website to determine what properties would be located in the appropriate zoning district. With this information, we would visit the property owners or their agents and pretend to be prospective purchasers or tenants. This would convince the property owner or agent to turn over its rent rolls which contained the lease termination date of the tenant leases or engage in phony lease negotiations. We would then contact the tenant whose lease was expiring in an attempt to persuade them to relocate to a premise that would otherwise be suitable for RCCC’s needs. Our ideas included an offer to pay their cost of relocating and/or provide a few months of rent payments. “17. One tactic our group used to dissuade property owners, property managers, or real estate agents from leasing to RCCC or its affiliates was to inform the owners, managers or agents that their properties were subject to federal forfeiture proceedings. This was a successful ploy as we scared property owners, property managers, and real estate agents from leasing to RCCC. “18. Another successful ploy used by our group was to inform property owners, their managers or real estate agents that we would threaten to notify their lender that the owner was now leasing to a cannabis business. This threat of notifying their lender

4 would cause them to believe that their loan would be called by the lender. We particularly targeted properties where Wells Fargo was the lender. This scare tactic had its intended effect.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Briggs v. Eden Council for Hope & Opportunity
969 P.2d 564 (California Supreme Court, 1999)
Dyer v. Childress
55 Cal. Rptr. 3d 544 (California Court of Appeal, 2007)
Freeman v. Schack
64 Cal. Rptr. 3d 867 (California Court of Appeal, 2007)
Wang v. Wal-Mart Real Estate Business Trust
63 Cal. Rptr. 3d 575 (California Court of Appeal, 2007)
Vogel v. Felice
26 Cal. Rptr. 3d 350 (California Court of Appeal, 2005)
Martinez v. Metabolife International., Inc.
6 Cal. Rptr. 3d 494 (California Court of Appeal, 2003)
Peregrine Funding, Inc. v. Sheppard Mullin Richter & Hampton LLP
35 Cal. Rptr. 3d 31 (California Court of Appeal, 2005)
Navellier v. Sletten
52 P.3d 703 (California Supreme Court, 2002)
City of Cotati v. Cashman
52 P.3d 695 (California Supreme Court, 2002)
Moriarty v. Laramar Management CA1/2
224 Cal. App. 4th 125 (California Court of Appeal, 2014)
Park v. Bd. of Trs. of the Cal. State Univ.
393 P.3d 905 (California Supreme Court, 2017)
Grewal v. Jammu
191 Cal. App. 4th 977 (California Court of Appeal, 2011)
Davenport v. Davenport
194 Cal. App. 4th 1507 (California Court of Appeal, 2011)
Hecimovich v. Encinal School Parent Teacher Organization
203 Cal. App. 4th 450 (California Court of Appeal, 2012)
Young v. Tri-City Healthcare District
210 Cal. App. 4th 35 (California Court of Appeal, 2012)
Optional Capital, Inc. v. Akin Gump Strauss, Hauer & Feld LLP
226 Cal. Rptr. 3d 246 (California Court of Appeals, 5th District, 2017)
Central Valley Hospitalists v. Dignity Health
227 Cal. Rptr. 3d 848 (California Court of Appeals, 5th District, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Richmond Compassionate Care etc. v. 7 Stars Holistic etc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/richmond-compassionate-care-etc-v-7-stars-holistic-etc-calctapp-2019.