Rossdale CLE v. Walton CA6

CourtCalifornia Court of Appeal
DecidedOctober 28, 2021
DocketH046441
StatusUnpublished

This text of Rossdale CLE v. Walton CA6 (Rossdale CLE v. Walton CA6) 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
Rossdale CLE v. Walton CA6, (Cal. Ct. App. 2021).

Opinion

Filed 10/28/21 Rossdale CLE v. Walton CA6 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SIXTH APPELLATE DISTRICT

ROSSDALE CLE, INC., d/b/a THE H046441 ROSSDALE GROUP, LLC, (Santa Cruz County Super. Ct. No. CV179135) Plaintiff and Respondent,

v.

TIMOTHY WALTON,

Defendant and Appellant.

Plaintiff Rossdale CLE, Inc. sued defendant Timothy Walton for malicious prosecution after Rossdale was granted judgment on the pleadings in an underlying case brought by Walton about unsolicited e-mail marketing. After a court trial, the court entered judgment in favor of Rossdale on its malicious prosecution cause of action and ordered Walton to pay over $230,000 in damages. On appeal, Walton argues the trial court erred in finding that Rossdale satisfied the probable cause and malice elements of the malicious prosecution cause of action. He also questions Rossdale’s corporate capacity to sue; challenges the damages award; and belatedly attacks the trial court’s denial of his anti-SLAPP motion. For the reasons stated here, we will affirm the judgment. I. TRIAL COURT PROCEEDINGS

Our factual summary is based on documentary evidence and testimony from the malicious prosecution court trial, supplemented with information from the trial court dockets for both the underlying lawsuit and the malicious prosecution action. A. THE UNDERLYING LAWSUIT Walton, an attorney representing himself in the trial court and on appeal, wrote to the CLE Director of the “Rossdale Group, LLC” in September 2010 regarding allegedly unlawful e-mail advertising. The letter accused Rossdale of sending e-mail advertising to California residents and stated that as a California resident Walton was “protected from such marketing assaults by California’s Restrictions on Unsolicited Commercial E-mail Advertisers.” (Citing Bus. & Prof. Code, § 17529 et seq.) The letter continued that Rossdale could “remedy the problem of your unlawful advertising through a confession of judgment providing equitable relief pursuant to California Business and Professions Code § 17500.” The letter stated that “if we cannot agree on an appropriate remedy, my client is reserving his right to seek damages of $1,000 per email message, and any other relief allowed under the law.” (Citing Bus. & Prof. Code, § 17529.5; Civ. Code, § 1770.) Rossdale refused to settle, and Walton filed suit in late 2010. The original complaint alleged that Rossdale sent unsolicited commercial e-mail to Walton, and it contained four causes of action: violation of Business and Professions Code section 17529.2; violation of Civil Code section 1783; invasion of privacy; and a request for declaratory relief. Walton did not disclose the e-mail address at which he had received messages from Rossdale until a year after he filed suit, when the court entered a stipulated protective order to keep Walton’s e-mail address confidential. Walton also produced in discovery copies of the e-mail he received from Rossdale. The “from” line of that e-mail lists the following: “ ‘CLE Director’ .” The operative complaint in the underlying action was Walton’s second amended complaint, which alleged a single cause of action for a violation of Business and Professions Code section 17529.5. (Walton refers in his briefing to a third amended complaint, but does not cite the record and it does not appear in the docket for the underlying case.) The second amended complaint alleged Rossdale had sent commercial 2 e-mail to Walton that “contained header information that included the name ‘CLE Director’ in the From line, which was not the name of the company sending or advertising in the email.” It further alleged that the e-mail “contained header information that purported to come from an email address, ‘Notifications@TheRossdaleGroup.com,’ which was not the actual address used to send the email.” Rossdale moved for judgment on the pleadings, which the trial court granted in May 2012. B. THE MALICIOUS PROSECUTION ACTION Rossdale sued Walton for malicious prosecution in 2014. Walton moved to strike the complaint under the anti-SLAPP statute (Code Civ. Proc., § 425.16), which the trial court denied after a hearing. Walton filed two notices of appeal challenging that order (case Nos. H041625 and H041750), but both appeals were dismissed for nonpayment of the statutory filing fee. Walton then filed what he styled a “motion to dismiss” the action in the trial court, arguing Rossdale had neither standing nor jurisdiction to maintain the action because the named plaintiff was a fictitious business name and the corporation to which that name was registered had dissolved. The trial court granted the motion, and Rossdale appealed. A different panel of this court reversed the judgment of dismissal, reasoning that any argument about corporate dissolution did not “raise matters of jurisdiction or standing.” (The Rossdale Group, LLC v. Walton (2017) 12 Cal.App.5th 936, 939, 945 (Rossdale I).) Walton filed an amended answer on remand, asserting a plea of abatement as an affirmative defense. The amended answer alleged that Rossdale’s corporation had been dissolved and that it therefore lacked capacity to maintain the lawsuit. Rossdale later moved to modify the style and caption of the case to change the named plaintiff to Rossdale CLE, Inc., d/b/a The Rossdale Group, LLC. The motion was supported by a declaration from Susan Lunden. Lunden declared that she was the principal of a Florida corporation, Miami Legal Resources LLC, which was originally the registered owner of the fictitious business name The Rossdale Group, LLC. She declared that in 2013 she 3 converted her Florida corporation to a Delaware corporation, Rossdale CLE, Inc. The Florida corporation transferred all assets—including the malicious prosecution lawsuit— to the Delaware corporation. Attached to the declaration were board minutes from the Florida corporation approving the transfer of assets, and a business purchase agreement. Walton opposed the motion, questioning the veracity of the documents attached to 1 Lunden’s declaration. The trial court granted the motion. The case proceeded to a one-day court trial. Lunden testified that the domain name TheRossdaleGroup.com was registered to her. She stated that someone who runs a 2 “WHOIS function” on the internet for that domain name would be directed to Lunden. Regarding corporate status, Lunden testified that the transfer from Miami Legal Resources, LLC to Rossdale CLE, Inc. “occurred in 2013, completed in 2014.” She claimed she learned from the State Bar of California that Walton had been admonished for “using that e-mail address that the California bar told [him] to discontinue using.” Walton did not object to that testimony. Lunden testified that she prepared a declaration (admitted into evidence with other supporting evidence collectively as exhibit No. 54) that accurately stated the total cost in attorney fees Rossdale spent on the underlying litigation was $239,282.80. Walton also testified. He stated his original demand letter raised “claims relating to falsity and deception,” but acknowledged that those claims were “not specifically laid out in” the demand letter. He admitted on cross-examination that Rossdale’s domain name was in the e-mail sender address and that it was traceable. He answered, “Correct,”

1 Despite the trial court having granted the motion, the case arrived at this court with the original caption. We corrected the caption on our own motion to reflect the trial court’s decision.

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Bluebook (online)
Rossdale CLE v. Walton CA6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rossdale-cle-v-walton-ca6-calctapp-2021.