Run The World Inc. v. Jiang

CourtDistrict Court, N.D. California
DecidedMarch 28, 2025
Docket3:23-cv-03130
StatusUnknown

This text of Run The World Inc. v. Jiang (Run The World Inc. v. Jiang) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Run The World Inc. v. Jiang, (N.D. Cal. 2025).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 RUN THE WORLD INC., Case No. 23-cv-03130-AMO

8 Plaintiff, ORDER GRANTING FORMER 9 v. COUNTERCLAIM DEFENDANTS’ MOTIONS FOR ATTORNEY'S FEES 10 XUAN JIANG, Re: Dkt. Nos. 122, 124 Defendant. 11

12 13 Former Counterclaim Defendants Run The World, Inc. (“RTW”), and Xiaoyin Qu 14 (together “Counterclaim Defendants”) both filed Motions for Attorney’s Fees related to their 15 respective special motions to strike pursuant to California’s Anti-SLAPP statute. The Motions for 16 Attorney’s Fees were heard before this Court on March 13, 2025. Having read the papers filed by 17 the parties and carefully considered their arguments therein and those made at the hearing, as well 18 as the relevant legal authority, the Court hereby GRANTS the motions for the following reasons. 19 I. BACKGROUND 20 This Order assumes familiarity with the factual allegations underlying this case, recounted 21 more fully in its Order Granting Counterclaim Defendants’ Motions to Dismiss (ECF 114) and its 22 Order Denying Defendant Xuan Jiang’s Motion to Dismiss for Lack of Subject Matter 23 Jurisdiction, issued in conjunction with this Order. The Court briefly recounts the procedural 24 history because it informs Counterclaim Defendants’ Motions for Attorney’s Fees. 25 RTW and Qu jointly filed their Special Motion to Strike SLAPP Claims on January 9, 26 2024, seeking elimination of Qu’s claim for abuse of process (“SLAPP Claims”).1 ECF 54. RTW 27 1 and Qu also filed a joint Motion to Dismiss on the same date. ECF 52. Jiang responded to the 2 Motion to Dismiss by filing her First Amended Counterclaims and a brief Opposition noting the 3 same on February 6, 2024. ECF 58, 59. She also opposed the Special Motions to Strike. ECF 60. 4 RTW understandably began preparing a reply in support of its Special Motion to Strike, incurring 5 $4,365 in fees. See Hayward Decl. (ECF 123) ¶¶ 8, 20(b). But on February 15, 2024, before the 6 reply was filed, the Court entered an Order terminating as moot the pending motions to dismiss, 7 “as well as their special motions to strike at Dkt. No. [51] and [54] in light of Xuan Jiang’s 8 amended counterclaim.” ECF 66. The Court also stated, “The Counterclaim-Defendants may 9 renew their respective motions if appropriate in response to the amended counterclaim.” Id. 10 Rather than drop the SLAPP Claims in response to the RTW’s and Qu’s Special Motions 11 to Strike, Jiang doubled-down in her First Amended Counterclaim by re-asserting the SLAPP 12 Claims and augmenting them with argument and case citations. FACC (ECF 58) ¶¶ 61, 76, 90, 13 112, 118, 237-242. Counsel for RTW began preparing a Renewed Special Motion to Strike. 14 Hayward Decl. ¶ 11. Before RTW filed the Renewed Motion, Jiang proposed a stipulation to 15 permit her to file a Second Amended Counterclaim. Id. ¶ 10. By this time, RTW and Qu had 16 jointly incurred more than $27,000 in attorney fees preparing the Special Motion to Strike and 17 related portions of the Motion to Dismiss Counterclaims. Conrad Decl. (ECF 55); Hayward Decl. 18 ¶ 6. Lastly, RTW incurred $3,800 preparing a Renewed Special Motion to Strike before learning 19 that Jiang wished to finally stipulate to drop the SLAPP Claims through further amendment. Id., 20 ¶¶ 11, 12(c). 21 The parties filed the Stipulation on February 26, 2024, and the Court granted the 22 Stipulation by Order entered on February 27, 2024. ECF 77, 79. Jiang filed her Second Amended 23 Counterclaim (“SACC”) on February 26, 2024, which was deemed filed on February 27, 2024. 24 ECF 78. See also ECF 79 at 4. The parties state in the Stipulation’s recitals that 25 “Counterclaimant Xuan Jiang seeks to further amend her Counterclaims to moot the issues raised 26 in Counterclaim-Defendants’ now-terminated Special Motions to Strike[.]” ECF 79 at 2. 27 1 II. DISCUSSION 2 Counterclaim Defendants now move to recover attorney’s fees incurred in relation to their 3 anti-SLAPP motion. See RTW Mot. (ECF 122); Qu Mot. (ECF 124). Jiang opposes. Opp. (ECF 4 127). 5 A. Legal Standard 6 California’s anti-SLAPP statute protects, among other things, any conduct “in furtherance 7 of a person’s right of free speech,” including “any written or oral statement or writing made in a 8 place open to the public or a public forum in connection with an issue of public interest.” Cal. 9 Code Civ. Proc. § 425.16(e). “Under California’s anti-SLAPP statute, a defendant may bring a 10 special motion to strike a cause of action arising from constitutionally protected speech or 11 petitioning activity.” Barry v. State Bar of California, 2 Cal. 5th 318, 320 (2017); Cal. Code Civ. 12 Pro. § 425.16. Parties sued in federal court can bring anti-SLAPP motions to strike state law 13 claims and are entitled to attorney’s fees and costs when they prevail. Verizon Delaware, Inc. v. 14 Covad Communications Co., 377 F.3d 1081, 1091 (9th Cir. 2004). “California’s anti-SLAPP 15 (‘Strategic Lawsuit Against Public Participation’) statute provides a mechanism for a defendant to 16 strike civil actions brought primarily to chill the exercise of free speech.” Metabolife Int’l, Inc. v. 17 Wornick, 213 F. Supp. 1220, 1221 (S.D. Cal. 2002). 18 “[A]ny SLAPP defendant who brings a successful motion to strike is entitled to mandatory 19 attorney fees.” Ketchum v. Moses, 24 Cal. 4th 1122, 1131 (2001). The purpose of the fee-shifting 20 provision is “to discourage such strategic lawsuits against public participation by imposing the 21 litigation costs on the party seeking to chill the valid exercise of the constitutional rights of 22 freedom of speech and petition for the redress of grievances.” Id. at 1131 (internal quotation 23 omitted). Because “[t]he anti-SLAPP statute reflects the Legislature’s ‘strong preference for 24 awarding attorney fees to successful defendants,’ ” courts interpret the statute “broadly to favor an 25 award of attorney fees to a partially successful defendant.” Lin v. City of Pleasanton, 176 Cal. 26 App. 4th 408, 425-26 (2009), as modified on denial of reh’g (Aug. 11, 2009). 27 1 B. Entitlement to Fees 2 Jiang argues that Counterclaim Defendants are not entitled to attorney’s fee awards 3 because they were not “prevailing parties” under the anti-SLAPP statute. See Opp. at 8-12. “A 4 defendant that brings an anti-SLAPP motion to strike may ‘prevail,’ even if the court did not 5 actually grant the motion. Where the plaintiff dismisses the alleged SLAPP before the court rules 6 on a pending motion to strike, the mooting of the merits of the motion does not bar a defendant 7 from recovering attorney fees.” Law Offices of Bruce Altschund v. Wilson, 632 Fed. App’x. 321 8 (9th Cir. 2015) (unpublished) (affirming award of attorney fees and costs to defendant where 9 plaintiff dismissed the action pursuant to Fed. R. Civ. P. 41(a)(1)(A)(i) after the district court took 10 defendant’s anti-SLAPP motion under submission). Federal district courts regularly rely on this 11 and related California Court of Appeal authority in support of the premise that “where the plaintiff 12 voluntarily dismisses an alleged SLAPP suit while a special motion to strike is pending,” the 13 defendant is considered the prevailing party, and “the trial court has discretion to determine 14 whether the defendant is the prevailing party for purposes of attorney’s fees under . . . section 15 425.16(c).” Garrett v. Hine, No. 121CV00845DADBAK, 2022 WL 2067903, at *7 (E.D. Cal. 16 June 8, 2022) (quoting Coltrain v. Shewalter, 66 Cal. App. 4th 94, 107 (1998)); see also 17 Mireskandari v. Mail, No. 12-cv-02943-MMM-FFM, 2014 WL 12561581, at *6 (C.D. Cal. Aug. 18 4, 2014); Ryans v. Editions Ltd. West, Inc., No. 06-cv-4812-PVT, 2007 WL 2778408, at *3 (N.D.

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