Shahid Buttar for Congress Committee v. Hearst Communications, Inc.

District Court, N.D. California·Decided April 18, 2023·No. 3:21-cv-05566·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 SHAHID BUTTAR FOR CONGRESS Case No. 21-cv-05566-EMC COMMITTEE, et al., 8 Plaintiffs, ORDER GRANTING DEFENDANT’S 9 MOTION FOR ATTORNEYS’ FEES v. AND COSTS 10 HEARST COMMUNICATIONS, INC., Docket No. 69 11 Defendant. 12 13 14 Plaintiffs Shahid Buttar and Shahid Buttar for Congress Committee (collectively, “SBCC”) 15 filed suit against Defendant Hearst Communications, Inc. (“Hearst”) for defamation and violation 16 of California’s unfair competition law. Docket No. 46 (“FAC”). SBCC’s claims arise from two 17 stories published in the San Francisco Chronicle in July 2020 reporting on allegations that Mr. 18 Buttar, then a candidate for Speaker Nany Pelosi’s seat in the U.S. House of Representatives, 19 sexually harassed an acquaintance Elizabeth Croydon several years earlier. The Court dismissed 20 SBCC’s FAC under Fed. R. Civ. P. 12(b)(6) and California’s anti-SLAPP statute with prejudice. 21 Docket No. 67. On March 18, 2023, SBCC appealed to the Ninth Circuit. Docket No. 73. 22 Now pending before the Court is Hearst’s motion for attorneys’ fees and costs. Docket 23 No. 69 (“MAF”). For the following reasons, the Court GRANTS Hearst’s Motion for Attorneys’ 24 Fees and Costs in the amount of $87,259.55 in attorneys’ fees and $634 in costs. 25 I. BACKGROUND 26 SBCC filed its original complaint on July 20, 2021. Docket No. 1 (“Compl.”). First, 27 SBCC alleged defamation at common law and under Cal. Civ. Code § 45 because the “Chronicle 1 . . . [who] would have provided details of Ms. Croydon’s history of lobbing false allegations.” 2 Compl. ¶¶ 57–58. Second, SBCC alleged a derivative violation of California’s unfair competition 3 law based on Hearst “maliciously defaming Buttar for Congress and Mr. Buttar.” Compl. ¶¶ 65– 4 66. Hearst filed a motion to dismiss under Fed. R. Civ. Proc. 12(b)(6) and Cal. Civ. Proc. Code § 5 425.16(b)(1) on the basis that the anti-SLAPP statute applies to all SBCC’s claims. Docket No. 27 6 (“First MTD”). The Court held that SBCC failed to state a claim of defamation under the anti- 7 SLAPP statute and failed to state a derivative claim under California’s unfair competition law. 8 Docket No. 39 (“First MTD Order”) at 20. The Court granted the motion to dismiss with 9 prejudice with regards to SBCC’s claim stemming from the First Article but without prejudice to 10 amend the complaint as to the Follow-Up Article. First MTD Order, at 21. 11 On August 12, 2022, SBCC filed its First Amended Complaint. Hearst filed another 12 motion to dismiss on the same grounds. Docket No. 47 (“Second MTD”). The Court granted that 13 motion with prejudice with regards to SBCC’s claim stemming from the Follow-Up Article. 14 Docket No. 69 (“Second MTD Order”). 15 Hearst filed a Motion for Attorneys’ Fees and Costs. Docket No. 69 (“MAF”). On March 16 18, 2023, SBCC appealed to the Ninth Circuit. Docket No. 73. 17 II. LEGAL STANDARD 18 A. Motion for Attorneys’ Fees and Costs 19 The Court may use the “lodestar” method to determine a reasonable fee award. McCown 20 v. City of Fontana, 565 F.3d 1097, 1102 (9th Cir. 2009). The lodestar is “the number of hours 21 reasonably expended on the litigation multiplied by a reasonable hourly rate.” Hensley v. 22 Eckerhart, 461 U.S. 424, 433 (1983). “In determining the appropriate number of hours to be 23 included in a lodestar calculation, the district court should exclude hours ‘that are excessive, 24 redundant, or otherwise unnecessary.’” McCown, 565 F.3d at 1102 (internal citations omitted). 25 III. DISCUSSION 26 A. Fee-Shifting Under the Anti-SLAPP Statute 27 First, the Court must consider whether Hearst is entitled to fees. Hearst successful moved 1 participation”) statute and is therefore entitled to the benefits of the fee-shifting provision under 2 the statute. The anti-SLAPP statute provides that “a prevailing defendant on a special motion to 3 strike shall be entitled to recover that defendant’s attorney’s fees and costs.” Cal. Code Civ. Proc. 4 § 425.16(c)(1) (emphasis added). The fee-shifting provision is “mandatory.” Ketchum v. Moses, 5 24 Cal. 4th 1122, 1131–32 (2001). The provision must be “broadly construed so as to effectuate 6 the legislative purpose of reimbursing the prevailing defendant for expenses incurred in extricating 7 herself from a baseless lawsuit.” Wilkerson v. Sullivan, 99 Cal. App. 4th 443, 446 (2002). The 8 Court recognized that the anti-SLAPP fee award is designed to discourage litigation arising in 9 connection with the exercise of free speech rights, “by imposing the litigation costs on the party 10 seeking to chill the valid exercise of the constitutional right[] of freedom of speech.” Ketchum, 24 11 Cal. 4th at 1131 (internal quotation marks omitted). 12 Here, in its order granting the motion to dismiss the amended complaint, the Court found 13 that Hearst made a sufficient showing that SBCC’s “suit arises from an act [by the defendant] in 14 furtherance of the defendant’s rights of petition or free speech” under the anti-SLAPP statute. See 15 Second MTD Order; Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1110 (9th Cir. 2003) (citation 16 omitted). There is no dispute that SBCC’s suit arises from a written statement by Hearst in a 17 public forum in connection with an issue of public interest in furtherance of Hearst’s right of free 18 speech. See Second MTD Opp. at 12 n.51 (“Plaintiffs do not dispute that the first prong of the 19 Anti-SLAPP analysis has been satisfied.”). There is no dispute that Hearst is the prevailing party 20 after the dismissal of the amended complaint disposed of all claims as to the merits with no further 21 leave to amend. And a party who prevails on an anti-SLAPP motion is entitled to an award of fees 22 under § 425.16(c). See, e.g., Smith v. Fireside Thrift Co., No. C 07-03883, 2007 WL 2729329, at 23 *2 (N.D. Cal. Sept. 18, 2007). 24 In its opposition brief, SBCC only disputes whether the anti-SLAPP statute permits 25 recovery from all attorney’s fees (in connection with both the plaintiff’s initial complaint and 26 amended complaint) or only those in connection with the amended complaint. Opp. to D’s MAF 27 at 2. SBCC cites to Brown v. Electronic Arts, Inc., 722 F. Supp. 2d 1148, 1156–57 (C.D. Cal. 1 both sequentially dismissed via anti-SLAPP motions, a defendant is not entitled to attorney’s fees 2 or costs in connection with the initial complaint because the defendant was not the prevailing party 3 with respect to the initial complaint. Opp. to D’s MAD at 3. The question a court must address is 4 how much success the defendant achieved in obtaining a dismissal of the initial complaint and 5 amended complaint. In Brown, the court granted the defendant’s motion to strike all the plaintiff’s 6 claims in the initial complaint because the plaintiff never filed an opposition, but the court 7 permitted the plaintiff the opportunity to re-allege those same claims against the defendant, which 8 the plaintiff quickly did. Brown, 722 F. Supp. 2d at 1156. The court explained that, practically 9 speaking, “the posture of the case changed hardly at all following the resolution of [the 10 defendant’s] first motion to strike.” Id.

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