Vopak Terminal Los Angeles v. Santich CA2/2

CourtCalifornia Court of Appeal
DecidedMarch 22, 2023
DocketB316032
StatusUnpublished

This text of Vopak Terminal Los Angeles v. Santich CA2/2 (Vopak Terminal Los Angeles v. Santich CA2/2) 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
Vopak Terminal Los Angeles v. Santich CA2/2, (Cal. Ct. App. 2023).

Opinion

Filed 3/22/23 Vopak Terminal Los Angeles v. Santich CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SECOND APPELLATE DISTRICT

DIVISION TWO

VOPAK TERMINAL LOS B316032 ANGELES, INC., (Los Angeles County Plaintiff and Respondent, Super. Ct. No. 21LBCV00283)

v.

ANTHONY SANTICH,

Defendant and Appellant.

APPEAL from an order of the Superior Court of Los Angeles County, Michael P. Vicencia, Judge. Affirmed.

Newmeyer & Dillion, Michael B. McClellan, Jason L. Morris, Jason Moberly Caruso and Jack M. Rubin for Defendant and Appellant.

Collier Walsh Nakazawa, Joseph A. Walsh II and Ellen E. McGlynn for Plaintiff and Respondent. Defendant and appellant Anthony Santich appeals from the order denying his special motion to strike (anti-SLAPP)1 the operative complaint, or portions of the complaint, under Code of Civil Procedure section 425.16.2 In its complaint, plaintiff and respondent Vopak Terminal Los Angeles, Inc. (Vopak), alleged Santich, in order to exact revenge for the termination of his employment, disclosed confidential information to Daniel Xia (another former Vopak employee). Vopak alleges Santich then arranged for Xia to meet with public officials at the Port of Los Angeles to interfere with Vopak’s lease agreement. It is also alleged that Santich attempted to use the NAACP to harm Vopak by making false statements about its hiring and diversity practices to the vice president of the local chapter. Santich sought to have these claims struck on the ground that his conduct was protected under section 425.16. He argued his communications concerned public issues surrounding the use of public property and goals for hiring and diversity in employment. He did not meet his burden, however, because he failed to show that his conduct contributed to the public discussion on the public issues he identified. We affirm the order denying Santich’s motion.

1 SLAPP stands for strategic lawsuit against public participation. 2 All further statutory references are to the Code of Civil Procedure unless otherwise indicated.

2 BACKGROUND Allegations in the complaint Vopak is engaged in storing, blending, and transferring liquid products, including petroleum, chemicals, and biofuels. It operates a marine terminal and storage facility near berths 186– 190 within the Port of Los Angeles. During the relevant time period Vopak was in the process of negotiating a 30-year extension of Vopak’s lease at the Port. Vopak employed Santich from January 2, 2008, until September 25, 2020. During his employment, Santich agreed to Vopak’s employee confidentiality policy, which included: “Upon becoming an employee of Vopak, an individual assumes the obligations not to disclose Vopak’s Confidential Information to individuals, businesses, governmental entities or any other parties outside of Vopak and not to permit Vopak’s Confidential Information to be used by any such individuals, businesses, governmental entities or parties or by Employee for his or her own purposes.” Confidential information was defined to mean “all commercially sensitive, proprietary or otherwise confidential information of Vopak, including, but not limited to, Vopak’s trade secrets that have been developed or used or that will be developed and that cannot be readily obtained by third parties from outside sources.” Vopak terminated Santich’s employment, effective September 25, 2020. Vopak and Santich entered into a confidential separation agreement and general release that included an agreement not to disparage or criticize Vopak’s management, services, products, or practices and not to damage its reputation.

3 After his employment was terminated, Santich began expressing his frustration with Vopak and its management to Xia. Santich then asked and encouraged Xia to interfere with lease negotiations between Vopak and the Port of Los Angeles. Santich promised to employ Xia in a business they would form if their concerted efforts to oust Vopak from the terminal were successful. Santich advised Xia that he could not be involved due to provisions in his separation agreement with Vopak. Santich then arranged for Xia to meet with Jacob Haik, deputy chief of staff for Los Angeles City Councilman, Joe Buscaino; harbor commissioner for the Port of Los Angeles, Ed Renwick; and Gene Seroka, executive director for the Port of Los Angeles. Santich discussed negotiating points with Xia before the meetings and instructed Xia to tell the officials that they could extract an additional $75 to $100 million from the lease of Vopak’s terminals if they sought an open bid instead of negotiating through Vopak. Vopak alleged that these statements and actions caused the disclosure of Vopak’s confidential information for Santich’s benefit. This included trade secrets, lease negotiation strategy, customer information, pricing techniques, financial data, and Vopak’s valuation of wharfage fees. Santich also provided Xia with contact information for Scott McGowan and Idaho Asphalt Supply, Inc., in order to encourage them to submit a bid or proposal if the Port of Los Angeles sought an open bid on Vopak’s terminal at the Port of Los Angeles. In addition to his discussions with Xia, Santich discussed Vopak’s hiring and diversity practices with the San

4 Pedro/Wilmington branch of the NAACP. Santich allegedly did this to disparage Vopak’s reputation in the community. Vopak sent a cease-and-desist letter on March 23, 2021, to Xia. At Santich’s request, Xia deleted his records and correspondence. Santich also constructed a false narrative and timeline with Xia who was instructed to keep Santich’s name out of any discussions with Vopak. On May 24, 2021, Vopak filed its complaint against Santich alleging six causes of action. Vopak incorporated all of its general allegations into each of its causes of action, including the allegations that Santich engaged in speech directed to public officials and the NAACP branch. In its first cause of action Vopak alleged Santich breached the employee confidentiality policy by aiding the disclosure of Vopak’s confidential information to port officials and Haik “as detailed in paragraphs 5 - 75, above.” Vopak added that copies of its employee handbook and Santich’s signature acknowledging receipt of the employee confidentiality policy are attached as exhibits A and B to the complaint. The exhibits were not attached, however. In its second cause of action, Vopak alleged Santich breached the separation agreement by aiding the disclosure of Vopak’s confidential information to port officials and Haik “as detailed in paragraphs 5 - 75, above.” Vopak alleged that a copy of the separation agreement is attached as exhibit C to the complaint, but no exhibit was attached. In its third cause of action, Vopak alleged Santich’s individual or concerted actions with the Port of Los Angeles harbor commissioners and city council representatives have made

5 Vopak’s existing contractual performance more difficult and expensive. In its fourth cause of action, Vopak alleged that Santich interfered with the negotiations between Vopak and the Port of Los Angeles concerning a lease agreement.

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