Wastexperts, Inc. v. Arakelian Enterprises, Inc.

CourtCalifornia Court of Appeal
DecidedJuly 11, 2024
DocketB325299
StatusPublished

This text of Wastexperts, Inc. v. Arakelian Enterprises, Inc. (Wastexperts, Inc. v. Arakelian Enterprises, Inc.) 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
Wastexperts, Inc. v. Arakelian Enterprises, Inc., (Cal. Ct. App. 2024).

Opinion

Filed 7/11/24 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FOUR

WASTEXPERTS, INC., B325299

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. 22STCV19512) v.

ARAKELIAN ENTERPRISES, INC.,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Monica Bachner, Judge. Reversed. Frost, Christopher Frost, John D. Maatta and Nicholas Lauber for Plaintiff and Appellant. Manatt, Phelps & Phillips, Ronald B. Turovsky, Donald R. Brown and Benjamin G. Shatz for Defendant and Respondent. INTRODUCTION Here we conclude that a declaratory relief claim filed in response to an attorney’s cease and desist letter in a waste collection dispute is not a strategic lawsuit against public participation (SLAPP). (Code Civ. Proc., § 425.16.)1 We also conclude that communications sent to non-parties about the dispute fall within the commercial speech exemption to the anti-SLAPP law. (§ 425.17, subd. (c).) Appellant WasteXperts, Inc. (WasteXperts) appeals from the trial court’s order granting a motion to strike its entire complaint. We reverse. We publish to draw attention to our concluding note on civility and persuasive brief writing.

FACTUAL AND PROCEDURAL BACKGROUND I. The Complaint In June 2022, WasteXperts filed a complaint against both respondent Arakelian Enterprises, Inc. dba Athens Services (Athens) and the City of Los Angeles (City). The complaint alleged that Athens holds a waste collection franchise from the City. Los Angeles Municipal Code (LAMC) section 66.01 prohibits anyone from hauling waste on City streets without such a franchise, unless they have an express permit from the City. The contract between Athens and the City permits Athens to impose a “Distance Charge” on individual property owners every time an Athens employee must move a collection bin from its permanent location on the owner’s property to the curbside for collection. Property owners may avoid

1 All subsequent statutory references are to the Code of Civil Procedure, unless otherwise noted.

2 this charge by moving the bins themselves, in advance of collection. The bins belong to Athens, not the property owners. WasteXperts charges commercial and multi-family residential property owners a fee to manage their “on-site” waste gathering; this fee includes moving collection bins from their permanent locations on the property to the curbside for Athens to collect. Athens sent WasteXperts a “cease and desist” letter, arguing that WasteXperts was not legally permitted to handle Athens’s bins. The letter came from Athens’s eventual trial counsel and complained that the competition from WasteXperts was “extremely damaging to Athens’ business operations, financial interests, and economic prospects.” It threatened that Athens would “exercise all remedies” and “seek damages” for this “tortious conduct” which it asserted was “illegal, unfair, and irresponsible.” If WasteXperts did not stop moving the bins to the curb, Athens would “proceed with enforcing [its] rights without any further notice.” At the same time, Athens began refusing to allow WasteXperts to reschedule collection days on behalf of its clients. Athens also sent notices directly to those clients, demanding that the clients compel WasteXperts to stop moving Athens’s bins. In its complaint, WasteXperts sought seven judicial declarations involving both Athens and the City: (1) that the City has no authority to prevent a property owner from hiring an on-site waste manager, (2) that the City cannot give Athens the exclusive franchise to move collection bins to the curb, (3) that the City cannot require a franchise agreement for on-site waste management, (4) that the contract between the City and Athens did not give Athens a franchise for on-site waste management, (5) that the City did not give Athens the exclusive franchise for moving collection bins to the curb, (6) that ratepayers are not required to allow Athens to move collection bins, and

3 (7) that Athens violated its contract with the City when it declined requests to reschedule collection days. The complaint also asserted tort claims against Athens for interference with contract, interference with prospective economic advantage, unfair competition, and trade libel.

II. Anti-SLAPP Motion and Discovery Request Athens responded with an anti-SLAPP motion to strike the entire complaint.2 The motion was filed and served on August 17, 2022. Under section 425.16, subdivision (g), discovery was automatically stayed as of that date. Three court days before the opposition was due, WasteXperts asked Athens if it would stipulate to allow WasteXperts to amend the complaint; as an alternative, WasteXperts asked if Athens would agree to continue the special motion to strike so that WasteXperts could take limited discovery. Athens declined both requests the next day. WasteXperts then filed an ex parte application asking the trial court to (a) shorten time on a motion to lift the discovery stay and (b) continue the hearing on the anti-SLAPP motion. The application was denied the same day the opposition was due.

III. Trial Court’s Order After hearing argument and taking the matter under submission, the court granted the anti-SLAPP motion. On the first prong of the analysis, the court found that each cause of action was based on Athens’s communications

2 The City was not a party to the motion and is not a party to this appeal.

4 to WasteXperts and its clients. The court concluded that these communications anticipated litigation and were therefore protected activity. It also held that the commercial speech exemption contained in section 425.17, subdivision (c) did not apply here. Proceeding to the second prong, the court determined that WasteXperts had no probability of obtaining any of the seven judicial declarations it sought. The court reasoned there was no merit to any argument regarding legal limitations on the City’s power, Athens had the correct interpretation of its contract with the City, and WasteXperts had no standing to dispute that interpretation. Finally, the court found that each tort claim was barred by the litigation privilege contained in Civil Code section 47, subdivision (b).3 WasteXperts timely appealed the order granting the motion.4

DISCUSSION WasteXperts challenges both the denial of its request for limited discovery and the anti-SLAPP order. It argues that none of its claims arise from activity protected by section 425.16. It contends that the “commercial speech” exemption contained in section 425.17 applies here. It also claims that it has shown a probability of prevailing on the merits.

3 The court pointed out certain additional flaws in each tort claim. WasteXperts does not address that portion of the court’s analysis.

4 Athens filed a motion to dismiss the appeal as moot because WasteXperts did not appeal from the subsequent judgment entered by the court. We denied that motion. Respondent argues the point again in its brief. We decline the invitation to reconsider the previous ruling. An order granting an anti-SLAPP motion as to the entire complaint is itself a judgment. (Melbostad v. Fisher (2008) 165 Cal.App.4th 987, 992–997.)

5 I. Analysis Section 425.16, subdivision (b)(1) provides: “A cause of action against a person arising from any act of that person in furtherance of the person’s right of petition or free speech under the United States Constitution or the California Constitution in connection with a public issue shall be subject to a special motion to strike, unless the court determines that the plaintiff has established that there is a probability that the plaintiff will prevail on the claim.” “Anti-SLAPP motions are evaluated through a two-step process.

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)
City of Oakland v. Hassey
163 Cal. App. 4th 1477 (California Court of Appeal, 2008)
Graffiti Protective Coatings, Inc. v. City of Pico Rivera
181 Cal. App. 4th 1207 (California Court of Appeal, 2010)
Melbostad v. Fisher
165 Cal. App. 4th 987 (California Court of Appeal, 2008)
Neville v. CHUDACOFF
73 Cal. Rptr. 3d 383 (California Court of Appeal, 2008)
CKE Restaurants, Inc. v. Moore
70 Cal. Rptr. 3d 921 (California Court of Appeal, 2008)
Episcopal Church Cases
198 P.3d 66 (California Supreme Court, 2009)
City of Cotati v. Cashman
52 P.3d 695 (California Supreme Court, 2002)
Simpson Strong-Tie Co., Inc. v. Gore
230 P.3d 1117 (California Supreme Court, 2010)
Gotterba v. Travolta
228 Cal. App. 4th 35 (California Court of Appeal, 2014)
Demetriades v. Yelp, Inc.
228 Cal. App. 4th 294 (California Court of Appeal, 2014)
Lunada Biomedical v. Nunez
230 Cal. App. 4th 459 (California Court of Appeal, 2014)
Baral v. Schnitt
376 P.3d 604 (California Supreme Court, 2016)
Park v. Bd. of Trs. of the Cal. State Univ.
393 P.3d 905 (California Supreme Court, 2017)
Filmon.Com. Inc. v. Doubleverify Inc.
439 P.3d 1156 (California Supreme Court, 2019)
Action Apartment Ass'n v. City of Santa Monica
163 P.3d 89 (California Supreme Court, 2007)
South Sutter, LLC v. Lj Sutter Partners, L.P
193 Cal. App. 4th 634 (California Court of Appeal, 2011)
Nelsen v. Legacy Partners Residential, Inc.
207 Cal. App. 4th 1115 (California Court of Appeal, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
Wastexperts, Inc. v. Arakelian Enterprises, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/wastexperts-inc-v-arakelian-enterprises-inc-calctapp-2024.