Save Westwood Vill. v. Luskin
Annotate this CaseThe Foundation, a non-profit corporation, acts as a conduit for tax exempt gifts to benefit UCLA. Luskin, a director, pledged $40 million to support construction of a UCLA campus conference center. Save Westwood sought to rescind the donation and to require the Regents of the University of California to pay the city taxes allegedly owing, alleging that the Foundation is “mandated by its by-laws and incorporation documents to exclusively fund charitable undertakings,” that this limitation “applies to the financing of the construction of buildings for exempt purposes,” and that the Luskin grant was applied toward activities that exceed the Foundation’s powers. The defendants filed an anti-SLAPP motion, Code of Civil Procedure section 425.16. Save Westwood argued that neither free speech rights, nor rights of petition were implicated because the claims sought enforcement of the Regents’s fiduciary duties, citing an exemption for public interest lawsuits. It voluntarily dismissed Luskin and the Foundation. The trial court granted the motion to strike. The court of appeal affirmed, noting that claims against Luskin were based on letters about the donation and constructon, which constituted an exercise of free speech on a matter of public interest. The Foundation’s pledge toward the conference center was also an exercise of free speech. Neither Luskin nor the Foundation was a governmental entity, so their actions cannot be “an illegal expenditure or waste.” They owed no mandatory duty to avoid donating funds in a manner that might jeopardize the Foundation’s tax exempt status.
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