Morris Cerullo World Evangelism v. Newport Harbor Offices etc.
Annotate this CaseMorris Cerullo World Evangelism (MCWE) appealed an order denying its special motion to strike, made pursuant to Code of Civil Procedure section 425.16 (the anti-SLAPP statute), which was directed to three affirmative defenses for setoff pleaded by Newport Harbor Offices & Marina, LLC (NHOM) in its answer to MCWE’s cross-complaint. The appeal presented two issues: (1) could a special motion to strike under section 425.16 (b) be directed to an affirmative defense pleaded in an answer; and (2) did an affirmative defense for setoff constitute a cause of action or claim for relief subject to an anti-SLAPP motion to strike.The Court of Appeal answered the questions presented: (1) no - an anti-SLAPP motion could not be directed to an affirmative defense; and (2) also no - an affirmative defense for setoff cannot constitute a cause of action or claim for relief subject to an anti-SLAPP motion. Only a “cause of action” asserted by a plaintiff, cross-complainant, or petitioner could be the subject of an anti-SLAPP motion. "A cause of action seeks relief. An affirmative defense cannot seek relief and is not asserted by a plaintiff, a cross-complainant, or a petitioner." Further, the Court held setoff, as an affirmative defense, could not give rise to affirmative relief. "California Supreme Court authority holds that the affirmative defense of setoff may only be used defensively and does not permit recovery of the damages sought to be set off against the opposing party’s recovery."
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