Clarity Co. Consulting v. Gabriel
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Respondent, a consulting company, entered into a written contract whereby respondent agreed to provide services to a health care company on an hourly basis. Appellant, a licensed attorney, is the General Counsel of the health care company. When the health care company did not pay for services, the respondent filed a complaint alleging an ordinary breach of contract. Acting in his individual capacity, appellant filed a special motion to strike the complaint as a strategic lawsuit against public participation (“SLAPP”). His complaint consisted of six causes of action. Appellant contends that the trial court erroneously determined that he had failed to satisfy the first step of the anti-SLAPP statute he also claims that the trial court abused its discretion in awarding attorney fees.
The Second Appellate District reasoned that the Legislature enacted anti-SLAPP statute to provide a procedural remedy to dispose of lawsuits that are brought to chill the valid exercise of constitutional rights. Here, the court looked to only the first step under the statute because the trial court determined appellant had failed to carry its initial burden. He argued that respondent’s causes of action for intentional misrepresentation and concealment invaded his ability to advise his client and attacked his settlement efforts. The court held that while settlement discussions constitute protected activity, the fifth and sixth causes of action had nothing to do with settlement discussions nor did they arise from protected speech. Thus, the court affirmed the trial court’s orders denying appellant’s special motion and imposing sanctions.
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