Moss Bros. Toy, Inc. v. Ruiz
Moss Bros. Toy, Inc. v. Ruiz
Opinion of the Court
FIELDS J.
*427I. INTRODUCTION
Plaintiff and appellant, Moss Bros. Toy, Inc. (MBT), appeals from the order granting defendant and respondent, Ernesto Ruiz's, anti-SLAPP
We affirm the order granting the anti-SLAPP motion. In the published portion of this opinion, we explain that the entire FAC is based on protected activity, namely, Ruiz's act of filing his lawsuit against MBAG for his employment-related claims in case No. CIVDS2107201-even though the FAC is also based on Ruiz's alleged breach of the 2010 arbitration agreements. In the unpublished portion of this opinion, we explain that MBT failed to demonstrate a probability of prevailing on its claims against Ruiz as alleged in the FAC.
*428II. FACTS AND PROCEDURAL BACKGROUND
A. Ruiz's July 2012 Complaint Against MBAG, and MBAG's First Unsuccessful Petition to Compel Arbitration of Ruiz's Employment-related Claims
In July 2012, Ruiz filed a putative class action complaint against MBAG in case No. CIVDS2107201. ( Ruiz v. Moss Bros. Auto Group, Inc. (2014)
In August 2012, MBAG petitioned the trial court to compel arbitration of Ruiz's individual employment-related claims, pursuant to an arbitration agreement that MBAG claimed Ruiz had electronically signed on September 21, 2011 (the 2011 agreement).
We also concluded in Ruiz I that MBAG could not rely on two other arbitration agreements to support its petition-a March 4, 2010, arbitration *429agreement that MBAG claimed Ruiz electronically signed on March 4, 2010, as part of Ruiz's online employment application, and a March 12, 2010, arbitration agreement that MBAG claimed Ruiz signed by hand when he was hired on March 12, 2010. ( Ruiz I , supra , 232 Cal.App.4th at pp. 841, 846,
B. MBAG's Second Petition to Compel Arbitration and MBT's Subsequent Motion to Intervene in Case No. CIVDS2107201
In March 2015, shortly after the remittitur issued in Ruiz I , MBAG filed a second petition to compel arbitration of Ruiz's individual employment-related claims. ( Ruiz v. Moss Bros. Toy, Inc. (Mar. 10, 2017, E063953)
Although MBAG's second motion to compel arbitration was based on all three agreements, MBAG argued that the 2011 agreement " 'should control' " because it was the " 'last-in-time' " of the three agreements. ( Ruiz II , supra , E063953 [at p. 7].) MBAG argued it was entitled to compel arbitration of Ruiz's employment-related claims with MBT because MBAG was " 'an intended third-party beneficiary of the [three] arbitration agreements' between Ruiz and MBT ." ( Id . [at p. 9].)
*296wrote that it " 'anticipated' " that MBT would " 'file for joinder in this action' because, as Ruiz's employer, MBT had 'a *430direct interest in both the subject matter and arbitration of [Ruiz's] claims....' " ( Ruiz II , supra , E063953 [at p. 9].)
In April 2015, MBT filed an application to intervene in case No. CIVDS2107201 and to join MBAG's second petition to compel arbitration in that action. ( Ruiz II , supra , E063953 [at p. 9].) Following a May 2015 hearing, the court denied MBAG's second motion to compel arbitration, noting that the motion was " 'nothing more than [an untimely] renewal motion arising from the denial of [MBAG's] earlier petition....' " ( Id . [at p. 10].) The court also denied MBT's application to intervene as untimely, noting the application was " 'nothing more than a thinly-veiled attempt by [MBT] to get yet another bite at the apple as to its enforcement of the 2010 and/or 2011 arbitration agreements that are at the center of this dispute.' " ( Id . [at pp. 10-11].) The court also observed that MBAG and MBT were represented by the same counsel, and that in its first motion to compel arbitration MBAG adduced that MBT was Ruiz's " 'actual employer,' " but MBT did not seek to intervene " 'at that time.' " ( Id . [at p. 11].)
In Ruiz II , we affirmed the order denying MBT's application to intervene in case No. CIVDS2107201. ( Ruiz II , supra , E063953 [at pp. 12-18].) We explained that MBT had unreasonably delayed in applying to intervene, there was no excuse for the delay, and MBT did not explain why it did not seek to intervene at the outset of Ruiz's suit against MBAG in case No. CIVDS2107201. ( Id. [at pp. 14-18].) MBT did not seek to intervene in the action until after MBAG had appealed the denial of its first petition to compel arbitration, and until after we affirmed the denial of MBAG's first petition to compel arbitration in Ruiz I . ( Ruiz II , supra , E063953 [at p. 18].)
C. MBT's Current Lawsuit Against Ruiz
In September 2015, shortly after the trial court denied MBT's application to intervene in case No. CIVDS2107201, MBT filed a complaint against Ruiz in Riverside County Superior Court, case No. RIC1511040, for breach of written contract for arbitration of disputes and breach of the covenant of good faith and fair dealing. The complaint alleged Ruiz breached the March 4 and March 12, 2010, arbitration agreements by "fail[ing] to submit his employment-related disputes to binding arbitration" and by instead "fil[ing] a [c]omplaint" against MBAG for his employment-related claims in San Bernardino County Superior Court, case No. CIVDS2107201. MBT also filed a "notice of related cases," advising the *431Riverside County Superior Court that its newly filed action in Riverside County Superior Court case No. RIC1511040 was related to San Bernardino County Superior Court case No. CIVDS2107201. Case No. RIC1511040 was transferred to San Bernardino County and was assigned, as case No. CIVDS1603069, to Judge Pacheco, the judge presiding over case No. CIVDS2107201 and who had issued the orders appealed in Ruiz I and Ruiz II . MBT moved to consolidate the two cases, but Judge Pacheco denied the motion "as an improper attempt to circumvent the Court's prior ruling on [MBT's] motion to intervene...." MBT also petitioned to compel arbitration of the breach of contract and employment-related claims in both cases-this was the third motion to compel arbitration of Ruiz's individual employment-related claims-but this motion was also denied.
The court sustained Ruiz's demurrer to MBT's complaint with leave to amend, and MBT later filed the FAC. The FAC alleges *297three causes of action against Ruiz: breach of written contract for arbitration of disputes, breach of the covenant of good faith and fair dealing, and specific performance of MBT's arbitration contracts with Ruiz. Each cause of action is based on Ruiz's act of refusal to submit his employment-related claims to arbitration and his act of filing of his putative class action complaint against MBAG in case No. CIVDS2107201.
The FAC specifically alleges Ruiz was employed by MBT and Ruiz breached the 2010 arbitration agreements with MBT by "fail[ing] to submit his employment-related disputes" to arbitration and, "by filing a Complaint for employment-related claims [against MBAG] ... in Case No. CIVDS2107201."
*432D. The Trial Court's Ruling on Ruiz's Anti-SLAPP Motion
Ruiz moved to strike the entire FAC as a SLAPP ( § 425.16 ) along with a general demurrer to the entire FAC (§ 430.10, subds. (e), (f)). The court granted the anti-SLAPP motion and deemed the demurrer moot. In granting the anti-SLAPP motion, the court ruled Ruiz had shown that "the alleged acts were in furtherance of his right of petition" and MBT had failed to demonstrate a probability of prevailing on its claims as alleged in the FAC. MBT timely filed this appeal. ( §§ 425.16, subd. (i), 904.1.)
III. DISCUSSION
A. Applicable Legal Principles and Standard of Review
"The anti-SLAPP statute ' "is designed to protect citizens in the exercise of their First Amendment constitutional rights of free speech and petition. It is California's response to the problems created by meritless lawsuits brought to harass those who have exercised these rights.' " [Citation.]" ( Century 21 Chamberlain & Associates v. Haberman (2009)
"Resolution of an anti-SLAPP motion involves two steps." ( Baral v. Schnitt (2016)
If the court determines the defendant has met its threshold burden, it then determines whether the plaintiff has demonstrated a probability of prevailing on the merits of the challenged claim. ( Baral , supra , 1 Cal.5th at pp. 384-385,
*433In the anti-SLAPP context, a claim is not to be confused with a cause of action. (See § 425.16, subd. (b)(1) ; Baral , supra , 1 Cal.5th at p. 393,
We review an order granting or denying an anti-SLAPP motion de novo. ( Flatley v. Mauro (2006)
B. The Entire FAC Is Based on Ruiz's Protected Right of Petition
MBT claims none of the causes of action or claims alleged in the FAC arise from Ruiz's protected right of petition. We disagree. As we explain, the entire FAC is based on Ruiz's protected right of petition. ( § 425.16, subd. (e)(1), (2).)
As noted, section 425.16 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...." ( § 425.16, subd. (b)(1), italics added.) For these purposes, an " 'act in furtherance of a person's right of petition or free speech' " includes the four categories of activities described in section 425.16, subdivision (e). The relevant categories here are: "(1) any written or oral statement or writing made before a legislative, executive, *299or judicial proceeding, ..., (2) any written or oral statement or writing made in connection with an issue under consideration or review by a legislative, executive, or judicial body ...." ( § 425.16, subd. (e)(1), (2).)
"A claim arises from protected activity when that activity underlies or forms the basis for the claim. [Citations.] Critically, 'the defendant's act underlying the plaintiff's cause of action must itself have been an act in *434furtherance of the right of petition or free speech.' [Citations.] '[T]he mere fact that an action was filed after protected activity took place does not mean the action arose from that activity for the purposes of the anti-SLAPP statute.' [Citations]. Instead, the focus is on determining what 'the defendant's activity [is] that gives rise to his or her asserted liability-and whether that activity constitutes protected speech or petitioning.' [Citation.] 'The only means specified in section 425.16 by which a moving defendant can satisfy the ["arising from"] requirement is to demonstrate that the defendant's conduct by which plaintiff claims to have been injured falls within one of the four categories described in subdivision (e)....' [Citation.] In short, in ruling on an anti-SLAPP motion, courts should consider the elements of the challenged claim and what actions by the defendant supply those elements and consequently form the basis for liability." ( Park , supra , 2 Cal.5th at pp. 1062-1063,
Here, Ruiz's anti-SLAPP motion is directed to the entire FAC. Although the FAC alleges three causes of action, it effectively pleads a single "claim" against Ruiz for his breach of the 2010 arbitration agreements with MBT based on his refusal to submit his individual employment-related claims to arbitration and his act of instead filing a putative class action complaint for those claims and others against MBT's agent, MBAG, in case No. CIVDS2107201. ( Navellier , supra , 29 Cal.4th at p. 92,
The FAC alleges Ruiz "breached the arbitration contracts by filing a complaint for employment-related claims" against MBAG, and if MBAG is found liable in case No. CIVDS2107201, then MBT may be liable for the actions of its agent, MBAG, even though MBT is not a named defendant in the case. The FAC seeks money damages for MBT's liability, if any, in case No. CIVDS2107201, and for "legal costs, attorney fees, and time spent" by MBT's employees and officers in responding to class discovery in case No. CIVDS2107201, which the FAC alleges MBT would not have incurred if Ruiz had submitted his individual employment-related claims to arbitration as the 2010 agreements required. The FAC also seeks a judgment compelling Ruiz's specific performance of the 2010 arbitration agreements. Thus, the FAC is based entirely on Ruiz's protected act of filing the complaint against MBAG, an act Ruiz took "in furtherance of [his] right of petition...." ( § 425.16, subd. (b)(1) ; Navellier , supra , 29 Cal.4th at p. 90,
*435Navellier is instructive. There, the defendant, Sletten, entered into an agreement and a release of claims (the Release), with the plaintiffs, after the plaintiffs sued Sletten in federal district court. ( *300Navellier , supra , 29 Cal.4th at pp. 85-86,
The Navellier court held that the plaintiffs' complaint against Sletten for breach of the Release was based on Sletten's protected act of filing his counterclaims in the federal court action. ( Navellier, supra, 29 Cal.4th at p. 90,
Similarly here, MBT is suing Ruiz because of the putative class action complaint Ruiz filed against MBAG. But for Ruiz's filing of the complaint against MBAG, MBT's FAC against Ruiz for breach of the 2010 arbitration agreements would have no factual basis , and MBT would not have incurred any of the damages the FAC alleged MBT has and will incur as a result of Ruiz's breach of the 2010 arbitration agreements and his failure to submit his individual employment-related claims to arbitration. In the language of section 425.16, Ruiz's act of filing the complaint against MBAG involved Ruiz's "statement[s] or writing[s] made before a ... judicial proceeding" ( § 425.16, subd. (e)(1) ), and "statement[s] or writing[s] made in connection with an issue under consideration or review by a ... judicial body" (id ., subd. (e)(2)). That is, Ruiz's act of filing the complaint against MBGA involved Ruiz's protected " ' " 'basic act of filing litigation.' " ' " ( Navellier , supra , 29 Cal.4th at p. 90,
MBT argues the FAC is not based on Ruiz's protected right of petition, but is instead based on Ruiz's breach of the 2010 arbitration agreements and *436MBT's contractual right to enforce Ruiz's performance of those agreements. To be sure, the FAC is based on Ruiz's breach of the 2010 arbitration agreements and on MBT's alleged right to enforce Ruiz's performance of those agreements. But this does not mean the FAC cannot also be based, and is not also based, on Ruiz's protected right of petition or act of filing the complaint against MBAG.
The Navellier court rejected a similar claim. The plaintiffs in Navellier argued their complaint was not covered by section 425.16, but was, instead, " 'a garden variety breach of contract and fraud claim.' " ( Navellier , supra , 29 Cal.4th at p. 90,
MBT's reliance on Haberman , supra ,
Haberman does not support MBT's argument that the FAC is based on Ruiz's breach of the 2010 arbitration agreements rather than on Ruiz's protected right of petition in filing the putative class action complaint against MBAG. Unlike the FAC, the complaint in Haberman was not based on Haberman's protected act of filing a lawsuit. Instead, the complaint sought declaratory relief that no arbitration agreement existed, and was therefore based on Haberman's demand for private arbitration , which is not a protected activity. ( Haberman , supra , 173 Cal.App.4th at pp. 7-9,
MBT also relies on City of Alhambra v. D'Ausilio (2011)
The City of Alhambra court held that the declaratory relief claim was not based on D'Ausilio's protected activity of participating in the demonstrations against the city, but was instead based on the parties' "actual, present controversy ... regarding the scope and enforceability" of the settlement agreement. ( City of Alhambra , supra , 193 Cal.App.4th at p. 1307,
In a subsequent anti-SLAPP case, Mundy v. Lenc (2012)
Despite the settlement agreement, Mundy sued Lenc a second time for another ADA violation, and Lenc cross-complained against Mundy for breach of the settlement agreement. ( Mundy , supra , 203 Cal.App.4th at p. 1405,
Like Mundy , other courts have recognized the critical distinction, in the anti-SLAPP context, between claims based on the protected act of filing a lawsuit and claims based solely or distinctly on the *303alleged breach of an agreement, and similar claims for declaratory relief. For example, in City of Cotati v. Cashman (2002)
Vivian v. Labrucherie (2013)
More recently, in Park , supra ,
Each of these standards was met here. As discussed, the entire FAC is based on Ruiz's protected act of filing the complaint against MBAG, because Ruiz's act of filing that complaint against MBAG constitutes the entire basis of the FAC's singular breach of contract claim. Ruiz's act of filing the complaint against MBAG does not merely provide evidentiary support for the MBT's breach of contract claim, and the FAC was not filed merely because Ruiz filed the complaint against MBAG. ( Park , supra , 2 Cal.5th at p. 1064,
C.-D.
*440IV. DISPOSITION
The order granting Ruiz's special motion to strike MBT's FAC is affirmed. Ruiz *304shall recover his costs of suit. ( Cal. Rules of Court, rule 8.278.)
We concur:
CODRINGTON, Acting P. J.
SLOUGH, J.
"SLAPP is an acronym for 'strategic lawsuit against public participation.' " (Jarrow Formulas, Inc. v. LaMarche (2003)
On our own motion, we take judicial notice of our published decision in Ruiz I . (Evid. Code, §§ 452, subd. (d), 459, subd. (a).)
MBAG asked the trial court to dismiss Ruiz's putative class action and PAGA claims, as part of its order compelling arbitration of Ruiz's individual claims, on the ground Ruiz had waived his right to bring PAGA and putative class action claims by electronically signing the 2011 agreement. (Ruiz I , supra , 232 Cal.App.4th at p. 839, fn. 4,
On our own motion, we take judicial notice of our unpublished decision in Ruiz II . (Evid. Code, §§ 452, subd. (d), 459, subd. (a).)
As we observed in Ruiz II , MBAG explained that MBT was " 'a member of a dealership group, consisting of multiple, independently franchised automobile dealerships and service/parts centers, operating in Riverside and San Bernardino Counties,' " and MBT had the " 'same dispute resolution program,' " namely, binding individual arbitration, " 'adopted by each independently franchised automobile dealership and service/parts center in the entire group.' " (Ruiz II , supra , E063953 [at p. 6].) "[MBAG] thus suggested, without expressly stating, that [MBAG] was a dealership group and that MBT was one of several dealerships and service/parts centers comprising [MBAG]." (Id . [at pp. 6-7].)
In Ruiz II , we observed that the March 12, 2010, agreement identified "MOSS Bros. Toyota-Scion" or MBT as the "Company" or employer of Ruiz. We also observed that both the March 4, 2010, agreement and the 2011 agreement used the term "Company," but neither of these agreements identified the Company or the employer as either MBT or MBAG. (Ruiz II , supra , E063953 [at p. 7].)
The March 4, 2010, and March 12, 2010, arbitration agreements are attached to the FAC as exhibits A and B, respectively.
Following Navellier , other courts have recognized the false dichotomy between claims based on a defendant's breach of contract and the defendant's act of filing litigation. (E.g., Feldman v. 1100 Park Lane Associates (2008)
See footnote *, ante .
Reference
- Full Case Name
- MOSS BROS. TOY, INC., and v. Ernesto RUIZ, and
- Cited By
- 14 cases
- Status
- Published