Resolute Forest Prods., Inc. v. Greenpeace Int'l
Resolute Forest Prods., Inc. v. Greenpeace Int'l
Opinion of the Court
Plaintiffs Resolute Forest Products, Inc., Resolute FP US. Inc., Resolute FP August, LLC, Fibrek General Partnership, Fibrek U.S., Inc., Fibrek International, Inc., and Resolute FP Canada, Inc. ("Resolute" or "Plaintiffs") filed this case alleging claims for violation of the federal RICO laws
In one motion before the Court, Defendants Stand, formerly known as ForestEthics, and Todd Paglia ("Paglia"), the organization's Executive Director, move to dismiss Resolute's complaint in its entirety for failure to state a claim upon which relief can be granted under Rule 12(b)(6) of the Federal Rules of Civil Procedure. ECF No. 55. In a second motion, Defendants Stand and Paglia move to strike Resolute's complaint under Georgia's statute concerning Strategic Lawsuits Against Public Participation ("anti-SLAPP"), O.C.G.A. § 9-11-11.1, arguing that the complaint interferes with their speech and conduct protected under the First Amendment. ECF No. 56. In a third motion, Defendants Greenpeace International, Greenpeace, Inc., Greenpeace Fund, Inc., and Greenpeace employees Daniel Brindis, Amy Moas, Matthew Daggett, and Rolf Skar ("All Greenpeace Defendants" or "Greenpeace") also move to strike Resolute's complaint under Georgia's anti-SLAPP statute, or, in the alternative, under California's anti-SLAPP statute,
This court GRANTS Defendants' three motions to dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure to all claims. The Court also GRANTS both motions to strike as to all state claims.
II. BACKGROUND
A. Factual Background
Plaintiff Resolute is a multi-entity company in the forest products industry, which harvests trees, and mills wood to create paper and generate products, among other activities. Complaint ¶ 24. Resolute Forest Products, Inc. is the parent company of the remaining Resolute plaintiffs.
Resolute alleges that, beginning around 2012, and continuing through the present, Greenpeace targeted the company with a number of media campaigns designed to reduce the forestry company's profits through false or misleading statements about the company's impacts on the environment and on indigenous communities. Complaint ¶¶ 5-19. According to Resolute, Greenpeace also spread false information in order to "fraudulently induce donations" to "pay its leaders and continue raising more funds." Complaint ¶¶ 44, 53.
Specifically, Resolute claims that in 2012, Greenpeace published a false report accusing the company of logging in an area of Canada's Boreal forest protected by an environmental agreement, the Canadian Boreal Forest Agreement ("CBFA"). Complaint ¶ 73. According to Resolute, Greenpeace later admitted that it had "incorrectly stated that Resolute had breached the [CBFA]." Complaint ¶ 78. Greenpeace then began a campaign referring to Resolute Forest Products as "Resolute Forest Destroyer," in which it fabricated "phony photographic evidence" and misrepresented the location of Resolute's logging. Complaint ¶ 81. According to Resolute, the term "forest destroyer" is false because the company harvests only a small portion of the Boreal forest. Complaint ¶ 89, 103. Resolute accuses Greenpeace of "bad faith" because the organization once reported that a logging moratorium to which Resolute was a party protected woodland caribou habitat, but then later described Resolute's logging activities within that area-which Resolute characterizes as "miniscule"-as "endangering" the caribou. Complaint ¶ 109. Additionally, Resolute accuses Greenpeace of falsely criticizing the forestry company's relationship with indigenous communities, when in fact the company employs community members, notwithstanding lay-offs "result[ing from] economic and market realities." Complaint ¶¶ 115-17, 122. Finally, Resolute claims that Greenpeace committed additional bad acts when volunteers placed banners on a Montreal landmark claiming injustice by Resolute, and when supporters presented Resolute with a "guardian tree" containing 61,000 signatures asking Resolute to protect the forest. Complaint ¶ 194. In sum, Resolute alleges that Greenpeace *1012publishes "whopping lie[s] ... misrepresenting Resolute's harvesting as a major climate change risk." Complaint ¶¶ 86, 100.
Much of the complaint is devoted to Resolute's criticism of Defendants' choice of tactics. For example, Resolute criticizes Greenpeace's strategy of using "sensational headlines," as Greenpeace leaders have admitted to "emotionalizing issues" to increase pressure. Complaint ¶¶ 51-53. Resolute also claims harm from Greenpeace's use of particular words, such as "ancient," "old," and "endangered," to describe the forest it seeks to protect. Complaint ¶ 89. Resolute claims that Greenpeace's tactics show that the organization does not "actually care about ... real environmental protection," has no "genuine interest" in protecting the forest, and that "science and truth are not important to Greenpeace." Complaint ¶¶ 56, 60, 63, 83. Relatedly, Resolute claims it was harmed by Greenpeace's omission of certain favorable facts about Resolute in its campaigns, such as the fact that Resolute impacts only a very small percentage of the caribou population in the forests in which it operates, and that Resolute follows some forestry management standards. Complaint ¶¶ 11, 92.
Resolute claims that Greenpeace, Inc., Greenpeace International, Greenpeace Fund, Stand and Paglia closely coordinated the above described "disinformation campaign and broader attacks." Complaint ¶ 46. Resolute alleges that the Defendants agreed to coordinate this campaign, and carried it out as a racketeering scheme and a "criminal enterprise." Complaint ¶¶ 42-44.
Resolute claims that as a result of the Defendants' coordinated publications and associated activism, a number of the company's corporate customers in Europe and the United States, such as 3M and Best Buy, withdrew their business from Resolute, causing the company up to $100 million CND in economic harm. Complaint ¶¶ 155, 166-67. Accordingly to Resolute, the Defendants also caused independent auditors such as Rainforest Alliance and Forest Stewardship Council to issue bad reviews of the company. Complaint ¶¶ 86-88. Resolute accordingly claims damages to its reputation and goodwill. Complaint ¶¶ 213-16. Finally, Resolute seeks an injunction against "wrongful activity and disgorgement." Complaint ¶ 319.
B. Procedural History
Resolute filed the complaint in this action on May 31, 2016 in the Southern District of Georgia. ECF No. 1. The complaint includes eleven causes of action:
(1) Racketeering in violation of
(2) Racketeering in violation of
(3) Conspiracy in violation of
(4) Racketeering in violation of state law on the basis of the same acts alleged under federal racketeering;
(5) Conspiracy in violation of state law on the basis of the same acts alleged under federal conspiracy;
(6) Defamation on the basis of "knowingly and intentionally publish[ing] false and injurious statements" that Resolute's logging is destructive, with actual malice because they knew or had reckless disregard with respect to the truth;
(7) Tortious interference with prospective business relations on the basis of unspecified acts;
(8) Tortious interference with contractual relations on the basis of unspecified acts;
(9) Conspiracy in violation of state common law on the basis of unspecified acts;
(10) Trademark dilution in violation of state law on the basis of the "Resolute Forest Destroyer" campaign; and
(11) Attorney's fees under state law.
Complaint ¶ 218-318. Plaintiffs also seek treble damages under their federal and state RICO causes of action. See e.g., Complaint ¶ 253. All claims are alleged against all defendants. ECF No. 1 at 92-122.
The Defendants moved to stay discovery, arguing that they intended to move for dismissal and to strike. ECF No. 35. The Defendants then moved to dismiss and strike the complaint in five separate motions, which are the subject of this order. ECF No. 55, 56, 60, 61, 62. The district court in Georgia granted the defendants' motion to stay discovery, reasoning that "[b]ased on a preliminary peek at the defense motions, [there was] an immediate and clear possibility of rulings that would dismiss some or all of the claims and/or Defendants," especially "in light of the complaint's grand scope of factual allegations, claims, and defendants." ECF No. 66; see also ECF No. 91 (denying motion to lift stay of discovery).
Concurrently with their motions to dismiss and strike, the Defendants also filed motions to transfer venue under
Although the motions to dismiss and strike were fully briefed in the district court in the Southern District of Georgia, briefing on the motions continued in this Court after transfer. The Other Greenpeace Defendants filed a Supplemental Brief in Support of their Motions to Dismiss and Strike arguing that California choice of law analysis applies to both motions, and that under such analysis, California substantive law applies. ECF No.
*1014127 at 5-10. Defendant Greenpeace Fund also filed a Supplemental Brief in Support of their Motions to Dismiss and Strike, arguing that Resolute failed to state a claim that overcame First Amendment defenses. ECF No. 144. Plaintiffs' Supplemental Memorandum opposing the Greenpeace Defendant's Rule 12(b)(6) Motions to Dismiss and Strike argued that anti-SLAPP did not apply to federal claims and that Plaintiffs met their burden as to anti-SLAPP and state claims. ECF No. 148. Defendants Stand and Paglia provided a Supplemental Brief with citations to Ninth Circuit, Northern District of California, and California state law regarding the claims and defenses. ECF No. 161. Plaintiffs filed a Supplemental Memorandum opposing Defendants' Supplemental briefs arguing that its complaint adequately pleaded RICO violations by Greenpeace Fund and Stand, and actual malice as to all Defendants. ECF 165. Finally Greenpeace Fund filed a Supplemental Reply arguing that Plaintiffs failed to state a claim. ECF No. 168.
C. Jurisdiction
The Court has federal question and pendent jurisdiction over this action under 28 U.S.C.§§ 1331 and 1367.
D. Choice of Law
Because the case was brought under Georgia law and transferred, this Court must first determine what law governs. The first choice of law question is which state's choice of law analysis applies. In federal question cases, where, as here, a case is transferred for improper venue, the choice of law of the transferee state applies. Nelson v. Int'l Paint Co.,
California follows the governmental interest approach to choice of law. Hurtado v. Superior Court,
III. ANALYSIS
A. Motions to Dismiss
1. Legal Standard
"To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.' " Ashcroft v. Iqbal,
Resolute's RICO claims are subject to a higher pleading standard because they are based in fraud. When a civil RICO claim is based in fraud, the heightened pleading standard of Rule 9(b) of the Federal Rules of Civil Procedure applies. See Edwards v. Marin Park, Inc.,
*10162. Analysis
a. Defamation and Related State Law Claims
Defendants contend that Resolute fails to state a claim for defamation under state law, and the related causes of action for tortious interference with contractual and prospective relationships. Defendants assert that Resolute is a public figure for the purposes of their claims, and as a result, must allege actual malice as an element of its defamation and related state law claims. ECF Nos. 55-1 at 29-30, 62 at 26-27. Resolute, for its part, does not meaningfully contend that it is not a public figure, and asserts instead that actual malice is shown "in spades." ECF No. 75 at 69 n.31.
When a Plaintiff who is a public figure brings a defamation claim, that plaintiff must demonstrate that the alleged defamatory statements were made with actual malice. Makaeff v. Trump Univ., LLC,
This Court must first determine whether Resolute is a public figure. The Ninth Circuit has explained that there are two types of public figures: "(1) all-purpose public figures, who occupy 'positions of such persuasive power and influence that they are deemed public figures for all purposes,' and (2) limited purpose public figures, who achieve their status by 'thrust[ing] themselves to the forefront of particular public controversies in order to influence the resolution of the issues involved.' " Makaeff,
The Court finds, however, that Resolute is a limited public figure for the purposes of the claims involved in this case.
Whether Resolute met the third factor by "voluntarily inject[ing] itself" into this public controversy is a closer call. In concluding that Trump University was a limited public figure, the Ninth Circuit held that "large scale, aggressing advertising can inject a person or entity into a public controversy that arises from the subject of that advertising."
Because Resolute is a limited public figure, the company must show that the Defendants' speech and related actions were made with actual malice. Makaeff,
To determine whether a plaintiff adequately pleads actual malice, the court must "disregard the portions of the complaint where [the Plaintiff] alleges in a purely conclusory manner that the defendants had a particular state of mind in publishing the statements as '[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements,' are insufficient to support a cause of action." Michel v. NYP Holdings, Inc.,
if the defendant provide[d] no source for the allegedly defamatory statements[,] if the purported source denies giving the information, [if] the allegedly defamatory statements were based wholly on an unverified anonymous telephone call or were published despite obvious [specified] reasons to doubt the veracity of the informant or the accuracy of his reports or despite the inherently improbable nature of the statements themselves.
Biro v. Conde Nast,
"States of mind may be pleaded generally, but a plaintiff still must point to details sufficient to render a claim plausible." Pippen v. NBCUniversal Media, LLC,
One such detail regarding state of mind that must be pled is that the speaker itself held the requisite state of mind. "When there are multiple actors involved in an organizational defendant's publication of a defamatory statement, the plaintiff must identify the individual responsible for publication of a statement, and it is that individual the plaintiff must prove acted with actual malice." Palin,
Resolute's complaint does not meet its burden of pleading actual malice with the requisite specificity. Resolute asserts, without corresponding details, that *1019"[t]he false and defamatory statements set forth herein concerning Plaintiffs were made and published with actual malice, as such statements were made by Defendants with knowledge of their falsity or reckless disregard for their truth." Complaint ¶ 282. This is, at most, "a formulaic recitation of the elements of a cause of action," which the Supreme Court has made clear "will not do." Twombly,
Moreover, even if these allegations were sufficiently specific to meet the "demanding burden" of showing Greenpeace spoke with an actually malicious mindset, Resolute still falls short because the company never alleges who among the "Greenpeace enterprise" made the knowingly false statements. All of Resolute's discussions of photograph faking and map redrawing fail to specify what individual did the faking, and Resolute does not allege that the speaker of the alleged false statements regarding the CFBA knew that the photos were faked or maps redrawn. While Resolute does specifically allege some statements by specific individuals, for example that Rolf Skar emailed Hearst fake evidence showing a violation of the CFBA, it does not allege that Skar knew this evidence was fake nor that any specific Greenpeace individual made a false claim relying on information, including photos or maps, that individual knew to be false at the time they made the claim. Complaint ¶ 151. Accordingly, Resolute fails to state a claim for actual malice.
Additionally, while the facts pleaded in Resolute's complaint could, if true, show ill will or bad faith, such a showing cannot support actual malice. For example, Resolute claims Greenpeace operated in bad faith because it earlier stated that the caribou population was protected, and then later stated that it was endangered by Resolute's activities. Complaint ¶ 108. The Ninth Circuit has held that evidence showing that a party had "initial enthusiasm" for, but later made negative statements against, the party suing her for defamation was "not probative of whether she acted with actual malice."
*1020Makaeff,
Accordingly, this Court dismisses Resolute's state defamation claim (Count 6), and related state tort claims (Counts 7 and 8) for failure to state a claim showing actual malice. See Wynn,
Additionally, many of Defendants' publications and statements-such as the publication entitled "Sending a resolute message to a forest destroyer # standforforests"-appear to be shielded by the First Amendment as statements that are not "provable as false," or statements that "cannot reasonably be interpreted as stating actual facts." Milkovich,
In its quest to describe Greenpeace's statements as matters of fact instead of opinion, Resolute often takes an overly literal approach to obviously overemphatic speech. For instance, Resolute refers to a Greenpeace campaign that describes Resolute as a Canadian Boreal "Forest Destroyer." ECF No. 1 ¶ 5. Resolute's claim depends on construing the word "destroy" to mean "annihilate" or "eliminate completely." In this vein, Resolute's expert witness Peter Reich states, "Resolute has not destroyed, and is not destroying, the boreal forest. Because almost all harvested stands grow back to boreal forest, Defendants' claims about Resolute's forest 'destruction' cannot be true." ECF No. 77 (Reich Decl.) ¶ 10.
As any reader of Greenpeace's statements will know, these are not the only permissible constructions. The word "destroy" is a perennial instrument of hyperbole. See, e.g., Edward Barsamian, "Gigi Hadid Takes on the New Look of Destroyed Denim," Vogue (Feb. 3, 2015) (online ed.) (https://www.vogue.com/article/gigi-hadid-style-destroyed-denim). The Vogue writer here does not intend to convey that Ms. Barsamian's jeans have been completely annihilated, but merely that they are "worn with deliberate tears at the knee" or "riddled with curious new holes." Similarly, when the entertainment writer Shaunee Flowers states that "Kanye West destroys Wiz Khalifa on Twitter and it's epic," she is not suggesting that Mr. West has actually eliminated Mr. Khalifa, but only that he has made disparaging comments about him on social media. Shaunee Flowers, "Kanye West Destroys Wiz Khalifa On Twitter And It's Epic-Even Amber *1021Rose Gets Involved," Inquisitr.com (Jan. 27, 2016) (https://www.inquisitr.com/2744304/kanye-west-destroys-wiz-khalifa-on-twitter-and-its-epic-even-amber-rose-gets-involved/). And even cabining the use of the word "destroy" as Resolute does, Greenpeace's expert makes plain that "destruction" can mean many things. "If the fundamental nature of the forest is degraded during the course of management-for example by the loss of wildlife species or ecological processes-then we can also reasonably say that it has been destroyed. After all, a forest consists of more than its trees." ECF No. 98-3 (Malcolm Decl.) ¶ 6.
Moreover, many of Greenpeace's publications at issue rely on scientific research or fact. See e.g., ECF No. 62 at 23. "A statement of opinion based on fully disclosed facts can be punished only if the ... facts are themselves false and demeaning." Standing Comm. on Discipline v. Yagman,
b. RICO Claims
The Defendants move to dismiss Resolute's RICO claims on two grounds: (1) Resolute fails to plead its RICO claims with the required specificity, and (2) Resolute fails adequately to allege proximate cause. ECF No. 55-1 at 4, 17.
*1022Resolute's RICO claims sound in fraud. In its RICO causes of actions, Resolute avers that "[i]t was the purpose of the Greenpeace Enterprise to create and disseminate false and misleading reports and information ... for the unlawful purpose of soliciting fraudulent donations from the public at-large." Complaint ¶ 222; see also, e.g., Complaint ¶ 224 (describing Greenpeace's "artifices to defraud"), Complaint ¶ 241 (referring to "fraudulently induced donations" and "fraudulent misappropriation of proprietary customer, sourcing, or other trade secret information"). Resolute specifically claims that the Defendants committed predicate acts of mail and wire fraud in violation of
Resolute must therefore meet Rule 9(b)'s heightened pleading standards for each of its RICO causes of action. Namely, Resolute must "state the time, place, and specific content of the false representations as well as the identities of the parties to the misrepresentation." Edwards,
Resolute has also failed to show proximate cause as to its RICO claims. To have standing under RICO, a plaintiff must allege that the RICO violation proximately caused injury to its business or property. Holmes v. Securities Investor Protection Corp.,
(1) whether there are more direct victims of the alleged wrongful conduct....; (2) whether it will be difficult to ascertain the amount of the plaintiff's damages attributable to defendant's wrongful conduct; and (3) whether the courts will have to adopt complicated rules apportioning damages to obviate the risk of multiple recoveries.
Mendoza v. Zirkle Fruit Co.,
Resolute's RICO claims based on alleged Hobbs Act violations fail for an additional, separate reason: Resolute fails to allege predicate acts of extortion under the Hobbs Act. There is no Hobbs Act claim because the Defendants have not obtained "property from another, with his consent, induced by wrongful use of actual or threatened force, violence, or fear, or under color of official right."
*1024Sekhar v. United States,
B. Motions to Strike
Although each of Resolute's claims is dismissed for failure to show actual malice, or for failure to state a claim under RICO, this Court nonetheless addresses the motions to strike "[b]ecause the issue of attorney's fees and costs is not rendered moot by a dismissal." Robinson v. Alameda Cnty.,
California law provides for the pre-trial dismissal of certain actions called Strategic Lawsuits Against Public Participation, or SLAPPs, that " 'masquerade as ordinary lawsuits' but are intended to deter ordinary people 'from exercising their political or legal rights or to punish them for doing so.' " Batzel v. Smith,
1. Applicability of Anti-SLAPP
The Ninth Circuit has made clear that "California anti-SLAPP motions to strike and entitlement to fees and costs are available to litigants proceeding in federal court." Thomas v. Fry's Electronics, Inc.,
While California's anti-SLAPP statute clearly applies to state claims brought in federal courts, see supra, and even to federal claims brought in state court, see Vergos v. McNeal,
Defendants argue that because California's anti-SLAPP statute applies broadly to all first amendment protected conduct, the anti-SLAPP statute should extend to Plaintiffs' federal RICO claims. ECF No. 162 at 8-9. Defendants are correct that in California state courts, "the nature ... of the action is not what is critical" to anti-SLAPP analyses. Church of Scientology v. Wollersheim,
2. Legal Standards
The Ninth Circuit evaluates anti-SLAPP motions in two steps: "First, the defendant must 'make a prima facie showing that the plaintiff's suit arises from an act by the defendant made in connection with a public issue in furtherance of the defendant's right to free speech under the United States or California Constitution.' " In re NCAA Student-Athlete Name & Likeness Licensing Litig.,
Second, Plaintiffs must establish "a reasonable probability" that they "will prevail" on their claims. Batzel,
3. Analysis
As to the first step of the anti-SLAPP analysis, it is clear that the Defendants were involved in protected activity with respect to Resolute's state claims. According to the company itself, the activities at issue in its claims include that Greenpeace: published a report stating that Resolute breached a forest protection agreement, referred to the company as a "forest destroyer," presented the company with thousands of signatures asking it to protect the forest, published reports entitled, for example, "Why Forests Are Critical For Public Health," and publicly represented the company's "harvesting as a major climate change risk." Complaint ¶¶ 73, 81, 194, 226. The Ninth Circuit has concluded that "statements warning consumers of fraudulent or deceptive business practices constitute a topic of widespread public interest." Makaeff,
As for the second step, Resolute has not met its burden of showing a probability of success on its state claims as a matter of law. See Metabolife,
4. Attorney's Fees and Costs
"[A] prevailing defendant on a special motion to strike shall be entitled to recover his or her attorney's fees and costs." Cal. Code Civ. Proc. § 415.16(c)(1). The attorneys' fees provision under anti-SLAPP motions is mandatory, unlike fees for motions to dismiss. See *1027Makaeff,
It is unclear to the Court why Resolute pleaded attorney's fees under Georgia state law as a separate claim for relief, with only one paragraph, and no facts or argument for why fees are due. Complaint ¶ 318. It is also unclear, as with several of Resolute's claims, whether it continues to prosecute that claim under California state law. In any event, the Defendants are due attorney's fees and costs at this juncture, at least as to the state law claims for which this court grants Defendants' motions to strike, and Resolute is not.
C. Discovery
Resolute contends that neither the motions to dismiss nor the motions to strike can be granted until Resolute has been afforded the opportunity to take discovery.
As to the motions to strike, federal courts allow for discovery before granting an anti-SLAPP motion on grounds of factual insufficiency, because under Rule 12 of the Federal Rules of Civil Procedure the "sufficiency of a plaintiff's case will be tested prior to discovery only for legal sufficiency." Makaeff,
Resolute's reference to Metabolife does not convince the Court otherwise.
For the same reasons that the Court holds that discovery is not due before it strikes Resolute's claims, the Court also holds that discovery is not due before it dismisses the claims under Rule 12(b)(6) of the Federal Rules of Civil Procedure. Like the motions to strike, this Court dismisses Resolute's claims as a matter of law, not on the basis of facts or sufficiency of the evidence. Indeed, another court in this district recently dismissed a case dismissed on legal grounds over similar objections from a plaintiff. See Wynn,
Although the Ninth Circuit has not yet had occasion to consider this question-whether discovery should be afforded prior to a dismissal on the basis of actual malice post- Iqbal-the circuits that have considered the question have uniformly held that *1028a claim may be dismissed for failing plausibly to allege actual malice without permitting discovery. See e.g., Michel,
No discovery on actual malice, or otherwise, is due to Resolute.
CONCLUSION
Defendants' motions to dismiss are granted in full. This Court dismisses Counts 1-11 and grants in full the motions at ECF Nos. 55, 61, and 62. Defendants' motions to strike, at ECF No. 56 and 60, are granted in part, such that the state claims are dismissed from the complaint entirely. This Court strikes Counts 4-11.
This Court's orders as to the motions to dismiss and strike are without prejudice, and Plaintiffs may file an amended complaint. "[G]ranting a defendant's anti-SLAPP motion to strike a plaintiff's initial complaint without granting the plaintiff leave to amend would directly collide with Fed. R. Civ. P. 15(a)'s policy favoring liberal amendment." Verizon Delaware, Inc. v. Covad Commc'ns Co.,
Any amended complaint must be filed within twenty-one days of the date of this order.
IT IS SO ORDERED.
The Racketeer Influenced and Corrupt Organizations Act,
Plaintiffs originally brought suit in the Southern District of Georgia, but that Court found venue improper and transferred the case here. ECF No. 57; ECF No. 104.
The complaint also includes a few specific allegations against Stand. For example, Resolute alleges that Defendant Stand threatened it in May 2013, when the organization offered to either work with or target Resolute in a public campaign. Complaint ¶ 93.
To demonstrate a sustained conspiracy, Resolute describes a number of Greenpeace activities unrelated to any acts carried out against Resolute. For example, Resolute criticizes Greenpeace for an alleged emotionalized campaign against nuclear power, Complaint ¶ 52, for walking on a protected site in Peru, Complaint ¶ 64, for publications criticizing tuna fishing, Complaint ¶ 57, and for targeting a scientist scheduled to testify before Congress about carbon pollution. Complaint ¶ 65.
Throughout their briefing, the parties suggest that this Court take judicial notice of various documents and facts but do not make separate or formal requests for judicial notice. ECF No. 60 at 6; ECF No. 62 at 6 n.3, 22 n. 23 & n.26; ECF No. 168 at 21 n. 7. The Court did not rely on these documents and facts in making its rulings and so declines to rule on judicial notice.
At several points throughout the litigation, Defendants have asserted that the district court lacked personal jurisdiction over them on the basis of insufficient minimum contacts. See, e.g. ECF No. 55 at 2, ECF No. 62 at 8-9, ECF No. 94 at 8 n. 5, ECF No. 95 at 6 n.3. Defendants have not prosecuted this particular ground for dismissal since the case was transferred to this Court, and the Court does not address the argument.
The Defendants also suggest that a "heightened pleading standard" applies because the case involves conduct protected by the First Amendment. ECF No. 168 at 8-10. The standard they urge the Court to apply, however, is the "plausibility" standard set forth in Ashcroft v. Iqbal,
Defendants offer additional reasons to dismiss the claims. For example, Defendants Stand and Paglia argue that Resolute's complaint is an impermissible "shotgun" pleading, is in large part time-barred by California's one-year limitations period, and that its statements were opinion or true. ECF No. 55-1 at 4, 17, 25, 28, 31. Likewise, the Other Greenpeace Defendants argue that many of the alleged defamatory statements were made by a non-party, Greenpeace Canada, the entity responsible for much of the Boreal forest campaign. ECF No. 62 at 19. That the Court does not address these and other arguments should not be taken as an indication of their merits.
Resolute has not argued against the contention that the company is a public figure.
The Court agrees with the Defendants that Resolute failed to state a claim for a trademark violation (Count 10) as the complaint fails to allege ownership of any trademark or any competitive use of the its trademark. See 1 McCarthy on Trademarks and Unfair Competition § 2:10 (5th ed.) ; ECF No. 62 at 38.
Professor Reich supports this conclusion when he states that his analysis of the forestry industry's impact on Canada's caribou population is based on science that is "complex" and "uncertain." ECF No. 77 ¶¶ 43-44 ("It is difficult for scientists to agree on what scale sustainability should be measured.... Scientists are uncertain about what sustainable biodiversity is [and]what healthy forests are.").
To state a successful claim under RICO, a plaintiff must allege "(1) conduct (2) of an enterprise (3) through a pattern (4) of racketeering (known as 'predicate acts') (5) causing injury to the plaintiff's 'business or property.' " Grimmett v. Brown,
Fraud is not apparent from the titles of the reports, which include "Will You Stand for the Boreal Forest?" and "Posted: Good News for the Forest!" Complaint ¶¶ 226-27.
This Court agrees with Defendants Stand and Paglia that Resolute fails to state a claim for its state RICO claims for the same reasons it fails to state a claim for its federal RICO claims, and so dismisses the claim (Count 4). ECF No. 55-1 at 24. Moreover, because Resolute fails to state a claim for any of the underlying claims, it also fails to state a claim for conspiracy under federal law, state law, or common law, and the Court dismisses those claims as well (Counts 3, 5, and 9). See e.g., Applied Equipment Corp. v. Litton Saudi Arabia Ltd.,
Because this Court dismisses Resolute's RICO claims on the basis of their failure to meet the heightened pleading standards required under Rule 9(b) of the Federal Rules of Civil Procedure, and because Resolute failed to allege proximate cause, the Court need not reach the issue of first impression urged by the Amici: whether the actual malice standard should apply to RICO claims which sound in defamation. ECF No. 63; see also ECF No. 144 at 1-3 (Greenpeace Fund Defendants arguing that actual malice applies to all claims and thus implicitly to RICO claims); ECF No. 161 at 15 (same with respect to Defendants Stand and Paglia).
Perhaps for these reasons, Resolute does not appear to contend that Greenpeace's statements regard anything other than a matter of public interest, focusing instead on whether the Georgia anti-SLAPP statute applied retroactively, and whether the company adequately alleged actual malice. ECF No. 75, at 31-35; ECF No. 165 at 7-11.
Reference
- Full Case Name
- RESOLUTE FOREST PRODUCTS, INC. v. GREENPEACE INTERNATIONAL
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- 15 cases
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- Published