Barry v. State Bar of Cal.
Barry v. State Bar of Cal.
Opinion
*320 Under California's anti-SLAPP statute, a defendant may bring a special motion to strike a cause of action arising from constitutionally protected speech or petitioning activity. (Code Civ. Proc., § 425.16, subd. (b)(1).) Unless the plaintiff establishes a probability of prevailing on the claim, the court must grant the motion and ordinarily must also award the defendant its attorney's fees and costs. ( Id. , subds. (b)(1) & (c)(1).) In this case, the trial court ruled that plaintiff had failed to show a probability of prevailing because, among other reasons, the court lacked subject matter jurisdiction over plaintiff's claims. The question presented is whether a court that lacks subject matter jurisdiction over a claim may grant a special motion to strike the claim under section 425.16, and thus may award attorney's fees *321 and costs to the defendant. We conclude that the answer to that question is yes, and accordingly reverse the contrary judgment of the Court of Appeal.
I.
The Legislature enacted the anti-SLAPP statute in 1992 in response to concerns about "a disturbing increase in lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for the redress of grievances." (Code Civ. Proc., § 425.16, subd. (a).) The statute is designed to deter such lawsuits-termed "strategic lawsuits against public participation" or "SLAPP suits"-in order to "encourage continued participation in matters of public significance" and to ensure "that this participation should not be chilled through abuse
*127
of the judicial process." (
Ibid.
) The statute instructs that its provisions are to be "construed broadly" in service of these goals. (
Ibid.
)
**790
The anti-SLAPP statute's core provision authorizes defendants to file a special motion to strike "[a] cause of action against a person arising from" the petition or speech activities "of that person ... in connection with a public issue." (Code Civ. Proc., § 425.16, subd. (b)(1).) Such motions shall be granted "unless the court determines that the plaintiff has established that there is a probability that the plaintiff will prevail on the claim." (
Ibid.
) The analysis of an anti-SLAPP motion proceeds in two steps: " 'First, the court decides whether the defendant has made a threshold showing that the challenged cause of action is one "arising from" protected activity. [Citation.] If the court finds such a showing has been made, it then must consider whether the plaintiff has demonstrated a probability of prevailing on the claim.' " (
Oasis West Realty, LLC v. Goldman
(2011)
Because SLAPPs "seek to deplete 'the defendant's energy' and drain 'his or her resources,' " the anti-SLAPP statute contains several provisions designed to "limit the costs of defending against such a lawsuit" and to " ' "prevent SLAPPs by ending them early and without great cost to the
*322
SLAPP target." ' " (
Varian Medical Systems, Inc. v. Delfino
(2005)
This case arises from State Bar disciplinary proceedings involving Attorney Patricia J. Barry. After the State Bar's Office of Chief Trial Counsel filed disciplinary charges against her, Barry stipulated to having committed violations of the rules of professional conduct. She further agreed to recommended discipline including a 60-day actual suspension from the practice of law. The State Bar Court entered an order approving the recommended discipline.
Despite having agreed to the State Bar Court's recommendation, Barry thereafter filed a petition for writ of review in this court, asking the court to set aside the stipulation and dismiss the disciplinary charges. Barry asserted, among other things, that the stipulation was false and that she had entered into it due to financial hardship. This court denied Barry's petition for writ of review and imposed the recommended discipline.
After this court denied Barry's petition, Barry filed an action in superior court *128 against the State Bar. Alleging that the State Bar's actions were retaliatory and discriminatory, Barry asserted causes of action under a variety of state laws, as well as the due process clause of the Fourteenth Amendment to the United States Constitution. She sought an order vacating the stipulation and dismissing the underlying disciplinary charges, or, in the alternative, granting her a jury trial on the underlying disciplinary charges. Barry also sought various reforms of the State Bar.
The State Bar both demurred to the complaint and filed a special motion to strike the complaint under the anti-SLAPP statute (Code Civ. Proc., § 425.16, subd. (b) ). The trial court granted the State Bar's anti-SLAPP motion. At the first step of the analysis, the trial court concluded that all of Barry's claims concerned the State Bar's actions in pursuing charges against Barry and recommending
**791
to this court that she be disciplined, and thus arose from protected petitioning activity. (See
Kibler v. Northern Inyo County Local Hospital Dist.
(2006)
On appeal, Barry did not challenge the trial court's conclusions that the court lacked subject matter jurisdiction over her claims or that the claims arose from protected activity. Rather, she argued that because the trial court lacked subject matter jurisdiction over her claims, it also lacked jurisdiction to adjudicate the State Bar's anti-SLAPP motion or to award attorney's fees. Agreeing with Barry, the Court of Appeal reversed the judgment of the trial court. The Court of Appeal reasoned: " '[I]n the absence of subject matter jurisdiction, a trial court has no power "to hear or determine [the] case." [Citation.]' [Citation.] The trial court's lack of subject matter jurisdiction in this case precluded it from ruling on the State Bar's anti-SLAPP motion, an adjudication that necessarily involved a determination of the merits of plaintiff's claims. 'Section 425.16 ... establishes a procedure where the trial court evaluates the merits of the lawsuit using a summary-judgment-like procedure at an early stage of the litigation.... [¶]
*129
[G]ranting a motion to strike under section 425.16 results in the dismissal of a cause of action on the merits....' (
Varian Medical
, [
supra
, 35 Cal.4th] at pp. 192-193 [
We granted the State Bar's petition for review.
*324 II.
A.
" 'The principle of "subject matter jurisdiction" relates to the inherent authority of the court involved to deal with the case or matter before it.' [Citation.] Thus, in the absence of subject matter jurisdiction, a trial court has no power 'to hear or determine [the] case.' " (
Varian Medical
,
supra
, 35 Cal.4th at p. 196,
Plaintiff contends that a ruling on an anti-SLAPP motion "goes to the very substance and merits of the lawsuit" in that it "requires the plaintiff to marshal[ ] her evidence and
prove
she has a likelihood of prevailing on the merits." But failure of proof, or lack of substantive merit more generally, is not the only ground for striking a cause of action under Code of Civil Procedure section 425.16. (See., e.g.,
Traditional Cat Assn., Inc. v. Gilbreath
(2004)
*325
Thus, while a ruling on an anti-SLAPP motion
may
involve a determination of the merits of the plaintiff's claim, it may in other cases involve a determination that the plaintiff's claim fails for another, non-merits-based reason, such as lack of subject matter jurisdiction. This conclusion accords with the basic purpose underlying
*130
the anti-SLAPP statute: namely, to shield defendants from the undue burden of defending against claims filed not for the purpose of securing judicial redress, but to intimidate or harass on the basis of the defendant's constitutionally protected activity. A claim may fall into this category if it lacks substantive merit, but it may also fall into this category if it is filed in a tribunal that lacks the power to hear it. (Cf.
Traditional Cat Assn., Inc. v. Gilbreath
,
supra
, 118 Cal.App.4th at p. 399,
In reaching its contrary conclusion, the Court of Appeal relied on excerpts from our
Varian Medical
opinion in which we described a decision to grant an anti-SLAPP motion as resulting "in the dismissal of a cause of action
on the merits
." (
Varian Medical
,
supra
, 35 Cal.4th at p. 193,
B.
Plaintiff raises several alternative arguments in support of the Court of Appeal's judgment. None has merit. First, plaintiff argues that if the trial court lacked jurisdiction to adjudicate her claims on the merits, then it must also have lacked jurisdiction to grant the State Bar's anti-SLAPP motion or to award attorney's fees and costs. In plaintiff's view, "[e]ither the Court has subject matter jurisdiction or it does not." But a court that lacks the power to answer one type of question in a
*131
case may nonetheless have the power to answer another type of question. It is, for example, a truism that "[a] court has jurisdiction to determine its own jurisdiction, for a basic issue in any case before a tribunal is its power to act, and it must have authority to decide that question in the first instance." (
Rescue Army v. Municipal Court
(1946)
Nor is lack of subject matter jurisdiction a bar to awarding attorney's fees and costs. Our courts have held, for example, that a trial court that dismisses a case for lack of subject matter jurisdiction has the power to award costs to the defendant under Code of Civil Procedure section 1032. (
Brown v. Desert Christian Center
(2011)
Plaintiff relies on a series of Ninth Circuit decisions that have held that a court that lacks subject matter jurisdiction over a federal civil rights claim under 42 U.S.C. section 1983 also lacks the power to award attorney's fees under the relevant federal fee-shifting statute, 42 U.S.C. section 1988. (See
Branson v. Nott
(9th Cir. 1995)
Relying on the same set of Ninth Circuit cases, plaintiff next argues that even if a court might otherwise have the power to award fees and costs in the absence of subject matter jurisdiction, a defendant cannot "prevail" within the meaning of Code of Civil Procedure section 425.16, subdivision (c) unless the defendant obtains a favorable judgment on the merits. Plaintiff points to
Branson
, for example, in which the court held that where "dismissal is mandated by a lack of subject matter jurisdiction, a defendant is not a 'prevailing' party within the meaning of § 1988." (
Branson
,
supra
, 62 F.3d at p. 293.) Whatever the merits of
Branson
's holding on this point (cf., e.g.,
Citizens for a Better Environment
,
supra
, 230 F.3d at pp. 929-930 ), it is of little relevance here. Unlike 42 U.S.C. section 1988, the anti-SLAPP statute does not refer to parties that have "prevail[ed]" in a lawsuit; it refers specifically to defendants that have prevailed "
on [the] special motion to strike
." (Code Civ. Proc., § 425.16, subd. (c)(1), italics added.) A defendant that successfully moves to strike a plaintiff's cause of action, whether on merits or non-merits grounds, has "prevailed" on the motion, and therefore is entitled to attorney's fees and costs under Code of Civil Procedure section 425.16, subdivision (c). This understanding of the scope of the anti-SLAPP's
*328
fee-shifting provision is consistent with its apparent purpose: namely, compensating the prevailing defendant for the undue burden of defending against litigation designed to chill the exercise of free speech and petition rights. (See
Ketchum v. Moses
(2001)
Finally, plaintiff argues that the correct vehicle for raising a jurisdictional challenge is a demurrer, rather than a special motion to strike. But as we have recognized, a demurrer is not the only mechanism for raising a challenge to a court's subject matter jurisdiction. (See
Greener v. Workers' Comp. Appeals Bd.
(1993)
And contrary to plaintiff's argument, there is no rigid rule that requires a court to consider a jurisdictional challenge raised in a demurrer before, or in lieu of, considering such a challenge in the context of a special motion to strike under Code of Civil Procedure section 425.16. (Cf.
Lin v. City of Pleasanton
(2009)
Indeed, to adopt such a rule defeat the anti-SLAPP statute's central purpose of preventing " ' "SLAPPs by ending them early and without great cost to the SLAPP target." ' " (
Varian Medical
,
supra
, 35 Cal.4th at p. 192,
*133
(
Sylmar Air Conditioning v. Pueblo Contracting Services, Inc.
(2004)
A court that lacks subject matter jurisdiction over a plaintiff's claims has the power to resolve an anti-SLAPP motion on jurisdictional grounds. Because the court has the power to resolve the anti-SLAPP motion, it also has the power to award attorney's fees to the defendant that prevails on such a motion. We therefore reverse the judgment of the Court of Appeal.
We Concur:
Cantil-Sakauye, C.J.
Werdegar, J.
Chin, J.
Corrigan, J.
Liu, J.
Cuéllar, J.
The trial court also concluded, among other things, that all of Barry's state claims were barred by the litigation privilege under Civil Code section 47, subdivision (b), and that Barry had failed to state a claim for violation of the federal due process clause.
In addition to challenging the recommended discipline in her case, Barry's complaint also alleged institutionalized gender bias, cronyism, and corruption at the State Bar, invoking statutory provisions including Civil Code sections 51.9 (sexual harassment in a business or professional relationship) and 52.1 (private right of action to enforce state or federal Constitution or laws), and seeking injunctive relief in the form of institutional reforms. Because neither party has contested the trial court's characterization of Barry's complaint, we assume without deciding that the trial court correctly held that all of Barry's claims concerned the State Bar's actions in pursuing discipline against her, and thus both arose from protected petitioning activity within the meaning of section 425.16 and fell outside the subject matter jurisdiction of the superior court.
Reference
- Full Case Name
- Patricia J. BARRY, Plaintiff and Appellant, v. the STATE BAR OF CALIFORNIA, Defendant and Respondent.
- Cited By
- 113 cases
- Status
- Published