Davide M. Carbone v. Cable News Network, Inc.
Opinion
This interlocutory appeal requires us to decide whether the motion-to-strike procedure of the Georgia anti-SLAPP (Strategic Lawsuits Against Public Participation) statute, O.C.G.A. § 9-11-11.1, applies in federal court. Davide Carbone filed a complaint against Cable News Network for publishing a series of allegedly defamatory news reports about him and the medical center he administered. CNN moved to strike the complaint under the Georgia anti-SLAPP statute or, in the alternative, to dismiss the complaint for failure to state a claim for relief under Federal Rule of Civil Procedure 12(b)(6). The district court denied that motion. It ruled that the special-dismissal provision of the anti-SLAPP statute does not apply in federal court because it conflicts with Rule 12(b)(6) and that Carbone's complaint states a claim for relief. CNN challenges both rulings. We agree with the district court that the special-dismissal provision of the Georgia anti-SLAPP statute does not apply in federal court, but we lack pendent appellate jurisdiction to review whether Carbone's complaint states a claim for relief. We affirm in part and dismiss in part.
I. BACKGROUND
Carbone alleges that while he served as chief executive officer of St. Mary's Medical Center in West Palm Beach, Florida, CNN published "a series of false and defamatory news reports, articles, and social media posts" asserting that the mortality rate for pediatric open-heart surgery at St. Mary's was 12.5 percent-more than three *1348 times the national average of 3.3 percent. Carbone alleges that CNN intentionally misrepresented the national average mortality rate for open-heart pediatric surgeries by using a figure based on the total number of pediatric heart surgeries. As he puts it in his complaint, "[i]nstead of reporting the St. Mary's program's mortality rate based on all pediatric heart surgeries it performed (both open and closed heart surgeries) and comparing that number to the national average of the same computation," CNN reported "the St. Mary's program's mortality rate for the most inherently risky surgeries (open heart) and then compared it to the national rate for all surgeries (including the less risky closed heart surgeries)." The total "risk-adjusted mortality rate for St. Mary's Pediatric Cardiac program was 5.3%, and that figure had a 95% confidence interval that encompassed" the "national average 3.4% mortality rate," which meant that there was "no statistically significant difference between the St. Mary's program's mortality rate and the national average." Carbone alleges that, as a result of this reporting, St. Mary's discontinued its pediatric cardiology program and he was forced to resign as chief executive officer.
CNN moved to strike Carbone's complaint under the Georgia anti-SLAPP statute, O.C.G.A. § 9-11-11.1, or, in the alternative, to dismiss it under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. The anti-SLAPP statute applies to claims brought against "a person or entity arising from any act ... which could reasonably be construed as an act in furtherance of the person's or entity's right of petition or free speech under the Constitution of the United States or the Constitution of the State of Georgia in connection with an issue of public interest or concern." O.C.G.A. § 9-11-11.1(b)(1). If this condition is satisfied, the statute provides a special procedural mechanism for the defendant to move to strike the claim. That provision requires the claim to be struck "unless the court determines that the nonmoving party has established that there is a probability that the nonmoving party will prevail on the claim." Id.
Discovery is halted during the pendency of a motion to strike, id. § 9-11-11.1(d), with two exceptions. First, "if there exists a claim that the nonmoving party is a public figure plaintiff, then the nonmoving party shall be entitled to discovery on the sole issue of actual malice whenever actual malice is relevant to the court's determination." Id. § 9-11-11.1(b)(2). Second, "[t]he court, on noticed motion and for good cause shown, may order that specified discovery or other hearings or motions be conducted." Id. § 9-11-11.1(d). And "a prevailing moving party on a motion to strike shall be granted the recovery of attorney's fees and expenses of litigation related to the action in an amount to be determined by the court based on the facts and circumstances of the case." Id . § 9-11-11.1(b.1).
The district court denied CNN's motion. It ruled that the special dismissal procedure created by Georgia's anti-SLAPP statute does not apply in federal court and that Carbone's complaint states a claim for relief under Rule 12(b)(6). The district court determined that Rule 12(b)(6)"directly conflicts with Georgia's anti-SLAPP statute" because the latter creates "a Rule 12(b)(6) 'plus' standard for cases with a First Amendment nexus." The district court reasoned that this conflict arises because " Rule 12(b)(6) requires 'plausibility' on the face of the complaint" but " Section 9-11-11.1(b)(1) requires a probability of prevailing." The district court ruled that Carbone's complaint contained plausible factual allegations that, if true, would prove liability for defamation.
*1349 II. STANDARD OF REVIEW
We review
de novo
federal-versus-state choice-of-law questions,
Adventure Outdoors, Inc. v. Bloomberg
,
III. DISCUSSION
We divide our discussion in two parts. First, we consider whether the motion-to-strike procedure created by the Georgia anti-SLAPP statute applies in a federal court sitting in diversity jurisdiction. Second, we address whether we have pendent appellate jurisdiction to review the denial of the motion to dismiss under Rule 12(b)(6).
A. The Motion-to-Strike Provision of Georgia's Anti-SLAPP Statute Conflicts with Rules 8, 12, and 56.
CNN argues that we have already held that motion-to-strike provisions of state anti-SLAPP statutes apply in federal court in two decisions,
Royalty Network, Inc. v. Harris
,
The framework for resolving this question is familiar. A federal court exercising diversity jurisdiction will not apply a state statute if a Federal Rule of Civil Procedure "answers the question in dispute."
Shady Grove Orthopedic Assocs., P.A. v. Allstate Ins. Co.
,
*1350
Harris
,
Under that framework, we cannot apply the dismissal provision of the Georgia anti-SLAPP statute. The question in dispute is whether Carbone's complaint states a claim for relief supported by sufficient evidence to avoid pretrial dismissal. Taken together, Rules 8, 12, and 56 provide an answer.
Rules 8 and 12 define the criteria for assessing the sufficiency of a pleading before discovery. Rule 8(a)(2) provides that a complaint "that states a claim for relief must contain ... a short and plain statement of the claim showing that the pleader is entitled to relief." If a complaint's statement of a claim does not satisfy this requirement, it is subject to dismissal under Rule 12(b)(6) for "failure to state a claim upon which relief can be granted." A claim satisfies the requirement of Rule 8(a) -and avoids dismissal under Rule 12(b)(6) -if the complaint alleges facts sufficient to establish that the claim is "plausible on its face."
Bell Atl. Corp v. Twombly
,
Rule 56 governs whether a party's claim is supported by sufficient evidence to avoid pretrial dismissal. Under this Rule, a party is ordinarily entitled to test the proof for a claim only after the conclusion of discovery.
See
Fed. R. Civ. P. 56(d)(2) ;
Anderson v. Liberty Lobby, Inc.
,
The motion-to-strike provision of the Georgia anti-SLAPP statute "answer[s] the same question" as Rules 8, 12, and 56, but it does so in a way that conflicts with those Rules.
Shady Grove
,
The standard for pleading imposed by the anti-SLAPP statute differs from Rules 8 and 12 by requiring the plaintiff to establish "a
probability
" that he "will prevail on the claim" asserted in the complaint. O.C.G.A. § 9-11-11.1(b)(1) (emphasis added). In contrast, the plausibility standard under Rules 8(a) and 12(b)(6) plainly "does not impose a probability requirement at the pleading stage."
Twombly
,
The motion-to-strike procedure also conflicts with Rule 56. The Georgia statute "contemplates a substantive, evidentiary determination of the plaintiff's probability
*1351
of prevailing on his claims."
Rosser v. Clyatt
, --- Ga.App. ----, ----,
The Georgia statute requires the plaintiff to establish that he will likely prevail if the case proceeds to trial. That evidentiary burden is far more demanding than one requiring him only to identify material factual disputes that a jury could reasonably resolve in his favor, and it requires the court to consider whether the factual underpinnings of the plaintiff's claim are likely true. And although Rule 56 does not generally permit a defendant to test a plaintiff's claim for evidentiary sufficiency before discovery, the Georgia anti-SLAPP statute provides that "[a]ll discovery ... shall be stayed upon the filing" of a "motion to strike ... until a final decision on the motion," unless the plaintiff satisfies the good cause standard. O.C.G.A. § 9-11-11.1(d). The Georgia statute deprives the plaintiff of the "period for discovery[, unless the plaintiff shows good cause,] before defendant can test plaintiff's case for [evidentiary] sufficiency" conferred by the Federal Rules.
Makaeff v. Trump Univ.
(
Makaeff I
),
The Georgia anti-SLAPP statute also compromises the joint operation of Rules 8, 12, and 56. Taken together, these Rules provide a comprehensive framework governing pretrial dismissal and judgment. Under Rule 12(d), a motion to dismiss for failure to state a claim under Rule 12(b)(6) or a motion for judgment on the pleadings "must be treated as one for summary judgment under Rule 56" if "matters outside the pleadings are presented to and not excluded by the court...." In other words, the Rules contemplate that a claim will be assessed on the pleadings alone or under the summary judgment standard; there is no room for any other device for determining whether a valid claim supported by sufficient evidence to avoid pretrial dismissal.
In short, Rules 8, 12, and 56 express "with unmistakable clarity" that proof of probability of success on the merits "is not required in federal courts" to avoid pretrial dismissal, and that the evidentiary sufficiency of a claim should not be tested before discovery.
Hanna
,
CNN and its
amici
contend that Rules 12 and 56 establish only minimum requirements that claimants must satisfy at the pleading and pretrial stages that the Georgia anti-SLAPP statute may supplement without contradiction. They assert that neither Rule creates an affirmative entitlement to proceed to discovery or trial because they do not contain the kind of "rights-conferring language" that was critical to the Supreme Court's reasoning in
Shady Grove
. And they argue that the Supreme Court's decision in
Cohen v. Beneficial Indus. Loan Corp.
,
Even if the relevant Federal Rules did not create an affirmative entitlement to proceed to discovery or trial, it would not follow that there is no conflict between the Federal Rules and the anti-SLAPP statute. The existence of a conflict does not invariably depend on whether the state law abrogates a procedural right conferred by the Federal Rules, but instead turns on whether the Federal Rules and the state statute "answer the same question."
Shady Grove
,
CNN responds that the anti-SLAPP statute does not attempt to answer the question whether the plaintiff has alleged a claim that is plausible on its face, but instead answers whether the plaintiff's claim satisfies a probability requirement. But this argument conflates the question a rule or statute is designed to answer with the standard it requires the court to apply in answering that question. Rules 8, 12, and 56 answer the question of sufficiency by requiring the plaintiff to allege a claim that is plausible on its face and to present evidence sufficient to create a triable issue of fact. The Georgia anti-SLAPP statute answers the same question by requiring the plaintiff to allege and prove a probability of success on the merits. CNN's response relies on an artificially narrow construction of the Federal Rules as controlling only on whether their standards have been satisfied. But the Supreme Court has explicitly rejected the notion that "the Federal Rules of Civil Procedure are to be narrowly construed in order to avoid a 'direct collision' with state law."
Walker
,
Rules 8, 12, and 56 create an affirmative entitlement to avoid pretrial dismissal that would be nullified by the Georgia anti-SLAPP statute if it were applied in a federal court. Rule 8 provides that a complaint "that states a claim for relief must contain" three components: (1) "a short and plain statement of the grounds for the court's jurisdiction, unless the court already has jurisdiction and the claim needs no new jurisdictional support"; (2) "a short and plain statement of the claim showing that the pleader is entitled to relief"; and (3) "a demand for the relief sought." By negative implication, the enumeration of this series of requirements excludes other requirements that must be satisfied for a complaint to state a claim for relief.
See
Chevron U.S.A. Inc. v. Echazabal
,
To be sure, Congress has formulated additional requirements governing the sufficiency of a complaint as exceptions to the general rule. For example, Rule 9(b) requires fraud plaintiffs to "state with particularity the circumstances constituting fraud." And the Private Securities Litigation Reform Act requires certain securities-law plaintiffs to "state with particularity facts giving rise to a strong inference that the defendant acted with the required state of mind." 15 U.S.C. § 78u-4(b)(2).
CNN's
amici
contend that "[i]f Rules 12 and 56 affirmatively authorized any plaintiff who meets their requirements to proceed to trial, they would contradict these provisions," but this argument reflects a failure to grasp the teachings of
Shady Grove
. There, the Supreme Court explained that "[t]he fact that Congress has created specific exceptions to Rule 23 hardly proves that the Rule does not apply generally. In fact, it proves the opposite."
Shady Grove
,
The "minimum requirements" interpretation of Rule 56 fails for similar reasons. The Rule states that a court "shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). This Rule, in conjunction with other Rules governing pretrial dismissal, qualifies the background entitlement to a trial affirmed by Federal Rules 38 and 39.
See
Fed. R. Civ. P. 38(a) ("The right of trial by jury as declared by the Seventh Amendment to the Constitution-or as provided by a federal statute-is preserved to the parties inviolate."); Fed. R. Civ. P. 39(b) ("Issues on which a jury trial is not properly demanded are to be tried by the court."). It follows that if a plaintiff satisfies the requirements of Rule 56 and avoids summary judgment, he is entitled to a trial on the merits unless the court is required to grant the motion for summary judgment or dismiss the action on some other ground supported by the Federal Rules or some provision of federal law.
See
Abbas v. Foreign Policy Grp., LLC
,
The anti-SLAPP statute abrogates the entitlements conferred by these Rules. Under Rules 8 and 12(b)(6), a plaintiff is ordinarily entitled to maintain his suit and proceed to discovery if his complaint states a claim for relief that is plausible on its face. The anti-SLAPP statute abrogates that entitlement in cases that fall within its ambit by requiring the plaintiff to establish that success is not merely plausible but probable. And under Rule 56, a plaintiff has a right to proceed to trial if he proves the existence of a genuine dispute of material fact. The anti-SLAPP statute would nullify that entitlement by requiring the plaintiff to prove that it is likely, and not merely possible, that a reasonable jury would find in his favor and to do so while *1354 relying exclusively on evidence he was able to obtain without discovery.
These considerations also establish that
Cohen
does not control the outcome of this appeal. In
Cohen
, the Supreme Court held that there was no conflict between a New Jersey statute that required certain plaintiffs to post a bond as a security for costs as a prerequisite to bringing a shareholder derivative action and former Federal Rule 23 (now Rule 23.1).
CNN and its
amici
also contend that there is no conflict between Rules 12 and 56 and the motion-to-strike provision because each pursues a "separate purpose[ ]" and operates in a separate "sphere of coverage."
Walker
,
The problem with the argument about the purposes of the relevant Federal Rules and the anti-SLAPP statute is that the means by which the Georgia law pursues its special purpose is by
winnowing claims and defenses in the course of litigation
, just like Rules 12 and 56. That the aim of the statute is to protect First Amendment rights is irrelevant, because the anti-SLAPP statute advances that end by imposing a requirement on a plaintiff's entitlement to maintain a suit over and above the requirements contemplated by the Federal Rules that control the same question.
Cf.
Shady Grove
,
Nor does the existence of Georgia state-law analogues of Rules 12 and 56 prove that the federal counterparts of those Rules and the anti-SLAPP statute occupy separate spheres.
See
O.C.G.A. § 9-11-12(b)(6) ;
Burlington
is instructive. There, the Supreme Court held that an Alabama statute that imposed a mandatory affirmance penalty on unsuccessful appeals conflicted with Rule 38 of the Federal Rules of Appellate Procedure,
see
CNN also argues that the function of the motion-to-strike procedure is to "define the scope" of "state-created right[s],"
Shady Grove
,
CNN relies on several decisions of our sister circuits holding that similar motion-to-strike provisions of state anti-SLAPP statutes apply in federal court.
See
Godin v. Schencks
,
We are not persuaded by the reasoning of these decisions. In
Godin
, the First Circuit concluded that there was no conflict between the Federal Rules and Maine's anti-SLAPP statute because Rule 12(b)(6)"provide[s] a mechanism to test the sufficiency of the complaint," and Rule 56 enables "parties to secure judgment before trial on the basis that there are no disputed material issues of fact," while that statute considers whether the plaintiff can "meet the special rules Maine has created to protect ... petitioning activity against lawsuits."
We find then-Judge Kavanaugh's reasoning in his opinion for the District of Columbia Circuit in
Abbas
far more convincing. As he explained, "[f]or the category of cases that it covers," an anti-SLAPP statute with a probability requirement "establishes the circumstances under which a court must dismiss a plaintiff's claim before trial-namely, when the court concludes that the plaintiff does not have a likelihood of success on the merits."
Abbas
,
Because the dismissal provision of the Georgia anti-SLAPP statute conflicts with the Federal Rules, it "cannot apply in diversity suits" unless Rules 8, 12, and 56 are "ultra vires" because they fall beyond the scope of the power delegated in the Rules Enabling Act or congressional powers over the operation of the federal courts.
Shady Grove
,
We have little difficulty concluding that Rules 8, 12, and 56 comply with the Rules Enabling Act and the Constitution. Those Rules are valid under the Rules Enabling Act because they define the procedures for determining whether a claim is alleged in a sufficient manner in a complaint and whether there is a genuine dispute of material fact sufficient to warrant a trial. These Rules "affect[ ] only the process of enforcing litigants' rights and not the rights themselves,"
Burlington
,
B. We Lack Jurisdiction to Review the Denial of the Motion to Dismiss for Failure to State a Claim.
CNN also asks us to review the denial of its motion to dismiss under Rule 12(b)(6), but we lack jurisdiction to review this ruling in an interlocutory appeal. We have interlocutory jurisdiction to consider whether the special dismissal procedure created by Georgia's anti-SLAPP statute applies in federal court under the collateral-order doctrine.
Harris
,
Whether the anti-SLAPP statute's motion-to-strike applies in federal court is a pure question of law that we may resolve without touching on the legal or factual merits of Carbone's complaint. "Because we may resolve" this issue "without reaching the merits" of CNN's motion to dismiss, "the latter issue does not come under either of these categories and thus does not fall within our pendent appellate jurisdiction."
Summit Med. Assocs.
,
We reject the argument of CNN that the denials of its motion to strike and of its
*1358
motion to dismiss are inextricably intertwined with one another because they "implicate[ ] the same facts and the same law."
Smith v. LePage
,
In any event, resolving the issue whether an anti-SLAPP statute applies in federal court does not require us to engage with any of the factual allegations of Carbone's complaint, and the law governing each issue is plainly distinct. To resolve the appealable issue, we ask whether the Federal Rules "answer the same question" as the relevant provisions of the anti-SLAPP statute and whether the relevant Federal Rules are valid under the Rules Enabling Act and the Constitution.
Shady Grove
,
CNN cites two decisions in which we held that we had pendent jurisdiction over a motion to dismiss,
S & Davis Int'l, Inc. v. Republic of Yemen
,
There is no sense in which our review of the denial of CNN's motion to strike overlaps with the issues we would need to consider to review the denial of CNN's motion to dismiss under Rule 12(b)(6).
*1359
"[W]e cannot consider" the ruling on the motion to dismiss "without exceeding the scope of our interlocutory jurisdiction."
Black
,
IV. CONCLUSION
We AFFIRM the denial of the motion to strike and DISMISS the appeal of the denial of the motion to dismiss.
Reference
- Full Case Name
- Davide M. CARBONE, Plaintiff-Appellee, v. CABLE NEWS NETWORK, INC., Defendant-Appellant.
- Cited By
- 118 cases
- Status
- Published