McCLENDON, J.
Plaintiff appeals a trial court judgment that granted defendant's special motion to strike under LSA-C.C.P. art. 971 and dismissed plaintiff's suit. For the following reasons, we amend the judgment to allow the plaintiff an opportunity to amend its petition, if it can, to state a cause of action for breach of contract. We affirm the judgment in all other respects.
In 2006, Toni Rizzo contracted with "The Maids Home Services," a maid service company owned and operated by BCCL Enterprises, Inc. ("BCCL"), to provide cleaning services for her personal residence. Ms. Rizzo alleges that in February 2007 she noticed a substantial quantity of jewelry missing from her home. She avers that she had kept jewelry, valued at over $40,000.00, in a false "Ajax" brand cleaning can under a bathroom sink in her home. Ms. Rizzo further contends that the fake Ajax can had been removed and replaced with a real can of Ajax. Ms. Rizzo suspected the cleaning service was responsible for the loss of her jewelry, and she was advised by the cleaning service to report the suspected theft to the police department. After the police were contacted and found insufficient evidence to warrant criminal prosecution, the case was closed.
In December 2007, Ms. Rizzo filed a civil suit, naming BCCL
In September 2009, BCCL
In November 2012, Ms. Rizzo filed a special motion to strike under LSA-C.C.P. art. 971, contending that the causes of action asserted by BCCL arose out of her conduct in her exercise of her right of petition and free speech under the United States and Louisiana constitutions. After a hearing, the trial court granted Ms. Rizzo's motion "as a Motion for Summary Judgment based on Louisiana Code of Civil Procedure Article 971," and dismissed all of BCCL's claims.
BCCL has appealed, asserting that the trial court erred in converting Ms. Rizzo's motion to strike to a motion for summary judgment, thereby confusing the issues and changing the burdens imposed on the parties. BCCL also contends that the motion to strike was untimely and the trial court, in dismissing its suit, erred in failing to follow the clear language of Article 971.
The special motion to strike is governed by LSA-C.C.P. art. 971. Article 971 was enacted by the legislature as a procedural device to be used in the early stages of litigation to screen out meritless claims brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for redress of grievances.
The granting of a special motion to strike presents a question of law.
BCCL asserts that Ms. Rizzo's motion to strike was untimely because it was not filed within ninety days of service of BCCL's petition. Article 971C(1) provides that the "motion may be filed within ninety days of the petition, or in the court's discretion, at any later time upon the terms the court deems proper."
BCCL asserts that the trial court also erred in converting the Article 971 motion to strike to a motion for summary judgment. At the outset, we note that this court reviews the trial court's grant of the motion to strike under Article 971 de novo, without any deference to the trial court's ruling. Nevertheless, prior to granting the motion, we note that the trial court, despite referencing a summary judgment motion, properly applied the appropriate standard and shifting burden under Article 971. Specifically, the trial court indicated that Ms. Rizzo was entitled to the qualified privilege for the allegations, apparently concluding that the statements made in both the civil and criminal context were made in connection with a public issue. The trial court then indicated that the burden shifted to BCCL to show that Ms. Rizzo abused the qualified privilege (i.e. that BCCL could demonstrate a probability of success on the claim), but that BCCL was unable to meet its burden. Thus, even though the trial court indicated that a motion for summary judgment may have been the proper procedural vehicle, it specifically indicated that it was granting the motion "based on" Article 971.
BCCL contends that Ms. Rizzo's conduct that forms the basis of its suit does not implicate Ms. Rizzo's alleged constitutional "free speech," nor does it implicate a "public issue" as required by Article 971. Louisiana courts, however, have recognized that the public has an interest in possible criminal activity being brought to the attention of the proper authorities, and have extended a qualified privilege to remarks made in good faith.
This court, citing
Although BCCL recognizes the holdings in
Because this matter is one of public concern, the burden shifts to BCCL to demonstrate a probability of success on the claim. Article 971A(1);
BCCL avers that Ms. Rizzo made knowingly false allegations in the criminal complaint and in the context of the civil suit. BCCL avers that on January 30, 2007, Ms. Rizzo first called BCCL's branch manager to allege that jewelry hidden underneath a bathroom sink in a single "Ajax" cleaning can had been taken. BCCL asserts that Ms. Rizzo advised that a member of the team was looking in the closed cabinet for cleaning products because the maid service had run out of "Ajax." BCCL asserts that it advised Ms. Rizzo of its security protocols during the course of the January 30, 2007 conversation.
BCCL avers that in subsequent conversations, Ms. Rizzo's "story drastically changed" insofar as she advised that there were two fake Ajax cans, rather than one, and that the cans were not actually under the sink but placed out in the open on the bathroom floor. BCCL also asserts that Ms. Rizzo, who initially indicated that no one else had access to her home, admitted that other individuals did access her home around the time the jewelry was allegedly stolen.
Moreover, BCCL notes that its employees, at Ms. Rizzo's request, took and passed polygraphs. BCCL notes that it attempted to set Ms. Rizzo's deposition, but defendant dismissed her suit prior to being deposed. Considering the foregoing, BCCL concludes that defendant "knowingly and intentionally promoted the totally false and fabricated facts" in making a criminal complaint and filing the civil suit.
While we are troubled by the discrepancies in Ms. Rizzo's accounts, we are unable to find that BCCL has established a probability of success on its claim. Reckless disregard is typically found where a story is fabricated by the defendant, is the product of his imagination, or is so inherently improbable that only a reckless man would have communicated it. Mere negligence as to falsity is not sufficient to prove abuse of the privilege, and the failure to investigate the matter fully before contacting police also does not present a jury question on whether a statement was communicated with reckless disregard.
In its appellate brief, BCCL contends that Ms. Rizzo admitted that her factual allegations to the police and in the civil suit were "knowingly false allegations." To support this contention, however, BCCL only refers to affidavits by its personnel, which mention the above inconsistencies. Moreover, BCCL contends that Ms. Rizzo acknowledged in the presence of the individuals attending BCCL personnel depositions that her allegations were not true. However, the only purported acknowledgement made by Ms. Rizzo at the depositions, which again is based solely on BCCL's owner's affidavit, was that there was only one can of Ajax as opposed to two. Even considering the entirety of the referenced affidavits,
BCCL also asserts that the trial court erred in dismissing its cause of action for breach of contract. On appeal, BCCL contends that the parties reached an agreement wherein Ms. Rizzo agreed to pay all costs of administering the polygraph tests. In its petition, however, BCCL only alleges that Ms. Rizzo "refused to pay for the polygraphs" and BCCL seeks recovery for "costs of the polygraph examinations." BCCL does not specifically allege that the parties reached an agreement whereby Ms. Rizzo would pay for the costs of the polygraph examinations. Accordingly, BCCL's petition fails to state a cause of action for breach of contract. However, because the failure to state a cause of action may be removed by amendment of the petition, the court shall allow plaintiff to amend its petition. LSA-C.C.P. art. 934. Although Ms. Rizzo contends that the purported breach of contract claim arises solely from protected free speech under Article 971, we conclude that any such claim is an independent claim from that asserted under Article 971.
For the foregoing reasons, we amend the July 9, 2013 trial court judgment and remand this matter to the trial court to allow BCCL to amend its petition, if it can, to state a cause of action for breach of contract within thirty days of this court's action. In all other respects, the trial court's July 9, 2013 judgment is affirmed. Costs of this appeal are to be split between the parties.
PETTIGREW, J., CONCURS IN PART AND DISSENTS IN PART, AND ASSIGNS REASONS.
I concur with the majority's handling of the breach of contract claim. I disagree with the majority's handling of the remainder of the issues. I would reverse the trial court's judgment in its entirety.