This appeal arises out of a malicious prosecution action filed by plaintiff Cheong Yu Yee against defendants J. Kenneth Jensen, Esq.; Sally Tsui Wong-Avery, Esq.; Don Cheung; Lin Wah Music Center of San Diego (Lin Wah); Zhao Hong Hang; Wai Mui Lee; Kai Ai Ng; Tong Yum; Ng Man Kiong; Lan H. Hom; Fung Yuet Xiong; Run You Chen; Kuen Wan Ghu; Xiao Xiong Pan; Pun Wa; Veronica Kwok; and Yuk Wai Ho.
The malicious prosecution action arises from defendants' participation in an underlying action against Yee for claims of fraud and conversion in the matter of Lin Wah Music Center v. Yee (Super. Ct. San Diego County, 2009, No. 37-2008-00080938-CU-FR-CTL) (the Lin Wah action). After a trial in the Lin Wah action, a jury found in favor of Yee on both of plaintiffs' claims.
Almost two years after Yee prevailed in the Lin Wah action, he filed a malicious prosecution action against Lin Wah, multiple individual members of Lin Wah, and two attorneys who Yee alleged had represented the plaintiffs in the Lin Wah action — Jensen and Wong-Avery. In response to the malicious prosecution action, Lin Wah, the individual defendants, and attorney defendant Wong-Avery filed motions to strike under the anti-SLAPP (strategic lawsuit against public participation) law. Attorney defendant Jensen filed a demurrer to the complaint on the ground that the action was time-barred as to him, pursuant to the statute of limitations set forth in Code of Civil Procedure
We reject Yee's contentions on appeal and affirm the trial court's rulings.
Lin Wah is an organization whose members promote and participate in Chinese opera. Sometime in 2004, Lin Wah members met with Yee about the possibility of forming a nonprofit musical organization to stage and perform Chinese opera events. In 2005, Yee and Lin Wah formed the nonprofit organization "Asian Culture & Senior Center, Inc." (ACSC). A representative of Lin Wah withdrew funds from its bank account and deposited them into an account created for ACSC. Yee became president of ACSC, and Cheung, one of the members of Lin Wah, became the treasurer of ACSC.
In 2006, a dispute arose concerning the management of the ACSC bank account, to which Cheung had access. At some point, Yee removed Cheung as a signatory of the ACSC bank account. Members of Lin Wah were unhappy with Yee's decision and accused Yee of withholding the funds. The members of Lin Wah voted to disassociate from Yee and ACSC.
Not long after Lin Wah and Yee parted ways, members of Lin Wah approached Wong-Avery for assistance in recovering from Yee money that they believed rightfully belonged to Lin Wah. Wong-Avery learned that Yee had hired an attorney to represent his interests with respect to the monetary dispute. Wong-Avery referred Lin Wah members to Attorney Jensen to assist them in the matter. In November 2007, Jensen sent a letter to Yee on behalf of Lin Wah requesting that he return the disputed funds.
A trial was held in April 2009. Wong-Avery associated in as cocounsel with Jensen on the first day of trial. Over two days, Lin Wah presented its case. At the close of Lin Wah's case, Yee moved for a nonsuit. The trial court ruled, "Well, okay, at this point, the court is supposed to give plaintiff the benefit of the doubt on the evidence. And viewing the evidence in the light most favorable, I think there's enough there to let it go past this point."
On April 29, 2009, the jury returned a verdict in favor of Yee on both causes of action.
Yee filed a complaint for malicious prosecution, intentional infliction of emotional distress, and negligent infliction of emotional distress against all of the defendants on April 28, 2011.
Attorney defendant Jensen filed a demurrer to the complaint on July 6, 2011, arguing that the action against him was time-barred under the one-year statute of limitations set forth in section 340.6, as applied to malicious prosecution actions against attorneys pursuant to Vafi v. McCloskey (2011) 193 Cal.App.4th 874 [122 Cal.Rptr.3d 608] (Vafi).
On July 8, 2011, attorney defendant Wong-Avery filed a special motion to strike the entire complaint as to her, pursuant to section 425.16, the anti-SLAPP law. Wong-Avery argued that Yee failed to demonstrate a probability of prevailing on the merits of his claim for three reasons: (1) his malicious action against her was barred by the one-year statute of limitations under section 340.6; (2) he could not establish that she lacked probable cause or prosecuted the case with malice at the time she associated in to the Lin Wah action; and (3) his claims for intentional and negligent infliction of emotional distress were barred by the litigation privilege under Civil Code section 47, subdivision (b).
Later that month, the nonattorney defendants filed their own special motion to strike the complaint under section 425.16. In their motion, they relied on the second and third grounds that Wong-Avery presented in her special motion to strike.
Yee filed a timely notice of appeal from the trial court's order.
We review de novo an order sustaining a demurrer to determine whether the complaint alleges facts sufficient to state a cause of action. (CPF Agency Corp. v. Sevel's 24 Hour Towing Service (2005) 132 Cal.App.4th 1034, 1042 [34 Cal.Rptr.3d 120].) We exercise our independent judgment as to whether the complaint states a cause of action. (Palestini v. General Dynamics Corp. (2002) 99 Cal.App.4th 80, 86 [120 Cal.Rptr.2d 741].) "`A judgment of dismissal after a demurrer has been sustained without leave to amend will be affirmed if proper on any grounds stated in the demurrer, whether or not the court acted on that ground.' [Citation.]" (Gomes v. Countrywide Home Loans, Inc. (2011) 192 Cal.App.4th 1149, 1153 [121 Cal.Rptr.3d 819].)
The issue in dispute is whether the one-year statute of limitations set forth in section 340.6, subdivision (a)
Yee's complaint alleges that Jensen acted wrongfully in "pursu[ing] a meritless lawsuit against [Yee] for fraud and conversion" and in "fil[ing] and continu[ing] litigation of the Underlying Action on behalf of [the nonattorney defendants] despite the fact no reasonable attorney would have done so." Thus, the gravamen of Yee's complaint against Jensen is the allegation that Jensen engaged in wrongful acts in his performance of professional legal services in his representation of the nonattorney defendants. This claim clearly falls within the plain language of the statute. (See Vafi, supra, 193 Cal.App.4th at p. 880.) Yee's claim against Jensen also falls within the plain language of the alternative statute of limitations set forth in section 335.1 that has been held generally applicable to malicious prosecution actions (see Stavropoulos, supra, 141 Cal.App.4th at p. 197).
As noted, where more than one statute might apply to a particular claim, "`a specific limitations provision prevails over a more general provision.' [Citation.]" (E-Fab, Inc. v. Accountants, Inc. Services (2007) 153 Cal.App.4th 1308, 1316-1317 [64 Cal.Rptr.3d 9].) Given that section 340.6 is a more specific statute of limitations, applicable only to actions against attorneys for their wrongful acts or omissions, its provisions prevail over the more general "catchall" statute of limitations for claims against any defendant based on his or her alleged "wrongful act or neglect" of another.
Yee's contention that the phrase "a wrongful act or omission" in section 340.6 refers only to "malpractice" is undermined by the fact that the term "malpractice" does not appear anywhere in the statute. If the Legislature had wanted to limit section 340.6 to malpractice actions between clients and attorneys, it could have done so by making it clear that the actions to which it applies are limited to those brought by a client or former client against his or her attorney for malpractice. The Legislature did not do this, and instead, enacted a broadly worded statute that limits the time within which any plaintiff may bring an action against an attorney for the attorney's conduct "arising in the performance of professional services." (Ibid.)
Unless giving the words of a statute their plain and commonsense meaning would produce "`"absurd consequences,"'" we adhere to the plain meaning. (Vafi, supra, 193 Cal.App.4th at p. 880.) Although in enacting section 340.6, the Legislature may have intended the statute to apply to malpractice actions against an attorney by a client, the language of the statutory provision is not limited to that situation, and we cannot say that interpreting the one-year limitation set forth in section 340.6 to apply to a malicious prosecution action initiated by a third party against an attorney would produce absurd consequences. First, we note that "malicious prosecution has traditionally been regarded as a disfavored cause of action because `the tort has the potential to impose an undue "chilling effect" on the ordinary citizen's willingness to report criminal conduct or to bring a civil dispute to court.' [Citation.] As a result, `the elements of the tort have historically been carefully circumscribed so that litigants with potentially valid claims will not be deterred from bringing their claims to court by the prospect of a subsequent malicious prosecution claim.' [Citation.]" (Stavropoulos, supra, 141 Cal.App.4th at p. 197.) Arguably, this disfavor for malicious prosecution actions could apply even more so to malicious prosecution claims against an attorney, who, by the nature of his or her profession, is more likely to be involved in litigation than the average plaintiff, and thus, may be more likely to be subjected to malicious prosecution claims.
Although we recognize that the effect of applying the one-year statute of limitations in section 340.6 to a malicious prosecution action brought against an attorney is that the limitations period applicable to an attorney defendant in a malicious prosecution action will be different from the limitations period applicable to nonattorney defendants in the same action, we cannot conclude that such a result is absurd. As we have explained, the Legislature may have valid policy reasons for providing a more circumscribed limitations period to attorney defendants than to other defendants of malicious prosecution actions.
Yee's complaint suffers the same defect with respect to attorney defendant Wong-Avery as it does with respect to attorney defendant Jensen — i.e., it is untimely under section 340.6, subdivision (a) since it was brought more than a year after Yee discovered his cause of action for malicious prosecution. As a result, Yee cannot prevail on his malicious prosecution claim against Wong-Avery. We therefore affirm the trial court's granting of attorney defendant Wong-Avery's anti-SLAPP motion.
"Whether section 425.16 applies, and whether the plaintiff has shown a probability of prevailing, are both questions we review independently on appeal." (Kashian v. Harriman (2002) 98 Cal.App.4th 892, 906 [120 Cal.Rptr.2d 576]; see HMS Capital, Inc. v. Lawyers Title Co. (2004) 118 Cal.App.4th 204, 212 [12 Cal.Rptr.3d 786] (HMS Capital) [orders granting anti-SLAPP motions are reviewed de novo].)
Section 425.16 provides in pertinent part: "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, unless the court determines that the plaintiff has established that there is a probability that the plaintiff will prevail on the claim." (§ 425.16, subd. (b)(1).)
For purposes of an anti-SLAPP motion, "[t]he court considers the pleadings and evidence submitted by both sides, but does not weigh credibility or compare the weight of the evidence. Rather, the court's responsibility is to accept as true the evidence favorable to the plaintiff ...." (HMS Capital, supra, 118 Cal.App.4th. at p. 212.) A plaintiff "need only establish that his or her claim has `minimal merit' [citation] to avoid being stricken as a SLAPP. [Citation.]" (Soukup v. Law Offices of Herbert Hafif (2006) 39 Cal.4th 260, 291 [46 Cal.Rptr.3d 638, 139 P.3d 30].)
Yee does not challenge the trial court's conclusion that his malicious prosecution claim falls within the purview of the anti-SLAPP statute. (See Jarrow Formulas, Inc. v. LaMarche (2003) 31 Cal.4th 728, 735 [3 Cal.Rptr.3d 636, 74 P.3d 737] (Jarrow) [a malicious prosecution action alleges that the defendant committed a tort by filing a lawsuit, and therefore, courts routinely conclude that malicious prosecution causes of action fall within the purview of the anti-SLAPP statute].) Accordingly, we address whether Yee presented evidence sufficient to "[establish] that there is a probability that [he] will prevail on the claim." (§ 425.16, subd. (b)(1).)
Trial in the Lin Wah action resulted in a legal termination favorable to Yee. We therefore consider whether Yee has shown that the nonattorney defendants filed and prosecuted the complaint against him without probable cause.
We conclude that Yee has failed to show a probability of prevailing on the lack of probable cause element of his malicious prosecution claim.
The trial court in the Lin Wah action denied Yee's motion for nonsuit at the close of the plaintiffs' case, expressly concluding that the plaintiffs had presented sufficient evidence to allow their claims to go to the jury.
In an attempt to overcome the fact that the trial court concluded that there was sufficient evidence to allow the jury to resolve the Lin Wah action, Yee contends that the fraud exception to the "interim judgment rule" applies, such that the trial court's ruling on the nonsuit motion in the Lin Wah action was procured as a result of "perjured testimony and false evidence." However, Yee has failed to establish that the court's ruling on his nonsuit motion in the underlying action was obtained by fraud, perjury, or any other unfair conduct. Yee points to testimony by Cheung in the Lin Wah action, both at his
A review of Cheung's testimony at trial in the Lin Wah action, which included questions pertaining to his deposition testimony, demonstrates that Cheung, who utilized an interpreter during his testimony, was confused with respect to questions about whether he had spoken with members of the media. Specifically, Cheung readily admitted that he "sponsored" a press conference sometime in November 2006 concerning the dispute between Lin Wah and Yee, and that he spoke with the reporters who were present at that press conference. He was then asked whether he remembered his prior deposition testimony, in which he had said that he had "never spoken to any member of the media regarding this matter." Cheung's response to this question is telling, in that he said that he had invited "the press, the reporters" but that he "was not speaking to anyone privately." At trial, when pressed again with respect to his deposition response to a question about whether he had ever "`given an interview to any member of the media concerning Mr. Yee,'" which was that he had not "spoken to anyone," Cheung agreed with his deposition testimony, and reaffirmed that he "personally did not speak to any person of the media because [he] did not know any of them." When asked about what seemed to be conflicting testimony about holding a press conference, and why he had not stated during his deposition that he had held the press conference, Cheung said, "Nobody asked me that question at the deposition."
It is clear from this portion of the transcript that rather than constituting evidence of fraudulent testimony, Cheung misunderstood the questions concerning his having "spoken" to members of the press as referring to instances in which he had spoken privately with members of the press, separate from the press conference that he readily admitted he had "sponsored." We therefore reject Yee's contention that "[b]ut for this sort of testimony, the lower court would have granted Mr. Yee's non-suit motion."
Because the record demonstrates that the defendants in the malicious prosecution case had probable cause to bring the underlying action, Yee cannot establish a probability that he will prevail on his malicious prosecution claim.
We deem the order sustaining Jensen's demurrer to the complaint without leave to amend to have incorporated a judgment of dismissal as to Jensen, and we affirm that judgment. We also affirm the trial court's order granting the remaining defendants' special motions to strike. Costs are awarded to respondents.
Benke, Acting P. J., and O'Rourke, J., concurred.
However, "when the trial court has sustained a demurrer to all of the complaint's causes of action, appellate courts may deem the order to incorporate a judgment of dismissal, since all that is left to make the order appealable is the formality of the entry of a dismissal order or judgment. [Citations.]" (Sisemore v. Master Financial, Inc., supra, 151 Cal.App.4th at p. 1396.) Here, the order sustaining the demurrer to the complaint without leave to amend as to attorney defendant Jensen effectively ended Yee's ability to proceed further with his case against Jensen, and the only step left to make the order appealable is the formal entry of a dismissal order or judgment. We therefore deem the order on Jensen's demurrer to incorporate a judgment of dismissal and will review the order in this appeal in the interest of judicial economy and the interest of justice. (See ibid.)