Judge: Edward B. Moreton, Jr., Case: 24SMCV00027, Date: 2024-06-04 Tentative Ruling
Case Number: 24SMCV00027 Hearing Date: June 4, 2024 Dept: 205
Superior Court of California
County of Los Angeles – West District
Beverly Hills Courthouse / Department 205
 JULIE ANN ALLARIE, 
 Plaintiff, v. 
 LITIGATI, INC., et al., 
 Defendants.  | 
 Case No.: 24SMCV00027 
 Hearing Date: June 4, 2024 [TENTATIVE] ORDER RE: DEFENDANTS’ SPECIAL MOTION TO STRIKE FIRST AMENDED COMPLAINT (CODE OF CIVIL PROCEDURE 425.16) 
 
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BACKGROUND
Plaintiff Julie Ann Allarie has sued various defendants for their alleged conduct in connection with a lawsuit filed by Defendant Aaron Kadosh against Allarie (the “Underlying Action”). Allarie and her husband (now deceased) entered into a lease agreement with Kadosh for real property located at 143 Union Jack Mall, Marina del Rey (the “Property”). Kadosh alleged Allarie owed back rent.
On September 3, 2020, Kadosh filed a complaint against Allarie for amounts due and owing under the lease agreement. Allarie alleges Kadosh’s suit was motivated by his desire to take advantage of a despondent widow who he believed was going to collect a sizeable life insurance payout. (First Amended Complaint (“FAC”) ¶20.)
Defendants Richard Uss and Michael Nussbaum represented Kadosh in the Underlying Action. Defendant Alexandra Melgoza was the process server involved in the service of the summons and complaint on Allarie, and he is employed by Defendant Litigati Inc.
Allarie did not respond to Kadosh’s complaint, and Allarie’s default was entered in the Underlying Action in the amount of $92,000. (Id. ¶¶22, 29.) Allarie alleges she did not receive notice of the Underlying Action. (Id. ¶21.) Allarie claims the proof of service showing she was served by “substitute service” was fraudulent as it showed service was effected at 333 Washington Blvd 386, Marina Del Rey, California 90292 when this is not Plaintiff’s personal address. It is the address of a Postal Annex Store in which her P.O. Box 386 is located. (Id. ¶22.) Allarie further alleges that Melgoza’s declaration of reasonable diligence is also fraudulent because it claims attempts were made to effect service by personal delivery at 333 Washington Blvd 386 Marina Del Rey, California 90292, which could not be true because this is not Plaintiff’s personal address. (Id. ¶23.) Allarie claims Nussbaum filed the request for entry of default based on a proof of service he knew or should have known was false. (Id. ¶ 27.)
Allarie claims she did not become aware of the Underlying Action until December 2020, when she received a notice for a case management conference. (Id. ¶ 28.) And she did not know of the entry of default until she called the courthouse on March 1, 2021, and the clerk explained that a default judgment had already been entered. (Id. ¶ 29.) Allarie claims the default was entered as a result of fraud, for an amount that was more than double what she actually owed in back rent to Kadosh. (Id.) Allarie alleges she was entitled to withhold rent because of the uninhabitable conditions of the Property which she believes partially caused her husband to take his own life. (Id. ¶ 15.)
The operative complaint alleges four causes of action for (1) fraudulent misrepresentation, (2) abuse of process, (3) intentional infliction of emotional distress, and (4) civil conspiracy.
This hearing is on Defendants’ special motion to strike pursuant to Code Civ. Proc. §425.16(e). Defendants argues that Allarie’s claims arise from protected activity, because the proof of service and request for entry of default are statements made before or in connection with a judicial proceeding. Defendants further argue there is no probability that Allarie’s claims will prevail because they are barred by the absolute litigation privilege. Defendants seek attorneys’ fees and costs in the amount of $15,914.50.
REQUEST FOR JUDICIAL NOTICE
Defendants request judicial notice of the following:
the Complaint for Damages filed on September 3, 2020 in Los Angeles County Superior Court Case Number 20SMCV01208, styled as: Kadosh v. Allarie, et al.
the Proof of Service of Summons dated September 14, 2024, filed on November 2, 2020 in Los Angeles County Superior Court Case Number 20SMCV01208, styled as: Kadosh v. Allarie, et al.
the Request for Entry of Default of Julie Allarie-Larson, filed on November 2, 2020 in Los Angeles County Superior Court Case Number 20SMCV01208, styled as: Kadosh v. Allarie, et al.
the Rejected Request for Entry of Default of Julie Allarie-Larson, dated October 30, 2020 in Los Angeles County Superior Court Case Number 20SMCV01208, styled as: Kadosh v. Allarie, et al.
the Court Judgment entered on February 17, 2021 in Los Angeles County Superior Court Case Number 20SMCV01208, styled as: Kadosh v. Allarie, et al. and
an Amended Declaration in Support of Motion for Relief From Default Judgment, filed by Julie Allarie in Los Angeles County Superior Court Case Number 20SMCV01208, styled as: Kadosh v. Allarie, et al.
The Court grants the request as to (1)-(5) pursuant to Cal. Evid. Code §§ 452(d) and 453. As to (6), the Court¿takes judicial notice of the existence of Allarie’s declaration in the Underlying Action, but cannot take the facts stated within them as true. (North Beverly Park Homeowners Ass’n v. Bisno (2007) 147 Cal.App.4th 762, 778-779¿(judge may take judicial notice that declarations were filed in other cases, but not the truth of their hearsay contents).)
REQUEST FOR DISMISSAL
Allarie filed a request for dismissal with prejudice of her complaint on May 7, 2024, after Defendants filed their anti-SLAPP motion. Allarie’s dismissal does not moot the request for attorneys’ fees in connection with Defendants’ special motion to strike.¿ “[A] defendant who has been sued in violation of [the anti-SLAPP statute] is entitled to an award of attorneys fees … even if the matter has been dismissed prior to the hearing on that motion.”¿ (Pfeiffer Venice Properties v. Bernard (2002) 101 Cal.App.4th 211, 218.) Where there has been a voluntary dismissal, the trial court must first rule on the merits of the special motion to strike, and award attorney fees “when a defendant demonstrates that plaintiff's action falls within the provisions of subdivision (b) and the plaintiff is unable to establish a reasonable probability of success.” (Liu v. Moore, 69 Cal.App.4th 745, 752.)¿¿¿
LEGAL STANDARD
“Litigation of an anti-SLAPP motion involves a two-step process. First, the moving defendant bears the burden of establishing that the challenged allegations or claims arise from protected activity in which the defendant has engaged. Second, for each claim that does arise from protected activity, the plaintiff must show the claim has “at least ‘minimal merit.’ If the plaintiff cannot make this showing, the court will strike the claim.” (Bonni v. St. Joseph Health System (2021) 11 Cal.5th 995, 1009.)
DISCUSSION
First Prong
On the first prong, “courts are to consider the elements of the challenged claim and what actions by the defendant supply those elements and consequently form the basis for liability. The defendant’s burden is to identify what acts each challenged claim rests on and to show how those acts are protected under a statutorily defined category of protected activity.” (Bonni, 11 Cal.5th at 1009.) “A defendant need only make a prima facie showing at this stage.” (Ojjeh v. Brown (2019) 43 Cal.App.5th 1027, 1035–1036.)
To make a showing under the first prong, the moving defendant must demonstrate that the alleged conduct underlying each cause of action fits one of the categories spelled out in § 425.16 subdivision (e). (Nevallier v. Sletten (2002) 29 Cal.4th 82, 88.) Defendants contend the alleged wrongdoing falls within two categories: Subd. (e)(1) protects “any written or oral statement or writing made before a legislative, executive or judicial proceeding, or any other official proceeding authorized by law.” Subd. (e)(2) protects “any written or oral statement or writing made in connection with an issue under consideration or review by a legislative, executive or judicial body or any other official proceeding authorized by law.”
All four of Plaintiff’s claims arise from the allegedly fraudulent proof of service, declaration of due diligence and request for entry of default. (FAC ¶¶ 31, 41, 58, 61.) Additionally, Plaintiff claims Defendants ignored her attempts to initiate settlement discussions. (Id. ¶¶ 43-44.) It cannot be seriously disputed that these allegedly fraudulent filings and aborted settlement discussions are statements made before or in connection with a judicial proceeding and therefore constitute protected activity. Service of process, obtaining court orders, and filing declarations are part and parcel of the constitutional right to petition courts for redress. (Cf.¿Navellier v. Sletten¿(2003) 106 Cal.App.4th 763, 770¿(“Pleadings and process in a case are generally viewed as privileged communications.”))
Accordingly, because Allarie’s claims arise from the Underlying Action, a protected activity, the Court concludes Defendants have met the first prong, and the burden shifts to Allarie.
Second Prong
Once a defendant demonstrates that protected conduct is at issue, the plaintiff must show that the complaint is both legally sufficient and supported by a sufficient prima facie showing of facts to sustain a favorable judgment if the evidence submitted by the plaintiff is credited. (See Navellier v. Sletten (2002) 29 Cal.4th 82, 88-89.) “Precisely because the statute (1) permits early intervention in lawsuits alleging unmeritorious causes of action that implicate free speech concerns, and (2) limits opportunity to conduct discovery, the plaintiff's burden of establishing a probability of prevailing is not high: We do not weigh credibility, nor do we evaluate the weight of the evidence. Instead, we accept as true all evidence favorable to the plaintiff and assess the defendant’s evidence only to determine if it defeats the plaintiff’s submission as a matter of law. Only a cause of action that lacks ‘even minimal merit’ constitutes SLAPP.” (Overstock.com, Inc. v. Gradient Analytics, Inc. (2007) 151 Cal.App.4th 688, 699.)
The SLAPP statute’s second element--a “probability of prevailing”--means a “reasonable probability of prevailing, not prevailing by a preponderance of the evidence. For this reason, a court must apply a “summary-judgment-like” test, accepting as true the evidence favorable to the plaintiff and evaluating the defendant’s evidence only to determine whether the defendant has defeated the plaintiff's evidence as a matter of law.” (Gerbosi v. Gaims, Weil, West & Epstein, LLP (2011) 193 Cal.App.4th 435, 444.)
Here, Allarie has not filed an opposition so she has not met her burden to show her claims have minimal merit. In any event, Allarie’s claims are barred by the litigation privilege. The¿litigation privilege immunizes litigants from liability for torts, other than¿malicious prosecution, which arise from communications in judicial proceedings. (Silberg v. Anderson¿(1990) 50 Cal.3d 205, 212, 215.) None of Allarie’s claims are for malicious prosecution. The usual formulation is that the privilege applies to any communication (1) made in judicial or quasi-judicial proceedings; (2) by litigants or other participants authorized by law; (3) to¿achieve the objects of the litigation; and (4) that have some connection or logical relation to the action.¿[Citations.]” (Id.)¿
The privilege generally applies to any communication by a litigant in a judicial proceeding that is made “to achieve the objects of the litigation” and has “some connection or logical relation to the action.” (Id.¿at p. 212.) It is not limited to statements made during a trial or other proceedings, but may extend to steps taken prior thereto, or afterwards. (5 Witkin, Summary of Cal. Law,¿supra,¿Torts, §§ 470, 505, pp. 554, 591.) The primary purpose of the privilege is to afford litigants “the utmost freedom of access to the courts without fear of being harassed subsequently by derivative tort actions.” (Id.¿at p. 213.)
Pleadings and process in a case are generally viewed as privileged communications. (Rubin v. Green¿(1993) 4 Cal.4th 1187, 1195 (complaint and subsequent pleadings in case were privileged); Merlet v. Rizzo¿(1998) 64 Cal.App.4th 53, 64–66¿(motions for writ of sale and reconsideration);¿California Physicians' Service v. Superior Court¿(1992) 9 Cal.App.4th 1321, 1330¿(defensive pleadings).) The California Supreme Court has held that the filing of false declarations of service to obtain a default judgment constitutes a communicative act, subject to the litigation privilege. (Rusheen v. Cohen (2006) 37 Cal.4th 1048, 1065.)
Here, the gravamen of Allarie’s claims is the submission of a false proof of service to secure a default judgment which under Rusheen, is subject to the litigation privilege. Accordingly, because all of Allarie’s claims are subject to the litigation privilege, she cannot satisfy the second prong. (See, e.g., Abraham v. Lancaster Community Hospital¿(1990) 217 Cal. App. 3d 796, 824 (the tort of abuse of process is barred by litigation privilege); S.A. v. Meiden (2014) 229 Cal. App. 4th 27, 43 (the litigation privilege under¿Civil Code section 47, subdivision (b), bars intentional infliction of emotional distress claims arising out of litigation conduct); Flatley v. Mauro¿(2006) 39 Cal.4th 299, 322 (“The litigation privilege has been applied in ‘numerous cases’ involving ‘fraudulent communication or perjured testimony.’”)¿
Sanctions
Because Defendants prevailed on their special motion to strike, they are entitled to attorneys’ fees and costs.¿ David seeks $15,914.50 in attorneys’ fees and costs representing 28.8 hours at the hourly rate of $475.¿ (Uss Decl. ¶14.)¿
Counsel has been practicing law since December 2010, specializing on real estate litigation. (Id. ¶13.) While he is an associate, he has approximately 14 years experience. (Id. ¶¶1, 13.) He normally charges $500 per hour but has reduced his rate to $475 for this case. The Court concludes that the hourly rate is reasonable and in line with rates charged by attorneys with similar experience in the Southern California legal market.¿ (See Blacksher v. United States Sec. Assocs. 2008 Cal. Super. LEXIS 1464 at *7 (hourly rate of $500 for associate is reasonable); White Winston Select Asset Fund Series Fund Mp-18 v. Musclepharm Corp., 2021 Cal. Super. LEXIS 65347 at *14 (hourly rate of $520-$555 for associate is reasonable).)
However, the number of hours expended by defense counsel on a relatively simple anti-SLAPP motion is excessive.¿ The Court has the discretion to reduce the amount of fees (or deny recovery altogether) when the amount of attorney fees is inflated.¿ (Serrano v. Unruh (1982) 32 Cal.3d 621, 635; Meister v. Regents of the Univ. of California (1998) 67 Ca. App. 4th 437, 455.)¿ The Court reduces the hours from 28.8 to 11, representing 10 hours for preparing the motion and 1 hour for preparing for and attending the hearing.¿¿¿¿¿¿
CONCLUSION
For the foregoing reasons, the Court GRANTS Defendants’ special motion to strike the first amended complaint and awards sanctions in the amount of $5,225.
DATED: June 4, 2024 ___________________________
Edward B. Moreton, Jr.
Judge of the Superior Court