Wittenberg v. Bornstein ( 2020 )


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  • Filed 5/19/20; Certified for Publication 6/11/20 (order attached)
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    FIRST APPELLATE DISTRICT
    DIVISION THREE
    AMY WITTENBERG,
    Plaintiff and Respondent,
    A154750
    v.
    DANIEL BORNSTEIN et al.,                                 (Alameda County Super. Ct.
    No. RG17878949)
    Defendants and Appellants.
    Amy Wittenberg and Daniel Bornstein (Daniel)1 are the co-owners of
    Hertzel Enterprises LLC (Hertzel). Yosef Peretz is an attorney who formerly
    represented Hertzel and now represents Daniel. Wittenberg filed a lawsuit
    asserting various causes of action, both individually and derivatively on
    behalf of Hertzel, against several defendants including Daniel and Peretz.
    Wittenberg alleged that Peretz breached his fiduciary duties of loyalty, care,
    and confidentiality by (1) representing clients with interests adverse to those
    of Hertzel; (2) using Hertzel’s confidential business information in his
    representation of clients with adverse interests; and (3) conspiring with
    Daniel and others to dismiss with prejudice a cross-complaint that Hertzel
    had previously filed against Daniel.
    1      For ease of identifying the Bornstein parties, we will refer to them by
    their first names. No disrespect is intended.
    Peretz filed a special motion to strike under the anti-SLAPP law (Code
    Civ. Proc., 2 § 425.16 et seq.), arguing the causes of action against him arose
    from protected litigation activity and lacked minimal merit. As relevant
    here, the trial court declined to strike the fourth and eighteenth causes of
    action for breach of fiduciary duty and conspiracy, finding they arose not out
    of Peretz’s litigation conduct but his alleged breaches of his professional
    obligations.
    We conclude that Peretz carried his burden to show the two causes of
    action arise, in part, from protected activity, and that the burden therefore
    shifted to Wittenberg to show minimal merit on her claims based on the
    allegation of protected activity, which she failed to do. Accordingly, we affirm
    in part and reverse in part the trial court’s order on the anti-SLAPP motion.
    FACTUAL AND PROCEDURAL BACKGROUND
    Wittenberg and Daniel are the two owners and managing members of
    Hertzel, a limited liability company in the business of real estate investment.
    In December 2012, Daniel retained Peretz to negotiate the return of an
    escrow deposit for Hertzel’s purchase of property located at 5327 College
    Avenue in Oakland (the “College Avenue property”) after Hertzel cancelled
    the deal. The dispute was resolved by February 2013 when Hertzel recouped
    most of its deposit.
    In September 2016, Daniel initiated proceedings to dissolve Bornstein
    & Bornstein (B&B), a law partnership formed in 1993 by Daniel and
    Jonathan Bornstein (Jonathan), who is Daniel’s brother and Wittenberg’s ex-
    husband.3 The B&B dissolution proceeding (Alameda County Superior Court
    2     All further statutory references are to the Code of Civil Procedure
    unless stated otherwise.
    3     The B&B dissolution complaint and other court records filed in the
    proceedings below were the subject of requests for judicial notice filed by both
    2
    case no. RG16830541; hereafter, the “541 action”) led to a slew of related
    claims and cross-actions, including Wittenberg’s complaint in the separate
    action here (Alameda Superior Court case no. RG17878949; hereafter, the
    “949 action”). We briefly discuss the relevant pleadings in the 541 and 949
    actions below.
    In late September 2016, Jonathan filed a cross-complaint in the 541
    action against Daniel and others alleging that Daniel improperly used his
    side real estate businesses including Hertzel, Legal One Realty aka Bay
    Property Group (Legal One or BPG), and 482 W. MacArthur LLC
    (482 W. MacArthur) to divert money, resources, and assets away from B&B.
    Also in late September 2016, Wittenberg authorized attorney Susan
    Breed to file a cross-complaint for Hertzel in the 541 action, alleging that
    Daniel, Legal One/BPG, and a BPG employee committed misconduct in their
    management of several properties owned by Hertzel. Breed was eventually
    succeeded as Hertzel’s counsel by Daniel Cravens. In March 2017, a Judicial
    Council form request for dismissal was filed seeking the dismissal of Hertzel’s
    cross-complaint with prejudice. Although the trial court initially entered the
    dismissal with prejudice, it later granted a motion by Wittenberg, on behalf
    of herself and Hertzel, to deem that the dismissal was without prejudice.
    Meanwhile, Daniel filed a cross-complaint and subsequently a first
    amended cross-complaint in the 541 action against Jonathan and Wittenberg
    for involuntary dissolution and accounting of Hertzel. Daniel also asserted
    various tort and statutory claims against Jonathan.
    In October 2017, Jonathan and Wittenberg initiated the instant 949
    action against Daniel, his wife Renuka Bornstein (Renuka), and
    parties on appeal. We deferred consideration of these requests pending
    consideration of the appeal on its merits. We now grant them. (Evid. Code,
    § 452, subd. (d).)
    3
    482 W. MacArthur. Their complaint named Hertzel as a nominal defendant
    and asserted multiple causes of action derivatively on Hertzel’s behalf for
    breaches of real property management and brokerage agreements and
    related torts. In January 2018, Wittenberg4 filed a first amended complaint
    (FAC), which is the pleading at issue in this appeal. The FAC added new
    allegations, new causes of action, and new defendants, including attorney
    Peretz.
    As relevant here, the FAC alleges that Daniel cancelled Hertzel’s
    purchase of the College Avenue property as part of a plan to use Hertzel’s
    assets to purchase property located at 482 West MacArthur Boulevard in
    Oakland (the West MacArthur property) for himself and his wife. The FAC
    further alleges that Peretz participated in a conspiracy with Daniel and
    others and breached his duty as an attorney to Hertzel. After the College
    Avenue deal was cancelled, Daniel allegedly “converted $250,000 of funds
    from Hertzel’s bank account,” used the funds to purchase the West
    MacArthur property in Renuka’s name, and placed title to that property in a
    company called “482 W. MacArthur,” which was solely owned and operated
    by Renuka. According to the FAC, these transactions operated to defraud
    Hertzel “in violation of both [Daniel’s] fiduciary duty to disclose the entire
    terms of the transaction to Hertzel and Amy Wittenberg.” All of the money
    used to purchase and renovate the West MacArthur property allegedly came
    from Hertzel, and all revenue generated by that property was taken by
    Daniel, Renuka, and Legal One and never returned to Hertzel.
    The FAC asserts 20 causes of action, individually and derivatively on
    behalf of Hertzel, 11 of which are brought against Peretz. These are the
    fourth cause of action for breach of fiduciary duty, fifth cause of action for
    4     The FAC no longer named Jonathan as a plaintiff.
    4
    negligent handling of legal matter, eighth cause of action for negligence per
    se, ninth cause of action for fraud and deceit by misrepresentation, tenth
    cause of action for fraud and deceit by concealment, eleventh cause of action
    for fraud and deceit by nondisclosure of superior knowledge, fifteenth cause
    of action for conversion, sixteenth cause of action for common count,
    seventeenth cause of action for aiding and abetting, eighteenth cause of
    action for conspiracy, and twentieth cause of action for constructive trust.5
    The specific allegations against Peretz are that he acted negligently
    and in breach of his fiduciary duties of loyalty, care, and confidentiality by
    (1) representing clients with conflicting interests without obtaining a written
    conflict waiver from Hertzel or Wittenberg; (2) utilizing Hertzel’s confidential
    business information to prosecute Daniel’s dissolution and accounting claims
    against Hertzel and to defend Daniel and Renuka against Hertzel’s claims;
    and (3) “conspiring with Daniel Bornstein and Daniel Cravens to prepare and
    file a dismissal with prejudice” of Hertzel’s cross-complaint without the
    informed written consent of the client, all of which allegedly caused harm to
    both Wittenberg and Hertzel.
    Peretz’s Special Motion to Strike
    Peretz filed an anti-SLAPP motion challenging the causes of action
    against him in Wittenberg’s FAC. Peretz argued that the challenged causes
    of action arose from protected petitioning activity because they involved his
    litigation conduct (i.e., representing Daniel and related parties, preparing
    and filing the request for dismissal of Hertzel’s cross-complaint), and that
    Wittenberg could not show a likelihood of prevailing on her claims. In
    5     Only the fourth, fifth, seventeenth, and eighteenth causes of action
    mention Peretz by name. The eighth, ninth, tenth, eleventh, fifteenth,
    sixteenth, and twentieth causes of action contain no specific allegations about
    Peretz but are asserted against “all defendants.”
    5
    support, Peretz submitted declarations from himself and Daniel stating that
    Peretz obtained no confidential business information of Hertzel during his
    brief representation of Hertzel in 2012 and 2013; that Wittenberg was never
    Peretz’s client; and that there was no evidence of a conspiracy to dismiss
    Hertzel’s cross-complaint. According to Peretz, Wittenberg executed a
    “management resolution” agreeing to dismissal of the Hertzel cross-complaint
    in exchange for a $50,000 distribution from Hertzel. Peretz also averred it
    was always his understanding that the parties contemplated a dismissal of
    the Hertzel cross-complaint with prejudice.
    In opposition, Wittenberg argued the challenged causes of action did
    not arise from protected activity because the acts giving rise to Peretz’s
    liability were his acceptance of employment by Daniel (a client with adverse
    interests to his former client, Hertzel), and his use of Hertzel’s confidential
    information against Hertzel in representing Daniel. Wittenberg further
    argued that, in any event, she demonstrated a probability of prevailing on
    her claims. On this score, Wittenberg submitted her declaration and the
    declaration of her former attorney, Ari Lauer, in which they represented that
    Wittenberg never authorized a dismissal of Hertzel’s cross-complaint with
    prejudice and that she did not agree to a settlement of any claims in
    exchange for the $50,000 distribution.
    The trial court granted the motion in part and denied it in part. As
    relevant here, the court declined to strike the fourth and eighteenth causes of
    action. Specifically, the court determined that the fourth cause of action for
    breach of fiduciary duty fell into an exception to the anti-SLAPP law for
    claims by a client against his or her attorney for acts on that client’s behalf.
    With regard to the eighteenth cause of action, the trial court concluded it
    failed to specify the manner of Peretz’s participation in the alleged conspiracy
    6
    and was therefore “not clear whether it is based on Peretz’s litigation conduct
    or something else possibly falling outside section 425.16.6
    Peretz appeals these two rulings. (§ 425.16, subd. (i).)
    DISCUSSION
    Section 425.16 authorizes a special motion to strike claims arising from
    any act “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.” (§ 425.16, subd. (b)(1).) The purpose of the anti-SLAPP
    statute is to encourage participation in matters of public significance by
    allowing defendants to request “early judicial screening” of claims targeting
    free speech or petitioning activities. (Wilson v. Cable News Network, Inc.
    (2019) 
    7 Cal. 5th 871
    , 887; see § 425.16, subd. (a).)
    Resolution of an anti-SLAPP motion involves two steps. First, the
    defendant must establish that the challenged claim arises from activity
    protected by section 425.16, and if the defendant makes this showing, the
    burden shifts to the plaintiff to demonstrate the merit of the claim by
    establishing a probability of success. (Baral v. Schnitt (2016) 
    1 Cal. 5th 376
    ,
    384 (Baral).) On appeal, we review the trial court’s ruling on the anti-SLAPP
    motion de novo. (Bernardo v. Planned Parenthood Federation of America
    (2004) 
    115 Cal. App. 4th 322
    , 339.)
    A. First Step—Liability Arising from Protected Activity
    “A claim arises from protected activity when that activity underlies or
    forms the basis for the claim.” (Park v. Board of Trustees of California State
    6      The court additionally granted the anti-SLAPP motion and struck the
    fifth and seventeenth causes of action. Although it declined to strike the
    eighth, ninth, tenth, eleventh, fifteenth, sixteenth and twentieth causes of
    action, it ultimately sustained Peretz’s demurrer to these causes of action
    without leave to amend. This appeal is limited to the court’s anti-SLAPP
    rulings on Wittenberg’s fourth and eighteenth causes of action.
    7
    University (2017) 
    2 Cal. 5th 1057
    , 1062–1063 (Park).) “[I]n ruling on an anti-
    SLAPP motion, courts should consider the elements of the challenged claim
    and what actions by the defendant supply those elements and consequently
    form the basis for liability.” (Id. at p. 1063.)
    Here, the acts which supply the requisite elements of the fourth and
    eighteenth causes of action7 are as follows: Peretz accepted representation of
    Daniel even though Daniel had interests adverse to Hertzel in connection
    with subject matter related to Peretz’s earlier representation of Hertzel (the
    College Avenue deal); Peretz used Hertzel’s confidential business information
    to prosecute Daniel’s dissolution and accounting claims against Hertzel and
    to defend Daniel and related parties against Hertzel’s derivative claims in
    both the 541 and 949 actions; and Peretz conspired with Daniel and attorney
    Cravens in preparing and filing the dismissal of the Hertzel cross-complaint
    in the 541 action with prejudice.
    “Filing a lawsuit is an exercise of one’s constitutional right of petition,
    and statements made in connection with or in preparation of litigation are
    subject to section 425.16.” (Kashian v. Harriman (2002) 
    98 Cal. App. 4th 892
    ,
    908.) Thus, a cause of action arising from acts committed by attorneys in
    representing clients in litigation may appropriately be the subject of an anti-
    SLAPP motion. (PrediWave v. Simpson Thacher & Bartlett LLP (2009)
    
    179 Cal. App. 4th 1204
    , 1221 (PrediWave).) However, a client’s action against
    7     The elements of a cause of action for breach of fiduciary duty/duty of
    loyalty are: (1) the existence of a relationship giving rise to a fiduciary
    duty/duty of loyalty; (2) one or more breaches of that duty; and (3) damage
    proximately caused by that breach. (Huong Que, Inc. v. Luu (2007)
    
    150 Cal. App. 4th 400
    , 410.) The elements of civil conspiracy are: (1) the
    formation and operation of the conspiracy; (2) wrongful conduct in
    furtherance of the conspiracy; and (3) damages arising from the wrongful
    conduct. (Kidron v. Movie Acquisition Corp. (1995) 
    40 Cal. App. 4th 1571
    ,
    1581.)
    8
    his or her attorney, whether it is pleaded as a claim for malpractice, breach of
    fiduciary duty, or any other theory of recovery, is not subject to the anti-
    SLAPP statute “merely because some of the allegations refer to the attorney’s
    actions in court.” (Hylton v. Frank E. Rogozienski, Inc. (2009)
    
    177 Cal. App. 4th 1264
    , 1275.) When the allegations referring to litigation
    activity “ ‘ “are only incidental to a cause of action based essentially on
    nonprotected activity, collateral allusions to protected activity should not
    subject the cause of action to the anti-SLAPP statute.” ’ ” (Id. at p. 1273.)
    Several pertinent cases illustrate this distinction. In Benasra v.
    Mitchell Silberberg & Knupp LLP (2004) 
    123 Cal. App. 4th 1179
    (Benasra), the
    court held that the plaintiffs’ causes of action against their former attorneys
    for breach of the duty of loyalty in subsequently representing a rival in
    arbitration arose not from protected conduct, but from alleged violations of
    the State Bar Rules of Professional Conduct prohibiting an attorney from
    accepting employment adverse to a former client where, by reason of the prior
    representation, the member has obtained confidential information material to
    the employment. “[O]nce the attorney accepts a representation in which
    confidences disclosed by a former client may benefit the new client due to the
    relationship between the new matter and the old, he or she has breached a
    duty of loyalty. The breach of fiduciary duty lawsuit may follow litigation
    pursued against the former client, but does not arise from it.” (Id. at
    p. 1189.)
    Similarly, in Freeman v. Schack (2007) 
    154 Cal. App. 4th 719
    (Freeman),
    the plaintiffs sued their former attorney for breach of contract, breach of
    fiduciary duty, and negligence, alleging he entered into a contract by which
    he assumed attorney-client duties to plaintiffs but abandoned them to
    represent adverse interests in the same and different litigation. (Id. at
    9
    p. 722.) Reversing the order granting the attorney’s anti-SLAPP motion, the
    appellate court held that the principal thrust of the conduct underlying the
    plaintiffs’ causes of action was not the attorney’s filing or settlement of
    litigation, but “his undertaking to represent a party with interests adverse to
    plaintiffs, in violation of the duty of loyalty he assertedly owed to them.” (Id.
    at p. 732.) The attorney’s litigation-related activities, the court held, were
    merely incidental to his negligence and breach of fiduciary duty. (Ibid.)
    Citing Benasra and Freeman approvingly, the appellate court in
    PrediWave outlined three classes of cases against attorneys relating to the
    SLAPP law: (1) clients’ causes of action against attorneys based upon the
    attorney’s acts on behalf of those clients; (2) clients’ causes of action against
    attorneys based upon statements or conduct solely on behalf of different
    clients; and (3) non-clients’ causes of action against attorneys. 
    (PrediWave, supra
    , 179 Cal.App.4th at p. 1227.) The court held that only the first
    category of cases may be outside the ambit of the anti-SLAPP law. (Ibid.)
    Finally, in Loanvest I, LLC v. Utrecht (2015) 
    235 Cal. App. 4th 496
    (Loanvest), a corporate entity sued its former attorney for malpractice,
    alleging he had breached his duty of loyalty to the company by taking legal
    positions in a prior litigation that were intended to benefit the company’s
    previous manager, who controlled the company. Relying on PrediWave and
    other decisions in accord, this court held that “[w]here . . . a legal malpractice
    action is brought by an attorney’s former client, claiming the attorney
    breached fiduciary obligations to the client as the result of a conflict of
    interest or other deficiency in the representation of the client, the action does
    not threaten to chill the exercise of protected rights and the first prong of the
    anti-SLAPP analysis is not satisfied.” (Id. at p. 504.)
    10
    As in Benasra, Freeman, and Loanvest, Peretz’s alleged acts of
    representing clients with interests adverse to his former client and using
    Hertzel’s confidential information in the new representation do not constitute
    protected activity under the anti-SLAPP law. Such causes of action arise
    from Peretz’s alleged breaches of his fiduciary and professional obligations,
    not from the litigation conduct, which is merely incidental to the unprotected
    conduct. There is no chilling effect on advocacy in such claims; rather, the
    threat of liability encourages the attorney to act competently and loyally.
    
    (PrediWave, supra
    , 179 Cal.App.4th at p. 1222; 
    Loanvest, supra
    ,
    235 Cal.App.4th at p. 504.)
    Peretz contends, nonetheless, that the derivative claims are illusory
    and should be disregarded because Wittenberg fails to distinguish between
    her individual injury and the injury to Hertzel, while her individual claims
    fall into the third PrediWave category (nonclient claims against an attorney)
    because she does not allege an attorney-client relationship with Peretz. But
    whether Wittenberg sufficiently alleges a derivative claim and an attorney-
    client relationship goes to the claims’ merits, which is an inquiry reserved for
    the second step of the anti-SLAPP analysis. (Sprengel v. Zbylut (2015)
    
    241 Cal. App. 4th 140
    , 155–157.) At the first step, we merely identify the acts
    supplying the elements of the challenged causes of action 
    (Park, supra
    ,
    2 Cal.5th at p. 1063), and to that end, it is sufficient that Wittenberg alleges
    she was harmed by Peretz’s breaches of his professional obligations of loyalty
    and confidentiality.
    We reach a different conclusion for the particular allegation that Peretz
    was involved in the preparation and filing of the request for dismissal of the
    Hertzel cross-complaint. (See 
    Baral, supra
    , 1 Cal.5th at pp. 393–394 [anti-
    SLAPP motion can be used like conventional motion to strike to challenge
    11
    claims of protected conduct mixed with assertions of unprotected conduct in a
    cause of action].) Wittenberg argues that this conduct falls within the first
    PrediWave category (and is therefore outside the ambit of the anti-SLAPP
    law) because Peretz is being sued for work he performed for his former client,
    Hertzel. Peretz argues to the contrary that it falls under the second
    PrediWave category because the alleged conduct was taken on behalf of a
    different client, Daniel. In our view, the conduct fails to fall squarely within
    either category. Peretz represented Hertzel only with reference to recouping
    the College Avenue escrow deposit and no longer represented Hertzel at the
    time he allegedly conspired with Daniel and Cravens to effectuate the
    dismissal with prejudice of Hertzel’s cross-complaint. Yet we acknowledge
    Peretz was not acting “solely” on behalf of a different client 
    (PrediWave, supra
    , 179 Cal.App.4th at p. 1227), since the dismissal directly implicated the
    rights and interests of his former client.
    PrediWave categories aside, we conclude the act underlying Peretz’s
    liability for this particular allegation is protected litigation conduct.
    Although the FAC does not specifically allege the acts that Peretz performed
    in connection with the dismissal of the Hertzel cross-complaint, the parties’
    evidentiary submissions provide more clarity. (See 
    Wilson, supra
    ,
    7 Cal.5th at p. 887 [courts must look beyond pleadings to parties’ evidentiary
    submissions on first anti-SLAPP step]; Salma v. Capon (2008)
    
    161 Cal. App. 4th 1275
    , 1286 [citing declarations to understand whether vague
    pleading described protected activity].) Wittenberg states in her declaration
    that she and Lauer discussed “Peretz’s proposal to dismiss the cross-
    complaint against Daniel Bornstein” during settlement talks. The dismissal
    of the Hertzel cross-complaint was one of the subjects of the management
    resolution “prepared by” Peretz, and Wittenberg states that after she
    12
    executed the resolution, Peretz “filed the dismissal with prejudice with the
    court via facsimile.”8 It appears, then, that the acts upon which Peretz’s
    liability is based are his statements and writings made in connection with the
    dismissal of the Hertzel’s cross-complaint, which is protected conduct under
    the anti-SLAPP law. (§ 425.16, subd. (e)(2) [statements and writings in
    connection with judicial proceedings].)
    Because the fourth and eighteenth causes of action seek relief based, in
    part, on these specific allegations of Peretz’s litigation activity, the burden
    shifted to Wittenberg to demonstrate the minimal merit of the challenged
    causes of action to the extent they are based on protected litigation conduct.
    (
    Baral, supra
    , 1 Cal.5th at pp. 393–394, 396.)
    B. Second Step—Probability of Prevailing
    The second step of the anti-SLAPP motion is a “ ‘summary-judgment-
    like procedure’ ” (
    Baral, supra
    , 1 Cal.5th at p. 394), requiring the plaintiff to
    demonstrate that the complaint is both legally sufficient and supported by a
    prima facie showing of facts to sustain a favorable judgment if the plaintiff’s
    evidence is credited. (Wilson v. Parker, Covert & Chidester (2002)
    
    28 Cal. 4th 811
    , 821.) In conducting this inquiry as to the allegations of
    Peretz’s litigation conduct, we do not weigh evidence or resolve conflicting
    factual claims, and we accept the plaintiff’s evidence as true and evaluate the
    defendant’s showing only to determine if it defeats the plaintiff’s claim as a
    matter of law. (Baral, at pp. 384–385.) “[C]laims with the requisite minimal
    merit may proceed.” (Navellier v. Sletten (2002) 
    29 Cal. 4th 82
    , 94.)
    8      Although the request for dismissal form indicates on its face that it was
    executed by Cravens as Hertzel’s counsel, a telephone number appearing at
    the top of the form matches the number held out by Peretz in his court
    filings. Peretz does not dispute his alleged involvement in the preparation
    and filing of the dismissal request form.
    13
    Peretz argues that Wittenberg’s individual and derivative claims for
    breach of fiduciary duty lack minimal merit because Hertzel ultimately
    suffered no harm from the dismissal of its cross-complaint, and because
    Wittenberg failed to allege and substantiate an attorney-client relationship
    with Peretz. We agree.
    First, as Peretz observes, the trial court’s order setting aside the
    dismissal with prejudice had the effect of rendering moot any harm to Hertzel
    in being temporarily deprived of its right to refile its cross-complaint.
    Second, although Wittenberg alleges additional individual damages in
    the form of legal fees she personally incurred to set aside the dismissal, she
    has not sufficiently alleged or substantiated an attorney-client relationship
    (or other fiduciary relationship) between her and Peretz to support her
    individual claim for breach of fiduciary duty. Peretz establishes in his
    declaration that he never represented Wittenberg as her attorney in any
    matter. Wittenberg does not allege or contend otherwise.
    True, Peretz briefly represented Hertzel in 2012 and 2013, and an
    implied attorney-client relationship may be formed between the attorney for
    a corporate entity and its individual members where, as here, the corporate
    entity is owned by two 50 percent members. (Sprengel v. Zbylut (2019)
    
    40 Cal. App. 5th 1028
    , 1043, 1046.) However, “the key inquiry is whether ‘the
    totality of the circumstances’ implies an agreement that a corporate attorney
    will not act adversely to the individual shareholder’s interests with respect to
    the issue in dispute.” (Id. at p. 1047.)
    The evidence in this case demonstrates that Wittenberg had no reason
    to believe Peretz was acting to protect her interests with respect to the
    proposed dismissal of the Hertzel cross-complaint. As Wittenberg
    acknowledges, Peretz discussed the proposed dismissal with Wittenberg’s
    14
    own attorney, Lauer. There is no dispute that Peretz was representing
    Daniel in defending against the Hertzel cross-complaint. Likewise, the
    evidence establishes that Hertzel’s counsel at the time was Breed, who was
    eventually succeeded by Cravens. At all relevant times, Wittenberg was
    represented by her own counsel and was an adversary in litigation with
    Peretz’s client, Daniel. Thus, Wittenberg fails to raise a triable issue as to
    the existence of an attorney-client or other fiduciary relationship between her
    and Peretz.
    Finally, we conclude Wittenberg fails to show minimal merit on her
    eighteenth cause of action alleging a conspiracy involving dismissal of the
    cross-complaint. “Conspiracy is not a cause of action, but a legal doctrine
    that imposes liability on persons who, although not actually committing a
    tort themselves, share with the immediate tortfeasors a common plan or
    design in its perpetration.” (Applied Equipment Corp. v. Litton Saudi Arabia
    Ltd. (1994) 
    7 Cal. 4th 503
    , 510–511.) Plainly stated, Wittenberg fails to make
    a prima facie showing of facts that Peretz acted pursuant to a common plan
    or design with Daniel and Cravens to obtain the unauthorized dismissal of
    the Hertzel cross-complaint with prejudice.
    For all of these reasons, we conclude the anti-SLAPP motion should
    have been granted, in part, as to the allegation that Peretz participated in
    the preparation and filing of the dismissal with prejudice of the Hertzel cross-
    complaint against Peretz.
    DISPOSITION
    The order denying in part and granting in part the anti-SLAPP motion
    is reversed to the extent it denied the motion to strike as to the allegation
    that Peretz participated in the preparation and filing of the dismissal with
    prejudice of the Hertzel cross-complaint. The matter is remanded with
    15
    directions to grant the special motion to strike the following sentences from
    Wittenberg’s first amended complaint and the claims arising from the
    stricken sentences: (1) the carryover sentence in paragraph 67, beginning at
    line 27 on page 25 and ending on line 3 on page 26; and (2) the last sentence
    in paragraph 69 on page 26, beginning at line 19 and ending on line 22. In
    all other respects, the order is affirmed. The parties shall bear their own
    costs on appeal.
    16
    _________________________
    Fujisaki, J.
    WE CONCUR:
    _________________________
    Siggins, P. J.
    _________________________
    Jackson, J.
    A154750
    17
    Filed 6/11/20
    CERTIFIED FOR PUBLICATION
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    FIRST APPELLATE DISTRICT
    DIVISION THREE
    AMY WITTENBERG,
    Plaintiff and Respondent,
    A154750
    v.
    DANIEL BORNSTEIN et al.,                     (Alameda County Superior
    Court No. RG17878949)
    Defendants and Appellants.
    BY THE COURT:
    The opinion in the above-entitled matter, filed on May 19, 2020, was
    not certified for publication in the Official Reports. For good cause, the
    request for publication is granted.
    Pursuant to California Rules of Court, rules 8.1120 and 8.1105(c)(2),
    the opinion in the above-entitled matter is ordered certified for publication in
    the Official Reports.
    Dated: _______________                   _________________________Acting P.J.
    1
    Trial Court:   Alameda County Superior Court
    Trial Judge:   Hon. Paul D. Herbert
    Counsel:       Lonnie Finkel, Douglas A. Applegate, for Plaintiff and
    Respondent.
    Yosef Peretz, Daniel J. Cravens for Defendant and
    Appellant.
    2
    

Document Info

Docket Number: A154750

Filed Date: 6/11/2020

Precedential Status: Precedential

Modified Date: 6/11/2020