Caution As of: May 6, 2019 4:29 AM Z
Serova v. Sony Music Entertainment
Court of Appeal of California, Second Appellate District, Division Two August 28, 2018, Opinion Filed B280526
Reporter 26 Cal. App. 5th 759 *; 237 Cal. Rptr. 3d 487 **; 2018 Cal. App. LEXIS 767 ***; 2018 WL 4090622 VERA SEROVA, Plaintiff and Respondent, v. SONY Overview MUSIC ENTERTAINMENT et al., Defendants and HOLDINGS: [1]-An anti-SLAPP motion filed by the Appellants. marketers of a posthumous album by a prominent musical artist was improperly denied as to allegations Notice: As modified Sept. 13, 12018. concerning statements on the album's cover and in its THE SUPREME COURT OF CALIFORNIA GRANTED promotional video about the identity of the lead singer on the album's tracks where plaintiff could not show a REVIEW IN THIS MATTER (see Cal. Rules of Court, likelihood of prevailing on her claims, as the statements, rules 8.1105(e)(1)(B), 8.1115(e)) December 12, 2018, which concerned a publicly disputed issue about which S251822. the marketers had no personal knowledge, were Subsequent History: Modified and rehearing denied by noncommercial speech outside the scope of the Serova v. Sony Music Entertainment, 2018 Cal. App. consumer protection claims that she asserted; [2]-The LEXIS 819 (Cal. App. 2d Dist., Sept. 13, 2018) identity of the singer on three of the tracks was a controversial issue of interest to the artist's fans and Time for Granting or Denying Review Extended Serova others who cared about his musical legacy, and the v. Sony Music Entertainment, 2018 Cal. LEXIS 9540 identity of the singer was also integral to the artistic (Cal., Dec. 3, 2018) significance of the songs themselves, which were entitled to full protection under the First Amendment. Review granted by, Review pending at Serova v. Entm't, 2018 Cal. LEXIS 9687 (Cal., Dec. 12, 2018) Outcome Order affirmed in part and reversed in part. Prior History: [***1] APPEAL from an order of the Superior Court of Los Angeles County, No. BC548468, LexisNexis® Headnotes Ann I. Jones, Judge.
Disposition: Affirmed in part and reversed in part.
Core Terms Civil Procedure > ... > Responses > Defenses, album, Tracks, Disputed, commercial speech, Demurrers & Objections > Motions to Strike Promotional, anti-SLAPP, advertisement, challenged statement, lead singer, public interest, Video, Constitutional Law > ... > Fundamental subdivision, songs, musical, alleges, artist, singer, law Freedoms > Freedom of Speech > Strategic law law, regulation, recordings, noncommercial speech, Lawsuits Against Public Participation personal knowledge, trial court, representations, misleading, consumer, vocals, products, purposes, HN1[ ] Motions to Strike services Code Civ. Proc., § 425.16, provides for a special motion Case Summary to strike when a plaintiff asserts claims 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
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States Constitution or the California Constitution in of grievances, contrary to the purpose and intent of § connection with a public issue. § 425.16, subd. (b)(1). 425.16. § 425.17, subd. (a). Section 425.17 seeks to Such claims must be struck unless the court determines accomplish that goal by expressly excluding several that the plaintiff has established that there is a categories of claims from the scope of § 425.16. Section probability that the plaintiff will prevail on the claim. 425.17, subd. (c), establishes such an exclusion for Thus, ruling on an anti-SLAPP (strategic lawsuit against claims concerning commercial speech, providing that § public participation) motion involves a two-step 425.16 does not apply to any cause of action brought procedure. First, the moving defendant must show that against a person primarily engaged in the business of the challenged claims arise from protected activity. selling or leasing goods or services if certain conditions Second, if the defendant makes such a showing, the exist, including that: (1) the statement at issue consists burden shifts to the plaintiff to demonstrate that each of representations of fact about that person's or a challenged claim based on protected activity is legally business competitor's business operations, goods, or sufficient and factually substantiated. Without resolving services that was made to promote commercial evidentiary conflicts, the court determines whether the transactions or was made in the course of delivering the plaintiff's showing, if accepted by the trier of fact, would person's goods or services; and (2) the intended be sufficient to sustain a favorable judgment. audience is an actual or potential customer or a person likely to influence a customer. § 425.17, subd. (c)(1) & (2). Section 425.17 contains certain specifically defined exceptions. Civil Procedure > ... > Responses > Defenses, Demurrers & Objections > Motions to Strike
Constitutional Law > ... > Fundamental Civil Procedure > Appeals > Standards of Freedoms > Freedom of Speech > Strategic Review > De Novo Review Lawsuits Against Public Participation Civil Procedure > ... > Responses > Defenses, HN2[ ] Motions to Strike Demurrers & Objections > Motions to Strike
Code Civ. Proc., § 425.16, subd. (e), defines the Constitutional Law > ... > Fundamental categories of acts that are in furtherance of a person's Freedoms > Freedom of Speech > Strategic right of petition or free speech. Those categories include Lawsuits Against Public Participation any written or oral statement or writing made in a place open to the public or a public forum in connection with HN4[ ] De Novo Review an issue of public interest, and any other conduct in furtherance of the exercise of the constitutional right of An appellate court applies a de novo standard of review petition or the constitutional right of free speech in to a trial court's rulings on an anti-SLAPP (strategic connection with a public issue or an issue of public lawsuit against public participation) motion. interest. § 425.16, subd. (e)(3) & (4).
Civil Procedure > ... > Responses > Defenses, Civil Procedure > ... > Responses > Defenses, Demurrers & Objections > Motions to Strike Demurrers & Objections > Motions to Strike Constitutional Law > ... > Fundamental Constitutional Law > ... > Fundamental Freedoms > Freedom of Speech > Strategic Freedoms > Freedom of Speech > Strategic Lawsuits Against Public Participation Lawsuits Against Public Participation HN5[ ] Motions to Strike HN3[ ] Motions to Strike Code Civ. Proc., § 425.17, subd. (d)(2), provides that In 2003, the legislature enacted Code Civ. Proc., § the creation, dissemination, exhibition, advertisement, or 425.17, to curb abuse of Code Civ. Proc., § 425.16, other similar promotion of any dramatic, literary, which had undermined the exercise of the constitutional musical, political, or artistic work is outside the scope of rights of freedom of speech and petition for the redress the commercial speech provision in § 425.17, subd. (c).
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The exception in § 425.17, subd. (d)(2), means that the HN8[ ] Commercial Speech promotion of a musical work is not included within the categories of conduct that the legislature specifically Restrictions on purely commercial speech are subject to stated were not subject to anti-SLAPP (strategic lawsuit a lesser level of scrutiny than are other constitutionally against public participation) relief. However, the safeguarded forms of expression. Moreover, legislature's decision to exclude the advertising of commercial speech that is false or misleading is not musical works from § 425.17 does not mean that it also entitled to First Amendment protection and may be intended to afford anti-SLAPP protection to such prohibited entirely. conduct in every circumstance, regardless of the requirements of Code Civ. Proc., § 425.16. Constitutional Law > ... > Fundamental Freedoms > Freedom of Speech > Commercial Civil Procedure > ... > Responses > Defenses, Speech Demurrers & Objections > Motions to Strike HN9[ ] Commercial Speech Constitutional Law > ... > Fundamental Freedoms > Freedom of Speech > Strategic The California Supreme Court has crafted a limited- Lawsuits Against Public Participation purpose test for identifying commercial speech. The test applies when a court must decide whether particular HN6[ ] Motions to Strike speech may be subjected to laws aimed at preventing false advertising or other forms of commercial The exception of Code Civ. Proc., § 425.17, subd. deception. A court faced with such a decision should (d)(2), does not provide anti-SLAPP (strategic lawsuit consider three elements: the speaker, the intended against public participation) protection to sellers of audience, and the content of the message. music in every context.
Constitutional Law > ... > Fundamental Civil Procedure > ... > Responses > Defenses, Freedoms > Freedom of Speech > Commercial Demurrers & Objections > Motions to Strike Speech
Constitutional Law > ... > Fundamental HN10[ ] Commercial Speech Freedoms > Freedom of Speech > Strategic Lawsuits Against Public Participation At least in relation to regulations aimed at protecting consumers from false and misleading promotional HN7[ ] Motions to Strike practices, commercial speech must consist of factual representations about the business operations, Public interest in the life and work of entertainers and products, or services of the speaker (or the individual or other celebrities can create an issue of public interest company on whose behalf the speaker is speaking), for purposes of Code Civ. Proc., § 425.16, subd. (e). made for the purpose of promoting sales of, or other There is a public interest that attaches to people who, commercial transactions in, the speaker's products or by their accomplishments, mode of living, professional services. This requirement relates directly to the standing, or calling, create a legitimate and widespread reasons for denying First Amendment protection to false attention to their activities. Facts concerning the creation or misleading commercial speech. The United States of works of art and entertainment can also be an issue Supreme Court has stated that false or misleading of public interest for purposes of the anti-SLAPP commercial speech may be prohibited because the truth (strategic lawsuit against public participation) statute. of commercial speech is more easily verifiable by its disseminator and because commercial speech, being motivated by the desire for economic profit, is less likely Constitutional Law > ... > Fundamental than noncommercial speech to be chilled by proper Freedoms > Freedom of Speech > Commercial regulation. Speech
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Constitutional Law > ... > Fundamental [*759] CALIFORNIA OFFICIAL REPORTS SUMMARY Freedoms > Freedom of Speech > Commercial Speech Plaintiff filed a putative class action against the marketers of a posthumous album by a prominent HN11[ ] Commercial Speech musical artist. The marketers were a music company, the coexecutor of the artist's estate, and a production Economic motivation is only one of the factors, company. Plaintiff alleged claims under the unfair insufficient in itself, that may indicate that speech is competition law (UCL) (Bus. & Prof. Code, § 17200 et commercial. Whether speech is commercial or seq.) and the Consumers Legal Remedies Act (CLRA) noncommercial should take account of the reasons for (Civ. Code, § 1750 et seq.), contending that the album affording commercial speech less constitutional cover and a promotional video misleadingly represented protection. that the artist was the lead singer on each of the 10 vocal tracks on the album, when in fact he was not the lead singer on three of those tracks (the disputed Constitutional Law > ... > Freedom of tracks). The marketers filed a motion to strike under the Speech > Commercial Speech > Advertising anti-SLAPP statute (Code Civ. Proc., § 425.16), which the trial court granted in part but denied with respect to HN12[ ] Advertising two communications: the trial court concluded that the album cover, including statements about the contents of Advertising is not necessarily excluded from the the album, and a promotional video for the album were category of commercial speech simply because it commercial speech that was subject to regulation under promotes a product that is itself subject to full First the UCL and the CLRA. (Superior Court of Los Angeles Amendment protection. There is no apparent reason County, No. BC548468, Ann I. Jones, Judge.) why a statement falsely stating that a particular song is included in an album should be subject to full First The Court of Appeal affirmed the order in part and Amendment protection simply because the statement reversed in part. The court held that the exception of promotes the sale of music. However, where a Code Civ. Proc., § 425.17, subd. (d)(2), for the challenged statement in an advertisement relates to a advertising of musical works does not provide anti- public controversy about the identity of an artist SLAPP protection to sellers of music in every context. responsible for a particular work, and the advertiser has The challenged representation—that the artist was the no personal knowledge of the artist's identity, it is lead singer on the disputed tracks—did not simply appropriate to take account of the First Amendment promote sale of the album, but also stated a position on significance of the work itself in assessing whether the a disputed issue of public interest. Before the album content of the statement was purely commercial. was released, certain family members of the artist and others publicly claimed that the artist was not the lead singer on the disputed tracks. The marketers disputed that claim. An attorney acting for the artist's estate Constitutional Law > ... > Fundamental released a public statement outlining the steps the Freedoms > Freedom of Speech > Commercial marketers had taken to verify the authenticity of the Speech tracks by consulting with experts and persons who were familiar with the artist's voice and recordings. Thus, the HN13[ ] Commercial Speech identity of the artist on the disputed tracks was a controversial issue of interest to the artist's fans and No single factor that the United States Supreme Court others who cared about his musical legacy. The identity has identified as a marker of commercial speech is of the lead singer was also integral to the artistic sufficient in itself to classify particular speech as significance of the songs [*760] themselves. Where a commercial, nor must each factor necessarily be challenged statement in an advertisement relates to a present in order for speech to be commercial. public controversy about the identity of an artist responsible for a particular work, and the advertiser has Headnotes/Summary no personal knowledge of the artist's identity, it is appropriate to take account of the First Amendment significance of the work itself in assessing whether the Summary content of the statement was purely commercial. Under
brendan healey Page 5 of 18 26 Cal. App. 5th 759, *760; 237 Cal. Rptr. 3d 487, **487; 2018 Cal. App. LEXIS 767, ***1 those circumstances, the marketers' statements about an issue of public interest, and any other conduct in the identity of the artist were not simply commercial furtherance of the exercise of the constitutional right of speech but were subject to full First Amendment petition or the constitutional right of free speech in protection. They were therefore outside the scope of an connection with a public issue or an issue of public actionable unfair competition or consumer protection interest (§ 425.16, subd. (e)(3) & (4)). claim. As a matter of law, plaintiff therefore could not show a likelihood that she would prevail on her claims under prong two of the anti-SLAPP procedure, and her [*761] CA(3)[ ] (3) claims against the marketers had to be struck. (Opinion by Lui, P. J., with Chavez and Hoffstadt, JJ., Pleading § 93—Anti-SLAPP Motions—Exceptions— concurring.) Commercial Speech.
Headnotes In 2003, the Legislature enacted Code Civ. Proc., § 425.17, to curb abuse of Code Civ. Proc., § 425.16, CALIFORNIA OFFICIAL REPORTS HEADNOTES which had undermined the exercise of the constitutional rights of freedom of speech and petition for the redress of grievances, contrary to the purpose and intent of § CA(1)[ ] (1) 425.16 (§ 425.17, subd. (a)). Section 425.17 seeks to accomplish that goal by expressly excluding several Pleading § 93—Anti-SLAPP Motions—Two-step categories of claims from the scope of § 425.16. Section Process. 425.17, subd. (c)(1) & (2), establishes such an exclusion for claims concerning commercial speech, providing that Code Civ. Proc., § 425.16, subd. (b)(1), provides for a § 425.16 does not apply to any cause of action brought special motion to strike when a plaintiff asserts claims against a person primarily engaged in the business of against a person arising from any act of that person in selling or leasing goods or services if certain conditions furtherance of the person's right of petition or free exist, including that: (1) the statement at issue consists speech under the United States Constitution or the of representations of fact about that person's or a California Constitution in connection with a public issue. business competitor's business operations, goods, or Such claims must be struck unless the court determines services that was made to promote commercial that the plaintiff has established that there is a transactions or was made in the course of delivering the probability that the plaintiff will prevail on the claim. person's goods or services, and (2) the intended Thus, ruling on an anti-SLAPP motion involves a two- audience is an actual or potential customer or a person step procedure. First, the moving defendant must show likely to influence a customer. Section 425.17 contains that the challenged claims arise from protected activity. certain specifically defined exceptions. Second, if the defendant makes such a showing, the burden shifts to the plaintiff to demonstrate that each challenged claim based on protected activity is legally CA(4)[ ] (4) sufficient and factually substantiated. Without resolving evidentiary conflicts, the court determines whether the Pleading § 93—Anti-SLAPP Motions—Exceptions— plaintiff's showing, if accepted by the trier of fact, would Commercial Speech—Musical Work—Advertising. be sufficient to sustain a favorable judgment. Code Civ. Proc., § 425.17, subd. (d)(2), provides that the creation, dissemination, exhibition, advertisement, or CA(2)[ ] (2) other similar promotion of any dramatic, literary, musical, political, or artistic work is outside the scope of Pleading § 93—Anti-SLAPP Motions—Protected the commercial speech provision in § 425.17, subd. (c). Activity—Issue of Public Interest. The exception in § 425.17, subd. (d)(2), means that the promotion of a musical work is not included within the Code Civ. Proc., § 425.16, subd. (e), defines the categories of conduct that the Legislature specifically categories of acts that are in furtherance of a person's stated were not subject to anti-SLAPP relief. However, right of petition or free speech. Those categories include the Legislature's decision to exclude the advertising of any written or oral statement or writing made in a place musical works from § 425.17 does not mean that it also open to the public or a public forum in connection with intended to afford anti-SLAPP protection to such
brendan healey Page 6 of 18 26 Cal. App. 5th 759, *761; 237 Cal. Rptr. 3d 487, **487; 2018 Cal. App. LEXIS 767, ***1 conduct in every circumstance, regardless of the deception. A court faced with such a decision should requirements of Code Civ. Proc., § 425.16. consider three elements: the speaker, the intended audience, and the content of the message.
CA(5)[ ] (5) CA(9)[ ] (9) Pleading § 93—Anti-SLAPP Motions—Exceptions— Commercial Speech—Music Sellers. Constitutional Law § 55.2—First Amendment—Freedom of Speech—Commercial Speech—False or Misleading. The exception of Code Civ. Proc., § 425.17, subd. (d)(2), does not provide anti-SLAPP protection to sellers At least in relation to regulations aimed at protecting of music in every context. consumers from false and misleading promotional practices, commercial speech must consist of factual representations about the business operations, CA(6)[ ] (6) products, or services of the speaker (or the individual or company on whose behalf the speaker is speaking), Pleading § 93—Anti-SLAPP Motions—Issue of Public made for the purpose of promoting sales of, or other Interest—Entertainers and Other Celebrities. commercial transactions in, the speaker's products or services. This requirement relates directly to the Public interest in the life and work of entertainers and reasons for denying First Amendment protection to false other celebrities can create an issue of public interest or misleading commercial speech. The United States for purposes of Code Civ. Proc., § 425.16, subd. (e). Supreme Court has stated that false or misleading There is a public interest that attaches to people who, commercial speech may be prohibited because the truth by their accomplishments, mode of living, professional of commercial speech is more easily verifiable by its standing, or calling, create a legitimate and [*762] disseminator and because commercial speech, being widespread attention to their activities. Facts concerning motivated by the desire for economic profit, is less likely the creation of works of art and entertainment can also than noncommercial speech to be chilled by proper be an issue of public interest for purposes of the anti- regulation. SLAPP statute.
CA(10)[ ] (10) CA(7)[ ] (7) Constitutional Law § 55.2—First Amendment—Freedom Constitutional Law § 55.2—First Amendment—Freedom of Speech—Commercial Speech—Economic of Speech—Commercial Speech. Motivation.
Restrictions on purely commercial speech are subject to Economic motivation is only one of the factors, a lesser level of scrutiny than are other constitutionally insufficient in itself, that may indicate that speech is safeguarded forms of expression. Moreover, commercial. Whether speech is commercial or commercial speech that is false or misleading is not noncommercial should take account of the reasons for entitled to First Amendment protection and may be affording commercial speech less constitutional prohibited entirely. protection.
CA(8)[ ] (8) [*763] CA(11)[ ] (11)
Constitutional Law § 55.2—First Amendment—Freedom Constitutional Law § 55.2—First Amendment—Freedom of Speech—Commercial Speech—Test. of Speech—Commercial Speech—Advertising—Identity of Artist—Public Controversy. The California Supreme Court has crafted a limited- purpose test for identifying commercial speech. The test Advertising is not necessarily excluded from the applies when a court must decide whether particular category of commercial speech simply because it speech may be subjected to laws aimed at preventing promotes a product that is itself subject to full First false advertising or other forms of commercial Amendment protection. There is no apparent reason
brendan healey Page 7 of 18 26 Cal. App. 5th 759, *763; 237 Cal. Rptr. 3d 487, **487; 2018 Cal. App. LEXIS 767, ***1 why a statement falsely stating that a particular song is Judges: Opinion by Lui, P. J., with Chavez and included in an album should be subject to full First Hoffstadt, JJ., concurring. Amendment protection simply because the statement promotes the sale of music. However, where a Opinion by: Lui, P. J. challenged statement in an advertisement relates to a public controversy about the identity of an artist Opinion responsible for a particular work, and the advertiser has no personal knowledge of the artist's identity, it is appropriate to take account of the First Amendment [*764] significance of the work itself in assessing whether the [**490] LUI, P. J.—Defendants and appellants Sony content of the statement was purely commercial. Music Entertainment (Sony), John Branca, as coexecutor of the estate of Michael J. Jackson (the Estate), and MJJ Productions, Inc. (collectively CA(12)[ ] (12) Appellants), appeal from an order of the superior court partially denying their motion to strike under the anti- Constitutional Law § 55.2—First Amendment—Freedom 1 of Speech—Commercial Speech. SLAPP statute. (Code Civ. Proc., § 425.16.) Plaintiff and respondent Vera Serova (Serova) filed this putative No single factor that the United States Supreme Court class action against Appellants and other defendants for has identified as a marker of commercial speech is marketing a posthumous Michael Jackson album sufficient in itself to classify particular speech as entitled simply Michael. Serova claims that the album commercial, nor must each factor necessarily be cover and a promotional video misleadingly represented present in order for speech to be commercial. that Jackson was the lead singer on each of the 10 vocal tracks on the album, when in fact he was not the lead singer on [***2] three of those tracks. CA(13)[ ] (13) Serova alleged claims under the unfair competition law Pleading § 93—Anti-SLAPP Motions—Issue of Public (UCL; Bus.& Prof. Code, § 17200 et seq.) and the Interest—Noncommercial Speech—Identity of Singer— Consumers Legal Remedies Act (CLRA; Civ. Code, § Album Cover and Promotional Video. 1750 et seq.). Serova also brought a fraud claim against defendants Edward Joseph Cascio, James Victor Porte, Appellants' challenged statements about the identity of and Cascio's production company, Angelikson the lead singer on an album's cover and in the Productions, LLC (collectively, the Cascio Defendants), promotional video for the album were noncommercial alleging that those defendants knowingly speech outside the scope of the consumer protection misrepresented to Appellants that Jackson was the lead claims that respondent asserted against appellants. As singer on the three tracks at issue (the Disputed a matter of law, respondent therefore could not show a Tracks).2 likelihood that she would prevail on her claims under prong two of the anti-SLAPP procedure, and her claims Appellants brought an anti-SLAPP motion, which the against appellants had to be struck. trial court granted in part but denied with respect to the two communications at issue in this appeal. The trial [Cal. Forms of Pleading and Practice (2018) ch. 376, court concluded that the album cover, including Motions to Strike: Anti-SLAPP, § 376.43; 1 Kiesel et al., statements about the contents of the album, and a Matthew Bender Practice Guide: Cal. Pretrial Civil promotional video for the album were commercial Procedure (2018) § 13.06.] speech that was subject to regulation under the UCL
Counsel: Katten Muchin Rosenman, Zia F. Modabber, Andrew J. Demko, Charlotte S. Wasserstein; Kinsella Weitzman Iser Kump & Aldisert, Howard Weitzman and 1 Subsequent undesignated statutory references are to the Suann C. Macisaac for Defendants and Appellants. Code of Civil Procedure. “SLAPP” is an acronym for “[s]trategic lawsuit against public participation.” (Briggs v. Moss Bollinger, Ari E. Moss and Jeremy F. Bollinger for Eden Council for Hope & Opportunity (1999) 19 Cal.4th 1106, Plaintiff and Respondent. 1109, fn. 1 [81 Cal. Rptr. 2d 471, 969 P.2d 564].) 2 The Cascio Defendants are not parties to this appeal.
brendan healey Page 8 of 18 26 Cal. App. 5th 759, *764; 237 Cal. Rptr. 3d 487, **490; 2018 Cal. App. LEXIS 767, ***2 and the CLRA. each challenged claim based on protected activity is legally sufficient and factually substantiated.” (Baral, at We reverse this portion of the trial court's order. We p. 396.) Without resolving evidentiary conflicts, the court conclude that the challenged representation—that determines “whether the plaintiff's showing, if accepted Michael Jackson was the lead singer on the three by the trier of fact, would be sufficient to sustain a Disputed Tracks—did not simply promote sale of the favorable judgment.” (Ibid.) album, but also stated a position on a disputed issue of public interest. Before the album was released, certain HN2[ ] CA(2)[ ] (2) Section 425.16, subdivision (e) Jackson family members and [***3] others publicly defines the categories of acts that are in “‘furtherance of claimed that Jackson was not the lead singer on the a person's right of petition or free speech.’” Those Disputed Tracks. Appellants disputed this claim. An categories include “any written or oral statement or attorney acting for the Estate released a public writing made in a place open to the public or a public statement outlining the steps Appellants had taken to forum in connection with an issue of public interest,” and verify the authenticity of the tracks by consulting with “any other conduct in furtherance of the exercise of the experts and persons who were familiar with Jackson's constitutional right of petition or the constitutional right of voice and recordings. free speech in connection with [***5] a public issue or [*765] an issue of public interest.” (§ 425.16, subd. (e)(3) & (4).) Thus, the identity of the artist on the three Disputed Tracks was a controversial issue of interest to Michael HN3[ ] CA(3)[ ] (3) In 2003 the Legislature enacted Jackson fans and others who care about his musical section 425.17 to curb “a disturbing abuse of Section legacy. The identity of the lead singer was also integral 425.16 … which has undermined the exercise of the to the artistic significance of the songs themselves. constitutional rights of freedom of speech and petition Under these circumstances, Appellants' statements for the redress of [*766] grievances, contrary to the about the identity of the artist were not simply purpose and intent of Section 425.16.” (§ 425.17, subd. commercial speech but were subject to full First (a).) Section 425.17 seeks to accomplish that goal by Amendment protection. They are therefore outside the expressly excluding several categories of claims from scope of an actionable [**491] unfair competition or the scope of section 425.16. consumer protection claim in this case. Section 425.17, subdivision (c) establishes such an exclusion for claims concerning commercial speech. BACKGROUND That subdivision provides that section 425.16 does not 1. The Anti-SLAPP Procedure apply to “any cause of action brought against a person primarily engaged in the business of selling or leasing HN1[ ] CA(1)[ ] (1) Section 425.16 provides for a goods or services” if certain conditions exist, including “special motion to strike” when a plaintiff asserts claims that: (1) the statement at issue “consists of against a person “arising from any act of that person in representations of fact about that person's or a business furtherance of the person's right of petition or free competitor's business operations, goods, or services” speech under the United States Constitution or the that was made to promote commercial transactions or California Constitution in connection [***4] with a public was made “in the course of delivering the person's issue.” (§ 425.16, subd. (b)(1).) Such claims must be goods or services”; and (2) the intended audience is an stricken “unless the court determines that the plaintiff actual or potential customer or a person likely to has established that there is a probability that the influence a customer. (§ 425.17, subd. (c)(1) & (2).) plaintiff will prevail on the claim.” (Ibid.) Section 425.17 contains certain specifically defined Thus, ruling on an anti-SLAPP motion involves a two- exceptions. One of those exceptions states that the step procedure. First, the moving defendant must show commercial speech provision in [***6] section 425.17, that the challenged claims arise from protected activity. subdivision (c) does not apply to “[a]ny action against (Baral v. Schnitt (2016) 1 Cal.5th 376, 396 [205 Cal. any person or entity based upon the creation, Rptr. 3d 475, 376 P.3d 604]; Rusheen v. Cohen (2006) dissemination, exhibition, advertisement, or other similar 37 Cal.4th 1048, 1056 [39 Cal. Rptr. 3d 516, 128 P.3d promotion of any dramatic, literary, musical, political, or 713].) Second, if the defendant makes such a showing, artistic work.” (§ 425.17, subd. (d)(2).) the “burden shifts to the plaintiff to demonstrate that
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were sung by Michael Jackson.” [**492] 2. Serova's Allegations3 The album cover for Michael (Album Cover) included a The album Michael was released on or about December statement that “‘[t]his album contains 9 previously 14, 2010, about 18 months after Michael Jackson's unreleased vocal tracks performed by Michael death. Sony released the album in conjunction with the Jackson.’”4 A video released [***8] before the album Estate. (the Promotional Video) described Michael as “a brand new album from the greatest artist of all time.” While The album contained 10 songs. Serova alleges that the appearing on the Oprah Winfrey show, Cascio also three songs on the Disputed Tracks—“Breaking News,” stated that Jackson performed the lead vocals on the “Monster,” and “Keep Your Head Up” (the Songs)— Disputed Tracks. have been controversial “[s]ince Michael's inception.” The Complaint alleges that the lead singer on the Serova claims that the Cascio Defendants recorded the Disputed Tracks actually sounds like the “soundalike” initial versions of the Disputed Tracks and had singer mentioned in the Weitzman Statement. Serova “exclusive knowledge” that the lead vocals for the Songs claims she discovered evidence indicating that the lead were actually performed by a singer other than Michael singer on the Disputed Tracks was not Michael Jackson. Jackson. Serova alleges that Cascio then falsely Among other things, she claims that: (1) Cascio did not represented to Appellants that Michael Jackson was the produce any “demos, outtakes, alternate takes, and singer. multi-track recordings” when requested; (2) Jackson never mentioned that he had recorded the Songs; (3) Prior to Michael's release, various members of Michael the Songs did not appear on a list of ongoing or planned Jackson's family and others familiar with his recordings projects found in Michael Jackson's house after his disputed whether he was the lead [*767] singer on the death; and [**493] (4) various persons that the Disputed Tracks. In response to those concerns, Sony Weitzman Statement said had confirmed that the lead and the Estate (through Attorney Howard Weitzman) singer on the Disputed Tracks was Jackson in fact had both publicly [***7] issued statements confirming their doubts about that conclusion. belief that Jackson was the singer. Serova also hired an audio expert who prepared a In his statement (the Weitzman Statement), Weitzman report concluding that Michael Jackson “very likely did explained that many persons who were familiar with not sing” the lead vocals on the Disputed Tracks. The Jackson's work had confirmed that he was the lead report was peer-reviewed by another [***9] expert who singer on the Disputed Tracks, including former concluded that the study's “methodologies and producers, engineers, performers, and directors who conclusions were reasonable.” had worked with Jackson. He stated that the Estate and [*768] Sony had also retained forensic musicologists who examined the Disputed Tracks and concluded that the The Complaint alleges claims against all defendants lead singer was actually Jackson. He also stated that he under the CLRA and UCL, and asserts a fraud claim had spoken to the singer whom some persons had against the Cascio Defendants only. The Complaint “wrongfully alleged was a ‘soundalike’ singer that was claims that thousands of putative class members hired to sing” on the Disputed Tracks, and that the purchased Michael and lost “money or property” as a singer had denied any involvement with the project. result of the alleged misleading representations. Weitzman explained that, “given the overwhelming objective evidence resulting from the exhaustive 3. Appellants' Anti-SLAPP Motion investigations,” Sony decided to include the Disputed Appellants and the Cascio Defendants filed motions to Tracks on the album “because they believed, without strike under section 425.16. Appellants argued that reservation, that the lead vocal[s] on all of those tracks Serova's claims arose from protected speech under prong one of the anti-SLAPP procedure. With respect to 3 As explained below, the trial court ruled on Appellant's anti- prong two, Appellants argued that Serova could not SLAPP motion based upon the allegations in Serova's first succeed on her claims against them because their amended complaint (Complaint) and a stipulation that established certain background facts for purposes of the motion only. Thus, the relevant facts are primarily those 4 One of the tracks on the album had been previously alleged in the Complaint. recorded.
brendan healey Page 10 of 18 26 Cal. App. 5th 759, *768; 237 Cal. Rptr. 3d 487, **493; 2018 Cal. App. LEXIS 767, ***9 challenged statements about the identity of the lead [**494] However, the court concluded that the singer on the Disputed Tracks were noncommercial challenged statements on the Album Cover and in the speech as a matter of law and no reasonable consumer Promotional Video were advertisements constituting could find the statements misleading. commercial speech. The court rejected the defendants' argument that this speech was “inextricably intertwined” To permit a ruling on the anti-SLAPP motions in with the Songs themselves under Riley v. National advance of discovery, the parties stipulated that, “solely Federation of Blind (1988) 487 U.S. 781, 796 [101 for purposes of this determination on the Motions,” L.Ed.2d 669, 108 S.Ct. 2667] (Riley). The court Michael Jackson did not sing the lead vocals on the reasoned that “[n]othing in this case prevented three Disputed Tracks (the Stipulation). The parties also Defendants from giving the album a different title and stipulated to the authenticity [***10] of copies of the look or from electing not to attest to the authenticity of Weitzman Statement, the Album Cover, and the the recordings on the cover or in [***12] a commercial.” Promotional Video. The court also found that, assuming (pursuant to the The trial court granted the defendants' motions with parties' Stipulation) that Michael Jackson was not respect to allegations concerning the Weitzman actually the lead singer on the Disputed Tracks, both the Statement and Cascio's statement on the Oprah Winfrey Album Cover and the Promotional Video were likely to show, but denied the motions with respect to allegations deceive a reasonable consumer. The court concluded concerning statements on the Album Cover and in the that images of Michael Jackson and the challenged Promotional Video. statements on the Album Cover, along with the lack of any attribution to others, conveyed the message that Under prong one of the anti-SLAPP procedure, the trial Jackson was the lead singer on the Disputed Tracks. court ruled that all the statements addressed in the The court also concluded that a reasonable consumer defendants' motions arose from conduct in furtherance would believe that Michael Jackson was the “artist” of the defendants' right of free speech concerning an referenced in the statement on the Promotional Video issue of public interest. The court concluded that the that Michael was “a brand new album from the greatest Weitzman Statement was “made in a public forum about artist of all time.” a matter of public interest.” The court reasoned that the Weitzman Statement “responded to a matter of public concern, i.e., the authenticity of certain recordings DISCUSSION released posthumously and claimed to have been written and recorded by a pop superstar.” Similarly, the Appellants challenge the trial court's rulings that: (1) the court concluded that Cascio's statement on the Oprah Promotional Video and the Album Cover were Winfrey show addressed “the same controversy.” commercial speech that may be subject to claims under the UCL and CLRA; and (2) the representations in those In contrast, the trial court concluded that the Album materials were likely to deceive a reasonable consumer. Cover and the Promotional Video were simply Serova argues that those rulings were correct, and also promotional materials that “did not speak to the asserts as an alternative ground for affirmance that her controversy [***11] surrounding the performance [or] claims do not “arise from” protected free speech activity address or refute” the allegations concerning the under prong one of the anti-SLAPP [***13] procedure. Disputed Tracks. The court nevertheless found that (See Klem v. Access Ins. Co. (2017) 17 Cal.App.5th statements on the Album Cover and in the Promotional 595, 609 [225 Cal. Rptr. 3d 711] [“A prevailing Video arose from [*769] protected conduct because party [*770] on an anti-SLAPP motion need not file a “Michael Jackson's professional standing and cross-appeal to preserve his disagreement with the trial accomplishments created legitimate and widespread court's reasoning”].)5 attention to the release of a new album.”
With respect to prong two, the trial court found that the Weitzman Statement and Cascio's statements on the 5 Oprah Winfrey show were noncommercial speech. The Serova did not appeal from the trial court's ruling granting the defendants' anti-SLAPP motion with respect to the Weitzman court concluded that those statements were not made to e-mail and Cascio's statement during the Oprah Winfrey promote or sell the album, but addressed “a controversy interview. Thus, the only claims at issue in this appeal concern regarding the veracity of the claims surrounding the the representations in the Promotional Video and the Album release of the album.” Cover.
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HN4[ ] We apply a de novo standard of review to the subject to the anti-SLAPP law without any showing that trial court's rulings on the anti-SLAPP motion. (Soukup such speech meets the definition of “protected” conduct v. Law Offices of Herbert Hafif (2006) 39 Cal.4th 260, under section 425.16, subdivision (e). 269, fn. 3 [46 Cal. Rptr. 3d 638, 139 P.3d 30].) The interpretation that Appellants suggest would also be 1. Serova's Claims Concerning the Promotional Video inconsistent [***15] with the definitions of protected and the Album Cover Arise from Appellants' Right of conduct under section 425.16. Section 425.16, Free Speech Under the United States and California subdivision (e)(3) and (4) each require that protected Constitutions conduct must have some connection to a “public issue” or an “issue of public interest.” Appellants' interpretation Appellants claim the trial court correctly concluded that of section 425.17, subdivision (d)(2) ignores that their challenged conduct arose from protected speech requirement. For example, an action challenging an concerning an issue of public interest, but also suggest advertisement falsely claiming that a musical album that we need not reach that issue. Appellants argue that contains a particular song would be an action “based the Legislature's decision to create an exception for the upon the … advertisement” of a musical work. (§ marketing of musical works under section 425.17, 425.17, subd. (d)(2).) Appellants do not provide any subdivision (d)(2) shows a legislative intent that such reason to believe that the Legislature intended to speech “is eligible for anti-SLAPP protection,” which is provide automatic anti-SLAPP protection to such a “essentially dispositive of step one of the anti-SLAPP mundane commercial misrepresentation simply because analysis.” We first consider that argument. the statement was made in connection with the advertisement of a musical work. (Cf. Rezec v. Sony a. The significance of the Legislature's exclusion of Pictures Entertainment, Inc. (2004) 116 Cal.App.4th music advertisements from the scope of section 425.17 135, 143–144 [10 Cal. Rptr. 3d 333] (Rezec) [advertisement referring to a purported movie CA(4)[ ] (4) As mentioned, HN5[ ] section 425.17, endorsement by a fictional music critic did not concern subdivision (d)(2) provides that the “creation, [**495] an issue of public interest just “because the public is dissemination, exhibition, advertisement, or other similar interested in films”].) promotion of any dramatic, literary, musical, political, or artistic work” [***14] is outside the scope of the The court in Dyer v. Childress (2007) 147 Cal.App.4th commercial speech provision in section 425.17, 1273 [55 Cal. Rptr. 3d 544] rejected a similar argument. subdivision (c). The exception in section 425.17, After reviewing the legislative history concerning section subdivision (d)(2) certainly means that the promotion of 425.17, subdivision (d)(2), the court rejected the a musical work is not included within the categories of defendant's claim that “by expressly exempting motion conduct that the Legislature specifically stated were not pictures from the anti-SLAPP limitations imposed in subject to anti-SLAPP relief. However, the Legislature's section 425.17, subdivisions (b) and (c), the Legislature decision to exclude the advertising of musical works acknowledged that motion pictures are more deserving from section 425.17 does not mean that it also intended of protection than [***16] other forms of expression not to afford anti-SLAPP protection to such conduct in every enumerated.” (Id. at pp. 1283–1284.) The court circumstance, regardless of the requirements of section concluded that “[t]he exclusion of motion pictures from 425.16. the exemptions to the limitations set forth in section 425.17, subdivisions (b) and (c) means only that anti- Such a conclusion would be inconsistent with the SLAPP motions remain available to defendants who are Legislature's stated intent. The Legislature specifically creators and distributors of motion pictures … . [¶] The stated that it enacted section 425.17 to curb abuses of exception of section 425.17, subdivision (d)(2) does not the anti-SLAPP law that were “contrary to the purpose eliminate the need to show significant public interest in and intent of Section 425.16.” (§ 425.17, subd. (a).) That the conduct at the heart of the plaintiff's complaint or statement suggests that our Legislature was concerned expand the scope of the anti-SLAPP law to provide that the courts were granting too broad a [*771] reading protection to motion [**496] picture defendants in to what constitutes “protected” conduct under section every context.” (Id. at p. 1284.) 425.16, subdivision (e). Appellants' argument, if accepted, would commit that very same sin because it CA(5)[ ] (5) Similarly, HN6[ ] the exception of section would require courts to treat the types of speech 425.17, subdivision (d)(2) does not provide anti-SLAPP delineated in section 425.17, subdivision (d)(2) as protection to sellers of music in every context. We
brendan healey Page 12 of 18 26 Cal. App. 5th 759, *771; 237 Cal. Rptr. 3d 487, **496; 2018 Cal. App. LEXIS 767, ***16 therefore must consider whether Appellants' challenged Cal.App.4th 941 [59 Cal. Rptr. 3d 48], the plaintiff statements were made “in connection with a public challenged the omission of his name from the credits issue or an issue of public interest.” (§ 425.16, subd. listed for the movie “My Big Fat Greek Wedding” (IFC (e).) Films 2002) on a widely visited website. (Id. at p. 944.) [*772] The court concluded that the movie “was a topic of widespread public interest,” and the website was a b. The challenged promotional statements in this case public forum. (Id. at pp. 949–950.) Accordingly, the Serova claims that Appellants' statements about the plaintiff's action challenging the listings was “within the identity of the lead singer on the Disputed Tracks were ambit of section 425.16, subdivision (e)(3) and (4).” (Id. simply claims about the contents of a commercial at p. 950; see also Tamkin v. CBS Broadcasting, Inc. product that Appellants offered for sale. We disagree (2011) 193 Cal.App.4th 133, 143–144 [122 Cal. Rptr. that the representation at issue was so limited. Serova's 3d [*773] 264] [there was a “public interest in the own allegations describe the public controversy writing, casting and broadcasting” of a television concerning the Disputed Tracks. [***17] Moreover, a episode for purposes of the anti-SLAPP statute].) significant body of case law holds that prominent Similarly, here, there was significant interest in the entertainers and their accomplishments can be the release of the posthumous album Michael. Whether or subjects of public interest for purposes of the anti- not the lead singer on the Disputed Tracks was actually SLAPP statute. [**497] Michael Jackson was therefore also a matter of The Complaint alleges that, “[b]efore Michael's release, significant public interest, as confirmed by Serova's own numerous people familiar with Michael Jackson's voice allegations. disputed the authenticity” of the Disputed Tracks. As discussed above, Sony and the Estate released public This public controversy distinguishes this case from statements in response, including the detailed cases that Serova cites concerning allegedly misleading Weitzman Statement. Serova further alleges that, descriptions of a particular commercial product or “[s]ince Michael's inception, controversy has surrounded service. (See Consumer Justice Center v. Trimedica three of the album's ten songs.” International, Inc. (2003) 107 Cal.App.4th 595, 599, 601 [132 Cal. Rptr. 2d 191] [claims about a pill [***19] for HN7[ ] CA(6)[ ] (6) Public interest in the life and work breast enlargement]; Nagel v. Twin Laboratories, Inc. of entertainers and other celebrities can create an “issue (2003) 109 Cal.App.4th 39, 43–46 [134 Cal. Rptr. 2d of public interest” for purposes of section 425.16, 420] [list of ingredients on labels for nutritional and subdivision (e). “‘“[T]here is a public interest which dietary supplements]; Scott v. Metabolife Internat., Inc. attaches to people who, by their accomplishments, (2004) 115 Cal.App.4th 404, 423 [9 Cal. Rptr. 3d 242] mode of living, professional standing or calling, create a [claims about the safety and efficacy of a particular legitimate and widespread attention to their activities.”’” weight loss product]; L.A. Taxi Cooperative, Inc. v. The (Stewart v. Rolling Stone LLC (2010) 181 Cal.App.4th Independent Taxi Owners Assn. of Los Angeles (2015) 664, 677–678 [105 Cal. Rptr. 3d 98] (Stewart), quoting 239 Cal.App.4th 918, 921, 927–928 [191 Cal. Rptr. 3d Eastwood v. Superior Court (1983) 149 Cal.App.3d 409, 579] [alleged misleading advertisements concerning 422 [198 Cal. Rptr. 342]; see also No Doubt v. Activision contact information for companies providing taxi Publishing, Inc. (2011) 192 Cal.App.4th 1018, 1027 [122 services]; Jewett v. Capital One Bank (2003) 113 Cal. Rptr. 3d 397] [video game distributor's use of band Cal.App.4th 805, 814–816 [6 Cal. Rptr. 3d 675] [alleged members' likenesses in a video game was a “matter of false statements in credit card solicitations].) public interest because of the widespread fame” of the band]; Hall v. Time Warner, Inc. (2007) 153 Cal.App.4th The representations at issue here concerned the body 1337, 1347 [63 Cal. Rptr. 3d 798] [Marlon Brando's of work of a well-known artist and an album containing decisions concerning the distribution of his assets was his songs that generated significant public attention. We an issue of public interest].) It is beyond [***18] dispute therefore conclude that the issue was one of “public that Michael Jackson was a famous entertainer. interest” for purposes of section 425.16, subdivision (e)(3) and (4). Facts concerning the creation of works of art and 2. The Challenged Statements Were Noncommercial entertainment can also be an issue of public interest for Speech Outside the Scope of Serova's Consumer purposes of the anti-SLAPP statute. For example, in Protection Claims Kronemyer v. Internet Movie Database Inc. (2007) 150
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Appellants argue that Serova cannot show a probability 825.) Following that decision, courts have had to of success on her UCL and CLRA claims under prong grapple with the distinction between expressive two of the anti-SLAPP analysis because those statutes activities that are merely commercial in nature and only apply to commercial speech. They claim that their those that are subject to more stringent First challenged statements about the lead singer on the Amendment protection. Disputed Tracks were not commercial speech, or, if they were, that those statements were inextricably In Bolger, supra, 463 U.S. at pages 62, 66–68, the court intertwined with the protected contents of the Songs held that materials distributed by a manufacturer of themselves. contraceptives, including both promotional flyers and informational pamphlets about contraceptives, were Appellants argue that the consumer protection claims commercial speech. Most of the mailings at issue fell that Serova asserts [***20] against them apply only to “within the core notion of commercial speech—‘speech commercial speech. A number of cases support that which does “no more than propose a commercial assertion. (See Kasky v. Nike, Inc. (2002) 27 Cal.4th transaction.”’” (Id. at p. 66, quoting VA. Pharmacy Bd. v. 939, 952 [119 Cal. Rptr. 2d 296, 45 P.3d 243] (Kasky) VA. Consumer Council (1976) 425 U.S. 748, 762 [48 [identifying criteria for determining whether speech may L.Ed.2d 346, 96 S.Ct. 1817] (Virginia Pharmacy).) constitutionally be regulated as commercial speech However, the informational pamphlets required further under California's false advertising laws]; Rezec, supra, analysis. The court identified three factors indicating that 116 Cal.App.4th at [*774] p. 140 [California's consumer the pamphlets were commercial speech: (1) the protection laws, like the unfair competition law, govern pamphlets were “conceded to be advertisements”; (2) only commercial speech]; Keimer v. Buena Vista Books, they referred to a specific product; and (3) the defendant Inc. (1999) 75 Cal.App.4th 1220, 1231 [89 Cal. Rptr. 2d had an economic motivation for mailing them. (Bolger, 781] (Keimer) [Bus. & Prof. Code, §§ 17200 et seq., at pp. 66–67.) The court stated that none of these 17500 et seq. do not “seek to restrict noncommercial factors alone was sufficient to show that the speech speech in any manner”]; O'Connor v. Superior Court was [*775] commercial, but “[t]he combination of all (1986) 177 Cal.App.3d 1013, 1019 [223 Cal. Rptr. 357].) these characteristics … provides strong support” for Serova does not dispute this. Moreover, she did not the [***22] decision that the informational pamphlets argue below and does not argue on appeal that were commercial speech. (Id. at p. 67.) Appellants' challenged statements are actionable even if they are noncommercial speech. Thus, if Appellant's CA(8)[ ] (8) In Kasky, supra, 27 Cal.4th 939, HN9[ ] challenged statements are noncommercial speech our Supreme Court considered the factors the court Serova's claims against them must be stricken. identified in Bolger, supra, 463 U.S. 60, along with other relevant United States Supreme Court precedent and a. Identifying commercial speech crafted a “limited-purpose” test for identifying commercial speech. The test applies when, as here, “a HN8[ ] CA(7)[ ] (7) Restrictions on purely commercial court must decide whether particular speech may be speech are subject to a lesser level of scrutiny than are subjected to laws aimed at preventing false advertising “‘other constitutionally safeguarded forms of or other forms of commercial deception.” (Kasky, at p. expression.’” (Kasky, supra, 27 Cal.4th at p. 952, 960.) The court directed that a court faced with such a quoting Bolger v. Youngs Drug Products Corp. (1983) decision should consider “three elements: the speaker, 463 U.S. 60, 64–65 [77 L.Ed.2d 469 103 S.Ct. 2875] the intended audience, and the content of the (Bolger).) [**498] Moreover, “commercial speech that message.” (Ibid.) is false or misleading is not entitled to First Amendment protection and ‘may be prohibited entirely.’” (Kasky, at p. The court in Kasky applied those factors to the 953, quoting In re R. M. J. (1982) 455 U.S. 191, 203 [71 allegations that the defendant, Nike, made false L.Ed.2d 64, 102 S.Ct. 929].) statements about labor practices in its own business operations. (Kasky, supra, 27 Cal.4th at pp. 969–970.) The United States Supreme Court first held that The court held that these alleged statements constituted commercial speech is entitled to some constitutional commercial speech that was actionable under protection in [***21] Bigelow v. Virginia (1975) 421 U.S. California's consumer protection laws. (Ibid.) 809 [44 L.Ed.2d 600, 95 S.Ct. 2222]. In Bigelow, the court rejected the proposition that “advertising, as such, b. Appellants' challenged statements was entitled to no First Amendment protection.” (Id. at p. Applying the three-factor test for identifying commercial
brendan healey Page 14 of 18 26 Cal. App. 5th 759, *775; 237 Cal. Rptr. 3d 487, **498; 2018 Cal. App. LEXIS 767, ***22 speech described in Kasky, we conclude that court concluded that “Nike was in a position to readily Appellants' challenged representations were verify the truth of any factual assertions it made on noncommercial speech. these topics,” and that commercial regulation was “unlikely to deter Nike from speaking truthfully or at all The first two factors—the speaker and the intended about the conditions in its factories.” (Ibid.) audience—both [***23] suggest a commercial purpose. Appellants were “engaged in commerce” in making Here, Appellants' representations about the identity of representations on the Album Cover and on the the lead singer on the Disputed [***25] Tracks did not Promotional Video to sell the album. (Kasky, supra, 27 concern their own business operations or a fact of which Cal.4th at p. 963.) [**499] And the audience for those they had personal knowledge. Serova alleges that the representations was potential purchasers of the album. Cascio Defendants, not Appellants, “jointly created, (Id. at p. 964.) produced, and recorded the initial versions” of the Disputed Tracks. She claims that the “lead vocals on However, the third factor—the content of the challenged these songs were performed by another singer under speech—shows that the speech at issue here is the direction, and with the knowledge, cooperation, critically different from the type of speech that may be participation, and substantial assistance of the Cascio regulated as purely commercial speech under Kasky. Defendants.” And she further alleges that the Cascio That is so for two reasons. First, Appellants' challenged Defendants had “exclusive knowledge of the fact that statements concerned a publicly disputed issue about Jackson did not perform the songs.” (Italics added.)6 which they had no personal knowledge. Second, the statements were directly connected to music that itself As discussed above, Appellants' challenged statements enjoyed full protection under the First Amendment. in the Promotional Video [**500] and on the Album Cover concerned an issue of public interest and i. Personal knowledge debate—whether the three songs on the Disputed Tracks should be included in Michael Jackson's body of CA(9)[ ] (9) The court in Kasky explained that, HN10[ work. Appellants did not record the songs and, [*777] ] “at least in relation to regulations aimed at protecting according to Serova's allegations, were themselves consumers from false and misleading promotional deceived about the identity of the singer. Appellants' practices, commercial speech must consist of factual statements therefore lacked the critical element of representations about the [*776] business operations, personal knowledge under the Kasky standard. products, or services of the speaker (or the individual or company on whose behalf the speaker is speaking), As the trial court correctly concluded, Appellants' made for the purpose of promoting sales of, or other statements directly addressing the public commercial transactions in, the speaker's products or controversy [***26] about the identity of the singer— services.” [***24] (Kasky, supra, 27 Cal.4th at p. 962.) including the Weitzman Statement—were This requirement relates directly to the reasons for noncommercial. The challenged statements on the denying First Amendment protection to false or Album Cover and the Promotional Video also staked out misleading commercial speech. As the court explained, a position in that controversy by identifying the singer as the United States Supreme Court “has stated that false Michael Jackson. The fact that those statements were or misleading commercial speech may be prohibited made in the context of promoting the album does not because the truth of commercial speech is ‘more easily change their constitutional significance. verifiable by its disseminator’ and because commercial speech, being motivated by the desire for economic HN11[ ] CA(10)[ ] (10) Economic motivation is only profit, is less likely than noncommercial speech to be one of the factors, insufficient in itself, that may indicate chilled by proper regulation.” (Kasky, at p. 962, quoting that speech is commercial. (Bolger, supra, 463 U.S. at Virginia Pharmacy, supra, 425 U.S. at p. 772, fn. 24.)
These factors were important for the court's ruling. The 6 court in Kasky ascribed great significance to the fact As mentioned above, the parties stipulated below for that, “[i]n describing its own labor policies, and the purposes of the anti-SLAPP motions that Michael Jackson did not sing the lead vocals on the three Disputed Tracks. practices and working conditions in factories where its Accordingly, for purposes of their appeal, Appellants state that products are made, Nike was making factual they accept “that Jackson did not sing the lead vocals” on the representations about its own business operations.” Disputed Tracks. However, Appellants did not stipulate that (Kasky, supra, 27 Cal.4th at p. 963, italics added.) The they knew the identity of the singer.
brendan healey Page 15 of 18 26 Cal. App. 5th 759, *777; 237 Cal. Rptr. 3d 487, **500; 2018 Cal. App. LEXIS 767, ***26 p. 67.) As our Supreme Court explained in Kasky, Federation of America (2004) 115 Cal.App.4th 322, 348 whether speech is commercial or noncommercial should [9 Cal. Rptr. 3d 197] [**501] [statements of opinion on take account of the reasons for affording commercial Planned Parenthood's website concerning scientific speech less constitutional protection. (Kasky, supra, 27 research about abortion and breast cancer were not Cal.4th at pp. 958, 965.) The court in Kasky recognized commercial speech].) that the speech at issue in that case—Nike's statements about labor practices in the factories that manufactured The lack of personal knowledge here also means that its products—addressed an issue of public interest. The Appellants' challenged statements do not fit the reason that Nike's speech could be subject to regulation definition of speech that is “‘less likely to be chilled by under the state's unfair competition and false advertising proper regulation.’” (Kasky, supra, 27 Cal.4th at p. 965, laws was that it concerned facts about Nike's own quoting Virginia Pharmacy, supra, 425 U.S. at p. 772, business operations, which were “‘more easily fn. 24.) The “regulation” at issue here is the UCL and verifiable’” and “‘less likely to be chilled by proper the CLRA. Serova could obtain relief under these regulation’” than other speech about the publicly consumer protection statutes [***28] without proof of debated [***27] issue of international labor practices. intentional or willful conduct. (See Kasky, at pp. 980– (Id. at pp. 965, 967, quoting Virginia Pharmacy, supra, 981 (dis. opn. of Brown, J.); Podolsky v. First Healthcare 425 U.S. at p. 772, fn. 24.) The court cautioned that it Corp. (1996) 50 Cal.App.4th 632, 647 [58 Cal. Rptr. 2d did not purport to decide whether speech should be 89] [violation of the UCL is a “strict liability offense”].)9 considered commercial if all of the factors that the court Thus, to avoid possible liability for a mistaken judgment identified—including the element of personal knowledge about the lead singer on the Disputed Tracks, about one's own business operations—were not Appellants would have needed to either: (1) provide present. (Kasky, at p. 964.)7 disclaimers about the singer's identity in its marketing materials; or (2) omit the Disputed Tracks from the The absence of the element of personal knowledge is album.10 highly significant here. Because Appellants lacked actual knowledge of the identity of the lead singer on the Disputed Tracks, they could only draw a conclusion Herald Examiner (1986) 42 Cal.3d 254, 260–261 [228 about that issue from their own research and the Cal.Rptr. 206, 721 P.2d 87] [applying a “ ‘totality of the available evidence. Under these circumstances, circumstances’ ” test in a libel action to determine whether a Appellant's representations about the identity of the statement was one of fact or opinion].) Rather, the question singer amounted to a statement of opinion rather than here is whether Appellants' challenged speech was commercial. Under the court's analysis in Kasky, the speaker's fact. 8 (Cf. Bernardo v. Planned [*778] Parenthood knowledge about the content of the speech is the important feature in answering that question. Nike's challenged speech in that case concerned its own business operations which were within its personal knowledge. (Kasky, supra, 27 Cal.4th 7 For example, the court might well have reached a different at p. 963.) That is not the case here, as Appellants were not conclusion in Kasky if the statements at issue concerned the involved in the initial recordings of the Disputed Tracks. From labor practices of an independent commercial supplier who Appellants' perspective, their challenged statements about the simply sold products to Nike for resale. The court specifically identity of the lead singer were therefore necessarily opinion. noted that Nike had entered into a memorandum of understanding assuming responsibility for its subcontractors' 9 The CLRA does provide for a good faith defense to an action compliance with local labor laws. (Kasky, supra, 27 Cal.4th at for damages, but the defense requires proof of “appropriate p. 947.) correction, repair or replacement or other remedy of the goods and services.” (Civ. Code, § 1784; see id., § 1782, subds. (b) 8 In her petition for rehearing, Serova argues that Appellants' & (c).) In contrast to the consumer claims asserted against challenged statements on the Album Cover and in the Appellants, Serova's fraud claim against the Cascio Promotional Video were statements of fact, not opinion, Defendants of course does include a scienter element. That because consumers would have understood them to be claim is still pending in the trial court. factual assertions about the identity of the lead singer of the songs in the album. This argument misunderstands the issue. 10 The record illustrates this dilemma. During oral argument, The question here is not whether Appellants have a defense to the trial court suggested that Appellants could have avoided Serova's claims because their challenged statements were legal challenge by leaving the songs at issue off of the album truthful assertions of opinion rather than alleged false entirely. The trial court's written ruling also observes that statements of fact. In that context, focus on the listener's Appellants could have given the album “a different title and understanding is appropriate. (See, e.g., Baker v. Los Angeles look” or elected “not to attest to the authenticity of the
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The chilling effect of the second option is obvious. But noncommercial. the first option also has First Amendment implications. ii. The relationship between the challenged statements The United States Supreme Court recently emphasized and the art that they promoted the potentially problematic nature of regulations that compel speech, even in a commercial context. In Appellants' statements in the Promotional Video and on National Institute of Family & Life [*779] Advocates v. the Album Cover described and promoted the album, of Becerra (2018) 585 U.S. ___ [201 L.Ed.2d 835, 138 which the Disputed Tracks were a part. The music on S.Ct. 2361] (Life Advocates), the court held that a the album itself is entitled to full protection under the California law requiring notices in health care clinics First Amendment. (Stewart, supra, 181 Cal.App.4th at p. concerning available health care services, including 682.) The challenged statements therefore related abortion, likely violated the First Amendment. The court directly to a piece of art that has independent declined to recognize an exception to strict scrutiny significance under [***30] the First Amendment. review under the First Amendment for “professional speech,” noting that the court has permitted compelled The identity of a singer, composer, or artist can be an disclosures only in the context of professionals’ important component of understanding the art itself. No “‘commercial advertising’” concerning “‘purely factual one could reasonably dispute that knowing [*780] and uncontroversial information about the terms under whether a piece of music was composed by Johann which … services will be available.’” (Life Advocates, at Sebastian Bach or a picture was painted by Leonardo p. ___ [201 L.E.2d at pp. 847–848].) [***29] By Da Vinci informs the historical understanding of the compelling a particular disclosure, the law at issue work.12 Similarly, although the art at issue is [**502] amounted to an impermissible “content-based contemporary and in a different genre, whether Michael regulation of speech.” (Id. at p. ___ [201 L.Ed.2d at p. Jackson was actually the lead singer of the songs on 11 846].) the Disputed Tracks certainly affects the listener's understanding of their significance. Thus, the marketing By compelling disclosure of the controversy over the statements at issue here are unlike the purely factual Disputed Tracks to avoid liability, the UCL and CLRA product or service descriptions constituting commercial would, in effect, require Appellants to present views in speech in cases that Serova cites. (See Benson v. their marketing materials with which they do not agree. Kwikset Corp. (2007) 152 Cal.App.4th 1254, 1268 [62 The possibility that applying these unfair competition Cal. Rptr. 3d 284] [representation that products were and consumer protection laws to Appellants' speech manufactured in the United States]; Peel v. Attorney would have the effect of chilling the content of that Disciplinary Comm'n of Ill. (1990) 496 U.S. 91, 99–100 speech—whether by preventing the sale of particular [110 L.Ed.2d 83, 110 S.Ct. 2281] [advertisement musical works or by regulating the expression of a point concerning attorney's certification [**503] as an of view on a public controversy about those works—is a expert]; Rubin v. Coors Brewing Co. (1995) 514 U.S. further reason to conclude that the speech at issue was 476, 481 [131 L.Ed.2d 532, 115 S.Ct. 1585] [descriptions of alcohol content on beer labels].) recordings on the cover or in a commercial.” CA(11)[ ] (11) We do not suggest that the challenged 11 That the court's reasoning in Life Advocates has implications statements here are noncommercial speech only beyond just professional disclosures is shown by Justice Breyer's dissent, which cautions that “the majority's view, if taken literally, could radically change prior law, perhaps placing much securities law or consumer protection law at 12 While these examples are only illustrative, they are not constitutional risk, depending on how broadly its exceptions purely hypothetical. (See Dutter & Nikkhah, Bach works were are interpreted.” (Life Advocates, supra, 585 U.S. at p. ___ written by his second wife, claims academic (Apr. 23, 2006) [201 L.Ed.2d at p. 857], dis. opn. of Breyer, J.) The majority The Telegraph. countered by stating that it does not “question the legality of …
brendan healey Page 17 of 18 26 Cal. App. 5th 759, *780; 237 Cal. Rptr. 3d 487, **503; 2018 Cal. App. LEXIS 767, ***30 because they promoted an art work. We agree with the speech is sufficient in itself to classify particular speech court in [***31] Rezec, supra, 116 Cal.App.4th 135, that as commercial, nor must each factor “necessarily be HN12[ ] advertising is not necessarily excluded from present in order for speech to be commercial.” (Bolger, the category of commercial speech simply because it supra, 463 U.S. at pp. 66–67 & fn. 14.) The court promotes a product that is itself subject to full First concluded that the presence of all three factors in that Amendment protection. In Rezec, the court held that film case “provides strong support” for the conclusion that advertisements that featured fictional endorsements the informational pamphlets at issue were commercial. from a nonexistent critic was commercial speech. The (Id. at p. 67.) However, citing a prior opinion involving court rejected the “absolutist approach” that “because the advertising of religious books, the court also the films themselves are noncommercial speech, so are cautioned that “a different conclusion may be the advertisements.” (Rezec, at p. 142.)13 appropriate in a case where the pamphlet advertises an activity itself protected by the First Amendment.” (Id. at Such an approach would ascribe full First Amendment p. 67, fn. 14.) significance to any commercial representation about a piece of art, no matter how mundane or willfully That is the situation here. The challenged statements in misleading. For example, returning to the hypothetical the Promotional Video and on the Album Cover advertisement mentioned above, there is no apparent concerned [**504] music that is “itself protected by the reason why a statement falsely stating that a particular First Amendment.” (Bolger, supra, 463 U.S. at p. 67, fn. song is included in an album should be subject to full 14.) While not itself dispositive, the fact that the First Amendment protection simply because the challenged statements promoted a piece of art is statement promotes the sale of [*781] music.14 appropriate to consider in assessing the content of the However, where, as here, a challenged statement in an speech [***33] under the Kasky guidelines. (Kasky, advertisement relates to a public controversy about the supra, 27 Cal.4th at p. 961.) identity of an artist responsible for a particular work, and 3. Conclusion the advertiser has no personal knowledge of the artist's identity, it is appropriate to take account of the First CA(13)[ ] (13) Appellant's challenged statements on Amendment significance of the work itself in assessing the Album Cover and in the Promotional Video were whether [***32] the content of the statement was purely noncommercial speech outside the scope of the commercial. consumer protection claims that Serova asserts against Appellants. As a matter of law Serova therefore cannot CA(12)[ ] (12) This conclusion is consistent with the show a likelihood that she will prevail on her claims flexible approach that the United States Supreme Court under prong two of the anti-SLAPP procedure, and her has adopted for identifying commercial speech. In claims against Appellants must be stricken. We Bolger, the court explained that HN13[ ] no single therefore need not reach the issue of whether the factor that it identified as a marker of commercial challenged statements would be misleading to a reasonable consumer. [*782] 13 In Keimer, supra, 75 Cal.App.4th 1220, the court concluded that advertisements repeating “verifiably false or misleading” We emphasize that this holding is based on the record statements about investment returns contained in a book were in this case and the issues that have been appealed. commercial speech despite the fully protected status of the The Cascio Defendants have not appealed, and our books themselves under the First Amendment. (Keimer, at p. holding therefore does not reach any portion of the trial 1231.) The statements at issue here were not “verifiably false” court's order with respect to them. Nor do we purport to based upon the information available to Appellants, so we decide whether statements in another context need not consider this holding. concerning the marketing of creative works might constitute commercial speech. 14 Thus, we do not accept Appellants' suggestion that an advertisement promoting a particular piece of art is necessarily “inextricably intertwined” with the First Amendment content of DISPOSITION the art itself simply because it makes a representation about the identity of the artist. (See Riley, supra, 487 U.S. at p. 796.) The trial court's order is affirmed in part and reversed in The distinguishing features here are that: (1) the identity of the part. The portions of the Complaint alleging claims artist was itself an issue of public discussion and interest; and against Appellants are ordered stricken. In all other (2) Appellants had no personal knowledge of the issue.
brendan healey Page 18 of 18 26 Cal. App. 5th 759, *782; 237 Cal. Rptr. 3d 487, **504; 2018 Cal. App. LEXIS 767, ***33 respects the trial court's order is affirmed. Appellants are entitled to [***34] their costs on appeal.
Chavez, J., and Hoffstadt, J., concurred.
End of Document
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