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VARIAN MEDICAL SYSTEMS, INC., et al., Plaintiffs and Respondents,
v.
MICHELANGELO DELFINO et al., Defendants and Appellants.
No. H024214
In the Court of Appeal of the State of California
Sixth Appellate District
(Santa Clara County Super. Ct. No. CV780187, Hon. Jack Komar)
COUNSEL
Orrick, Herrington & Sutcliffe, Lynne C. Hermle,
Matthew H. Poppe; Law Offices of Gerald Z. Marer, Gerald Z. Marer;
Farella, Braun & Martel, Douglas R. Young; Pillsbury Winthrop,
Renee A. Jansen, for Plaintiffs/Appellants Varian Medical Systems,
Inc., et al.
Horvitz & Levy, Jon B. Eisenberg, Jeremy B. Rosen;
Law Offices of Randall M. Widmann, Randall M. Widmann, for Defendant/Appellant
Mary Day
Horvitz & Levy, Jon B. Eisenberg, Jeremy B. Rosen,
Glynn P. Falcon, for Defendant/Appellant Michelangelo Delfino
Filed November 13, 2003
Defendants Michelangelo Delfino and Mary Day used Internet
bulletin boards to post numerous derogatory messages about their
former employer, Varian Associates, Inc. (Varian) and two Varian
executives. Varian and the two executives sued. Defendants treated
the lawsuit as a challenge to their constitutional right to free
speech and responded with a flood of spiteful messages posted
on hundreds of Internet bulletin boards. By the time of trial
defendants had posted over 13,000 messages and vowed to continue
posting until they died.
Defendants' position at trial was that their postings
contained only truth, opinion, or hyperbole. They stressed their
belief that they were constitutionally entitled to publish the
offending messages and that large corporate plaintiffs ought
not be permitted to stifle free speech by filing suit against
them. The jury was not persuaded. Defendants were found liable
for defamation, invasion of privacy, breach of contract, and
conspiracy. The trial court determined that in view of defendants'
promise to post until they died an injunction was necessary to
prevent future injury. The judgment gives plaintiffs $775,000
in damages and a broad injunction.
On appeal we are asked to consider whether the fact
that defendants' messages appeared on Internet bulletin boards
affects the character of the offending messages for purposes
of defamation law. Specifically, defendants argue that typical
Internet hyperbole cannot be considered defamatory. Defendants
also argue that to the extent speech on the Internet may be defamatory
it must be designated as slander, which requires proof of special
damages, rather than libel, for which damages are presumed. We
reject these and defendants' other challenges to the damages
portion of the judgment. We do find merit in defendants' argument
that the portion of the injunction prohibiting future speech
is an impermissible prior restraint under both the state and
federal constitutions. Accordingly, we shall modify the judgment
striking the invalid portions of the injunction and as modified,
affirm.
I. Factual Background
Plaintiffs Varian Medical Systems, Inc. (VMS) and Varian
Semiconductor Equipment Associates, Inc. (VSEA)[FOOTNOTE 1] are
publicly traded companies that manufacture technological equipment
for medical and other markets. Plaintiff George Zdasiuk is a
vice president of VMS and plaintiff Susan B. Felch is the director
of a VSEA research center. Defendant Delfino was employed by
Varian as a senior engineer. Zdasiuk fired him in October 1998
for complaints that he was disruptive and harassing to Felch
and other co-workers. Defendant Day resigned in sympathy two
months later.
Immediately after Delfino lost his job he began a campaign
of posting derogatory messages about plaintiffs on Internet bulletin
boards.[FOOTNOTE 2] He posted some of his first messages on the
Yahoo! finance board for Varian. With rare exceptions, the messages
on the Yahoo! board that were posted by persons other than defendants
concerned the price of the stock and related issues such as,
"My broker sees Varian dropping to 35 before the breakup
. . . ," and "Does anybody know how much the profit
sharing is this year."
Some of Delfino's messages were similar to those posted
by others. Some were much more caustic. He maligned Varian products.
He accused Felch of being "a manipulative liar" or
"a neurotic hallucinator." He charged Zdasiuk with
being mentally ill. He claimed both executives were incompetent
and accused them of being chronic liars. Many of his messages
contained sexual implications. One early message implied that
Felch had attained her position by having sex with a supervisor:
"building 7, looks like a ghost town, with the IIS manager
Sue Felch doing as much as she has ever done . . . . I' ll bet
you big money that Dick had nothing to say about her and her
so-called operation in Palo Alto. The only thing that makes any
sense, and I' m gropping, [sic] is there is a dress with
a stain on it somewhere. . . . find the dress and you might make
money!!!"
After plaintiffs filed this lawsuit the torrent of messages
began in earnest. Defendants accused plaintiffs of trying to
chill their right to free speech and responded to the perceived
infringement by accelerating the publication of their remarks
and intensifying their viciousness. They even published their
own website dedicated to an ongoing narrative of the case.
Many of the messages in the new flood of postings were
variations on Delfino's original themes. There were messages
denigrating Varian products and Varian executives, messages implying
sexual improprieties, messages referring to Felch and Zdasiuk
as incompetent, and messages accusing them of harassment and
discrimination. One message accused Felch of stalking Day.
The progress of the lawsuit itself provided a rich source
of material. Defendants typically distorted actual facts or statements
or simply took statements out of context to make their meaning
derogatory. For example, Megan Gray, an attorney for a third
party, filed a motion in this action during the discovery phase.
In her papers Gray referred to the portion of the complaint that
quoted defendants' message about the "dress with a stain."
She wrote: "For example, Defendants often posted messages
implying, if not outright stating, that Plaintiff Felch is a
female executive who acquired semen stains on her clothes from
oral sex with a supervisor, which was supposedly the reason she
still had a job, etc." Defendants took a portion of that
quote and posted numerous messages like these: "' Felch
is a female executive who acquired semen stains on her clothes
from oral sex with a supervisor . . .' was stated by Megan Gray
the famous LA lawyer." "And Megan E. Gray, the famous
lawyer, seems to think the bitch even has a semen stained dress
from having oral sex with a supervisor."
"Bathroom" postings were another recurring
theme. Before Delfino lost his job Felch had complained that
on hundreds of occasions he passed the window to her office and
made hand gestures, mimicking her telephone conversations. Varian's
director of human resources installed a video camera in Felch's
office to try to capture Delfino's gestures on tape. The camera
remained in place for a few weeks. Defendants first learned of
the video camera during discovery in this case. It happens that
Felch's office had windows on its hallway side. Employee restrooms
were located across the hall from her office. It also happens
that "Take Your Child to Work Day" may have taken place
during the few weeks the video camera was operating. Putting
these facts together, defendants began posting messages such
as these: "Wow! [¶ ] Unbelievable testimony about children
who used a Varian bathroom videotaped with a hidden camera"
and "Bill, you may have said it best when you suggested
prison time and stiff fines for those despicable individuals
responsible for secretly videotaping unsuspecting employees and
visitors going to the bathroom at Varian." Defendants admitted
posting more than 300 messages on this topic alone.
Plaintiffs denied the truth of all the derogatory messages.
Felch and Zdasiuk also testified that they were disturbed by
the messages and felt threatened by them. Zdasiuk was particularly
frightened by Delfino's statement that Delfino was the "worst
nightmare" of anyone who would be so foolish as to go out
of their way to annoy him.
II. Procedural Summary
Plaintiffs filed this lawsuit in February 1999.[FOOTNOTE
3] Defendants mounted a vigorous defense. The matter moved from
superior court to federal court, then back to superior court.
Upon remand to superior court defendants filed special motions
to strike the complaint as a strategic lawsuit against public
participation (the anti-SLAPP motions) (Code Civ. Proc., §
425.16). The trial court denied those motions and defendants
appealed. Defendants were unsuccessful in having the matter stayed
while their appeal was pending and the case went to trial in
the late fall of 2001.
The jury found defendants liable for defamation (libel),
invasion of privacy (appropriation of name), breach of contract,[FOOTNOTE
4] and conspiracy and determined as to each tort that defendants
had acted with malice, fraud or oppression. The jury awarded
plaintiffs $425,000 in presumed or general damages and $350,000
in punitive damages. No special damages were awarded on any cause
of action.
Basing its ruling on the evidence adduced at trial,
the trial court ordered a permanent injunction, which we shall
discuss in more detail below.
Judgment was entered and we dismissed as moot defendants'
appeal from the denial of their anti-SLAPP motions. Defendants
timely filed notice of appeal from the judgment and from the
trial court's denial of their motion for judgment notwithstanding
the verdict. We have stayed enforcement of both the damages and
the injunctive portions of the judgment and granted plaintiffs'
request for calendar preference. We deferred ruling upon defendants'
post-judgment motion for adjudication of contempt as to plaintiffs,
ordering it to be considered with the appeal.
III. Issues on Appeal
1. Is there sufficient evidence to support a finding
that plaintiffs were defamed?
2. Are defamatory communications posted on the Internet
libel or slander?
3. Was a finding of actual malice within the meaning
of New York Times Co. v. United States (1971) 403 U.S.
713 (New York Times) required to hold defendants liable
for defamation?
4. Is the injunction lawful?
5. Did the superior court lack jurisdiction to proceed
with the trial while defendants' first appeal was pending?
IV. Discussion
A. Is There Sufficient Evidence to Support a Finding That
Plaintiffs Were Defamed?
Defendants contend that there is insufficient evidence
to support the jury's determination that defendants defamed each
of the plaintiffs "by a statement or statements" that
were libelous on their face. Our review of the issue is more
stringent than the traditional substantial evidence standard
of review. We must "' make an independent examination of
the whole record' in order to make sure that ' the judgment does
not constitute a forbidden intrusion on the field of free expression.'
"(Bose Corp. v. Consumers Union of U.S., Inc. (1984)
466 U.S. 485, 499 quoting New York Times Co. v. Sullivan
(1964) 376 U.S. 254, 284-286; and see Franklin v. Leland
Stanford Junior University (1985) 172 Cal.App.3d 322, 330.)
We begin with a brief overview of that which constitutes
defamation. Defamation is an invasion of the interest in reputation.
(Smith v. Maldonado(1999) 72 Cal.App.4th 637, 645.) Libel,
one of the two forms of defamation, is defined as a false and
unprivileged publication "which exposes any person to hatred,
contempt, ridicule, or obloquy, or which causes him to be shunned
or avoided, or which has a tendency to injure him in his occupation."
(Civ. Code, § 45.)
Publication of a defamatory statement requires communication
of the statement to some third person who understands both the
defamatory meaning of the statement and its application to the
person to whom reference is made. (Ringler Associates Inc.
v. MarylandCasualty Co. (2000) 80 Cal.App.4th 1165, 1179.)
In deciding whether a statement is defamatory, one must consider
that which is explicitly stated as well as that which is insinuated
or implied. (Forsher v. Bugliosi (1980) 26 Cal.3d 792,
803.) The result is driven by the "' totality of circumstances'
"in the case at hand, beginning with the language of the
statement itself and then considering the context in which the
statement was made. (Baker v. Los Angeles Herald Examiner
(1986) 42 Cal.3d 254, 260-261.)
It is an essential element of defamation that the publication
consists of a false statement of fact rather than opinion.
(Gertz v. Robert Welch, Inc. (1974) 418 U.S. 323, 339-340 (Gertz).)
But a statement of opinion may be actionable "' if it implies
the allegation of undisclosed defamatory facts as the basis for
the opinion.' "(Okun v. Superior Court (1981) 29
Cal.3d 442, 451-452.) "Even if the speaker states the facts
upon which he bases his opinion, if those facts are either incorrect
or incomplete, or if his assessment of them is erroneous, the
statement may still imply a false assertion of fact." (Milkovich
v. Lorain Journal Co. (1990) 497 U.S. 1, 18-19.)
On the other hand, "where potentially defamatory
statements are published in a public debate, a heated labor dispute,
or in another setting in which the audience may anticipate efforts
by the parties to persuade others to their positions by use of
epithets, fiery rhetoric or hyperbole, language which generally
might be considered as statements of fact may well assume the
character of statements of opinion." (Gregory v. McDonnell
Douglas Corp. (1976) 17 Cal.3d 596, 601.) The dispositive
question is whether a reasonable factfinder could conclude that
the published statements imply an assertion of defamatory
fact. (Milkovich v. Lorain Journal Co., supra, 497 U.S. at p.
21.)
Defendants argue generally that Internet message boards
are so filled with outrageous anonymous postings that no reasonable
person would take a typical anonymous and outrageous posting
as a true statement of fact. We reject the argument for a number
of reasons. First, we assume that one reason people use financial
bulletin boards, such as the Yahoo! finance board that defendants
used, is to seek information to evaluate a particular company.
(Lidsky, "Silencing John Doe: Defamation & Discourse
in Cyberspace," 49 Duke Law Journal 855, 886 (2000) (Lidsky).)
Even if the exchange that takes place on these message boards
is typically freewheeling and irreverent, we do not agree that
it is exempt from established legal and social norms. The Internet
may be the "new marketplace of ideas," (id.
at pp. 893-894) but it can never achieve its potential as such
unless it is subject to the civilizing influence of the law like
all other social discourse. Some curb on abusive speech is necessary
for meaningful discussion. We would be doing a great disservice
to the Internet audience if we were to conclude that all speech
on Internet bulletin boards was so suspect that it could not
be defamatory as a matter of law. In effect, such a conclusion
could extinguish any potential the forum might have for the meaningful
exchange of ideas.
Second, the mere fact that the audience might not have
believed defendants' postings does not change their defamatory
character. "' In order that the defendant's words may be
defamatory, they must be understood in a defamatory sense. It
is not necessary that anyone believe them to be true, since the
fact that such words are in circulation at all concerning the
plaintiff must be to some extent injurious to his reputation-although
obviously the absence of belief will bear upon the amount of
the damages. There must be, however, a defamatory meaning conveyed.'
"(Arno v. Stewart (1966) 245 Cal.App.2d 955, 962-963
quoting Prosser, The Law of Torts (3d ed. 1964) § 106, pp.
763-764.)
Finally, defendants' postings were not, as defendants
contend, typical anonymous and outrageous postings. Defendants'
messages stood out from the messages authored by other people.
Compared to the other postings, defendants' postings were especially
vituperative personal attacks. If there were other postings on
the boards that were more like defendants' postings, they were
not part of the record.
Defendants further argue that certain categories of
statements such as those alleging sexual impropriety, incompetence,
or lying are not defamatory because they are similar to statements
in other cases that found such statements to be rhetorical hyperbole
or something like it. These comparisons are not helpful. The
unique circumstances of each case must be considered when evaluating
a statement for its defamatory content. Therefore, the result
in one case cannot drive the result in an entirely different
factual situation.
Defendants finally direct us to a consideration of specific
postings, arguing that if even some of them could not be considered
defamatory as a matter of law we must reverse the judgment. Since
over 500 different messages were introduced into evidence, we
begin by reviewing the procedure the trial court utilized in
handling them all.
We first focus on the jury instructions defining statements
that would be libelous on their face, or libel per se. The reason
we do so involves the issue of damages. A libel that is defamatory
"without the necessity of explanatory matter" is a
libel per se. (Civ. Code, § 45a.) Only a libel per se is
actionable without proof of special damages. (Ibid.) Since
plaintiffs had no special damages, the only type of libel for
which defendants could be held responsible in damages is a libel
per se.
The trial court determined as a matter of law that a
statement that asserted or implied as a fact any one of 11 different
facts, would, if untrue, be libel per se.[FOOTNOTE 5] (See Smith
v. Maldonado, supra, 72 Cal.App.4th at p. 647.) By means
of a special verdict form the jury was asked to determine whether
defendants had defamed plaintiffs "by a statement or statements
which were libelous on their face." The jury was not asked
to identify any specific statement as defamatory. Thus, by answering
"yes" to the question of whether defendants had defamed
plaintiffs by "a statement or statements which were libelous
on their face," the jury necessarily found that defendants
had made untrue statements expressing or implying as a fact one
or more of the 11 facts the court listed. Because defendants
do not assert here that these statements were true, we focus
our review solely on the question of whether there were statements
that asserted or implied any such facts as to each of the plaintiffs.
We have no trouble identifying many that do.
There are numerous messages that either directly assert
or imply that Felch was professionally incompetent, that she
engaged in sex outside of marriage, that she was a liar, that
she had sabotaged her laboratory at work, and that she held her
position by having sex with a supervisor. The "dress with
a stain" message that we quoted above is typical. Any recipient
of that message in 1998 or 1999 would have reasonably concluded
that the "dress with the stain" remark was intended
to refer to the Clinton/Lewinsky affair in which the White House
intern was supposed to have preserved a dress stained with the
President's semen. (See Schmidt, FBI To Test Lewinsky
Dress, Wash. Post (Jul. 31, 1998) p. A4.) One reasonable interpretation
of the statement is that Felch is so incompetent or lazy that
she must resort to blackmail or sex with a supervisor to keep
her job.
The record is full of similar statements, some more
direct about that which defendants were asserting, such as: "The
scandal ' Smokin' is referring to is probably the Susan B. Felch,
' my project is wasting money, my life is lousy, i' m so short,
so i' ll claim people are sabotaging my work [as an] excuse to
coverup [sic] any affair with another Varian executive
that may be ongoing, etc.' "
There are numerous messages about Zdasiuk stating or
implying defamatory facts. A message entitled "Yes, George
Zdasiuk is quite sick" contains this statement: "Maybe
his drinking clouded his judgment, maybe it's one of the reasons
he repeatedly violated company policy, who knows. [¶ ] I
just hope he's not intoxicated when he takes the stand at the
trial." Another one says, "I' m sure there will be
plenty of time for everyone to get to know each other as I suspect
we' ll have to wait for Mr. Zdasiuk to sober up before he takes
the stand . . . ." A reasonable factfinder could conclude
that these messages assert or imply as a fact that Zdasiuk's
judgment was regularly impaired by alcohol. This is defamation.
The jury also found that defendants had defamed the
Varian plaintiffs. "While a corporation has no reputation
in the personal sense to be defamed by words, such as those imputing
unchastity, which would affect the purely personal reputation
of an individual, it has a business reputation, and language
which casts aspersions upon its business character is actionable.
[Citations.] A corporation's reputation as an employer is, of
course, an important aspect of its business reputation."
(DiGiorgio Fruit Corp. v. AFL-CIO (1963) 215 Cal.App.2d
560, 571.)
There are postings that imply that Zdasiuk, a VMS supervisor,
discriminated against persons on the basis of gender or harbored
prejudices based upon sexual orientation. A typical posting from
this group is this one: "Is Varian Vice President George
Zdasiuk a sexist pig . . . Is there another explanation for this
corporate vice president to explain his bemoaning the hiring
of a pregnant engineer had he known? Perhaps, if Mr. Zdasiuk
weren' t looking at her chest, he might have noticed if she were
showing!" The natural and logical implication of this message
is that this Varian executive would refuse to hire an otherwise
qualified person who was pregnant, and that he created a hostile
work environment by staring at the breasts of women employees.
The many publications relating to plaintiffs videotaping
company bathrooms would naturally have the effect of bringing
the business into public contempt and imply that the company
had committed a crime. Since most of these messages did not differentiate
between VSEA and VMS, they could reasonably be construed as applying
to either one or both of them.
In sum, there is sufficient evidence to support the
jury's finding that defendants had defamed the plaintiffs.
Defendants point out that we cannot determine from the
special verdict form which statements provided the basis for
the jury's findings. They argue that because we do not know upon
which statements the jury relied we must reverse the judgment.
We disagree.
The trial court's limitation on that which would constitute
libel per se eliminated from consideration many of the messages
that had been admitted into evidence. The facts that the trial
court listed for the jury are specific and limited and carefully
"confine the perimeters of any unprotected category within
acceptably narrow limits in an effort to ensure that protected
expression will not be inhibited." (Bose Corp. v. Consumers
Union of U.S., Inc., supra, 466 U.S. at p. 505.) Indeed,
defendants do not object to the trial court's characterization
of that which would be libelous per se. The jury received appropriate
and detailed instructions on how to identify a defamatory statement
and we must presume that the jury understood and followed the
instructions given. (Housley v. Godinez (1992) 4 Cal.App.4th
737, 747.) And finally, there is an ample evidentiary basis to
support the verdict. We have identified a great number of messages
that could have been construed as libelous within the limits
the court set. Although the better practice might have been to
have the jury identify the particular statements it found to
be defamatory, our review of the whole record satisfies us that
even if there were some messages that were protected opinion
or rhetorical hyperbole, the jury did not rest its verdict upon
them. (Cal. Const., art. VI, § 13; Code Civ. Proc., §
475.)
B. Are Internet Postings Libel or Slander?
Defendants next argue that to the extent their Internet
messages could be considered defamatory, they must be characterized
as slander. Defendants point out that the distinction is crucial
because slander requires proof of special damages and libel does
not and since plaintiffs did not prove any special damages they
cannot recover for defamation.
Plaintiffs respond that defendants waived the issue
by failing to raise it at trial. Defendants concede they did
not spot the issue until after trial but they urge us to apply
an exception to the general rule that permits us to pass upon
an issue that was not raised below if the facts are undisputed
and no different showing could have been made. Defendants also
argue that the matter is of considerable public concern warranting
consideration of the merits.
The general rule is that appellate courts will not consider
issues raised for the first time on appeal. But there are many
situations where we do consider such matters, such as when the
issue relates to a question of law only, or where the public
interest or public policy is involved. Whether or not the rule
shall be applied is largely a question of the appellate court's
discretion. (BaysideTimber Co. v. Board of Supervisors
(1971) 20 Cal.App.3d 1, 5; and see De Anza Santa Cruz Mobile
Estates Homeowners Assn. v. De Anza Santa Cruz Mobile Estates
(2001) 94 Cal.App.4th 890, 908.) The issue presented here involves
a question that has arisen only with the advent of Internet communications.
Application of the common law to matters involving the Internet
is of considerable public interest. Moreover, the distinction
between libel and slander involves a practical difference in
the requirements for pleading and proof so that the question
is one that is likely to recur. Accordingly, we exercise our
discretion and proceed to the merits.[FOOTNOTE 6]
A defamatory communication may be characterized either
as libel or slander. (Civ. Code, § 44.) The traditional
distinction between libel and slander is that libel is written
and slander is spoken. Defendants ignore this distinction and
focus instead upon the practical difference, which involves the
necessity to prove damages. Both distinctions are of ancient
origin. Slander was considered a sin in Medieval England. (Dobbs,
The Law of Torts, (2001) Ch. 28, § 400, p. 1117
(Dobbs).) When the action migrated to the civil courts the courts
required proof of "temporal" or actual damages to avoid
interfering with the church's authority over spiritual matters.
(Prosser & Keeton, Torts (5th ed. 1984) ch. 19
Defamation § 112, p. 788 (Prosser).)
Libel arose with the advent of the printing press. Libel
was at first a crime and was used to suppress political writings.
It was later applied to non-political defamatory writings. Libel
has been considered the greater wrong, either because of its
criminal origins (Prosser, Torts, supra, § 112 at
p. 785) or because the permanence of its form endowed it with
a greater propensity to breach the peace. (Dobbs, supra, §
400 at p. 1117; Ostrowe v. Lee (1931) 256 N.Y. 36, 39.) In
any event, by the early 19th Century libel was actionable per
se, that is, damage was presumed. (Prosser,supra, at p.
786.)
Libel today is defined as a defamatory publication communicated
"by writing, printing, picture, effigy, or other
fixed representation to the eye . . . ." (Civ. Code, §
45, italics added.) Slander is "orally uttered, and
also communications by radio or any mechanical or other means
. . . ." (Civ. Code, § 46, italics added (hereafter
section 46).) Television broadcasts are also treated as slander
in this state. (See White v. Valenta (1965) 234 Cal.App.2d
243, 254.)
Defendants argue that Internet messages fall into the
statutory classification of slander because they are communications
by "any mechanical or other means" as specified in
the slander statute. (§ 46.) Logic tells us that "mechanical
or other means" cannot apply to all mechanical methods for
producing a communication. After all, the cause of action for
libel arose with the invention of mechanical means for reproducing
the printed word. But the slander statute itself contains no
clue to what the Legislature intended by the phrase. Accordingly,
we may resort to the legislative history. (ITT World Communications,
Inc. v. City and County of San Francisco (1985) 37 Cal.3d 859,
868.)
Prior to 1945 Civil Code section 46 defined slander
as a "false and unprivileged publication other than libel."
(Stats. 1945, ch. 1489, § 2.) At the time there was some
dispute about whether radio broadcasts should be characterized
as slander or libel since even though communications delivered
by radio were spoken, in most cases the messages were read from
a written script. (Prosser, supra, § 112 at p. 787.)
Some jurisdictions reasoned that because radio broadcasts had
such a great potential for injury they should be treated as the
supposedly greater wrong of libel. (Ibid.) The California
Legislature either rejected or ignored that reasoning and simply
designated radio broadcasts as slander, amending the section
to read as it does today. (Stats. 1945, ch. 1489, § 2.)
Thus, by categorizing radio broadcasts as slander, our Legislature
adhered to the traditional distinction between libel and slander,
i.e., that libel is written and slander is spoken.
The legislative history of the 1945 amendments contains
one illuminating reference to the phrase "mechanical or
other means." In a letter urging the governor to sign the
bill the bill's supporters explained: "Radio broadcasters
are definitely placed under the slander provisions of the code
in Section 46, the present law defining slander, by addition
of the words, ' orally uttered, and also communications by radio
or any mechanical or other means which. . . .' This wording includes
radio broadcasts directly spoken, those which are mechanically
reproduced by transcriptions and we believe will include broadcasts
from sound trucks." (Newspaper Publishers Association and
Hearst Publications letter to Governor Warren, Jun. 22, 1945,
p. 1.) (Stats. 1945, ch. 1489.) "Transcription" as
used here is defined as "a tape, disc, or other recording
made for broadcast or rebroadcast of a radio or television program."
(Webster's 3d New Internat. Dict. (1993) at p. 2426.) This reference
in the legislative history supports our conviction that the Legislature
intended to maintain the traditional distinction between libel
and slander and that "mechanical or other means" must
have been intended to encompass only means of auditory communication.
Accordingly, we reject defendants' contention that the language
"communications by radio or any mechanical or other means"
was intended to include anything like a computer or other device
used to produce written communications.
Defendants also urge us to categorize communications
over the Internet as the supposed lesser wrong of slander because,
since Internet communication is the modern-day equivalent of
a speech on the "village green," it deserves the greater
protection traditionally accorded slander. The argument confuses
the analyses. In defamation cases we are always mindful of the
balance between the defendant's constitutional right to free
speech and the plaintiff's interest in protecting his or her
good name. However, that balance is struck by weighing factors
such as the plaintiff's status (as a public or private figure)
and the subject of speech itself against the defendant's constitutional
interests. Whether the speech is classified as libel or slander
is an arbitrary and, some would say, archaic distinction. At
any rate, in California the distinction has little if anything
to do with the constitutional analysis.
We find the plain language of the defamation statutes
is dispositive. That is, defendants' messages were publications
by writing. The messages were composed and transmitted
in the form of written words just like newspapers, handbills,
or notes tacked to a conventional bulletin board. They are representations
"to the eye." True, when sent out over the Internet
the messages may be deleted or modified and to that extent they
are not "fixed." But in contrast with the spoken word,
they are certainly "fixed." Furthermore, the messages
are just as easily preserved (as by printing them) as they are
deleted or modified. In short, the only difference between the
publications defendants made in this case and traditionally libelous
publications is defendants' choice to disseminate the writings
electronically.
It has been noted that many forms of publication available
to us today "cannot realistically be analyzed by reference
to the traditional libel-slander dichotomy, which modern technology
has rendered increasingly obsolete. [Citations.]" (Polygram
Records, Inc. v. Superior Court (1985) 170 Cal.App.3d 543,
552, fn. 9.) In this case, however, the publications are readily
analyzed by reference to the existing statutes. We hold that
written defamatory communications published by means of the Internet
are properly characterized as libel.
C. Did the Trial Court Err in Instructing the Jury That It
Could Find Defendants Liable for Defamation on Proof of Mere
Negligence?
Defendants next contend that all the plaintiffs are
public figures and therefore the trial court erred in instructing
the jury that it could find liability on proof of either actual
malice or negligence.[FOOTNOTE 7] Defendants also argue that
even if the plaintiffs are not public figures they are not entitled
to presumed or punitive damages because the defamatory statements
involved issues of public concern.
A plaintiff who is a public figure may not recover damages
for defamation without clear and convincing proof that the defamatory
statement was made with actual malice. (New York Times Co.
v. Sullivan, supra, 376 U.S. at pp. 279-280.) Actual malice
in this context means that the defendant published the defamatory
statement "with knowledge that it was false or with reckless
disregard of whether it was false or not." (Id. at
p. 280.) If plaintiffs are not public figures, then liability
may be established on proof of mere negligence. (Brown v.
Kelly Broadcasting Co. (1989) 48 Cal.3d 711, 747.) If the
defamation involves an issue of public concern, proof of actual
malice is necessary to recover presumed or punitive damages even
if the plaintiff is not a public figure. (Gertz, supra,
418 U.S. at pp. 347, 349; Dun & Bradstreet, Inc. v. Greenmoss
Builders (1985) 472 U.S. 749, 756 (Dun & Bradstreet).)
There are two types of public figures: all-purpose public
figures and limited-purpose public figures. All-purpose public
figures are those persons who "occupy positions of such
persuasive power and influence that they are deemed public figures
for all purposes." (Gertz, supra, 418 U.S. at p.
345.) In order for a plaintiff to be deemed an all-purpose public
figure, there must be "clear evidence of general fame or
notoriety in the community, and pervasive involvement in the
affairs of society . . . ." (Id. at p. 352.)
Limited-purpose public figures are those who have "thrust
themselves to the forefront of particular public controversies
in order to influence the resolution of the issues involved."
(Gertz, supra, 418 U.S. at p. 345.) This type of public
figure "voluntarily injects himself or is drawn into a particular
public controversy and thereby becomes a public figure for a
limited range of issues." (Id. at p. 351.) There
are three aspects to the analysis. First the court must find
that there was an issue that was being debated publicly that
had "foreseeable and substantial ramifications for nonparticipants."
(Waldbaum v. Fairchild Publications, Inc.(D.C. Cir. 1980)
627 F.2d 1287, 1297.) Second, in connection with such a public
debate the plaintiff must have undertaken "some voluntary
act through which he seeks to influence the resolution of the
public issues involved." (Reader's Digest Assn. v. Superior
Court(1984) 37 Cal.3d 244, 254.) "Finally, the alleged
defamation must have been germane to the plaintiff's participation
in the controversy." (Waldbaum v. Fairchild Publications,
Inc., supra, 627 F.2d at p. 1298; see also Copp v. Paxton (1996)
45 Cal.App.4th 829, 845-846.)
Applying these rules we find first of all that the Varian
plaintiffs are not all-purpose public figures. The Varian plaintiffs
make equipment for the technology market. They neither advertise
nor sell to the general public. In Stolz v. KSFM 102 FM (1994)
30 Cal.App.4th 195, 205 cited by defendants, the plaintiff was
an all-purpose public figure because he owned and operated a
radio station that had pervasive influence in the community and
which thrust itself into the public eye every day by virtue of
its radio broadcasts. Here there are no similar facts. There
is nothing in the record to support the conclusion that the Varian
plaintiffs have any type of pervasive involvement in the affairs
of society.[FOOTNOTE 8]
We also reject the contention that Felch and Zdasiuk
are limited-purpose public figures. According to defendants,
the "public controversy" into which these plaintiffs
injected themselves was the public's interest generally in issues
involving corporate mismanagement and specifically in Varian's
efforts to silence its on-line critics. Defendants argue that
by filing this lawsuit plaintiffs voluntarily thrust themselves
into this controversy. But there was no public controversy
before plaintiffs filed the lawsuit. This entire matter arose
as a result of Delfino's termination for harassing Felch, a purely
personal issue. And plaintiffs' decision to sue can hardly be
characterized as voluntary since they had no recourse but to
file the lawsuit if they wanted the offending publications to
cease.
Defendants cite Lee v. Calhoun (10th Cir. 1991)
948 F.2d 1162, 1165 as support, but Lee v. Calhoun is
distinguishable. There the plaintiff filed a malpractice lawsuit
claiming $38 million in damages. The issue of medical malpractice
damage awards was an acknowledged, pre-existing public controversy.
In claiming such a high dollar figure in damages, the plaintiff
was voluntarily injecting himself into that controversy. In this
case, the public's interest was not generated until defendants
accelerated their campaign after the lawsuit was filed. As the
Supreme Court has said, "those charged with defamation cannot,
by their own conduct, create their own defense by making the
claimant a public figure." (Hutchinson v. Proxmire (1979)
443 U.S. 111, 135.)
The same analysis applies to the question of whether
the Varian plaintiffs are limited purpose public figures, although
the question is a closer one. It is not insignificant that the
Varian plaintiffs are publicly traded companies. Such companies
indisputably have an interest in the dissemination of information
about themselves to existing and potential investors. To that
extent the companies voluntarily place themselves in a position
that increases the risk that they will be defamed in the eyes
of those investors. To be sure, defendants' first messages were
posted on financial bulletin boards devoted to information about
Varian and Varian stock.
On the other hand, while there may be general public
interest in public companies and their management, there
was no "particular public controversy" into which Varian
injected itself. (Gertz, supra, 418 U.S. at p. 351.) The
California Supreme Court has rejected the argument that simply
by doing business with the public a corporate plaintiff loses
its protection as a private person. InVegod Corp. v. American
Broadcasting Companies, Inc. (1979) 25 Cal.3d 763 (Vegod)
plaintiffs conducted the going-out-of-business sale for City
of Paris, a landmark department store in San Francisco. Defendants
published statements charging the plaintiffs with deceiving the
public in connection with that sale. The court determined that
even though the demise of City of Paris was a matter of public
controversy, the plaintiffs had not thrust themselves into that
controversy merely by advertising and selling goods to the public.
The court held: "Criticism of commercial conduct does not
deserve the special protection of the actual malice test. Balancing
one individual's limited First Amendment interest against another's
reputation interest [citation], we conclude that a person in
the business world advertising his wares does not necessarily
become part of an existing public controversy. It follows those
assuming the role of business practice critic do not acquire
the First Amendment privilege to denigrate such entrepreneur."
(Id. at p. 770.)
Although Vegod did not specifically involve a
publicly traded company, it does counsel that criticism of a
company's business or employment practices alone cannot create
a public controversy. Our Supreme Court has also noted that a
"' fairly high threshold of public activity' is necessary
to elevate a person to public figure status. (Tribe, American
Constitutional Law (2d ed. 1988) § 12-13, p. 881.)"
(Brown v. Kelly Broadcasting Co., supra, 48 Cal.3d at
p. 745.) Because there was no evidence of any particular controversy
into which the Varian plaintiffs injected themselves prior to
filing the lawsuit, we conclude that the companies' status as
public companies is not sufficient to consider them public figures
for the purposes of this action.
We briefly address defendants' contention that their
speech involved matters of public concern. Whether a matter is
of public concern is sometimes difficult to determine. (Carney
v. Santa Cruz Women Against Rape (1990) 221 Cal.App.3d 1009,
1020.) Merely publishing material in the mass media creates public
interest in its contents. (Brown v. Kelly Broadcasting Co.,
supra,48 Cal.3d at p. 752.) But public interestis
not the test. "It is speech on ' "matters of public
concern" ' that is ' at the heart of the First Amendment's
protection.' [Citations.]" (Dun & Bradstreet, supra,
472 U.S. at pp. 758-759.) Whether the speech involved is of public
concern is determined by analyzing its "' content, form,
and context . . . as revealed by the whole record.' "(Id.
at p. 761, quoting Connick v. Myers (1983) 461 U.S. 138,
147-148.)
We have reviewed the whole record. In so doing we conclude
that even if some of the defamatory statements could arguably
be considered matters of public concern, such as whether a company
discriminates against or harasses women in the workplace, viewed
as a whole the defamatory speech reflects nothing more than a
vicious personal vendetta having nothing to do with issues of
legitimate concern to the public.
In sum, the trial court did not err in instructing the
jury that defendants could be liable on a showing of either actual
malice or negligence.
D. The Injunction
1. Is the Injunction an Unconstitutional Prior Restraint?
The trial judge found that defendants had published
very serious defamation and that they were likely to continue
to do so since they promised to continue posting until they died.
The resulting injunction contains 15 paragraphs. On appeal defendants
do not object to any particular paragraph. Defendants generally
object that the injunction is a prior restraint on speech. Defendants
contend that the injunction prevents them "from speaking
on the Internet or anywhere else on a broad range of topics,"
that it improperly prohibits "future speech," and that
it prevents them from posting truthful information. We view these
objections as applicable to three paragraphs of the injunction:
paragraphs 1, 3, and 6.
The balance of the injunction prohibits defendants from
using the names of the individual plaintiffs as aliases or screen
names; it requires defendants to take all steps necessary to
have any existing messages that the trial court found to be defamatory
removed from the Internet; it includes a very broad stay-away
order; and it incorporates various orders designed to aid plaintiffs
in tracking defendants' online activities. Since defendants do
not direct their appeal to these provisions of the injunction,
we express no opinion about them;[FOOTNOTE 9] nor are we called
upon to review any of the trial court's findings of fact. We
restrict our analysis to the question of whether paragraphs 1,
3, and 6 are unconstitutional prior restraints on speech.
Paragraphs 1 and 3
Paragraph 1 prohibits "any written statement that
is untrue, expressly or by implication, with regard to any person
identified in subparagraphs (a)-(w) below in any of the ways
specified therein, which the Court finds are untrue, except that
this paragraph 1 does not prohibit [defendants] from making statements
about matters that may occur after the date of the trial . .
." Paragraph 1 lists 23 different facts that the trial judge
found were untrue.[FOOTNOTE 10] Following the list of 23 facts
the order states: "This paragraph 1 shall not be construed
as a general prohibition on defamatory statements. Only written
statements that defame any person identified in subparagraphs
(a)-(w) above in any of the ways specified therein, all of which
were shown to be false and defamatory, are prohibited by this
paragraph 1." Paragraph 3 prohibits defendants from posting
any statement prohibited by paragraph 1 in any part of an Internet
message.
Plaintiffs argue that the injunction cannot be considered
a prior restraint because it prohibits speech that the
trial court has already determined to be unlawful. Plaintiffs
rely upon Aguilar v. Avis Rent A Car System, Inc. (1999)
21 Cal.4th 121, 140 (Aguilar) for the proposition that
such a restraint is permissible. As we shall explain, Aguilaris
inapplicable in this case.
A prior restraint is an administrative or judicial order
that forbids certain speech in advance of the time the communication
is to occur. (Alexander v. United States (1993) 509 U.S.
544, 550; see also DVD Copy Control Assn., Inc. v. Bunner
(2003) 31 Cal.4th 864, 886.) "Temporary restraining orders
and permanent injunctions-i.e., court orders that actually
forbid speech activities-are classic examples of prior restraints."
(Alexander v. United States, supra, 509 U.S. at p. 550.)
Prior restraints on pure speech are highly disfavored and presumptively
a violation of the First Amendment. (Hurvitz v. Hoefflin
(2000) 84 Cal.App.4th 1232, 1241.) This is true even when the
speech is expected to be of the type that is not constitutionally
protected. (See Near v. Minnesota (1931) 283 U.S. 697,
704-705 [rejecting restraint on publication of any periodical
containing malicious, scandalous and defamatory matter]; and
see New York Times, supra, 403 U.S. at pp. 718-726 [national
security interest in suppressing classified information in Pentagon
Papers did not outrank First Amendment right of press to publish
classified information].)
The plain language of our state Constitution also prohibits
prior restraints on speech: "Every person may freely speak,
write and publish his or her sentiments on all subjects, being
responsible for the abuse of this right. A law may not restrain
or abridge liberty of speech or press." (Cal. Const., art.
I, § 2, subd. (a); and see Dailey v. Superior Court (1896)
112 Cal. 94, 100.) This provision is "[a] protective provision
more definitive and inclusive than the First Amendment."
(Wilson v. Superior Court (1975) 13 Cal.3d 652, 658.)
Our Supreme Court has stated that the "publication of information
about a person, ' without regard to truth, falsity, or defamatory
character of that information,' [is] not subject to prior restraint."
(Id. at p. 659; and see Rosicrucian Fellow v. Rosicrucian
Etc. Ch. (1952) 39 Cal.2d 121; Gilbert v. National Enquirer,
Inc. (1996) 43 Cal.App.4th 1135, 1148.)
"The presumption against prior restraints is heavier-and
the degree of protection broader-than that against limits on
expression imposed by criminal penalties. Behind the distinction
is a theory deeply etched in our law: a free society prefers
to punish the few who abuse rights of speech after they
break the law than to throttle them and all others beforehand.
It is always difficult to know in advance what an individual
will say, and the line between legitimate and illegitimate speech
is often so finely drawn that the risks of freewheeling censorship
are formidable." (Southeastern Promotions, Ltd. v. Conrad
(1975) 420 U.S. 546, 558-559.) The government bears a heavy burden
to justify a prior restraint. (New York Times, supra, 403
U.S. at p. 714; Organization for a Better Austin v. Keefe
(1971) 402 U.S. 415, 419.)
United States Supreme Court decisions that have upheld
injunctions based upon past unlawful conduct have done so not
only because the past conduct was unlawful, but also because
the restrictions did not involve censorship of speech but were
merely limits on the time, place and manner. (See DVD Copy
Control Assn., Inc. v. Bunner, supra, 31 Cal.4th at p. 893
(conc. opn. of Moreno, J.).) The high court has declined to apply
the strict scrutiny of prior restraint analysis where an injunction
prohibiting picketing near an abortion clinic was content neutral
and did not prevent the petitioners from expressing their message
in other ways. (Madsen v. Women's Health Center, Inc.
(1994) 512 U.S. 753, 764, fn. 2 (Madsen).) Madsenheld
that the proper level of scrutiny for a content-neutral injunction
is whether the challenged provisions "burden no more speech
than necessary to serve a significant government interest."
(Id. at p. 765.) Only when a restraint is content based
does prior restraint analysis apply. (See, Thomas v. Chicago
Park Dist. (2002) 534 U.S. 316, 322.) A content-based regulation
(as opposed to an injunction) is permissible if it is necessary
to serve a compelling state interest and is narrowly drawn to
achieve that end. (See Perry Ed. Assn. v. Perry Local Educators'
Assn. (1983) 460 U.S. 37, 45.) The United States Supreme
Court has not articulated a test for analyzing a content-based
injunction, but such a rule would undoubtedly be stricter than
the Madsen rule.
The plurality opinion in Aguilar held that an
injunction prohibiting racial epithets in the workplace was not
a prior restraint. The plurality reasoned that since the jury
had determined that the speech violated the Fair Employment and
Housing Act (FEHA) (Gov. Code, § 12900 et seq.), the speech
was constitutionally "unprotected" and could be enjoined.
(Aguilar, supra, 21 Cal.4th at pp. 138-139, 144 (plur.
opn. of George, C.J.).) In support of that reasoning the lead
opinion relied uponPittsburgh Press Co. v. Human Rel. Comm'
n (1973) 413 U.S. 376, 390 (Pittsburgh Press). Pittsburgh
Press upheld a regulation prohibiting a newspaper from designating
its help-wanted advertisements by gender. (Ibid.) In rejecting
the newspaper's prior restraint argument, the court remarked:
"The special vice of a prior restraint is that communication
will be suppressed, either directly or by inducing excessive
caution in the speaker, before an adequate determination that
it is unprotected by the First Amendment." (Ibid.,
italics added.) The court explained that this was "not a
case in which the Court is asked to speculate as to the effect
of publication" (ibid.) and concluded that the commission's
order was not a prior restraint because it merely prohibited
a continuing course of repetitive conduct. The court's rationale
was that to the extent the order prohibited future speech, it
was possible to determine the meaning and effect of that speech
in advance.
Aguilar's conclusion that an injunction prohibiting
racial epithets was permissible was based upon the reasoning
of Pittsburgh Press, i.e., that the court was not required
to speculate about the effect of such speech in the workplace-it
would continue to be unlawful. (Aguilar, supra, 21 Cal.4th
at pp. 129, 141 (plur. opn. of George, C.J.).) The three dissenting
justices believed that notwithstanding the jury's determination
that defendants' prior speech violated the FEHA, the injunction
prohibiting future speech was an impermissible prior restraint.
(Id. at pp. 175-176 (dis. opn. of Mosk, J.); id.
at pp. 176-177 (dis. opn. of Kennard, J.); id. at p. 193
(dis. opn. of Brown, J.).)
Justice Werdegar's concurrence emphasized that more
than just a finding of unlawfulness was required to enjoin the
speech. Although the injunction was content based (Aguilar,
supra, 21 Cal. 4th at p. 164 (conc. opn. of Werdegar, J.).)
the concurring opinion found it was justified by analogy to a
permissible time, place, and manner regulation in that it was
aimed at relieving a captive audience of unwanted communications
and was limited to the workplace, allowing the speakers ample
opportunity to express themselves elsewhere. (Id. at p.
169 (conc. opn. of Werdegar, J.).) The concurrence also emphasized
the balancing of competing constitutional values-freedom of speech,
equal protection of the laws, and our state Constitution's additional
protection against racial discrimination in the workplace. (Id.
at p. 167 (conc. opn. of Werdegar, J.) and see U.S. Const.,
14th Amend.; Cal. Const., art. I, § 7, subd. (a), §
8.) At least in Justice Werdegar's view, the injunction was permissible
not only because the jury had determined the speech was a violation
of FEHA, but also because the injunction was designed to advance
values equal in dignity to the constitutional value of free speech.
(Aguilar, supra, 21 Cal.4th at p. 168 (conc. opn. of Werdegar,
J.).)
None of the reasoning used to support the injunction
in Aguilar applies in this case.[FOOTNOTE 11] We cannot
view paragraphs 1 and 3 as content neutral or even as acceptable
content-based time, place, and manner restrictions. These paragraphs
prohibit publications based upon their content and do not purport
to limit that regulation in terms of time, place, or manner.
Rather, they prohibit the written communications anytime, anywhere.
Defendants are left with no alternative means of communication
on those subjects.
It is also important that the instant injunction prohibits
defamation rather than racial epithets that create a hostile
work environment. Although the state's interest in securing compensation
for defamation plaintiffs is strong and legitimate, that interest
does not rise to a legislatively declared public policy or a
constitutionally embedded right such as that expressed by the
FEHA. And the nature of defamation law makes it difficult if
not impossible to craft an injunction based upon an adequate
determination that any future publications will be constitutionally
unprotected. In fact, it is not entirely clear that defamatory
speech may be enjoined even after a judicial determination that
the speech is defamatory. Our review has disclosed only a handful
of cases upholding such injunctions. (Advanced Training Sys.
v.Caswell Equip. Co. (Minn. 1984) 352 N.W.2d 1 (Advanced
Training) [injunction prohibiting publication of defamatory books];
Retail Credit Company v. Russell(Ga. 1975) 218 S.E.2d
54, 62 (Retail Credit) [injunction restraining credit
reporting company from publishing the exact allegations found
to have been libelous by the jury].)[FOOTNOTE 12]The rule
is not universally embraced. (See Metropolitan Opera Ass'
n, Inc. v. Local 100, supra, 239 F.3d 172, 178-179 remarking
that the Second Circuit has not adopted a rule permitting a libel
to be subject to an injunction once its libelous character has
been adjudicated; and see Willing v. Mazzocone (Pa. 1978)
393 A.2d 1155 reaffirming the common law rule that the remedy
for defamation is an action for damages.) Indeed, the United
States Supreme Court has never applied the "adequate determination"
rubric to a case involving defamatory speech.
One of the reasons for the law's reluctance to enjoin
defamation is the difficulty of determining in advance whether
or not a particular publication will be defamatory. It has only
been in cases where that determination may be made with some
reliability that injunctions prohibiting defamation have been
upheld. For example, Advance Training prohibited certain books;
RetailCredit prohibited the "exact allegations"
the credit reporting agency had previously published. In both
cases there was a judicial determination not only that the statement
was untrue, but also that the context rendered it defamatory.
Such injunctions do not suffer from the problem at hand. That
problem is that paragraphs 1 and 3 do not prohibit exact statements
under the circumstances in which the court found them to be defamatory.
These paragraphs prohibit statements that have not yet been composed.
Here we have a list of facts that the court determined
to be defamatory in the context in which they had previously
been published. Paragraph 1 then prohibits the use of these facts
in new statements "that defame any person . . . in any of
the ways specified." By limiting its prohibition to statements
that "defame," the trial court intended to limit the
restriction to unlawful conduct. But such a restriction does
not amount to an advance determination that the prohibited speech
will be defamatory because it does not take into account the
context in which the future statement will be made. As we explained
above, whether a statement is defamatory depends upon the forum,
the form of the statement, and the context in which it is published.
This is true even if we presume the court intended only to prohibit
statements that would be libel per se. In order to be libel per
se, a statement must assert or imply the libelous statement as
a fact and we cannot assess that point until the statement is
published. Were we to approve the restriction incorporated in
paragraphs 1 and 3, plaintiffs would still have to obtain a judicial
determination of the defamatory nature of each new statement
because we cannot determine in advance whether any particular
statement will be defamatory. That is the special vice to which
Pittsburgh Pressreferred.
In summary, paragraphs 1 and 3 do not seek to protect
a compelling state interest such as that expressed by the FEHA;
they do not incidentally restrict speech with reasonable time,
place, and manner regulations, and they cannot rest upon an adequate
determination that the prohibited future speech will be "unprotected."
Accordingly, we conclude that paragraphs 1 and 3 are unconstitutional
prior restraints.
We recognize that part of the difficulty in drafting
an appropriate injunction in this case stems from defendants'
own egregious conduct. But to paraphrase Justice Brown's remarks
in her dissent inAguilar, this is not an all-or-nothing
choice between either upholding the injunction or subjecting
plaintiffs to a constant stream of libel. (Aguilar, supra,
21 Cal.4th at p. 193 (conc. opn. of Brown, J.).) The jury awarded
plaintiffs damages, both compensatory and punitive. It is hard
to imagine that after suffering the financial burden of their
prior conduct defendants will choose to continue it. If they
do, they of course run the risk of paying a second award.[FOOTNOTE
13]
Paragraph 6
Paragraph 6 prohibits the posting of financial information
about any Varian executive or employee along with the address
of the person's residence or the names or locations of his or
her family members. Defendants argue that this restriction is
also an impermissible prior restraint. We disagree.
We first consider whether Paragraph 6 is content neutral.
In determining whether a restriction that burdens speech is content
neutral, the government's purpose in enacting the restriction
is the controlling consideration. (Ward v. Rock Against Racism
(1989) 491 U.S. 781, 791.) "[L]iteral or absolute content
neutrality" is not necessary. (Los Angeles Alliance for
Survival v. City of Los Angeles (2000) 22 Cal.4th 352, 368.)
A restriction is content neutral if it is "' justified without
reference to the content of the regulated speech.' "(Id.
at p. 367, quoting Clark v. Community for CreativeNon-Violence
(1984) 468 U.S. 288, 293.)
Paragraph 6 is content neutral. It may be justified
without reference to the content of the statements. Content-whether
the location of a person's home or the place where soccer practice
will be held-is immaterial to the restriction. The trial court
found that it was the juxtaposition of the information that presented
a danger to the subjects of those postings. The court's purpose
in issuing this part of the injunction was to prevent defendants
from placing plaintiffs in danger and causing them fear in their
daily lives.
A content-neutral injunction is permissible if it burdens
no more speech than necessary to serve a significant government
interest. (Madsen, supra,512 U.S. at p. 765.) Paragraph
6 serves the significant government purpose of protecting the
safety and well being of plaintiffs and it does not prevent expression
in the way paragraphs 1 and 3 do. Defendants may still post the
information; they just cannot post it in the same place. Thus,
paragraph 6 meets the Madsen standard and is permissible
for that reason.
2. May the Injunction Grant Relief to Non-Parties?
Defendants also contend that the injunction impermissibly
grants relief to persons who were not joined as parties to the
lawsuit. Plaintiffs contend that the injunction necessarily must
apply to third parties in order to afford complete relief. We
agree with defendants.
"For over 50 years California has recognized that
a judgment may not be entered either for or against one who is
not a party to an action or proceeding. [Citations.]" (Bronco
Wine Co. v. Frank A. Logoluso Farms (1989) 214 Cal.App.3d
699, 717.) The rule is based upon the fundamental considerations
of due process. (Lambert v. California (1957) 355 U.S.
225, 228; Twining v. New Jersey (1908) 211 U.S. 78, 110-111.)
"Without jurisdiction over the parties, an in personam judgment
is invalid." (Bronco Wine Co. v. Frank A. Logoluso
Farms, supra, 214 Cal.App.3d at p. 717.) Accordingly, the injunction
is invalid to the extent it applies to any persons not joined
as parties to the instant lawsuit.[FOOTNOTE 14]
E. Jurisdiction
In October 2000, after litigating for more than a year
and a half, defendants filed their anti-SLAPP motions. (Code
Civ. Proc., § 425.16.) The superior court denied the motions
on the grounds that they were untimely, that defendants' acts
did not involve the exercise of a constitutional right in connection
with a public issue, and that plaintiffs had demonstrated a probability
of prevailing at trial. Defendants appealed that decision but
they were unsuccessful in acquiring a stay of the proceedings.
Their request for a stay was rejected by the trial court and
by this court. The Supreme Court denied defendants' petition
for review of our order denying the stay. The matter proceeded
to judgment before the appeal was decided. Following entry of
judgment we dismissed the first appeal as moot.[FOOTNOTE 15]
On appeal from the judgment defendants now argue that
the entire action was automatically stayed by operation of Code
of Civil Procedure section 916, subdivision (a) and that as a
result the trial court lacked subject matter jurisdiction and
the judgment is void. (Betz v. Pankow (1993) 16 Cal.App.4th
931, 938.)
The general rule is that "filing of a valid notice
of appeal vests jurisdiction of the cause in the appellate court
until determination of the appeal." (People v.Perez
(1979) 23 Cal.3d 545, 554.) Code of Civil Procedure section 916,
subdivision (a) states that perfecting an appeal automatically
"stays proceedings in the trial court upon the judgment
or order appealed from or upon the matters embraced therein or
affected thereby" but that "the trial court may proceed
upon any other matter embraced in the action and not affected
by the judgment or order." (Italics added.) The question
is whether trial on the merits of the plaintiffs' lawsuit is
a matter that is affected by an order denying an anti-SLAPP motion.
We do not believe that it is.
"' The purpose of the rule depriving the trial
court of jurisdiction during the pending appeal is to protect
the appellate court's jurisdiction by preserving the status quo
until the appeal is decided. The rule prevents the trial court
from rendering an appeal futile by altering the appealed judgment
or order by conducting other proceedings that may affect it.
[Citation.] Accordingly, whether a matter is "embraced"
in or "affected" by a judgment within the meaning of
[Code of Civil Procedure] section 916 depends upon whether postjudgment
trial court proceedings on the particular matter would have any
impact on the "effectiveness" of the appeal. If so,
the proceedings are stayed; if not, the proceedings are permitted.'
(Elsea v. Saberi (1992) 4 Cal.App.4th 625, 629.)"
(In re Marriage of Varner (1998) 68Cal.App.4th 932, 936
(Varner).) An exception to this loss of jurisdiction is recognized
as to matters that are collateral or supplemental to the questions
involved on the appeal. (People v. Schulz (1992) 5 Cal.App.4th
563, 570-571.) Where the exception applies, the appellate court
has discretion to halt the proceedings below by writ of supersedeas.
(Reed v. Superior Court (2001) 92 Cal.App.4th 448, 453
(Reed).)
Betz v. Pankow, supra, 16 Cal.App.4th 931 exemplifies
the general rule. Betzheld that the trial court lacked
jurisdiction to vacate a judgment while the appeal from the judgment
was pending. (Id. at p. 938.) If the trial court had power
to vacate the judgment, the appeal would have been futile because
subsequent enforcement would have been impossible without a judgment
to enforce.
Varner provides another example. Varner held
that the trial court lacked jurisdiction to terminate its own
jurisdiction over spousal support orders while an appeal from
its order refusing to vacate the community property division
was pending. (Varner, supra, 68 Cal.App.4th at p. 936.)
If the appellant succeeded in reversing the community property
division, reallocation of the community property could result
in changed circumstances that would justify a change in the spousal
support orders. If the trial court could eliminate its jurisdiction
over that issue, it would have no power to modify the support
orders on remand. (Id. at p. 937.)
In contrast, denial of an anti-SLAPP motion is a separate
matter from the merits of the lawsuit itself. Under Code of Civil
Procedure section 425.16, if a lawsuit arises out of the exercise
of free speech or petition, a defendant may move to strike the
complaint. (Beilensonv. Superior Court (1996) 44 Cal.App.4th
944, 949.) Code of Civil Procedure section 425.16 provides for
a two-step process to determine whether an action is a SLAPP.
(Navellier v. Sletten (2002) 29 Cal.4th 82, 88.) First,
the court decides whether the defendant has made a threshold
prima facie showing that the acts of which the plaintiff complains
were taken in furtherance of the defendant's constitutional rights
in connection with a public issue. If the court finds that such
a showing has been made, then the plaintiff will be required
to demonstrate that there is a probability that the plaintiff
will prevail on the claim. (Code Civ. Proc., § 425.16, subd.
(b)(1).) "Only a cause of action that satisfiesboth prongs
of the anti-SLAPP statute-i.e., that arises from protected speech
or petitioning and lacks even minimal merit-is a SLAPP,
subject to being stricken under the statute." (Navellier
v. Sletten, supra, 29 Cal.4th at p. 89.)
Where a defendant appeals the denial of an anti-SLAPP
motion, trial of the plaintiffs' action is not automatically
stayed because it would have no direct impact on an appeal from
the order. If the appeal is decided in defendants' favor prior
to judgment the matter will be dismissed. If the appeal is decided
in plaintiff's favor before judgment, the trial will proceed.
If the matter proceeds to trial before the appeal is decided
and defendant prevails at trial, the appeal may proceed and the
only effect the outcome could have on the judgment would involve
defendants' right to certain fees. (Code Civ. Proc., § 425.16,
subd. (c).) On the other hand, if plaintiffs prevail at trial
they have proven their probability of success and an appeal becomes
moot because the dispositive issue has been conclusively decided.
That is not to say that in some cases trialshould be stayed.
But we believe the question rests in the discretion of the trial
and appellate courts.
The most compelling support for our conclusion was articulated
in Reed, supra, 92 Cal.App.4th 448 where the court held
that an appeal from the denial of a motion to disqualify counsel
did not trigger the automatic stay of Code of Civil Procedure
section 916. Reedpointed out that "a reasonably persuasive
showing that the claim of disqualification likely has merit will
probably persuade the appellate court to stay the underlying
proceedings pending resolution of the disqualification issue.
[Citation.] Courts of Appeal understand that prejudice occurs
if the trial is not stayed pending an appeal of an arguably meritorious
claim of disqualification. [Citation.] [¶ ] In some cases,
however, the claim of disqualification will be insubstantial
or even frivolous. To hold that an appeal from an order denying
disqualification automatically stays the trial proceedings would
encourage the use of such motions and appeals merely to delay
the trial." (Reed, supra, 92 Cal.App.4th at pp. 455-456.)
The same rationale applies in the case where the trial
court denies an anti-SLAPP motion. Although the procedure was
designed to help defendants promptly rid themselves of meritless
lawsuits, where the underlying lawsuit has even minimal merit
the anti-SLAPP motion must be denied and the matter must be tried.
If the entire matter is automatically stayed upon appeal from
the denial of such a motion, defendants could misuse the motions
to delay meritorious litigation or for other purely strategic
purposes.
We recognize, as Reed did, that error is possible.
The appellate court might deny a writ of supersedeas, believing
the defendants' claim wholly lacked merit only to discover later
in deciding the appeal that the trial court was wrong and the
matter should have been dismissed. We believe that the benefit
of preventing such rare mistakes by automatically staying all
trials pending an appeal from an order denying an anti-SLAPP
motion is outweighed by the danger of encouraging meritless anti-SLAPP
motions and appeals as trial strategy to simply delay the trial
of meritorious cases. (See Reed, supra, 92 Cal.App.4th
at p. 456.) In conclusion, we hold that Code of Civil Procedure
section 916 did not automatically stay trial of the lawsuit in
this case and that therefore the trial court did not lack jurisdiction
to conduct the trial.[FOOTNOTE 16]
V. Defendants' Motion For Adjudication of Contempt
A. Background
After judgment was entered in February 2002, defendants
continued posting messages similar in tone and content to those
that formed the basis for the lawsuit. In response, plaintiffs
commenced contempt proceedings against defendants charging that
they were violating the injunction. The superior court issued
an order to show cause why the defendants should not be held
in contempt and defendants sought relief from this court. On
June 25, 2002 we issued a writ of supersedeas. In pertinent part,
we ordered: "Let a writ of supersedeas issue, staying, pending
this appeal, enforcement of the trial court judgment, including
all contempt proceedings and related discovery enforcing the
injunctive portion of the trial court judgment as well as all
proceedings to enforce the damages portion of the trial court
judgment."
Defendants have now written and self-published a book,
Be Careful Who You SLAPP. Plaintiffs became aware that
the Barnes & Noble website, bn.com, was taking orders for
the book and that local newspapers had begun advertising it.
On November 11, 2002 plaintiffs' counsel wrote to Barnes &
Noble alerting the bookseller to plaintiffs' concern that the
book contained defamatory matter. Specifically, plaintiffs' counsel
stated: "We write to notify you that Barnes & Noble
is offering for sale a book that may be defamatory." Counsel
enclosed a copy of the judgment, noting: "The Judgment has
not caused [defendants] to cease their defamatory and harassing
conduct. Indeed, the Superior Court has initiated contempt proceedings
against [defendants] for repeatedly violating the injunction,
but those proceedings have been stayed pending resolution of
the defendants' appeal of the judgment." Counsel explained
that she believed the book repeated some of the statements the
trial court had enjoined and that it may include new libels,
as well. The letter was to serve as notice to Barnes & Noble
that the book contained defamation.
Plaintiffs' counsel also contacted local newspapers
that had run defendants' advertisements. In correspondence to
the Palo Alto Weekly counsel stated: "I would appreciate
hearing from you as soon as possible to learn whether your newspaper
intends to pull the ad voluntarily in light of its defamatory
content as found in the attached judgment."
On January 8, 2003 defendants filed a motion in this
court asking us to find plaintiffs in contempt of our order staying
enforcement of the judgment. Defendants argued that plaintiffs'
efforts were an "end run" around the stay and constituted
contempt of this court's order on three theories: falsely pretending
to act under authority of the court (Code Civ. Proc., §
1209, subd. (a)4), abuse of process (ibid.), and disobedience
of a lawful judgment, order or process of the court. (Id.,
subd. (a)5.) We ordered the motion considered with the appeal.
B. Discussion
A court may exercise its contempt power when the person
against whom the judgment or order is rendered has notice of
the court's order and has the ability to comply, but willfully
refuses to do so. (See Board of Supervisors v. Superior
Court (1995) 33 Cal.App.4th 1724, 1736.) Punishment for contempt
may rest only upon a clear, intentional violation of a specific,
narrowly drawn order. The precise court orders as written are
what may be enforced. (Id. at p. 1737; and see Wilson v.
Superior Court (1987) 194 Cal.App.3d 1259, 1273.)
Where the alleged contempt is not committed in the immediate
presence of the court, "an affidavit shall be presented
to the court or judge of the facts constituting the contempt."
(Code Civ. Proc., § 1211, subd. (a).) "It is well established
in this state that the affidavit by which a contempt proceeding
is instituted, in order to sufficiently support an adjudication
of contempt, must state facts constituting the offense. Otherwise,
the court is without jurisdiction." (In re Ny (1962)
201 Cal.App.2d 728, 731.)
Reviewing defendants' affidavit according to these standards
we find that we have no jurisdiction to rule upon the motion.
Our order specifically stayed "enforcement of the judgment."
By staying enforcement of the judgment we did not deprive plaintiffs
of the right to act in the event they are further defamed. Nor
did we grant defendants a license to continue publishing defamatory
falsehoods or insulate them from liability for so doing. The
order merely prevented plaintiffs from attempting to collect
the damages awarded in this case and from pursuing contempt proceedings
based upon the injunction. It does not appear from defendants'
affidavit that plaintiffs have done that.
The fact that plaintiffs have attempted to halt that
which they believe to be further defamation does not constitute
an "end run" around the stay of enforcement. One who
plays a secondary role in disseminating information published
by someone else (such as a bookseller) is not liable for defamation
unless the person has reason to believe the information is libelous.
(Osmond v. EWAP, Inc. (1984) 153 Cal.App.3d 842, 852-853.)
By informing the booksellers and newspapers of their belief that
the information defendants were publishing was defamatory, plaintiffs
were merely taking steps to protect their reputations and to
ensure that further publication of the material would be actionable
if indeed it proved to be defamatory.
In conclusion, defendants' affidavit in support of their
motion does not allege facts constituting noncompliance with
our order staying enforcement of the judgment. Accordingly, we
have no jurisdiction to adjudicate the issue and the motion must
be dismissed.
VI. Disposition
The judgment of the superior court is modified to strike
the prohibition of future statements set forth in paragraphs
1 and 3 of the injunctive portion of the judgment and to strike
all relief granted to persons who were not parties to this lawsuit.
These modifications do not affect the trial court's factual finding
that defendants' prior statements about the persons and matters
listed in paragraph 1, subdivisions (a) through (w), were defamatory.
As so modified the judgment is affirmed. The writ of supersedeas
issued June 25, 2002 is vacated.
Defendants' motion for adjudication of contempt is dismissed.
The parties shall bear their own costs on appeal.
Premo, Acting P.J.
WE CONCUR: Elia, J., Wunderlich, J.
November 17, 2003 CALIFORNIA
::::::::::::::::::::::::::::: FOOTNOTE(S) :::::::::::::::::::::::::::::
FN1. Varian Associates, Inc. was the original corporate
plaintiff. Varian Associates, Inc. split into three companies
in April 1999 and was replaced as plaintiff by VMS and VSEA.
Unless the context of our discussion requires greater specificity,
we shall refer to the corporate plaintiffs as "Varian"
or "the Varian plaintiffs."
FN2. An Internet bulletin board is simply "a computerized
version of a cork and pin board on which users can post, read,
and respond to messages." (Jeremy Stone Weber, Defining
Cyberlibel: A First Amendment Limit for Libel Suits Against Individuals
Arising from Computer Bulletin Board Speech (1995) 46 Case
Western Reserve L.Rev. 235, 238.) Once a person is logged in
to an Internet bulletin board, the person may post messages,
respond to messages already posted, or simply read the discussions
without posting any of his or her own messages. (Id. at
p. 239.) Most such systems allow users to participate using pseudonyms
if they choose to do so. (Id. at p. 241.)
FN3. Plaintiffs included several business-related causes
of action in the original complaint based upon the fact that
defendants had formed MoBeta, Inc., a technology start-up, which
defendants regularly touted in their messages disparaging Varian.
MoBeta, Inc. was never named as a defendant and the business-related
causes of action were eventually dismissed or abandoned.
FN4. The contract claim was tried on the theory that
plaintiffs were third party beneficiaries of the contract between
Yahoo! and defendants. The jury decided that defendants had breached
the contract but that plaintiffs had not suffered any damages.
Defendants now argue that the damages portion of the judgment
may not rest upon the contract cause of action. Because we find
no error with respect to the tort causes of action we do not
reach this issue.
FN5. The court instructed the jury: "A statement,
if untrue, is defamatory on its face if it asserts or implies
as a fact any of the following:
"1. that a person committed a crime;
"2. that a person has a personal trait or engaged
in conduct that would tend directly to injure the person with
respect to his or her profession, trade or business either by
impuning [sic] to him or her general disqualification
in those respects which the profession, trade or business particularly,
peculiarly requires or by impuning [sic] something with
reference to his or her profession, trade or business that has
a natural tendency to lessen its profits;
"3. that a person is impotent;
"4. that a person is an adulterer, that is, that
he or she engages in sexual affairs outside of marriage;
"5. that a person has attained his or her professional
position by having sex with a supervisor;
"6. that a person is a liar or a chronic liar or
has committed perjury;
"7. that a supervisor discriminates against other
persons on the basis of race, gender, prejudices such as sexual
orientation or similar characteristics;
"8. that a person has engaged in sabotage or intentionally
caused damage in the workplace,
"9. that a person engaged in sexual harassment;
"10. that a person has created a hostile work environment
due to sexual misconduct;
"11. that a person has stalked another person."
FN6. Defendants also contend that plaintiffs wrongly
tried their invasion of privacy claim on a theory of appropriation
of name rather than false light. Plaintiffs point out that aside
from failing to raise the issue, defendants submitted proposed
jury instructions on appropriation of name and none on false
light and agreed to the special verdict form that required findings
on only the issues raised by the claim of appropriation of name.
We believe that the question is not so simply a question of law
as is the libel/slander question. Nor does it involve a matter
of public concern. Therefore, since defendants failed to preserve
this issue and effectively invited the error by their own request
for jury instructions we shall decline to consider it. (See Stevens
v. Owens-Corning Fiberglas Corp. (1996) 49 Cal.App.4th 1645,
1653.)
FN7. We reject plaintiffs' contention that defendants
waived this issue by failing to object to the instruction. Defendants
requested two instructions that included the public figure standard
and the trial court refused both. Accordingly, the issue was
preserved by operation of Code of Civil Procedure section 647,
which provides that an objection to any order "giving an
instruction, refusing to give an instruction, or modifying an
instruction requested" is never waived.
FN8. Defendants' reliance upon Global Telemedia
Intern., Inc. v. Doe 1(C.D.Cal. 2001) 132 F.Supp.2d 1261
is misplaced. That case concerned whether allegedly libelous
statements were made "' in connection with an issue of public
interest' "within the meaning of Code of Civil Procedure
section 425.16, subdivision (e). (Global Telemedia Intern.,
Inc. v. Doe 1, supra, 132 F.Supp.2d. at p. 1265.) There was
no consideration of whether the company was a public figure for
purposes of New York Times analysis.
FN9. We do not make an independent inquiry to extract
an error defendants fail to specify. (See California Viking
Sprinkler Co. v. Cheney (1960) 182 Cal.App.2d 564, 571.)
FN10. Subparagraphs (a)-(w )of paragraph 1 are as follows:
"a. that [Felch and Zdasiuk] is or was a liar or
chronic liar;
"b. that [Felch and Zdasiuk] Richard Aurelio, Richard
Levy, or any of their spouses has engaged in adultery or extramarital
affairs or is or was sexually promiscuous;
"c. that [Felch and Zdasiuk] or James Fair is or
was a danger to children or others;
"d. that [plaintiffs or any of their agents] videotaped
children or videotaped any bathroom, restroom, lavatory or similar
place, or videotaped any person inside any such place, or videotaped
any activity inside any such place, . . . ;
"e. that James Fair is or was homosexual;
"f. that [Felch and Zdasiuk] is or was mentally
unstable or mentally ill or suffers from hallucinations;
"g. that Susan Felch sabotaged a PLAD experiment
or process or any other experiment or process at her employment;
"h. that Susan Felch had a semen stain on her dress
or other clothing or had sex with a supervisor;
"i. that Megan Gray said that Susan Felch had a
semen stain on her dress or other clothing or had sex with a
supervisor;
"j. that [Felch and Zdasiuk] stalks other persons,
. . . ;
"k. that George Zdasiuk is or was homophobic;
"l. that George Zdasiuk discriminates on the basis
of gender or pregnancy;
"m. that George Zdasiuk has stared at or regularly
stares at female employees' breasts or chest in the court [sic]
of his employment;
"n. that [the Varian plaintiffs or their agents]
produced pornography in the workplace . . . . ;
"o. that any present or former officer, director,
or employee of [the Varian plaintiffs] sent pornography to or
forced pornography on any of those companies' present or former
employees, . . . ;
"p. that Richard Levy or Richard Aurelio has lied
under oath or has committed perjury or is being or has been investigated
for perjury;
"q. that Megan Gray is or was a liar;
"r. that [the Varian plaintiffs or their agents]
violated company policies, except that certain written performance
reviews were not timely prepared by some managers;
"s. that [the Varian plaintiffs or their agents]
destroyed evidence in this case or wrongfully reused the tapes
used in connection with the cameral [sic] that was placed
in Susan Felch's office in 1998;
"t. that George Zdasiuk is or was an alcoholic
or a drunk, or that he habitually drinks or is intoxicated, or
that he was drunk or intoxicated at work or during any deposition
or other court proceeding;
"u. that George Zdasiuk was not upset by the death
of his sister, or by the death of his father, or by the World
Trade Center disaster on September 11, 2001;
"v. that [the Varian plaintiffs or their agents]
created, fostered, supported, or permitted the existence of a
hostile work environment, or that a hostile work environment
existed at Varian; or
"w. that [Felch and Zdasiuk] harassed [defendants],
or any other person, either in the workplace or elsewhere."
FN11. We are also mindful that Aguilarwas a
plurality opinion and is not controlling precedent. (Board
of Supervisors v. Local Agency Formation Com. (1992) 3 Cal.4th
903, 918.)
FN12.. Lothschuetz v. Carpenter (6th Cir. 1990)
898 F.2d 1200 is frequently cited in support of the proposition
that such injunctions are acceptable. That case involved the
defendant's letter-writing campaign against the plaintiffs. The
trial court refused to issue an injunction in spite of the fact
the jury found the letters to be defamatory. In a split decision,
the appellate court held that under the circumstances of defendant's
"frequent and continuing defamatory statements" an
injunction prohibiting the particular speech found to be defamatory
was necessary to prevent future injury. (Id. at pp. 1208-1209.)
Because the court did not have occasion to rule upon a particular
injunction, the case may be said to stand only for the general
proposition that such orders could be constitutional. It provides
no guidance as to the permissible scope of any such order. (See
also O' Brien v. University Community Tenants Union (1975)
327 N.E.2d 753.)
FN13.;. Defendants contend, without reference to controlling
authority, that the injunction improperly deprives them of the
right to a jury determination of that which is defamatory. (See
Kramer v. Thompson (3rd Cir. 1991) 947 F.2d 666, 672,
fn. 15.) Given our conclusion that paragraphs 1 and 3 must be
stricken, we need not reach the question.
FN14. Plaintiffs argue that Civil Code section 3422
generally authorizes the injunction because defendants breached
a duty to plaintiffs under the common law and under Business
and Professions Code section 17200. It is axiomatic that the
provisions of the statutory or common law cannot abrogate defendants'
due process and free speech rights under the United States or
California Constitutions. Accordingly, we decline to consider
the point.
FN15. We have taken judicial notice of the record in
defendants' first appeal (Varian Medical Systems, Inc., et
al. v. Delfino et al. (Feb. 29, 2002) H022233 [nonpub. dism.]).
FN16. Until recently no published case had considered
the question of whether Code of Civil Procedure section 916 automatically
stayed an action when the defense appealed an order denying an
anti-SLAPP motion. After we denied defendants' petition for writ
of supersedeas in this case, Mattel, Inc. v. Luce, Forward,
Hamilton & Scripps(2002) 99 Cal.App.4th 1179 (Mattel)
held that the automatic stay applied in such a case. The alleged
SLAPP in Mattel was a lawsuit consisting of a single cause
of action for malicious prosecution. Since the anti-SLAPP motion
involved the merits of the single cause of action and the appeal
involved the same issue,Mattel held that the appeal "embraces
the entirety of the action" and therefore trial on the merits
was automatically stayed. (Id. at p. 1190.) To the extent
that Mattel may be read as holding that trial is automatically
stayed in all cases where defendants have appealed the denial
of an anti-SLAPP motion, we respectfully disagree.
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