Preemption, SLAPP: Cartwright Act’s Unilateral Fee-Shifting Provision In Favor Of Prevailing Plaintiffs Did Not Override SLAPP Fee-Shifting In Favor Of Partially Prevailing Defendants

No Implied Override Was Found Appropriate By Appellate Court.

            Plaintiff brought a Cartwright Act lawsuit against 11 defendants, some of whom were partially successful on anti-SLAPP motions—with the SLAPP statute allowing for mandatory fee awards to prevailing defendants. The rub here was that the Cartwright Act only has a unilateral fee-shifting provision in favor of prevailing plaintiffs. The trial judge decided that the Cartwright Act did not override the SLAPP fee-shifting statute, granting one defendant $23,120 in SLAPP fees which was the subject to an appeal.

            The First District, in Richmond Compassionate Care Collective v. 7 Stars Holistic Foundation, Case No. A154581 (1^st Dist., Div. 2 March 15, 2019) (published), found no basis to disturb the fee recovery given that the Cartwright Act case principally relied on by appealing plaintiff was not a SLAPP action. It could find nothing to suggest the Legislature intended an implied repeal of SLAPP fee recovery even though the underlying substantive claim arose under the Cartwright Act.

            BLOG OBSERVATION—The merits of the case involved a medical marijuana collective permit which was lost by plaintiff; we assume with the legalization of pot that more cases of this nature will arise in the future.