Rastegar & Matern v. Matern Law Group CA2/4

INTRODUCTION

This action involves a dispute over attorneys’ fees awarded in a class action lawsuit. Matern Law Group (MLG) and Matthew Matern (Matern) (collectively, defendants) appeal from an order denying their special motion to strike the complaint under Code of Civil Procedure section 425.16, the anti-SLAPP statute.1 Defendants also separately appeal from an order awarding sanctions against them for filing a frivolous anti-SLAPP motion.2 We conclude defendants did not meet their burden of demonstrating the conduct forming the basis of the underlying complaint involved protected activity within the meaning of section 425.16, and the trial court did not abuse its discretion by awarding sanctions. Accordingly, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

A. The Complaint’s Allegations The complaint alleges the following facts. In 1992, Matern and Farzad Rastegar (Rastegar) founded a general partnership, which was the predecessor of plaintiff Rastegar & Matern, Attorneys at Law, APC (R&M). Rastegar and Matern founded R&M in 1999, replacing the prior general partnership. Matern and Rastegar were at all times relevant equal shareholders, directors, and officers of R&M.…