Manhattan Loft, LLC v. Mercury Liquors, Inc.

This appeal arises out of a storied real estate transaction. Plaintiff and appellant Manhattan Loft, LLC (appellant), purchased certain real property from Sixth & Spring, LLC, subject to an existing lease for a portion of the basement and first floor to Mercury Liquors, Inc. (Mercury). A dispute arose, prompting those with an interest in the lease to commence two arbitration proceedings against appellant. In connection with the arbitration proceedings, the client respondents, through their counsel, respondents Alschuler Grossman Stein & Kahan and Bingham McCutchen (collectively the attorney respondents), recorded two notices of pending actions against the subject property.

Following the client respondents’ favorable arbitration award, appellant filed suit against respondents for slander of title, claiming that they erred in filing the notices of pending action. Respondents filed a special motion to strike appellant’s complaint pursuant to Code of Civil Procedure section 425.16, California’s anti-SLAPP statute. The trial court granted respondents’ motion, and appellant appeals, presenting us with the following legal question: Can a party to a pending arbitration record a…