Applied Business Software, Inc. v. Pacific Mortgage Exchange, Inc.

This is an appeal from an order denying a defendant’s special motion to strike the plaintiff’s complaint. The motion was brought under Code of Civil Procedure section 425.16, the anti-SLAPP statute (section 425.16; SLAPP—strategic lawsuit against public participation). The motion was denied because the trial court determined that the acts of defendant on which the complaint is based were not acts taken by defendant in furtherance of defendant’s rights of petition or free speech. (§ 425.16, subd. (b)(1).) Based on that determination, the court concluded it did not need to make a finding on the probability of plaintiff prevailing in the suit. (Ibid.) We find no error in the trial court’s analysis. We cannot conclude, however, that this appeal was frivolous and we therefore will deny plaintiff’s motion for sanctions against defendant.

FACTUAL AND PROCEDURAL BACKGROUND

1. The Underlying Federal Suit

Applied Business Software, Inc., is the plaintiff in this case. The defendant is Pacific Mortgage Exchange, Inc. The case stems from a federal lawsuit in which plaintiff sued defendant for copyright infringement, breach of contract and unfair competition in connection with…