A.F. Brown Electrical Contractor, Inc. v. Rhino Electric Supply, Inc.

Defendants Rhino Electric Supply, Inc., and Tom Bentele appeal the trial court’s denial of their special motion to strike brought under the anti-SLAPP statute (Code Civ. Proc., § 425.16). Defendants contend their filing of a stop notice and other debt collection efforts constituted acts “in furtherance of the person’s right of petition or free speech under the United States or California Constitution in connection with a public issue,” (§ 425.16) and were absolutely privileged under the litigation privilege of Civil Code section 47, subdivision (b). Defendants also contend plaintiff A.F. Brown Electrical Contractor, Inc., (Brown) failed to demonstrate a probability of success because its evidence of damage is based solely on hearsay statements.

Accordingly, the defendants contend the trial court erred by not striking Brown’s lawsuit for libel, slander, and unfair business practices.

We reject defendants’ argument their actions were absolutely privileged as a matter of law. Defendants failed to demonstrate that they made the challenged communications in connection with potential litigation that was given serious consideration and contemplated in good faith. Because…