United States Fire Insurance Co. v. Sheppard, Mullin, Richter & Hampton LLP

I. INTRODUCTION

Respondent United States Fire Insurance Company (U.S. Fire) sued to enjoin appellant Sheppard, Mullin, Richter & Hampton LLP (Sheppard Mullin) from representing an informal committee of asbestos creditors, together with that committee’s law firms, in a pending action to which U.S. Fire is a party, entitled Plant Insulation Co. v. Fireman’s Fund Ins. Co. (Super. Ct. S.F. City and County, 2006, No. CGC-06-448618) (Plant Litigation). U.S. Fire claims that Sheppard Mullin has a disqualifying conflict of interest arising out of Sheppard Mullin’s former representation of U.S. Fire in the matter of Kelly-Moore Paint Co., Inc. v. Liberty Mutual Ins. Co. (Super. Ct. S.F. City and County, 2009, No. CGC-01-325147) (Kelly-Moore Litigation).

Sheppard Mullin filed a special motion to strike the complaint (a so-called anti-SLAPP motion (strategic lawsuit against public participation)) pursuant to Code of Civil Procedure section 425.16 (section 425.16), contending that its legal representation in the Plant Litigation is protected activity, and U.S. Fire cannot show a probability that it would succeed on the merits of its claim. The trial court concluded that this action…