Oren Royal Oaks Venture v. Greenberg, Bernard, Weiss & Karma Inc.

In this case we must determine what role the statutory “privilege” for statements made in the course of a judicial proceeding (Civ. Code, § 47, subd. 2 [hereafter § 47(2)]) 1 plays in an abuse of process action. In particular, we must decide whether section 47(2) precludes a court from making evidentiary use of statements made during negotiation sessions in determining whether a defendant in an abuse of process action acted for an improper “ulterior” purpose.

As we shall explain, we conclude that section 47(2) does not bar the evidentiary use of such statements to establish the motive with which a defendant in an abuse of process action acted. As we further explain, however, we additionally conclude that even though the alleged statements in question here could properly be considered for their evidentiary value on the issue of motive, the facts alleged in the complaint and set forth in the declarations on the summary judgment motion are nonetheless insufficient to support an abuse of process action. Accordingly, we affirm the trial court’s summary judgment in favor of defendants.

I

In the late 1970’s, plaintiff Oren Royal Oaks Venture (Oren), a limited partnership,…

I concur in the judgment, but I would reach the result by relying on the well-reasoned opinion in Asia Investment Co. v. Borowski (1982) 133 Cal.App.3d 832 [ 184 Cal.Rptr. 317 , 30 A.L.R.4th 561 ]: the reception into evidence of statements made by the parties or counsel during the course of settlement negotiations is clearly contrary to the provisions and fundamental purpose of the privilege contained in Civil Code section 47, subdivision 2. This court unanimously denied a hearing in that case.

Though arguably merely dictum, the discussion of the majority may serve to inhibit the forthright interchange essential for successful settlement negotiations. In order to avoid a subsequent action for abuse of process, or some similar cause of action, the parties and particularly the lawyers hereafter may be unduly guarded, rather than free and open, in discussions designed to prevent or terminate litigation. Such a result ill-serves the strong public interest in the settlement of controversies.

*1171 Those who seek to strictly enforce the California Environmental Quality Act have a variety of motivations. Some sue for aesthetic considerations, some out of concern for the effect on flora…

In this case we must determine what role the statutory "privilege" for statements made in the course of a judicial proceeding (Civ. Code, § 47, subd. 2 [hereafter § 47(2)]) [1] plays in an abuse of process action. In particular, we must decide whether section 47(2) precludes a court from making evidentiary use of statements made during negotiation sessions in determining whether a defendant in an abuse of process action acted for an improper "ulterior" purpose.

As we shall explain, we conclude that section 47(2) does not bar the evidentiary use of such statements to establish the motive with which a defendant in an abuse of process action acted. As we further explain, however, we additionally conclude that even though the alleged statements in question here could properly be considered for their evidentiary value on the issue of motive, the facts alleged in the complaint and set forth in the declarations on the summary judgment motion are nonetheless insufficient to support an abuse of process action. Accordingly, we affirm the trial court's summary judgment in favor of defendants.

In the late 1970's, plaintiff Oren Royal Oaks Venture (Oren), a limited…