People ex rel. 20th Century Ins. Co. v. Bldg. Permit Consultants, Inc.

*282 Opinion

Building Permit Consultants, Inc., and John Kaldawi appeal from an order denying a special motion to strike an action as a “SLAPP” (strategic lawsuits against public participation) suit. We affirm the order of the trial court.

Factual and Procedural Background

The underlying lawsuit is brought by 20th Century Insurance Company. Defendant Building Permit Consultants is a company assisting individuals in compiling and preparing repair estimates. Defendant John Kaldawi is the owner of the company.

The following is alleged in the complaint. Defendants were part of a scheme to increase the amount of money 20th Century paid to defendants’ clients who suffered damage from the Northridge earthquake of January 17, 1994. Defendants “cold called” and sent direct mail to large numbers of homeowners in the Northridge area after the earthquake. Defendants persuaded homeowners to enter into allegedly illegal contracts by which defendants were to receive up to 50 percent of the insurance proceeds recovered from the homeowners’ claims. Defendants then prepared damage and repair estimates, expert reports, billings, and other documents for use in support of filing allegedly false…