Peninsula Guardians, Inc. v. Peninsula Health Care District

Peninsula Guardians, Inc. (plaintiff), an incorporated public interest group, filed an amended complaint alleging defendant Peninsula Health Care District (District) made campaign expenditures prohibited by Stanson v. Mott (1976) 17 Cal.3d 206 [ 130 Cal.Rptr. 697 , 551 P.2d 1 ] (Stanson), in connection with a ballot measure that authorized the construction of a new hospital. In a prior appeal, we affirmed the trial court’s dismissal of plaintiff’s other claims related to the hospital project, but remanded to allow plaintiff to amend its complaint to assert a Stanson claim. (See Peninsula Guardians, Inc. v. Peninsula Health Care Dist. (2008) 168 Cal.App.4th 75 [ 85 Cal.Rptr.3d 253 ] [certified for partial publication].) Subsequently, our Supreme Court decided Vargas v. City of Salinas (2009) 46 Cal.4th 1 [ 92 Cal.Rptr.3d 286 , 205 P.3d 207 ] (Vargas), in which it reaffirmed the Stanson rule that government entities generally may not use public funds to pay for campaign activities, but may use such funds to make available informational materials relating to an election. (See Vargas , pp. 24-25, 33-34; Stanson , pp. 219-222.)

District filed a special motion to strike…