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(A version of this article appears in the California Construction
Law Reporter, published by the West Group.)
By James E. Acret
Plaintiff
alleged that defendant Building Permit Consultants, Inc.
participated in a scheme to extract earthquake damage payments
from the plaintiff based on false reports and estimates.
The complaint alleged that defendant cold-called and solicited
by direct mail Northridge (California) area homeowners after
the 1994 earthquake and persuaded them to sign sham contracts
under which defendant would receive up to 50 percent of
insurance proceeds recovered on fraudulent claims.
Defendant
allegedly prepared false repair estimates, expert reports,
billings and other documents used to support the claims.
Plaintiff alleged that defendant referred homeowners to
attorneys who were instructed to file litigation and advance
the fraud. Defendant filed a special motion to strike the
complaint under Code of Civil Procedure §425.16, the
anti-SLAPP statute. The trial court denied the motion. Affirmed.
The People ex rel. 20th Century Insurance Company v.
Building Permit Consultants, Inc., ___ Cal.App.4th ___,
___ Cal.Rptr.2d ___, 2001 Daily Journal D.A.R. 561 (2001)
The
purpose of the anti-SLAPP (strategic lawsuit against public
policy) statute is to prevent chilling of public participation
in matters of public significance through the abuse of the
judicial process. Defendant argued that the plaintiff improperly
chilled its free speech rights by attacking cold-calling
and direct mail solicitation of homeowners. Discussion of
this point was conclusionary and unsupported by authority,
and therefore, the issue was deemed abandoned. The statute
only protects statements made in connection with legislative,
executive or judicial proceedings. Here, while some of the
reports and estimates ultimately were used in judicial proceedings,
they were not in progress when defendant allegedly created
and submitted them. If all reports and claims were protected
because they eventually could be used in connection with
litigation, it effectively would provide immunity for any
kind of criminal fraud so long as the defrauding party was
willing to take its cause to court.
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