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In the Superior Court of the State of California

In and for the County of San Mateo

 

Presiding Judge - Law and Motion Calendar

Judge: Honorable beth labson freeman, acting presiding judge

Department 3

 

400 County Center, Redwood City

Courtroom 2L

 

JUly 29, 2009

 

If you plan to appear on any case on this calendar,

 you must call (650) 363-4805 before 4:00 p.m.

 

Case          Title / Nature of Case

9:00

6

CIV 484400       MARTIN EBERHARD VS ELON MUSK

 

MARTIN EBERHARD                             YOSEF PERETZ

ELON MUSK                                         GARY M. GANSLE

 

MOTION FOR SPECIAL MOTION TO STRIKE PORTIONS OF COMPLAINT AS SLAPP (CCP §425.16) FILED BY ELON MUSK AND TESLA MOTORS, INC.

·         The “Statement of Intent to Introduce Oral Testimony” submitted by Plaintiff is not referenced in CRC 3.1306(b). To the extent that the Court considers said Statement of Intent to Introduce Oral Testimony to constitute the required Request to Introduce Oral Testimony, the request to introduce oral testimony is DENIED.  The Plaintiff has not shown the “nature and extent” of the proposed testimony, a “reasonable time estimate for the hearing” thereof, and has not in any other way made the required good cause showing  that is a prerequisite for such oral testimony.  The determination of the Motions submitted will be based upon the evidence presented by declarations submitted with the Motions.   

·         Plaintiff’s evidentiary objections are OVERRULED as to Objections Nos.  1-30, 32-33 and SUSTAINED as to Objection Nos. 31 and 34.

·         Defendants’ evidentiary objections are OVERRULED as to Objections Nos. 1-18, 20-26, 28-35, 37-45, 48-115, 118-143 and SUSTAINED as to Objection Nos. 19, 27, 36, 46-47 and 116-117.

·         Plaintiff’s request for judicial notice is GRANTED.

·         The Court must undertake a two-step process in determining the merits of a SLAPP motion.  First, the Court must decide if the Defendants have made a threshold showing that the challenged causes of action arose from protected activity. If the Defendants fail to satisfy this burden, the challenged causes of action are not subject to a motion to strike.  If the Court finds such a showing has been made, it must then determine whether the Plaintiff has demonstrated a probability of prevailing on the claims. (Clark v. Mazgani (2009) 170 Cal.App. 4th 1281, 1286.)  Only causes of action that satisfy both prongs of the anti-SLAPP statute—i.e., that arise from protected speech or petitioning and lacks even minimal merit—is a SLAPP, subject to being stricken under the statute. (Navellier v. Sletten (2002) 29 Cal. 4th 82, 89.)  Only a minimal showing of merit is required to establish a probability of prevailing on plaintiff’s claims.  (Sycamore Ridge Apartments, LLC v. Naumann (2008) 157 Cal.App.4th 1385, 1392.) The Court does not weigh or compare the weight of the evidence; the Court accepts as true the evidence favorable to the plaintiff.  (Id., at 1397.)

·         In this case, the Defendants have made a prima facie showing the challenged cause of action arises from an act in the furtherance of free speech.  (Code of Civ. Proc. §425.16(e)(3) and (e)(4).)  Plaintiff has not defeated the Defendants’ threshold showing that the causes of action were protected activity by the Defendant.  As to the second prong of the SLAPP analysis, however, the Court finds that the Plaintiff has demonstrated a probability that he will prevail on the challenged causes of action.  Defendants’ Special Motion to Strike the 1st, 2nd,  3rd, 6th and 11th causes of action of Plaintiff’s Complaint is, therefore, DENIED:

o        As to the First and Second Causes of Action (Defamation) Plaintiff has established a probability he could prevail on at least some of his defamation/libel claims relating to statements made by MUSK, including but not limited to, that Plaintiff caused the financial issues at TESLA, that he left a “mess” when he left the company, that he caused the delays in the production of the Roadster, and that MUSK had to spend a lot of time correcting all the errors made by Plaintiff.  (Complaint, ¶¶89-102; Exhibits. 24-30.)   

o        As to the Third Cause of Action (Injunctive Relief), because Plaintiff has shown the probability he may prevail on the merits of a portion of his defamation claims, he may also prevail on his claim for injunctive relief.  An injunction which does no more than prohibit Defendants from repeating the defamation is not a prior restraint and does not offend the First Amendment.  (Balboa Island Village Inn v. Lemen (2007) 40 Cal.4th 1141, 1148.)

o        As to the Sixth Cause of Action (Declaratory Relief), an anti-SLAPP motion is not the proper mechanism to use to contest the validity of this cause of action.  Rather, the separate motion to strike under Code of Civil Procedure §436 et seq contemporaneously filed herewith fully and adequately addresses this dispute.  

o        As to the Eleventh Cause of Action (Negligence), the Complaint does not predicate this cause of action solely upon Defendants’ alleged defamatory statements.

·         Neither  these determinations, however, that there is a probability that the Plaintiff will prevail on these causes of action, nor the fact that said determinations were made, shall be admissible for any purpose, nor shall it affect any burden of proof, in any later stage of these or related proceedings.  (Code Civ. Proc., §425.16(b)(3).)

·         Responding party shall prepare and submit a formal order complying with California Rule of Court 3.1312 for the Court’s signature.

·         If the tentative ruling is uncontested, it shall become the order of the court, pursuant to Rule 3.1308(a)(1), adopted by Local Rule 3.10.

MOTION TO STRIKE PORTIONS OF COMPLAINT FILED BY ELON MUSK AND TESLA MOTORS, INC.

·         Defendants’ Motion to Strike Portions of Plaintiff’s Complaint is DENIED IN PART and GRANTED IN PART as follows:

o        DENIED as to “Count One” of the Fourth Cause of Action.  A determination as to whether Plaintiff breached the Nondisparagement clause of the BOD Resignation Agreement would require interpretation of the contract and its terms, which is improper on a motion to strike. 

o        DENIED as to “Count Three” of the Fourth Cause of Action.  In ruling on a motion to strike, the Court is limited to the face of the pleadings and any information it may judicially notice.  (Code of Civ. Proc. §437.)  The evidence of the upgrade may not be considered by the Court. Thus, there are no grounds upon which to grant the motion to strike.

o        GRANTED as to “Count One” of the Sixth Cause of Action.  Plaintiff is improperly requesting the Court make factual determinations, as opposed to a declaration regarding the parties’ legal rights and obligations.

o        GRANTED as to “Count Two” of the Sixth Cause of Action.  This count is duplicative of the fourth and fifth causes of action asserted in the Complaint.

·         Moving party shall prepare and submit a formal order complying with California Rule of Court 3.1312 for the Court’s signature.

·         If the tentative ruling is uncontested, it shall become the order of the court, pursuant to Rule 3.1308(a)(1), adopted by Local Rule 3.10.

DEMURRER TO COMPLAINT OF EBERHARD FILED BY ELON MUSK AND TESLA MOTORS, INC.

·         Plaintiff’s request for judicial notice is GRANTED as to the existence of the complaints and demurrers in the other actions.  However, the Court may not take judicial notice of the truth of the statements contained therein.

·         Defendants’ Demurrer to the 3rd and 7th through 9th causes of action of Plaintiff’s Complaint is OVERRULED in its entirety.

·         Responding party shall prepare and submit a formal order complying with California Rule of Court 3.1312 for the Court’s signature.  

·         If the tentative ruling is uncontested, it shall become the order of the court, pursuant to Rule 3.1308(a)(1), adopted by Local Rule 3.10.

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Source https://web.archive.org/web/20090804064818/http://www.sanmateocourt.org/director.php?filename=./tentrul/wed.htm