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Corecivic, Inc. v. Candide Group, LLC

Citation: Not availableDocket: 20-17285

Court: Court of Appeals for the Ninth Circuit; August 30, 2022; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The Ninth Circuit Court of Appeals affirmed the district court's decision to grant a motion to strike CoreCivic, Inc.'s defamation complaint under California's anti-SLAPP statute, applicable even in federal court. CoreCivic alleged that articles published by Morgan Simon falsely linked it to the detention of separated families and criticized its lobbying activities. The court rejected CoreCivic's argument that the anti-SLAPP statute conflicted with federal procedural rules, citing established precedents allowing its use in federal diversity cases. The court also found that the Supreme Court's decision in Shady Grove did not alter this precedent. On the merits, the court determined that CoreCivic failed to sufficiently plead falsity in its defamation claims and that the statements could not reasonably be interpreted as defamatory. The appellate court remanded claims related to CoreCivic's lobbying activities for further consideration, as they were not addressed by the district court. The outcome resulted in a partial affirmation and remand, with each party bearing its own costs on appeal. A dissenting opinion argued that implied defamation claims warranted a jury's assessment due to potential defamatory interpretations of the statements, particularly in light of accompanying imagery.

Legal Issues Addressed

Application of California Anti-SLAPP Statute in Federal Court

Application: The Ninth Circuit upheld the use of California's anti-SLAPP statute in a federal diversity case, affirming its compatibility with the Federal Rules of Civil Procedure.

Reasoning: The Ninth Circuit Court of Appeals upheld the application of California's anti-SLAPP statute in federal court, affirming the district court's decision to grant Candide Group, LLC's motion to strike a defamation complaint from CoreCivic, Inc.

Court's Authority to Remand Unaddressed Claims

Application: The appellate court vacated and remanded claims related to CoreCivic’s lobbying activities as they were not addressed by the district court.

Reasoning: Claims related to CoreCivic’s lobbying activities were not addressed by the district court and were remanded for further resolution.

Defamation Claims Under California Law

Application: CoreCivic's defamation claims were dismissed due to insufficient pleading of falsity and a failure to establish a reasonable interpretation of the statements as defamatory under California law.

Reasoning: CoreCivic failed to adequately plead claims of defamation and defamation by implication regarding statements linking it to the separation of immigrant families at the U.S. border, leading the panel to affirm the district court’s dismissal of these claims.

Interpretation of Supreme Court's Decision in Shady Grove

Application: The court determined that Shady Grove does not constitute an intervening authority that would alter the applicability of the anti-SLAPP statute in federal court.

Reasoning: The panel determined that Shady Grove did not constitute intervening authority that was irreconcilable with existing circuit law, allowing the continued application of the anti-SLAPP statute.

Procedural Standards for Anti-SLAPP Motions

Application: The court applied the Federal Rule of Civil Procedure 12(b)(6) standard to assess the sufficiency of CoreCivic's defamation claims.

Reasoning: On the merits of the anti-SLAPP motion, the panel evaluated whether CoreCivic sufficiently stated a defamation claim under California law, applying the 12(b)(6) standard.