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Steve Thomas v. Fry's Electronics, Inc., a California Corporation

Citations: 400 F.3d 1206; 2005 U.S. App. LEXIS 4259; 2005 WL 589586Docket: 03-56306

Court: Court of Appeals for the Ninth Circuit; March 15, 2005; Federal Appellate Court

Narrative Opinion Summary

In this case, the appellant, a party involved in a declaratory relief action against a corporate entity, challenged the denial of his anti-SLAPP motion. The appellant sought to strike counterclaims brought by the opposing corporate party, citing the California anti-SLAPP statute's protection against unwarranted litigation. The district court had previously denied the motion, reasoning that the state's anti-SLAPP law was incompatible with the Federal Rules of Civil Procedure, taking guidance from the Supreme Court's ruling in Swierkiewicz v. Sorema concerning federal pleading standards. Upon review, the Ninth Circuit held jurisdiction under 28 U.S.C. § 1292(b) and determined that the district court erred in its interpretation, reaffirming the applicability of anti-SLAPP motions in federal courts as established in Newsham v. Lockheed Missiles. Consequently, the appellate court reversed the lower court's decision, remanding the matter for further proceedings to address the merits of the anti-SLAPP motion, as well as the accompanying request for attorney's fees and costs. The decision was rendered without oral argument, underscoring the appellate court's reliance on established precedents and statutory interpretation.

Legal Issues Addressed

Applicability of Anti-SLAPP Motions in Federal Court

Application: The Ninth Circuit reaffirmed that California's anti-SLAPP statute is applicable in federal court proceedings.

Reasoning: The Ninth Circuit found that *Swierkiewicz* did not undermine its previous ruling in *Newsham v. Lockheed Missiles*, which confirmed that anti-SLAPP motions are applicable in federal court.

Conflict between State Statutes and Federal Rules of Civil Procedure

Application: The district court's ruling that California's anti-SLAPP statute conflicted with federal procedural rules was found to be incorrect by the Ninth Circuit.

Reasoning: The district court had ruled that California's anti-SLAPP statute conflicted with the Federal Rules of Civil Procedure, relying on the Supreme Court's decision in *Swierkiewicz v. Sorema*.

Jurisdiction under 28 U.S.C. § 1292(b)

Application: The Ninth Circuit exercised jurisdiction over the interlocutory appeal under 28 U.S.C. § 1292(b).

Reasoning: The Ninth Circuit had jurisdiction under 28 U.S.C. § 1292(b).

Reversal and Remand for Further Proceedings

Application: The Ninth Circuit reversed the district court’s decision and remanded the case for further proceedings on the anti-SLAPP motion.

Reasoning: The Ninth Circuit reversed the district court's decision and remanded for further proceedings on the motion to strike and the request for attorney's fees and costs.