JAMS, Inc. v. Superior Court

1 Cal. App. 5th 984, 205 Cal. Rptr. 3d 307 (2016)

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JAMS, Inc. v. Superior Court

California Court of Appeal
1 Cal. App. 5th 984, 205 Cal. Rptr. 3d 307 (2016)

KD

Facts

JAMS, Inc. (defendant) provided private alternative-dispute resolution (ADR) services by promoting and arranging for the hiring of third-party neutrals. JAMS’s website described its neutrals as “trusted experts” and claimed that the company was “dedicated to neutrality, integrity, [and] honesty.” JAMS listed retired judge Sheila Prell Sonenshine (defendant) as a neutral. Sonenshine’s resume, which was available on JAMS’s website, indicated that Sonenshine had substantial business experience, including the founding and management of two business ventures. Kevin Kinsella (plaintiff) claimed to have millions of dollars in assets, including venture capital partnerships. After reviewing JAMS’s website and Sonenshine’s resume, Kinsella believed that Sonenshine had strong business acumen and consented to her serving as the neutral in his marriage dissolution. Kinsella later became concerned that Sonenshine did not have the experience he initially believed. Subsequent investigation revealed, among other things, that Sonenshine had been sued for fraud in connection with one of her business ventures, a fact that was omitted from her resume. Kinsella sued JAMS and Sonenshine, asserting that numerous representations on JAMS’s website and Sonenshine’s resume were false or misleading. JAMS and Sonenshine moved to strike pursuant to California’s Strategic Lawsuit Against Public Participation (SLAPP) statute. Kinsella moved for a finding that his claims were exempt from the anti-SLAPP procedure because they arose out of JAMS’s and Sonenshine’s commercial speech. The trial court found that Kinsella’s claims were exempt from anti-SLAPP procedures. JAMS and Sonenshine petitioned the court of appeal for a writ of mandate, arguing that the commercial-speech exemption did not apply because the subject statements (1) were nonactionable opinions, not fact statements; (2) involved omissions, not affirmative misrepresentations; and (3) were not made solely for commercial purposes.

Rule of Law

Issue

Holding and Reasoning (McConnell, J.)

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