Varian Medical Systems v. Delfino

Summary

        California Supreme Court

        Michelangelo Delfino and Mary Day began posting derogatory messages about their former employer, Varian Associates Inc., on the Internet. Varian sued them, alleging unfair competition, libel, false light and conspiracy. The defendants moved to strike the lawsuit as a strategic lawsuit against public participation (SLAPP). The trial court denied the motions, and the defendants appealed. The trial proceeded, and the jury found defendants liable. After entry of judgment, the Court of Appeal dismissed as moot defendants' appeal from the order denying their anti-SLAPP motions. It held Code of Civil Procedure Section 916 did not automatically stay trial of the lawsuit. It also ruled that denial of an anti-SLAPP motion is a separate matter from the merits of the lawsuit itself.

        Reversed and remanded. The purpose of the automatic stay under Section 916 is to protect the appellate court's jurisdiction by keeping the status quo until the appeal is decided. All trial proceedings on the matters embraced or affected by the appeal are stayed. Granting an anti-SLAPP motion results in the dismissal of a cause of action on the merits. Such a motion goes to the merits of the issues of a lawsuit. An appeal from the denial of an anti-SLAPP motion automatically stays further trial proceedings on the merits on causes of action affected by the motion. Despite defendants' appeal from the denial of the anti-SLAPP motions, a trial was held and judgment was entered for Varian. The trial should have been stayed under Section 916. The trial court lacked subject matter jurisdiction and the resulting judgment is void.

        

—