Chiu v. Creditors Trade Assn.
Creditors Trade Association, Inc., dba Great Western Collection Bureau (CTA), Gary E. Looney (Looney), and Fund Recovery Services, Inc., dba Accounts Receivable Management (Fund), appeal from the denial of their anti SLAPP motions to strike the complaint of respondents Sharon Chiu (Chiu) and Christina Seelye (Seelye). (Code Civ. Proc., 425.16.) Appellants contend that Chiu and Seelye failed to establish a probability of prevailing on their first two causes of action, and that the wrongdoing alleged as the basis for those claims was subject to the litigation privilege set forth in Civil Code section 47. Chiu and Seelye respond that the appeal is now moot because they dismissed their complaint during the pendency of the appeal. They also urge that: their complaint was not subject to the anti-SLAPP statute because appellants alleged wrongdoing was not constitutionally protected; the trial court correctly found that Chiu and Seelye had established a probability of prevailing on the merits of their claims; and the litigation privilege does not apply. In addition, they argue, if the trial courts order is reversed they should not be liable for attorney fees under the anti-SLAPP statute.
By way of cross-appeal, Chiu and Seelye further contend that the trial court erred in dismissing as moot their third cause of action, which sought to set aside a default judgment entered in an underlying proceeding. Court reverse the trial courts order and remand the case for further proceedings consistent with this opinion.
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