White v. Alex Brown Management Services
Harvey P. White, a limited partner in an investment fund, brought an action against the fund, and various entities associated with the fund, after the fund sustained substantial losses. In his initial complaint, White alleged contract and tort claims, asserting that defendants made numerous misrepresentations to induce White's participation in the fund, and then defendants substantially mismanaged the fund.
In a second amended complaint, White added allegations claiming damages after defendants entered into a settlement agreement with other fund investors in a Texas lawsuit. White alleged defendants breached their contractual and tort duties by refusing to disclose the terms of the settlement agreement, and by purchasing the Texas investors' holdings in the fund and refusing to offer him a similar opportunity. Based solely on these new allegations, defendants moved to strike the complaint, arguing the allegations challenge the prior settlement agreement and therefore arise from protected petitioning activity governed by the anti-SLAPP statute. (Code Civ. Proc., 425.16, subd. (e)(2).) The court denied the motion on the ground that the anti-SLAPP statute was inapplicable. The court thus did not reach the issue whether White proved a probability of prevailing on the merits. Defendants appeal. Court affirm. The allegations regarding the Texas settlement do not arise from protected petitioning activity because the gravamen of these newly asserted claims is based on defendants' conduct in purchasing the Texas investors' limited partnership interests, and not on written or oral statements made by the defendants in negotiating or executing the settlement agreement.
Comments on White v. Alex Brown Management Services