Breach of Contract SLAPP Win Validated Fees, Given That This Win Also Resulted In Ultimate Adjudication of Compelling Arbitration Claim in Favor of Winner.
Sahlolbei v. Montgomery, Case No. E053031 (4th Dist., Div. 2 Aug. 14, 2012) (unpublished) is an interesting procedurally-driven case where plaintiff sued defendant for breaching a settlement agreement and for failing to submit to arbitration under the agreement. Defendant filed a SLAPP motion, which was denied. However, in an earlier appeal, the appellate court agreed with the denial on the compel arbitration claim but held that the motion should have been granted on the breach of contract claim. On remand, defendant filed a motion for $19,816.66 in fees/costs, which was awarded fully. This prompted an appeal.
Plaintiff lost.
The judgment on the contract claim, based on res judicata, barred the compel arbitration claim–a ground not raised by either side, but by the appellate court requesting supplemental briefing on this particular defense. That being told, defendant was the prevailing party for purposes of SLAPP fees given that he did prevail on a significant issue that ended up being dispositive for all purposes.