In a pivotal decision dated September 5, 2024, the United States Court of Appeals for the 9th Circuit upheld the lower court’s summary judgment, marking a significant victorious milestone for the Maloney Firm’s client. This case revolved around allegations of malfeasance by property developers accused of misusing the California Environmental Quality Act (CEQA) to engage in behaviors allegedly equivalent to violations of the Racketeer Influenced and Corrupt Organizations Act (RICO). The appellate court decisively reaffirmed the legitimacy of the developers’ utilization of CEQA procedures. Notably, this decision may influence future interpretations of RICO allegations within environmental litigation contexts.

The plaintiffs contended that the developers had abused CEQA to hinder competitors by bringing bogus lawsuits. In the district court, Patrick Maloney successfully argued that the clients’ actions under CEQA were safeguarded by the Noerr-Pennington doctrine, which protects the rights of individuals and entities to petition the government without fear of litigation, except in cases of “sham” litigation. The firm reiterated the same arguments in response to the plaintiffs’ efforts to persuade a higher court to reverse the trial court’s ruling. Several environmental interest groups filed briefs in the appellate court, expressing concerns that overturning the lower court’s decision might set a perilous precedent and dissuade the filing of legitimate CEQA complaints.

Ruling

The 9th Circuit’s affirmation of the summary judgment recognized that the defendants’ petitioning actions fell under the protection of the Noerr-Pennington doctrine. The court determined that the defendants’ actions under CEQA were not objectively baseless, thus not fitting into the “sham litigation” exception detailed in the doctrine.

This ruling fortifies the legal protections associated with petitioning activities under Noerr-Pennington and celebrates a decisive victory for the Maloney Firm and its clients, reinforcing an essential principle of the legal system. This ruling is hoped to guide future legal strategies and the interpretation of fundamental legal doctrines. We are thrilled to achieve such a complete victory for our clients at the appellate level.

The case is Relevant Group et al. v. Stephen Nourmand et al., No. 23-35438, 2024 WL 3909574 (9th Cir. Sept. 5, 2024).

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