McNeeley v. Allen Law Corp.
Appellants are a law firm and the law firm's attorneys who loaned $230,000 to a relative who served as trustee of a family trust. The loan was secured by real property in the trust estate. The trustee was replaced by respondents as successor cotrustees. Before being replaced, the former trustee sold the real property. Respondents filed an ex parte application for a temporary restraining order to prevent the distribution of the proceeds of sale. Appellants opposed the application on behalf of themselves and the former trustee. The trial court declined to issue a restraining order and a portion of the proceeds from sale of the trust property was distributed to appellants in repayment of the loan.
The successor trustees filed a lawsuit against the attorneys seeking to recover proceeds of sale distributed to the attorneys, alleging among other things, breach of trust. The attorneys filed a special motion to strike the complaint as a strategic lawsuit against public participation (SLAPP) suit under Code of Civil Procedure section 425.16.[1] Appellants contend that the successor trustee's lawsuit arose from protected litigation activity--their representation of themselves and the former trustee in the proceeding to enjoin distribution of proceeds from the sale of trust assets. Like the trial court, we conclude that, at most, the court appearance was incidental to the successor trustees' lawsuit. The allegations of the complaint turn on appellants' involvement with the former trustee in the management of her mother's trust and the use of trust assets for the former trustee's personal benefit.
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