Maryland HB 412: Civil Actions - Strategic Lawsuits Against Public Participation

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0412*

HOUSE BILL 412
D3 9lr0746
CF 9lr0747
By: Delegate Rosenberg
Introduced and read first time: January 30, 2019
Assigned to: Judiciary

A BILL ENTITLED

AN ACT concerning 1

Civil Actions – Strategic Lawsuits Against Public Participation 2

FOR the purpose of altering the conditions under which a lawsuit is considered a strategic 3
lawsuit against public participation (SLAPP suit); specifying the conditions under 4
which a lawsuit is not considered a SLAPP suit; altering the conditions under which 5
a defendant in a SLAPP suit is not civilly liable for certain communications; 6
providing that a ruling or failure to rule on a certain motion is immediately 7
appealable; providing for the application of this Act; and generally relating to SLAPP 8
suits. 9

BY repealing and reenacting, with amendments, 10
Article – Courts and Judicial Proceedings 11
Section 5–807 and 12–303 12
Annotated Code of Maryland 13
(2013 Replacement Volume and 2018 Supplement) 14

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16

Article – Courts and Judicial Proceedings 17

5–807. 18

(a) In this section, “SLAPP suit” means a strategic lawsuit against public 19
participation. 20

(b) [A] SUBJECT TO SUBSECTION (C) OF THIS SECTION, A lawsuit is a SLAPP 21
suit if it is[: 22

(1) Brought in bad faith against a party who has communicated with a 23

2 HOUSE BILL 412

federal, State, or local government body or the public at large to report on, comment on, 1
rule on, challenge, oppose, or in any other way exercise rights under the First Amendment 2
of the U.S. Constitution or Article 10, Article 13, or Article 40 of the Maryland Declaration 3
of Rights regarding any matter within the authority of a government body or any issue of 4
public concern; 5

(2) Materially related to the defendant’s communication; and 6

(3) Intended to inhibit or inhibits the exercise of rights under the First 7
Amendment of the U.S. Constitution or Article 10, Article 13, or Article 40 of the Maryland 8
Declaration of Rights] BROUGHT IN BAD FAITH AGAINST A PERSON BASED ON AN ACT 9
OR STATEMENT OF THE PERSON, OR TO PREVENT THE PERSON FROM ACTING OR 10
MAKING A STATEMENT, IN FURTHERANCE OF THE PERSON’S RIGHT OF PETITION OR 11
FREE SPEECH UNDER THE UNITED STATES CONSTITUTION OR THE MARYLAND 12
CONSTITUTION OR DECLARATION OF RIGHTS IN CONNECTION WITH A PUBLIC ISSUE 13
OR AN ISSUE OF PUBLIC INTEREST, INCLUDING A WRITTEN OR ORAL STATEMENT 14
MADE: 15

(1) BEFORE A LEGISLATIVE, EXECUTIVE, OR JUDICIAL PROCEEDING, 16
OR ANY OTHER OFFICIAL PROCEEDING AUTHORIZED BY LAW; 17

(2) IN CONNECTION WITH AN ISSUE UNDER CONSIDERATION OR 18
REVIEW BY A LEGISLATIVE, EXECUTIVE, OR JUDICIAL BODY, OR ANY OTHER 19
OFFICIAL PROCEEDING AUTHORIZED BY LAW; OR 20

(3) IN A PLACE OPEN TO THE PUBLIC OR A PUBLIC FORUM IN 21
CONNECTION WITH AN ISSUE OF PUBLIC INTEREST. 22

(C) A LAWSUIT IS NOT A SLAPP SUIT IF: 23

(1) THE LAWSUIT IS BROUGHT IN THE PUBLIC INTEREST OR ON 24
BEHALF OF THE GENERAL PUBLIC AND EACH OF THE FOLLOWING CONDITIONS 25
EXISTS: 26

(I) EXCEPT FOR CLAIMS FOR ATTORNEY’S FEES, COSTS, OR 27
PENALTIES, THE PLAINTIFF DOES NOT SEEK ANY RELIEF GREATER THAN OR 28
DIFFERENT FROM THE RELIEF SOUGHT FOR THE GENERAL PUBLIC OR A CLASS OF 29
WHICH THE PLAINTIFF IS A MEMBER; 30

(II) THE LAWSUIT, IF SUCCESSFUL, WOULD ENFORCE AN 31
IMPORTANT RIGHT AFFECTING THE PUBLIC INTEREST AND WOULD CONFER A 32
SIGNIFICANT BENEFIT, PECUNIARY OR NONPECUNIARY, TO THE GENERAL PUBLIC 33
OR A LARGE CLASS OF PERSONS; AND 34

HOUSE BILL 412 3

(III) PRIVATE ENFORCEMENT IS NECESSARY AND PLACES A 1
DISPROPORTIONATE FINANCIAL BURDEN ON THE PLAINTIFF IN RELATION TO THE 2
PLAINTIFF’S STAKE IN THE MATTER; OR 3

(2) THE LAWSUIT INVOLVES A DEFENDANT WHO: 4

(I) PRIMARILY ENGAGES IN THE BUSINESS OF SELLING OR 5
LEASING GOODS OR SERVICES, INCLUDING INSURANCE, SECURITIES, OR FINANCIAL 6
INSTRUMENTS; AND 7

(II) MADE A STATEMENT OR ENGAGED IN CONDUCT THAT 8
CONSISTED OF REPRESENTATIONS OF FACT ABOUT THE DEFENDANT’S OR A 9
BUSINESS COMPETITOR’S BUSINESS OPERATIONS, GOODS, OR SERVICES: 10

1. FOR THE PURPOSE OF OBTAINING APPROVAL FOR, 11
PROMOTING, OR SECURING SALES OR LEASES OF OR COMMERCIAL TRANSACTIONS 12
IN THE DEFENDANT’S GOODS OR SERVICES; OR 13

2. IN THE COURSE OF DELIVERING THE DEFENDANT’S 14
GOODS OR SERVICES. 15

[(c)] (D) A defendant in a SLAPP suit is not civilly liable for communicating with 16
a federal, State, or local government body or the public at large, if the defendant, without 17
constitutional malice, [reports on, comments on, rules on, challenges, opposes, or in any 18
other way exercises rights under the First Amendment of the U.S. Constitution or Article 19
10, Article 13, or Article 40 of the Maryland Declaration of Rights] ACTED IN 20
FURTHERANCE OF THE PERSON’S RIGHT OF PETITION OR FREE SPEECH UNDER THE 21
UNITED STATES