Sandra Caron European Spa v. Kerber [1]

In May 2006, Sandra Caron European Spa, based in San Mateo, California, sued a former employee and her husband for trade libel over critical reviews about the Spa on Yahoo.com [2] and consumer review website Yelp.com [3].  According to court decision in the case: 

A Yahoo.com user posted a review of Caron Spa on January 17, 2006. It stated: "My first impression was its tacky d[é]cor. Then I encountered an extremely rude [E]uropean gentlemen, I believe this is the owner. From what I could see, the employees are miserable and tired. When I went into the steam room I saw mildew and brown spots on the walls.... I could not even sit in there. I went for my massage, and that was ok. But the room had a strange smell and the blankets were dingy. It was also very cold. I guess the owner does not put on the heat. There is just too much to go on about. I will never go there again, and I will make sure I will tell as many people as I can about the horrible experience that I had."

Another review, posted on Yelp.com under the user name "Pippi L.," appeared on March 5, 2006. Pippi L. wrote: "One star is even too much for this place. First of all, when I walked in there it looked lik[e] selling a whole bunch of useless things you'll wind up selling at a garage sale. The serv[ice was] horrible. I had this creepy old [E]uropean man helping me and he was just outright rude. [The] guy was acting as if he was doing me a favor by letting me come to his spa.... And what was with the 18 [percent] service charge? ? ? It's questionable that the therapists or the providers ever receive it. My massage was ok and that was the only highlight of this.... And their sauna and steam room ... was really disgusting. Their lounge are was just full of tacky decorations as what I've heard they've been around for a long time, and I really don't understand why.... I would never come back and much would rather go to the spa at my gym."

Sandra Caron European Spa, Inc. v. Kerber, 2008 WL 3976463, at *2 (Cal. Ct. App. 2008).

On July 31, 2006, defendants filed a special motion to strike the complaint under California's anti-SLAPP law [4].  The trial court ultimately denied the motion, finding that Caron Spa had made a preliminary showing that the Kerbers conspired to commit trade libel with third parties not named as defendants in the case.  See Sandra Caron European Spa, 2008 WL 3976463, at *3.

The Kerbers appealed, and a California appellate court affirmed the district court's decision, albeit on other grounds.  The appellate court held that the statements in question were not made in connection with "a matter of public interest," which is required to trigger the protection of the anti-SLAPP law.  Id. at *4-7.  The court specifically rejected the argument that all "discussion on internet sites is protected speech" under the anti-SLAPP law.  Id. at *7. 

The case is currently pending in the trial court.