Protected Speech Does Not Include Extortion, California Appellate Court Rules

An employee’s e-mail threatening to report his employer to the U.S. Attorney and file an action under the federal False Claims Act unless the employer agreed to settle his defamation claim constituted extortion, as a matter of law, the California Court of Appeal has ruled. Stenehjem v. Sareen, No. H038342 (Cal. Ct. App. Jun. 13, 2014). Thus, the e-mail was not protected speech under California’s anti-SLAPP statute, Cal. Code Civ. Proc. § 425.16. The Court reversed the dismissal of the employer’s complaint for extortion. While the unusual allegations in this case do not arise often, the decision is a positive development for California employers.