Stop Animal Exploitation Now v. Santa Cruz Biotechnology CA6

Filed 7/5/16 Stop Animal Exploitation Now v. Santa Cruz Biotechnology CA6 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SIXTH APPELLATE DISTRICT

STOP ANIMAL EXPLOITATION NOW, H039770 (Santa Cruz County Plaintiff and Appellant, Super. Ct. No. CV176022)

v.

SANTA CRUZ BIOTECHNOLOGY, INC.,

Defendant and Appellant.

Plaintiff Stop Animal Exploitation Now appeals the judgment entered after a demurrer to its complaint under the Unfair Competition Law (Bus. & Prof. Code, § 17200 et seq.) was sustained without leave to amend. Defendant Santa Cruz Biotechnology, Inc. cross-appealed to challenge plaintiff’s standing. Plaintiff claims the trial court abused its discretion when, based on a then-pending federal investigation and enforcement action, it equitably abstained from adjudicating the merits of the allegations of animal cruelty constituting an unlawful business practice. In light of the conclusion of the federal action and the parties’ acknowledgement that defendant will no longer conduct research related to animals protected by the federal Animal Welfare Act (7 U.S.C. § 2131 et seq.), we will find that the appeal and cross-appeal are moot regarding plaintiff’s allegations related to those animals. However, we will reverse the judgment to allow plaintiff leave to amend because there is a reasonable possibility plaintiff can state a cause of action related to animals not protected by the Animal Welfare Act.

I. TRIAL COURT PROCEEDINGS Plaintiff is a non-profit animal welfare organization dedicated to “ending the abuse of animals in research laboratories ... .” According to plaintiff’s complaint, defendant is a corporation that operates an animal research facility using goats and rabbits. Plaintiff’s complaint was based on inspection reports of defendant’s facility prepared by the Animal and Plant Health Inspection Service (APHIS), a federal agency within the United States Department of Agriculture (USDA) responsible for enforcing the federal Animal Welfare Act. The complaint detailed allegedly cruel actions taken against several specific goats and alleged more generally that “critically ill goats and rabbits were denied veterinary care and rabbits were routinely euthanized in buckets.” The complaint also contained broader allegations about animals based on plaintiff’s information and belief. Plaintiff’s single cause of action alleged defendant “engaged in unlawful and unfair conduct by: (a) administering improper medical treatment to unhealthy animals, (b) overdrawing blood from animals, (c) harvesting blood from unhealthy animals, (d) employing procedures insufficient to monitor animal health, and (e) maintaining inadequate medical records.” According to plaintiff, defendant’s business practices were unlawful because they constituted animal cruelty under the Penal Code, and providing inadequate care to animals gave defendant a competitive advantage over its competitors. (Citing Pen. Code, §§ 597, subd. (b), 597.1, subd. (a)(1), 597f, subd. (a).) Plaintiff sought a permanent injunction preventing defendant from: “a. Maintaining inadequate medical records for unhealthy animals; [¶] b. Overdrawing blood from animals; [¶] c. Harvesting blood from unhealthy animals; [¶] d. Inadequately monitoring the health of animals under its care and custody; and [¶] e. Providing improper medical treatment to unhealthy animals.” Defendant demurred, arguing: plaintiff lacked standing under the Unfair Competition Law (UCL); the complaint was preempted by the Animal Welfare Act; the court should abstain from deciding the case in deference to USDA jurisdiction; and,