Zhang v. Jenevein

E. Patrick Jenevein III, president of Tang Energy Group, Ltd., secretly recorded conversations with a business associate, Sherman Xuming Zhang, president of AVIC International USA, Inc. (AVIC USA), and later introduced the recordings as evidence in contractual arbitration.  The arbitrators ultimately issued an award in favor of Tang Energy.

After the arbitration, Zhang and AVIC USA filed this action against Jenevein for invasion of privacy and eavesdropping on or recording confidential communications in violation of Penal Code sections 632 and 637.2.  Jenevein filed a special motion to strike under Code of Civil Procedure section 425.16 (section 425.16).  The trial court denied the motion, ruling that neither making the recordings nor using them as evidence in the arbitration was protected activity. 

The trial court was correct.  Because Jenevein’s actions in recording the conversations and using the recordings in the arbitration were not in connection with a judicial or official proceeding authorized by law, they were not protected activities under section 425.16.  Therefore, we affirm.

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