William Banning Case

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Question Presented
William Banning, the plaintiff’s attorney for the pending Faalele et al. v. Pacific Princess Partnership LTD claim, wrote a letter to Holmes Weddle & Barcott threatening to bring a Qui Tam claim against Pacific Princess Partnership (PPP) unless PPP withdrew their pending motion to stay on grounds of Forum Non-Conveniens, as well as stipulate San Diego Superior Court as the proper court for the trial of Plaintiff’s wrongful death and survival action against defendants. Does Banning’s action constitute extortion?
Brief Answer
Probably yes. Extortion is the obtaining of property from another, with his consent, induced by a wrongful use of force or fear, or under color of official right. Every person who, with intent to extort any money or other property from another, sends or delivers to any person any letter or other writing, whether expressing or implying, or adapted to imply, any such threat such as specified in Section 519, is punishable in the same manner as if such money or property were actually obtained by means of such threat. When construing “property” in regards to extortion statutes, a broad interpretation is permitted. Under California law, threats of criminal or civil prosecution and to business or property interests were sufficient to state a claim for civil extortion, even though plaintiffs did not pay on the demands. William Banning sent a letter with the intent to induce Holmes Weddle & Barcott’s client, through fear of bringing about a Qui Tam action, to withdraw their pending motion to stay on grounds of Forum Non-Conveniens (FNC) and to stipulate San Diego Superior Court as the proper court for the trial of Plaintiff’s...

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...fendants. Banning may argue that as employers, there is a logical relation to look through and ensure that your business is conducting proper business practices; however it looks more like an abusive tactic rather than a logical relation. Therefore, the litigation privilege will likely not apply.
Conclusion
In Conclusion, while there is no bright line rule to distinguish between legitimate negotiation and actionable extortion the facts presented here lean towards extortion. Failure to limite demand letters to the prospective litigation at hand, plus his use of threat to compel consent, subjects Banning to State Bar discipline, along with possible criminal prosecution, and civil liability. Banning committed extortion when he threatened legal action through fear to place himself and his client in a more favourable position regarding the other civil action.

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