CH2M Hill Engineers, Inc. v. Brandy Springer, Hani Tohme, Frank Jackson, George Randle, Leonard Faulk, and Trent Thibodeaux
09-16-00479-CV
Tex. App.Dec 7, 2017Background
- CH2M Hill (CH2M) contracted with the City of Beaumont in Sept. 2014 to evaluate water and sewer operations and produced a critical written report.
- After the report, the City made personnel changes that included demotion, termination, or forced resignation of the six appellees.
- Appellees sued CH2M in May 2016 for defamation and tortious interference, alleging the report contained false and misleading statements.
- CH2M moved to dismiss under Tex. Civ. Prac. & Rem. Code § 150.002 for failure to file a required certificate of merit (affidavit by a third‑party licensed professional engineer).
- The trial court denied the motion; CH2M appealed interlocutorily, arguing the court abused its discretion.
- The appellate court affirmed, finding CH2M failed to prove it was a firm in which a licensed or registered professional practiced and thus failed to show the trial court abused its discretion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §150.002 applies because CH2M is a “licensed or registered professional” firm | Appellees disputed CH2M’s status as a licensed professional firm; they argued §150.002 did not apply | CH2M argued it is registered with the Texas Board of Professional Engineers and thus §150.002 requires a certificate of merit | Held: CH2M did not show a licensed professional practiced in the firm or that a licensed engineer signed the report; §150.002 did not clearly apply on the record, so trial court did not abuse discretion |
| Whether plaintiffs’ claims arise from provision of professional services requiring a certificate | Implied: plaintiffs contended claims were non‑professional (defamation/tortious interference) and not governed by §150.002 | CH2M argued claims arose from its professional report and therefore required a certificate | Held: Court did not reach this question because CH2M’s failure to prove firm status was dispositive |
| Standard of review for denial of §150.002 dismissal | N/A (procedural) | N/A | Held: Abuse of discretion standard for denial of motion to dismiss; statutory construction reviewed de novo |
| Burden to show trial court abused discretion | Appellees argued CH2M failed to produce record evidence | CH2M argued facts supported application of §150.002 | Held: CH2M had burden to show abuse and failed to present evidence that a licensed professional practiced for CH2M or signed the report |
Key Cases Cited
- Epco Holdings, Inc. v. Chicago Bridge & Iron Co., 352 S.W.3d 265 (Tex. App.—Houston [14th Dist.] 2011) (standard of review and statutory construction principles for §150.002 appeals)
- Sharp Eng’g v. Luis, 321 S.W.3d 748 (Tex. App.—Houston [14th Dist.] 2010) (interpretation of §150.002 and certificate requirements)
- Benchmark Eng’g Corp. v. Sam Houston Race Park, 316 S.W.3d 41 (Tex. App.—Houston [14th Dist.] 2010) (abuse of discretion standard and statutory construction rules)
- Walker v. Packer, 827 S.W.2d 833 (Tex. 1992) (standards for appellate review of trial court decisions)
- Dunham Eng’g, Inc. v. Sherwin‑Williams Co., 404 S.W.3d 785 (Tex. App.—Houston [14th Dist.] 2013) (treating firm proof requirements under §150.002)
- Simon v. York Crane & Rigging Co., 739 S.W.2d 793 (Tex. 1987) (party asserting abuse of discretion bears burden to show it)
- Morrison Seifert Murphy, Inc. v. Zion, 384 S.W.3d 421 (Tex. App.—Dallas 2012) (after statutory construction, appellate review of trial court’s application of statute)
