Elite Auto Body LLC, D/B/A Precision Auto Body Rey R. Hernandez Yesica Diaz And David Damian v. Autocraft Body Works, Inc., Now Known as Wasson Road Ventures, Inc. D/B/A Autocraft Bodywerks
03-15-00064-CV
| Tex. App. | Mar 10, 2015Background
- Autocraft Bodywerks sued Elite Auto Body LLC d/b/a Precision Auto Body and others for alleged trade secret misappropriation and related injunctions/damages.
- Appellants moved to dismiss under the Texas Citizens Participation Act (TCPA) arguing Autocraft’s claims were in response to or related to the appellants’ rights of association and free speech.
- The trial court denied the TCPA motion on January 23, 2015.
- The appellants contend the TCPA applies and Autocraft failed to present clear and specific evidence for each essential element, warranting dismissal and an award of fees to the appellants.
- The TCPA burden-shifting requires clear and specific evidence for each element; the trial court’s denial was reversible error for lack of such evidence.
- The court also addressed the propriety of awarding attorneys’ fees and allowing live testimony at the motion-to-dismiss hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does TCPA apply to Autocraft’s claims against the Precision Parties? | Autocraft’s claims are trade secrets-related but not protected by TCPA; they are independent claims. | The claims relate to Precision Parties’ exercise of association and free speech in pursuing a competing business. | Yes, TCPA applies; dismissal required absent clear and specific evidence. |
| Did Autocraft present a prima facie case for each element after TCPA applicability? | Autocraft’s evidence supports its trade secrets claims. | Autocraft provided only conclusory evidence; no clear and specific evidence for each element. | No; Autocraft failed to provide clear and specific evidence; dismissal required. |
| Was the trial court correct in denying live testimony at the TCPA hearing? | Live testimony would illuminate the TCPA-related issues and evidence. | The motion to dismiss relies on pleadings and affidavits; live testimony unnecessary. | The court erred in denying live testimony; live testimony should have been considered. |
| Are the Precision Parties entitled to attorneys’ fees and costs? | If TCPA dismissal is improper, no fee-shifting relief should be awarded. | Upon dismissal under TCPA, the moving party is entitled to court costs, fees, and expenses. | Yes, the appellants are entitled to their attorneys’ fees and expenses; trial court erred in not awarding. |
Key Cases Cited
- Beck v. Law Offices of Edwin J. (“Ted”) Terry, Jr., P.C., 284 S.W.3d 416 (Tex. App.—Austin 2009) (elements of a TCPA claim and proof standards)
- Schimmel v. McGregor, 438 S.W.3d 847 (Tex. App.—Houston [1st Dist.] 2014) (clear and specific evidence; TCPA dismissal standards)
- Rehak Creative Svcs., Inc. v. Witt, 404 S.W.3d 716 (Tex. App.—Houston [14th Dist.] 2013) (broader reach of TCPA; necessity of prima facie evidence)
