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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, 2015
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Background

  • 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)
Read the full case

Case Details

Case Name: 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
Court Name: Court of Appeals of Texas
Date Published: Mar 10, 2015
Docket Number: 03-15-00064-CV
Court Abbreviation: Tex. App.