Galleria Loop Note Holder, LLC v. George M. Lee
13-20-00334-CV
| Tex. App. | Jul 1, 2021Background
- Lee sued Galleria Loop Note Holder, LLC alleging a fraudulent transfer of property over which Lee held a secured lien.
- Galleria moved to dismiss under the Texas Citizens Participation Act (TCPA); the trial court held a hearing on October 4, 2019 and denied the motion that same day.
- After the denial, Lee filed a voluntary nonsuit as to Galleria; the trial court granted the nonsuit.
- Galleria appealed the denial of its TCPA motion and sought attorney’s fees under the TCPA; Galleria argued the TCPA applied and Lee failed to meet his prima facie proof burden.
- The court held Lee’s nonsuit mooted the merits but did not foreclose Galleria’s TCPA claim for attorney’s fees, which can survive a nonsuit.
- The appellant (Galleria) failed to file a reporter’s record of the TCPA hearing or a Rule 34.6(c) partial-record statement, so the court presumed omitted portions supported the trial court’s denial of dismissal and affirmed.
Issues
| Issue | Plaintiff's Argument (Lee) | Defendant's Argument (Galleria) | Held |
|---|---|---|---|
| Mootness of appeal after nonsuit | Nonsuit renders appeal moot | TCPA movant can obtain dismissal with prejudice and mandatory fees; fee claim survives nonsuit | Nonsuit mooted merits but TCPA fee claim survives; appeal not moot |
| Whether trial court erred denying TCPA motion | Lee provided prima facie evidence of claim | Galleria showed TCPA applies and Lee failed to provide prima facie evidence | Galleria failed to provide reporter’s record; court presumes missing record supports trial court and affirms denial |
Key Cases Cited
- Klein v. Hernandez, 315 S.W.3d 1 (Tex. 2010) (nonsuit and mootness principle)
- Epps v. Fowler, 351 S.W.3d 862 (Tex. 2011) (nonsuit terminates case from filing; no order required)
- Univ. of Tex. Med. Branch at Galveston v. Estate of Blackmon ex rel. Shultz, 195 S.W.3d 98 (Tex. 2006) (trial court may delay dismissal to resolve fees/costs after nonsuit)
- CTL/Thompson Tex., LLC v. Starwood Homeowner’s Ass’n Inc., 390 S.W.3d 299 (Tex. 2013) (TCPA fee-shifting framework)
- Gaskamp v. WSP USA, Inc., 596 S.W.3d 457 (Tex. App.—Houston [1st Dist.] 2020) (TCPA fee claims can survive nonsuit)
- Bennett v. Cochran, 96 S.W.3d 227 (Tex. 2002) (presumption that omitted reporter’s-record portions support trial court)
- Christiansen v. Prezelski, 782 S.W.2d 842 (Tex. 1990) (appellant bears burden to bring appellate record showing reversible error)
- Haut v. Green Cafe Mgmt., Inc., 376 S.W.3d 171 (Tex. App.—Houston [14th Dist.] 2012) (failure to follow Rule 34.6 forfeits presumption of complete record)
- Sareen v. Sareen, 350 S.W.3d 314 (Tex. App.—San Antonio 2011) (need for a complete reporter’s record to review evidentiary sufficiency)
