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Galleria Loop Note Holder, LLC v. George M. Lee
13-20-00334-CV
| Tex. App. | Jul 1, 2021
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Background

  • 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)
Read the full case

Case Details

Case Name: Galleria Loop Note Holder, LLC v. George M. Lee
Court Name: Court of Appeals of Texas
Date Published: Jul 1, 2021
Docket Number: 13-20-00334-CV
Court Abbreviation: Tex. App.