05-23-01138-CV
Tex. App.Jul 30, 2024Background
- John S. Buttles, Jr. worked with Infinite Financial Corporation and Ted L. Ferrier, III to refinance his mortgage but claims they failed to secure a timely loan.
- Buttles filed a complaint against Ferrier with the Texas Department of Savings and Mortgage Lending (SML) and then sued for violations of the Texas Finance Code.
- Appellees (Infinite and Ferrier) counterclaimed for multiple torts (fraud, tortious interference, business disparagement, negligent misrepresentation) and breach of contract.
- Buttles moved to dismiss several counterclaims under the Texas Citizens Participation Act (TCPA), asserting they arose from his protected right to petition the SML.
- After the trial court denied Buttles’s TCPA motion to dismiss, he appealed; during the process, appellees amended and withdrew some counterclaims.
- The appeal focuses on whether the TCPA required dismissal of each counterclaim.
Issues
| Issue | Buttles's Argument | Appellees' Argument | Held |
|---|---|---|---|
| If TCPA applies to business disparagement counterclaim | Counterclaim targets his SML complaint, thus TCPA applies | Based on his withholding information, not SML communication | TCPA applies; appellees failed to show damages; reversed |
| If TCPA applies to tortious interference counterclaim | Counterclaim based on his SML complaints, thus TCPA applies | Based on his withholding; not on SML petition | TCPA applies; appellees failed to show damages; reversed |
| If TCPA applies to breach of contract counterclaim | Based on SML petition/communications | Not based on SML complaint, just on contractual relationship | TCPA does not apply; affirmed trial court’s denial |
| If TCPA applies to negligent misrepresentation | Based on SML petition/communications | Based on misrepresentations to appellees, not SML | TCPA does not apply; affirmed trial court’s denial |
Key Cases Cited
- Montelongo v. Abrea, 622 S.W.3d 290 (Tex. 2021) (explanation of three-step TCPA dismissal process)
- McLane Champions, LLC v. Houston Baseball Partners LLC, 671 S.W.3d 907 (Tex. 2023) (clarifies burdens in TCPA motions)
- Mem’l Hermann Health Sys. v. Gomez, 649 S.W.3d 415 (Tex. 2022) (elements for business disparagement claims)
- S&S Emergency Training Sols., Inc. v. Elliott, 564 S.W.3d 846 (Tex. 2018) (elements of breach of contract)
- First Bank v. Brumitt, 519 S.W.3d 95 (Tex. 2017) (who may bring a breach of contract claim)
- Prudential Ins. Co. of Am. v. Fin. Review Servs., Inc., 29 S.W.3d 74 (Tex. 2000) (elements of tortious interference with contract)
- Coinmach Corp. v. Aspenwood Apartment Corp., 417 S.W.3d 909 (Tex. 2013) (elements of tortious interference with prospective business relations)