Texas Campaign for the Environment v. Partners Dewatering International, LLC
485 S.W.3d 184
Tex. App.2016Background
- PDI (a grease/grit trap processor) had a 2008 operating lease with the City of Rio Hondo to operate a liquid-waste dewatering facility; PDI alleges the contract was cancelled in Feb. 2013.
- The Texas Campaign for the Environment (TCE) and its director Robin Schneider campaigned in Rio Hondo opposing PDI’s proposed operations and solicited letters, public participation, and a TCEQ hearing.
- After public meetings in January 2013 (including a TCEQ hearing) and local activism, Rio Hondo voted to cancel the contract; TCE publicized the result as a “victory.”
- PDI sued TCE and Schneider for tortious interference with an existing contract and business disparagement, seeking > $6.5M in damages.
- Defendants moved to dismiss under the Texas Citizens Participation Act (TCPA). The trial court denied the motion by operation of law; this interlocutory appeal addresses whether PDI met the TCPA’s prima facie burden to avoid dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PDI produced clear and specific evidence of intentional interference with its Rio Hondo contract | PDI: TCE’s canvassing, public statements, meeting conduct, website posts, and TCEQ hearing participation intentionally induced Rio Hondo to cancel the contract, causing damages | TCE: Actions are protected petition/speech under the TCPA; even if protected, PDI’s evidence fails to prove intentional interference, proximate causation, and damages with clear and specific evidence | Held: PDI met its TCPA prima facie burden on interference, causation, and damages; denial of dismissal as to tortious interference affirmed |
| Whether PDI produced clear and specific evidence of business disparagement (including malice) | PDI: TCE’s statements (unsatisfactory compliance, noncompliance with law, acceptance of toxic waste, boil-water claim) were false and TCE acted with malice because information showing truth was publicly available | TCE: Statements were protected opinion/petition and PDI cannot show actual malice (knowledge of falsity or reckless disregard); statements were not shown to be made with requisite state of mind | Held: PDI failed to show actual malice by clear and specific evidence; business disparagement claim must be dismissed under the TCPA |
Key Cases Cited
- In re Lipsky, 460 S.W.3d 579 (Tex. 2015) (clarifies TCPA two-step burdens and definition of "clear and specific" evidence)
- Forbes, Inc. v. Granada Biosciences, Inc., 124 S.W.3d 167 (Tex. 2003) (elements of business disparagement and malice standard)
- Butnaru v. Ford Motor Co., 84 S.W.3d 198 (Tex. 2002) (elements of tortious interference with contract)
- In re E.I. DuPont de Nemours & Co., 136 S.W.3d 218 (Tex. 2004) (prima facie evidentiary standard discussion)
- Burbage v. Burbage, 447 S.W.3d 249 (Tex. 2014) (evidence that is mere surmise or suspicion is legally insufficient for causation)
- Rehak Creative Servs., Inc. v. Witt, 404 S.W.3d 716 (Tex. App.—Houston [14th Dist.] 2013) (discussion of prima facie proof standard under TCPA)
- Serafine v. Blunt, 466 S.W.3d 352 (Tex. App.—Austin 2015) (ordinary-meaning definitions of "clear" and "specific" and TCPA application)
