Todd Dyer, PHRK Intervention, Inc., PHRK Intervention, LLC, and Southside Device, LLC v. Medoc Health Services, LLC, and Total RX Care, LLC
573 S.W.3d 418
Tex. App.2019Background
- Medoc (healthcare management) and Total Rx (pharmacy) own proprietary prescription-processing software and confidential business data; they took steps to keep it secure.
- Nicolas Basiti, Medoc’s former CTO and one of the software developers, exchanged >1,000 texts with Todd Dyer discussing transferring and duplicating Medoc’s databases and how to profit from them.
- Dyer purchased two servers Basiti set up; a forensic exam showed Medoc data on those servers. Basiti later acknowledged conspiring with Dyer to use and disclose Medoc’s software and information.
- Medoc and Total Rx sued Dyer, PHRK entities, and Southside for trade-secret misappropriation, tortious interference, civil conspiracy, and conversion; they obtained a TRO and sought injunctive relief and damages.
- Appellants moved to dismiss under the Texas Citizens Participation Act (TCPA); the trial court denied the motion and appellants appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether TCPA applies via right of association | Medoc/Total Rx: claims arise from private conspiracy, not protected association | Dyer: texts were communications between individuals pursuing a common interest, so TCPA protects them | Court: TCPA does not apply — private, non-public conspiratorial communications are not protected association under TCPA |
| Whether TCPA applies via free speech (matter of public concern) | Medoc/Total Rx: suit predicated on misappropriation, not speech; texts not about public concerns | Dyer: communications related to healthcare/economic well‑being or FBI inquiry, so protected speech | Court: TCPA does not apply — texts lacked connection to a matter of public concern; alleged profit motive/FBI speculation insufficient |
| Whether TCPA applies via right to petition | Medoc/Total Rx: claims not based on petitioning activity | Dyer: actions/communications tied to FBI investigation and thus to petitioning | Court: TCPA does not apply — no pending judicial/governmental proceeding in the texts and no nexus between petitioning and the claims |
| Whether trial court erred in denying TCPA motion and whether further TCPA prongs (prima facie proof/defenses) need review | Medoc/Total Rx: TCPA inapplicable; plaintiffs can show prima facie case | Dyer: even if TCPA applies, plaintiffs cannot make clear and specific showing and defendants have defenses | Court: Because defendants failed to show TCPA applies, court need not reach prima facie or defense issues; denial affirmed |
Key Cases Cited
- In re Lipsky, 460 S.W.3d 579 (Tex. 2015) (Describes TCPA purpose to deter strategic lawsuits and protects First Amendment activities)
- ExxonMobil Pipeline Co. v. Coleman, 512 S.W.3d 895 (Tex. 2017) (clarifies TCPA two-step and when private communications may be matters of public concern)
- Youngkin v. Hines, 546 S.W.3d 675 (Tex. 2018) (statutory construction and burden-shifting under the TCPA)
- Lippincott v. Whisenhunt, 462 S.W.3d 507 (Tex. 2015) (private communications about public concern may fall under TCPA)
- ExxonMobil Pipeline Co. v. Coleman, 464 S.W.3d 841 (Tex. App.—Dallas 2015) (Coleman I) (interpreting right of association and limits of TCPA protection for private communications)