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Zillow, Inc. and Zillow Group, Inc. v. BMB Development, LLC, Michael Benson, and Bradina Benson
02-24-00553-CV
Tex. App.
May 15, 2025
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Background

  • BMB Development, LLC (owned by the Bensons) purchased and renovated a unique property in Wise County, Texas, and listed it for sale through Coldwell Banker, which included an MLS listing.
  • The property was subsequently also listed on Zillow’s website via information obtained from MLS.
  • The Bensons discovered Zillow’s listing falsely displayed the property as being in foreclosure, in the wrong location, and as apartments for rent, which they believed harmed their sale efforts.
  • After unsuccessful efforts to have the alleged misstatements corrected, the Bensons sued Zillow for defamation and tortious interference.
  • Zillow filed a motion to dismiss under the Texas Citizens Participation Act (TCPA), claiming protection under the statute; the trial court denied Zillow’s motion.
  • On interlocutory appeal, the primary question was whether the TCPA’s commercial-speech exemption applied.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Applicability of TCPA’s commercial-speech exemption Zillow’s online statements were commercial speech tied to its real estate marketplace services and aimed at buyers. Zillow acted as an information aggregator and not as a direct seller, so the exemption should not apply. Exemption applies; TCPA does not apply to Bensons’ claims.
Whether Zillow’s conduct was in its capacity as a seller Zillow’s services are real-estate-marketplace services offered directly to users viewing property listings. Zillow’s involvement with the property was passive, not direct sales. Zillow’s conduct was as a seller of its services.
Did the alleged statements arise from a commercial transaction? Zillow used its platform to propose/commercialize property transactions, including offering loans. No actual transaction or sale took place. Commercial transaction requirement is met.
Intended audience of the statements The intended audience was potential customers using Zillow’s site to find real estate. Unclear or broader audience, not just direct customers. Intended audience prong satisfied.

Key Cases Cited

  • Castleman v. Internet Money Ltd., 546 S.W.3d 684 (Tex. 2018) (defining and outlining TCPA’s commercial-speech exemption)
  • Adams v. Starside Custom Builders, LLC, 547 S.W.3d 890 (Tex. 2018) (standard of review for TCPA motions)
  • S&S Emergency Training Sols., Inc. v. Elliott, 564 S.W.3d 843 (Tex. 2018) (standards for considering evidence in TCPA disputes)
Read the full case

Case Details

Case Name: Zillow, Inc. and Zillow Group, Inc. v. BMB Development, LLC, Michael Benson, and Bradina Benson
Court Name: Court of Appeals of Texas
Date Published: May 15, 2025
Docket Number: 02-24-00553-CV
Court Abbreviation: Tex. App.