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