ARMANDO MONTELONGO, JR., REAL ESTATE TRAINING INTERNATIONAL, LLC, PERFORMANCE ADVANTAGE GROUP, INC., AND LICENSE BRANDING, LLC, PETITIONERS, v. CECIL G. ABREA, ET AL., RESPONDENTS
No. 19-1112
IN THE SUPREME COURT OF TEXAS
April 30, 2021
Argued February 4, 2021
The Texas Citizens Participation Act (TCPA)1 provides for the dismissal of certain “legal actions” that are based on or in response to a party‘s exercise of the right of free speech, petition, or association.2 Absent an extension by agreement or for good cause, the party seeking dismissal must file a motion within sixty days after the party is served with the legal action.3 In this case, the defendants did not file a TCPA dismissal motion in response to the plaintiffs’ original petition but did file one within sixty days after the plaintiffs served an amended petition adding new legal claims based on the same essential facts alleged in the original petition. The issue is whether the amended petition asserted a new “legal action” that triggered a new sixty-day period for filing a dismissal motion.
We hold that an amended or supplemental pleading that asserts the same legal claims or theories by and against the same parties and based on the same essential facts alleged in a prior pleading asserts the same “legal action” to which the sixty-day period previously applied and thus does not trigger a new sixty-day period for filing a dismissal motion. But to the extent an amended or supplemental pleading either (1) adds a new party or parties, (2) alleges new essential facts to support previously asserted claims, or (3) asserts new legal claims or theories involving different elements than the claims or theories previously asserted, the new pleading asserts a new legal action and triggers a new sixty-day period as to those new parties, facts,
I.
Background
Armando Montelongo, Jr. is a real estate investor and president of three companies: Real Estate Training International, LLC, Performance Advantage Group, Inc., and License Branding, LLC. Real Estate Training International and Performance Advantage Group produce, sell, and conduct real-estate-education seminars, during which Montelongo teaches principles, methods, and strategies for real-estate investing. License Branding is a holding company that owns the trademarks and copyrights the other two companies use.
Cecil G. Abrea and 422 others (collectively, Abrea) allege that they “suffered financial and emotional harm after being defrauded into purchasing one or more of [Montelongo‘s] seminars or products.” According to Abrea, the seminars “are not genuine educational offerings” as advertised. Instead, they are part of a “fraudulent scheme” through which Montelongo subjects participants to coercive “upsells” designed to force them to purchase additional seminars, products, and services from Montelongo and others allied with him. Abrea filed this suit against Montelongo and the three companies (collectively, Montelongo) on July 17, 2018. In his original petition, Abrea asserted claims for deceptive trade practices, negligence, and negligent misrepresentation, seeking relief in the form of actual damages, treble damages, and attorney‘s fees.
Montelongo filed his original answer on November 13, 2018, asserting a general denial and several defenses. On December 7, 2018, Montelongo filed a motion to dismiss under
On January 22, 2019, Abrea filed both a response to the rule 91a dismissal motion and a first amended petition. The amended petition reasserted the claims for deceptive trade practices, negligence, and negligent misrepresentation, and added new claims for fraud, conspiracy to commit fraud, fraudulent concealment, and breach of contract. The amended petition alleged the same essential facts alleged in the original petition and requested the same relief.4
On January 31, 2019, the trial court denied Montelongo‘s rule 91a dismissal motion. On March 25, 2019, within sixty days after he was served with the amended petition, Montelongo filed a TCPA dismissal motion. Montelongo sought dismissal of the fraudulent-concealment claims and “certain portions” of the fraud and conspiracy claims on the grounds that the claims relate to or are in response to Montelongo‘s exercise of the rights of speech and association.
Specifically, Montelongo pointed to Abrea‘s allegations that Montelongo engaged in (1) “self-dealing,” by using affiliates to sell products at inflated prices without disclosing his financial interests
In response, Abrea argued that (1) Montelongo‘s TCPA dismissal motion was untimely, and (2) even if the motion was timely, the TCPA does not apply because the claims complain about commercial speech and are therefore exempted from the TCPA.5 In support of his untimeliness argument, Abrea pointed out that he had alleged the same self-dealing, predation, and Facebook-post-deletion facts in his original petition, as the basis for his deceptive-trade-practices, negligence, and negligent-misrepresentation claims. Abrea argued that the newly asserted fraud and conspiracy claims did not trigger a new sixty-day period because they arose “out of factual allegations that were first made in the Original Petition.” Because the amended petition did not “alter the essential nature of this action,” Abrea argued that Montelongo‘s “time to bring a TCPA motion should be calculated from the date of service of the Original Petition.”
The trial court denied Montelongo‘s TCPA dismissal motion without stating its reasons, and Montelongo appealed. See
II.
“Legal Action”
The TCPA was designed to protect both a defendant‘s rights of speech, petition, and association and a claimant‘s right to pursue valid legal claims for injuries the defendant caused.
In deciding whether a “legal action” should be dismissed, the trial court must consider the “pleadings” and “evidence . . . stating the facts on which the liability or defense is based.”
The dismissal motion itself must be filed “not later than the 60th day after the date of service of the legal action.”
A. New petitions, parties, and factual allegations
Relying on the definition‘s express language, Montelongo argues that Abrea‘s amended “petition“—a “pleading” or “filing” that asserts new “causes of action” and requests “legal . . . relief“—constitutes or asserts a new “legal action,” triggering a new sixty-day period for filing a motion to dismiss the new claims. Abrea argues that his amended petition did not constitute or assert a new “legal action,” even though it asserted new legal claims, because the new claims are based on the same essential facts alleged in the original petition.
Although we have not previously addressed this issue, Texas courts of appeals have addressed it in numerous cases. The courts have consistently agreed that an amended or supplemental pleading does not constitute or assert a new legal action if it asserts the same legal claims or causes of action by and against the same parties based on the same essential factual allegations.7 If, however, the new pleading adds
We agree with these holdings. Montelongo argues that Abrea‘s amended petition qualifies as a “legal action” because the Act expressly defines a “legal
We agree, of course, that an amended petition, pleading, or filing is a “petition,” “pleading,” or “filing,” and in that sense, we conclude that every amended or supplemental petition falls within the broad definition of a legal action. But we cannot agree that the claimant‘s service of any amended or supplemental petition, pleading, or filing triggers a new sixty-day period for filing a dismissal motion. We cannot construe the Act to grant a new deadline for “legal actions” that have previously been served, because doing so would render the Act‘s deadlines meaningless. See Columbia Med. Ctr. of Las Colinas, Inc. v. Hogue, 271 S.W.3d 238, 256 (Tex. 2008) (“The Court must not interpret the statute in a manner that renders any part of the statute meaningless or superfluous.“). Construing the Act to permit a defendant to file a dismissal motion after the claimant files a new pleading asserting the same claims by and against the same parties and based on the same essential facts would negate the sixty-day deadline completely.
In this sense, our holdings in this case depend not merely on the Act‘s definition of a legal action, but on its requirement that a “motion to dismiss a legal action . . . must be filed not later than the 60th day after the date of service of the legal action.”
We also agree with the courts that have held that an amended or supplemental petition that adds new parties or new essential factual allegations does assert a new legal action and starts a new sixty-day period as to the new parties and the claims based on the new factual allegations. Like
B. New claims, causes of action, and legal theories
The issue here, however, is whether an amended petition that asserts a new claim or legal theory, but does so based on the same essential factual allegations included in a prior petition, asserts a new “legal action.” Like the court of appeals in this case, the courts that have addressed this issue have held it does not.12 These courts have reasoned that (1) allowing the dismissal period to start anew when new claims are asserted based on the same essential facts would undermine the TCPA‘s purpose of promoting the “early” and “expedited” dismissal of legal actions to which it applies, and (2) as long as the prior pleading provided “fair notice” of the facts on which the claimant asserts a right to relief, as our rules require, the defendant was able to seek dismissal of all claims based on those facts. See, e.g., Reynolds, 617 S.W.3d at 43-44; Chandni, 601 S.W.3d at 20; Check, 438 S.W.3d at 836. Abrea makes these same arguments in this Court.
We disagree. First, to the extent we may rely on the TCPA‘s purpose to inform our construction, its stated purpose is to protect a defendant‘s rights of speech, petition, and association and a claimant‘s right to pursue valid legal claims for injuries.
Nor do we agree that our “fair notice” pleading standard justifies limiting a “legal action” to “essential factual allegations.” Our rules require pleadings to provide not just fair notice of factual allegations, but a “short statement of the cause of action sufficient to give fair notice of the claim involved.”
Instead of relying on our pleading standards and the TCPA‘s purpose, we look to the TCPA‘s language, applying its definitions and the common, ordinary meaning of undefined terms, while also considering their statutory context and avoiding rendering any provision meaningless. Creative Oil & Gas, LLC v. Lona Hills Ranch, LLC, 591 S.W.3d 127, 133 (Tex. 2019); Best, 562 S.W.3d at 11; Castleman, 546 S.W.3d at 687-88; Youngkin v. Hines, 546 S.W.3d 675, 680 (Tex. 2018).
As discussed, the TCPA defines “legal action” to include “causes of action,” “cross-claims,” and “counterclaims” in addition to lawsuits, petitions, and pleadings that assert such causes of action and claims.
But even under this definition, a “cause of action” involves more than mere facts—it involves facts that give rise to legal relief. See Jaster, 438 S.W.3d at 564-65; A.H. Belo, 129 S.W.2d at 621. When evaluating a cause of action, we consider not just the facts, but whether those facts establish the existence of a legal right or duty and the violation or breach of that right or duty. Weems, 575 S.W.3d at 364 (focusing inquiry on whether the facts involved a departure from “accepted standards“); Hart, 20 S.W. at 132 (explaining that the claimant‘s right and the “violation or invasion of his right” are “part of the cause of action” and “necessary as a foundation for the suit“). Thus, although a “cause of action” differs from a “claim” in that it exists even before a suit is filed, it is similar to a “claim” in that “they both refer to a legal right that a party asserts in the suit that constitutes the action.” Jaster, 438 S.W.3d at 564.
By providing for the dismissal of a “cause of action,” of course, the TCPA necessarily refers to a cause of action that has been asserted in a “suit that constitutes the action.” Id. And to assert a cause of action, the pleading must be sufficient to enable a court to determine, with reasonable certainty, not just the facts, but “the elements of [the] cause of action and the relief sought with sufficient information upon which to base a judgment.” Stoner v. Thompson, 578 S.W.2d 679, 683 (Tex. 1979). So once pleaded, a cause of action consists not merely of the alleged facts, but also the elements those facts must establish to entitle the claimant to relief.
Considering the statutory context of the definition, we conclude that this is necessarily the sense in which the TCPA uses the phrase “cause of action” to define a “legal action.” Indeed, the TCPA provides for dismissing a “legal action,”
In addition, section 27.005(c) enables a claimant to avoid dismissal by offering “clear and specific evidence [of] a prima facie case for each essential element of the claim in question.”
Certainly, the essential facts alleged in a pleading comprise part of the cause of action and thus part of the legal action as the TCPA defines that phrase. In fact, in seeking or opposing a TCPA dismissal, the parties must rely on the pleadings and evidence “stating the facts on which the liability or defense is based.”
But the elements of the claim asserted also comprise part of the legal action as the TCPA uses that phrase. To avoid dismissal, the claimant must establish not just facts, but facts that form a “prima facie case for each essential element of the claim in question.”
III.
Conclusion
We hold that Abrea‘s amended petition asserting new legal claims asserted new
Opinion delivered: April 30, 2021
Jeffrey S. Boyd
Justice
