Nеal RAUHAUSER, Appellant v. James MCGIBNEY and ViaView, Inc., Appellees
NO. 02-14-00215-CV
Court of Appeals of Texas, Fort Worth.
DELIVERED: December 11, 2014
444 S.W.3d 377
I recognize that the time period for filing a notice of appeal begins from the day that sentence is imposed, not from the date of the written judgment, see
Because the majority holds otherwise, I respectfully dissent.
Joseph W. Spence, Paul F. Gianni, Shannon, Gracey, Ratliff & Miller, L.L.P., Fort Worth, TX, for Appellee.
OPINION
PER CURIAM9
I. INTRODUCTION
This is an interlocutory appeal under the Texas Citizens’ Participation Act (TCPA) from the denial by operation of law of a motion to dismiss filed pursuant to the TCPA. See
II. FACTUAL AND PROCEDURAL BACKGROUND
McGibney is the CEO of ViaView and the founder and operator of ViaView‘s websites.1 McGibney has appeared on many television and radio talk shows to promote “vigilante justice” through ViaView‘s websites.
McGibney and ViaView filed suit against Rauhauser--and nine other defendants who are not parties to this appeal--pleading claims for defamation, defamation per se, business disparagement, intentional infliction of emotional distress, tortious interference with business relationships, and other nondefamation torts. Appellees’ petition attributed the posting of four specific threats and defamatory statements on ViaView‘s websites to a Mr. Retzlaff and alleged that Rauhauser and the other defendants had “joined with” Mr. Retzlaff “in this pattern of cyber-stalking, cyber-terrorism, defamation[,] and harassment.” Appellees alleged that all of the defendants’ postings were verbal acts specifically directed against McGibney and ViaView and constituted cyberstalking and harassment and that the defendants had created dozens of sock accounts on Twitter and Facebook to harass McGibney. Appellees’ pleading sought a temporary injunction order “that would prohibit and enjoin any ... [T]witter or social media statements or blog entries by each and all Defendants
After being sued, Rauhauser filed a motion to dismiss Appellees’ claims pursuant to the provisions of the TCPA and sought attorney‘s fees and sanctions pursuant to the TCPA. See
Subsequently, Rauhauser filed a supplemental motion to dismiss, providing an affidavit concerning his attorney‘s fees and again requesting sanctions to deter future similar suits by Appellees. Appellees then filed a plea to the jurisdiction, plea in abatement, motion to stay, and a reply and a supplemental reply to Rauhauser‘s motion to dismiss. The trial court conducted a hearing on Rauhauser‘s motion to dismiss but failed to sign an order ruling on the motion, which resulted in the motion being denied by operation of law. See
III. RAUHAUSER‘S ISSUES
In his first four issues, Rauhauser argues that the trial court erred by failing to grant his motion to dismiss because he established by a preponderance of the evidence that the suit against him was based on, related to, or was in responsе to his exercise of free speech; Appellees failed to marshal clear and specific evidence of a prima facie case for each element of their claims against him; and his motion to dismiss survived Appellees’ nonsuit. In his fifth issue, Rauhauser requests that, if this court holds that the trial court erred by not granting his motion to dismiss, we render judgment for him on his claim for attorney‘s fees and sanctions.
IV. RAUHAUSER‘S TCPA MOTION TO DISMISS SURVIVED APPELLEES’ NONSUIT
We address Rauhauser‘s fourth issue first. In that issue, Rauhauser asserts that the trial court erred by failing to grant his motion to dismiss because it survived Appellees’ nonsuit.
Under Texas law, parties have an absolute right to nonsuit their own claims for relief at any time during the litigation until they have introduced all evidence other than rebuttal evidence at trial.
The law is well-settled that a defendant‘s motion to dismiss that may afford more relief than a nonsuit affords constitutes a claim for affirmative relief that survives a nonsuit, as evidenced by three Texas Supreme Court per curiam opinions. See, e.g., CTL/Thompson, 390 S.W.3d at 300-01; Villafani, 251 S.W.3d at 468-69; Klein, 949 S.W.2d at 308. CTL/Thompson involved a suit against a design professional; the Texas Supreme Court held that,
Appellees nonetheless contend that this line of cases should not apply to the present facts because Rauhauser had not been served with citation when he filed an answer and the motion to dismiss2 and because Rauhauser was aware before filing the motion to dismiss that Appellees were going to nonsuit the present case and to instead include him as a defendant in an almоst identical federal case in California. Appellees point out that they attached a copy of the California federal court petition to their notice of nonsuit. Appellees also complain that Rauhauser‘s TCPA motion to dismiss is a procedural tactic that he intends to use to his advantage in the federal lawsuit in California. The truth of these facts, however, does not alter the applicability of the above cases. Appellees do not cite, and we have not located, any cases indicating that a defendant‘s choice to file an answer before service of citation, a defendant‘s knowledge of an upcoming nonsuit, a plaintiff‘s good faith in filing a nonsuit, or a defendant‘s intent to use a dismissal in another lawsuit against him by the same plaintiffs are relevant factors in determining whether a defendant‘s motion to dismiss constitutes a claim for affirmative relief that survives a nonsuit.3 Instead, when dismissal under a statutory provision enacted for the purpose of deterring the filing of frivolous lawsuits would grant the defendant moving for dismissal under that statutory provision more relief than the nonsuit, the defendant‘s dismissal motion survives the nonsuit without regard to the defendant‘s knowledge of the upcoming nonsuit or the plaintiff‘s good faith in filing the nonsuit. See, e.g., Villafani, 251 S.W.3d at 470 (explaining that when purpose of statutory provision authorizing a motion for dismissal, sanctions, and attorney‘s fees is deterrence of frivolous claims, “[r]emoving a defendant‘s ability to appeal a denial of [the motion for dismissal, sanctions, and attorney‘s fees] after a nonsuit frustrates this purpose; a claimant could simply nonsuit a meritless claim and later re-file the claim with impunity“).
V. DENIAL OF RAUHAUSER‘S MOTION TO DISMISS WAS ERROR
A. The TCPA
The Texas Legislature enacted the TCPA “to encourage and safeguard the constitutional rights of persons to petition, speak freely, associate freely, and otherwise participate in government to the maximum extent permitted by law аnd, at the same time, protect the rights of a person to file meritorious lawsuits for demonstrable injury.”
B. Standard of Review
We review de novo a trial court‘s ruling on a motion to dismiss under the TCPA. See United Food, 430 S.W.3d at 511; Rehak Creative Servs., Inc. v. Witt, 404 S.W.3d 716, 724-27 (Tex. App.-Houston [14th Dist.] 2013, pet. denied). Accordingly, we review de novo whether (1) the movant satisfied the initial burden imposed by section 27.005(b), and (2) the nonmovant satisfied the burden imposed by section 27.005(c). In reviewing the trial court‘s determination of whether the burdens imposed by section 27.005(b) and (c) have been met, we consider the pleadings and supporting and opposing affidavits stating the facts on which the liability is based. Accord
C. Application of the Law to the Present Facts
In his first, second, and third issues, Rauhauser asserts that the trial court erred by not granting his motion to dismiss because the statutory requisites for
1. Rauhauser Met His Initial Burden Under the TCPA
Rauhauser bore the initial burden on his motion to dismiss to show by a preponderance of the evidence that Appellees’ action “is based on, relates to, or is in response to” the exercise of the right to free speech. See
Rauhauser‘s motion to dismiss alleged that McGibney was a public figure. Accordingly, the motion asserted that any communications Rauhauser had made concerning McGibney--by virtue of application of the TCPA‘s definitions--constituted communications in connection with a public figure and therefore met the TCPA‘s definition of the exercise of free speech. Rauhauser‘s motion to dismiss alleged that Appellees had sued him in response to this exercise of free speech. Rauhauser denied making the four specific statements concerning McGibney that were alleged in Appellees’ petition to have been made by “Retzlaff and other Defendants” but pointеd out that Appellees had sued him for “the same, indivisible misconduct as Retzlaff‘s misconduct at issue in this case” and for “this pattern of cyber-stalking, cyber-terrorism, defamation and harassment.” Rauhauser does not deny posting comments about McGibney; he denies posting the four comments itemized in Appellees’ pleading as attributed to “Retzlaff and other Defendants.”
In support of his motion to dismiss, Rauhauser attached affidavits and evidence. To establish that McGibney was a public figure, Rauhauser attached affidavit testimony offered on behalf of McGibney in other litigation. The affidavit was made by an Associate Professor of Advertising and Public Relations and states that McGibney is the main operator and public face of numerous online properties ownеd by ViaView and its subsidiary company, CheaterVille, Inc.; that McGibney regularly talks to the press about important issues such as bullying and infidelity; and that McGibney makes regular appearances on behalf of the internet social media services
Appellees assert that Rauhauser failed to meet his burden of shоwing by a preponderance of the evidence that their action against him is based on, is related to, or is in response to his exercise of free speech for two reasons. First, Appellees assert that, as a matter of law, chapter 27 does not apply because Rauhauser denied making the four statements set forth in Appellees’ petition. Second, Appellees contend that Rauhauser did not show by a preponderance of the evidence that McGibney is a public figure. We address both of these contentions.
Appellees first assert that--because the purpose of the TCPA is to encourage and safeguard the constitutional rights of persons to petition, speak freely, associate freely, and otherwise participate in government to the maximum extent permitted by law--the TCPA cannot apply to protect free speech when the defendant denies making the statement at issue. See Pickens v. Cordia, 433 S.W.3d 179, 188 (Tex. App.--Dallas 2014, no pet.) (agreeing that “since Michael denied sending the email, there can be no evidence the lawsuit was related to Michael‘s exercise of free speech and no chapter 27 basis for dismissing the claim“); see also Am. Heritage Capital, LP v. Gonzalez, 436 S.W.3d 865, 881 n. 16 (Tex. App.-Dallas 2014, no pet.) (relying on Pickens). We agree that a defendant who denies making any communication may not obtain dismissal by also simultaneously claiming that he was exercising his right of free speech by making a communication. See Pickens, 433 S.W.3d at 188. But here, Rauhauser does not deny making any communication about McGibney; he denies making the four specific statements itemized in Appellees’ petition, and he filed Retzlaff‘s affidavit, in which Retzlaff denied involvement with Rauhauser. A review of Appellees’ petition demonstrates that Appellees’ claims against Rauhauser are not based only on the four statements itemized in Appellees’ petition but are also based on other, non-itemized statements in postings and online
Appellees also assert that Rauhauser failed to meet his burden of showing by a preponderance of the evidence that their claims against him are based on, related to, or are in response to his exercise of free speech because Rauhauser did not show by a preponderance of the evidence that McGibney is a public figure. The TCPA does not provide a definition for the term “public figure,” so we look to the technical meaning that the term “public figure” has acquired in First Amendment cases. See
There are two classes of “public figures“: (1) general-purpose public figures, who are individuals who “achieve such pervasive fame or notoriety that [they] become[] ... public figure[s] for all purposes and in all contexts“; and (2) limited-purpose public figures, who are persons who “thrust themselves to the forefront of particular public controversies in order to influence the resolution of the issues involved ... invit[ing] attention and comment“; who voluntarily “inject[] [themselves] or [are] drawn into a particular public controversy ... assum[ing] special prominence in the resolution of public questions“; and who “thrust [themselves] into the vortex of [a] public issue ... [or] engage the public‘s attention in an attеmpt to influence its outcome.” Klentzman v. Brady, 312 S.W.3d 886, 904-05 (Tex. App.-Houston [1st Dist.] 2009, no pet.) (quoting Gertz v. Robert Welch, Inc., 418 U.S. 323, 345, 351, 352 (1974)). To determine whether a person is a limited-purpose public figure, Texas courts apply a three-part test: (1) the controversy at issue must be public both in the sense that people are discussing it and in the sense that people other than the immediate participants in the controversy are likely to feel the impact of its resolution; (2) the plaintiff must have more than a trivial or tangential role in the controversy; and (3) the alleged defamation must be germane to the plaintiff‘s participation in the controversy. WFAA-TV v. McLemore, 978 S.W.2d 568, 572 (Tex. 1998), cert. denied, 526 U.S. 1051 (1999).
The evidence attached to Rauhauser‘s motion to dismiss is sufficient to show by a
And finally, the defamatory conduct Rauhauser allegedly engaged in is germane to McGibney‘s participation in the controversy; the allegedly defamatory postings by Rauhauser allegedly occurred on the “ville” websites, primarily BullyVille. Thus, Rauhauser met his burden to show by a preponderance of the evidence that McGibney is a limited-purpose public figure with respect to the controversy of “vigilante justice” attained by victims of bullying and cheating via posting photos and information about their perpetrators on BullyVille and CheaterVille. See Vice v. Kasprzak, 318 S.W.3d 1, 15-16 (Tex. App.-Houston [1st Dist.] 2009, pet. denied) (explaining that plaintiff met all three prongs of the limited-purpose public-figure test); accord Pickens, 433 S.W.3d at 187 (explaining that defendant met his initial burden under the TCPA of establishing the first two prongs of the three-part, limited-purpose public-figure test but failed to establish the third prong--that the allegations in the lawsuit were germane to T. Boone‘s participation in the energy controversy). We hold that Rauhauser met his burden under section 27.005(b) of the TCPA of establishing by a preponderance of the evidence that McGibney is a limited-purpose public figure.7 See
Appellees argue that even if Rauhauser established by a preponderance of the evidence that McGibney is a public figure, Rauhauser did not attempt to establish ViaView‘s public-figure status. We agree that Rauhauser did not attempt to establish ViaView‘s public-figure status; in fаct, Rauhauser‘s motion to dismiss affirmatively states that ViaView is not a public figure. Consequently, to the extent that ViaView asserts claims against Rauhauser for damages arising from communications other than communications in connection with an issue related to McGibney, Rauhauser has failed to establish by a preponderance of the evidence that those claims were based on his exercise of the right of free speech. See
2. Appellees Did Not Meet Their Burden Under the TCPA
Once Rauhauser met his initial burden under the TCPA concerning the claims against him that are based on communications by Rauhauser made in connection with an issue related to McGibney, the trial court was required to dismiss those claims unless Appellees established by clear and specific evidence a prima facie case for each essential element of the claims in question. See
VI. REMAND OF RAUHAUSER‘S CLAIM FOR ATTORNEY‘S FEES AND SANCTIONS
In his fifth issue, Rauhauser argues that if this court determines that the trial court erred by not granting his motion to dismiss, we should render judgment for him on his claim for attorney‘s fees and sanctions pursuant to section 27.009 of the TCPA. See
Section 27.009 provides, in pertinent part:
(a) If the court оrders dismissal of a legal action under this chapter, the court shall award to the moving party:
(1) court costs, reasonable attorney‘s fees, and other expenses incurred in defending against the legal action as justice and equity may require; and
(2) sanctions against the party who brought the legal action as the court determines sufficient to deter the party who brought the legal action from bringing similar actions described in this chapter.
Appellees argue that Rauhauser is not entitled to attorney‘s fees and sanctions because a party moving for dismissal is eligible for an award of attorney‘s fees and sanctions only after a trial court grants a dismissal and orders dismissal. Appellees point out that no order granting dismissal exists in this case; Rauhauser‘s motion for dismissal was denied by operation of law. Because we have held that Rauhauser met his initial burden under the TCPA concerning the claims against him that are based on communications by him made in connection with an issue related to McGibney, because Appellees filed a nonsuit instead of attempting to establish by clear and specific evidence a prima facie case for each essential element of those claims, because Rauhauser‘s motion to dismiss survives Appellees’ nonsuit, and because this case is remanded to the trial court for entry of an order of dismissal, Rauhauser is eligible for an award of costs, attorney‘s fees, expenses, and sanctions. See
We overrule Rauhauser‘s fifth issue requesting that we render judgment for him for costs, attorney‘s fees, expenses incurred, and sanctions.
VII. CONCLUSION
Having sustained Rauhauser‘s first issue in part and his third and fourth issues, having overruled his fifth issue, and having determined that we need not address his second issue, we reverse the denial by operation of law of Rauhauser‘s motion to dismiss under the TCPA as to all McGibney‘s claims against Rauhauser and as to all ViaView‘s claims against Rauhauser that are based on alleged communications made by Rauhauser in connection with an issue related to McGibney. To the extent that ViaView‘s claims against Rauhauser for business disparagement and for tortious interference with business relationships are not basеd on alleged communications made by Rauhauser in connection with an issue related to McGibney, Rauhauser has failed to meet his section 27.005(b) burden to obtain dismissal under the TCPA of those claims. We remand this case to the trial court to enter an order of dismissal in accordance with this opinion and for further proceedings relating to Rauhauser‘s court costs, attorney‘s fees, expenses, and sanctions under section 27.009(a)(1) and (2) of the TCPA.
