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SOUTHEAST TEXAS RECORD

Wednesday, April 24, 2024

9th District Court overturns denial of motion to dismiss golf course property sale case

Lawsuits

BEAUMONT – The River Plantation Community Improvement Association successfully appealed a ruling denying its motion to dismiss counterclaims filed by the defendants in a Texas Citizen’s Participation Act (TCPA) case.  

According to the court: “Under the TCPA, if the conditions triggering a dismissal apply, a party responding to a motion to dismiss must establish that it has prima facie proof on each of the elements of its claim or the trial court must dismiss it.”  

Judge Hollis Horton of the U.S. Court of Appeals for the 9th District of Texas at Beaumont found that the trial court erred when it rejected the Association’s motion. The new ruling was delivered on Aug. 30.  

According to the ruling, in December 2016, defendant River Plantation Properties LLC agreed to sell almost 300 acres of land traditionally used as a golf course to RVR Ventures Inc. A few months later, Hermes Integrators LLC (H.I.) purchased the land.  

H.I. then agreed to sell a portion of the land to a developer planning to build single-family homes. Two months later, defendant Hermes Integrators I LLC acquired the rights to land. It intended to complete the sale with the developer.  

The Association filed a complaint after it learned that the land would be used for a purpose other than golf. According to the Association, the Plantation and Hermes are bound by an easement.  

Defendants filed counterclaims in response. They claim that the Association deliberately filed suit in order to stop the pending deal with the developer.

“We hold that the pleadings and evidence considered by the trial court during the hearing on the Association’s motion to dismiss failed to establish that the Association willfully or intentionally interfered with contracts between Hermes and the Plantation,” Horton wrote.  

The appeals court found that the Association filed suit because it sought declaratory judgment and not because it intended to interfere with the defendants’ business dealings.

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