A Texas appellate court upheld a decision to deny a man’s Texas Citizens Participation Act (TCPA) motion to dismiss litigation alleging business disparagement.
Plaintiffs United States Precious Metals, L.L.C. (USPM) and Nathan Camp sued Defendant Todd Nobles for breach of contract and defamation after Nobles allegedly violated an anti-disparagement agreement.
“Mr. Nobles disparaged Mr. Camp in his conversation with Casey Mozley on or about March 4, 2019,” the plaintiffs allege in their complaint. “Mr. Nobles claimed to be acting in partnership with a disgruntled employee who quit her employment at USPM, Ms. Christi Armstrong.”
Nobles defended himself by citing the TCPA, which applies to communications regarding matters of public concern involving the right of free speech, the right to petition or the right of association, according to the Ninth District of Texas at Beaumont ruling.
“Nobles argued that the TCPA applied to bar Appellees’ claims against him for business disparagement and defamation per se because they “are based on, related to, and are in response to Defendant’s exercise of his right of free speech,” wrote Justice Charles Kreger who authored the March 26, 2020 opinion.
The plaintiffs responded that the TCPA does not apply and that they are simply trying to enforce a settlement agreement, which includes non-disparagement.
“Appellees sought to recover actual damages, attorneys’ fees and costs, and punitive damages,” the appellate court decision states. “In support of their petition, Appellees attached a redacted version of the signed buyout agreement showing the mutual non-disparagement provision.”
The Ninth District of Texas at Beaumont ultimately decided that defendant Nobles did not establish by a preponderance of the evidence that the TCPA applies.
“We conclude the trial court properly denied his TCPA motion to dismiss Appellees’ business disparagement and defamation per se claims,” Justice Kreger wrote.