Tuesday, September 1, 2015

Texas Anti-SLAPP Law: The Expanding Scope of the Texas Citizen’s Participation Act (conclusion)

Originally published by Travis Crabtree.

Go to Part 4 – A decision in Schlumberger

Go to Part 3 – The Schlumberger case and employment disputes

Go to Part 2 – In Practice

Go to Part 1 – The basics of the Texas Anti-SLAPP law

To conclude the series, we look at one more opinion — Serafine v. Blunt, No. 03-12-00726-CV, 2015 WL 2061922 (Tex. App.—Austin May 1, 2015).  This case dealt with a property dispute, but the real interest comes from the lengthy concurring opinion that is worth your read if you are studying the broad applicability of the Anti-SLAPP law.

In this property dispute amongst neighbors, Serafine asserted claims for trespass to try title, trespass, nuisance, negligence, and fraud by nondisclosure, and sought declaratory and injunctive relief, in addition to damages and attorneys’ fees. The Blunts answered Serafine’s suit and also filed counterclaims, asserting that Serafine tortiously interfered with their contract with the drainage and foundation company and that Serafine violated Chapter 12 of the Texas Civil Practice and Remedies Code by fraudulently filing a lis pendens in the Travis County Real Property Records.  Serafine moved to dismiss the Blunts’ counterclaims under the TCPA which the trial court denied.

Serafine contends that she established that the Blunts filed their counterclaims in response to her exercise of her right to petition, i.e., in response to her filing suit against them, because the two counterclaims on their face complained of her filing of the lawsuit and her filing of the lis pendens notice based on her claims related to the property boundary. The Blunts argued that their tortious-interference counterclaim was not based solely on Serafine’s filing of the lawsuit, but also on her harassing and threatening conduct before and after the lawsuit. They further argued that Serafine incorrectly argued that a lis pendens cannot serve as the basis for a fraudulent-lien claim.

The appellate court held the TCPA applied in part because the Blunts’ tortious interference counterclaim was, in part based on, related to, or in response to Serafine’s filing of the suit and that their fraudulent-lien counterclaim is based on, related to, or in response to Serafine’s filing of the lis pendens, both of which filings are exercises of Serafine’s “right to petition.”  However, to the extent that the Blunts’ tortious-interference counterclaim was based, in part, on Serafine’s alleged threats made outside the context of the lawsuit, then the TCPA did not apply.  The appellate court therefore dismissed the majority of the tortious interference and false lien claims and remanded the claim back to the trial court for consideration of the attorneys’ fee awards and the remaining claim related to threats as opposed to the filing of the suit.

The lengthy concurring opinion found the TCPA should apply in this case, but raised concerns that the TCPA was being used too broadly.  The Houston Court of Appeals may agree.  In Jardin v. Marklund, 431 S.W.3d 765 (Tex. App.-Houston [14th Dist.] 2014, no pet.), the court attacked at length the notion that the TCPA’s protections for the “exercise of the right to petition” can be invoked “simply by filing a petition in a lawsuit between private parties.” It found the TCPA incorporates, and must be construed in light of the purpose of the act and its First Amendment underpinnings.  The Jardin majority reasoned courts should draw lines between “public” versus “private” issues, such that merely filing a lawsuit would not invoke the constitutional right to petition (and, in turn, the TCPA) unless the suit’s subject matter independently concerned government or “the public interest.”

This would appear to be more in line with the ExxonMobil v. Coleman decision in Part 2.  The Dallas court considered the purpose of the TCPA and concluded that “to constitute an exercise of the right of association under the Act, the nature of the ‘communication between individuals who join together’ must involve public or citizen’s participation.” Id. at 12.  The court continued that reading the definition of the right “right of association” in isolation “would lead to absurd results” and would apply the TCPA to “to virtually any private communication between two people about a shared interest.” Id. at 10.

Erica Badu – music management and Anti-SLAPP

Another case to watch is Levatino v. Apple Tree CafĂ© Touring, Inc., No. 05-15-00614-CV in the Dallas Court of Appeals. In that case, the defendant had claimed he was the manager for Erica Badu.  He and his counsel sent Rule 408 demand letters to Badu and her company.  Badu and the company filed a declaratory judgment action.  The defendant, Levatino, then filed a TCPA motion to dismiss claiming his pre-suit demand were both the exercise of the right to petition and the right to associate.  The trial court, before the more recent Supreme Court of Texas decisions, denied the motion.

A final note on “clear and specific evidence”

In In Re Lipsky, __S.W.3d__, No. 13-0928, 2015 WL 1870073 (Tex. Apr. 24, 2015, orig. proceeding), Lipsky moved to dismiss a multimillion-dollar defamation suit the plaintiff, Range, filed against him after he criticized the company’s hydraulic fracturing activities near his home. Lipsky argued Range failed to prove that he said anything defamatory and has only offered a “conclusory” affidavit alleging the company suffered $3 million in damages, which is insufficient to meet the TCPA’s evidentiary standard.

The Supreme Court of Texas ruled the defendant is allowed to rely upon circumstantial evidence to satisfy its burdens under the TCPA writing:

 In a defamation case that implicates the TCPA, pleadings and evidence that establishes the facts of when, where, and what was said, the defamatory nature of the statements, and how they damaged the plaintiff should be sufficient to resist a TCPA motion to dismiss.

 Though the TCPA initially demands more information about the underlying claim, the Act does not impose an elevated evidentiary standard or categorically reject circumstantial evidence.   In short, it does not impose a higher burden of proof than that required of the plaintiff at trial.

The point of this series is that the Anti-SLAPP provisions aren’t just for us defamation lawyers anymore.  All litigators should have a basic understanding of how this works and ask of the opposing side’s claims have anything to do with: (1) the right of free speech; (2) the right to petition; or (3) the right of association.petitioning the government as those are broadly defined.

The post Texas Anti-SLAPP Law: The Expanding Scope of the Texas Citizen’s Participation Act – Part 5 (the conclusion) appeared first on eMedia Law Insider.

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Webinar to train paralegals on pro bono volunteering

Originally published by Lindsay Stafford Mader.

TLHLogo_280The Paralegal Division of the State Bar of Texas and texaslawhelp.org are offering a free training webinar to paralegals who are interested in volunteering for the website’s pro bono program. The webinar will be available online September 9 from 6 to 7:30 p.m., and the Paralegal Division’s Fort Worth/Arlington division will host an in-person training that evening at Taylor, Olson, Adkins, Sralla & Elam in Fort Worth.

For more information, go to the Paralegal Division’s press release. Interested paralegals can register for the webinar here.

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Does Equal Protection Require Accommodation of Moral Conviction to Same Degree as Religious Belief?

Originally published by Nonprofit Blogger.

In Anti-abortion Group Wins Case Against Obama, USA Today reports that United States District Court Judge Richard Leon of the District of Columbia has ruled that the “anti-abortion group March for Life does not have to offer insurance coverage for…

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Contempt finding vacated, again.

Originally published by David Coale.

Continuing a series of opinions that vacated findings of contempt – most recently in Waste Management v. Kattler, 776 F.3d 336 (5th Cir. 2015) – the Fifth Circuit vacated a contempt finding against an attorney for allegedly encouraging his client to make inappropriate online postings.  Test Masters Educational Services v. Singh Educational Services, No. 13-20250 (Aug. 21, 2015).  Applying Waste Management, the Court found inadequate notice from a show-cause order that only named the client.  On the merits, agreeing that the relevant injunction against the client bound the attorney, the Court found no clear and convincing evidence that he personally had violated the injunction.

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The Importance of Having a Terms of Use Agreement for Your Website and eCommerce

Originally published by Klemchuk LLP IP Blog.

A terms of use agreement serves as a contract between a website operator and a website user, essentially allowing the operator to set ground rules for the website’s use. These agreements have become a near-necessity for website operators because they help show that users understand how they are permitted to interact with the website and that they have agreed to adhere to those parameters of interaction. Thus, any company with an online presence should consider including a well-crafted terms of use agreement for several reasons.

The Agreement Can Help Protect Your Website’s Content
Within a terms of use agreement, the operator can inform users of how they may use the website and how they may not use a website. Further, if the website allows account registration, the agreement may includ…

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Amarin, FDA talking settlement

Originally published by Saul Perloff (US).

In a letter dated August 28, an attorney representing Amarin Pharma, Inc. advised the judge overseeing Amarin’s case against FDA, that “The parties have agreed to explore the possibility of settlement of this matter.”

In our recent post, we analyzed U.S. District Judge Paul Engelmayer’s August 7th decision granting Amarin’s motion for preliminary injunction against the FDA. Judge Engelmayer ruled that Amarin has a First Amendment right to make truthful and non-misleading statements about off-label uses of its prescription drug Vascepa. Shortly after issuing his ruling, the judge directed Amarin and the FDA to confer “as to the future course of and next steps in the case” and to report back to the court. Order, Amarin Pharma, Inc. v. U.S. Food & Drug Admin., Case No. 15-3588 (S.D. N.Y. Aug. 10, 2015).

In addition to reporting that the parties were exploring settlement, the August 28 letter, requested that further proceedings in the case be stayed until October 30. 2015, “on which date the parties will file a joint letter advising the Court of their views as to next steps in the case.”

 

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Could Your Restaurant Be Violating A Federal Wage Law?

Originally published by Leiza Dolghih.

office-space-flairIn the words of the Fifth Circuit Court of Appeals, “this case concerns coffee and tipping.”  More specifically, Montano v. Montrose Restaurant Associates, Inc. concerns a question of whether a restaurant violated Fair Labor Standards Act (FLSA) by requiring waiters to share their tips with the restaurant’s “coffeman.”  The district court dismissed the waiters’ claim, but the Fifth Circuit reversed the ruling and send the case back to the district court to determine whether the coffeman was a “regularly tipped employee.”

If you own a restaurant, or you work in one, you are probably familiar with the practice of pooling tips, i.e. gathering all tips from the shift and splitting them between waiters, busboys, bartenders, etc. Under the FLSA, only those employees who “customarily and regularly receive tips” may be included in the pool in order for an employer to receive a “tip credit” for such employees.   The Department of Labor (“DOL”) has issued several rules and guidance over the years as to which occupations customarily and regularly receive tips and which do not. For example, waiters/waitresses, bellhops, counter personnel who serve customers, busboys/girls (server helpers), and service bartenders are considered tipped occupations, while janitors, dishwashers, chefs or cooks, and laundry room attendants are not.

The DOL also clarified in some of its opinion letters that one’s status as an employee who “customarily and regularly receives tips” is “determined on the basis of his or her activities,” not on the employee’s job title. Thus, while regular chefs are not tipped employees, sushi chefs who work at a counter in the dining room and directly serve customers may participate in tip pools.  Some courts have found that hostesses were tipped employees because they had “more than de minimis interaction with the customers” in an industry in which “undesignated tips are common.” However, salad preparers were not tipped employees because they “abstained from any direct intercourse with diners, worked entirely outside the view of restaurant patrons, and solely performed duties traditionally classified as food preparation or kitchen support work.”

The Fifth Circuit ruled that “in determining whether an employee customarily and regularly receives tips, a court—or a factfinder—must consider the extent of an employee’s customer interaction.”  It explained that the central difference between employees who are traditionally tipped and those who are not is that the former work primarily in the front of the house where they are seen by and interact with customers, while the latter work primarily or exclusively in the back of the house. Applying this logic, it found that the district court erred in failing to consider the extent of the coffeeman’s customer interaction in determining whether he customarily and regularly received tips.

In conclusion, the Court explained that “determining whether an employee is one who “customarily and regularly receives tips” is a fact-intensive inquiry that requires a “case-by-case analysis of the employee’s duties and activities.”

TAKEAWAY:  In recent years, restaurant industry has faced many wage-and-hour lawsuits involving claims for unpaid overtime and failure to pay minimum wage. Restaurants which use tip pools face additional claims related to such pooling arrangements.  The Montano case illustrates that who is a “tipped employee” and who is not for the purpose of a pooling arrangement is a factually intense question, which means that employers should carefully consider whether certain types of their employees belong in a tipping pool and should consult with an attorney before instituting such a system in their establishment.

Leiza Dolghih represents both companies and employees in litigation and arbitration proceedings in state and federal courts.  If you are facing an actual or a potential employment dispute, contact Ms. Dolghih for a confidential consultation at Leiza.Dolghih@GodwinLewis.com or (214) 939-4458.

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