Andrew Brammer and Yolanda Brammer v. KB Home Lone Star, L.P.

Court of Appeals of Texas·Decided July 24, 2003·No. 03-03-00009-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-03-00009-CV

Andrew Brammer and Yolanda Brammer, Appellants v.

KB Home Lone Star, L.P., Appellee

FROM THE DISTRICT COURT OF TRAVIS COUNTY, 250TH JUDICIAL DISTRICT NO. GN204355, HONORABLE PAUL DAVIS, JUDGE PRESIDING

OPINION

This is an interlocutory appeal challenging the district court’s order granting a temporary injunction. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(4) (West Supp. 2003). Appellee KB Home Lone Star, L.P. (“KB Home”) applied for and obtained a temporary injunction to enjoin appellants Andrew and Yolanda Brammer from defaming or disparaging KB Home. The temporary injunction also places restrictions on the Brammers’ participation in demonstrations at KB Home subdivisions. We conclude that portions of the injunction infringe upon the Brammers’ freedom of expression guaranteed by the First Amendment to the United States Constitution and by article I, section 8 of the Texas Constitution. See U.S. Const. amend. I; Tex. Const. art. I, § 8. We therefore modify the temporary injunction and, as modified, affirm the district court’s order granting the temporary injunction.

BACKGROUND

KB Home builds homes in several subdivisions in the Austin area. The Brammers purchased a KB Home in the fall of 2000, and within a few months experienced problems with their new home. KB Home made repairs to the Brammers’ home under the warranty. Following the repairs, the Brammers contacted KB Home and complained that the repairs had seriously disrupted their lives, especially because Yolanda Brammer had taken time off from her employment to be present at the home while the KB Home representatives performed the warranty work. Yolanda Brammer felt that she was entitled to some sort of compensation from KB Home, and suggested to Larry Oglesby, KB Home-Austin’s president, that unless compensated she would create adverse publicity for KB Home by speaking to the Brammers’ neighbors as well as others. According to Oglesby, he began discussing with Yolanda Brammer a “remedy to the situation,” fearing that the Brammers’ dissatisfaction could become “a very large issue.”

On June 11, 2001, the Brammers and Oglesby negotiated a contract (“the Agreement”) under which KB Home would compensate the Brammers for their inconvenience and give them items outside their warranty. The Agreement, which is a letter from Oglesby to the Brammers, reads in pertinent part:

This letter will serve as our agreement (“Release”) to resolve any and all of our differences relating to the purchase of your home. In consideration of your agreement to waive and release any and all claims related to your home, KB Home will agree to the following:

1. Install a glass fireplace enclosure.
2. Provide you with 8 pallets of sod.

3. Install gutters on the home. Color to be chosen by you.

4. Installation of refrigerator . . . .

5. $2,000.00.

By signing below, you hereby agree that this is good and adequate consideration for this Release, and no further compensation, in the form of upgrades, product or cash, will be paid to you and your family by KB Home.

The payment of this consideration and performance of these actions is conditioned upon a full and final release of KB Home, its affiliates, and its employees, officers, directors, agents and representatives of KB Home from any and all claims related to all outstanding issues. Moreover, you expressly agree that the terms of this settlement and Release are to remain strictly confidential and may not be disclosed to any third party without our written consent. Furthermore, you agree not to use any public medium such as the “internet” or any broadcast or print medium or source to complain or disparage the building quality or practices of KB Home, it being acknowledged that any complaints or actions against KB Home are to be resolved solely in a private manner.

This Release will not act as a waiver of any warranties that may be applicable to your residence.

....

Several months after entering into the Agreement, the Brammers noticed other quality defects in their home, which they reported to KB Home. They complained of a water leak, uneven flooring, crooked walls, unlevel doors that would not close properly, a cracking driveway, loosened gutters, holes in the garage walls, and inoperative electrical outlets. Again the Brammers requested compensation outside their warranty. When KB Home refused, Yolanda Brammer told Oglesby, “You have a lawsuit coming.” In May 2002, the Brammers’ attorney sent KB Home written notice that it had violated the Texas Residential Construction Liability Act. See Tex. Prop. Code Ann. § 27.003 (West 2000). The Brammers’ attorney requested that KB Home not contact his clients, and

thereafter the Brammers refused KB Home access to their home for the purpose of making inspections or repairs.

Meanwhile, convinced that KB Home had sold them a “lemon,” the Brammers began participating in demonstrations organized by Homeowners for Better Building (HOBB). HOBB demonstrations occurred at various KB Home neighborhoods, KB Home’s main office, and at rallies in support of a home “lemon” law at the state capitol and city council meetings. In October 2002, during a HOBB demonstration at the grand opening of a KB Home subdivision, the Brammers were approached by a News 8 Austin TV reporter who asked if he could interview them at their home. The Brammers agreed. The interview footage was aired in a news story and showed the defective features of the Brammers’ home.

On December 5, 2002, KB Home filed an original petition and an application for a temporary restraining order, temporary injunction and permanent injunction. In its petition, KB Home alleged that the Brammers were liable for (1) breach of contract because they had publicly complained about and disparaged the building quality and practices of KB Home, in violation of the Agreement; (2) tortious interference with contract as a result of the Brammers’ picketing activities at KB Home sites and the news interview; and (3) slander, libel, and business disparagement. KB Home’s application for injunctive relief sought to enjoin the Brammers from engaging in these activities for the purpose of slandering, defaming, or publicly disparaging KB Home’s business in any manner because KB Home continuously suffered irreparable harm in the form of “increasing damage to its reputation daily, including loss of customers and loss of goodwill.” The district court

granted the temporary restraining order the same day and set a hearing on the temporary injunction for December 19, 2002.

Following a hearing, the district court granted the temporary injunction. In support of its decision, the court found that: (1) the injunction served governmental interests by maintaining public safety and order; (2) KB Home has no adequate remedy at law because it will never know the extent of damage to its reputation caused by the defamation and the damage to its reputation cannot be proved with specificity; (3) the general health, safety, and welfare of the public will suffer irreparable harm in the absence of the injunction; and (4) the injunction maintained the status quo. Until final judgment is rendered in the pending suit, the Brammers are enjoined from:

(a) directly or indirectly slandering or defaming Plaintiff in any way, or from directly or indirectly disparaging Plaintiff’s business;

(b) directly or indirectly contacting Plaintiff’s existing customers, Plaintiff’s prospective customers or Plaintiff’s employees, when the communication includes direct or indirect slander or defamation of Plaintiff in any way, or direct or indirect disparagement of Plaintiff’s business;

(c) coming within 75 feet of Plaintiff’s sales offices, business offices, model homes and/or any construction site on which Plaintiff is constructing a home;

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Andrew Brammer and Yolanda Brammer v. KB Home Lone Star, L.P., (Tex. Ct. App. 2003).

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