Astoria Industries of Iowa, Inc. v. SNF Inc. D/B/A Brand FX Body Company

CourtCourt of Appeals of Texas
DecidedMarch 29, 2007
Docket02-05-00315-CV
StatusPublished

This text of Astoria Industries of Iowa, Inc. v. SNF Inc. D/B/A Brand FX Body Company (Astoria Industries of Iowa, Inc. v. SNF Inc. D/B/A Brand FX Body Company) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Astoria Industries of Iowa, Inc. v. SNF Inc. D/B/A Brand FX Body Company, (Tex. Ct. App. 2007).

Opinion

                                      COURT OF APPEALS

                                       SECOND DISTRICT OF TEXAS

                                                   FORT WORTH

                                        NO. 2-05-315-CV

ASTORIA INDUSTRIES OF IOWA, INC.                                    APPELLANT

                                                   V.

SNF, INC. D/B/A                                                            APPELLEE

BRAND FX BODY COMPANY                                                                

                                              ------------

            FROM THE 17TH DISTRICT COURT OF TARRANT COUNTY

                                OPINION ON REHEARING

We withdraw our opinion and judgment of October 19, 2006 and substitute the following.  We grant in part and deny in part the motion for rehearing filed by Astoria Industries of Iowa, Inc. (Astoria) and deny the motion for attorney=s fees and costs filed by SNF, Inc. d/b/a Brand FX Body Company (Brand FX).


                                       I.  INTRODUCTION

In this interlocutory appeal, Astoria appeals from the trial court=s denial of its motions for summary judgment on Brand FX=s claims for business disparagement, false advertising, and tortious interference with prospective business relations, among other causes of action.  Astoria contends that we have jurisdiction over this appeal under section 51.014(a)(6) of the civil practice and remedies code because its motions for summary judgment were based in whole or in part on a claim or defense arising under the First Amendment.[1]  In ten issues, Astoria complains that the trial court improperly denied its summary judgment motions.  Brand FX disagrees that we have jurisdiction over the appeal and urges us to dismiss it.  We hold that we have jurisdiction over part, but not all, of the appeal under section 51.014(a)(6).  We affirm in part, reverse and render in part, and dismiss in part.

              II.  BACKGROUND FACTS AND PROCEDURAL HISTORY


Astoria and Brand FX are business competitors.  They manufacture and sell fiberglass utility and service bodies and toppers[2] for commercial vehicles.  Brand FX=s topper utilizes a stair-step roof line that Brand FX claims is unique and brand-distinguishing.  Initially, Astoria=s only topper design had a rounded or domed roof line.  In late 2002, however, Astoria developed a topper with a stair-step design virtually identical to Brand FX=s topper for Cook=s Pest Control.  Astoria=s chief engineer, Randy Thole, acknowledged that Astoria developed the stair-step design topper for Cook=s Pest Control as similar to Brand FX=s design as possible.

Brand FX contends that Astoria switched to the stair-step topper design to take Cook=s Pest Control=s business from Brand FX by offering the topper for over $1000 less than the price that Brand FX charged.  Brand FX further contends that Astoria used illegal methods to design its stair-step topper, including Anefariously@ obtaining Brand FX=s design drawings and using a Brand FX topper to assist Astoria in making the mold for its replica topper.


Thereafter, in February 2003, Astoria began running a ADARE TO COMPARE@ advertisement in an industry trade journal (the Advertisement).  The Advertisement ran ten times over the course of fourteen months.  The Advertisement begins, AWhen choosing fiberglass utility bodies, Astoria Industries of Iowa should be your supplier!@  Then the Advertisement compares AHigh Quality Astoria Bodies vs. Low Quality Brand X Bodies.@  Regarding the latter, the Advertisement states, (1) ANo Engineering and built with sub-standard materials@; (2) AShort term cost with long term expenses@; (3) ABuilt to their standard@; and (4) A1-year warranty.@ 

Brand FX contends that Astoria=s reference to ABrand X Bodies@ is a poorly-disguised reference to Brand FX=s business name of Brand FX Body Company.  Brand FX further contends that three of the statements in the Advertisement are statements of fact that are demonstrably false:  (1) ANo Engineering and built with sub-standard materials@; (2) A

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Bluebook (online)
Astoria Industries of Iowa, Inc. v. SNF Inc. D/B/A Brand FX Body Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/astoria-industries-of-iowa-inc-v-snf-inc-dba-brand-texapp-2007.