Creative Planning v. Greco

Court of Appeals of Kansas·Decided May 15, 2026·No. 127136·Published

Opinion

No. 127,136

IN THE COURT OF APPEALS OF THE STATE OF KANSAS

CREATIVE PLANNING, LLC, f/k/a CREATIVE PLANNING, INC., Appellee/Cross-Appellant,

v.

STEPHEN A. GRECO

and

SPOTLIGHT ASSET GROUP, INC., Appellants/Cross-Appellees.

SYLLABUS BY THE COURT

1.

The purpose of the Kansas Public Speech Protection Act (KPSPA), K.S.A. 60-

5320 et seq., is two-fold: to encourage and protect a person's right to petition, speak, and associate freely about public issues or issues of public interest under the First Amendment to the United States Constitution while also protecting the rights of others to file meritorious lawsuits. K.S.A. 60-5320(b).

2.

To effectuate its purpose, the KPSPA permits a party, early in litigation, to move to strike a meritless claim that impedes the moving party's right to free speech, right to petition, or right of association under the First Amendment. K.S.A. 60-5320(d). Courts must balance the power of the motion to strike under the KPSPA to avoid the chilling effect of frivolous litigation on First Amendment rights while also protecting a party's right to pursue potentially meritorious claims for demonstrable injury. The motion to strike is not intended to be a litigation tactic to defeat potentially meritorious and permissible litigation through onerous discovery limitations.

3.

After a party files a motion to strike under K.S.A. 60-5320(d) of the KPSPA, the district court—upon a showing of good cause—may permit specified discovery, motions, or other pending hearings to proceed under K.S.A. 60-5320(e)(2) and may allow specific, limited discovery relevant to the motion to strike under K.S.A. 60-5320(e)(1). Good cause for limited, specific discovery related to a motion to strike under K.S.A. 60-5320(e) exists when the court finds that the information sought through formal discovery cannot be readily obtained through other means and that the information will assist the district court in determining whether the parties have established the elements supporting or defeating a motion to strike.

4.

Generally, the district court is entrusted with broad discretion to control discovery, and those discovery decisions will not be disturbed on appeal without a showing of a clear abuse of discretion. The KPSPA does not undermine or diminish the district court's broad authority to make discovery decisions but merely sets a different legal standard under which the district court exercises that discretion.

5.

The Legislature limited the ability to seek interlocutory review of a ruling on a motion to strike under the KPSPA to the movant's appeal from the district court's denial of a motion to strike—that is, the person who pursued and did not prevail on the motion to strike. See K.S.A. 60-5320(f)(2). Under the KPSPA, pendent jurisdiction cannot be used to expand appellate jurisdiction to permit the nonmovant's cross-appeal of the district court's interlocutory rulings not appealed by the movant.

Appeal from Johnson District Court; K. CHRISTOPHER JAYARAM, judge. Oral argument held July 8, 2025. Supplemental briefing filed July 31, 2025. Opinion filed May 15, 2026. Affirmed in part, dismissed in part, and remanded.

Terrence J. Campbell, Erin K. Levy, and Matthew J. Rogers, of Barber Emerson, L.C., of Lawrence, for appellants/cross-appellees.

Melissa Hoag Sherman, of Spencer Fane LLP, of Overland Park, and Leslie A. Greathouse, of the same firm, of Kansas City, Missouri, for appellee/cross-appellant.

Before COBLE, P.J., ISHERWOOD and HURST, JJ.

HURST, J.: The Kansas Public Speech Protection Act (KPSPA) was adopted to protect people from frivolous litigation that would inhibit free speech about matters of public concern—but it is not a sword to cut the legs from potentially meritorious claims through prohibitory discovery standards. Creative Planning LLC (Plaintiff) sued a former employee and his new company, Spotlight Asset Group Inc. (Spotlight) (collectively, Defendants), for allegedly violating the terms of a settlement agreement, asserting various claims against Defendants singularly and jointly. Defendants moved to strike portions of each claim under the KPSPA by alleging the speech at issue was related to a matter of public concern and thus protected by the First Amendment to the United States Constitution.

Although discovery in the underlying litigation is generally stayed after a defendant moves to strike under the KPSPA, Plaintiff sought discovery related to the motion to strike. The KPSPA allows for specific, limited discovery related to the motion to strike upon finding good cause for such. Over Defendants' objections, the district court significantly narrowed the requests and ordered discovery. Then Defendants also sought discovery, which the district court partially granted. The district court ultimately granted the Defendants' motion to strike three of Plaintiff's five claims, but found that portions of Plaintiff's claims for breach of contract and tortious interference with prospective business advantages and relationships could proceed. Therefore, the district court determined—based on the available evidence obtained through discovery—that Plaintiff

demonstrated a likelihood of success on the merits as to counts I and II and did not on counts III, IV, and V.

Defendants appeal the district court's denial of the motion to strike as to counts I and II because, according to Defendants, the district court wrongly permitted discovery that allowed the Plaintiff to obtain evidence to defeat the motion to strike as to those two counts. In an unusual posture, Defendants apparently concede that if this court considers the merits of the district court's denial, based on that available evidence, the district court correctly denied their motion to strike as to counts I and II. That is, only if this court finds the district court should not have permitted the discovery would Defendants prevail in this appeal. Adding to the unusual nature of the case, Plaintiff also seeks interlocutory review of the district court's decision to grant the motion to strike counts III, IV, and V, claiming pendent jurisdiction permits this court's interlocutory review.

Defendants allege generally that the Plaintiff failed to demonstrate good cause necessary to permit specific, limited discovery related to Defendants' motion to strike under the KPSPA. Finding no such error, this court is left with nothing to review regarding the merits of the district court's denial of the motion to strike as to counts I and II. Additionally, this court lacks jurisdiction to consider Plaintiff's cross-appeal related to counts III, IV, and V. In an interlocutory appeal, pendent jurisdiction does not create appellate authority for cross-appeal of a claim for which no statutory authority permitting appeal exists. Finally, after oral argument, Defendants moved for appellate attorney fees if they prevailed on the merits. As that has not occurred, the request is denied.

The district court is affirmed, the cross-appeal is dismissed, and the case is remanded.

FACTUAL AND PROCEDURAL BACKGROUND

Plaintiff is a Missouri limited liability financial services company headquartered in Kansas. In 2013, Plaintiff hired Stephen A. Greco as its National Director of Wealth Management. Shortly after being hired, Greco signed a noncompetition and confidentiality agreement (Confidentiality Agreement) that prohibited him from disclosing Plaintiff's confidential information or competing with Plaintiff during his employment and for a specified period thereafter. In December 2016, while still employed by Plaintiff and arguably (according to Plaintiff) in violation of the Confidentiality Agreement, Greco formed Spotlight Asset Group Inc., an Illinois corporation. A few months later, in March 2017, Greco resigned and began working at Spotlight.

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