Cynthia Beving v. John F. Beadles, Individually and as Independent of the Estate of Dudley D. Beadles

563 S.W.3d 399
Court of Appeals of Texas·Decided October 18, 2018·No. 02-17-00223-CV·Published·Cited by 49 cases

Opinion

In the

Court of Appeals

Second Appellate District of Texas at Fort Worth

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No. 02-17-00223-CV

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CYNTHIA BEVING, Appellant v.

JOHN F. BEADLES, INDIVIDUALLY AND AS INDEPENDENT EXECUTOR OF THE ESTATE OF DUDLEY D. BEADLES, Appellee

On Appeal from the 96th District Court Tarrant County, Texas

Trial Court No. 096-283896-16

Before Gabriel, Pittman, and Birdwell, JJ.

Opinion by Justice Pittman Gabriel, J., concurs without opinion.

OPINION

Once again, this court must don its legal pith helmet and face the task of exploring the farthest reaches of the Texas Citizens Participation Act (TCPA).1 Specifically, this court must address whether the trial court correctly denied Appellant Cynthia Beving’s TCPA motion to dismiss the third-party action filed against her by Appellee John F. Beadles, individually and in his capacity as executor of the estate of Dudley D. Beadles (Beadles). For the reasons set forth herein, we affirm the trial court’s denial of Beving’s motion to dismiss and remand the case for further proceedings.

BACKGROUND

This appeal involves a litigious and rancorous break-up of a business owned and operated by four attorneys. Although the clerk’s record is voluminous and the parties’ briefs are unnecessarily verbose, the sole issue in this appeal is fairly simple and the background of the underlying litigation straightforward.

The law firm Beadles, Newman & Lawler, PC (BNL) was formed in 1990 by attorneys and founding shareholders Dudley Beadles, Charles Newman, and Frank Lawler. Later, Dudley’s son, John Beadles, became a shareholder. BNL’s business

1 See Tex. Civ. Prac. & Rem. Code Ann. §§ 27.001–.011 (West 2015). The TCPA is commonly referred to as Texas’s “Anti-SLAPP” statute, so-called because the TCPA seeks to limit “Strategic Lawsuit[s] Against Public Participation.” See In re Lipsky, 411 S.W.3d 530, 536 n.1 (Tex. App.—Fort Worth 2013, orig. proceeding), mand. denied, 460 S.W.3d 579 (Tex. 2015).

focused on preparing closing documents for title companies, bankers, and realtors. BNL asserts that because of the nature of this business, it developed and relied upon certain proprietary software that provided BNL a competitive advantage.

Beving was hired by BNL on November 16, 2005, to act as the firm’s comptroller, and she later became the firm’s director of human resources. It appears that Beving’s tasks as comptroller also included managing payroll. Shortly after joining BNL, Beving began assisting Dudley with various personal tasks—i.e., paying personal bills and managing medical concerns—that she completed during work hours.

Charles and Frank eventually became dissatisfied with the structure and operation of BNL; in short, they believed they were doing most of the work to generate business but Dudley and John were making more money than Frank. Thus, Charles and Frank began considering forming a new firm. When Charles met with Dudley to discuss these issues, Beving was present to take notes. As the men continued to discuss their options for restructuring, Beving often served as a liaison passing correspondence between them.

Negotiations broke down and Charles and Frank formed the new firm.

However, in the transition, Beving alleges that Charles instructed her not to inform Dudley that the new firm had in fact been formed. Beving further alleges that when Charles announced the new firm to BNL’s employees, he instructed all of the employees who wished to leave with Charles and Frank to tender resignation letters,

which Beving did. Beving states that Charles tasked her with investigating and completing all necessary steps for getting the new firm up and running, and that at all relevant times during the transition, she acted pursuant to Charles’s direction and authorization.

Although Dudley seemingly had no objections to the transition, only weeks after the new firm commenced operations, it received a letter demanding that it cease and desist using certain software and assets purportedly owned by BNL. Charles responded by filing the underlying lawsuit against BNL, Dudley, John, and American Document Systems, LLC, seeking, inter alia, injunctive relief to continue using the software. Beving contends that she was asked to sign an affidavit to serve as evidence in support of Charles’s lawsuit and request for injunctive relief. After Charles filed his lawsuit, Beving was deposed.

Shortly after Beving’s deposition, BNL, Dudley, and John filed counterclaims against Charles and Frank, and although they did not file suit against Beving, their counterclaim asserted that Beving was a co-conspirator who had helped Charles and Frank destroy BNL. Several months later, Beving received a letter from BNL’s attorney who alleged that “[i]t is clear from your own testimony . . . that you have encouraged, aided, participated and have benefitted by the wrongs that you and others have committed,” and demanded payment of $17,020,971 in damages.

Litigation progressed, but Beving was not added as a party. However, about six months after receiving the demand letter, BNL, Dudley, and John2 filed an amended pleading and added Beving as a third-party defendant, with Dudley asserting claims against her for breach of fiduciary duties, tortious interference with contract, tortious interference with prospective relations, fraud, fraud by nondisclosure, aiding and abetting, conspiracy, and unjust enrichment, and John asserting claims against her for fraud, fraud by nondisclosure, aiding and abetting, conspiracy, and unjust enrichment. The amended pleading asserted, in part, that

[i]nstead of spending time doing what they had promised (negotiating the purchase of the company’s assets and returning the company’s documents), [Beving and other defendants] started planning and then executed a “preemptive strike” against the company by filing a fictitious lawsuit with false allegations.

. . . Beving signed an affidavit that contained false allegations of fact and purposely failed to disclose other material facts with the intention of misleading the company and the court to allow these Defendants to continue misappropriating the company’s property.

Beving . . . knew that the statements were and are false and knew that the affidavit failed to disclose other material information.

The allegations notwithstanding, the thirteen specific causes of action are all based on facts occurring during the dissolution of BNL and formation of the new firm and not from statements made in Beving’s affidavit or deposition.

2 Dudley passed away during this lawsuit, and his claims were brought by John as independent executor of his estate.

Beving filed a TCPA motion to dismiss. Beadles filed a response. After Beving filed her motion to dismiss but before the hearing on the motion, Beadles amended again to remove the allegations that Beving had provided false testimony in her affidavit to support a “fictitious lawsuit with false allegations.” After the parties appeared for a hearing, the trial court denied Beving’s motion to dismiss. This appeal followed.

Beving raises a single issue and asserts that the trial court erred by denying her motion to dismiss because she established that Beadles’s third-party claims fell within the scope of the TCPA, because Beadles failed to establish a prima facie case to support his claims by clear and specific evidence, and because Beving established by a preponderance of the evidence her defenses to Beadles’s claims.

APPLICABLE LAW

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Cynthia Beving v. John F. Beadles, Individually and as Independent of the Estate of Dudley D. Beadles, 563 S.W.3d 399 (Tex. Ct. App. 2018).

563 S.W.3d 399 (Cynthia Beving v. John F. Beadles, Individually and as Independent of the Estate of Dudley D. Beadles) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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