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

563 S.W.3d 399
CourtCourt of Appeals of Texas
DecidedOctober 18, 2018
Docket02-17-00223-CV
StatusPublished
Cited by49 cases

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

Opinion

In the Court of Appeals Second Appellate District of Texas at Fort Worth -------------------------------------------- No. 02-17-00223-CV --------------------------------------------

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).

2 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,

3 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.

4 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.

5 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

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Cite This Page — Counsel Stack

Bluebook (online)
563 S.W.3d 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cynthia-beving-v-john-f-beadles-individually-and-as-independent-of-the-texapp-2018.