Dojo Bay House, LLC v. Tom Pickford

CourtCourt of Appeals of Texas
DecidedDecember 21, 2021
Docket14-20-00237-CV
StatusPublished

This text of Dojo Bay House, LLC v. Tom Pickford (Dojo Bay House, LLC v. Tom Pickford) 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
Dojo Bay House, LLC v. Tom Pickford, (Tex. Ct. App. 2021).

Opinion

Reversed and Remanded and Memorandum Opinion filed December 21, 2021.

In The

Fourteenth Court of Appeals

NO. 14-20-00237-CV

DOJO BAYHOUSE, LLC, Appellant

V. TOM PICKFORD, Appellee _________________________

TOM PICKFORD, Appellant V.

DOJO BAYHOUSE, LLC, Appellee

On Appeal from the 151st District Court Harris County, Texas Trial Court Cause No. 2019-60692-A

MEMORANDUM OPINION

Appellant DOJO Bayhouse, LLC, appeals a final order dismissing its legal action against Tom Pickford under the Texas Citizens Participation Act (“TCPA”).1 DOJO contends the trial court erred because the TCPA does not apply for two independent reasons: (1) Pickford failed in his initial burden to show by a preponderance of the evidence that the act applies; and (2) DOJO’s claims fall under the act’s commercial-speech exemption.

We conclude that the TCPA does not apply to DOJO’s legal action because none of its claims are based on, related to, or in response to Pickford’s exercise of the right to petition, association, or free speech under the TCPA. This is so because DOJO did not allege, and there is no evidence of, a “communication” by Pickford as defined by the applicable version of the act. Based on our holding, we need not address DOJO’s alternative argument that the commercial-speech exemption applies. We reverse and remand for further proceedings.

Background

In its petition, DOJO alleged that an entity known as CKR Property Management, LLC, acted as DOJO’s agent in managing the Bay House Apartments. CKR presented two tenants with a notice of lease termination, which stated that their lease would terminate in five days and required them to vacate their apartment within that period.2

The tenants’ attorney mailed CKR a letter, which advised of the tenants’ intent to sue DOJO for breach of contract and fraud. A CKR representative emailed the letter to Patrick Drake, an attorney then working for the law firm Hoover Slovacek. In the email, CKR noted that it attached a copy of the letter and a copy of the lease. CKR’s representative concluded the email by stating, “[p]lease let me know what I need to do from here on.” According to DOJO, Drake

1 Tex. Civ. Prac. & Rem. Code §§ 27.001-.011. 2 According to evidence presented with Pickford’s TCPA motion to dismiss, management deemed the unit uninhabitable due to a recent natural disaster or catastrophe.

2 responded that he would render legal services on DOJO’s behalf and Drake agreed to draft a response to the letter.

Several months after CKR emailed the tenants’ letter to Drake, the tenants sued DOJO in Harris County District Court.3 DOJO filed a third-party petition against CKR and Hoover Slovacek, and the trial court severed those claims into a separate action.4 Appellee Pickford, another of Hoover Slovacek’s lawyers, represented Hoover Slovacek in the severed proceeding. DOJO later dismissed its claims against Hoover Slovacek in that action. DOJO settled the tenants’ claims.

DOJO then filed the present lawsuit against Drake, Hoover Slovacek, and Pickford. DOJO contended that Drake, by representing he would take legal action on DOJO’s behalf with respect to the tenants’ claims, created an implied attorney- client relationship with DOJO “via DOJO’s agent, CKR.” DOJO alleged that Drake, Hoover Slovacek, and Pickford failed to provide timely notice to DOJO of the tenants’ claims despite having received the tenants’ notice letter and a demand letter stating they would sue DOJO. Further, DOJO alleged that neither Pickford nor Drake took affirmative steps to correct DOJO’s understanding regarding the agreement to provide legal services on DOJO’s behalf regarding the tenants’ claims.

DOJO asserted claims for breach of contract and professional negligence. In support of its contract claim, DOJO alleged that “Patrick Drake contracted with DOJO to be its registered agent of service. As such, Drake had an affirmative duty to forward all notices and demands to DOJO.” Further, DOJO contended that all three defendants “breached their contractual duties by failing to send all notices 3 Cause number 2017-63226, Moises Penaloza and Maria Sepulveda Ramos v. DOJO Bay House, LLC, in the 151st Judicial District Court. 4 Cause number 2017-63226-A, DOJO Bay House, LLC v. Hoover Slovacek, LLP, in the 151st Judicial District Court.

3 and demands to DOJO.” According to DOJO, the defendants’ breach caused DOJO to incur legal expenses to defend the tenants’ lawsuit, including a settlement “at a value much greater than that of the lawsuit, pre-litigation.”

In support of its professional negligence claim, DOJO alleged that all three defendants “committed professional malpractice and violated the State Bar of Texas professional standards.” Again, the only damage alleged is DOJO’s cost of defense and a settlement at an amount allegedly greater than it would have been had the defendants timely notified DOJO of the tenants’ pre-suit letter.

Though DOJO sued Drake, Hoover Slovacek, and Pickford, this appeal concerns only the claims against Pickford. In his motion to dismiss under the TCPA, Pickford argued that all of DOJO’s claims against him were not based on the tenants’ lawsuit but rather emanated from another lawsuit arising out of DOJO’s termination of its management agreement with CKR.5 As Pickford argued, “all of DOJO’s claims against Pickford emanate directly and solely from his legal representation of his clients, CKR (in the unrelated Lawsuit against Longoria), and [Hoover Slovacek] (in the Prior Lawsuit).” This legal representation, according to Pickford, constituted an exercise of his rights to free speech, association, and petition under the TCPA. Pickford asserted that “[t]he allegations made in CKR’s Lawsuit against Longoria, and the communication of said allegations between CKR and its lead counsel Pickford . . . constitute an ‘exercise of the right of free speech’ of CKR and Pickford[,] which right was exercised between CKR’s [sic] and attorney Pickford.” Pickford also contended that his representation of CKR in the Longoria suit was an exercise of his “right to

5 While the tenants’ suit was pending, DOJO terminated its contract with CKR and hired a new management company. DOJO retained several former CKR employees, including one named Denise Longoria. CKR sued Longoria for breach of her employment agreement. Pickford represented CKR in that suit, which was submitted to arbitration.

4 associate with CKR” and that “the Lawsuit against Longoria itself invokes the right to petition.”

Pickford attached his affidavit and other evidence to his motion to dismiss. In his affidavit, Pickford denied an attorney-client relationship with DOJO, particularly during the time the tenants’ attorney first mailed the notice letter to CKR. Pickford averred that he had never performed legal work on DOJO’s behalf; that CKR never asked him to perform legal work on DOJO’s behalf; and that he had no knowledge of the tenants identified in the tenants’ lawsuit, or of their claims, or of the lawsuit itself, until December 2017—which was approximately nine months after the date the tenants’ first notice letter was emailed to Drake.

DOJO responded to Pickford’s motion to dismiss and argued that the TCPA did not apply. DOJO asserted that Pickford’s motion mischaracterized DOJO’s petition by focusing on the “completely irrelevant” Longoria and Hoover Slovacek lawsuits, when DOJO’s claims against Pickford instead were based on his alleged failure to timely provide notice of the tenants’ claims. DOJO did not attach any evidence to its response.

The trial court granted Pickford’s motion to dismiss and then severed DOJO’s claims against Pickford from the remaining claims, thus creating a final judgment.

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Dojo Bay House, LLC v. Tom Pickford, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dojo-bay-house-llc-v-tom-pickford-texapp-2021.