Finlan v. Dallas Independent School District

90 S.W.3d 395, 2002 WL 31387519
CourtCourt of Appeals of Texas
DecidedNovember 27, 2002
Docket11-00-00302-CV
StatusPublished
Cited by34 cases

This text of 90 S.W.3d 395 (Finlan v. Dallas Independent School District) 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
Finlan v. Dallas Independent School District, 90 S.W.3d 395, 2002 WL 31387519 (Tex. Ct. App. 2002).

Opinion

Opinion

TERRY McCALL, Justice.

The trial court granted summary judgments and rendered a final judgment that Richard E. Finían (Finían), David L. Venable, and • Don Venable take nothing on their claims against the Dallas Independent School District (DISD), the DISD superintendent and trustees (DISD Defendants), 1 and the DISD attorneys (Lawyer Defendants). 2 The trial court also granted summary judgment and rendered judgment that DISD trustee Ed Grant (Grant) take nothing on his cross-claim for indemnity against the Lawyer- Defendants. In this appeal, Finían, David Venable, and Grant assert that the trial court erred in rendering summary judgment against them. Don Venable appealed but later withdrew his appeal. Because the DISD, the DISD Defendants, and the Lawyer Defendants established that they were entitled to summary judgment on Finlan’s and David Venable’s claims and because the Lawyer Defendants established that they were entitled to summary judgment *401 on Grant’s cross-claim for indemnity, we affirm the trial court’s judgment.

Introduction

In 1992, the DISD, a governmental entity, filed a civil lawsuit for tortious interference and defamation against Finían, David Venable, and Don Venable. Finían and the Venable brothers counterclaimed, alleging that the DISD’s suit was baseless and malicious and that the DISD filed the suit in retaliation for Finían and Don Venable’s exercise of First Amendment free speech rights to publicly criticize the DISD and oppose an upcoming DISD bond election. The core issue in this case is whether the DISD’s filing of the 1992 civil suit deprived Finían and David Venable of them constitutional rights and, therefore, subjected the DISD to liability under 42 U.S.C.A. § 1983 (West Pamph. Supp.2002) for civil rights violations. This case is not the only case between Finían and the DISD; Finían and the DISD have a long history of litigation. Finían and other parties involved in this case have raised virtually identical Section 1983 civil rights claims — that the DISD’s filing of a civil suit or counterclaim against them violated their First Amendment rights — in at least three other cases: (1) Dallas Independent School District v. Finlan, 27 S.W.3d 220 (Tex.App.-Dallas 2000, pet’n den’d), cert. den’d, 534 U.S. 949, 122 S.Ct. 342, 151 L.Ed.2d 258 (2001); (2) Hinds v. Dallas Independent School District, 188 F.Supp.2d 664 (N.D.Tex.2002); and (3) Venable v. Keever, 61 F.Supp.2d 552 (N.D.Tex.1999), and subsequent opinion at 2000 WL 1281206 (N.D.Tex.2000). In each of these three cases, the courts held that the DISD’s filing of the suit or counterclaim was not a constitutional violation and, therefore, did not give rise to Section 1983 liability. We discuss these cases below. Now, contrary to the holdings in each of these three cases, Finían and David Venable again assert in this appeal that the filing of a civil suit against them violated their civil rights.

Background Facts

In 1991, Finían and Don Venable sued the DISD for alleged fraud and misapplication of bond funds. In 1992, Goldman, Sachs & Co., an investment banker, agreed to underwrite the issuance of $60,000,000 in tax and revenue anticipation notes for the DISD. Finían and Don Venable wrote a letter to Goldman, Sachs & Go. informing it of their pending litigation against the DISD. In the letter, they stated as follows:

Please be on notice that an Application for Temporary Injunction has been filed in the context of a law suit against the District that alleges fraud, misapplication of bond funds and for falsification of government documents.... As a defense against any claims of fraud that may arise and may present the possibility of irreparable harm to the taxpayers of this District, you are being made aware of the aforementioned “Application for Temporary Injunction” and of the pending litigation. Take due notice and proceed at your own risk.

In response to this letter, the DISD Defendants conferred with DISD attorney, Dennis J. Eichelbaum, and decided to file a lawsuit against Finían, Don Venable, and David Venable for tortious interference with the DISD’s relationship with Goldman, Sachs & Co. The DISD Defendants authorized the Lawyer Defendants to file suit.

On October 5, 1992, the DISD filed suit in the 192nd District Court of Dallas County against Finían, David Venable, and Don Venable for tortious interference with its relationship with Goldman, Sachs & Co. and for defamation. In its original petition, the DISD sought to recover damages *402 in excess of $10,000,000. The DISD alleged that, if the letter to Goldman, Sachs & Co. caused an upcoming $270,000,000 bond election to fail, its damages would exceed $270,000,000. Finían and both Venables filed a counterclaim, asserting that the DISD’s filing of the suit constituted a violation of their civil rights under Section 1983.

DISD’s suit was transferred from the 192nd District Court of Dallas County to the 14th District Court of Dallas County. In 1993, Finían filed a plea in bar to the DISD’s suit against him. The trial court granted Finlan’s plea in bar and dismissed the DISD’s suit against Finían with prejudice. DISD nonsuited its claims against the Venables. The trial court realigned the parties. Finían and the Venables became the plaintiffs, and the DISD became the defendant. The suit was transferred to the 101st District Court of Dallas County-

In 1994, Finían, pro se, and the Vena-bles, represented by Ronald Hinds, filed suit against the DISD Defendants and the Lawyer. Defendants in the 162nd District Court of Dallas County. They alleged that the DISD’s filing of the 1992 tortious interference suit violated their First Amendment constitutional rights and, consequently, subjected the DISD Defendants and the Lawyer Defendants to liability for civil rights violations under Section 1983. They also alleged state law claims of malicious prosecution/abuse of process and intentional infliction of emotional distress.

Because DISD Trustee Grant took the position that the DISD’s filing of the 1992 tortious interference suit violated Finlan’s and the Venables’ civil rights, the DISD elected not to provide Grant with a defense in the 162nd District Court suit. In his answer to the suit, Grant admitted Finlan’s and the Venables’ factual allegations and agreed that the DISD’s filing of the 1992 tortious interference suit violated Finlan’s and the Venables’ civil rights. Grant, represented by David Venable’s lawyer, Ronald Hinds, filed a cross-claim for indemnity against the Lawyer Defendants. Grant based his cross-claim on alleged malpractice committed by the Lawyer Defendants.

Grant entered into an agreed judgment in favor of Finían for $300,000, and the trial court entered the judgment. Based upon the events surrounding the $300,000 agreed judgment, the DISD filed a conspiracy suit in 1995 against Finían, Grant, and Hinds, alleging that they conspired to obtain the $300,000 judgment as a means to force the DISD to pay $300,000 to Fin-ían. See Dallas Independent School District v. Finlan, supra.

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Bluebook (online)
90 S.W.3d 395, 2002 WL 31387519, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finlan-v-dallas-independent-school-district-texapp-2002.