Franco v. CRONFEL

311 S.W.3d 600, 2010 WL 850153
CourtCourt of Appeals of Texas
DecidedMay 18, 2010
Docket03-09-00494-CV
StatusPublished
Cited by4 cases

This text of 311 S.W.3d 600 (Franco v. CRONFEL) 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
Franco v. CRONFEL, 311 S.W.3d 600, 2010 WL 850153 (Tex. Ct. App. 2010).

Opinion

OPINION

DIANE M. HENSON, Justice.

Gilbert Franco posted a review of legal services provided by Guillermo Ochoa-Cronfel on the website www.RipoffReport. com (“Ripoff Report”). Ochoa-Cronfel sued Franco for defamation. See Tex. Civ. Prac. & Rem.Code Ann. § 73.001 (West 2005). Franco filed several motions for summary judgment. The trial court granted Franco’s partial motion asserting that Ochoa-Cronfel was a public official as a matter of law and denied Franco’s no-evidence and traditional motions asserting that Ochoa-Cronfel had failed to raise a fact issue on the element of actual malice. Franco now appeals the trial court’s denial of his no-evidence and traditional motions, arguing in two issues on appeal that (1) Ochoa-Cronfel did not raise a fact issue with regard to the element of actual malice and (2) the trial court should not have considered Ochoa-Cronfel’s affidavit. On cross-appeal, Ochoa-Cronfel challenges the granting of Franco’s partial motion, arguing that the trial court erred in its determination that Ochoa-Cronfel qualified as a public official. We affirm the trial court’s order denying Franco’s no-evidence and traditional motions for summary judgment and dismiss Ochoa-Cronfel’s cross-appeal for want of jurisdiction.

BACKGROUND

Franco filed a creditor-debtor action to recover proceeds from the sale of his *603 printing business. 1 In July 2007, the court hearing the action appointed Ochoa-Cron-fel to serve as receiver, authorizing him to take possession of and sell the non-exempt assets of the defendants to the action. See Tex. Civ. Prac. & Rem.Code § 31.002(b)(3) (West 2008) (appointment of receiver). Ochoa-Cronfel’s appointment was altered in August 2007 to give him additional powers, including authorization to liquidate assets in satisfaction of the judgment and take over the subject business and operate it with a view toward disposing of it as a going concern.

Five months later, in December 2007, Ochoa-Cronfel filed a motion to withdraw as receiver. In February 2008, the trial court entered an agreed order discharging Ochoa-Cronfel as receiver. The agreed order, signed by the attorney representing Franco at the time, states “that all actions taken by the Receiver Guillermo Ochoa-Cronfel during the pendency of the receivership are APPROVED IN ALL RESPECTS.”

On June 23, 2008, roughly four months after Ochoa-Cronfel’s agreed discharge as receiver, Franco published a review of Ochoa-Cronfel on the Ripoff Report website. 2 The review was entitled, “Report: The Cronfel Firm Guillermo Ochoa-Cron-fel” and subtitled “Don’t let this firm be a receiver for your property — More interested in depleting your assets for his own financial gain.” The review, posted under Franco’s first name, “Gilbert,” read:

This attorney was assigned to be a receiver for some assets that I needed to recover. He totally screwed up the whole deal. He allowed the defendants in the case to steal money and property. He lied on court documents as far as time he spent on the case. He falsified and mislead [sic] the court with financial statements and other information to the court. He made deflamatory [sic] remarks before the court about me — which were blatent [sic] lies.
He threatened me with extortion to get almost $20,000 from me when the court orders state that the receivers [sic] fees are a taxation against the defendants, not'the plaintiff. He would not liquidate my property to me, unless I paid him money — a direct contriction [sic] to the court order.
He is now trying to extort more money from me or he will use his legal power to cause me more fiancial [sic] harm. This is a bad attorney in its worst form. He personally has cause [sic] me almost $500,000 in damages.

Franco signed the review, “Victim of Extortion and Fraud, Austin, Texas, U.S.A.”

Ochoa-Cronfel discovered the review roughly one month after its posting. He found the review after querying his name in the search-engine Google, after which Franco’s review came up as one of the first results. 3 After being informed that Ochoa-Cronfel had discovered the review, Franco attempted to remove it from Ripoff Report. By Ripoff Report’s terms, however, users cannot remove content they have posted. 4 Franco then modified his review. *604 He added a comment stating, “This is just my opinion and should be treated as so.” He added another comment explaining that he was not an attorney and posted dictionary definitions for “extortion,” “fraud,” and “malfeasance.” He also changed the name on the review, from “Gilbert” to “Anonymous.”

Several days after altering the review, Franco spoke over the phone with Darrell Gest, Ochoa-Cronfel’s attorney at the time. Before the conversation, Franco prepared a list of talking points, including, “Do you have proof that I am the one that published statements about Cronfel?” His talking points also included the statements, “It appears that anybody can make a report about anybody with much ease. Would you believe everything that was written [on Ripoff Report?]”

During the phone call with Gest, Franco denied posting the review on Ripoff Report. He speculated about who might have written the review, indicating that he had attempted to determine who had posted it but had not received any response to his inquiries.

Ochoa-Cronfel sued Franco for defamation. In the affidavit and deposition testimony submitted during pretrial proceedings, Franco admitted that he had posted the review of Ochoa-Cronfel on Ripoff Report. He explained that he had lied to Gest about the posting so as not to “incriminate” himself. He also stated that he had attempted to remove the posting and altered it because the statements in the review were “not proven facts yet.”

Franco, however, also stated in his affidavit that the statements he made in the review were truthful: “At the time of the posting of the statements, I knew of no statement that was false and I had no serious doubts as to the truth of any statement I made.” In support of this assertion, he detailed deficiencies in Ochoa-Cronfel’s performance that had led him to post the review. Franco stated that Ochoa-Cronfel misled the court by providing inaccurate billing statements and alleging that he had to “chase [Franco] down for money.” Franco also stated that Ochoa-Cronfel improperly sought fees from him personally, when instead all fees should have been paid from the assets of the debtors. 5 In addition, Franco claimed that Ochoa-Cronfel failed to fulfill several of his receivership duties, including safeguarding funds, pursuing insurance claims, and providing monthly reports.

Ochoa-Cronfel disputes each of Franco’s assertions. In his own affidavits, Ochoa-Cronfel contended that he never misled the court, and that the billing statements he provided and the representations he made about Franco were accurate.

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Bluebook (online)
311 S.W.3d 600, 2010 WL 850153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franco-v-cronfel-texapp-2010.