H-E-B, L.P. and H. E. Butt Grocery Company v. Maverick International, LTD

CourtCourt of Appeals of Texas
DecidedOctober 6, 2022
Docket09-21-00311-CV
StatusPublished

This text of H-E-B, L.P. and H. E. Butt Grocery Company v. Maverick International, LTD (H-E-B, L.P. and H. E. Butt Grocery Company v. Maverick International, LTD) 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.

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H-E-B, L.P. and H. E. Butt Grocery Company v. Maverick International, LTD, (Tex. Ct. App. 2022).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

__________________

NO. 09-21-00311-CV __________________

H-E-B, L.P. AND H.E. BUTT GROCERY COMPANY, Appellants

V.

MAVERICK INTERNATIONAL, LTD., Appellee

__________________________________________________________________

On Appeal from the 172nd District Court Jefferson County, Texas Trial Cause No. E-207248 __________________________________________________________________

MEMORANDUM OPINION

In a business dispute, Maverick International, Limited amended its

petition to add business disparagement and defamation claims to the

breach of contract claim it filed against H-E-B, L.P., and H.E. Butt

Grocery Company, collectively H-E-B. 1 In response, H-E-B filed a motion

1In their pleadings and their motions, the parties do not explain the

corporate relationship between the named defendants in the suit, H-E-B, 1 to dismiss Maverick’s business disparagement and defamation claims,

asserting the trial court was required to dismiss those two claims because

by asserting them, Maverick had violated H-E-B’s rights under the Texas

Citizens Participations Act (TCPA). 2 The trial court denied the motion to

dismiss, and H-E-B appealed.

On appeal, H-E-B argues its motion should have been granted for

these four reasons:

1. Because the pleadings and evidence supporting the motion establish Maverick’s claims were either based on or made in response to H-E-B’s exercise of its rights to free speech or to petition;

2. Because the pleadings and evidence establish the commercial speech exemption does not apply to the statements Maverick made the basis of its business disparagement and defamation claims;

3. Because Maverick, in responding to H-E-B’s motion to dismiss, failed to meet its burden to present prima facie evidence sufficient to show it could prove each element of its business disparagement and defamation claims; and

4. Even had Maverick done so, the evidence supporting H-E-B’s motion establishes the statements H-E-B made about Maverick and the product Maverick sold H-E-B, which form the basis of

L.P., and H.E. Butt Grocery Company. Instead, the parties refer to the defendants collectively as “H-E-B.” We will do so as well. 2See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(12) (Supp.)

(authorizing a person to file an interlocutory appeal from a district court’s ruling denying a TCPA motion to dismiss); id. §§ 27.001-.011 (West 2020 & Supp. 2021) (TCPA). 2 Maverick’s business disparagement and defamation claims, are true.

We conclude the speech at issue is commercial speech. 3 Because the

speech is commercial speech, it is not protected speech under the TCPA.4

For that reason, we conclude the trial court properly denied H-E-B’s

motion.

Background

In early March 2020, Governor Greg Abbott certified the COVID-19

pandemic posed an imminent threat of disaster in the state. 5 Based on

the threat, he declared a state of disaster existed in all Texas counties.6

Fears that surrounded the unknown consequences of COVID-19

infections created demand for household cleaning products that would

kill viruses on surfaces that might cause infections. In due course,

demands for products used to disinfect surfaces led to shortages of some

products on store shelves. H-E-B is a large supermarket chain based in

San Antonio, Texas. Faced with demand-driven shortages, retailers like

3See id. § 27.010(b) (Supp.) (commonly called the commercial- speech exemption by courts). 4Id. 5https://gov.texas.gov/news/post/governor-abbott-declares-state-of-

disaster-in-texas-due-to-covid-19 (last checked September 20, 2021). 6Id.

3 H-E-B sought new sources of supplies of products, like wipes, that were

capable of killing germs when applied to a surface.

Maverick International, Limited is an industrial supply company

in Jefferson County, Texas. Maverick markets an antimicrobial surface

cleaner, known as BIOERASE. BIOERASE wipes are labeled as non-

toxic and as capable of killing germs. There is no question that H-E-B

agreed to buy BIOERASE cannisters from Maverick, but it then claimed

Maverick breached the parties’ agreement in at least two ways: (1) by

failing to meet H-E-B’s delivery deadlines for the product; and (2) by

making a material misrepresentation about the labeling of the product

when marketing it to H-E-B—specifically, by representing to H-E-B that

the label for BIOERASE wasn’t required to be registered with the

Environmental Protection Agency for the product to be sold in retail

stores.

When H-E-B refused to purchase all the BIOERASE it ordered,

Maverick sued H-E-B in Jefferson County alleging H-E-B breached its

agreement with Maverick to purchase six million cannisters of

4 “BIOERASE Antimicrobial Surface Wipes.” 7 Initially, Maverick alleged

only a breach of contract claim, suing H-E-B for not completing its

agreement to purchase all six million cannisters of the BIOERASE wipes

it ordered. After initially filing suit and suing H-E-B solely for breach of

contract, Maverick amended its petition, adding claims for business

disparagement and defamation. Maverick’s business disparagement and

defamation claims allege that H-E-B leaked and publicized information

to the San Antonio News-Express, a newspaper that Maverick alleged is

owned by the same corporate entity that owns the Beaumont Enterprise.

Patrick Danner, a reporter with the San Antonio News-Express,

wrote the first of a series of articles about the lawsuit between H-E-B,

Maverick, and Maverick’s sale of BIOERASE on March 8, 2020. The San

Antonio News-Express published Danner’s first article on March 9, 2020.

Danner obtained quotes for the first article he wrote from an H-E-B

public relations department representative, Valentino Lucio. Lucio sent

7H-E-B had already sued Maverick in Bexar County regarding the contract dispute. Even though the evidence doesn’t include a copy of the petition in the Bexar County suit, the newspaper articles in evidence show the Bexar County suit was already on file when Maverick sued H-E-B in Jefferson County. That said, the record does not show whether Maverick had been served with the suit H-E-B filed in Bexar County when it sued H-E-B in Jefferson County. 5 Danner a press release about H-E-B’s dispute with a vendor, but the

press release he sent Danner does not name Maverick. That said,

Maverick alleged the statements that Danner attributed to H-E-B in his

article defamed Maverick and “amount[ed] to business disparagement.”

While Danner wrote several follow-up articles about the H-E-B and

Maverick lawsuit, the March 9 article, which quotes from Lucio’s press

release, lies at the heart of the parties’ dispute. For that reason, we

provide more detail about Lucio’s press release and Danner’s March 9

article here.

Before writing his March 9 article, Danner emailed the head of

H-E-B’s public relations department, Dya Campos, asking Campos

whether H-E-B wanted to comment on an article he was planning to

write. In the email, Danner told Campos the article was about “H-E-B

suing Maverick International over its antimicrobial surface wipes.”

Campos assigned Valentino Lucio the task of sending Danner comments

on the article for H-E-B. The press release Lucio sent Danner states:

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H-E-B, L.P. and H. E. Butt Grocery Company v. Maverick International, LTD, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-e-b-lp-and-h-e-butt-grocery-company-v-maverick-international-ltd-texapp-2022.