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

Court of Appeals of Texas·Decided October 6, 2022·No. 09-21-00311-CV·Published

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,

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).

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.

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

“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.

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:

Throughout the pandemic, H-E-B has invested heavily and undergone significant efforts to source products our customers want and need in the face of unprecedented demand.

Unfortunately, our company is involved in a disagreement with a vendor who consistently failed to honor its commitments in a timely manner and did not meet its obligations. This left H-E-B without the products to fulfill customer needs and resulted in lost sales.

While H-E-B has satisfied its commitments and made every attempt at reaching a compromise, we cannot sit back and allow others to make unreasonable demands and threaten litigation. We would prefer to not go to court, but H-E-B must seek assistance to resolve this dispute based on meritless claims.

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

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) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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