Hearst Newspapers, LLC v. Status Lounge Inc.

541 S.W.3d 881
CourtCourt of Appeals of Texas
DecidedDecember 19, 2017
DocketNO. 14-17-00310-CV
StatusPublished
Cited by11 cases

This text of 541 S.W.3d 881 (Hearst Newspapers, LLC v. Status Lounge Inc.) 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
Hearst Newspapers, LLC v. Status Lounge Inc., 541 S.W.3d 881 (Tex. Ct. App. 2017).

Opinion

Ken Wise, Justice *883Appellants are two media outlets and their reporters. Appellee, a corporation, filed suit against appellants, asserting claims for libel and business disparagement after appellants published articles based on a police report of a shooting at appellee's bar. Two of the appellants filed an answer that included a verified plea in abatement under the Defamation Mitigation Act (DMA). Appellee did not challenge the plea in abatement by filing a controverting affidavit; consequently, the suit was automatically abated "in its entirety" without a court order and "[a]ll statutory and judicial deadlines under the Texas Rules of Civil Procedure" other than those provided in the DMA were stayed. After the sixty-day abatement period ended, appellants moved to dismiss appellee's claims under the Texas Citizens Participation Act (TCPA), 120 days after the earliest date an appellant was served with appellee's lawsuit. The TCPA requires that a motion to dismiss "must be filed" not later than sixty days after the date of service of the suit. The trial court denied appellants' motions to dismiss as untimely. It is undisputed that if the abatement period applied to the TCPA, appellants' motions to dismiss were timely filed.1

On appeal, we address an issue of first impression in a Texas appellate court: whether the DMA's abatement period applies to toll the TCPA's deadline to file a motion to dismiss. We conclude, based on the plain language and complementary purposes of the two statutory schemes, that the Legislature intended the DMA and TCPA to work in tandem to provide plaintiffs the opportunity to mitigate any perceived defamation damages at an early stage in the dispute and then, should the dispute remain unresolved, to permit a defendant to test the merits of the plaintiff's case though a TCPA motion to dismiss.

Because the DMA abatement period tolled the TCPA's filing deadline, and because appellants' motions to dismiss were timely filed after the abatement period ended, the trial court erred by ruling that the motions were untimely. We therefore reverse and remand the case to the trial court for further proceedings.

FACTUAL AND PROCEDURAL BACKGROUND

On the night of April 19, 2016, a man was shot at the 3700 block of Dowling *884Street near downtown Houston. A Houston Police Department (HPD) lieutenant reported information about the shooting to members of the news media, specifically:

About 9:30, a South Central Patrol officer was dispatched to 3700 Dowling to a bar on a shooting. Upon arrival, they found a male who'd been shot in the arm.
Initial indications are that the male that was shot was a member of a band. He got in an argument with the owner of the bar about how long the band was going to play. During the argument, the manager produced a weapon and shot the male one time in the arm. The manager fled the location. Male has been transported to Hermann Hospital in stable condition.

A bar known as the Status Lounge was located at 3710 Dowling Street.

A. The Media Articles

The next day, The Houston Chronicle, a publication of appellant Hearst Newspapers, LLC (the Chronicle), published an article about the shooting written by Dale Lezon on its website chron.com. The article was titled "Musician shot at bar in south Houston[.]" Among other things, the Chronicle article reported that police were "continuing to search for the person who shot a musician Tuesday night at a nightclub near downtown Houston" and that the victim "was shot about 9:30 outside the Status Lounge, 3708 Dowling." The Chronicle article also reported that "[w]itnesses told police the gunman was the owner of the nightclub" and that according to the witnesses, "the victim and the assailant got into an argument about how long the band was going to play that night." Accompanying the Chronicle article was a photograph of the bar.2

That same day, appellant KHOU-TV, Inc. (KHOU) also published on its website KHOU.com an article titled "HPD: Bar owner accused of shooting band member [.]" The unattributed KHOU article began: "A dispute between a bar owner and a band he hired escalated into a shooting late Tuesday." The KHOU article reported that according to HPD, "an argument ensued between the bar owner and the band he had hired to play at the bar" and "[i]nvestigators said they were arguing over how much the owner paid for, and how long they were supposed to play." The KHOU article continued: "The band started packing up and leaving after an hour, but the owner got mad because he believed they were supposed to play for two hours. The owner got his gun and ended up shooting the lead band member in the arm." The article concluded by stating that "[t]he owner was taken into custody." The KHOU article did not name Status Lounge, but it included a photograph of the bar.

B. The Trial Court Proceedings

In August 2016, Status Lounge Incorporated (Status Lounge)3 filed suit against the Chronicle and Dale Lezon (the Chronicle *885Parties), and KHOU and William Langlois4 (the KHOU Parties).5 Status Lounge also sued Gannett Co., Inc., but later nonsuited the claims against that defendant.

In its petition, Status Lounge represented that it was "a premium lounge and cigar bar located near downtown Houston, Texas." Status Lounge alleged that in April 2016, a musician who was scheduled to perform was shot at a nearby liquor store, not at Status Lounge, but Langlois and Lezon told the public that the musician was shot by the owner of Status Lounge after an argument about the musician's fees. Status Lounge asserted that Langlois and Lezon did not fact check their stories and did not reach out to Status Lounge for comment. Later, a representative of Status Lounge personally contacted them to alert them to the error and to encourage them "to review corporate filings with the Texas Secretary of State." Instead, Status Lounge alleged that Langlois and Lezon "stood by their inaccuracies" and did not report the information it had provided to them. As a result of the stories, Status Lounge claims that its "previously loyal customers stopped frequenting the establishment, and the company's profits took an immediate hit" from which it has not fully recovered. Status Lounge sought actual and exemplary damages based on claims of libel and business disparagement.

On August 8, 2016, five days after Status Lounge filed its lawsuit, KHOU received a letter from Status Lounge's counsel requesting that KHOU correct, clarify, or retract its article. In the letter, dated August 3, 2016, Status Lounge complained that the article made untrue and defamatory statements that hurt the club's reputation and profits. Specifically, Status Lounge asserted that the shooting did not occur on Status Lounge property, the owner of the club did not shoot anyone, and the musician stated on social media that he had no problems with Status Lounge or its owners or managers.

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Bluebook (online)
541 S.W.3d 881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hearst-newspapers-llc-v-status-lounge-inc-texapp-2017.