Jerry Wilkerson v. RSL Funding, L.L.C.

388 S.W.3d 668, 2011 WL 3516147, 2011 Tex. App. LEXIS 6282
Court of Appeals of Texas·Decided August 11, 2011·No. 01-10-01001-CV·Published·Cited by 7 cases

Opinions

OPINION

MICHAEL MASSENGALE, Justice.

In this interlocutory appeal, Jerry Wilkerson appeals the trial court’s order denying his special appearance. Appellee RSL Funding, L.L.C. sued Wilkerson for defamation, libel, and business disparagement, all based upon statements made by Wilkerson on third-party internet sites. In his sole issue, Wilkerson contends the trial court erred in denying his special appearance and objection to jurisdiction. We find that the trial court lacked jurisdiction, and we therefore reverse and render a judgment of dismissal without prejudice.

Background

California resident Jerry Wilkerson lives with his daughter, Trisha, who won the California state lottery. RSL Funding, L.L.C. is a financial services business that solicited Trisha by mail, offering to pay her a lump sum in exchange for a portion of her future lottery payments. Although RSL is headquartered in Houston, evidence submitted to the trial court suggests that the company advertised it had locations in New York, Chicago, Philadelphia, Washington, D.C., Los Angeles, West Palm Beach, and Atlanta.

Trisha assigned a portion of her future lottery payments to RSL in exchange for a lump-sum payment. Wilkerson had no direct financial interest in his daughter’s transaction. However, Trisha had a bad experience dealing with RSL, and Wilkerson decided to post a review on the internet to express his dissatisfaction. He searched the internet for RSL, and he testified that he believed he posted his comments on RSL’s website. Rather than finding RSL’s own website, however, Wilkerson had found third-party web pages containing basic business information about RSL. These websites permitted users to post reviews about their experiences with featured businesses, and Wilkerson posted negative reviews about RSL on two such web pages.

One of these websites was maintained by the internet search engine Yahoo! (http://www.yahoo.com). The Yahoo! evidence presented by RSL included two exhibits: Exhibit C, which is an undated screenshot of part of a Yahoo! internet page, and Exhibit D, which is one page of a two-page printout from Yahoo! dated [672]*672March 18, 2010.1 It is apparent from the face of each document that neither of them is a complete copy of the represented internet page.

The evidence produced by RSL showed that at the time the documents were prepared, a Yahoo! page relating to RSL included contact information for RSL’s Houston office, including the address, a map showing its location, and a photograph of the building. A representative of RSL authenticated this evidence by attesting that proffered documents “are true and correct copies of the originals,” but the affidavit does not explain what “originals” are depicted or how they were generated. Each of Exhibits C and D state at the top of the page: “Some details about this business have recently been edited by the community.” There appears to have been a hyperlink that would have allowed the user to “View changes,” but neither party introduced evidence of what those changes were, when they were made, or who made them. The user reviews section of the Yahoo! listing reflected that Wilkerson wrote:

This is by far the worst experience I have had in my 64 years of life, dealing with all of the lies by Jim Kelly and the non returned promised phone calls by Jim and Mr. Sanchez from accounting. RSL has lied repeatedly to us and misled us and have caused numerous delays in this project that still has yet to be funded. Our experience shows that there is nothing rapid about Rapid Settlements and they are so unprofessional. Because of all the problems with Rapid and their violating the contract, we are in the process of a law suit against them and if there is anyone else out there who have had similar experiences with [R]ap-id, please join us in a class action law suit. I hate having to rate them with even 1 star as they do not deserve any. By the way, RSL represents themselves as a large company. Try calling any of their offices, N.Y., L.A., Atlanta etc and you will find that there are no offices there, only phone numbers that are transferred to the Houston Office. Very clever and manipulating of them. Just goes to show how they really conduct business, smoke and mirrors.

After his original review, Wilkerson posted two more comments. The first comment stated:

RSL is still playing games as they think they have us over a barrel. So dishonest and disrespectful, will not even return a phone call. But the kicker is RSL has put out so much negative Karma into the air that when their time comes, it will return to them 10 fold in a negative manner. I just hope they remember where it came from and change their ways to treat people and clients fairly and professionally.

Wilkerson’s second comment to his Yahoo! review stated:

Received our check today and now we are able to find out why RSL was so arrogant and mean and delaying everything. They did not have the money. The check is no good NSF, non sufficient funds. Guess their word is as good as their check.

The Yelp website (http://www.yelp.com) contained a similar page with information about RSL. The evidence produced by RSL showed that at the time Yelp was accessed for purposes of opposing Wilkerson’s special appearance, the accessed page included RSL’s Houston address and [673]*673a map.2 That page reflected that Wilkerson had posted another review which stated: “This is the worst company I have ever dealt with in my life. Nothing but lies and misinformation.... ” Subsequently, Wilkerson posted a comment to his own review, which stated:

Received the check today from RSL and guess what, it appears their word is as good as their check[.] NSF NON SUFFICIENT FUNDS. I can see why they treated us so badly and were so rude and inconsiderate and kept delaying, because they don’t have the money. What a joke they are.

There is no evidence that Wilkerson had anything to do with creating these web-pages or their content other than the reviews and subsequent comments submitted by him. Furthermore, he testified in a deposition that he did not know how to target a specific geographic location, and that he did not know how to attach a map or photograph to his internet posting.

RSL sued Wilkerson, alleging defamation, libel, and business disparagement. Wilkerson filed a special appearance, objecting to the trial court’s jurisdiction over him. He supported his special appearance with an affidavit stating he is a resident of California, does not own any property in Texas, has never owned any business in Texas, has only traveled through Texas once, and did not specifically direct any opinion or statement of fact concerning RSL to anyone in Texas.

RSL responded by claiming both websites used by Wilkerson “use geographic location as the key to their respective search options” and are “intended to help a searcher find information in specific geographic areas.” Based on these factual allegations, RSL contends that Wilkerson purposely directed his actions at Texas, and therefore he is subject to the jurisdiction of a Texas court for purposes of a tort claim based on those actions. The trial court overruled the special appearance, and Wilkerson brought this interlocutory appeal to challenge the ruling.

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Jerry Wilkerson v. RSL Funding, L.L.C., 388 S.W.3d 668, 2011 WL 3516147, 2011 Tex. App. LEXIS 6282 (Tex. Ct. App. 2011).

388 S.W.3d 668 (Jerry Wilkerson v. RSL Funding, L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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