Judy Kostura, Stan M. Putman, Jr., and Judge, Kostura & Putman, P.C. v. John Judge

CourtCourt of Appeals of Texas
DecidedJune 7, 2021
Docket07-20-00310-CV
StatusPublished

This text of Judy Kostura, Stan M. Putman, Jr., and Judge, Kostura & Putman, P.C. v. John Judge (Judy Kostura, Stan M. Putman, Jr., and Judge, Kostura & Putman, P.C. v. John Judge) 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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Judy Kostura, Stan M. Putman, Jr., and Judge, Kostura & Putman, P.C. v. John Judge, (Tex. Ct. App. 2021).

Opinion

In The Court of Appeals Seventh District of Texas at Amarillo

No. 07-20-00310-CV

JUDY KOSTURA, STAN M. PUTMAN, JR., AND KOSTURA & PUTMAN, P.C. F/K/A JUDGE, KOSTURA & PUTMAN, P.C., APPELLANTS

V.

JOHN JUDGE, APPELLEE

On Appeal from the 181st District Court Randall County, Texas Trial Court No. 78-139-B, Honorable Titiana Frausto, Presiding

June 7, 2021 OPINION Before QUINN, C.J., and PARKER and DOSS, JJ.

“A lawyer’s time and advice is his stock in trade.” —Abraham Lincoln

This case examines whether a law firm’s letters to its clients announcing changes

in the relationship between the two arises out of the sale of services so as to exempt such

communications from the reaches of the Texas Citizens Participation Act (TCPA)1, as

1 See TEX. CIV. PRAC. & REM. CODE ANN. §§ 27.001-.011 (West 2020 & West Supp. 2020). An

interlocutory order denying a TCPA motion to dismiss is immediately appealable. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(12) (West Supp. 2020). Unless otherwise indicated, citation to the TCPA (or the Act) shall be “Id. § ____.” amended in 2019. After considering the plain language of the statute, we hold that the

exemption does apply under these circumstances. We therefore affirm the order of the

district court.

Background

Appellants, Judy Kostura; Stan M. Putman, Jr.; and the law firm of Kostura &

Putman, P.C. f/k/a Judge, Kostura & Putman, P.C. (collectively, “the firm”) bring this

interlocutory appeal from the district court’s order denying their Texas Citizens

Participation Act motion to dismiss some tort claims filed against them by Appellee and

former law partner, John Judge. In 2003, Kostura, Putman, and Judge formed a law firm

that is the predecessor to the Appellant firm. Each shareholder owned one-third of the

firm’s shares, and each served as a director.

The firm alleges that beginning as early as 2018 and continuing through much of

2020, Judge exhibited signs of physical and mental health problems, as well as alcohol

dependency. On numerous occasions in 2020, Judge was absent from the firm when he

presented at inpatient facilities for treatment of alcohol dependence and mental health

concerns. On other occasions in 2020, Judge was absent so that he could receive

healthcare for injuries sustained during multiple falls. The firm contends that Judge’s

unavailability and impairments posed problems for attorneys, clients, and staff, and allege

that Judge was largely unresponsive to client needs or to Kostura’s and Putman’s

remedial efforts.

The firm alleges that in April 2020, Kostura and Putman voted to invoke the

disability clause in the firm’s operating agreement and to remove Judge from participation

in the firm. In June, following a period during which the firm alleges Judge did not respond 2 to Kostura’s and Putman’s inquiries about his future plans, the firm sent letters to clients

whom Judge had represented; virtually all of the letters state the following in relevant part:

As you are likely aware, John Judge has been suffering some health issues over the past several months. While we hoped he would be able to return to the practice of law, it is our personal opinion that he is not able to do so now and that his disability may continue into the foreseeable future. We have monitored your case on his behalf and responded to firm clients during this time, but it is not feasible for the firm to continue representation on your case. We therefore request that you retain new counsel for your legal matter. Please have that attorney contact us by June 15, 2020 so we can arrange an orderly transition of your file to your new attorney. John Judge is no longer a member of this firm. If you wish to retain John Judge as a sole practitioner to continue with representation of you in your case, you may contact him at [Judge’s contact information].

(alteration in brackets).

The firm sent one client a letter that differed in some respects. Unlike the sentence

opining that Judge’s disability might continue into the foreseeable future, this letter added,

“Mr. Judge believes he will be able to handle cases and continue practicing.” Rather than

announcing the termination of the client’s relationship with the firm, the firm instructed the

client, “If you prefer for us to handle your case, you may retain us.”

Judge filed the underlying lawsuit in June 2020, alleging defamation, invasion of

privacy, and intentional infliction of emotional distress. The firm answered and filed a

motion to dismiss under the TCPA, alleging Judge’s claims against them were in

response to their exercise of their right of free speech, right to petition, and right of

association. Thereafter Judge amended his petition, adding claims of breach of fiduciary

duty, a suit for accounting, and seeking declaratory relief. After receiving briefing, the

3 district court denied the firm’s motion to dismiss, expressly concluding the TCPA did not

apply because of the commercial-speech exemption.2

Analysis

On appeal, the firm claims the commercial-speech exception is inapplicable for

various reasons. We disagree, and hold the district court correctly denied the motion to

dismiss after applying the commercial-speech exception.

This appeal requires us to review provisions of the TCPA, which we conduct de

novo. ExxonMobil Pipeline Co. v. Coleman, 512 S.W.3d 895, 899 (Tex. 2017) (per

curiam); Lippincott v. Whisenhunt, 462 S.W.3d 507, 509 (Tex. 2015). Drafting and

passing legislation is often the result of compromise between competing policy interests,

so it is essential that courts “stay in their lane” when construing the meaning of statutes.

See In re Tex. Dep’t of Family & Protective Servs., 210 S.W.3d 609, 614 (Tex. 2006)

(orig. proceeding). This means that courts should divine the meaning of the Legislature’s

intent by looking at the statute’s plain language. Lippincott, 462 S.W.3d at 509. If that

language is unambiguous, courts must apply its terms as written “unless a different

meaning is supplied by statutory definition, is apparent from the context, or the plain

meaning would lead to an absurd or nonsensical result.” Creative Oil & Gas, LLC v. Lona

Hills Ranch, LLC, 591 S.W.3d 127, 133 (Tex. 2019) (quoting Beeman v. Livingston, 468

S.W.3d 534, 538 (Tex. 2015)). “We do not read words into a statute to make it what we

consider to be more reasonable, rather we may do so only to prevent an absurd result.”

Union Carbide Corp. v. Synatzske, 438 S.W.3d 39, 52 (Tex. 2014).

2 Id. § 27.010(a)(2). 4 We also review de novo whether the parties met their respective burdens of proof

under the TCPA. Tex. Custom Wine Works, LLC v. Talcott, 598 S.W.3d 380, 385 (Tex.

App.—Amarillo 2020, no pet.).

Whether the TCPA Applies to the Firm’s Communications

We begin with whether Judge’s claims are based on the firm’s exercise of the right

of free speech, association, or to petition. Id. § 27.001(1)-(4); Castleman v. Internet

Money Ltd., 546 S.W.3d 684, 688 (Tex. 2018).

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Judy Kostura, Stan M. Putman, Jr., and Judge, Kostura & Putman, P.C. v. John Judge, Counsel Stack Legal Research, https://law.counselstack.com/opinion/judy-kostura-stan-m-putman-jr-and-judge-kostura-putman-pc-v-texapp-2021.