Landry's, Inc. and Houston Aquarium, Inc. v. Animal Legal Defense Fund, Carney Anne Nasser, and Cheryl Conley

CourtCourt of Appeals of Texas
DecidedOctober 18, 2018
Docket14-17-00207-CV
StatusPublished

This text of Landry's, Inc. and Houston Aquarium, Inc. v. Animal Legal Defense Fund, Carney Anne Nasser, and Cheryl Conley (Landry's, Inc. and Houston Aquarium, Inc. v. Animal Legal Defense Fund, Carney Anne Nasser, and Cheryl Conley) 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
Landry's, Inc. and Houston Aquarium, Inc. v. Animal Legal Defense Fund, Carney Anne Nasser, and Cheryl Conley, (Tex. Ct. App. 2018).

Opinion

Affirmed as Modified; Majority and Concurring and Dissenting Opinions filed October 18, 2018.

In The

Fourteenth Court of Appeals

NO. 14-17-00207-CV

LANDRY’S, INC. AND HOUSTON AQUARIUM, INC., Appellants V.

ANIMAL LEGAL DEFENSE FUND, CARNEY ANNE NASSER, AND CHERYL CONLEY, Appellees

On Appeal from the 334th District Court Harris County, Texas Trial Court Cause No. 2016-79698

CONCURRING AND DISSENTING OPINION

I concur in the court’s judgment except for the sanctions issue. After careful review of the briefs and the record, I agree with the majority that the sanction imposed by the trial court is excessive. However, I disagree that this record supports any sanction above a nominal amount. I would reverse the portion of the trial court’s order awarding sanctions against Landry’s and render judgment against Landry’s for sanctions in a nominal sum. Because the majority suggests remittitur to an amount I believe is unsupported by evidence, I respectfully dissent in part.

The sanction’s statutory basis is Civil Practice and Remedies Code section 27.009. It states, in relevant part:

(a) If the court orders dismissal of a legal action under this chapter, the court shall award to the moving party: (1) court costs, reasonable attorney’s fees, and other expenses incurred in defending against the legal action as justice and equity may require; and (2) sanctions against the party who brought the legal action as the court determines sufficient to deter the party who brought the legal action from bringing similar actions described in this chapter.

Tex. Civ. Prac. & Rem. Code § 27.009(a). Based on section 27.009(a)(2), the trial court imposed $450,000 in sanctions against Landry’s, finding that such an amount was necessary to “deter Plaintiffs from filing similar actions in the future.”1 No other finding was made or requested. As the present sanction is grounded solely on section 27.009(a), our review of the award is governed by its language. See Kinney v. BCG Attorney Search, Inc., No. 03-12-00579-CV, 2014 WL 1432012, at *11 (Tex. App.—Austin Apr. 11, 2014, pet. denied) (mem. op.) (TCPA sanction order reviewed under language of section 27.009).

The parties agree that an abuse of discretion standard applies to a sanction award under section 27.009. See id. A trial court abuses its discretion if its ruling is arbitrary, unreasonable, or without reference to any guiding rules or principles. See Low v. Henry, 221 S.W.3d 609, 614 (Tex. 2007); Cire v. Cummings, 134 S.W.3d 835, 838-39 (Tex. 2004). The Supreme Court of Texas has not identified specific

1 Like the majority, I refer to appellants collectively as “Landry’s.” The court ordered $250,000 payable to ALDF and $200,000 payable to Conley.

2 factors guiding trial courts in deciding the just amount of TCPA sanctions, but the parties appear to at least agree—by their joint citations to Kinney—that the two-part inquiry outlined in TransAmerican applies. See Kinney, 2014 WL 1432012, at *11 (citing Am. Flood Research, Inc. v. Jones, 192 S.W.3d 581, 583 (Tex. 2006) (per curiam)); see also Nath v. Tex. Children’s Hosp., 446 S.W.3d 355, 361 (Tex. 2014) (discussing TransAmerican Nat. Gas Corp. v. Powell, 811 S.W.2d 913 (Tex. 1991)). Under that two-part test—which I too assume applies—appellate courts must ensure that: (1) a direct nexus exists between the improper conduct, the offender, and the sanction imposed;2 and (2) less severe sanctions would not have been sufficient to satisfy its legitimate purposes. See Am. Flood Research, 192 S.W.3d at 583 (citing TransAmerican, 811 S.W.2d at 917). Designed to safeguard due process rights, this two-part inquiry ensures that a sanction is neither unjust nor excessive. See Nath, 446 S.W.3d at 363.

Trial courts have substantial discretion in fixing a monetary sanction within the due process constraints articulated in TransAmerican. The first prong of the test ensures that a just sanction is directed against the offending conduct and visited upon the true offender. See id. Fairly answering this question requires trial courts to attempt to determine whether the offensive conduct is attributable to the party only, to counsel only, or to both. See id.

Under TransAmerican’s second prong, courts consider the proportionality of the sanction relative to the misconduct. See id. The sanction’s amount must both further the sanction’s legitimate purpose and not exceed a sum necessary to satisfy that purpose. See id.; Am. Heritage Capital, LP v. Gonzalez, 436 S.W.3d 865, 881 (Tex. App.—Dallas 2014, no pet.) (stating that it was trial judge’s prerogative to

2 Nath, 446 S.W.3d at 363 (citing TransAmerican, 811 S.W.2d at 363); Am. Flood Research, 192 S.W.3d at 583.

3 weigh the evidence “in determining, as a matter of discretion, how large the sanction needed to be to accomplish its statutory purpose”), disapproved of on other grounds by Hersh v. Tatum, 526 S.W.3d 462, 468 (Tex. 2017). A sanction should be a function of the facts presented and the purpose of the provision a court is enforcing. See TransAmerican, 811 S.W.2d at 920 (Gonzalez, J., concurring).

Sanctions can have many purposes, including securing compliance with a statute, rule, or order, punishing past improper conduct, or deterring future conduct. See Nath, 446 S.W.3d at 363; TransAmerican, 811 S.W.2d at 921 (Gonzalez, J., concurring) (“Sanctions can be compensatory, punitive or deterrent in nature.”) (citing G. Joseph, SANCTIONS: THE FEDERAL LAW OF LITIGATION ABUSE § 16 (1989)). “The word ‘sanction’ has been judicially defined as ‘means of enforcement’”3 or as “‘a restrictive measure used to . . . prevent some future activity.’” Resolution Trust Corp. v. Tarrant Cty. Appraisal Dist., 926 S.W.2d 797, 804 (Tex. App.—Fort Worth 1996, no writ) (quoting WEBSTER’S THIRD NEW INTERNATIONAL DICTIONARY 2008-09 (1981)).

The stated purpose of section 27.009(a) sanctions is to “deter the party who brought the legal action from bringing similar actions described in this chapter.” Tex. Civ. Prac. & Rem. Code § 27.009(a)(2). As appellees acknowledge, deterrence from “pulling the trigger so quickly on future SLAPPs” is the “overriding question,” and the majority agrees that TCPA sanctions are not intended to punish a plaintiff whose claims are dismissed. At least one other court of appeals has recognized the goal of TCPA sanctions as deterrence, not punishment. McGibney v. Rauhauser, 549 S.W.3d 816, 836 (Tex. App.—Fort Worth 2018, pet. denied).

3 Coutlakis v. State, 160 Tex. Crim. 249, 257, 268 S.W.2d 192, 198 (1954) (op. on reh’g) (Morrison, J., dissenting).

4 In analyzing a sanction, appellate courts do not rely only on the trial court’s findings but must review the entire record independently to determine if the trial court abused its discretion. Am.

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Landry's, Inc. and Houston Aquarium, Inc. v. Animal Legal Defense Fund, Carney Anne Nasser, and Cheryl Conley, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landrys-inc-and-houston-aquarium-inc-v-animal-legal-defense-fund-texapp-2018.