Larry K. Anders v. Stetson Oates

Court of Appeals of Texas·Decided April 9, 2020·No. 02-19-00188-CV·Published

Opinion

In the Court of Appeals Second Appellate District of Texas at Fort Worth ___________________________ No. 02-19-00116-CV ___________________________

LARRY K. ANDERS, Appellant

V.

LESLIE OATES, DENISE OATES, AND OATES ENTERPRISES, LLC, Appellees

AND ___________________________ No. 02-19-00188-CV ___________________________

STETSON OATES, Appellee On Appeal from the 271st District Court Wise County, Texas Trial Court No. CV-17-09-787

Before Kerr, Bassel, and Wallach, JJ. Memorandum Opinion by Justice Wallach

2 MEMORANDUM OPINION

This is an anti-SLAPP case. The trial court denied two motions filed by

Appellant Larry Anders seeking dismissal under the Texas Citizens Participation Act

(TCPA), Tex. Civ. Prac. & Rem. Code Ann. § 27.003, of the claims brought against

him by Appellees Leslie Oates, Denise Oates, Stetson Oates, and Oates Enterprises,

LLC. Because the TCPA does not apply to the claims against Anders, we affirm.

Background

Appellees sued Anders for claims arising out of (1) the execution and

implementation of an interest purchase agreement (IPA) through which Leslie and

Denise sold two business that they owned—LO Transport, Inc. and LO Oilfield

Services, LLC (the LO Companies)—and (2) the execution of an employment

agreement between LO Transport and Stetson Oates, Leslie and Denise’s son.

Appellees alleged the following facts in their respective pleadings. Stetson was

the LO Companies’ CEO, and in 2017, he was approached by Jonathan Collura about

buying the companies. Collura represented SAF Capital Partners, LLC, a joint

venture between Collura and Anders. To effectuate the sale, SAF Capital formed a

limited liability company (the LLC) to take ownership of the LO Companies and

formed a limited partnership (the LP) to be the LLC’s sole member. SAF Capital is

the LP’s general partner. 1

1 We refer to SAF Capital, the LP, and the LLC collectively as “the SAF entities.”

3 Collura and Anders approached CrossFirst Bank for a loan to fund the

purchase. Collura represented to the bank that the purchase would be funded

through three sources: $4 million in cash equity from the LLC and its investors,

$3 million from mezzanine lender Morrison Enterprises, LLC; and a loan they hoped

to secure from CrossFirst. 2 Collura and Anders both represented to CrossFirst that

Stetson would stay on with LO Transport after the purchase. CrossFirst approved

the loan. On January 12, 2017, Anders and Collura spoke to Stetson on the phone to

discuss terms for him staying with the company after the sale. That discussion

included their offering Stetson an employment agreement and minority ownership in

the entity acquiring the LO Companies. 3

On February 3, 2017, Leslie and Denise signed the IPA under which they

agreed to sell 100% of the ownership interest in the LO Companies to the LLC for

$11 million.4 Collura signed the agreement on behalf of the LLC. Stetson executed a

2 According to the documents provided to CrossFirst, in addition to applying for a loan to fund the purchase, they also applied for a $1 million working capital line of credit. 3 Leslie and Denise—neither of whom were on the call—alleged that the phone call included discussion of giving Stetson a minority interest “in the SAF entity acquiring the LO Companies.” The LLC acquired the entities, but Stetson was granted a minority interest (through Oates Enterprises) in the LP. 4 Under the terms of the IPA, the aggregate purchase price was $11 million payable within 30 days of closing in cash or cash equivalents, subject to adjustment; the parties agreed that the purchase price was based on an estimated amount of working capital and that if that estimate as of the closing date was “less than the total current assets set forth in the Balance Sheet of Company as of January 31, 2017, less

4 five-year employment agreement with the LLC and was given a minority ownership

interest in the LP through Oates Enterprises, an entity he managed.

On February 15, 2017, Leslie and Denise received wire transfers totaling

$8 million toward the purchase price. In July 2017, Leslie and Denise loaned LO

Transport $300,000 under a promissory note.

In September 2017, having not been paid the remaining $3 million of the

purchase price, Leslie and Denise sued Collura and the SAF entities. Through

amended petitions, they added Anders, Morrison Enterprises, and LO Transport as

defendants. According to Leslie and Denise, because they did not have any contact

with Anders in negotiating or executing the IPA, they were initially unaware of

Anders’s involvement in the SAF entities and only learned of his involvement through

discovery.

Leslie and Denise contended that the defendants had failed to pay the full

purchase price for the sale. They further alleged that the defendants had failed to pay

the LO Companies’ debts and that, as a result, Leslie and Denise had been receiving

harassing debt-collection calls regarding company debts. They asserted that when

they had not received the full purchase price within thirty days of closing, they asked

when payment would be received and that Stetson was told that they would be paid

liabilities set forth in the Balance Sheet of Company as of January 31, 2017,” then the purchase price would be “reduced by the difference.”

5 before the end of the year.5 They alleged that they relied on this promise in agreeing

to loan the $300,000 to LO Transport.

Based on these allegations, Leslie and Denise sued Anders for tortious

interference with the IPA, violations of the Texas Securities Act, statutory fraud,

common-law fraud, and tortious interference with the promissory note. The

defendants—except Anders and Morrison Enterprises—jointly answered, filed

counterclaims against Leslie and Denise, and joined Stetson as a third-party

defendant. Among other facts, they alleged that Leslie and Denise had “secretly and

fraudulently concealed the true financial condition of LO” Transport. They also

alleged that they had paid the remaining $3 million of the purchase price by giving

Stetson the minority interest in the LP.

After Anders answered, Stetson countersued the defendants, including Anders,

for tortious interference with his employment contract, common-law fraud, fraud by

nondisclosure, fraudulent inducement, and civil conspiracy. Oates Enterprises

intervened in the suit and asserted claims against the same defendants.

Anders filed a TCPA motion to dismiss the claims against him by Leslie,

Denise, and Oates Enterprises. Anders asserted that Leslie and Denise sought “to

impose liability on [him] simply because he was ‘part’ of the ownership group that

acquired the LO Companies.” He argued that “[b]ecause the Oates[es]’ pleadings and

Leslie and Denise’s petition did not say who they asked about the payment or 5

who told Stetson that the funds would be paid before the end of the year.

6 deposition testimony establish that their claims against Anders arise out of his exercise

of the right of association,” those claims should be dismissed. He further argued that

Oates Enterprises’ claims against him were “based upon and/or relate[d] to alleged

communications between Anders and others in pursuit of a common business

enterprise” and therefore also implicated the exercise of the right of association.

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Larry K. Anders v. Stetson Oates, (Tex. Ct. App. 2020).

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