Laurel Smith v. 2005 Tower LLC

CourtCourt of Appeals of Texas
DecidedAugust 1, 2024
Docket09-22-00350-CV
StatusPublished

This text of Laurel Smith v. 2005 Tower LLC (Laurel Smith v. 2005 Tower LLC) 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
Laurel Smith v. 2005 Tower LLC, (Tex. Ct. App. 2024).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

________________

NO. 09-22-00350-CV ________________

LAUREL SMITH, Appellant

V.

2005 TOWER LLC, Appellee

________________________________________________________________________

On Appeal from the 284th District Court Montgomery County, Texas Trial Cause No. 22-07-09437-CV ________________________________________________________________________

MEMORANDUM OPINION

This is an interlocutory appeal from an order denying a motion to dismiss

under the Texas Citizens’ Participation Act (TCPA), which is codified in Chapter 27

of the Texas Civil Practice and Remedies Code. Underlying the order denying the

motion to dismiss is a guardianship proceeding initiated by Gavin Clarkson

(“Gavin”) on behalf of his mother, Martha Clarkson (“Martha”), who Gavin alleged

1 was partially incapacitated. Laurel Smith (“Smith”), a guardian ad litem appointed

to represent Martha’s interests, filed a petition for declaratory judgment asking the

guardianship court to determine whether Martha lacked capacity to convey a duplex

(the Property) that she owned in Travis County to 2005 Tower LLC (Tower). Smith

also filed a notice of lis pendens, putting the public on notice of ongoing litigation

about the duplex. After Smith filed the notice of lis pendens, Tower sued Smith for

filing a fraudulent lien under Section 12.002(a), for tortious interference with a

contract, and to quiet title. Smith moved to dismiss each claim under the TCPA, but

the trial court denied the motion and awarded Tower attorney’s fees for responding

to the motion.

In two issues, Smith challenges the trial court’s order denying her motion to

dismiss. First, Smith contends the trial court erred in denying the motion because

she established the TCPA entitles her to dismissal of each of Tower’s claims.

Second, Smith contends the trial court abused its discretion in awarding Tower

attorney’s fees by finding her motion frivolous and solely intended to delay.

Concluding the TCPA entitles Smith to dismissal of Tower’s fraudulent lien under

Section 12.002(a) and tortious interference claims, we affirm in part, reverse in part,

and remand the case for further proceedings consistent with this opinion.

2 BACKGROUND

A. Underlying Litigation: Guardianship Lawsuit

This appeal involves two separate lawsuits. The first lawsuit, which we

identify as the “Guardianship Lawsuit,” was styled In the Guardianship of Martha

Atelia Clarkson, an Incapacitated Adult, in the County Court at Law No. 2 of

Montgomery County, Texas. It was started in September 2020 by Gavin, who filed

an Application for Appointment of Permanent Guardian of the Person and Estate

(Application for Guardianship), seeking guardianship over his eighty-one-year-old

mother, Martha. Gavin alleged that Martha was “partially without capacity” to

manage, among other things, the Property.

A week before Gavin filed the Application for Guardianship, a physician

diagnosed Martha with dementia. The physician signed a Certificate of Medical

Examination (CME) stating that Martha was partially incapacitated. The physician

observed, for instance, that Martha had cognitive deficits preventing her from

responsibly making complex business and financial decisions. After Gavin filed the

Application for Guardianship, at least two more physicians performed a mental

examination on Martha. In February 2021, for instance, a second physician signed a

CME stating Martha was partially incapacitated. Like the first physician, the second

3 physician noted that Martha had cognitive deficits preventing her from responsibly

making complex business and financial decisions.

In October 2020, the guardianship court appointed an attorney ad litem to

represent Martha, and the attorney ad litem filed an answer contesting Gavin’s

Application for Guardianship. See Tex. Est. Code Ann. § 1054.001 (providing that

in a proceeding for the appointment of a guardian, “the court shall appoint an

attorney ad litem to represent the proposed ward’s interests, including the proposed

ward’s expressed wishes[]”). A year later, after discharging Martha’s first attorney

ad litem, the guardianship court appointed Martha’s second attorney ad litem, who

moved to dismiss Gavin’s Application for Guardianship because Martha’s CMEs

demonstrated her statutory durable power of attorney appointing Gavin her agent

was more appropriate, and less restrictive, than guardianship.

In January 2022, Gavin nonsuited his Application for Guardianship with

prejudice, and the guardianship court signed an Order Approving Gavin’s Nonsuit.

The Order Approving Gavin’s Nonsuit functioned as a final judgment because

Gavin’s nonsuit rendered all claims opposing his Application for Guardianship

moot, and at that time, no other applications for guardianship had been filed. That

said, in February 2022, a court-appointed investigator filed a Motion to Reinstate

and Retain Case on Docket along with an Application for Guardianship. Although

4 the guardianship court never signed an order reinstating the case, over the next four

months, the guardianship court behaved as if the case had been reinstated.

In February 2022, for instance, the guardianship court signed an Amended

Order appointing a guardian ad litem for Martha. See id. § 1054.051(a) (stating “the

judge may appoint a guardian ad litem to represent the interests of an incapacitated

person in a guardianship proceeding[]”). In April 2022, after discharging that

guardian ad litem, the guardianship court signed an order appointing Smith, an

attorney, to be Martha’s successor guardian ad litem. The order stated Smith “is

appointed as Successor Guardian Ad Litem to continue as such until further order of

this Court.” The order also substituted Smith “in on all the pleadings filed by

[Martha’s previous guardian ad litem].”

One of Smith’s duties as guardian ad litem was to investigate whether a

guardianship was necessary for Martha by reviewing her financial, medical,

psychiatric, and personal records. During her investigation, Smith discovered

Martha had executed various documents, during the guardianship proceeding,

transferring her interests in real property. For instance, in March 2021, Martha

executed a General Warranty Deed conveying the Property to Tower, a limited

liability company formed by Gavin. Therefore, Smith filed a Petition for Declaratory

Judgment, alleging that “it has become necessary to construe certain contracts,

5 deeds, and other writings because disputes concerning [Martha’s] capacity to

contract and her ability to make complex business decisions have existed between

the parties to this matter since September of 2020.” Smith requested, among other

things, a declaration as to the validity of the General Warranty Deed, considering

the CMEs declaring Martha partially incapacitated—and unable to responsibly make

complex business decisions—around the time she executed the document.

Along with her Petition for Declaratory Judgment, Smith filed a Notice of Lis

Pendens against the Property, which was recorded in the real property records of

Travis County. The Notice of Lis Pendens states that ongoing disputes exist “as to

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