Mansik & Young Plaza LLC, Young Ho Kim, Sun Hui Kim and David Kim v. K-Town Management, LLC D/B/A KTN US IP Investments, LTD. Odes H. Kim Ji Hong Park, and Chul Seung Park

Court of Appeals of Texas·Decided August 15, 2016·No. 05-15-00353-CV·Published

Opinion

AFFIRM; and Opinion Filed August 15, 2016.

S In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-15-00353-CV

MANSIK & YOUNG PLAZA LLC, YOUNG HO KIM, SUN HUI KIM, AND DAVID KIM, Appellants V.

K-TOWN MANAGEMENT, LLC D/B/A KTN US, IP INVESTMENTS, LTD., ODES H. KIM, JI HONG PARK, AND CHUL SEUNG PARK, Appellees

On Appeal from the 193rd Judicial District Court Dallas County, Texas

Trial Court Cause No. DC-14-12729

MEMORANDUM OPINION

Before Justices Lang-Miers, Brown, and Schenck Opinion by Justice Brown

Appellants Mansik & Young Plaza, LLC (Mansik & Young), Young Ho Kim, Sun Hui

Kim, and David Kim sued appellees K-Town Management, LLC d/b/a KTN US (KTN US), IP Investments, LTD., Odes H. Kim, Ji Hong Park, and Chul Seung Park for libel following the publication of four articles in a weekly Korean newspaper. The trial court granted appellees’ motion to dismiss under the Texas Citizens Participation Act (TCPA). In this appeal, appellants contend the trial court erred in dismissing their claims because the TCPA does not apply and because they established a prima facie case of libel and erred in denying their motion for limited discovery. For the following reasons, we affirm the trial court’s order of dismissal.

BACKGROUND

According to appellants’ pleadings, in 2008, appellant Mansik & Young purchased a 46,000 square foot office building in Dallas known as the Crown Plaza building. The other appellants, Young Ho Kim, his wife Sun Hui Kim, and his brother David Kim, are members of Mansik & Young. Young Ho Kim is very well known in the Texas Korean community, as well as in the national Korean community and in South Korea. He is the Chairman of the Federation of Korea Associations USA and former President of the Dallas Korean American Society. In May 2014, a real estate broker approached Young Ho Kim about selling the Crown Plaza building to the Korean Cultural Center of Dallas (KCCD) to be used to establish a center for the North Texas Korean community. Young Ho Kim agreed to sell the building to the KCCD for $1.5 million. The sale would result in a financial loss to Mansik & Young, but Mansik & Young was willing to sell as a donation to the KCCD. This agreement was later terminated, but the parties reached a second agreement for the sale of the building for the same price. The sale was scheduled to close in November 2014.

Appellee KTN US publishes a weekly newspaper, Korean Town News, in Dallas for the Korean community. The publication also appears online. Appellee Odes Kim is the owner and publisher of KTN US, appellee Ji Hong Park is its president, and appellee Chul Seung Park is its editor. In four consecutive issues in September and October 2014, KTN US published a series of articles about the proposed sale of Mansik & Young’s building to the KCCD. The articles were written and published in Korean. English translations of the articles were filed with the trial court. The first article is attributed to Chul Seung Park, and the other three are attributed to a “special reporting team.” Each article included at least one photograph of the building or the surrounding location.

In late October 2014, after publication of the fourth article, appellants sued appellees for libel, asserting the articles contained defamatory statements. Appellants alleged that appellees wanted to stop the sale of the Crown Plaza building to the KCCD so that appellee IP Investments could sell the KCCD its own building. In the factual background section of their petition, appellants listed specific statements that they asserted constituted libel per se.

Appellees filed an answer generally denying appellants’ allegations and asserting special exceptions and affirmative defenses. They asserted that public funds were being raised to purchase the cultural center. Appellees later filed a motion to dismiss all of appellants’ claims under the TCPA, asserting they were sued in retaliation for publishing the articles. Appellants filed a response to the motion to dismiss and attached various exhibits to the response. A few days before the hearing on the motion, appellants filed an emergency motion to take the deposition of appellee Chul Seung Park, the editor of KTN US, and moved to continue the motion to dismiss. At the hearing, appellees’ attorney made the uncontroverted statement that the sale of the building had gone through as planned. The trial court denied appellants’ request for discovery and granted appellees’ motion to dismiss. The court’s order dismissed appellants’ claims with prejudice and awarded attorney’s fees to appellees. This appeal followed.

Before addressing appellants’ issues, we first summarize the four articles as follows:

1. September 26, 2014 article: “Korean Community, Professionals, and Others Calling Our Office for Complaining Angry with ‘Exclusion of Fairness, Clarity’”

The first article referred to appellants but does not mention them by name. It stated that Koreans have become increasingly worried since the announcement of the building selection for the KCCD. The newspaper had received “continuous phone calls of complaints with a kind of indication of, ‘It’s a kind of deception of Koreans by a tactics of trying to reduce the burden of rental fees for KSD [Korean Society of Dallas] office and by a card game in which the building owner was colluded in a ‘Go-stop’ game.” The article indicated that callers are worried about

future operational problems caused by purchasing the building with a loan and operating with the building rental income. It stated, “Accordingly, KTN (Korea Town News) will review the impropriety as well as the possible future problems of the building, future operation and maintaining the ownership of the building contracted for the Korean Cultural Center of Dallas.”

The article gave the opinions of four specific people, one who wished to remain anonymous and three identified by only one initial, who were unhappy with the building selection. The anonymous person had participated in fundraising for the building, but was “regretting very much and strongly denouncing the Promotion Committee’s purchase of the building.” Mr. K, an experienced building inspector, was completely disappointed in the building site. He listed numerous problems with the building, including “loan, . . . resale or asset value 0, [u]nder the highway, . . . few parking spaces, internal structure, . . . feels like a haunted one. Mr. K was also of the opinion that the “poongsu condition” was “like building a house on a running water.” (According to the pleadings, poongsu is a Korean term for bad karma.) Mr. K also stated “looks like cheating Koreans.” Mr. L, who had an angry voice on the phone, asked, “Do you know who is the owner of the Crown Plaza building?” He added that the “registered names are the brothers, the Senior Vice-chair of Korean Society of Dallas (KSD) and the Chairman of the board of directors of the Federation of Korean Society in US (FKSUS).” According to Mr. L, it is a collusion between those representatives of the KSD and the FKSUS. He noted the contract was rapidly done as the price was very low. He also stated that the Crown Plaza building was known as problematic due to “renting was not going well.” Mr. L stated that others shared his opinion that “a real suspicious unclear reason existed” for selecting this building. Mr. P could not calm his rage because he saw the building had no value for resale or as an asset. He expressed concern that it would be difficult to make the payment for the bank loan with the rental income, especially since it was proposed some of the office space would be

converted into cultural center space. Mr. P also thought the City would never allow the proposed 10,000 square foot auditorium due to safety concerns.

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Mansik & Young Plaza LLC, Young Ho Kim, Sun Hui Kim and David Kim v. K-Town Management, LLC D/B/A KTN US IP Investments, LTD. Odes H. Kim Ji Hong Park, and Chul Seung Park, (Tex. Ct. App. 2016).

Mansik & Young Plaza LLC, Young Ho Kim, Sun Hui Kim and David Kim v. K-Town Management, LLC D/B/A KTN US IP Investments, LTD. Odes H. Kim Ji Hong Park, and Chul Seung Park (Mansik & Young Plaza LLC, Young Ho Kim, Sun Hui Kim and David Kim v. K-Town Management, LLC D/B/A KTN US IP Investments, LTD. Odes H. Kim Ji Hong Park, and Chul Seung Park) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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