Michael Williams and Pearl 1 Services, LLC v. Jim Roche, Debra Roche, and Marie Willis

Court of Appeals of Texas·Decided June 26, 2025·No. 10-23-00042-CV·Published

Opinion

Court of Appeals

Tenth Appellate District of Texas

10-23-00042-CV

Michael Williams and Pearl 1 Services, LLC, Appellant

v.

Jim Roche, Debra Roche, and Marie Willis, Appellee

On appeal from the

40th District Court of Ellis County, Texas Judge Bob Carroll, presiding Trial Court Cause No. 108537

JUSTICE HARRIS delivered the opinion of the Court.

MEMORANDUM OPINION

Michael Williams and Pearl 1 Services, LLC (collectively the “Pearl Group”) sued Jim Roche, Debra Roche and Marie Willis (collectively the “MW Individuals”). The MW Individuals filed motions to dismiss pursuant to the Texas Citizens Participation Act (“TCPA”) 1. The Pearl Group filed a response to the MW Individuals’s TCPA motions, attaching exhibits. The MW

1 Marie Willis filed a separate, similar motion to dismiss subject to her special appearance.

Individuals filed a consolidated reply in support of their TCPA motions, containing objections to exhibits to the Pearl Group’s First Amended Response to Defendants’ TCPA Motion to Dismiss. The trial court granted the MW Individuals’s motions to dismiss and sustained the MW Individuals’s objections. The Pearl Group complains that the trial court erred by: (1) dismissing the Pearl Group’s claims of defamation and business disparagement based on the Texas Citizens Participation Act; and (2) sustaining the MW Individuals’s objections to the Pearl Group’s evidence. We affirm.

Background

The MW Individuals are employees and/or officers of the California company, MW Services, LLC (“MW Services”). Marie Willis (“Ms. Willis”) is the President of MW Services. Jim Roche (“Mr. Roche”) is a project manager, and Debra Roche (“Mrs. Roche”) is an administrative assistant. MW Services contracted with the United States Air Force / Dyess Air Force Base to serve as the general or prime contractor for construction projects at Dyess Air Force Base (the “Projects”). MW Services hired Pearl 1 Services, LLC (“Pearl 1”) to serve as a subcontractor for the Projects. Michael Williams is the President and owner of Pearl 1.

Michael Williams and Pearl 1 Services, LLC v. Jim Roche, Debra Roche, and Marie Willis Page 2

During the Projects, disputes arose between the Pearl Group, MW Services, and the MW Individuals regarding payments, the schedule, and the status of the Pearl Group’s payments to Pearl 1 employees. Through the course of these disputes, communications and statements (the “Statements”) were exchanged between the MW Individuals and third parties, including persons from the United States Air Force / Dyess Air Force Base, Pearl 1 employees, and Pearl 1’s bonding company (the “Third Parties”). The Pearl Group sued the MW Individuals for defamation and business disparagement related to those Statements allegedly made by the MW Individuals to the Third Parties in connection with the Project.

The MW Individuals then moved to dismiss the Pearl Group’s lawsuit under the TCPA. After a hearing, the trial court sustained the MW Individuals’s objections to certain exhibits filed by the Pearl Group, granted the MW Individuals’s TCPA motion to dismiss, and awarded the MW Individuals reasonable and necessary attorney’s fees in the amount of $60,224.85, plus conditional fees in the event of appeals. Specifically, the trial court sustained the MW Individuals’s objections to the Pearl Group’s exhibits 5, 6, 7, 11, 12, 13, and to paragraphs 5, 9, 15, 20, 34, 41, 42, 43, and 44 of Mr. Williams’s Amended Declaration (“Exhibits at Issue”).

Michael Williams and Pearl 1 Services, LLC v. Jim Roche, Debra Roche, and Marie Willis Page 3

The TCPA

In their first issue, the Pearl Group complains the trial court erred by granting the MW Individuals’s motions to dismiss and awarding the MW Individuals attorney’s fees under the TCPA. We disagree. Standard of Review We review a trial court's ruling on a TCPA motion to dismiss de novo.

Martin v. Walker, 606 S.W.3d 565, 567 (Tex. App.—Waco 2020, pet. denied); Holcomb v. Waller County, 546 S.W.3d 833, 839 (Tex. App.—Houston [1st Dist.] 2018, pet. denied). In reviewing the trial court's ruling, we “consider the pleadings, evidence a court could consider under Rule 166a, Texas Rules of Civil Procedure, and supporting and opposing affidavits stating the facts on which the liability or defense is based.” TEX. CIV. PRAC. & REM. CODE ANN. § 27.006(a). “We view the pleadings and evidence in the light most favorable to the nonmovant.” Robert B. James, DDS, Inc. v. Elkins, 553 S.W.3d 596, 603 (Tex. App.—San Antonio 2018, pet. denied). In our review, the pleadings, especially the plaintiff's allegations, are the best evidence to determine the nature of a legal action and the applicability of the TCPA. Hersh v. Tatum, 526 S.W.3d 462, 467 (Tex. 2017).

Reviewing such a motion requires a three-step analysis. Youngkin v.

Hines, 546 S.W.3d 675, 679 (Tex. 2018). As a threshold matter, the moving

Michael Williams and Pearl 1 Services, LLC v. Jim Roche, Debra Roche, and Marie Willis Page 4 party must show by a preponderance of the evidence that the TCPA properly applies to the “legal action” against it. Id. The movant bears the initial burden of demonstrating the legal action is based on or in response to the party's exercise of a protected right and, thus, the statute applies. TEX. CIV. PRAC. & REM. CODE ANN. § 27.005(b)(1). If the movant carries its step-one burden as to a claim, the burden shifts to the nonmovant to establish by clear and specific evidence a prima facie case for each essential element of that claim. See id. § 27.005(c). If the nonmovant does not carry its burden, the claim must be dismissed. See id. § 27.005(b),(c). Even if the nonmovant carries its step-two burden, the movant can still obtain dismissal at step three by establishing an affirmative defense or other grounds on which it is entitled to judgment as a matter of law. Id. § 27.005(d). Application of the TCPA We first analyze whether the MW Individuals met their threshold burden. In their motions to dismiss, the MW Individuals alleged that the Statements made the basis of the Pearl Group’s claims for defamation and business disparagement are a protected exercise of their right to free speech. Specifically, the MW Individuals alleged that the Statements constituted communications made in connection with a matter of public concern. As an initial matter, the Pearl Group does not assert in its pleadings, motions,

Michael Williams and Pearl 1 Services, LLC v. Jim Roche, Debra Roche, and Marie Willis Page 5 responses, or arguments to the trial court that the Statements were not communications made in connection with the matter of public concern or that the TCPA does not apply. 2 Instead, the Pearl Group only argued that the commercial-speech exemption to the TCPA applies pursuant to TEX. CIV. PRAC. & REM. CODE ANN. § 27.010(b). The Texas Supreme Court has previously noted that the commercial-speech exemption is wholly unnecessary unless the TCPA applies. Castleman v. Internet Money Ltd., 546 S.W.3d 684, 688 (Tex. 2018).

The Pearl Group, for the first time, in its appellants’ brief, alleged that the Statements were not the types of speech afforded protection under the TCPA because they were not on matters of public concern. In response, the MW Individuals argued that the issue was not properly preserved.

The Fourteenth Court of Appeals has opined that nonmovants do not bear the burden to show the non-applicability of the TCPA because the movants have that burden under TEX. CIV. PRAC. & REM. CODE Ann. § 27.005. Welsh v. River Hollow Ass'n, 654 S.W.3d 505, 509 (Tex. App.—Houston [14th Dist.] 2022, pet. denied); see also Neely v. Allen, No. 14-19-00706-CV, 2021 WL

2 The attorney for the MW Individuals specifically states to the trial court that there is no dispute

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