Noble Capital Venture Fund, LLC TXPLCA, LLC And Noble Capital Ventures, LLC v. Revelry on the Boulevard, LLC Revelry Kitchen and Bar, LLC 1901 S. Lamar LLC D/B/A Corner Bar Lochrie Investments, LLC And Jonathan Lochrie

Court of Appeals of Texas·Decided August 17, 2023·No. 08-22-00208-CV·Published

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS

NOBLE CAPITAL VENTURE FUND, LLC; § TXPLCA, LLC; and NOBLE CAPITAL VENTURES, LLC, § No. 08-22-00208-CV

Appellants, § Appeal from the

v. § 98th Judicial District Court

REVELRY ON THE BOULEVARD, LLC; § of Travis County, Texas REVELRY KITCHEN AND BAR, LLC; CORNER BAR, LLC; LOCHRIE § (TC# D-1-GN-21-003474) INVESTMENTS, LLC; and JONATHAN LOCHRIE, §

Appellees. §

MEMORANDUM OPINION

This interlocutory appeal under the Texas Citizens Participation Act (TCPA) involves a

business dispute predominately concerning whether money invested in two restaurants is properly

characterized as a loan. After the private equity parties (Noble Capital Venture Fund, LLC;

TXPLCA, LLC; and Noble Capital Ventures, LLC; collectively, “Noble”) sued the restaurant

parties (Revelry on the Boulevard, LLC; Revelry Kitchen and Bar, LLC; Corner Bar, LLC; Lochrie

Investments, LLC; and Jonathan Lochrie; collectively, “the Lochrie Parties”) based on the parties’ dealings, the Lochrie Parties asserted counterclaims. Noble moved to dismiss under the TCPA and

Rule 91a of the Texas Rules of Civil Procedure, and the trial court denied the motion. We affirm.

BACKGROUND 1

Jonathan Lochrie, the sole owner of Lochrie Investments, LLC, is an entrepreneur and

restauranteur in Austin, Texas. After the success of his first restaurant, Corner Bar, he partnered

with Noble to establish two new restaurants: Revelry Kitchen and Bar (RKB) and Revelry on the

Boulevard (ROB). Noble organized the LLCs for both RKB and ROB.

The Noble entities each contributed various amounts of startup cash to each restaurant. 2

Lochrie contends he and Noble’s chief operating officer agreed Noble would be the primary capital

investor, providing startup money and business services, while he would create the concepts and

provide management services for the restaurants. However, other than the corporate formation

documents, no terms of this partnership were reduced to writing. Indeed, Lochrie refers to the

arrangement as a “handshake” deal and alleges Noble’s chief executive officer (and Lochrie’s

childhood friend) called it a “buddy deal.”

Based on Noble’s chief operating officer’s suggestions, Lochrie says he took monthly

draws from the restaurants as compensation for his full-time management duties, as well as

transferred money from one restaurant to the other as necessary for business operations. By late

2017, with both restaurants still struggling to find success, Lochrie agreed to a $90,000 loan

1 Because this appeal requires a determination of whether the TCPA applies to the Lochrie Parties’ counterclaims, this section is largely pulled from facts alleged in the Lochrie Parties’ first amended counterclaim, i.e., the live pleading when Noble filed its motion to dismiss. See Hersh v. Tatum, 526 S.W.3d 462, 467 (Tex. 2017) (observing that “it would be impossible to determine the basis of a legal action, and thus the applicability of the [TCPA], without considering the plaintiff’s petition” because the petition “is the best and all-sufficient evidence of the nature of the action” (cleaned up).). 2 The characterization of Noble’s cash contributions is at the heart of this litigation, and in using certain terms over others (e.g., “contributions,” rather than “loans”), we take no stance on the merits of the parties’ arguments.

2 proposed by Noble to help ROB meet its operating costs. As part of that deal, Lochrie also gave

Noble Capital Venture Fund a security interest in ROB’s assets. Noble also proposed a $60,000

loan for RKB, which Lochrie says he declined.

In October 2020, with the restaurants struggling during the COVID-19 pandemic, Noble

asked Lochrie for a “partnership reset” and (unbeknownst to Lochrie) filed two UCC-1 financing

statements with the Texas Secretary of State claiming a security interest in RKB’s assets. Noble’s

proposal outlined new terms of ownership and management for both restaurants and characterized

its past cash contributions as debt. It also included copies of several promissory notes reflecting

repayment at 16% interest. 3

Lochrie maintains all but one of those notes—the 2017 $90,000 ROB loan—contained

unauthorized digital images of his signatures. Noble later wrote to Lochrie and the restaurants

regarding the disputed notes, stating that it “conduct[ed] a more thorough review” following

Lochrie’s protests about their validity and determined it disseminated all but two 4 as “the result

of a bona fide accident/misunderstanding.” Noble clarified it was “rescinding and cancelling” the

other disputed notes.

Noble sued Lochrie, his LLC, and his three restaurants to collect over $1.8M in principal

and interest of what it characterizes as loans, asserting breach of contract, fraud, and declaratory

judgment claims. Noble also sought to appoint a receiver over RKB, but the trial court denied the

motion. The Lochrie Parties denied Noble’s allegations, raised affirmative defenses, and asserted

counterclaims against Noble, seeking declaratory relief on the validity of the disputed promissory

3 Soon after sending its proposed term sheet, Noble also demanded to examine all books and records of RKB, ROB, and Corner Bar. 4 The two remaining notes include the 2017 $90,000 ROB loan—which Lochrie agrees is valid—and a 2017 RKB loan—which Lochrie maintains he never signed.

3 notes and bringing claims for breach of fiduciary duty, fraud, fraudulent lien filing for the UCC-1

financing statements against RKB, tortious interference, and alternatively (if the trial court decided

the disputed payments were loans), lender liability fraud and usury.

After the Lochrie Parties filed their first amended counterclaim (which dropped the tortious

interference claims), Noble moved to dismiss under Rule 91a (for the fraud and usury claims) and

the TCPA (for all other claims). It also challenged the standing of the Lochrie Parties to bring

various claims. The Lochrie Parties responded, contending the TCPA does not apply, and filed a

second amended counterclaim to address Noble’s standing issue. The trial court denied Noble’s

motion to dismiss following a hearing. This interlocutory appeal followed.

APPLICABLE LAW AND STANDARD OF REVIEW

The TCPA “protects speech on matters of public concern by authorizing courts to conduct

an early and expedited review of the legal merit of claims that seek to stifle speech through the

imposition of civil liability and damages.” Lilith Fund for Reprod. Equity v. Dickson, 662 S.W.3d

355, 363 (Tex. 2023). It “was designed to protect both a defendant’s rights of speech, petition, and

association and a claimant’s right to pursue valid legal claims for injuries the defendant caused.”

Montelongo v. Abrea, 622 S.W.3d 290, 295 (Tex. 2021) (citing TEX. CIV. PRAC. & REM. CODE

ANN. § 27.002). If a legal action is “based on or is in response to” the exercise of one of the

statutory enumerated rights, the defendant may seek dismissal under the TCPA. Yu v. Koo, 633

S.W.3d 712, 720 (Tex. App.—El Paso, no pet.).

The TCPA provides a three-step process for dismissing a legal action to which it applies.

Montelongo, 622 S.W.3d at 295 (citing Castleman v. Internet Money Ltd., 546 S.W.3d 684, 691

(Tex. 2018)).

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Noble Capital Venture Fund, LLC TXPLCA, LLC And Noble Capital Ventures, LLC v. Revelry on the Boulevard, LLC Revelry Kitchen and Bar, LLC 1901 S. Lamar LLC D/B/A Corner Bar Lochrie Investments, LLC And Jonathan Lochrie, (Tex. Ct. App. 2023).

Noble Capital Venture Fund, LLC TXPLCA, LLC And Noble Capital Ventures, LLC v. Revelry on the Boulevard, LLC Revelry Kitchen and Bar, LLC 1901 S. Lamar LLC D/B/A Corner Bar Lochrie Investments, LLC And Jonathan Lochrie (Noble Capital Venture Fund, LLC TXPLCA, LLC And Noble Capital Ventures, LLC v. Revelry on the Boulevard, LLC Revelry Kitchen and Bar, LLC 1901 S. Lamar LLC D/B/A Corner Bar Lochrie Investments, LLC And Jonathan Lochrie) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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