Oden v. Reader

935 S.W.2d 470, 1996 WL 687019
CourtCourt of Appeals of Texas
DecidedNovember 26, 1996
Docket12-94-00286-CV
StatusPublished
Cited by17 cases

This text of 935 S.W.2d 470 (Oden v. Reader) 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
Oden v. Reader, 935 S.W.2d 470, 1996 WL 687019 (Tex. Ct. App. 1996).

Opinion

HADDEN, Justice.

Appellant, Ken Oden (“Oden”) appeals the trial court’s interlocutory order denying his motion for summary judgment, which was based upon the affirmative defense of official immunity. Thomas J. Reader (“Reader”) filed a defamation suit against Oden, individually and as County Attorney for Travis County, Texas, and two Texas newspapers, the Dallas Morning News and the Austin American-Statesman. Reader alleged that a public statement made by Oden and published in the two newspapers was false and, by its nature, was defamatory. In response, Oden filed a motion for summary judgment alleging that he was entitled to absolute immunity and, alternatively, qualified immunity as a matter of law. The trial court denied Oden’s motion and Oden now appeals. We will reverse and render.

Background

At all times pertinent to this case, Oden was the County Attorney of Travis County, Texas. In April 1991, Oden was investigating and prosecuting persons, including Reader, for criminal violations in connection with the solicitation and sale of insurance. These persons had allegedly sold insurance without being appointed and designated as an agent by an insurance company, in violation of Article 21.07A of the Texas Insurance Code. 1 On April 12, 1991, Reader entered into a negotiated plea agreement with Oden, and pleaded guilty to a violation of Article 21.07A. He was found guilty by the trial court, and was assessed the maximum fine of $500.00 for that violation. At the time of Reader’s plea, Texas law provided that the penalty for such a violation was that the offender’s “license shall automatically expire upon such conviction.” Tex.Ins.Code Ann. § 21.07(12) (Vernon 1981). Thus, no action was taken by Oden regarding Reader’s license, and the issue was not addressed by the trial court in its judgment and sentence.

A week later, on April 19, 1991, a related multimillion dollar class-action suit involving the bank that employed Reader and an insurance company was settled. Following the hearing for court approval of the class-action settlement, Oden and the attorneys involved *473 in the civil case discussed the criminal and civil developments of the cases with the news media at the Travis County courthouse. The next day, the Dallas Morning News and the Austin American-Statesman published stories about the settlement and about Reader’s conviction.

The story in the Austin American-Statesman included the following statement:

The proposed settlement comes after four months of negotiations but only one week after a loan broker was convicted in a Travis County courtroom of selling life and disability insurance on behalf of ClayDesta and Service Life & Casualty Insurance of Austin without the proper designation.
The broker, Tom Reader of Houston was fined $500., and his license to sell insurance was revoked... (Emphasis ours)

The story published in the Dallas Morning News included the following statement:

“Meanwhile, an investigation into criminal allegations about the loan program continues” said Travis County Attorney Ken Oden. He said one of the banks (sic) loan brokers pleaded guilty to an insurance code violation last week....
The proposed settlement came a week after one of the bank’s three major loan brokers, Tom Reader of Houston pleaded guilty to a state insurance code violation.
• “Mr. Reader was fined $500. and lost his insurance license’’ Mr. Oden said. (Emphasis ours)

It is undisputed that Oden told reporters at the press conference about Reader’s conviction and his $500.00 fine. Exactly what Oden said about Reader’s insurance license, however, is in dispute. At the time of the press conference, no action had been taken by the Texas Insurance Commission or any other state official to cancel, suspend, revoke, or take away Reader’s state insurance license. The summary judgment evidence does reveal, however, that approximately ten months after Reader’s conviction, the Texas Insurance Commission initiated preliminary proceedings to take some action regarding Reader’s license. Patrick W. Dwyer, an official with the Texas Insurance Commission, stated in his deposition that the proceedings against Reader were later withdrawn without prejudice, and that the proceedings would not likely be reinstituted. According to Dwyer, the decision not to pursue the matter was based upon the merits of the case, the facts and circumstances of the ease, and the prioritization of other cases according to the agency’s resources.

On April 20, 1992, Reader filed a defamation suit against Oden and the two newspapers. He based his claim against Oden on Oden’s published statement that Reader’s insurance license had been “revoked” or “lost,” when, in fact, his license was still in force and effect.

Oden filed a motion for summary judgment, asserting that he should be granted judgment as a matter of law because: 1) he was entitled to absolute immunity for any statements made pursuant to his duties as county attorney; and, alternatively, 2) he would be entitled to qualified immunity for any statements made in the good faith exercise of his duties as county attorney. In his response, Reader argued that Oden would not be entitled to absolute immunity in connection with statements made to the press because press releases would not be part of his quasi-judicial functions as county attorney. Further, Reader argued that Oden would not be entitled to qualified immunity because Oden’s statement regarding Reader’s license was false and was not made in good faith. The trial court denied Oden’s motion for summary judgment, and Oden has filed this interlocutory appeal pursuant to Section 51.014(5) of the Texas Civil Practice and Remedies Code. 2

Standard of Review

A party moving for summary judgment must prove that no genuine issue of *474 material fact exists and that he is entitled to judgment as a matter of law. Tex.R.Civ.P. 166a(c); Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548 (Tex.1985); Swilley v. Hughes, 488 S.W.2d 64, 67 (Tex.1972). In determining whether there is a disputed material fact issue, we must take as true the evidence favorable to the nonmovant and resolve any doubts in his favor. Nixon, 690 S.W.2d at 548-49. When, as in the present ease, the movant is the defendant and bases his motion on an affirmative defense, he must prove each element of the defense as a matter of law. Montgomery v. Kennedy, 669 S.W.2d 309, 310-11 (Tex.1984). Until the movant conclusively establishes the affirmative defense, the nonmovant has no burden to raise a fact issue.

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Bluebook (online)
935 S.W.2d 470, 1996 WL 687019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oden-v-reader-texapp-1996.