Reeves v. Harbor Am. Cent., Inc.

552 S.W.3d 389
CourtCourt of Appeals of Texas
DecidedJune 7, 2018
DocketNO. 14-17-00518-CV
StatusPublished
Cited by7 cases

This text of 552 S.W.3d 389 (Reeves v. Harbor Am. Cent., Inc.) 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
Reeves v. Harbor Am. Cent., Inc., 552 S.W.3d 389 (Tex. Ct. App. 2018).

Opinion

Martha Hill Jamison, Justice

In this interlocutory appeal, William Reeves challenges the trial court's denial of his motion to dismiss based on the Texas Citizens' Participation Act (TCPA).1 He specifically contends that the trial court improperly denied the motion on the grounds that it was filed to avoid discovery and to avoid contractual obligations. Our review of the record indicates that the trial court failed to analyze the motion on its merits under the framework required by the TCPA. Accordingly, we reverse the trial court's order denying the motion and remand this case for proceedings consistent with this opinion.

Background

Harbor America Central, Inc., provides staff leasing and human resources services to other companies. Reeves began working for Harbor America as an independent contractor. Just over a year later, Reeves was hired as Harbor America's regional sales leader, and he was promoted a few years later to national sales leader.

Reeves signed an employment agreement with Harbor America that includes provisions entitled "Covenant Not to Solicit" and "Confidential Information." In the Covenant Not to Solicit, Reeves agreed, in relevant part, that "while employed by [Harbor America] and ... for a period of one ... year following the termination of his employment," defined as the "Non-Solicitation Period," Reeves would not "solicit the business of, or perform services, in competition with or in a manner that could reasonably be expected to adversely affect [Harbor America] ... or otherwise interfere with [Harbor America's] relationship with, any [c]lient, or prospective [c]lient at any time during the Non-Solicitation Period." Reeves also agreed during the Non-Solicitation Period and "thereafter for as long as [he remained] a consultant to [Harbor America]" not to "hire or solicit any employee, consultant, or independent sales agent of [Harbor America] away from the [c]ompany or encourage any such [person] to leave such employment or relationship."

The Confidential Information provision prohibited Reeves from disclosing to anyone or using for his own purposes or for anyone else Harbor America's confidential information, including "trade secrets 'know-how' and other proprietary information and processes" during the Non-Solicitation Period.

*392Reeves and Harbor America subsequently agreed in 2014 to an addendum to the employment agreement that extends the term of the employment agreement and "governs Reeves as an independent contractor, not as an employee." Under the addendum, Reeves was to be paid "as an independent contractor."

Reeves resigned from Harbor America in 2016 and started his own competing company, Harvest Works Consulting, LLC. Reeves subsequently sued Harbor America for breach of contract, alleging that Harbor America had not paid him commissions he was owed under the employment agreement. Harbor America counterclaimed for breach of contract, misappropriation of trade secrets, conversion, and breach of fiduciary duty of loyalty.2

Harbor America alleges that it reviewed Reeves's "emails and other communications" and discovered that "prior to his resignation," Reeves made plans with another Harbor America employee, David Fender, to develop a company akin to Harvest Works. According to Harbor America, "Reeves expressly discussed his partnership with Fender, Fender's involvement in establishing the [new company] and in developing producers and customers." Harbor America further alleges that one of its largest customers left for Harvest Works and "Reeves has solicited Harbor America's business and/or competed against Harbor America in partnership with or indirectly through Fender and Harvest Works."

Reeves filed a motion to dismiss Harbor America's counterclaims under the TCPA, alleging that the counterclaims are based on, relate to, or are in response to Reeves's right to associate with others in that the counterclaims "center upon Reeves's communications with ... Fender as they allegedly promote and pursue their common interest in developing a competing business." Reeves also alleged that the counterclaims must be dismissed because Harbor America could not establish by clear and specific evidence a prima facie case for each element of the claim in question. Reeves sought attorney's fees, costs, and sanctions against Harbor America.

The trial court denied the motion to dismiss before Harbor America responded. In its order, the trial court stated the following in a footnote:

This motion is set for oral argument ... but the court is taking it up now because no oral argument or briefing is required, and further because the motion is being used as an excuse not to participate in discovery ordered by the Court and agreed to by the parties in a binding Rule 11 agreement. The [TCPA] as a matter of law does not allow a party to avoid contractual obligations such as the ones at issue here.

Discussion

Reeves argues that the trial court erred in denying the motion to dismiss in failing to (1) analyze whether Reeves met his initial burden under the TCPA to show that Harbor America's counterclaims relate to the right of association, (2) conclude that Reeves met this burden, and (3) conclude that Harbor America, in not responding to the motion, did not meet its burden to establish a prima facie case on each element of its claims by clear and specific evidence.3

*393The TCPA protects citizens from retaliatory lawsuits that seek to silence or intimidate them on matters of public concern. In re Lipsky , 460 S.W.3d 579, 586 (Tex. 2015) (orig. proceeding); see generally Tex. Civ. Prac. & Rem. Code §§ 27.001 -.011. The statute is an anti-SLAPP law, with "SLAPP" being the acronym for "Strategic Lawsuits Against Public Participation." Fawcett v. Grosu , 498 S.W.3d 650, 654 (Tex. App.-Houston [14th Dist.] 2016, pet. denied). The purpose of the statute is to identify and summarily dispose of lawsuits designed only to chill First Amendment rights, not to dismiss meritorious lawsuits. Lipsky , 460 S.W.3d at 589 ; see also Tex. Civ. Prac. & Rem. Code § 27.002.

The TCPA provides a two-step process to expedite the dismissal of a "legal action" that is "based on, relates to, or is in response to a party's exercise of the right of free speech, right to petition, or right of association." Tex. Civ. Prac. & Rem. Code § 27.003(a). First, the movant seeking dismissal under the TCPA must show "by a preponderance of the evidence that the [nonmovant's] legal action is based on, relates to, or is in response to the [movant]'s exercise of: (1) the right of free speech; (2) the right to petition; or (3) the right of association." Id.

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552 S.W.3d 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeves-v-harbor-am-cent-inc-texapp-2018.