Mesquite Services, LLC, Black Water Rentals, LLC, Ayric Wright, Individually, and Gene Hornbeck, Individually v. Standard E&S, LLC D/B/A Standard Energy Services ( 2020 )

In The
Court of Appeals
Seventh District of Texas at Amarillo
No. 07-19-00440-CV
MESQUITE SERVICES, LLC, BLACK WATER RENTALS, LLC, AYRIC WRIGHT,
INDIVIDUALLY, AND GENE HORNBECK, INDIVIDUALLY, APPELLANTS
V.
STANDARD E&S, LLC D/B/A STANDARD ENERGY SERVICES, APPELLEE
On Appeal from the 99th District Court
Lubbock County, Texas
Trial Court No. 2019-536,645, Honorable William C. Sowder, Presiding
September 15, 2020
OPINION
Before QUINN, C.J., and PARKER and HATCH,1 JJ.
Appellants, Mesquite Services, LLC, Blackwater Rentals, LLC, Ayric Wright, and
Gene Hornbeck, filed this interlocutory appeal of the trial court’s order denying, by
operation of law, appellants’ motions to dismiss claims asserted by appellee, Standard
E&S, LLC d/b/a Standard Energy Services. We affirm in part and reverse in part.
1 Honorable Les Hatch, Judge, 237th District Court, sitting by assignment.
Factual and Procedural Background
Mesquite and Standard are both oilfield services businesses operating in the
Permian Basin and Eastern New Mexico. Both companies haul water from oil and gas
leases and dispose of the water in disposal wells. Blackwater operates an equipment
rental business. Wright is the president and CEO of both Mesquite and Blackwater.
Hornbeck is the Health, Safety, and Environment (HSE) Director for Mesquite. Hornbeck
previously worked for Standard as an Operations Manager for approximately a year and
a half. Prior to Hornbeck’s employment with Standard, he signed a work agreement that
contains a covenant not to compete, clauses prohibiting the solicitation of Standard’s
customers and employees, and a confidentiality agreement.
Several months after Hornbeck began working for Mesquite, Standard sent a
demand letter to Mesquite and Blackwater advising them that former employees of
Standard are subject to a work agreement that includes a covenant not to compete and
making the accusation that certain employees had begun working for Mesquite and
Blackwater in violation of the terms of the work agreement. Wright met with a
representative of Standard and the parties agreed to actions that would comply with the
work agreements. However, a few months after the meeting, Standard filed suit asserting
causes of action for defamation, trade secret misappropriation, tortious interference with
existing contract, tortious interference with prospective business relations, conversion,
liability for civil theft, breach of contract, quantum meruit, breach of fiduciary duty, and
conspiracy.2 Standard also sought injunctive relief. These claims were based on
2Other former employees were named in Standard’s original petition, but these parties were
subsequently nonsuited and are not parties to this appeal.
2
Standard’s allegations that Mesquite and Blackwater conspired to harm Standard by
disparaging its reputation and stealing its confidential and proprietary information,
contractually bound employees, customers, and revenues. Mesquite answered and
asserted a counterclaim for violations of the Texas Uniform Trade Secrets Act. Hornbeck
answered and asserted counterclaims for breach of contract, negligent
misrepresentation, common law fraud, and defamation. Wright and Blackwater
answered. Standard subsequently filed an amended petition that limited its claims to
breach of contract, trade secret misappropriation, tortious interference with existing
contract, conspiracy, and promissory estoppel.
Appellants filed motions to dismiss Standard’s claims pursuant to provisions of the
Texas Citizens Participation Act (TCPA). They attached evidence to their motions,
including the affidavits of Hornbeck and Wright. Standard responded and attached work
agreements that had been signed by former Standard employees as well as affidavits
from current Standard employees and Vincent D’Alise, Standard’s Vice President of
Business Development. Appellants filed a reply with additional affidavits attached.
The trial court held a hearing on appellants’ motion on November 15, 2019. The
parties presented their arguments and the trial court considered the pleadings, including
the motion to dismiss and Standard’s response to the motion, as well as the affidavits
attached to the pleadings. The trial court denied appellants’ motion to dismiss. 3
3The trial court’s denial of the motion to dismiss was not filed until January 14, 2020, which was
more than thirty days after the hearing on the motion was held. Consequently, the motion was overruled
by operation of law on December 14, 2019. See TEX. CIV. PRAC. & REM. CODE ANN. § 27.005(a) (West
2020).
3
Appellants timely filed the instant interlocutory appeal challenging the trial court’s failure
to dismiss Standard’s claims.
By their appeal, appellants present one issue: did the trial court err in denying
appellants’ motion to dismiss filed under the TCPA? Specifically, appellants contend that
the legal actions asserted by Standard are covered by the TCPA because they are based
on, relate to, or were in response to a party’s exercise of the rights of free speech or
association. Appellants further assert that Standard failed to establish by clear and
specific evidence a prima facie case for each element of Standard’s claims. Appellants
also contend that the commercial speech exemption in the TCPA does not apply to
Standard’s claims. Finally, appellants contend that the case should be remanded to the
trial court for it to impose sanctions against Standard and award appellants court costs,
reasonable attorney’s fees, and other expenses incurred in defending against Standard’s
claims.
The Texas Citizens Participation Act (TCPA)
Our review of a ruling on a motion to dismiss filed under the TCPA must start with
examining the scope of the Act as expressed by its language. The TCPA is popularly
known as the Texas Anti-SLAPP statute, which is designed to prevent strategic lawsuits
against public participation. Kawcak v. Antero Res. Corp., 582 S.W.3d 566, 571 (Tex.
App.—Fort Worth 2019, pet. denied). The express purpose of the TCPA is to encourage
and safeguard the constitutional rights of persons to petition, speak freely, associate
freely, and otherwise participate in government to the maximum extent permitted by law
and, at the same time, protect the rights of persons to file meritorious lawsuits for
4
demonstrable injuries. TEX. CIV. PRAC. & REM. CODE ANN. § 27.002 (West 2020);4 see In
re Lipsky, 460 S.W.3d 579, 589 (Tex. 2015) (orig. proceeding) (TCPA provides process
to summarily dispose of lawsuits designed with the sole purpose of chilling First
Amendment rights). To meet these purposes, the legislature codified a set of procedural
mechanisms through which a litigant may require, by motion, a threshold testing of claims
that are deemed to implicate the expressive interests protected by the statute. Kawcak,
582 S.W.3d at 572 (citing Serafine v. Blunt, 466 S.W.3d 352, 369 (Tex. App.—Austin
2015, no pet.) (op. on reh’g) (Pemberton, J., concurring)).
The TCPA’s procedural mechanism consists of a burden of proof that zig-zags as
follows:
Once a motion to dismiss is filed, a burden-shifting mechanism goes into
effect. [In re Lipsky, 460 S.W.3d at 586-87.] First, a defendant moving for
dismissal has the burden to show by a preponderance of the evidence that
the plaintiff filed a “legal action” that is “based on, relates to, or is in response
to” the defendant’s exercise of the right of free speech, the right to petition,
or the right of association. [] §§ 27.003(a) (West 2020),5 27.005(b);
Youngkin v. Hines, 546 S.W.3d 675, 679 (Tex. 2018).
Second, if the defendant satisfies that burden, to avoid dismissal, a plaintiff
must establish by clear and specific evidence a prima facie case for each
essential element of its claim. [] § 27.005(c). The requirement for “clear
and specific evidence” means the plaintiff “must provide enough detail to
show the factual basis for its claim.” [In re] Lipsky, 460 S.W.3d at 590-91.
Third, even if the plaintiff establishes a prima facie case, the defendant can
still obtain dismissal if he “establishes by a preponderance of the evidence
4 Further reference to provisions of the Texas Civil Practice and Remedies Code will be by
reference to “section __” or “§ __.”
5 Amended by Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 2, 2019 Tex. Gen. Laws 684, 685.
The amendment, inter alia, removed the “relates to” language from the description of legal actions covered
by the TCPA. However, the amendment expressly provides that this change in law applies only to a legal
action filed on or after the September 1, 2019 effective date of the amendment. See Act of June 2, 2019,
86th Leg., R.S., ch. 378, § 11, 2019 Tex. Gen. Laws 684, 687. Consequently, further references to section
27.003 will refer to the pre-amended version of the statute.
5
each essential element of a valid defense to the nonmovant’s claim.” []
§ 27.005(d).6
Kawcak, 582 S.W.3d at 572 (quoting Beving v. Beadles, 563 S.W.3d 399, 404 (Tex.
App.—Fort Worth 2018, pet. denied)).
The TCPA sets deadlines for the filing of a motion to dismiss, hearings on the
motion, and the time in which the trial court must rule. §§ 27.003(b), .004 (West 2015),
.005(a). The filing of a motion to dismiss suspends discovery unless the trial court orders
specific and limited discovery upon the showing of good cause. §§ 27.003(c), .006(b)
(West Supp. 2019). In considering a motion to dismiss, the trial court considers “the
pleadings and supporting and opposing affidavits stating the facts on which the liability or
defense is based.” § 27.006(a).7 If, as here, the trial court does not rule on the motion to
dismiss within thirty days after it holds the hearing mandated by section 27.004, the
motion is overruled by operation of law. § 27.005(a).
An accelerated interlocutory appeal is permitted from a trial court order denying a
motion to dismiss under the TCPA but not from an order granting the motion. Moricz v.
Long, No. 06-17-00011-CV, 2017 Tex. App. LEXIS 6678, at *8-9 (Tex. App.—Texarkana
July 20, 2017, no pet.) (mem. op.) (citing §§ 27.008(a) (West 2015), and 51.014(a)(12)
6 Amended by Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 3, 2019 Tex. Gen. Laws 684, 685.
This amendment removed the preponderance of the evidence standard and replaced it with language
requiring the movant to “establish[] an affirmative defense or other grounds on which the moving party is
entitled to judgment as a matter of law.” However, the amendment expressly provides that this change in
law applies only to a legal action filed on or after the September 1, 2019 effective date of the amendment.
See Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 11, 2019 Tex. Gen. Laws 684, 687. Consequently,
further references to section 27.005 will refer to the pre-amended version of the statute.
7 Amended by Act of June 2, 2019, 86th Leg., R.S., ch. 378, §§ 4, 5, 2019 Tex. Gen. Laws 684,
685. This amendment added the requirement that a trial court shall consider evidence the court could
consider under Texas Rule of Civil Procedure 166a in addition to pleadings and affidavits. However, the
amendment expressly provides that this change in law applies only to a legal action filed on or after the
September 1, 2019 effective date of the amendment. See Act of June 2, 2019, 86th Leg., R.S., ch. 378,
§ 11, 2019 Tex. Gen. Laws 684, 687. Consequently, further references to section 27.006 will refer to the
pre-amended version of the statute.
6
(West Supp. 2019)). The trial court is statutorily obligated to award the moving party both
fees and sanctions “if the court orders dismissal of [the] legal action.” § 27.009(a) (West
2020).8
Application of the TCPA to Standard’s Claims
As previously identified, the first step in analyzing a motion to dismiss filed under
the TCPA is to determine whether the defendant met its burden to show by a
preponderance of the evidence that the plaintiff’s legal action is “based on, relates to, or
is in response to” the defendant’s exercise of the right of free speech, the right to petition,
or the right of association. §§ 27.003(a), 27.005(b); Kawcak, 582 S.W.3d at 572. In their
motion to dismiss, appellants asserted that Standard’s claims are based on, relate to, or
are in response to appellants’ exercise of their rights of free speech and association. As
such, we begin our analysis by determining whether appellants met their burden of
proving this connection.
We construe the language of the TCPA and review the issue of whether the
defendant meets this initial burden de novo. Kawcak, 582 S.W.3d at 571; ExxonMobil
Pipeline Co. v. Coleman, 464 S.W.3d 841, 845 (Tex. App.—Dallas 2015), rev’d on other
grounds, 512 S.W.3d 895, 901-02 (Tex. 2017) (per curiam). In interpreting a statute, our
primary objective is to give effect to the legislature’s intent in enacting the statute. City of
Houston v. Bates, 406 S.W.3d 539, 543 (Tex. 2013). We start by reviewing the text of
8
Amended by Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 8, 2019 Tex. Gen. Laws 684, 686.
The amendment makes the award of sanctions discretionary. However, the amendment expressly provides
that this change in law applies only to a legal action filed on or after the September 1, 2019 effective date
of the amendment. See Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 11, 2019 Tex. Gen. Laws 684,
687. Consequently, further references to subsection 27.009 will refer to the pre-amended version of the
statute.
7
the statute and presume the legislature intended what it enacted. In re Elliott, 504 S.W.3d
455, 464 (Tex. App.—Austin 2016, orig. proceeding). The plain meaning of the text is the
best indication of the legislature’s intent, unless a different meaning is supplied by
legislative definition or is apparent from the context, or the plain meaning would lead to
absurd results. Id. at 463.
Appellants contend that Standard’s claims are based on, relate to, or are in
response to appellants’ exercise of their rights to free speech and association. Appellants
indicate that all of Standard’s claims are based on communications by and between
Mesquite and Blackwater, their employees, and potential customers that were made to
collectively express, promote, pursue, or defend common interests. These
communications are matters of public concern because they are about a good, product,
or service in the marketplace. We agree with appellants’ contention regarding the nature
of their associations and communications.
The core of the exercise of both the right of free speech and association is a
“communication.” Elite Auto Body LLC v. Autocraft Bodywerks, Inc., 520 S.W.3d 191,
197-98 (Tex. App.—Austin 2017, pet. dism’d). The TCPA defines communication to
include the making or submitting of a statement or document in any form or medium,
including oral, visual, written, audiovisual, or electronic. § 27.001(1) (West 2020).
The exercise of the right of free speech requires a communication made in
connection with a matter of public concern. § 27.001(3). A communication about a
“matter of public concern” relates to health or safety; environmental, economic, or
community well-being; the government; a public official or figure; or a good, product, or
8
service in the marketplace. § 27.001(7);9 Coleman, 512 S.W.3d at 899. The TCPA does
not require that communications specifically “mention” a matter of public concern or have
more than a “tangential relationship” to such a matter. Coleman, 512 S.W.3d at 900. The
purpose of the Act, as applicable to this analysis, is “to encourage and safeguard the
constitutional rights of persons to . . . speak freely . . . to the maximum extent permitted
by law . . . .” § 27.002.
The TCPA defines the “exercise of the right of association” as people joining
“together to collectively express, promote, pursue, or defend common interests.”
§ 27.001(2).10 The TCPA does not create a right of association. Rather, the purpose of
the Act is “to encourage and safeguard the constitutional rights of persons to . . . associate
freely . . . to the maximum extent permitted by law . . . .” § 27.002.
While the legislature has taken steps to specifically exclude actions arising from
employer-employee relationships that seek recovery for misappropriation of trade secrets
or corporate opportunities from being covered by the TCPA, the amendment affecting
that policy did not become effective prior to the accrual and filing of Standard’s suit. See
Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 9, 2019 Tex. Gen. Laws 684, 684. The
9 Amended by Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 1, 2019 Tex. Gen. Laws 684, 684-
85. The amendment defines a matter of public concern to relate to a “public official, public figure, or other
person who has drawn substantial public attention due to the person's official acts, fame, notoriety, or
celebrity; a matter of political, social, or other interest to the community; or a subject of concern to the
public.” However, the amendment expressly provides that this change in law applies only to a legal action
filed on or after the September 1, 2019 effective date of the amendment. See Act of June 2, 2019, 86th
Leg., R.S., ch. 378, § 11, 2019 Tex. Gen. Laws 684, 687. Consequently, further references to subsection
27.001(7) will refer to the pre-amended version of the statute.
10
Amended by Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 1, 2019 Tex. Gen. Laws 684, 684.
The amendment adds to the definition the limitation that the common interest to be defended must relate
“to a governmental proceeding or a matter of public concern.” However, the amendment expressly provides
that this change in law applies only to a legal action filed on or after the September 1, 2019 effective date
of the amendment. See Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 11, 2019 Tex. Gen. Laws 684,
687. Consequently, further references to subsection 27.001(2) will refer to the pre-amended version of the
statute.
9
amendment of a statute does not affect the operation of the prior version. TEX. GOV’T
CODE ANN. § 311.031(a)(1) (West 2013).
This Court has previously determined that, under the version of the TCPA
applicable to this case, claims like those asserted by Standard are covered because they
are based on or related to appellants’ exercise of their free speech (based on their
discussions with current Standard customers) and association (based on their association
with current Standard customers as well as current and past Standard employees) rights.
In re Krause Landscape Contrs., Inc., 595 S.W.3d 831, 837 (Tex. App.—Amarillo 2020,
no pet.). While the Texas Supreme Court has held that “communications[] with a limited
business audience concerning a private contract dispute[] do not relate to a matter of
public concern under the TCPA,” Creative Oil & Gas, LLC v. Lone Hills Ranch, LLC, 591
S.W.3d 127, 133 (Tex. 2019), we believe that Standard’s claims are not based on
communications with a limited business audience concerning a private contract dispute.
Our sister courts have likewise concluded that claims such as those asserted by Standard
are covered by the TCPA. See Morgan v. Clements Fluids S. Tex., Ltd., 589 S.W.3d 177,
185 (Tex. App.—Tyler 2018, no pet.) (misappropriation of trade secrets claim involves a
communication about a common interest and matter of public concern); Grant v. Pivot
Tech. Solutions, Inc., 556 S.W.3d 865, 880-81 (Tex. App.—Austin 2018, pet. denied)
(allegations of illegal acts designed to steal customers and unfairly compete are “factually
predicated” on communications covered by the TCPA); Abatecola v. 2 Savages Concrete
Pumping, LLC, No. 14-17-00678-CV, 2018 Tex. App. LEXIS 4653, at *18-20 (Tex. App.—
Houston [14th Dist.] June 26, 2018, pet. denied) (mem. op.) (claims of interference with
existing customers and violations of noncompete agreement involve communications
made in connection with a matter of public concern and are, therefore, covered under the
10
TCPA). We have determined that a communication relates to a public concern or
common interest when one party is alleged to have used the proprietary information of
another in such a manner as to afford it an unfair advantage in the marketplace. Tex.
Custom Wine Works, LLC v. Talcott, 598 S.W.3d 380, 388 (Tex. App.—Amarillo 2020, no
pet.) (distinguishing our holding from that in Elite Auto Body, LLC, 520 S.W.3d at 204-
05). Because Standard’s claims are based on communications by and between Mesquite
and Blackwater, their employees, and potential customers and these communications
relate to matters of public concern, we conclude that the TCPA’s dismissal process
applies to Standard’s claims.
Standard contends that many of its complaints do not involve communications but,
rather, involve actions and, as such, are not covered by the TCPA. However, the specific
claims it identifies as not involving communication each directly involve communication
or association. For example, Standard contends that Hornbeck’s alleged tortious
interference with contract does not implicate the constitutional rights protected by the
TCPA. However, Standard’s claim is premised on Hornbeck tortiously interfering with
Standard’s contract by soliciting one of Standard’s existing clients to employ Mesquite.
This implicates Hornbeck’s speech and association rights that relate, as addressed
above, to a matter of public concern. All of Standard’s claims assert that the “actions”
taken by the appellants implicated appellants’ rights of free speech and/or association.
Hornbeck’s Waiver of TCPA Protection
Standard separately contends that Hornbeck waived his right to claim the
protections afforded him by the TCPA by entering into the work agreement with Standard.
While it is true that an individual can waive his constitutional rights by contract, see D.H.
11
Overmyer Co. v. Frick Co., 405 U.S. 174, 185-86, 92 S. Ct. 775, 31 L. Ed. 2d 124 (1972),
the purpose of the TCPA is to encourage and safeguard the constitutional rights of
persons to petition, speak freely, associate freely, and otherwise participate in
government to the maximum extent permitted by law and, at the same time, protect the
rights of persons to file meritorious lawsuits for demonstrable injuries. § 27.002.
Consequently, we believe that the process invoked by the filing of a TCPA motion to
dismiss functions only to require the nonmovant to establish by clear and specific
evidence its prima facie case for each of its claims. The rights waived by Hornbeck do
not include any waiver to challenge the legitimacy of future claims asserted against him
by Standard. We conclude that the rights Hornbeck waived by signing the work
agreement with Standard did not include a waiver of any statutory right to require
Standard to prove the bona fides of any case it subsequently chose to bring against
Hornbeck.11
Whether a movant contractually limited his constitutional rights is not a
consideration under the first step of the TCPA analysis. Morgan, 589 S.W.3d at 185;
Elliott v. S&S Emergency Training Solutions, Inc., 559 S.W.3d 568, 574 (Tex. App.—
Dallas 2017) (mem. op.), rev’d on other grounds, 564 S.W.3d 843, 850 (Tex. 2018). To
meet the threshold requirement, the movant need only show that he exercised a statutory
right under the TCPA. Morgan, 589 S.W.3d at 185 (citing Elliott, 559 S.W.3d at 574).
Because the TCPA requires only that the movant establish that they exercised a statutory
11 We do recognize that the work agreement and its waivers of Hornbeck’s rights may be relevant
in Standard’s effort to present clear and specific evidence of a prima facie case for each essential element
of its claims.
12
right under the TCPA, we do not address Hornbeck’s work agreement in determining
whether the TCPA covers Standard’s claims. Id. at 185-86.
Standard’s Proof of its Prima Facie Case
Because Standard’s claims are based on or related to appellants’ exercise of their
free speech and association rights, we must now determine whether Standard met its
burden to show by clear and specific evidence a prima facie case for “each essential
element of the claim in question.” § 27.005(c). “In determining whether a legal action
should be dismissed . . ., the court shall consider the pleadings and supporting and
opposing affidavits stating the facts on which the liability or defense is based.”
§ 27.006(a).
A prima facie showing generally “requires only the ‘minimum quantum of evidence
necessary to support a rational inference that the allegation of fact is true.’” In re E.I.
DuPont de Nemours & Co., 136 S.W.3d 218, 223 (Tex. 2004) (orig. proceeding) (quoting
Tex. Tech Univ. Health Scis. Ctr. v. Apodaca, 876 S.W.2d 402, 407 (Tex. App.—El Paso
1994, writ denied)). A prima facie case refers to an amount of evidence sufficient to
establish a given fact if it is not rebutted or contradicted. In re Lipsky, 460 S.W.3d at 590.
Direct evidence of damages is not required, but the evidence must be such as to allow a
rational inference that some damages naturally flowed from the defendant’s conduct. See
id. at 591-92.
“Clear and specific evidence” of each essential element of a claim is more than
“mere notice pleading.” Id. at 590. Stated another way, “general allegations that merely
recite the elements of a cause of action . . . will not suffice.” Id. at 590-91. Rather, the
nonmovant bears the burden to “provide enough detail to show the factual basis for its
13
claim.” Id. at 591. Clear and specific evidence has been described as evidence that is
“unaided by presumptions, inferences, or intendments.” Rehak Creative Servs., Inc. v.
Witt, 404 S.W.3d 716, 726 (Tex. App.—Houston [14th Dist.] 2013, pet. denied),
disapproved on other grounds by, In re Lipsky, 460 S.W.3d at 587-88. Conclusory
statements and bare, baseless opinions are not probative and do not meet the
requirement of clear and specific evidence. In re Lipsky, 460 S.W.3d at 592-93; see
Nichols v. Lightle, 153 S.W.3d 563, 570-71 (Tex. App.—Amarillo 2004, pet. denied) (an
affidavit that does not contain specific factual bases for the affiant’s conclusions does not
constitute evidence).
We consider evidence favorable to the nonmovant in determining whether the
nonmovant met his burden of establishing a prima facie case under the TCPA.
Buckingham Senior Living Cmty., Inc. v. Washington, No. 01-19-00374-CV, 2020 Tex.
App. LEXIS 4230, at *9 (Tex. App.—Houston [1st Dist.] June 4, 2020, no pet. h.); see
West v. Quintanilla, 573 S.W.3d 237, 243 n.9 (Tex. 2019) (“[Movant] vigorously disputes
many of [nonmovant]’s factual allegations, but at this point we must decide only whether
[nonmovant] has established a prima facie case by clear and specific evidence . . . . A
finding that [nonmovant] has met his TCPA burden does not establish that his allegations
are true.”); D Magazine Partners, L.P. v. Rosenthal, 529 S.W.3d 429, 440 & n.9 (Tex.
2017) (refusing to consider TCPA movant’s rebuttal evidence in determining whether
nonmovant established prima facie case, stating that although movant “disputes
[nonmovant’s factual assertion,] . . . at this stage of the proceedings we assume its truth.”).
14
Breach of Contract Claim
Standard brought breach of contract claims against appellants. The elements of
a breach of contract claim requires the plaintiff to show that (1) a valid contract exists; (2)
performance or tendered performance by the plaintiff; (3) defendant breached the
contract; and (4) plaintiff suffered damages as a result of plaintiff’s breach. Domingo v.
Mitchell, 257 S.W.3d 34, 39 (Tex. App.—Amarillo 2008, pet. denied). Appellants do not
dispute that Standard established a prima facie case of the first two elements.
Standard contends that it presented clear and specific evidence of breach by
Hornbeck because he went to work for a competitor in a role that is in direct competition
with Standard in violation of his noncompete agreement with Standard. According to
correspondence between Standard and Mesquite, Standard expressly indicated that it
did not view Hornbeck working in a safety position with Mesquite as being in a competitive
role. But, after Hornbeck was employed by Mesquite in 2019, Standard discovered
Hornbeck’s LinkedIn page indicated that he was working as yard manager for Mesquite.
Because this is the position Hornbeck held for Standard, his holding the same position
for Mesquite would be in direct competition with Standard. Considering the evidence
favorable to Standard, we conclude that Standard has provided clear and specific
evidence to state a prima facie claim for breach of contract against Hornbeck if this
evidence is not rebutted or contradicted.12 See In re Lipsky, 460 S.W.3d at 590.
12 In his affidavit, Wright explains that Hornbeck’s LinkedIn page had not been updated since his
previous employment with Mesquite and that Hornbeck has been employed as the HSE Director since his
return to Mesquite in 2019. Hornbeck also attests that he has worked exclusively as the HSE Director since
his employment by Standard in April of 2019. Finally, the affidavit of Jerry Mathews, Production Supervisor
for Spur Energy Partners, LLC, indicates that Hornbeck attended a meeting called by Spur “as the safety
person for Mesquite Services.” While this evidence makes a compelling case against Standard’s claim that
Hornbeck breached his work agreement, at this point we must decide only whether Standard has
established a prima facie case by clear and specific evidence. West, 573 S.W.3d at 243 n.9; D Magazine
15
Standard also contends that it presented clear and specific evidence of breach by
all appellants due to Hornbeck’s solicitation of Standard’s customers, specifically Spur
Energy Partners. Standard attempts to establish this solicitation through the affidavit of
D’Alise which states, “In mid[-]June of 2019, while legally bound by Standard’s non-
compete/non-solicitation [agreement], I personally witnessed Gene Hornbeck soliciting
Standard’s customers, Spur Energy Partners, on behalf of Mesquite.” While appellants
presented significant evidence in negation of this allegation,13 we conclude that this
statement by D’Alise is not clear and specific evidence that appellants breached a
contract by trying to solicit business from Standard customers. First, nothing in this
statement, even if accepted as true, identifies how Mesquite and Blackwater breached a
contract since these entities were under no contractual obligation to Standard. Second,
D’Alise does not identify any of the facts upon which he based his conclusion that
Hornbeck solicited Spur’s business. See In re Lipsky, 460 S.W.3d at 592-93; Nichols,
153 S.W.3d at 170-71. Because D’Alise’s unsupported statement amounts to nothing
more than a conclusory statement, it is not probative and does not meet the requirement
of clear and specific evidence. In re Lipsky, 460 S.W.3d at 592-93.
As for the element of damages caused by Hornbeck’s alleged breach of contract,
Standard included Hornbeck’s work agreement in its evidence in response to appellants’
Partners, L.P., 529 S.W.3d at 440 & n.9. A finding that Standard has met its TCPA burden does not
establish that its allegations are true. West, 573 S.W.3d at 243 n.9.
13 Appellants presented the affidavit of the Production Supervisor for Spur, Mathews, in which he
attested that he called a meeting with representatives of companies with whom Spur had been doing
business and that Hornbeck attended as Mesquite’s safety person. Mathews stated that Hornbeck did not
solicit Spur’s business for Mesquite at that meeting and that, “[n]o actions of Gene Hornbeck or any other
Mesquite Services employee caused Spur Energy to make any business decisions with regard to who they
would use to provide services to them.” While this evidence is compelling regarding whether appellants
breached a contract by soliciting Spur Energy’s business, at this point we must decide only whether
Standard has established a prima facie case by clear and specific evidence. West, 573 S.W.3d at 243 n.9;
D Magazine Partners, L.P., 529 S.W.3d at 440 & n.9.
16
motion to dismiss. This work agreement provides for liquidated damages in the amount
of $1,000 per day that Hornbeck violates the agreement. We conclude that this evidence
is clear and specific evidence to state a prima facie claim for damages caused by
Hornbeck’s breach of contract if not rebutted or contradicted. See id. at 590.
For the foregoing reasons, we conclude that Standard presented clear and specific
evidence sufficient to state a prima facie case of breach of contract against Hornbeck for
his alleged violation of the covenant not to compete found in the work agreement between
Hornbeck and Standard. However, we conclude that Standard did not present clear and
specific evidence to state a prima facie claim for breach of contract against all appellants
for violation of the non-solicitation clause of the work agreement.
Misappropriation of Trade Secrets
Standard also brought a claim against appellants for misappropriation of trade
secrets under the Texas Uniform Trade Secrets Act. See §§ 134A.001-.008 (West 2019).
The elements of a claim of misappropriation of trade secrets require proof that (1) a trade
secret existed, (2) the trade secret was acquired through breach of a confidential
relationship or through other improper means, (3) the secret was utilized by the defendant
without the plaintiff’s authorization, and (4) plaintiff was injured as a result. Tex. Integrated
Conveyor Sys., Inc. v. Innovative Conveyor Concepts, Inc., 300 S.W.3d 348, 366-67 (Tex.
App.—Dallas 2009, pet. denied) (op. on reh’g).
Standard’s evidence in support of its claim that appellants misappropriated trade
secrets is not clear and specific evidence of a prima facie case because it wholly fails to
establish that Standard took any efforts to protect its alleged trade secrets regarding who
it employs and the identity of its customers. See Rugen v. Interactive Business Sys., 864
17
S.W.2d 548, 552 (Tex. App.—Dallas 1993, no pet.) (“When an effort is made to keep
material important to a particular business from competitors, trade secret protection will
be available.”).
However, even beyond this deficit, Standard’s evidence essentially paints a picture
that multiple employees of Standard quit and went to work for Mesquite or Blackwater.
The simple fact that Standard employees chose to work for Mesquite or Blackwater does
not present a prima facie case of misappropriation of trade secrets. Standard presented
evidence that one customer contacted Standard to inform it that he was going to have
Mesquite haul his water rather than continuing to use Standard. But this evidence does
not indicate that Mesquite used proprietary information obtained from Standard to
persuade this customer to switch water haul providers. Jack Yates, a Standard manager,
attested that he “learned” of instances when a former Standard employee made efforts to
recruit Standard trucking managers. However, the only factual predicate upon which
Yates bases his conclusion is the supposed recruitment of David Clay Harris. Notably,
Yates’s affidavit expressly states that Harris denied being recruited by Mesquite. Finally,
Standard points to D’Alise’s affidavit which states that he witnessed Hornbeck’s alleged
solicitation of Spur. However, as discussed above, this evidence is conclusory and,
therefore, is not probative. See In re Lipsky, 460 S.W.3d at 592-93; Nichols, 153 S.W.3d
at 170-71. Certainly, such a conclusory allegation is insufficient to establish a claim for
misappropriation of trade secrets by Mesquite and Blackwater. Consequently, we
conclude that Standard did not present clear and specific evidence to establish that
appellants misappropriated Standard’s trade secrets.
18
Tortious Interference with Existing Contract
Standard asserted a claim against appellants for tortious interference with existing
contract. To establish a claim for tortious interference with existing contract, a plaintiff
must show that (1) it had a valid contract, (2) defendant willfully and intentionally interfered
with that contract, (3) the interference proximately caused plaintiff injury, and (4) plaintiff
suffered actual damage or loss. Cmty. Health Sys. Prof’l Servs. Corp. v. Hansen, 525
S.W.3d 671, 689 (Tex. 2017).
As above, Standard’s claim of tortious interference rests on anecdotal statements
that essentially boil down to Standard’s suspicion that Mesquite and Blackwater have
recruited Standard employees for the purpose of soliciting Standard customers to become
Mesquite or Blackwater customers. Nothing in the evidence presented by Standard
specifies any factual basis for its conclusions that Mesquite and Blackwater were soliciting
Standard employees or customers. As such, this constitutes no evidence. See In re
Lipsky, 460 S.W.3d at 592-93; Nichols, 153 S.W.3d at 570-71.
Standard claims that four former employees of Standard went to work for Mesquite
and Blackwater and that each of these former employees were solicited in violation of
their work agreements with Standard. However, Standard does not identify any details
as to how these individuals were solicited nor that any solicitation was at the direction of
Mesquite and Blackwater. In an effort to provide some detail, Standard includes a
handwritten statement from a Blake Roberson that indicates that, in April of 2019, a former
Standard employee and current Mesquite employee offered Roberson a “pump truck” that
would be ready by the end of the month. However, nothing in this statement reflects that
any solicitation was being directed by Mesquite or Blackwater. In fact, the statement does
19
not even explicitly indicate that Roberson was being solicited with a “pump truck” of
Mesquite’s or Blackwater’s. We also note that there is nothing authenticating this
statement since it was not supported by an affidavit from Roberson.
Based on the evidence presented, we conclude that Standard did not present clear
and specific evidence to establish that appellants tortiously interfered with any existing
contract.
Conspiracy
Standard asserted a claim for conspiracy against all appellants. To establish a
claim for civil conspiracy, a plaintiff must show that: (1) a combination of two or more
persons, (2) seeking to accomplish an object or course of action, (3) reach a meeting of
the minds, (4) and commit one or more unlawful acts, (5) which is the proximate cause of
damages. First United Pentecostal Church of Beaumont v. Parker, 514 S.W.3d 214, 222
(Tex. 2017). Civil conspiracy is a “derivative tort,” meaning “a defendant’s liability for
conspiracy depends on participation in some underlying tort for which the plaintiff seeks
to hold at least one of the named defendants liable.” Warner Bros. Entm’t v. Jones, 538
S.W.3d 781, 813-14 (Tex. App.—Austin 2017), aff’d by, No. 18-0068, 2020 Tex. LEXIS
397 (Tex. May 8, 2020) (quoting Tilton v. Marshall, 925 S.W.2d 672, 681 (Tex. 1996)
(orig. proceeding)).
Standard’s claim of civil conspiracy is premised on the underlying torts of
misappropriation of trade secrets and tortious interference with existing contracts. As
addressed above, Standard failed to present clear and specific evidence to establish a
prima facie case of either misappropriation of trade secrets or tortious interference with
20
existing contract. Consequently, such claims cannot be the underlying torts necessary to
support Standard’s civil conspiracy claim.
Standard also asserts a claim that appellants committed a civil conspiracy to
breach fiduciary duties owed by the former employees to Standard. The elements of a
breach of fiduciary duty claim are: (1) a fiduciary relationship existed between the plaintiff
and the defendant; (2) the defendant breached its fiduciary duty; and (3) the breach
resulted in injury to the plaintiff or benefit to the defendant. Anderton v. Cawley, 378
S.W.3d 38, 51 (Tex. App.—Dallas 2012, no pet.).
The work agreements clearly created a fiduciary duty that the former Standard
employees owed Standard. However, again, Standard bases its claims that its former
employees breached this fiduciary duty on their bare assertions that these people used
confidential information to solicit Standard’s customers and employees. Standard even
acknowledges that its claim for conspiracy to commit breach of fiduciary duty factually
overlaps with its claims for misappropriation of trade secrets, tortious interference with
existing contract, and breach of contract. We have previously addressed each of these
claims and concluded that Standard has only met its burden to provide clear and specific
evidence of a prima facie case for its claim of breach of contract relating solely to
Hornbeck individually. And, even as to that claim, Standard specifies that its fiduciary
duty claim is premised on the non-disclosure and non-solicitation provisions of the work
agreement rather than the non-competition provision for which we concluded that
Standard has met its burden under the TCPA. Consequently, we conclude that Standard
did not present clear and specific evidence to establish its prima facie claim that
appellants were engaged in a civil conspiracy.
21
Promissory Estoppel
Finally, Standard asserted a claim for promissory estoppel. The elements of a
claim of promissory estoppel are: (1) defendant made a promise to plaintiff, (2) plaintiff
reasonably and substantially relied on the promise to its detriment, and (3) plaintiff’s
reliance was foreseeable to defendant. Henry Schein, Inc. v. Stromboe, 102 S.W.3d 675,
686 n.25 (Tex. 2002).
Standard’s claim of promissory estoppel is based on Wright’s alleged promise that
Mesquite and Blackwater would honor the former Standard employees’ work agreements
and not allow unlawful competition or solicitation of Standard’s employees or customers.
While we have previously determined that Standard stated a prima facie case that
Hornbeck may have violated the non-competition clause of his work agreement, we have
not found there to be clear and specific evidence that Mesquite or Blackwater has been
shown to have encouraged any individuals to violate the covenants in their work
agreements with Standard.14 Further, D’Alise characterized the promise as follows: “It
was my understanding that . . . Mesquite [and] Blackwater[] would honor Standard’s Work
Agreement and not solicit Standard’s managers.” Such an “understanding” does not
appear to be “an actual promise” that is “sufficiently specific and definite so that it would
be reasonable and justified for the promisee to rely on it as a commitment to future action.”
Davis v. Tex. Farm Bureau Ins., 470 S.W.3d 97, 108 (Tex. App.—Houston [1st Dist.]
14 Appellants presented the affidavit of Wright explaining that Mesquite and Blackwater never asked
any former Standard employee to disclose any confidential information regarding Standard or its customers,
specifically informed those former Standard employees not to do anything that would be in violation of their
agreements with Standard, and requested Standard inform Mesquite and Blackwater if Standard heard of
any former employee taking any action that it believed to be in violation of the work agreement. While this
evidence tends to refute Standard’s allegations, at this point we must decide only whether Standard has
established a prima facie case by clear and specific evidence. West, 573 S.W.3d at 243 n.9; D Magazine
Partners, L.P., 529 S.W.3d at 440 & n.9.
22
2015, no pet.). Thus, we conclude that Standard failed to present clear and specific
evidence to establish a prima facie case that Mesquite and Blackwater made a promise
to Standard that estopped them from taking an action that they subsequently took.
Conclusion
After reviewing the evidence favorable to Standard, see Buckingham Senior Living
Community, Inc., 2020 Tex. App. LEXIS 4230, at *9, we conclude that Standard has
presented clear and specific evidence sufficient to establish a prima facie case that
Hornbeck breached the non-compete portion of his work agreement by working for
Mesquite in a competitive position. However, as to all other claims asserted by Standard,
we conclude that it has failed to present clear and specific evidence that is sufficient to
state a prima facie claim.
The Commercial Speech Exemption
Standard also contends that their claims are not subject to the TCPA because they
are exempted by the statute’s commercial speech exception. See § 27.010(b) (West
2020).15
The commercial speech exemption applies to certain communications related to a
good, product, or service in the marketplace. Castleman v. Internet Money Ltd., 546
S.W.3d 684, 690 (Tex. 2018) (per curiam). These communications are those that are not
made as a protected exercise of free speech but, rather, as commercial speech that
15 Amended by Act of June 2, 2019, 86th Leg., R.S., ch. 378, § 9, 2019 Tex. Gen. Laws 684, 686.
The amendment moves subsection (b) to (a)(2) and adds multiple ways for the exemption to be invoked.
However, the amendment expressly provides that this change in law applies only to a legal action filed on
or after the September 1, 2019 effective date of the amendment. See Act of June 2, 2019, 86th Leg., R.S.,
ch. 378, § 11, 2019 Tex. Gen. Laws 684, 687. Consequently, further references to subsection 27.010 will
refer to the pre-amended version of the statute.
23
simply proposes a commercial transaction. Id. The Texas Supreme Court has identified
the following elements that indicate when the exemption applies:
(1) the defendant was primarily engaged in the business of selling or leasing
goods,
(2) the defendant made the statement or engaged in the conduct on which
the claim is based in the defendant's capacity as a seller or lessor of those
goods or services,
(3) the statement or conduct at issue arose out of a commercial transaction
involving the kind of goods or services the defendant provides, and
(4) the intended audience of the statement or conduct were actual or
potential customers of the defendant for the kind of goods or services the
defendant provides.
Id. at 688. The burden of establishing the exemption is on the party seeking it. Toth v.
Sears Home Improvement Prods., Inc., 557 S.W.3d 142, 152 (Tex. App.—Houston [14th
Dist.] 2018, no pet.).
Standard’s claim that the commercial speech exemption applies to its claims is
based on its allegation that the appellant companies solicited Standard employees to
come work for them. Then, according to Standard, these employees communicated with
Standard’s customers attempting to persuade the customers to switch providers. Initially,
we construe the exemption not to apply to any effort on the part of Mesquite and
Blackwater to solicit Standard’s employees to change jobs since these communications
would not have been made in appellants’ capacity as a seller or lessor of those goods,
are not the kind of goods appellants provide, and are not communications with actual or
potential customers of Standard. See Castleman, 546 S.W.3d at 688. Further and as
has been discussed extensively above, as Standard has failed to establish a prima facie
case that Mesquite and Blackwater used information derived from former Standard
24
employees to solicit Standard’s customers, Standard has not met its burden to show that
the commercial speech exemption applies to Standard’s claims.
Attorney’s Fees and Sanctions
Finally, appellants contend that the trial court erred in failing to award them
attorney’s fees and sanctions. Because we agree that the trial court erred in failing to
dismiss all but one of Standard’s claims, we agree that it erred in not awarding attorney’s
fees and sanctions to appellants.
The TCPA mandates an award of court costs, reasonable attorney’s fees, other
expenses incurred in defending against the legal action, and sanctions if the TCPA is
determined to apply and the plaintiff fails to provide clear and specific evidence of the
essential elements of its claims. § 27.009(a)(1), (2).16 Because we have concluded
above that the trial court erred in denying appellants’ motions to dismiss all of Standard’s
claims other than its claim for breach of contract brought against Hornbeck, individually,
we must conclude that the trial court also erred in refusing to award appellants their court
costs, reasonable attorney’s fees, and other expenses incurred in defending against
Standard’s suit. § 27.009(a)(1). Additionally, we conclude that the trial court erred in
failing to award sanctions against Standard. § 27.009(a)(2). We remand the case to the
trial court to determine the appropriate award of damages and costs to be made in
appellants’ favor.
16 See footnote 6.
25
Conclusion
For the foregoing reasons, we affirm the trial court’s denial of appellants’ motion to
dismiss Standard’s claim for breach of contract asserted against Hornbeck individually.
As to all other claims, we reverse the trial court’s denial of appellants’ motion to dismiss.
We remand the case to the trial court with directions for it to dismiss all of Standard’s
claims other than the breach of contract claim against Hornbeck, enter an appropriate
award of attorney’s fees and costs in favor of appellants, and impose a monetary sanction
against Standard. See § 27.009(a)(1), (2).
Judy C. Parker
Justice
Hatch, J., concurring.
26