Apache Corporation and APA Corporation v. Apollo Exploration, LLC Cogent Exploration, Ltd., Co. And Sellmoco, LLC ( 2023 )


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  • Opinion filed May 18, 2023
    In The
    Eleventh Court of Appeals
    __________
    No. 11-21-00295-CV
    __________
    APACHE CORPORATION AND APA CORPORATION,
    Appellants
    V.
    APOLLO EXPLORATION, LLC; COGENT EXPLORATION,
    LTD., CO.; AND SELLMOCO, LLC, Appellees
    On Appeal from the 385th District Court
    Midland County, Texas
    Trial Court Cause No. CV57872
    MEMORANDUM OPINION
    This is an interlocutory appeal from the denial of a motion to dismiss brought
    under the Texas Citizens Participation Act (TCPA). See TEX. CIV. PRAC. & REM.
    CODE ANN. §§ 27.001–.011 (West 2020). In this case, we consider whether a
    fraudulent transfer claim is “based on, or in response to” Appellants’ exercise of free
    speech, when the facts supporting the claim were disclosed in a press release that
    was issued by Appellants. See id. §§ 27.003(a), .005(b). We hold that the claim is
    based on and in response to the conduct of Appellants in transferring assets, rather
    than any exercise of free speech in the press release. On that basis, we affirm the
    trial court’s denial of Appellants’ motion to dismiss under the TCPA.
    Background Facts
    This appeal is the latest development in litigation that spans nearly a decade.
    In 2014, Apollo Exploration, LLC; Cogent Exploration, Ltd., Co.; and SellmoCo,
    LLC (collectively, Appellees) sued Apache Corporation for breach of a purchase
    and sale agreement that involved 109 oil and gas leases. As trial approached, the
    trial court struck all of Appellees’ expert witnesses on damages and rendered a take-
    nothing judgment in favor of Apache. The trial court also awarded $4,800,000 in
    attorneys’ fees to Apache. An appeal to this court followed. See Apollo Expl.,
    LLC v. Apache Corp., 
    631 S.W.3d 502
    , 514 (Tex. App.—Eastland 2021), rev’d in
    part, No. 21-0587, 
    2023 WL 3134243
     (Tex. Apr. 28, 2023). We will refer to our
    prior opinion and the appeal from which it arose as “Apollo I.” As reflected in our
    case citation to Apollo I, the Texas Supreme Court recently reversed in part our
    opinion in Apollo I and remanded the case back to us for further proceedings. 
    2023 WL 3134243
    , at *18.
    The press release at the center of the TCPA claim was issued on January 4,
    2021, while the appeal of Apollo I was pending in this court. In the press release,
    Apache announced a reorganization. The reorganization included a transfer of
    Apache’s assets in Suriname and the Dominican Republic to Appellant APA
    Corporation. The press release also included a statement from John J. Christmann
    IV, Apache’s chief executive officer and president. Christmann indicated that the
    reorganization would “modernize our operating and legal structure” and that the use
    2
    of a holding company “offers advantages in risk management.” Apache later issued
    a second press release on March 1, 2021, announcing that the reorganization had
    been completed.
    We issued our opinion in Apollo I in June 2021, reversing in part and
    remanding to the trial court for the determination of several causes of action. 631
    S.W.3d at 545. Soon thereafter, on August 17, 2021, Appellees filed the lawsuit
    against Apache and APA that is the subject of this appeal. The lawsuit, which
    repeatedly references the January 4 press release in its statement of facts, asserts a
    cause of action under the Texas Uniform Fraudulent Transfer Act (TUFTA), alleging
    that the reorganization made it impossible, or at least more difficult, to reach the
    Suriname and Dominican Republic assets in order to satisfy a judgment against
    Apache. See TEX. BUS. & COM. CODE ANN. §§ 24.001–.013 (West 2023).
    Apache and APA answered and filed a motion to dismiss. Although most of
    the motion to dismiss was focused on a request for dismissal under Rule 91a of the
    Texas Rules of Civil Procedure, the motion also, in a single paragraph, generally
    sought relief under the TCPA, indicating that “in attempting to impose liability on
    Apache for its communications with its shareholders, Plaintiffs are infringing upon
    Apache’s right to speak freely with its shareholders and the investing public.” See
    TEX. R. CIV. P. 91a.
    The trial court heard the motion to dismiss on December 3, 2021. The parties
    directed the bulk of their attention at the hearing on Appellants’ request for relief
    under Rule 91a. The trial court denied the motion to dismiss, and this appeal from
    the TCPA denial followed. See TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(12)
    (West Supp. 2022).
    3
    Analysis
    In their sole issue, Appellants assert that the trial court erred in denying their
    motion to dismiss under the TCPA. One purpose of the TCPA is to protect citizens
    from retaliatory lawsuits meant to intimidate or silence them on matters of public
    concern. Dallas Morning News, Inc. v. Hall, 
    579 S.W.3d 370
    , 376 (Tex. 2019); In
    re Lipsky, 
    460 S.W.3d 579
    , 584 (Tex. 2015) (orig. proceeding). The Legislature
    enacted the TCPA “to safeguard ‘the constitutional rights of persons to petition,
    speak freely, associate freely, and otherwise participate in government to the
    maximum extent permitted by law’” while, at the same time, protecting a person’s
    right “to file meritorious lawsuits for demonstrable injury.”         Kinder Morgan
    SACROC, LP v. Scurry Cnty., 
    622 S.W.3d 835
    , 847 (Tex. 2021) (quoting CIV. PRAC.
    & REM. § 27.002).
    To effectuate this dual purpose, the TCPA employs a three-step process to
    determine whether a lawsuit or claim is subject to dismissal. Montelongo v. Abrea,
    
    622 S.W.3d 290
    , 296 (Tex. 2021). First, the movant must demonstrate by a
    preponderance of the evidence that a legal action is based on, or in response to, the
    movant’s exercise of one of three protected rights: the right of free speech, the right
    to petition, or the right of association. CIV. PRAC. & REM. §§ 27.003(a), .005(b); see
    also Montelongo, 622 S.W.3d at 296. If the movant makes this showing, the burden
    shifts to the nonmovant to establish by “clear and specific evidence” a prima facie
    case for each essential element of the claim in question. CIV. PRAC. & REM.
    § 27.005(c); Montelongo, 622 S.W.3d at 296. Finally, even if the nonmovant meets
    that burden, the trial court is required to dismiss the legal action if the movant
    establishes “an affirmative defense or other grounds on which the moving party is
    entitled to judgment as a matter of law.” CIV. PRAC. & REM. § 27.005(d).
    4
    We review de novo the denial of a TCPA motion to dismiss. Rossa v.
    Mahaffey, 
    594 S.W.3d 618
    , 624 (Tex. App.—Eastland 2019, no pet.). Whether the
    TCPA applies to a particular claim is a question of statutory construction and is also
    reviewed de novo. Youngkin v. Hines, 
    546 S.W.3d 675
    , 680 (Tex. 2018).
    Did Appellants Preserve the Issue?
    Appellees contend that Appellants failed to preserve their TCPA issue for
    appeal because they never mentioned “the issue of whether the fraudulent transfer
    action was based on or in response to an exercise of the right to free speech” in the
    trial court.1 A party may not claim that the TCPA applies to a protected right on
    appeal if they did not also rely upon the same protected right in the trial court.
    Caliber Oil & Gas, LLC v. Midland Visions 2000, 
    591 S.W.3d 226
    , 238 (Tex.
    App.—Eastland 2019, no pet.); Rossa, 594 S.W.3d at 626.
    In this case, Appellants devoted only a single paragraph of their motion to
    dismiss to the TCPA. However, that paragraph alleges, among other things, that
    Appellees “are infringing upon Apache’s right to speak freely with its shareholders
    and the investing public.” While this allegation does not track the statutory language
    word-for-word, it is sufficient to raise the issue of whether Appellants’ protected
    right to free speech has been affected by the fraudulent transfer claim. See Adams v.
    Starside Custom Builders, LLC, 
    547 S.W.3d 890
    , 896 (Tex. 2018) (“Rules of error
    preservation should not be applied so strictly as to unduly restrain appellate courts
    from reaching the merits of a case.”). We will therefore address the TCPA issue on
    the merits.
    1
    Appellees further assert that Appellants failed to preserve error on the issue of whether the subject
    of the press release was “a matter of public concern,” an element that supports the existence of the protected
    right of free speech. See CIV. PRAC. & REM. §§ 27.003(a), 27.001(3) and (7). Because we do not reach the
    question of whether the press release constitutes free speech under the TCPA, we do not address this
    argument.
    5
    Did Appellants Establish a Nexus?
    As their initial burden under the TCPA, Appellants are required to establish a
    nexus between the rights protected by the statute and Appellees’ claims. Grant v.
    Pivot Tech. Sols., Ltd., 
    556 S.W.3d 865
    , 879 (Tex. App.—Austin 2018, pet. denied);
    see also Dyer v. Medoc Health Servs., LLC, 
    573 S.W.3d 418
    , 428–29 (Tex. App.—
    Dallas 2019, pet. denied). To do so, they must show that their claim is “factually
    predicated on the alleged conduct that falls within the scope of [the] TCPA’s
    definition of ‘exercise of the right of free speech,’ petition or association.” See
    Grant, 556 S.W.3d at 879; Sloat v. Rathbun, 
    513 S.W.3d 500
    , 504 (Tex. App.—
    Austin 2015, pet. dism’d) (concluding that any activities by the movant “that are not
    a factual predicate for [the nonmovant’s] claims are simply not pertinent to the
    inquiry” of whether the TCPA applies to the claims); see also Enter. Crude GP
    LLC v. Sealy Partners, LLC, 
    614 S.W.3d 283
    , 296 (Tex. App.—Houston [14th Dist.]
    2020, no pet.); Porter-Garcia v. Travis Law Firm, P.C., 
    564 S.W.3d 75
    , 85 (Tex.
    App.—Houston [1st Dist.] 2018, pet. denied); Cavin v. Abbott, 
    545 S.W.3d 47
    , 65
    (Tex. App.—Austin 2017, no pet.).
    After the TCPA was enacted, the Texas judicial system experienced a
    groundswell of claims making use of the TCPA in novel ways. See ML Dev, LP v.
    Ross Dress for Less, Inc., 
    649 S.W.3d 623
    , 626 (Tex. App.—Houston [1st Dist.]
    2022, pet. denied). The TCPA was then amended in 2019 in an effort to tighten its
    language “so that it could no longer be used improperly as a litigation tactic to thwart
    its purpose.” Laura Lee Prather & Robert T. Sherwin, The Changing Landscape of
    the Texas Citizens Participation Act, 52 TEX. TECH L. REV. 163, 165 (2020); see Act
    of May 17, 2019, 86th Leg., R.S., ch. 378, 
    2019 Tex. Gen. Laws 684
    .
    One of the more significant changes was a narrowing of the categories of
    connections that must be demonstrated in order to meet the nexus requirement. See
    6
    ML Dev, 649 S.W.3d at 626. Prior to the amendment, a movant was required to
    establish that a claim against it was “based on, relate[d] to, or . . . in response to” the
    movant’s exercise of a protected right. CIV. PRAC. & REM. § 27.005(b) (old version);
    ML Dev, 649 S.W.3d at 626. The amendment removed language which allowed a
    movant to show that the action in question “relates to” the movant’s exercise of a
    protected right, which was the most expansive of the three categories of connections.
    CIV. PRAC. & REM. § 27.005(b) (current version); ML Dev, 649 S.W.3d at 626;
    Robert B. James, DDS, Inc. v. Elkins, 
    553 S.W.3d 596
    , 604 (Tex. App.—San
    Antonio 2018, pet. denied) (characterizing “relates to” as a “broader qualifying
    phrase”). The statute now requires a movant to demonstrate that the action is either
    “based on” or is “in response to” an exercise of a protected right. CIV. PRAC. & REM.
    §§ 27.003(a), .005(b). Thus, the amendment now requires TCPA movants “to
    establish a closer nexus between the claims against them and the communications
    they point to as their exercise of protected rights.” ML Dev, 649 S.W.3d at 629.
    In determining whether Appellants have satisfied the burden of proving that
    their claims fall within the scope of the TCPA, we consider the pleadings and
    affidavits that state the facts on which liability is based to determine the true nature
    of the dispute. See CIV. PRAC. & REM. § 27.006(a); David H. Arrington Oil & Gas
    Operating, LLC v. Wilshusen, 
    630 S.W.3d 184
    , 190 (Tex. App.—Eastland 2020, pet.
    denied); see also Clayton Mountain, LLC v. Ruff, No. 11-20-00034-CV, 
    2021 WL 3414754
    , at *5 (Tex. App.—Eastland Aug. 5, 2021, no pet.) (mem. op.). The
    plaintiff’s pleading is the “best and all-sufficient evidence of the nature of the
    action.” Hersh v. Tatum, 
    526 S.W.3d 462
    , 467 (Tex. 2017) (quoting Stockyards
    Nat’l Bank v. Maples, 
    95 S.W.2d 1300
    , 1302 (Tex. [Comm’n Op.] 1936));
    Wilshusen, 630 S.W.3d at 190. Therefore, we determine the TCPA’s applicability
    based on a holistic review of the pleadings. Adams, 547 S.W.3d at 897.
    7
    Appellants assert that the fraudulent transfer lawsuit is “based on or in
    response to” its exercise of free speech because it is “factually predicated” on the
    press release.       In response, Appellees contend that their claim for fraudulent
    concealment is based on or in response to Appellants’ conduct in transferring assets,
    rather than the press release. The press release, they contend, is merely evidence of
    such conduct. We conclude that Appellees’ claims are neither “based on” or “in
    response to” the press release/communication.2
    “Based On…”
    Other courts of appeals have frequently made a distinction between claims
    that are “based on” a communication and claims that are “based on” conduct.
    “[W]hen a claim does not allege a communication, and is instead based on a
    defendant’s conduct, the TCPA is not implicated.” Pacheco v. Rodriguez, 
    600 S.W.3d 401
    , 410 (Tex. App.—El Paso 2020, no pet.). This distinction is best
    illustrated by two recent cases.
    In Smith v. Crestview NuV, LLC, a pre-amendment case, an investor sued a
    medical technology company that had allegedly misapplied its investment funds.
    
    565 S.W.3d 793
    , 794–95 (Tex. App.—Fort Worth 2018, pet. denied). Later, the
    investor also sued a doctor associated with the company for “aider” liability under
    the Texas Securities Act. 
    Id.
     at 795–96; see former TEX. REV. CIV. STAT. ANN. art.
    581-33.F(2). The doctor asserted that the aider-liability claims arose out of alleged
    communications, between himself and the owner of the company, that were
    protected under the TCPA. Id. at 798. The court concluded that, although the doctor
    admitted he had a number of communications with the owner of the company, the
    2
    Appellees also argue that the contents in the press release do not constitute the “[e]xercise of the
    right of free speech” under the Act. See CIV. PRAC. & REM. § 27.001(3), (7). Because we have concluded
    that the lawsuit is not based on or in response to the press release, we do not reach this issue.
    8
    causes of action against him were not based on those communications but were
    instead based on his “actions and inactions.” Id. at 798. Accordingly, the TCPA did
    not apply to such claims. Id. at 797–98.
    In ML Dev, a post-amendment case, a retail chain sought rights to an easement
    following the purchase of a tract of land where it planned to build a distribution
    center. 649 S.W.3d at 625. The sellers alleged that the claims at issue were based
    on their statements denying access to easements, and that such statements were
    protected free speech under the TCPA. Id. at 628. The First Court of Appeals
    affirmed the trial court’s denial of the TCPA motion, holding that the buyer’s claims
    were not based on or in response to the communications denying the easement, but
    in response to the denial of easement access. Id. at 629. As such, the movants did
    not meet the “higher burden” imposed under the amended TCPA. Id. at 628.
    In this case, Appellees’ pleadings reference the press release somewhat
    extensively in their statement of facts. However, the claim could also be stated
    without any reference to the press release whatsoever, and the press release is not
    essential to those claims. Instead, Appellees’ claims are based on Appellants’
    conduct in transferring certain assets from Apache to APA.
    Appellees also correctly argue that there is a difference between
    communication that is part of the claim itself and communication which merely
    serves as evidence in support of a claim. See Polo, 632 S.W.3d at 45 (“the
    communications at most are ‘evidence’ that the parties will likely present at trial to
    be used by the trier of fact in determining whether CPL had a retaliatory motive for
    terminating him, but the lawsuit is not itself factually predicated on them”); In re
    IntelliCentrics, Inc., No. 02-18-00280-CV, 
    2018 WL 5289379
    , at *4 (Tex. App.—
    Fort Worth Oct. 25, 2018, no pet.) (mem. op.) (recognizing a distinction between
    communications used as evidence to support a claim for breach of contract and a
    9
    claim that is based on or in response to the communication); see also Allied Orion
    Grp., LLC v. Pitre, No. 14-19-00681-CV, 
    2021 WL 2154065
    , at *4 (Tex. App.—
    Houston [14th Dist.] May 27, 2021, no pet.) (mem. op.) (adopting and applying the
    reasoning in Polo). The references to the press release in Appellees’ pleadings
    merely point to evidence in support of their fraudulent transfer claim. The press
    release itself is not a part of the claim.
    “…Or In Response To”
    We likewise conclude that Appellees’ claims are not “in response to” the press
    release. Appellants argue that the “in response to” language in the TCPA should be
    interpreted expansively, relying in part on Baylor Scott & White v. Project Rose
    MSO, LLC, 
    633 S.W.3d 263
     (Tex. App.—Tyler 2021, pet. denied). In Baylor, the
    Tyler Court of Appeals held that a plaintiff’s claims are “‘in response to’ a protected
    activity when they react to or are asserted subsequently to the communication.” 633
    S.W.3d at 276 (citing Grant, 556 S.W.3d at 880). Appellants appear to argue from
    this language that any lawsuit that follows a related communication is “in response
    to” the communication for purposes of the TCPA, regardless of whether the
    relationship between the communication and the lawsuit is otherwise tenuous and
    unimportant.      The facts of Baylor and Grant do not support such a broad
    interpretation.
    In Baylor, a group of companies owned by two former National Football
    League Players brought suit against Baylor Scott & White. The former players
    alleged that, after Baylor purchased a controlling interest in a sports medicine facility
    that was owned by Texas Sport and Spine, the owners cancelled their contracts with
    the players without paying for their services. Id. at 273. As a result, the former
    players alleged that the owners gained the benefit of the former players’ marketing
    and consulting services, including the publicity that came with those services,
    10
    without having to pay for them. Id. The causes of action asserted by the former
    players included fraud, promissory estoppel, and civil conspiracy. Id. at 273–74.
    The Tyler Court of Appeals found that the claims made by the former players were
    “based on or in response to” the alleged communications between the owners of the
    facility and held that the TCPA applied. Id. at 280.
    Grant involved an asset purchase agreement between two technology
    companies. 556 S.W.3d at 871. During the course of the acquisition, the relationship
    between the parties deteriorated, and the buyer eventually sued the seller and its
    owners. Id. at 871. Among other things, the buyer alleged that the sellers conspired
    to defraud the buyer in connection with the purchase agreement and that the sellers
    solicited and accepted business from the buyer’s customers and employees. Id. at
    880–81. The Austin Court of Appeals held that such conduct satisfied the pre-
    amendment requirement for a nexus between the communication and the lawsuit.
    Id. at 881.
    In both Baylor and Grant, the pleadings made it clear that the parties’ claims
    were in reaction or response to the communications themselves. The claims against
    Baylor were asserted “in response to” (or, to borrow the Austin and Tyler courts’
    terminology, “in reaction to”) a conspiracy between the owners of the sports
    medicine facility. Likewise, the claims in Grant were asserted in response and/or
    reaction to allegedly fraudulent statements and the recruitment of customers and
    employees. The same thing cannot be said in this case. Appellees’ claims are in
    response to (or reaction to) the alleged fraudulent transfer of assets, not to the press
    release which announced those transfers.
    Interpreting the TCPA in the manner suggested by Appellants would lead to
    a near limitless application of the nexus requirement. Almost every lawsuit, at its
    core, involves some communication that is made by or between the parties, and as
    11
    the press release illustrates, the present case is no exception. See Polo, 632 S.W.3d
    at 45. We do not agree that the mere sequence of a communication, followed by a
    lawsuit that relates in some way to the communication, is sufficient to demonstrate
    that a claim is “in response to” the communication. We likewise do not read Baylor
    or Grant to suggest such an interpretation, and to the extent they do so, we disagree.
    Prima Facie Burden
    While we have concluded that the TCPA is inapplicable to this claim, we are
    also satisfied that Appellees met their burden of producing “clear and specific”
    evidence of their fraudulent transfer action. CIV. PRAC. & REM. § 27.005(c).
    The TCPA’s requirement of “clear and specific evidence” means that the
    nonmovant “‘must provide enough detail to show the factual basis for its claim’ and
    must provide enough evidence ‘to support a rational inference that the allegation of
    fact is true.’” Hall, 579 S.W.3d at 377 (quoting Lipsky, 460 S.W.3d at 590–91); see
    also CIV. PRAC. & REM. § 27.005(c); Stallion Oilfield Servs. Ltd. v. Gravity Oilfield
    Servs., LLC, 
    592 S.W.3d 205
    , 214 (Tex. App.—Eastland 2019, pet. denied). In
    determining whether a legal action should be dismissed, the TCPA requires us to
    consider the evidence presented by the parties, as well as the pleadings themselves.
    See CIV. PRAC. & REM. § 27.006(a).        In so doing, we are mindful that a TCPA
    motion to dismiss is not a trial on the merits and is not intended to replace either a
    trial or the summary judgment proceeding established by the Texas Rules of Civil
    Procedure. Stallion, 592 S.W.3d at 215.
    Under TUFTA, “[a] transfer . . . is fraudulent as to a creditor, whether the
    creditor’s claim arose before or within a reasonable time after the transfer . . . if the
    debtor made the transfer . . . with actual intent to hinder, delay, or defraud any
    creditor.” BUS. & COM. § 24.005(a)(1). This language gives rise to four elements:
    (1) whether Appellees are creditors, (2) whether Appellants are debtors, (3) whether
    12
    assets were transferred after, or a short time before, the claim arose, and (4) whether
    the transfers were made with the intent to hinder, delay, or defraud Appellees. See
    Nwokedi v. Unlimited Restoration Specialists, Inc., 
    428 S.W.3d 191
    , 204–05 (Tex.
    App.—Houston [1st Dist.] 2014, pet. denied). We conclude that Appellees have
    provided “clear and specific” evidence 3 for each of these elements. CIV. PRAC. &
    REM. § 27.005(c).
    Elements (1) and (2) require Appellees to establish that they are in a
    debtor/creditor relationship with Appellants. Under TUFTA, a creditor is a “person
    . . . who has a claim,” and a debtor is a “person who is liable on a claim.” BUS. &
    COM. § 24.002(4), (6). A “claim” is a “right to payment . . . , whether or not the
    right is reduced to judgment.” Id. § 24.002(3). Appellees pleaded that they are a
    creditor of Apache, and—in support of this claim—attached to their petition copies
    of their pleadings, as well as our opinion and judgment in Apollo I. Such evidence
    is sufficient to support a rational inference that Appellees had asserted a claim
    against Apache at the time of the transfer, even though such claim was not yet
    “reduced to judgment.” See BUS. & COM. § 24.002(3). Element (3) is likewise
    satisfied inasmuch as the press release contains Appellants’ own description of the
    transfers at issue.
    Element (4) requires proof of Apache’s intent to “hinder, delay, or defraud.”
    BUS. & COM. § 24.005(a)(1). TUFTA provides a list of so-called “badges” of fraud,
    eleven “nonexclusive indicia of fraudulent intent,” in Section 24.005(b). Janvey v.
    GMAG, L.L.C., 
    592 S.W.3d 125
    , 129 (Tex. 2019) (quoting Janvey v. Golf Channel,
    Inc., 
    487 S.W.3d 560
    , 566 (Tex. 2016)). This list includes consideration of whether
    3
    Appellants assert that Appellees rely solely on their petition, and that they have offered no other
    evidence in support of their TUFTA claims. This is incorrect. Appellees attached copies of the January 4
    and March 1 press releases, as well as our opinion and judgment in Apollo I, to their pleadings and later
    relied on those documents in their response to the motion to dismiss.
    13
    “the transfer or obligation was to an insider” (subpart 1) and whether “before the
    transfer was made . . . , the debtor had been sued.” (subpart 4). 4 BUS. & COM.
    § 24.005(b)(1), (4). “Evidence of a single ‘badge of fraud’ does not conclusively
    demonstrate intent, but a confluence of several presents a strong case of fraud.”
    Janvey, 487 S.W.3d at 566–67.
    The petition and attached exhibits provide support for the two badges
    described above, as well as additional evidence of intent. An “insider,” for purposes
    of subpart 1, includes an “affiliate” of a corporation, which can include a person who
    “directly . . . owns” the debtor. BUS. & COM. § 24.002(7)(D), (1). At the hearing on
    the motion to dismiss, Appellants agreed that APA Corporation meets this definition.
    It is also evident from the petition and attached exhibits that Appellees’ lawsuit
    preceded the transfer, in satisfaction of the element found in subpart 4 of the list of
    badges.      As additional evidence of fraudulent intent, Appellees point to
    Christmann’s statement in the January 4 press release that the use of a holding
    company offered “advantages in risk management.”
    Appellees’ evidence does not conclusively resolve the issue. However, its
    satisfaction of two of the badges of intent, combined with the contents of the
    January 4 press release, provide an explanation of the factual basis for the element
    of intent, as well as evidence to support a rational inference in support of that
    element, in satisfaction of the TCPA’s requirement for prima facie evidence. Hall,
    579 S.W.3d at 377. In so holding, we do not comment on whether such evidence
    would be sufficient to overcome a motion for summary judgment or to support a jury
    finding on the issue of intent. See Stallion, 592 S.W.3d at 215.
    4
    Appellees also allege that “transfer of substantially all [Apache Corp.’s] assets” under
    Section 24.005(b)(5). However, the factual allegations in Appellees’ pleadings merely state that the
    transfers involved Apache’s “most valuable assets,” and Appellees offer no other evidence in support of
    this claim.
    14
    This Court’s Ruling
    We hold that Appellants have failed to establish the required nexus between
    the press release and the claims that have been asserted by Appellees, and that, in
    any event, Appellees have satisfied their burden under the TCPA of bringing forth a
    prima facie case. Accordingly, the order of the trial court is affirmed.
    JOHN M. BAILEY
    CHIEF JUSTICE
    May 18, 2023
    Panel consists of: Bailey, C.J.,
    Trotter, J., and Wright, S.C.J. 5
    Williams, J., not participating.
    5
    Jim R. Wright, Senior Chief Justice (Retired), Court of Appeals, 11th District of Texas at Eastland,
    sitting by assignment.
    15