DocketNumber: NO. 03-17-00392-CV
Judges: Bourland, Field, Puryear
Filed Date: 5/17/2018
Status: Precedential
Modified Date: 10/19/2024
In this interlocutory appeal, we are faced with a legal question of first impression: can a motion to dismiss authorized by the Texas Citizens Participation Act (TCPA) be used to dismiss one's own administrative appeal? See Tex. Civ. Prac. & Rem. Code § 27.003. In the proceedings below, Michael Quinn Sullivan appealed to the district court a final order of the Texas Ethics Commission determining that he *851failed to register as a lobbyist and assessing a civil penalty against him. See Tex. Gov't Code §§ 305.003, .032. Pursuant to Sullivan's own motion, the trial court realigned the parties, naming the Commission as plaintiff and Sullivan as defendant, due to the Commission carrying the burden of proof in the "trial de novo" of the Commission order. See id. § 571.133(d). The Commission amended its pleadings accordingly, and Sullivan responded by filing a TCPA motion to dismiss the Commission's amended pleading, which the trial court denied. Because application of the TCPA under these circumstances cannot be harmonized with the more specific statutory procedures for judicial review of Commission orders, we hold that the TCPA does not apply and affirm the trial court's denial of Sullivan's TCPA motion. We reverse, however, the trial court's award of attorney's fees and costs to the Commission because the record does not support the trial court's findings that Sullivan's motion was frivolous or solely intended to delay the proceedings.
BACKGROUND
The Commission is a state agency established to "provide guidance on various public ethics laws." See Tex. Const. art. III, § 24a. It is charged with administering and enforcing chapter 305 of the government code, which governs lobbyist registration, reports, and activities. See Tex. Gov't Code §§ 305.001 -.036, 571.061(a)(1).
The events relevant to this dispute concern Sullivan's conduct in 2010 and 2011, when he was (and remains) the President of Empower Texans,
In April 2012, the Commission received two sworn complaints filed by Texas legislators alleging Sullivan's failure to register in 2010 and 2011. See id. §§ 305.035(c) ("A person may file with the appropriate prosecuting attorney or with the commission a written, sworn statement alleging a violation of this chapter."), 571.122 (providing procedures and requirements for sworn complaints). The Commission conducted a formal evidentiary hearing on the matter, see id. § 571.121 (authorizing Commission to hold hearings on sworn complaints and render decisions thereon), after which it concluded that Sullivan-a "professional lobbyist compensated by Empower Texans and its related entities for employment activities that include direct advocacy"-was required to register but failed to do so, see id. § 305.003. The Commission's final order assessed a $10,000 civil penalty against Sullivan. See id. § 305.032 (stating that person who fails to register as lobbyist shall pay civil penalty in amount determined by Commission rule).
Sullivan timely filed an appeal of the Commission's final order by filing a petition *852in Denton County district court. See id. § 571.133 (authorizing appeal). His petition alleged that his "cause of action" was a "de novo appeal of the Commission's July 21, 2014 Final Order pursuant to Tex. Gov't Code § 571.133." See id. (providing for de novo trial); see also id. § 2001.173 (in trial de novo, "the reviewing court shall try each issue of fact and law in the manner that applies to other civil suits in this state as though there had not been an intervening agency action or decision but may not admit in evidence the fact of prior state agency action or the nature of that action except to the limited extent necessary to show compliance with statutory provisions that vest jurisdiction in the court"). As a result of Sullivan's petition, the Commission's final decision was automatically vacated. See id. § 2001.176(b)(3) ("[T]he filing of the petition vacates a state agency decision for which trial de novo is the manner of review authorized by law but does not affect the enforcement of an agency decision for which another manner of review is authorized.").
The Commission answered the lawsuit and moved to transfer venue to Travis County, alleging that Sullivan resided in Travis County and that mandatory venue, therefore, lay in Travis County.
Within two weeks of the Commission filing its amended pleading, Sullivan moved to dismiss the pleading under the TCPA. After two hearings before two Denton County district judges, the trial court granted the motion and denied the Commission's motion to transfer venue.
The Travis County district court conducted yet another hearing on Sullivan's motion to dismiss and denied it. The trial court also made a finding that his motion was frivolous and intended solely to delay and granted the Commission's request for attorney's fees and costs. See Tex. Civ. Prac. & Rem. Code § 27.009(b). Sullivan appeals both rulings.
DISCUSSION
Can the TCPA be used to dismiss one's own administrative appeal?
The TCPA protects citizens who petition or speak on matters of public concern from retaliatory lawsuits that seek to intimidate or silence them. In re Lipsky ,
A party moving to dismiss 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." Tex. Civ. Prac. & Rem. Code § 27.005(b). A "legal action" is defined broadly: "a lawsuit, cause of action, petition, complaint, cross-claim, or counterclaim or any other judicial pleading or filing that requests legal or equitable relief."
Given these broad definitions, it very well might be that the Commission's amended pleading as realigned plaintiff alleging two counts of Sullivan's violation of the lobbyist-registration statute might facially constitute a "legal action" that "relates to" Sullivan's "exercise of the right of free speech [and] to petition" if read in isolation. See
The TCPA does not exist in a vacuum but coexists with chapters 305 and 571 of the government code, which regulate lobbyists and the Commission, respectively. In passing the lobbyist-registration statute, the legislature acknowledged that regulating lobbying necessarily implicates First Amendment rights, attempting to strike a balance between individuals' rights to speak and petition freely and the public's interest in an uncorrupted and transparent legislative branch:
The operation of responsible democratic government requires that the people be afforded the fullest opportunity to petition their government for the redress of grievances and to express freely their opinions on legislation, pending executive actions, and current issues to individual members of the legislature, legislative committees, state agencies, and members of the executive branch. To preserve and maintain the integrity of the legislative and administrative processes, it is necessary to disclose publicly and regularly the identity, expenditures, and activities of certain persons who, by direct communication with government officers, engage in efforts to persuade members of the legislative or executive branch to take specific actions.
Tex. Gov't Code § 305.001 ; see also
The legislature has charged the Commission with enforcing the lobbyist-registration statute, see
A statute is presumed to have been enacted by the legislature with complete knowledge of the existing law and with reference to it. Acker v. Texas Water Comm'n ,
A broad and isolated interpretation of the TCPA would sweep all "legal actions" related to the exercise of First Amendment rights under its purview, arguably including even the Commission's amended pleading as realigned plaintiff in this de novo appeal. However, chapters 305 and 571 predate the TCPA and provide a specific procedure for addressing allegations already admittedly related to one particular iteration of the exercise of First Amendment rights: lobbying. In light of this specific statutory framework, the only reasonable way to harmonize the TCPA and chapters 305 and 571 is to conclude that the TCPA's catch-all term "legal action" does not encompass de novo appeals of Commission orders enforcing the lobbyist-registration statute wherein the Commission seeks no new relief but prays only that the district court uphold the Commission's previous violation and penalty determinations. To hold otherwise *856would allow respondents to end-run the specifically enacted scheme for enforcement of the lobbyist-registration statute, a result the legislature could not have intended when enacting the TCPA.
With presumed full awareness of the statutory procedure for seeking judicial review of Commission orders finding violations of chapter 305, the legislature cannot have intended to undermine that very procedure in enacting the TCPA, especially considering the TCPA's purpose. See Lipsky ,
Did the trial court err in awarding the Commission attorney's fees and costs ?
In his second issue, Sullivan asserts that the trial court erred in awarding the Commission its attorney's fees and costs because the Commission offered "no evidence" to support the court's findings that his TCPA motion was "frivolous" and "solely intended to delay."
The TCPA does not define "frivolous," but the word's common understanding contemplates that a claim or motion will be considered frivolous if it has "no basis in law or fact," see Webster's Third New Int'l Dictionary (2002) 913, and "lack[s] a legal basis or legal merit," see Black's Law Dictionary (9th ed. 2009) 739. On this record and in accordance with our discussion above, in which we conclude that Sullivan's motion might be argued to technically fit the act's broad definition of a "legal action," we conclude that the trial court abused its discretion in concluding that Sullivan's TCPA motion was frivolous. See Wooley v. Schaffer ,
We also consider Sullivan's complaint that the court's other finding in support of the award-that Sullivan's motion was "solely intended to delay"-was not supported by legally sufficient evidence. The Commission alleges the following in support of that finding: (1) Sullivan's initial filing of this appeal in Denton County, an improper venue; (2) the implicit fact that Sullivan was "well aware" that the Commission would be able to meet its prima facie burden with respect to all elements of its allegations due to his involvement in the administrative proceedings; and (3) the fact that Sullivan's counsel drafted the TCPA motion four months before the Commission filed its amended pleading as realigned plaintiff, indicating that Sullivan intended to use the TCPA as a fee-shifting "sword" rather than a speech-protecting "shield."
Additionally, Sullivan contended below that he could prove a defense to the Commission's allegations via the so-called "media exception," an argument we did not need to reach to decide the merits of this appeal. See Tex. Civ. Prac. & Rem. Code § 27.005(d) ("The court shall dismiss a legal action against the moving party if the moving party establishes by a preponderance of the evidence each essential element of a valid defense to the nonmovant's claim."); Tex. Gov't Code § 305.004(1) (providing that persons who are employed by "bona fide news medium" that in ordinary course of business disseminates news and editorial comment opposing or promoting legislation need not register as lobbyists, provided they do not also engage in other activities requiring registration under chapter). Sullivan's attempt to defeat the Commission's allegations with this defense belies a finding that his motion was filed solely to delay. On this record, we conclude that the evidence cited by the Commission supports a finding that delay may have been one of the reasons for the motion's filing; however, the evidence as a whole does not allow for a reasonable and fair-minded factfinder to disregard the other potential reasons and conclude that delay was the sole reason, which is what the statute requires. See Tex. Civ. Prac. & Rem. Code § 27.009(b) ; see also Burbage , 447 S.W.3d at 259 (noting that evidence in support of vital fact does not rise above scintilla if it creates mere surmise or suspicion of vital fact); City of Keller v. Wilson ,
CONCLUSION
We hold that a person who files a suit for judicial review of a Commission order enforcing chapter 305 of the government code may not employ a TCPA motion to dismiss that very suit after realignment of the parties and the agency's subsequent filing of an amended pleading seeking the same relief as that granted in the administrative order. Accordingly, we affirm the trial court's order denying Sullivan's TCPA section 27.003 motion to dismiss. However, we reverse the trial court's award to the Commission of its attorney's fees and costs and render judgment denying the Commission's request for attorney's fees and costs.
Empower Texans also operates under the name Texans for Fiscal Responsibility.
These descriptions appear on Empower Texans's website. See https://empowertexans.com/about/ (last visited April 30, 2018).
The Commission's "Motion to Transfer Venue and Original Answer" alleged that Sullivan had judicially admitted that he resides in Travis County in each of the four separate lawsuits he had recently filed against the Commission-all related to the same Commission proceedings on appeal here-the latest venue "admission" occurring just days before Sullivan filed this lawsuit.
The first Denton County district judge to consider the motion to dismiss, Steve Burgess, was recused pursuant to the Commission's motion filed very soon after that judge conducted a lengthy hearing on the motion to dismiss. At the hearing, Judge Burgess announced that he was ruling in favor of Sullivan, pending a hearing on attorney's fees. The Commission's motion to recuse alleged that Judge Burgess had been a "follower" of Sullivan on Twitter, had access to Sullivan's "tweets" about the case and the Commission's enforcement of the lobbyist-registration laws, and had deleted his Twitter account immediately following the hearing. At the attorney's-fees hearing, the new district judge assigned to the case indicated his reluctance to grant the motion to dismiss but ultimately granted it, apparently swayed by Sullivan's argument that Judge Burgess's oral ruling was conclusive and because the TCPA timeline requiring a ruling within 30 days of the hearing was soon approaching.
It bears reiterating that Sullivan is the party who initiated the lawsuit below, and, had he not filed his petition for judicial review, the Commission's order would remain effective and fully enforceable. The Commission appeared in this lawsuit only responsively , and its amended pleading as realigned plaintiff did not add new claims or change the substance of the claims that were the subject of both its final order and Sullivan's petition.
Because we hold that the TCPA does not apply, we do not reach the second step in the TCPA analysis of whether the Commission met its burden to prove a prima facie case.
After denying Sullivan's TCPA motion, the order at issue in this appeal continues: "The Court further finds that Sullivan's motion is frivolous and solely intended to delay," and then grants the Commission's request for attorney's fees and costs, without further elaboration.
Sullivan does not challenge the amount of the award, only the court's decision to award fees based on its findings.
For instance, the Commission points to the affidavit of Sullivan's attorney, attached to the TCPA motion in support of its request for attorney's fees, indicating that the attorney drafted the motion four months before the Commission filed its amended pleading as realigned plaintiff and two months before Sullivan filed his motion to realign.
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