DocketNumber: No. 04-18-00605-CV
Judges: Martinez, Rios, Watkins
Filed Date: 6/26/2019
Status: Precedential
Modified Date: 10/19/2024
Irene Rios, Justice
Calvin Day Jr., M.D. ("Day") sued the Federation of State Medical Boards of the United States, Inc. ("the Federation") for defamation and tortious interference with prospective business relations. In response, the Federation moved to dismiss Day's lawsuit pursuant to the Texas Citizens Participation Act ("TCPA"). See TEX. CIV. PRAC. & REM. CODE ANN. §§ 27.001 -.011. The trial court granted the Federation's motion to dismiss and awarded it $ 83,292.50 in attorney's fees. Day filed this appeal.
In four issues, Day argues the trial court erred by (1) denying his motion to strike an affidavit, (2) dismissing his suit because the TCPA did not apply, (3) dismissing his suit because he established a prima facie case for both defamation and tortious interference, and (4) awarding the Federation $ 83,292.50 in attorney's fees. We overrule Day's issues and affirm the trial court's judgment.
BACKGROUND
The Texas State Medical Board ("the Board") is a state agency that regulates the practice of medicine in Texas. TEX. OCC. CODE ANN. § 152.001(a). In June 2011, the Board temporarily suspended Day's medical license and commenced administrative proceedings against him. The suspension was prompted by complaints of "boundary violations" made by six individuals, including several of Day's patients, and Day's arrest and indictment for sexual assault arising from one of these complaints. A *816jury convicted Day of sexual assault, but the conviction was set aside when the trial court granted a new trial. The criminal charges against Day were eventually dismissed. In addition, four of the six complainants refused to cooperate in the Board's administrative investigation. By early 2017, only one of the complaints remained pending before the State Office of Administrative Hearings. On March 3, 2017, Day and the Board entered into an "Agreed Order," which resolved the remaining administrative complaint, lifted the suspension of Day's medical license, and imposed numerous restrictions on Day's practice of medicine.
The Federation maintains a website that provides physician data, including sanctions reported by state licensing boards. The part of the Federation's website known as the "Physician Data Center" contains a profile for each physician, including his or her licensure history, education, training, and biographical information. The Federation received the Agreed Order from the Texas Medical Board and, under the heading, "Board Actions," posted the following information on its website pertaining to Day:
Reporting Entity: Texas Medical Board
Date of Order: 3/3/2017
Form of Order: Agreed Order
Action(s): RESTRICTIONS/LIMITATIONS PLACED ON MEDICAL LICENSE/PRACTICE
Basis: Unprofessional Conduct
Day complained to the Federation that the "unprofessional conduct" statement was false and insisted that it be removed from his profile. Day asserted that the restrictions the Board placed on his return to practice were based solely on the fact that he had not practiced for six years because of his suspension. The Federation responded to Day's complaint by asking the Board if the "unprofessional conduct" statement was accurate. The Board advised the Federation that the "unprofessional conduct" statement was "a true, fair, and accurate description of the Agreed Order." The Federation declined to remove the statement from its website. Thereafter, Day sued the Federation for defamation and tortious interference with prospective business relations.
The Federation moved to dismiss Day's suit pursuant to the TCPA. See TEX. CIV. PRAC. & REM. CODE ANN. § 27.003 (providing a party may file a motion to dismiss a legal action based on, related to, or in response to its exercise of the right to free speech). The Federation's motion was supported by the affidavit of Scott Freshour, the Board's interim executive director, and other evidence. Day filed a response to the motion to dismiss, to which he attached his own affidavit and other evidence. After a hearing, the trial court signed an order granting the Federation's motion to dismiss. This appeal followed.
DISMISSAL UNDER THE TCPA
Commonly referred to as an anti-SLAPP
Dismissal of a claim under the TCPA generally involves a two-step process. In re Lipsky,
If the defendant meets its initial burden, then the burden shifts to the plaintiff to establish "by clear and specific evidence a prima facie case for each essential element of the claim in question." TEX. CIV. PRAC. & REM. CODE ANN. § 27.005(c) ; In re Lipsky ,
We review de novo a trial court's ruling on a motion to dismiss filed pursuant to the TCPA. Adams v. Starside Custom Builders, LLC ,
DENIAL OF MOTION TO STRIKE
In support of its motion to dismiss, the Federation submitted the affidavit of the Texas Medical Board's interim executive director, Scott Freshour. Day filed a motion to strike Freshour's affidavit, arguing "a court cannot go outside the order itself in reviewing the content of the order and the agency action therein." The trial court denied the motion to strike. In his third issue, Day argues the trial court erred in denying his motion to strike, claiming Freshour's affidavit "improperly presented evidence outside the four corners of the [Agreed Order.]"
We review a trial court's evidentiary ruling, such as its ruling on a motion to strike an affidavit, for an abuse of discretion. Sw. Energy Prod. Co. v. Berry-Helfand ,
Because the trial court did not abuse its discretion in denying Day's motion to strike Freshour's affidavit, we overrule Day's third issue.
APPLICABILITY OF THE TCPA
In his second issue, Day argues the trial court erred in granting the Federation's motion to dismiss because the Federation failed to show that the TCPA applies to his claims. Whether the parties have satisfied their respective burdens under the TCPA is an issue that we review de novo. Elkins ,
In arguing that the TCPA does not apply to his claims, Day argues that "[t]ypically, SLAPP suits are filed by large businesses and other deep-pocketed entities to silence criticism aimed at them by average citizens," but in this case the "corporate goliath seeking to suppress the [First] [A]mendment rights of a small, helpless [p]laintiff simply does not exist."
PRIMA FACIE CASE-DEFAMATION AND TORTIOUS INTERFERENCE
Because the Federation met its initial burden to show the applicability of the TCPA, the burden shifted to Day to establish "by clear and specific evidence a prima facie case for each essential element" of his claims. See TEX. CIV. PRAC. & REM. CODE ANN. § 27.005(c) ; In re Lipsky ,
Defamation
Defamation has been defined as "the invasion of a person's interest in [his] reputation and good name." Hancock v. Variyam ,
1. Falsity of the Statement
The "threshold requirement" for defamation is "the publication of a false statement of fact to a third party." Dallas Morning News, Inc. v. Tatum ,
To determine if Day met his burden to establish, by clear and specific evidence, a prima facie case that the Federation's "unprofessional conduct" statement was false, we examine Day's pleadings and the relevant evidence. See TEX. CIV. PRAC. & REM. CODE ANN. § 27.006(a). Establishing by clear and specific evidence a prima facie case for each essential element of a claim "describes the clarity and detail required to avoid dismissal." In re Lipsky ,
Day's pleadings state that his defamation claim is based on allegations that the Federation mischaracterized the Agreed Order on its website. According to Day's petition, the Federation "falsely pos[t]ed in its physician data center that the basis of the Agreed Order was 'Unprofessional Conduct.' " Day's petition further alleges that the "unprofessional conduct" statement on the Federation's website was false because the Agreed Order contained "no adverse findings" regarding Day's "professional competence or conduct."
On appeal, Day does not dispute that he was required to establish the falsity of the "unprofessional conduct" statement. Day argues that he met his burden as to this element of defamation, relying on the Agreed Order itself. Given Day's argument, we carefully examine the contents of the Agreed Order.
The Agreed Order states that the "charges" before the Board were allegations that Day had "engaged in unprofessional conduct including boundary violations with respect to six women, several of whom were patients." It further states that a formal complaint was filed with the State Office of Administrative Hearings, but that before proceeding to a hearing on the merits, "the parties engaged in negotiations and reached this settlement." The Agreed Order contains numerous findings, including: (1) that Day was convicted of one count of sexual assault; (2) that Day's conviction was overturned based on misconduct by both the defense attorneys and the prosecutors; (3) that Day's criminal case was eventually dismissed when the complainants refused to testify at trial; (4) that four of the five complainants refused to cooperate in the administrative case; (5) that Day was still the subject of one formal complaint at the State Office of Administrative Hearings "regarding allegations of unprofessional conduct in his medical practice;" (6) that the Board considered "[m]itigating [f]actors" in determining "appropriate sanctions in this matter;" and that (7) Day "agree[d] to the entry of this Agreed Order" "[t]o avoid further investigation, hearings, and the expense and inconvenience of litigation."
The Agreed Order also contains "Conclusions of Law," some of which cite to Chapter 164 of the Occupations Code, the Texas statutory scheme governing disciplinary actions for physicians. Among other things, the conclusions of law state that Chapter 164 "authorizes the Board to take disciplinary action against [Day] based upon [Day's] unprofessional or dishonorable conduct" and "authorizes the Board to impose a range of disciplinary actions against a person for violations of the [Occupations Code]." See TEX. OCC. CODE ANN. §§ 164.052(a)(5) ; 164.001.
The Agreed Order lifts the suspension of Day's medical license under certain terms and conditions. Specifically, the Agreed Order requires Day to participate in a proctorship, whereby his medical work is supervised by another physician for approximately six months. The supervising physician is required to report to the Board about whether Day has the skills, abilities, and knowledge to return to the practice of medicine. The Agreed Order also requires Day (1) to limit his medical practice to a group or institutional setting, (2) to continue the practice of having at least one other health care professional in the room when seeing or treating patients, (3) to keep a log of his patient interactions, (4) to have the other health care professional contemporaneously initial the log entries, and (5) to provide a copy of the *821Agreed Order to all health care entities with which he affiliates or seeks to affiliate.
Day argues the Agreed Order itself establishes the falsity of the Federation's "unprofessional conduct" statement. Emphasizing that the Agreed Order does not contain an explicit finding that he engaged in "unprofessional conduct," Day contends the Agreed Order shows that the restrictions imposed on him had "nothing to do with any misconduct." Day further contends the Agreed Order shows that the purpose of the restrictions imposed on him was to ensure that his "skills had not atrophied during his hiatus from practice." We disagree.
Both the language and the effect of the Agreed Order support the Federation's statement that the "basis" of the order was "unprofessional conduct." The Agreed Order expressly states that it is the result of a settlement between Day and the Board and that it resolves the remaining complaint that Day had engaged in "unprofessional conduct including boundary violations." Additionally, the Agreed Order explains that the Board considered "mitigating factors" in deciding "appropriate sanctions" for Day. The use of the word "sanctions" indicates that the purpose of the Agreed Order, at least in part, was to administer disciplinary action against Day. Furthermore, in addition to requiring Day to be supervised by another physician while performing medical procedures and requiring the supervising physician to provide feedback to the Board, the Agreed Order imposes numerous other restrictions on Day's practice of medicine, including requiring Day to have another health professional in the room while seeing patients, requiring Day to keep a log of his patient interactions, and requiring Day to practice medicine only in a group or institutional setting. Finally, the Agreed Order operates to resolve the remaining "unprofessional conduct" charge against Day, lift the temporary suspension of Day's license, and impose restrictions on Day's practice of medicine.
We conclude the Agreed Order does not demonstrate, by clear and specific evidence, the falsity of the Federation's "unprofessional conduct" statement. To the contrary, when considered in its entirety, the Agreed Order shows that the Federation's statement that the "basis" of the order was "unprofessional conduct" was substantially true.
Additionally, the evidence in this case includes the affidavit of the Board's interim executive director, Freshour, who testified that the Board suspended Day's medical license and began conducting a disciplinary review of Day based on allegations of unprofessional conduct; that this review lasted several years; that the Board and Day entered into the Agreed Order on March 3, 2017; that the Board forwarded the Agreed Order to the Federation; and that after Day complained about the "unprofessional conduct" statement on the Federation's website, the Board advised the Federation that this statement was "a true, fair, and accurate description of the Agreed Order."
After examining the pleadings and the evidence, we conclude that Day did not present clear and specific evidence sufficient as a matter of law to establish the falsity of the "unprofessional conduct" statement. See In re Lipsky ,
2. Requisite Degree of Fault
Another key element in this case is the requisite degree of fault regarding the truth of the statement. Generally, *822the requisite degree of fault in a defamation case depends on the status of the allegedly defamed person.
Here, the parties disagree about the requisite degree of fault. Day argues that he was required to establish that the Federation acted negligently with regard to the truth of the statement because he is a private individual. The Federation counters that Day was required to establish that the Federation acted with actual malice. We will assume, without deciding, that the requisite degree of fault in this case is negligence.
In the defamation context, negligence is defined "as the failure to investigate the truth or falsity of a statement before publication, and the failure to act as a reasonably prudent person." Harwood v. Gilroy , No. 04-16-00652-CV,
Initially, we note that Day's petition does not include specific facts to support his contention that the Federation acted negligently. The only reference to negligence in Day's petition is a statement that the Agreed Order contains "insufficient underlying Findings of Facts to support any conclusion of law and renders the [Federation's] postings to be arbitrary, capricious, libelous, and negligent." Thus, Day's petition fails to point to the clear and specific evidence that is required when the TCPA is implicated. See In re Lipsky ,
Despite the lack of specificity in Day's pleadings, we will consider the evidence as it relates to this element of Day's defamation claim. In arguing on appeal that he established a prima facie case regarding the requisite degree of fault, Day focuses on several documents attached to his affidavit: (1) the Agreed Order, (2) the emails Day sent to the Federation complaining that its "unprofessional conduct" statement was false, and (3) the description of the Agreed Order on the Board's website. We disagree that this evidence establishes the Federation's negligence with respect to the truth or falsity of the statement.
As discussed in the previous section, the Agreed Order supports the Federation's "unprofessional conduct" statement and shows this statement is not false. Furthermore, the emails show that when the Federation *823received a complaint from Day about the "unprofessional conduct" statement, it contacted the Board about the accuracy of this statement, and the Board advised the Federation that the "unprofessional conduct" statement accurately reflected the basis of the Agreed Order.
Day maintains that the Federation's negligence is established by comparing the description of the Agreed Order posted on the Board's website with the Federation's statement. However, this is not a valid comparison. The Federation posted its "unprofessional conduct" statement in 2017, but the description of the Agreed Order posted on the Board's website is dated June 28, 2018. Furthermore, no other evidence shows the Federation was aware of or should have been aware of the description posted on the Board's website. See Sanders ,
To defeat the Federation's motion to dismiss, Day was required to present clear and specific evidence "sufficient as a matter of law to establish [the Federation's negligence] if it is not rebutted or contradicted." See In re Lipsky ,
Because Day failed to satisfy his burden to establish, by clear and specific evidence, a prima facie case as to at least two elements of his defamation claim, the trial court did not err in dismissing this claim under the TCPA.
Tortious Interference with Prospective Business Relations
To establish a claim for tortious interference with prospective business relations, a plaintiff must establish (1) a reasonable probability the plaintiff would have entered into a business relationship with a third party, (2) the defendant acted with a conscious desire to prevent the relationship from occurring or knew the interference was certain or substantially certain to occur as a result of its conduct, (3) the defendant's conduct was independently tortious or unlawful, (4) the defendant's interference proximately caused the plaintiff's injury, and (5) as a result the plaintiff suffered actual damage or loss. Coinmach Corp. v. Aspenwood Apartment Corp. ,
To survive the Federation's motion to dismiss and maintain his tortious interference claim, Day was required to establish, by clear and specific evidence, a prima facie case as to every element of this *824claim. Day's petition shows that his tortious interference claim was premised on the Federation's "unprofessional conduct" statement. According to Day's petition, Day "operate[d] in a highly competitive [field] and maintain[ed] his competitive edge by virtue of his business relationships and by his Board Certification" "and by his ability to be accepted on insurance panels," which the "unprofessional conduct" statement "prevents him from doing." Day's petition further alleges the Federation "knew interference with his ability to obtain the above was certain or substantially certain to occur as a result of the publication" of the statement and that the Federation's "willful and intentional interference was the proximate cause of actual harm and/or damages" to him.
On appeal, Day argues he met his burden to demonstrate a prima facie case for tortious interference with prospective business relations. The third element of Day's claim-whether he established that the Federation's conduct was independently tortious-is dispositive. Day argues that he established a prima facie case that the Federation's conduct was independently tortious, relying exclusively on his contention that the Federation's "unprofessional conduct" statement was defamatory. But as previously discussed, Day failed to present clear and specific evidence to establish a prima facie case as to at least two elements of his defamation claim, the falsity of the statement and the requisite degree of fault. Therefore, we conclude Day failed to satisfy his burden to establish, by clear and specific evidence, a prima facie case that the Federation's conduct was independently tortious or wrongful. See Van Der Linden v. Khan ,
We overrule Day's first issue.
ATTORNEY'S FEES
In his fourth issue, Day claims the trial court erred in awarding the Federation $ 83,292.50 in attorney's fees because the Federation "failed to even [a]ddress the requirement of equity and justice" and its affidavits "did not support the amount of fees claimed." In this issue, Day raises multiple complaints: (1) the Federation failed to present evidence of its attorney's fees at the motion to dismiss hearing, (2) the Federation made no showing of "justice and equity," (3) the affidavits supporting the attorney's fees motion failed to comply with section 18.001 of the Texas Civil Practice and Remedies Code, and (4) the Federation failed to prove that the attorney's fees requested were reasonable and necessary.
The record shows the trial court held a hearing on the Federation's motion to dismiss on July 17, 2018, and signed an order granting the motion to dismiss on July 20, 2018. Thereafter, on August 9, 2018, the Federation filed a motion for attorney's fees, supported by two affidavits and billing records. On August 17, 2018, Day filed a response opposing the motion for attorney's fees. Day did not file a controverting affidavit, nor did he request additional *825time to file a response or a controverting affidavit. On August 20, 2018, the trial court signed a judgment awarding the Federation $ 83,292.50 in attorney's fees. This judgment states the trial court considered the affidavits and billing records submitted by the Federation.
1. Failure to Present Evidence at the Motion to Dismiss Hearing
Day complains the trial court erred in awarding attorney's fees because the Federation did not present evidence of its attorney's fees at the hearing on the motion to dismiss.
Although the Federation was required to present evidence in the trial court to support the award of attorney's fees, it was not necessarily required to present this evidence at the dismissal hearing. In fact, one of the cases Day cites in his brief, Brownhawk, L.P. v. Monterrey Homes, Inc. ,
Here, as in Brownhawk , the record shows that the Federation's attorney's fees affidavits and billing records were presented to the trial court before it rendered judgment. See
2. "Justice and Equity"
Day next complains the trial court erred in awarding attorney's fees because the Federation made no showing of "justice and equity."
Section 27.009 of the Texas Civil Practice and Remedies Code provides that when a trial court dismisses a legal action under the TCPA, it "shall award to the moving party [ ] court costs, reasonable attorney's fees, and other expenses incurred in defending against the legal action as justice and equity may require." TEX. CIV. PRAC. & REM. CODE ANN. § 27.009(a). In Sullivan v. Abraham ,
3. Compliance with Section 18.001
" Section 18.001 [of the Texas Civil Practice and Remedies Code] governs proving expenses by affidavit." Gunn v. McCoy ,
Unless a controverting affidavit is served as provided by this section, an affidavit that the amount a person charged for a service was reasonable at the time and place that the service was provided and that the service was necessary is sufficient evidence to support a finding of fact by judge or jury that the amount charged was reasonable or that the service was necessary.
TEX. CIV. PRAC. & REM. CODE ANN. § 18.001(b). By filing a controverting affidavit under section 18.001(f), a nonoffering party can prevent the use of an offering party's affidavit as evidence.
*826Hong v. Bennett ,
Affidavits filed under section 18.001(b) are commonly used as evidence of the reasonableness and necessity of past medical expenses. Gunn , 554 S.W.3d at 672. Section 18.001 is "purely procedural," allowing "the use of affidavits to streamline proof of the reasonableness and necessity of medical expenses." Id. (internal quotations omitted). "[S]ection 18.001(b) provides a limited exception to the general rule that expert testimony is required to prove reasonableness and necessity of medical expenses." Hong ,
Here, Day complains the trial court erred in awarding attorney's fees because the affidavits the Federation filed in support of its attorney's fees motion "do not qualify as section 18.001 affidavits." However, Day does not explain how the Federation's affidavits failed to qualify under section 18.001.
The Texas Rules of Appellate Procedure require an appellant's brief to "contain a clear and concise argument for the contentions made, with appropriate citations to authorities." See TEX. R. APP. P. 38.1(i). To comply with Rule 38.1(i), an appellant's brief must provide "a discussion of the facts and the authorities relied upon to maintain the point at issue." Lowry v. Tarbox ,
But even if this complaint had been properly briefed and presented for our review, we would overrule it. While section 18.001 has been used for affidavits concerning attorney's fees, it is not the only procedure available. Other procedures have been used to submit affidavits in support of attorney's fees motions. See, e.g., RSL Funding, LLC v. Aegon Structured Settlements, Inc. ,
*827Strom v. Memorial Hermann Hosp. Sys. ,
4. Reasonable and Necessary
Finally, Day complains that the record lacks sufficient proof that the attorney's fees awarded were "reasonable and necessary." Day further complains that the amount of attorney's fees awarded was "excessive" given the "narrow scope" of his lawsuit. "A 'reasonable' attorney's fee 'is one that is not excessive or extreme, but rather moderate or fair.' " Sullivan ,
Here, the Federation supported its motion for attorney's fees with two attorney affidavits supported by billing records. Even though Day filed a response to the motion for attorney's fees, Day did not submit a controverting affidavit, nor did he request additional time to file a controverting affidavit. The trial court awarded the amount of attorney's fees requested in the Federation's motion and accompanying affidavits and billing records.
To support his contention that the attorney's fees awarded were not reasonable, Day relies on McGibney v. Rauhauser ,
None of the circumstances described in McGibney exist in the case before us. The Federation was served with Day's lawsuit and compelled to appear. The billing records contain virtually no redactions and do not include entries for work performed on another case. The billing entries show that the $ 83,292.50 the Federation incurred in attorney's fees was for the preparation and presentation of the Federation's motion to dismiss and other aspects of defending this lawsuit, including reviewing Day's pleadings, preparing an original answer, and responding to and engaging in discovery. We conclude the evidence was sufficient to support the trial court's finding that the attorney's fees requested were reasonable and necessary. Additionally, we conclude that the attorney's fees awarded in this *828case are not excessive or extreme, but instead are moderate and fair. See Sullivan ,
We overrule Day's fourth issue.
CONCLUSION
The trial court's judgment is affirmed.
SLAPP is an acronym for strategic lawsuit against public participation. KBMT Operating Co., LLC v. Toledo ,
Day does not cite to any rules, statutes, or cases to support this argument.
Libel is "a defamation expressed in written or other graphic form."
Day further asserts that the Federation did not comply with section 18.001(d), which provides: "The party offering the affidavit in evidence or the party's attorney must serve a copy of the affidavit on each other party to the case at least 30 days before the day on which evidence is first presented at the trial of the case."