Saks & Company, LLC, Jennifer Welch, Juan Dominguez, and Andrew Balogh v. Ya Xi Li

Summary

The Fourteenth Court of Appeals of Texas reviewed an interlocutory appeal concerning the denial of appellants’ motions to dismiss under the Texas Citizen’s Participation Act. The court held that the malicious-prosecution claim and the original defamation claim should have been dismissed under the TCPA, concluding that the appellants established protected petitioning activity and that Li failed to present the required evidence. The court affirmed in part, reversed in part, and remanded for further proceedings; the provided text ends before the court’s complete discussion of the amended defamation claim.

Holdings

1. The malicious prosecution claim was based on or in response to appellants' exercise of the right to petition because the relevant communications were reasonably likely to encourage consideration or review by a judicial or governmental body.
2. The trial court erred by failing to dismiss Li's malicious prosecution claim because Li did not produce clear and specific evidence rebutting the presumption that appellants had probable cause to initiate criminal proceedings.
3. A TCPA motion to dismiss survives a nonsuit or amendment of the claimant's pleading and is evaluated against the claims as pleaded when the motion was filed.
4. The trial court erred by failing to dismiss the original-petition defamation claim against Saks, Dominguez, and Balogh under the TCPA.
5. The TCPA did not apply to the amended-petition defamation claim based on Dominguez's statement to Li's friend that Li stole $150.

Questions Presented

1. Whether the TCPA required dismissal of Li's malicious prosecution claim because the claim was based on appellants' exercise of the right to petition and Li failed to produce clear and specific evidence of lack of probable cause.
2. Whether appellants' TCPA motion remained operative as to the original-petition defamation claim after Li amended her petition.
3. Whether the TCPA applied to Li's original-petition defamation claim based on statements to police and employees, and whether Li produced clear and specific evidence of actual malice despite a qualified privilege.
4. Whether the TCPA applied to Li's amended-petition defamation claim based on Dominguez's statement to Li's friend that Li stole $150.

Disposition

reversed_and_remanded