YES ON SB 896

Senate bill 896 Strengthens the

TEXAS CITIZENS PARTICIPATION ACT

The Texas Citizens Participation Act (TCPA) became law in 2011. Its purpose is to

“Encourage and safeguard the constitutional rights of persons to petition, speak freely, associate freely, and otherwise participate in government . . . and at the same time, protect the rights of a person to file meritorious lawsuits for demonstrable injury.

Senate bill 896 Strengthens the

TEXAS CITIZENS PARTICIPATION ACT

The Texas Citizens Participation Act (TCPA) became law in 2011. Its purpose is to

“Encourage and safeguard the constitutional rights of persons to petition, speak freely, associate freely, and otherwise participate in government . . . and at the same time, protect the rights of a person to file meritorious lawsuits for demonstrable injury.

Texas Citizens Participation Act

The TCPA focuses on stopping lawsuits that are filed for the purpose of intimidating someone into silence (referred to as Strategic Lawsuits Against Public Participation or “SLAPPs”). It allows a defendant to file a motion to dismiss such a lawsuit and, if that motion is denied, it provides an automatic appeal that pauses all trial court actions until the appeal is resolved.

Texas Citizens Participation Act

The TCPA focuses on stopping lawsuits that are filed for the purpose of intimidating someone into silence (referred to as Strategic Lawsuits Against Public Participation or “SLAPPs”). It allows a defendant to file a motion to dismiss such a lawsuit and, if that motion is denied, it provides an automatic appeal that pauses all trial court actions until the appeal is resolved.

Currently, the denial of any TCPA motion to dismiss is entitled to the automatic stay, regardless of whether the motion is frivolous or untimely, or the underlying action is expressly exempted from the TCPA.

Unfortunately, it has become a common legal strategy for litigants to file these motions, which they know will be denied, to intentionally create YEARS of delay by exploiting the automatic stay, which results in denying Texans their right to free speech.

Delay:  14 Months and Counting   

A group of homeowners sued the developers of their community over improper construction, alleging the developer knew about the defects and hid them from the community. One of the developer’s employees even admitted the company knew of and hid the issues from the homeowners. Despite this admission, the developer filed a motion under TCPA to dismiss, which was denied by the courts. But the developer was able to take advantage of TCPA’s automatic stay and was able to delay the homeowner’s day in court for over a year.

Delay:  18 Months   

In a construction dispute lawsuit, TCPA was used by a party in the suit to delay a trial after three years of “discovery” – and very expensive legal fees. Even though the court ruled that the trial should go forward, this party filed a TCPA motion and was able to delay the trial even more, receiving an “automatic stay.” A year and a half later, an appellate court ruled that the TCPA motion was “untimely” and “frivolous,” but this abuse of TCPA successfully delayed justice for almost two years.

Delay:  34 Months and Counting  

In June 2020, a consulting firm sued a competitor for trade secret infringement. Several months later, the defendant filed a TCPA motion to automatically delay the trial. The TCPA motion was denied but automatically appealed according to Texas law. After nearly three years, the TCPA appeal is still pending, and the plaintiff has spent more than a million dollars in attorney’s fees.

Currently, the denial of any TCPA motion to dismiss is entitled to the automatic stay, regardless of whether the motion is frivolous or untimely, or the underlying action is expressly exempted from the TCPA.

Unfortunately, it has become a common legal strategy for litigants to file these motions, which they know will be denied, to intentionally create YEARS of delay by exploiting the automatic stay, which results in denying Texans their right to free speech.

 

Delay:  14 Months and Counting   

A group of homeowners sued the developers of their community over improper construction, alleging the developer knew about the defects and hid them from the community. One of the developer’s employees even admitted the company knew of and hid the issues from the homeowners. Despite this admission, the developer filed a motion under TCPA to dismiss, which was denied by the courts. But the developer was able to take advantage of TCPA’s automatic stay and was able to delay the homeowner’s day in court for over a year.

Delay:  18 Months   

In a construction dispute lawsuit, TCPA was used by a party in the suit to delay a trial after three years of “discovery” – and very expensive legal fees. Even though the court ruled that the trial should go forward, this party filed a TCPA motion and was able to delay the trial even more, receiving an “automatic stay.” A year and a half later, an appellate court ruled that the TCPA motion was “untimely” and “frivolous,” but this abuse of TCPA successfully delayed justice for almost two years.

Delay:  34 Months and Counting  

In June 2020, a consulting firm sued a competitor for trade secret infringement. Several months later, the defendant filed a TCPA motion to automatically delay the trial. The TCPA motion was denied but automatically appealed according to Texas law. After nearly three years, the TCPA appeal is still pending, and the plaintiff has spent more than a million dollars in attorney’s fees.

Currently, the denial of any TCPA motion to dismiss is entitled to the automatic stay, regardless of whether the motion is frivolous or untimely, or the underlying action is expressly exempted from the TCPA.

Unfortunately, it has become a common legal strategy for litigants to file these motions, which they know will be denied, to intentionally create YEARS of delay by exploiting the automatic stay, which results in denying Texans their right to free speech.

 

Delay:  14 Months and Counting   

A group of homeowners sued the developers of their community over improper construction, alleging the developer knew about the defects and hid them from the community. One of the developer’s employees even admitted the company knew of and hid the issues from the homeowners. Despite this admission, the developer filed a motion under TCPA to dismiss, which was denied by the courts. But the developer was able to take advantage of TCPA’s automatic stay and was able to delay the homeowner’s day in court for over a year.

Delay:  18 Months   

In a construction dispute lawsuit, TCPA was used by a party in the suit to delay a trial after three years of “discovery” – and very expensive legal fees. Even though the court ruled that the trial should go forward, this party filed a TCPA motion and was able to delay the trial even more, receiving an “automatic stay.” A year and a half later, an appellate court ruled that the TCPA motion was “untimely” and “frivolous,” but this abuse of TCPA successfully delayed justice for almost two years.

Delay:  34 Months and Counting  

In June 2020, a consulting firm sued a competitor for trade secret infringement. Several months later, the defendant filed a TCPA motion to automatically delay the trial. The TCPA motion was denied but automatically appealed according to Texas law. After nearly three years, the TCPA appeal is still pending, and the plaintiff has spent more than a million dollars in attorney’s fees.

THE SOLUTION – Senate Bill 896

SB 896 addresses this abuse by restricting the automatic stay (but not the right to appeal) in three very limited circumstances: when TCPA motions are determined to be frivolous, exempt, or untimely. It does not modify the TCPA itself, keeping intact the TCPA’s inherent protection of citizen’s rights of association, of free speech, and to petition.

SB 896 will decrease the filing of frivolous, exempt, and late motions under the TCPA while ensuring the continued protection of free speech and citizen participation.

THE SOLUTION – Senate Bill 896

SB 896 addresses this abuse by restricting the automatic stay (but not the right to appeal) in three very limited circumstances: when TCPA motions are determined to be frivolous, exempt, or untimely. It does not modify the TCPA itself, keeping intact the TCPA’s inherent protection of citizen’s rights of association, of free speech, and to petition.

SB 896 updates the TCPA to decrease the filing of frivolous, exempt, and late motions under the TCPA while ensuring the continued protection of free speech and citizen participation.

Senate bill 896 Summary

Proposed committee substitute for SB 896

Senate bill 896 Summary

Proposed committee substitute for SB 896

Removes the automatic stay of trial proceedings (pending appeal) for denied TCPA motions to dismiss that are determined to be frivolous or solely intended to delay justice.

Provides a limited 45-day stay if the order denying a TCPA motion to dismiss states the motion was denied because it was not timely filed or is exempt under the TCPA.

The appellate court could then extend the stay upon a determination that the appellant is likely to succeed on the merits.

For TCPA motions denied for any other reason, or if there is no reason provided, the automatic stay would continue to apply the same as it does under current law.

*Senate Bill 896 was passed by the Senate unanimously on March 21, 2023
*Supporters include Texans for Lawsuit Reform and Texas Association of Business

*Senate Bill 896 was passed by the Senate unanimously on March 21, 2023


*Supporters include Texans for Lawsuit Reform and Texas Association of Business