Category Archives: Tennessee Public Participation Act

Intermediate Scrutiny for January 5, 2024

Appeals, Defamation, Editorial, Evidence, Tennessee Public Participation Act, Uncategorized

ScotBlog Readers:

The delinquent editor of this unreliably updated blog has started a new project: A weekly newsletter devoted to Tennessee Court of Appeals opinions.  The first version is reprinted below, though future versions won’t be published here.  If you like what you see, you can subscribe here: https://horwitz.law/intermediate-scrutiny-blog-signup-form/.

A snappy weekly newsletter from the lawyers at Horwitz Law, PLLC summarizing the week’s decisions from the Tennessee Court of Appeals.

January 1–5, 2024

  • “Extremely intoxicated, hostile, and belligerent” Army lieutenant makes a series of increasingly poor decisions. After a night out drinking at a bar during a bachelor party, he removes his shirt, places it on the ground, and starts urinating on it. He then gets himself arrested and charged with public intoxication, resisting arrest, and assault on a police officer. Afterward, he engages in extensive Facebook messenger correspondence with his “companion” from the evening—distinct from his “then-girlfriend, now wife”—in an attempt to ascertain what happened, and she tells him exactly how intoxicated, aggressive, and violent he was. The Secretariat of bad judgment then sues his arresting officers “for defamation and negligence per se” (claiming, among other things, “that he was not intoxicated, aggressive, or violent when he was arrested”). During the litigation, he repeatedly conceals and otherwise lies about his damning correspondence with his “companion,” which he alternately claims did not exist, he forgot about, his wife told him to delete, and/or was work product created at the direction of his attorney. Davidson County Circuit Court: Your “blatant prevarication and misconduct warrants the most severe sanctions,” so you are ordered to pay over $60,000 in fees and costs, and all of your claims are dismissed with prejudice. Tennessee Court of Appeals: And those sanctions “were directly related to the discovery abuses and were not excessive under the circumstances.” (DAH)
  • After Husband and Wife divorce, Wife sues Husband based on a provision of their marital dissolution agreement that says she gets half the equity in their formerly shared home “when the house sells.” Chancery Court for Montgomery County: Wife gets half the equity as of the date of the Parties’ divorce in 2019. Tennessee Court of Appeals: No, wife gets half the equity as of the date of the house’s sale in 2023. But Husband gets an unjust enrichment credit for the twenty-two consecutive monthly payments that he has already paid Wife based on their alleged oral agreement about the amount of her equity interest, even though the agreement violates the statute of frauds. This case is otherwise remanded so Husband can introduce evidence about improvements and other expenditures he made and so Wife can introduce evidence that she’s entitled to reimbursement for her rent because Husband kicked her out before the house was sold. Also, the relevant provision of the Parties’ “not a model of clarity” MDA—which resulted from “the parties’ self-drafting of a form document they obtained from an unknown source”—is internally inconsistent, so this entire opinion is declared non-citable. (DAH)
  • Homeowner contracts with Contractor to build a “log home.” Contractor contracts with Subcontractor to provide some labor and materials. Subcontractor: I did more than $60,000 of work for which Contractor never paid me, so I’m entitled to payment from Homeowner, who flipped the property (which cost $382,000.00 to build) for a cool $1.5 million after construction was completed. Tennessee Court of Appeals: Not yet you aren’t. Although Tennessee law allows unpaid subcontractors to file unjust enrichment claims against property owners, they have to exhaust their available remedies against the contractors with whom they were in privity first, and getting a default judgment against the deadbeat contractor without demonstrating that you can’t collect on it isn’t exhaustive enough. (DAH)
  • Company sues Employees for holding events using the company’s name and failing to remit proceeds. During the litigation, Employees’ counsel “inadvertently included”—twice—a privileged email from one of the Employees in his trial court filings. Employees’ counsel then continues to file the privileged email in the court record and “discusses the substance and contents of the email at length” at least twice more after that. Employees: Company shouldn’t get to use the privileged email, particularly because Company “trap[ped]” us into making a bunch of apparently false statements using information gleaned from it. Tennessee Court of Appeals: It’s true that Tennessee Code Annotated § 23-3-105 subjected the email to the attorney-client privilege. But Tennessee Rule of Evidence 502 requires privilege holders to take “reasonable steps to prevent disclosure,” and repeatedly filing and citing the email was definitely not that, so the email is now admissible. The waiver of privilege is limited to the email alone, though; it doesn’t extend to “any undisclosed communications concerning the same subject matter.” (DAH)
  • Company A initiates arbitration proceeding against Companies B and C, wins, and then petitions the Davidson County Chancery Court to confirm the arbitration award. Companies B and C: Hold on, we didn’t even know the proceeding existed until we received the motion to confirm the award! Davidson County Chancery Court: That’s too bad; you all objected too late, so the arbitration award is confirmed. Tennessee Court of Appeals: Actually, because “absence of notice may warrant vacatur under the [Federal Arbitration Act],” the award is vacated for now, in part because Company A failed to include a ton of information in the appellate record that would allow us to determine when notice was provided. On remand, the trial court must determine both whether one of the companies even agreed to arbitrate and when the companies actually received notice of the arbitration, too. (DAH)
  • Father and Stepmother sue to terminate Mother’s parental rights over Child. Father/Stepmother: Child lives with us, and Mother hasn’t seen her or supported her in years, among other issues. Chancery Court for Sumner County: And those are both valid grounds for termination, but Tennessee’s termination of parental rights statutes recognize “that terminating an unfit parent’s parental rights is not always in the child’s best interests,” and it is not in Child’s best interest here. Tennessee Court of Appeals: “Upon review of the evidence, we agree with the trial court’s assessment and findings.” (Editorial note: Mother nearly had her parental rights terminated because she waived multiple potentially valid defenses, which Tennessee law really should not allow.) (DAH)

A victory for Horwitz Law, PLLC client Theresa Baldwin! In 2022, Ms. Baldwin was sued for a cornucopia of speech-based tort claims after she criticized two adults (one of them an oft-sanctioned lawyer) who took her minor daughter into their home and elsewhere against Ms. Baldwin’s instructions to stay away. And because—after more than a year of litigation—the Plaintiffs failed to establish any element of their various claims, the Tennessee Public Participation Act means that Ms. Baldwin wins and gets to recover her legal fees. Read the Circuit Court of Robertson County’s Order Granting Defendant’s Tenn. Code Ann. § 20-17-104(a) Petition to Dismiss the Plaintiffs’ Amended Complaint Pursuant to the Tennessee Public Participation Act here: https://horwitz.law/wp-content/uploads/2022-247-Order-Granting-TPPA-Petition.pdf.

New Tennessee Court of Appeals Ruling Settles Previously Unanswered Questions About the Tennessee Public Participation Act

Defamation, Tennessee Public Participation Act,

By Daniel A. Horwitz:

As news of Dominion Voting System’s record-shattering settlement in its defamation case against Fox News spread across newswires, the Tennessee Court of Appeals quietly issued a landmark defamation decision of its own.  In particular, in a little-noticed April 18, 2023 ruling in Pragnell v. Franklin, No. E2022-00524-COA-R3-CV, 2023 WL 2985261 (Tenn. Ct. App. Apr. 18, 2023), the Court of Appeals settled three critical and previously unanswered questions about the Tennessee Public Participation Act, Tennessee’s still-novel anti-SLAPP statute.

Prangell arose from a nasty fallout among former coworkers at investment advisory firm Innovative Advisory Partners.  After four members of the firm left to form a new investment group, a dispute arose and litigation ensued.  Shortly after that litigation was initiated, Innovative Advisory Partners amended something called a “Form U5 Uniform Termination Notice” to state that its former members had been discharged due to “[v]iolation of client privacy rights, misrepresentation and selling away”—the latter meaning selling securities without approval or authorization.  Maintaining that such allegations had been made maliciously and with actual knowledge that the statements were false, the former members sued Innovative Advisory Partners and its CEO for defamation.

The Plaintiffs’ defamation suit began with the trial court issuing a categorically unconstitutional prior restraint enjoining the Defendants from publishing further information that the Plaintiffs contended was false—a frustratingly common occurrence in Tennessee that received no further mention.  The Defendants then petitioned to dismiss the Plaintiffs’ lawsuit under the Tennessee Public Participation Act.  As grounds, the Defendants asserted that the Plaintiffs had filed the complaint in response to Defendants’ exercise of their right to free speech, that the Defendants’ speech related to a matter of public concern, and that the statements in their amended U5 disclosure were true.

The Plaintiffs responded in opposition to the Defendants’ TPPA Petition, appending several declarations that at least facially supported their disputed defamation claim.  The Plaintiffs further maintained that the Defendants’ TPPA Petition was frivolous and that they were entitled to attorney’s fees for having to respond to it.  The Defendants then replied with evidence of their own.

Upon review of the Parties’ filings, the trial court found that the TPPA applied, it denied the Defendants’ TPPA Petition on its merits, and it ruled that it was not filed frivolously.  Everyone appealed.  Thereafter, the Court of Appeals accepted interlocutory review, which TPPA petitioners and respondents may seek as a matter of right under Tenn. Code Ann. § 20-17-106 (“The court’s order dismissing or refusing to dismiss a legal action pursuant to a petition filed under this chapter is immediately appealable as a matter of right to the court of appeals. The Tennessee Rules of Appellate Procedure applicable to appeals as a matter of right governs such appeals.”).

Upon review, the Court of Appeals resolved three previously unanswered questions about how critical provisions of the TPPA operate, all of which will provide substantial guidance for litigants and trial courts in future TPPA cases.

First, the Court of Appeals settled the definition of “prima facie” under the TPPA.  The term is used twice in the statute.  It appears, first, in Tenn. Code Ann. § 20-17-105(a), which provides at step one of the TPPA’s burden-shifting framework that: “The petitioning party has the burden of making a prima facie case that a legal action against the petitioning party is based on, relates to, or is in response to that party’s exercise of the right to free speech, right to petition, or right of association.”  It also appears a second time, in Tenn. Code Ann. § 20-17-105(b), at step two of the TPPA’s burden-shifting framework, which provides that: “If the petitioning party meets this burden, the court shall dismiss the legal action unless the responding party establishes a prima facie case for each essential element of the claim in the legal action.”

The reason the definition of “prima facie” matters—and why the quantum of evidence necessary to satisfy the standard is so critical—is because it affects whether the TPPA applies at all, and if so, whether a defendant’s TPPA petition should be granted.  Previous litigants—including Daily Wire host Candace Owens en route to her record-setting TPPA win against a failed congressional candidate earlier this year—had fought over the proper definition of “prima facie” within the meaning of the TPPA, given that the term been defined differently across Tennessee law in several circumstances.  Cf. State v. Bryant, 585 S.W.2d 586, 589 (Tenn. 1979) (“‘prima facie’ may be used in various senses, with a range of meaning”).  Resolving this dispute, the relevant portion of the Court of Appeals’ opinion states that:

Tennessee courts have defined the prima facie case standard in other contexts, thus rendering it a term with a well-recognized meaning in the common law. See, e.g., Anderson v. State, 55 Tenn. 13, 14, 1873 WL 5945, at *1 (1873) (“Prima facie evidence is that evidence which is sufficient to establish a fact unless rebutted.”); Union Planters Corp. v. Harwell, 578 S.W.2d 87, 93 (Tenn. Ct. App. 1978) (“As we understand it, a prima facie case is made out when some credible proof … is presented on the issues required to be offered in evidence by a plaintiff for a plaintiff’s recovery.”); Pickard v. Berryman, 142 S.W.2d 764, 769 (Tenn. Ct. App. 1939) (explaining that “prima facie case” “means merely that [the plaintiff’s] evidence, assuming it to be true, is sufficient to prevent his suit being dismissed”); Macon Cnty. v. Dixon, 100 S.W.2d 5, 9 (Tenn. Ct. App. 1936) (“Prima facie evidence is that which, standing alone, unexplained or uncontradicted, is sufficient to maintain the proposition affirmed. It is such as, in judgment of law, is sufficient to establish the fact; and, if not rebutted, remains sufficient for that purpose.”).

Pragnell, 2023 WL 2985261, at *10.

Thus, the prevailing definition of “prima facie” for purposes of Tenn. Code Ann. § 20-17-105(a) and (b) requires that “‘some credible proof’” be presented to support a litigant’s claim.  Id. at *11 (quoting Union Planters Corp., 578 S.W.2d at 93).  The Court of Appeals also held that this standard does not apply to the third step of the TPPA’s burden-shifting framework (regarding a defendant’s ability to establish a valid defense) and remanded for reconsideration of the matter, explaining that:

To the extent that the initial two steps of the dismissal procedure require only a prima facie showing pursuant to the express statutory language, see Tenn. Code Ann. § 20-17-105(c), the rules of statutory construction instruct that we should infer “that if the Legislature had intended to enact a certain provision missing from the statute, then the Legislature would have included the provision. Thus, the missing statutory provision is missing for a reason—the Legislature never meant to include it.” Effler v. Purdue Pharma L.P., 614 S.W.3d 681, 689 (Tenn. 2020). In other words, with respect to establishing a defense to the defamation claim, Defendants would be required to make more than a prima facie demonstration in order to achieve dismissal of the defamation claim.

Id. at *12.

Second, in a blockbuster footnote that bears heavily upon the multibillion-dollar defamation claim pending between SmileDirectClub and NBC Universal, the Court of Appeals held that no inferences are to be drawn in favor of the opposing party at the TPPA stage.  Id. at n.4 (“We note that the TPPA does not state that the evidence must be viewed in the light most favorable to a particular party, as is the case with summary judgment proceedings.”).  This means that—unlike the standard for summary judgment—evidence furnished at the TPPA stage should not be construed liberally by a trial court or in a manner that is favorable to the party furnishing it.  The most significant practical result of this holding is that in public-figure defamation cases—in which plaintiffs must demonstrate actual malice to prevail—a plaintiff must immediately come forward with clear and convincing evidence of actual malice in order to survive dismissal.

Third, the Court of Appeals resolved the standard for frivolity.  The question arose out of the Parties’ dispute over Tenn. Code Ann. § 20-17-107(b), which provides that: “If the court finds that a petition filed under this chapter was frivolous or was filed solely for the purpose of unnecessary delay, and makes specific written findings and conclusions establishing such finding, the court may award to the responding party court costs and reasonable attorney’s fees incurred in opposing the petition.”  Id.  Construing the meaning of “frivolous” for TPPA purposes, the Court of Appeals ruled that a TPPA petition is frivolous when it is “baseless or ‘utterly lacking in an adequate factual predicate as to make the filing of such a [petition] highly unlikely to succeed.”  Pragnell, 2023 WL 2985261, at *15 (quoting Milan Supply Chain Sols., Inc. v. Navistar, Inc., 627 S.W.3d 125, 161 (Tenn. 2021)).  Affirming the trial court’s ruling that the Defendants’ TPPA Petition had not been filed frivolously, the Court of Appeals also concluded (as onlookers had assumed) that a trial court’s determination on the matter is reviewable only for abuse of discretion.

Read the Court of Appeals’ unanimous ruling in Pragnell v. Franklin, No. E2022-00524-COA-R3-CV, 2023 WL 2985261 (Tenn. Ct. App. Apr. 18, 2023), here: https://www.tncourts.gov/sites/default/files/OpinionsPDFVersion/E2022-524.pdf.

Questions about this article?  Contact the author at daniel [at] horwitz.law.

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Happy New Year to the Tennessee Public Participation Act!

First Amendment, Tennessee Public Participation Act

By Daniel A. Horwitz (Republished from the Tennessee Free Speech Blog):

In 2019, Tennessee’s free speech law underwent a sea change.  The Tennessee Public Participation Act—Tennessee’s first-ever meaningful anti-SLAPP law—took effect, ushering in a host of critical protections for people sued for defamation (libel or slander), false light invasion of privacy, business disparagement, or other speech-based torts.

Heading into its third year of existence, it is clear at this point that the Tennessee Public Participation Act is working.  If 2021 is a sign of things to come, Tennessee’s free speech law is also headed in the right direction.

Building on a series of important wins in 2020, the results that the TPPA produced in 2021 cannot be overstated.  To list just a few of them:

In June of 2021, the Tennessee Court of Appeals affirmed an anti-SLAPP judgment—the first ever anti-SLAPP judgment issued in Tennessee—in favor of a Wilson County woman who posted a negative Yelp! review.  The end result was that the thin-skinned doctor who baselessly sued her was ordered to pay a cumulative $75,000.00 cost, fee, and sanctions award for his SLAPP-suit across a pair of cases filed in Wilson County Circuit and General Sessions Court.

In March of 2021—and then again in July 2021—Circuit Courts in separate counties affirmed the constitutionality of the Tennessee Public Participation Act over a Plaintiff’s constitutional challenge.

In December of 2021, the Tennessee Court of Appeals signaled that it would treat the TPPA’s statutory discovery stay seriously, entering an immediate order staying discovery pending appeal upon a defendant’s application for extraordinary appeal on the matter.

Also in December of 2021, SmileDirectClub’s multi-billion dollar SLAPP-suit against NBC Universal was dismissed under the TPPA.

Also in December of 2021, the Circuit Court of Overton County granted several public school parents’ TPPA petitions to dismiss a SLAPP-suit filed by a public school teacher who had been lawfully accused of sexual predation and harassment against students.

Also in December of 2021, the Tennessee Court of Appeals affirmed both an anti-SLAPP judgment and a $39,000 fee and sanctions award issued against a congressional candidate who sued a trio of activists for criticizing him on Facebook.  The Court of Appeals additionally issued appellate sanctions against the candidate for filing a frivolous appeal.

There were some setbacks for the TPPA, though.  Most prominently, the U.S. District Court for the Middle District of Tennessee held for the first time that the Tennessee Public Participation Act does not apply in federal court—one of many reasons why a federal anti-SLAPP law remains essential.  The media’s nasty habit of covering SLAPP-suits only at their inception and hyping the liability that a defendant faces—then failing to follow up once a SLAPP-suit predictably fails—has not improved, either, even when media defendants themselves are the targets.

All considered, however, 2021 was a tremendous year for Tennessee’s nascent anti-SLAPP law.  Here’s to more wins—and more protected speech—in 2022.

Daniel Horwitz is a free speech lawyer who represents clients across Tennessee.

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