Castleman v. Internet Money Limited

The court of appeals erred in holding that the commercial-speech exemption applied so Defendant could not seek expedited dismissal under the Texas Citizens Participation Act (TCPA).Defendant hired Plaintiff, which provided “virtual assistant” services to businesses, to receive and fulfill customer orders placed through Defendant’s website. Defendant later accused Plaintiff of failing to follow its instructions on how to fill those orders and over-ordering products, demanding compensation for lost profits. When Plaintiff refused to pay, Defendant published statements about the parties’ dispute on various online platforms, including a personal blog, YouTube, and social media. Plaintiff sued for defamation. Defendant moved to dismiss the suit under the TCPA. The trial court denied the motion, concluding that the commercial-speech exemption applied. The court of appeals affirmed. The Supreme Court reversed and remanded, holding that the TCPA’s commercial-speech exemption did not apply because Defendant’s allegedly defamatory statements did not arise out of his sale of goods or services or his status as a seller of those goods and services. Rather, Defendant’s statements constituted protected speech warning Plaintiff’s actual or potential customers about the quality of Plaintiff’s services. View "Castleman v. Internet Money Limited" on Justia Law