Texas Panel Says Contract Talks Aren't Protected Free Speech

Law360 (June 1, 2020, 4:15 PM EDT) -- Investment company United Development Funding LP can't escape a Texas developer's $10 million business interference lawsuit under a state free speech protection law because communications about the developer's contracts don't address a public concern, a Texas appellate panel ruled.

A three-judge Fifth Court of Appeals panel found Friday that United Development's communications with Megatel Homes III LLC about two contracts to buy and develop lots in the Dallas area were not protected by the Texas Citizens Participation Act because they were aimed at a limited business audience and involved a private contract. The act provides a mechanism for defendants to quickly...

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