Leiby Goldberger Et Al. v. Thomas J. Scott Et Al.

This is an appeal from the denial of a petition to dismiss under the Tennessee Public Participation Act (“TPPA”), Tenn. Code Ann. §§ 20-17-101 to -110. The defendantpetitioner asserted that this action was filed by the plaintiffs in response to his “exercise of the right of free speech,” which the TPPA defines as “communication made in connection with a matter of public concern.” Specifically, the defendant-petitioner asserted that he was exercising his right of free speech regarding a matter of public concern when he made public the plaintiffs’ failure to disclose their involvement in prior franchise litigation and regulatory actions as required by franchising laws. The trial court denied the petition, finding that the TPPA did not apply because the claims did not involve issues or matters of public concern and free speech as referenced in the TPPA. This appeal followed. We respectfully disagree with this finding. We conclude that the defendant-petitioner presented prima facie evidence that the plaintiffs commenced this action in response to the defendantpetitioner’s exercise of free speech on a matter of public concern related to goods, products, or services in the marketplace. Specifically, the defendant-petitioner’s public dissemination of information via a website alleging that the plaintiffs were continuing to market franchises while withholding material information required to be disclosed by the Federal Trade Commission Franchise Rule. See 16 C.F.R. pt. 436. Accordingly, we reverse the judgment of the trial court and remand for further proceedings.