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### (&aurt ofAppeals Txitlf Itsirtri of(Jkxas at Dallas •,\X

No. 05-95-01727-CV 

### ANGELA M. WOOD, M.D., ET AL., Appeal from the 101st District Court of Appellants Dallas County, Texas. (Tr.Ct.No. 95-1685- E). V. Opinion delivered by Justice Lagarde, 

### JAMES R. MORIARTY, a Professional Justices Maloney and Morris also Corporation D/B/A MORIARTY & participating. ASSOCIATES, ET AL., Appellees JUDGMENT In accordance with this Court's opinion of this date, the judgment of the trial court is AFFIRMED. It is ORDERED that appellees JAMES R. MORIARTY, a Professional Corporation d/b/a Moriarty & Associates, Kathy L. Buchanan, TheDallas Observer, Toni P., Emily P., Deedra F., Michael G., as Next Friend for Michael G., a Minor, Tammy L., James O., Gloria W., Gloria W., as Next Friend for Ryan G., a Minor, Kevin P., Frank J., Stefani R., Frences B., as Next Friend for Frances B., a Minor, Michael H., JeffD., Nikisha C, Curtis M., Debra H., as Next Friend for Hugh H., a Minor, Lela B., Becky R., Norman K., Steven S., Pertriser K., Christy S., Maria M., Ricky B., Matthew W., Peggy S., Amy L., Toni H., Valeria T., Ken F., as Next Friend for Natasha F., a Minor, Jeanne F., Frances A., Caurlos W., Sue S., Personal Representative of Molly S., Kelly S., William M., Robin A., Janet F., Lubirda P., Anne V., Angela R., Kristine K., Glenn T., Pam C, Marcie P., Sherry S., Marianne N., Angela C, Kim N., as Next Friend for Bill W., a Minor, Kelli C, John S., Cindi S., as Next Friend for Amy M., a Minor, Troy B., Honey M., John H., Gregg T., Aimee D., Tiffany H., Michelle A., Sherry C, April R., Linda G., Mary W., Patricia H., Heather C, Todd W., Danny A., Wanda H., as Next Friend for Amanda H., a Minor, Jonathan M., Jason B., Wanda S., as Next Friend for Dionte S., a Minor, Russell W., Eva Renea A., KellyA., Christopher A., David B., Robert B., Amy C, Christine C, Christina 

### D., Merry Jane D., Melissa E., Brian F., Reb G., William J., Jennifer L., Michael M., Joy M., Ransom M., Amy Jordan M., Alton M., Dedra N., Kimberly N., Julie P., Jessie P., Lauren P., Traci P., Andrew Q., Matthew R., Jeffrey R., Christopher Brandon S., James S., Joshua Y., and Monica Y. recover their costs of this appeal from appellants Angela M. 

### Wood, M.D., Gary Lee Etter, M.D., GroverLawlis, M.D., William M. Pederson, M.D., Leslie H. Secrest, M.D., John M. Zimburean, M.D., Larrie W. Arnold, M.D., Bradford M. Goff, M.D., Fred L. Griffin, M.D., Ronald Fleischmann, M.D., Dallas Psychiatric Associates, a Partnership, Angela M. Wood, M.D., P.A., Gary Lee Etter, M.D., P.A.,

### Grover Lawlis, M.D., P.A., William M. Pederson, M.D., P.A., Leslie H. Secrest, M.D., P.A., John M. Zimburean, M.D., P.A., Larrie W. Arnold, M.D., P.A., Bradford M. Goff, M.D., P.A., Fred L. Griffin, M.D., P.A., and Ronald Fleischmann, M.D., P.A., and from Smith & Uloth, P.C. as surety on appellants' cost bond. Judgment entered February 19, 1997.

SUEL JUST

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AFFIRMED, and Opinion Filed February 19, 1597

In The 

### Qltfurt nfAppeals 

## Jftfily Stsirtrt of Qkxas at Balias
No. 05-95-01727-CV ANGELA M. WOOD, M.D., et al., Appellants
V. 

### JAMES R. MORIARTY, P.C., d/b/a MORIARTY & ASSOCIATES, KATHY L. BUCHANAN, DALLAS OBSERVER, TONI P., et al., and EVA RENEA A., et al., Appellees 

### On Appeal from the 101st Judicial District Court Dallas County, Texas Trial Court Cause No. 95-1685-E
OPINION 

### Before Justices Lagarde, Maloney, and Morris Opinion By Justice Lagarde 

### Angela M. Wood, M.D., etal. appeal the trial court's order denying their motion to restrict access to discovery pursuant to rule 76a. See Tex. R. Civ. P. 76a. Appellants bring 

## four points of error contending that the trial court abused its discretion in denying 

## appellants' motion to restrict discovery (i) in failing to determine whether the discovery documentswere courtrecords, (ii) infailing to analyze orapply correctlegalprinciples, and(iii) because no evidence or insufficient evidence supports the trial court's ruling. We overrule the points and affirm the trial court's order.
FACTUAL BACKGROUND Appellants are ten psychiatrists and their professional corporations operating as a partnership, Dallas Psychiatric Associates. From 1987 to 1991, these doctors practiced at BrookhavenPsychiatric Pavilion, which was owned by National MedicalEnterprises. James 

### Moriarty is an attorneywho placed allegedly libelous advertisements in newspapers and on radio stating that appellantshadreceived kickbacks, had overchargedpatients, had charged 

### patients for services not performed, and had physically and mentally abused patients. Moriarty represents about six hundred plaintiffs in a lawsuit against appellants filed in 

### Montgomery County. AfterMoriarty filed theMontgomery County suit, appellants brought this suit against him andKathy Buchanan alleging libel andslander. Appellants asserted as 

### damages, interalia, loss ofincome and patients. During discovery, Moriarty requested that 

### appellants turn over certain personal and business financial records. Appellants filed a motion asking the trial court to limit the scope ofdiscovery under rule ofcivil procedure 

### 166b or torestrict public access tothe records under rule 76a. The Dallas Observer, Toni P., et al., and Eva Renea A., et al.,1 intervened in the suit for purposes of the motion to 

### seal under rule 76a(4). Appellants did not tender the documents to the trial court for in 

### camera review. Following a hearing, the trial court denied appellants' request to seal.
1Toni P., etal. and Eva Renea A., etal. are 105 individuals who were appellants' patients and have suits pending against appellants in Dallas and Montgomery counties.

-2-Pursuant to rule 76a(8), appellants brought this appeal from the trial court's order denying the rule 76a motion. See Tex. R. Civ. P. 76a(8).
RULE 76a Rule 76a of the rules of civil procedure provides that "court records
... are 

### presumed to beopen to thegeneral public " Tex. R. Civ. P. 76a(l). "Court records"
are defined in the rule as, among otherthings, "discovery, not filed ofrecord, concerning 

### matters thathave aprobable adverse effect upon the general public health orsafety." Tex. R. Crv. P. 76a(2)(c). Rule 76a provides: 

### [C]ourt records, as defined in this rule, are presumed to be open to the general public and may be sealed only upon a showing of all of the following: 

### (a) a specific, serious and substantial interest which clearly outweighs: (1) this presumption of openness; 

### (2) any probable adverse effect thatsealing will have upon the general public health or safety; 

### (b) no less restrictive means than sealing records will adequately and effectively protect the specific interest asserted. 

### Tex. R. Civ. P. 76a(l). The party seeking to seal the court records must prove the 

## elements ofrule 76a(l) by apreponderance ofthe evidence. Upjohn Co. v. Freeman, 906 

## S.W.2d 92, 96 (Tex. App.-Dallas 1995, no writ); EliLilly & Co. v. Biffle, 868 S.W.2d 806, 809 (Tex. App.-Dallas 1993, no writ). 

### A trial court may not presume a particular document or group of documents

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### constitutes court records if a party in a rule 76a motion raises the issue ofwhether the 

### discovery inquestion constitutes court records as defined in the rule. Upjohn, 906 S.W.2d at 95-96; EliLilly, 868 S.W.2d at 808. When the issue israised, the trial court must make


### afactual determination ofwhether aspecific document orcategory ofdocuments constitutes court records. Upjohn, 906 S.W.2d at 96; EliLilly, 868 S.W.2d at 808. Wereview the trial court's ruling on the rule 76a motion under an abuse of discretion standard. Upjohn, 906 S.W.2d at 95; Eli Lilly, 868 S.W.2d at 809. The test for an abuse of discretion is not whether the facts present a proper case for the trial court's action. Rather, the test is whether the trial court acted without reference to any guiding rules or principles, or acted in an arbitrary or unreasonable manner. Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241-42 (Tex. 1985), cert, denied, 476 U.S. 1159 (1986); Upjohn, 906 S.W.2d at 95. Rule 76a provides the guiding rules and principles for sealing court records. Upjohn, 906 S.W.2d at 95;Dunshiev. GeneralMotors Corp., 822 S.W.2d 345, 347 (Tex. App.—Beaumont 1992, no writ). An abuse of discretion does not exist when the trial court bases its decision on conflicting evidence. Davis v. Huey, 571 S.W.2d 859, 862 (Tex. 1978); Zmotony v. Phillips, 529 S.W.2d 760, 762 (Tex. 1975); Upjohn, 906 S.W.2d at
95. When we review matters committed to the trial court's discretion, we may not substitute our judgment for that of the trial court. Upjohn, 906 S.W.2d at 95. Even if we would decide the issue differently, we may not disturb the trial court's decision unless it is arbitrary and unreasonable. Id. In a nonjury trial or hearing, the trial judge is the sole

-4-judge of the witnesses' credibility and the weight given their testimony. Id.; Tate v. 

### Commodore County Mut. Ins. Co., 161 S.W.2d 219, 224 (Tex. App.-Dallas 1989, writ denied). JURISDICTION In their first "reply point," appellees assert that this Court lacksjurisdiction over the appeal because appellants contend in their first point of error that the trial court did not determine that the discovery documents were court records. If the documents are not court records, then rule 76a is not applicable. SeeDunshie, 822 S.W.2d at 348; see also Tex. R. Crv. P. 76a(8). Appellants' argument under the point is that the trial court appeared to presume that the records were court records without making a factual determination. 

### Courts ofappeals do havejurisdiction to review this complaint. See Upjohn, 906 S.W.2d at 96; Eli Lilly, 868 S.W.2d at 808. We conclude that we havejurisdiction over the appeal. We overrule appellees' first replypoint.2 

### All of appellants' points of error assert that the trial court erred in denying their motion to restrict use of and access to the discovery documents pursuant to rules 76a and 

### 166b(5)(c) of the Texas Rules ofCivil Procedure. This Court has jurisdiction over the 

### appeal insofar as it concerns the denial of relief under rule 76a. This Court has no 

### jurisdiction over the appeal insofar as itconcerns the denial ofreliefunder rule 166b. See
2

In their argument underthis reply point, appellees cited Tollack v. Allianz ofAmerica Corp., No. 05-91-01943-CV (Tex. App.-Dallas, Aug. 16,1993, writdenied) (notdesignatedforpublication). ThisCourtorderedthattheopinionnotbepublished. Rule 90(i) ofthe rules of appellate procedure provides, "Unpublished opinions shall notbe cited as authority by counsel or by acourt." Tex. R. App. P. 90(i) (emphasis added). Appellees' citation toTollack as authority in supportoftheir argument isin clear violation ofthis rule. Appellees and their counsel are cautioned not toviolate this rule inthe future.

-5-

### Dunshie, 822 S.W.2d at 348. Accordingly, we dismiss appellants' points of error to the extent they do not involve denial of relief under rule 76a.
COURT RECORDS In their first point of error, appellants contend that the trial court abused its discretion in failing to determine that the documents sought to be sealed were court records.
The record shows that the trial court did determine that the documents were court records. In the order granting the Dallas Observer's plea in intervention, the trial court ruled, "All documents filed with the clerk ofthis Court in this action and all unfiled discovery constitute 'court records' as that term is defined and interpreted for purposes of application of Tex. R. Civ. P. 76a."3 Therefore, we overrule appellants' first point of error. 

### In their second point of error,4 appellants contend that no evidence or insufficient 

### evidence supports the trial court's order denying appellants' motion to restrict use of and
access to discovery. Under this point, appellants argue that no evidence or insufficient 

### evidence supports thetrial court's finding that the discovery documents are court records. The order containing the finding that the discovery documents are court records states that 

### the decision was based on the pleadings, the evidence submitted, and the argument of counsel. The briefs refer to a statement of facts from the hearing on the motion to seal, but

3Appellants do not challenge this ruling as overbroad. Accordingly, we do not address this issue. We do not consider and we express no opinion on the propriety of the order. 4On page iv ofappellants' brief, thispoint of errorislisted as thefourth point oferror.

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### no statement of facts has been filed in this case.5 The briefs note that certain exhibits, which are not included in the record before this Court, were submitted to the trial court and admitted into evidence. Appellants had the responsibility to ensure that the statement of factswasfiled. Tex. R. App. P. 53(k); Smith v. Grace, 919 S.W.2d 673, 676 (Tex. App.-Dallas 1996, writ denied), petitionforcert,filed, 65 U.S.L.W. 3489 (U.S. Jan. 2,1997) (No. 96-1057);see also Tex. R. App. P. 50(d). The requirement of a statement of facts applies to issues that require reference to the evidence. Smith, 919 S.W.2d at 677. In the absence of a statement of facts, we must presume that sufficient evidence was introduced in the trial court to support the trial court's decision. Id.; Northeast Wholesale Lumber, Inc. v.LeaderLumber, Inc., 785 S.W.2d 402, 405 (Tex. App.-Dallas 1989, no writ). Appellees state that the trial court admitted defendants' exhibits one through three at the hearing. Appellees state these exhibits were certifiedcopies of criminaljudgments 

### against National Medical Enterprises and Peter Alexis. The other evidence considered by the trial judge was contained in affidavits filed with the district clerk. The affidavits are 

### before this Courtin the transcript and supplemental transcript. Thejudgments introduced at thehearing, however, do not appear to be part of therecord before this Court. Because 

### the parties allege that the trial court received evidence atthe hearing not before this Court 5Before bringing this appeal, appellants filed a motion for leave tofile a writ ofmandamus. That motion was summarily denied. Thestatement offacts from thehearing on themotion to sealwas delivered to theclerk of this Court as an exhibit to the petition for writ ofmandamus presented with the motion for leave to file. See Tex. R. App. P. 121(a)(3), (4). No party to this appeal attempted tomake that statement offacts part ofthe record ofthis appeal orrequested that we take judicial notice ofthestatementoffacts. Accordingly, we donot address the issue ofwhether thestatementoffacts isproperly partoftherecords of thisCourtfollowing the denial of the motion forleave to file thepetition for writ ofmandamus.

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### in the transcript, review of the sufficiency of the evidence inthis case requires review of the statement offacts. Appellants failed in their duty to file the statement of facts in this case. 

### Accordingly, we mustpresume that some evidence andsufficient evidence supports the trial court'sfinding that the documents were courtrecords. Weoverrule appellants' secondpoint
of error. ABUSE OF DISCRETION In their third point of error, appellants contend that the trial court abused its discretion in denying their motion to restrict use of and access to discovery documents.6 The records requested consist of financial and office records including: records of compensation from appellants' associated hospitals and national medical organizations; records of compensation from referrals; stock options from the associated hospitals and national medicalorganizations; billing records; federalincome taxreturns for 1993 and 1994; financial statements; accounting documents; and records showing appellants' income from 

### 1993 through the present. Appellants assert that they have a specific, serious, and substantial interest in these records which outweighs the presumption of openness and any 

### probable adverse effect that sealing will have upon the general public health and safety. 

### Appellants assert thatno less restrictive means than sealing these records will protect their interest in these records. See Tex. R. Civ. P. 76a(l).
6This isthe pointoferror asstated onpage 17 ofappellants' briefimmediately preceding the argument on the point oferror. On page iv of their brief, appellants state the third point of error as: "The trial court abused its discretion infailing tomake a factualdetermination on the motionto restrict use of andaccess to discovery pursuant to TexasRules of Civil Procedure76aand 166b(5)(c)." Appellants do not argue the point as stated on page iv. Accordingly, we address the pointoferror as stated onpage 17.

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Appellants assert a privacy interest in the financial records. Appellants rely onFox
v.Anonymous, 869 S.W.2d 499 (Tex. App.-San Antonio 1993, writ denied). In Fox, the minor plaintiff and his guardian ad litem filed a "friendly" suit in district court for the approval, entry, and enforcement of a settlement agreement of the minor's tort claims resulting from being sexually assaulted while a patient in a mental health facility. Id. at 501. The plaintiff moved to have the records sealed so that his identity and the terms of the settlement agreement would not be disclosed. Id. at 502. The plaintiffintroduced evidence showingthat he would be irreparably harmed by the disclosure of his identity and the terms of the settlement agreement. Id. The trial court granted the plaintiffs motion and ordered the records sealed. On appeal, the San Antonio Court of Appeals found that sufficient 

### evidence existed that the plaintiff had a specific, serious, and substantial interest in concealing his identity and the terms of the settlement agreement because of his severe 

### emotional problems and the risks associated with his rehabilitation and treatment. Id. at 506. The plaintiffmet the other requirements ofrule 76a(l). Id. at 505-06. Thecourt of appeals affirmed the sealing order to theextent that itconcealed theplaintiffs identity and the terms of the settlement agreement. Id. at 507. 

### Fox is an appeal ofan ordergranting asealing order; this case involves review ofan order denying a sealing order. The standards for reviewing the denial of a sealing order 

### differ from those for reviewing the granting of a sealing order.7 Therefore, Fox does not 7Rule 76apermits atrial courttoseal courtrecords only when the movantmakes the showing requiredbyrule 76a. However, rule 76a does not require the trial court to seal the record ifthe movant makes the 76a(l) showing. SeeTex. R. Crv. P. 76a(l) (continued...)

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apply to this case. Appellants also note that the court inFox stated that an unapproved version of rule 76a placedfinancial information on the same level of protection as a sexual assault victim's identity. Appellants assert that the trial court should have ordered the financial records sealed in this case just as the court in Fox ordered sealed the plaintiffs identification and the terms of the settlement agreement. However, in Fox, the court held that the trial court did not err in sealing the records because the plaintiff proved the existence of a specific, serious, and substantial interest by showing that the lack of restrictions on access to the plaintiffs identity and the terms of the settlement agreementwould cause him irreparable harm. Id. at 507. In this case, appellants proved that the records were private, but they 

### presented no evidence showing that the lack of restrictions on access to the financial information would cause them irreparable harm. Thus, Fox does not support appellants' position. 

### Appellants also assert for thefirst time thatdisclosure ofthefinancial records would harm their spouses andchildren by disclosing their social security numbers. Nothing in the record shows that any of the appellants aremarried orhave children. Thus, this argument
lacks merit. 

### Appellants assert that because appellee Moriarty is counsel for plaintiffs in the suit 

### against appellants in Evangeline R., et al. v. NationalMedical Enterprises, et al. pending in 7(...continued) ("courtrecords
... are presumedto be open ... andmaybe sealed onlyupon ashowing ofthe [requirements ofrule76a(l)(a) & (b)]" (emphasis added)).

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### Montgomery County, Moriarty would belikely to useinformation discovered ;nhis capacity as a party in this case in his representation ofplaintiffs inEvangeline R. in their suit against appellants. Appellants argue that the lack of restrictions on the use of the material discovered in this lawsuit against appellants in the other lawsuit would be improper and
cause appellants irreparable harm. Appellants presentno argument or authorities explaining why the use of the information in the Montgomery County suit would be improper. Nor do they explain how the use of the evidence in the Montgomery County suit would cause them irreparable harm. If the evidence is relevant to the Montgomery County suit, then, 

### presumably, the same information is subject to discovery in that suit. SeeTex. R. Civ. P. 166b(2)(a) ("Parties may obtain discovery regarding any matter which is relevant to the 

### subject matter in the pending action ...."). Appellants have not shown that anyexisting orders limiting discovery in the Montgomery County suit would prevent appellees from obtaining this information during the discovery procedures in the Montgomery County suit or that the lack ofrestrictions on the use ofdiscovery in this casewould harm them in their 

### defense of the Montgomery County suit. Thus, even though appellants asserted in their 

### motion thatthey would be irreparably harmed by the lack ofrestrictions on theuse of the documents, they presented no evidence in support of this assertion. 

### Appellants' failure tomake any showing that the lack ofrestrictions on the use ofor access to the documents would harm them supports the trial court's finding that: 

### the public interest andright to know the contents ofPlaintiffs' discovery responses in this lawsuit outweigh Plaintiffs' interest 

### in the privacy of such records. Plaintiffs have not shown a

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### specific, serious, andsubstantialinterestwhich clearly outweighs the presumption of openness of court records and the probable 

### adverse effect that sealing will have upon the general public health and safety. 

### Accordingly, we conclude that the trial court did not abuse its discretion in denying appellants' motion to restrict use of and access to discovery documents. We overrule appellants' third point of error. In their fourth point of error,8 appellants contend that the trial court erred in failing to analyze or apply the correct legal principles in denying appellants' motion to restrict use of and access to discovery. Appellants' argument under this point appears to be an attempt to incorporate their arguments from the first two points of error. Because we have overruled those points of error, we overrule appellants' fourth point of error.

1Onpage iv of appellants' brief, this point of error is listedas the second point of error.

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### We affirm the trial court's order denying appellants' motion to seal.

Publish Tex. R. App. P. 90 951727F.P05

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