“Vindicated”: Wallace Dunn Wins Major Court Victory as Judge Dismisses Matt Coday’s Retaliatory Counterclaim Over HIPAA Allegations
ECTOR COUNTY, Texas – In a significant legal victory, Ector County Hospital District Board Member Wallace Dunn has been vindicated by a court order dismissing a retaliatory counterclaim filed against him by Matt Coday, president of the Oil & Gas Workers Association (OGWA). The dismissal, granted July 30, 2025 by Judge Shrode of the 358th Judicial District Court, marks a critical turning point in a contentious legal battle stemming from Coday’s multi-year campaign accusing Dunn of violating patient privacy laws (HIPAA). Dunn is represented by Krista L. Baughman, partner at Dhillon Law Group.
“For almost three years, I’ve endured relentless, spiteful attacks from the Oil and Gas Workers Association, and it’s President, Matt Coday on social media, the local newspaper, and even at the Odessa City Council meeting.” said Dunn. “This decision is not just a victory for me personally, but a strong message to those who seek to weaponize our legal system to bully and harass others into silence. The battle is not over, as my defamation lawsuit will proceed, and I am confident the truth will prevail and that Coday will be held accountable for conduct that has negatively impacted so many in our community.”
Judge Shrode granted Dunn’s motion to dismiss Coday’s counterclaim under the Texas Citizens Participation Act (TCPA), a statute designed to protect free speech rights against retaliatory litigation. As the prevailing party, the court also authorized Dunn to seek recovery of his attorneys’ fees and costs.
At the same hearing, Judge Shrode dismissed all of Coday’s allegations against the Ector County Hospital District, and accepted the settlement agreement between Coday and the City of Odessa.
Dhillon Law Group Partner Krista L. Baughman emphasized the broader significance of the ruling: “Today’s ruling affirms the essential principle that no individual should fear retribution for speaking out on matters of public importance. By dismissing this retaliatory claim, the court protected not only Mr. Dunn but every citizen who courageously holds powerful people accountable.”
The ongoing defamation lawsuit filed by Dunn against Coday, seeking damages exceeding $250,000, alleges that Coday published a series of damaging falsehoods about Dunn after Dunn resigned from OGWA’s board. Dunn alleges he left due to serious concerns regarding the legitimacy of OGWA.
