Justia Texas Supreme Court Opinion Summaries

Articles Posted in Professional Malpractice & Ethics
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Plaintiff sued Defendants, attorneys Eric Turton and Oscar Gonzalez and the Law Office of Oscar C. Gonzalez, alleging that they misappropriated $75,000 in trust funds that Turton received after settling a case on Plaintiff’s behalf. The jury found that all three defendants were engaged in a joint enterprise and a joint venture with respect to Plaintiff’s case and committed various torts in relation to Plaintiff. In response to a proportionate-responsibility question, the jury assigned forty percent to Turton, thirty percent to Gonzalez, and thirty percent to the Law Office. The trial court entered judgment holding all three defendants jointly and severally liable for actual damages, pre-judgment interest, additional Texas Deceptive Trade Practices and Consumer Protection Act damages, and attorney’s fees. Gonzalez and the Law Office appealed. The court of appeals concluded that Plaintiff could only recover for professional negligence, which amounted to $77,500 in actual damages. The court’s opinion did not address the jury’s proportionate-responsibility findings but nonetheless applied those findings in its judgment, ordering Gonzalez and the Law Firm to each pay Sloan $23,250. The Supreme Court reversed, holding that the court of appeals erred by failing to address the sufficiency of the evidence of a joint enterprise or joint venture or the legal implications of those findings. Remanded. View "Sloan v. Law Office of Oscar C. Gonzalez, Inc." on Justia Law

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Plaintiff was working for a BP Amoco Chemical Company (BP) contractor in 2005 when BP's Texas City refinery exploded, killing fifteen workers and injuring many others. Plaintiff signed a power of attorney retaining William Wells to represent him on any claims he had against BP arising from the explosion. In order to increase the settlement in this and three other cases, Wells associated Ronald and Kevin Krist and the Krist Law Firm as additional counsel. After a settlement was obtained, Plaintiff and his wife brought this suit against Wells, the Krists, and the Krist Law Firm (collectively, Attorneys), claiming that the Attorneys failed to obtain an adequate settlement for both plaintiffs. The trial court granted summary judgment for the Attorneys, and the court of appeals affirmed, finding that Plaintiffs had not presented competent evidence of damages. The Supreme Court affirmed, holding (1) an affidavit did not raise a genuine issue of material fact on malpractice damages; (2) discovery disputes in the trial court did not warrant denial of summary judgment on the issue of damages; and (3) the lay testimony of Plaintiffs did not raise a genuine issue of material fact on malpractice damages.View "Elizondo v. Krist" on Justia Law

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Respondent sued Petitioner for providing deficient geotechnical engineering services. Respondent attached to its petition an affidavit it believed complied with Tex Civ. Prac. & Rem. Code 150.002, which required that Respondent in this case file an affidavit attesting to the claim's merit. The trial court denied Petitioner's motion for dismissal on the ground that the affidavit was deficient, and Petitioner appealed. Before the appeal could be decided, Respondent nonsuited its claims against Petitioner. The court of appeals held that the nonsuit mooted the appeal. Petitioner brought a petition for review. The Supreme Court reversed, holding that Respondent's nonsuit did not moot Petitioner's appeal. Remanded. View "CTL/Thompson Tex., LLC v. Starwood Homeowner's Ass'n" on Justia Law

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Petitioner filed suit against respondent for breach of contract and breach of fiduciary duty. Respondent had been employed by petitioner since 1983 and rose to become a managing director. In 2005, respondent signed a Non-Solicitation Agreement and notice form stating that he wanted to exercise a stock option to acquire 3000 shares of stock of petitioner's parent company. At issue was whether a covenant not to compete signed by a valued employee in consideration for stock options, designed to give the employee a greater stake in the company's performance, was unenforceable as a matter of law because the stock options did not give rise to an interest in restraining competition. The court held that, under the terms of the Covenants Not to Compete Act (Act), Tex. Bus. & Com. Code 15.50, 52, the consideration for the noncompete agreement (stock options) was reasonably related to the company's interest in protecting its goodwill, a business interest the Act recognized as worthy of protection. Therefore, the noncompete was not unenforceable on that basis. Accordingly, the court reversed the court of appeal's judgment and remanded to the trial court for further proceedings. View "Marsh USA Inc., et al. v. Cook" on Justia Law