1/15/2016 2:11:46 PM Chris Daniel - District Clerk Harris County Envelope No. 8642521 By: Kenya Kossie Filed: 1/15/2016 1:29:22 PM CAUSE NO. 2015-03744 SUSANA KNIGHT § § § § § v. HARRIS COUNTY, TEXAS 333RD JUDICIAL DISTRICT ist ric t C ler k PAUL NUGENT IN THE DISTRICT COURT OF DEFENDANT PAUL NUGENT’S MOTION FOR SUMMARY JUDGMENT To The Judge: l D This motion is filed as a no evidence motion for summary judgment under TRCP 166a(i). Da I. nie Defendant requests that the Court take judicial notice of its file. hr is THE BACKGROUND FACTS Knight first sued Nugent in Fort Bend County, Texas, but dismissed her claims just prior to a summary judgment hearing. 2. Knight was engaged in extremely contentious, complex and protracted divorce litigation, which included various business entities joined as third-party defendants, a companion mandamus proceeding, and interlocutory appeals to the 14th Court of Appeals. The case was active in the 434th Court for over four and a half years and the voluminous case file has 365 docket entries. 3. Knight cycled through multiple attorneys during her divorce proceedings. She initially hired Dennis Kelly, quickly became dissatisfied with him, and he withdrew. Plaintiff then hired James P. Smith and Marty Carden. Smith and Carden performed substantial legal services on Plaintiff’s behalf, but she was still not content and complained. Smith withdrew and Carden also filed a Motion For Withdrawal stating he “is unable to communicate effectively with Susana Nery Knight in a manner consistent with good attorney-client relations.” Carden ultimately remained as counsel, however, and Plaintiff hired Paul Nugent and Steven Rocket Rosen to assist Carden. Plaintiff also hired Pamela George to assist with the appellate issues. Plaintiff then hired David Chaumette, discharged Pamela George, and, shortly thereafter, abruptly discharged Nugent and Rosen. Plaintiff next discharged Chaumette and hired Joan Jenkins. Un of fic ial C op y O ffic e of C 1. 4. Knight eventually settled her divorce case and an agreed decree was entered on or about June 24, 2014. 1 5. Knight hired eight different attorneys and has sued three of the eight attorneys, making various claims seeking the return of all legal fees paid to those attorneys. II. NO EVIDENCE MOTION ist ric t C ler k A. Summary Paul Nugent was one of Plaintiff’s attorneys, from November of 2011 through August of 2012, in the underlying divorce case. Plaintiff sued Paul Nugent for (1) negligence, (2) breach of l D contract, and (3) breach of fiduciary duty -- seeking fee forfeiture and punitive damages. There nie is no dispute that Plaintiff settled her underlying divorce case with different counsel of record. Da In support of this motion, Nugent shows that there is no evidence of the required is elements to prove any of the following claims asserted by Knight: C hr (1) that Paul Nugent was negligent in his representation of Plaintiff, or that he committed e of any act of legal malpractice; ffic (2) that Paul Nugent breached his contract with Plaintiff; O (3) that Paul Nugent breached his fiduciary duty to Plaintiff, or op y (4) that his fee agreement with Knight was unconscionable. ial C Based on the foregoing, Paul Nugent is entitled to summary judgment, under TRCP fic 166a(i), on all cause of action asserted by Plaintiff as set forth below. Un of B. Argument and Authority 1. Negligence (or legal malpractice) A claim for “negligence” in representing a client sounds in legal malpractice only. 1 Plaintiff must proved that Paul Nugent failed to exercise “that degree of care, skill and diligence 1 Isaacs v. Schleier, 356 S.W.3d 548, 556 (Tex. App.—Texarkana 2011, pet. denied). 2 that professionals of ordinary skill and knowledge commonly possess and exercise” 2 in representing Plaintiff in the underlying divorce case. Even if Plaintiff could prove that there was a breach of the standard of care owed to her, “[t]o prevail on a legal malpractice claim, the suffered damages.” 3 ist ric t C ler k plaintiff must prove … the breach proximately caused the plaintiff's injury, and the plaintiff “Breach of the standard of care and causation are separate inquiries, and an abundance of evidence as to one cannot substitute for a deficiency of evidence as to the other.” 4 “Thus, even l D when negligence is admitted, causation is not presumed.” 5 nie “The general measure of damages in a legal malpractice case is the difference between Da the amount the plaintiff probably would have recovered in the absence of malpractice, and the hr is amount recovered,” though in some cases “the measure of damages may be generalized to the of e but for the attorney's negligence.” 6 C difference between the result obtained for the client and the result that would have been obtained ffic Plaintiff failed to even assert that she settled her divorce case for less money because of op y O Nugent’s alleged negligence or malpractice. Even if she had, Plaintiff has presented no evidence C of either damages or causation. As such, her negligence / malpractice claim fails as a matter of ial law. Un of fic Plaintiff claims Nugent was negligent because: 1. Allegation: Nugent did not obtain necessary valuations of the marital estate. 2 Id. 3 Thompson & Knight LLP v. Patriot Exploration, LLC, 444 S.W.3d 157, 163 (Tex. App. Dallas 2014, no pet.) (citing Akin, Gump, Strauss, Hauer & Feld, L.L.P. v. Nat'l Dev. & Research Corp., 299 S.W.3d 106, 112 (Tex. 2009); Peeler v. Hughes & Luce, 909 S.W.2d 494, 496 (Tex. 1995)). 4 Thompson & Knight LLP, 444 S.W.3d at 163 (citing Alexander v. Turtur & Associates, Inc., 146 S.W.3d 113, 119 (Tex. 2004)). 5 Thompson & Knight LLP, 444 S.W.3d at 163 (citing Haynes & Boone v. Bowser Bouldin Ltd., 896 S.W.2d 179, 181-82 (Tex. 1995), abrogated on other grounds by Ford Motor Co. v. Ledesma, 242 S.W.3d 32, 45-46 (Tex. 2007)). 6 Thompson & Knight LLP, 444 S.W.3d at 163. 3 Response: There is no evidence that such evaluations were not properly obtained in this case. Again, there is no evidence that this alleged failure was the proximate cause of damages. Knight has not asserted that she settled her divorce case for less money because of this allegation, nor has she produced any evidence of such an assertion. ist ric t C ler k 2. Allegation: Nugent did not advise Knight that a third party action against The Knight Corp was not necessary. Da nie l D Response: There is no evidence that Nugent was even the attorney of record who brought The Knight Corp. into the divorce case, as a third party. There is no evidence that after the trial court denied the Knight Corp.’s Special Appearance, that a reasonably prudent lawyer, taking over the case (post Special Appearance), would have asked the trial Court to reverse its own decision to maintain jurisdiction over The Knight Corp. Finally, there is also no evidence that adding the Knight Corp to the divorce action was the proximate cause of damages to Knight. Again, Knight does not assert that she settled her divorce case for less money because of this allegation, nor has she produced any evidence of such an assertion. hr is 3. Allegation: Nugent failed to advise Knight that Texas Courts rarely uphold general jurisdiction in Texas. Un of fic ial C op y O ffic e of C Response: This allegation is just a rephrasing of the Allegation #2 above. There is no evidence that Nugent was the attorney of record who brought The Knight Corp. into the divorce case, as a third party. There is no evidence that after the trial court denied the Knight Corp.’s Special Appearance, that a reasonably prudent lawyer, taking over the case post Special Appearance, would have told his client that 1.) both the trial court and prior counsel had erred in adding or permitting a third party Defendant; and that 2.) the proper procedure was to ask the trial Court to reverse its own decision to maintain jurisdiction over The Knight Corp. while the appeal of the Special Appearance was pending. Finally, there is also no evidence that Nugent’s alleged failure to advise Knight regarding how Texas appellate courts might rule on jurisdictional issues related to special appearances, was the proximate cause of damages to Knight. Once more, Knight does not assert that she settled her divorce case for less money because of this allegation, nor does she provide any evidence to prove this contention. In summary, there is no evidence of the following elements necessary to establish a cause of action for negligence or legal malpractice -- that Paul Nugent breached his duty to Knight or failed to exercise “that degree of care, skill and diligence that professionals or ordinary skill and knowledge commonly possess and exercise” in representing Plaintiff in the underlying divorce. 4 Moreover, there is no evidence that any alleged breach of duty by Paul Nugent was the proximate cause of any damages to Plaintiff. There is no evidence that there is a difference between the amount Plaintiff probably would have recovered in the absence of malpractice, and the amount actually recovered, nor is there any evidence as to the difference between the result ist ric t C ler k obtained for Plaintiff and the result that would have been obtained but for Defendant’s alleged negligence. Paul Nugent is therefore entitled to summary judgment on Plaintiff’s cause of action for l D negligence or legal malpractice, on each of the independent aforementioned grounds. nie 2. Breach of Contract Da Texas law does not permit a Plaintiff to fracture or divide her legal malpractice claims hr is into additional causes of action, and, therefore, a legal malpractice claim cannot be relabeled or C split into a claim for breach of contract. 7 Simply put, Plaintiff is prohibited from asserting a e of claim for breach of contract based upon Nugent’s performance as a lawyer as a matter of law. It ffic is simply an improper and invalid legal theory in this case. op y O Just as with her negligence/malpractice claims, Plaintiff failed to assert that she settled C her claims for less money, due to any alleged breach of contract. Even if she had alleged such ial damages, Plaintiff has put forth no evidence of such. “Damages to the claimant resulting from fic the alleged breach is one of the essential elements of a breach-of-contract claim,” and Plaintiff Un of cannot succeed without such evidence.” 8 As such, there is no evidence that Paul Nugent breached the terms of the parties’ contract, no evidence that said breach caused damages to Knight, and no evidence of the measure of such 7 Isaacs v. Schleier, 356 S.W.3d at 556. 8 Garza v. Lone Star Nat'l Bank, 2012 Tex. App. LEXIS 9585, 8 (Tex. App.—Corpus Christi 2012, no pet.); see also WTG Gas Processing, L.P. v. ConocoPhillips Co., 309 S.W.3d 635, 643 (Tex. App.—Houston [14th Dist.] 2010, pet. denied); B.Z.B., Inc. v. Clark, No. 14-11-00056-CV, 2012 Tex. App. LEXIS 853, 2012 WL 353783, 2 (Tex. App.—Houston [14th Dist.] 2012, no pet.) (mem. op.). 5 damages. With no evidence of any of the essential elements, Nugent would be entitled to summary judgment on Plaintiff’s breach of contract claim, even if Plaintiff were allowed to assert it in complete opposition to the no-fracturing rule. 3. Breach of Fiduciary Duty ist ric t C ler k The focus of a breach of fiduciary duty claim against a lawyer is whether the attorney obtained an improper benefit from representing a client, through self dealing or taking advantage of the client’s trust. 9 In this case, Plaintiff pleads that Nugent breached his fiduciary duty by nie traditional legal work necessary to conclude the divorce.” l D charging and exhausting a $100,000.00 retainer while “performing little or no meaningful Da A party asserting that a contract is unconscionable bears the burden of proof. 10 Whether In order to prove unconscionability, Plaintiff must prove that the circumstances C law. 11 hr is a contract is unconscionable or contrary to public policy at the time it is formed is a question of e of surrounding formation or fairness must be “sufficiently shocking or gross” before the court will ffic intercede. 12 op y O There is no evidence that in this case that (1) Nugent breached his fiduciary duty to C Knight, (2) that Nugent was not qualified to aptly handle the underlying divorce case, or (3) that ial the fee charged by Nugent was sufficiently shocking or gross under the existing circumstances. Un of fic There is no evidence that Nugent performed little or no meaningful legal work, under all relevant circumstances, in the underlying divorce representation. Knight’s conclusory allegations, are not evidence in and of themselves, and have no legal significance. 9 Id., at 559. 10 Royston, Rayzor, Vickery & Williams, L.L.P. v. Lopez, 2013 Tex. App. LEXIS 7843, 15 (Tex. App. Corpus Christi 2013, pet filed.). 11 Hoover Slovacek LLP v. Walton, 206 S.W.3d 557, 562 (Tex. 2006); Royston, Rayzor, Vickery & Williams, L.L.P., at 34; see also Ski River Dev., Inc. v. McCalla, 167 S.W.3d 121, 136 (Tex. App.—Waco 2005, pet. denied). 12 Royston, Rayzor, Vickery & Williams, L.L.P., at 34; see LeBlanc v. Lange, 365 S.W.3d 70, 88 (Tex. App.—Houston [1st Dist.] 2011, no pet.). 6 There is no evidence of the required element of self-dealing or taking advantage of the client’s trust in order to support a claim for breach of fiduciary duty. The mere fact that a renowned and highly sought after trial attorney charged a significant fee to represent a client is not on its face self-dealing nor does it constitute evidence of taking advantage of a client’s trust. ist ric t C ler k Knight contends that the fee was unconscionable and unreasonable because of her allegation that Nugent had no expertise in handing family law cases at the time he accepted employment. Her allegation is sophistry. The fact that Nugent practices primarily criminal law is l D meaningless rhetoric -- because it has no legal significance regarding the issue of whether nie Nugent breached his duty to Plaintiff by accepting the case and charging her accordingly. If that Da were true, the general practitioner would no longer exist. hr is There is also no evidence that Nugent’s decision to support the trial court’s judgment in C favor of Plaintiff, against the Knight Companies, was motivated by his own self-interest or that e of his fees were unreasonable, considering his trial experience. There is no evidence that Nugent ffic subordinated Plaintiff’s interest to his own, retained the client’s funds, engaged in self-dealing, op y O improperly used client confidences, failed to disclose conflicts of interest, or made any C misrepresentations to achieve these ends or any other. ial Because there is no evidence of any of the aforementioned elements of breach of Un of fic fiduciary duty, and there is no evidence that the fee was unconscionable, Paul Nugent is entitled to summary judgment under 166a (i) on this claim as well. 4. Punitive Damages Plaintiff cannot prevail on any cause of action pled, and because there is no evidence that Defendant acted wantonly or maliciously, Defendant is also entitled to summary judgment on Plaintiff’s claim for punitive damages. No legal theory asserted by Plaintiff supports a claim for 7 punitive damages. 5. Attorney’s fees and Fee forfeiture Attorney’s fees are not recoverable in a cause of action for negligence 13 (i.e. malpractice) or for breach of fiduciary duty. 14 Because there is also no cause of action for breach of contract, ist ric t C ler k under the no-fracturing rule, 15 and because there is no evidence supporting breach of contract, Plaintiff cannot recover her attorney’s fees in this case. Furthermore, fee forfeiture is a remedy and not a cause of action. Because Nugent is l D entitled to summary judgment on all claims asserted by Knight, Nugent is entitled to summary Da III. nie judgment on the claim for fee forfeiture. hr is CONCLUSION C Based on the foregoing, Defendant Paul Nugent is entitled to summary judgment, against Un of fic ial C op y O ffic e of Plaintiff, on all causes of Plaintiff’s claims, under Tex. R. Civ. Pro. TRCP 166a (i). RESPECTFULLY SUBMITTED, /s/ Lawrence Rothenberg LAWRENCE ROTHENBERG TBA#: 17316500 9525 Katy Freeway, Suite 300 Houston, Texas 77024 Tel: (713) 784-1491 Fax: (713) 465-2224 Email: rothenber2@gmail.com Attorney for DEFENDANT PAUL NUGENT 13 Ford Motor Co. v. Garcia, 363 S.W.3d 573, 577 (Tex. 2012). 14 McCullough v. Scarbrough, Medlin & Assocs., 435 S.W.3d 871, 918(Tex. App.—Dallas 2014, pet. denied) 15 Isaacs v. Schleier, 356 S.W.3d at 556. 8 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing instrument was sent to all counsel of record by facsimile transmission or by E-service in full compliance with Rule 21a of ist ric t C ler k the TRCP on January 15, 2016. Un of fic ial C op y O ffic e of C hr is Da nie l D /s/ Lawrence Rothenberg LAWRENCE ROTHENBERG 9