Anita F. Kawaja v. Derek U. Obialo

CourtCourt of Appeals of Texas
DecidedNovember 26, 2024
Docket01-21-00519-CV
StatusPublished

This text of Anita F. Kawaja v. Derek U. Obialo (Anita F. Kawaja v. Derek U. Obialo) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anita F. Kawaja v. Derek U. Obialo, (Tex. Ct. App. 2024).

Opinion

Opinion issued November 26, 2024

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-21-00519-CV ——————————— ANITA F. KAWAJA, Appellant V. DEREK U. OBIALO, Appellee

On Appeal from the 55th District Court Harris County, Texas Trial Court Case No. 2021-18043

MEMORANDUM OPINION ON REHEARING

This is an interlocutory appeal from the denial by operation of law of appellant

Anita F. Kawaja’s motion to dismiss under the Texas Citizens Participation Act. We

previously dismissed this appeal. See Kawaja v. Obialo, No. 01-21-00519-CV, 2023

WL 3183319, at *1 (Tex. App.—Houston [1st Dist.] May 2, 2023, no pet.). On July 6, 2023, we granted Kawaja’s motion for rehearing. We withdraw our opinion

and judgment of May 2, 2023, and issue this memorandum opinion and judgment in

their stead.

On rehearing, we reaffirm our earlier holding that the trial court’s order

granting the TCPA motion is void. We further conclude that Kawaja timely appealed

the denial of her TCPA motion by operation of law, and we conclude that Obialo’s

claims are barred by the doctrine of attorney immunity. We reverse the denial by

operation of law of Kawaja’s motion to dismiss under the TCPA, we render

judgment dismissing Obialo’s claims, and we remand to the trial court for entry of

judgment including a determination of court costs and reasonable attorney’s fees in

accordance with section 27.009(a)(1) of the Texas Civil Practice and Remedies

Code.

Background

I. Obialo represented Jerald Brown in a business dispute.

Attorney and appellee Derek Obialo represented Gerald Brown in a civil

lawsuit filed in 2015 against Brown’s former business partner, Anthony Sueing,

regarding the entities in which Brown alleged an ownership interest: Frontline

Recovery and Consulting, Inc. (“FRC”), Frontline Recovery and Consulting North,

Inc. (“FRCN”), and Momentum Marketing Group. In August 2018, after a bench

trial, the trial court rendered judgment in Brown’s favor for a total of approximately

2 $400,000.1 Obialo has alleged that his contingency fee agreement with Brown

entitled him to 50% of the gross award ($198,800.21) plus expenses of $33,747.25.

After entry of judgment, Obialo instituted collection efforts, recovering $148,842.46

through a bank account garnishment proceeding. When the judgment debtors

became aware of the garnishment of funds in their bank accounts, they appealed the

judgment and hired appellant, Anita Fred Kawaja, as appellate counsel. The trial

court ordered that the garnishment proceeds be deposited in the court’s registry as

security for the appeal. The parties filed their original opening briefs in May and

June 2019, and both the judgment debtors and Brown filed amended briefs in

September and October 2020. See https://search.txcourts.gov/Case.aspx?cn=01-18-

00939-CV&coa=coa01 (last visited November 12, 2024).

In December 2020, Kawaja emailed Obialo, with an offer from her clients to

settle Brown’s claims for $10,000. Obialo forwarded the email to Brown with a

message that said, simply: “see below.” Brown responded, questioning what that

offer meant specifically for Obialo’s attorney’s fees and why the case was lingering

without any payment of the judgment. Brown wrote: “I was honestly under the

impression that this case would have been over by now. I did not know that we will

be waiting this long., I have been expecting to hear from you quite some time now

1 The judgment was for a combined total of $397,601.04. This number included $55,000 in attorney’s fees from Frontline Recovery and Consulting, Inc., and $45,000 in attorney’s fees from Frontline Recovery and Consulting North, Inc. 3 since the last time I talk to you.” Brown also mentioned distressing personal news—

that both his 10-year-old son and his 84-year-old grandmother had died during the

year, he had been suffering from health issues (seizures), and he was experiencing

high levels of stress, in part, because the lawsuit was unresolved. Obialo responded

that the offer was “inadequate” and not “serious.” He told Brown: “I will decline it

unless they have a more serious offer, we should not make any counteroffer—my

opinion. No cause for alarm. We keep pushing.” Brown responded, expressing

surprise and confusion about what steps were remained in litigation, questioning

how much longer it would take, and asking what else Obialo could do to speed the

case along. Brown said: “Please help me understand. As I said previously, I had a

total of nine seizures. I need a figurative date that this will be over with or I’m about

ready to concede.”

Obialo alleged that in January 2021, Brown called him several times and told

him that Kawaja and Sueing had instructed him to fire Obialo. Obialo alleged that

he told Brown that firing him, keeping the proceeds of the judgment, and not paying

legal fees could constitute bribery by the judgment debtors and theft of services by

Brown. Obialo urged Brown not to proceed, but, according to Obialo’s live pleading,

Brown “responded that he did not care” about Obialo. On January 13, 2020, Brown

texted Obialo, threatening to report him to the State Bar, and saying: “You’re playing

games to say that everything is out of your hands is a lie. You as my representative

4 can file a motion to drop and dismiss all charges that I brought up against him.”

According to Obialo, Brown also asked him to “dismiss the appeal,” which Obialo

could not do because Brown was the appellee.

On January 20, 2021, at 2:46 PM, Brown emailed Obialo, saying:

Effective immediately, I am terminating the attorney-client relationship for all purposes.

I have asked you repeatedly to dismiss all matters you are representing me on and you have refused to do so.

Any work you perform after this communication is not authorized.

Please advise as to costs first, but make my file available to me within 14 days of this notice.

On February 3, 2021, this Court set the judgment debtors’ appeal for

submission on March 24, 2021. About a week later, Brown filed in the trial court a

signed “Notice of Attorney Client Termination,” and an unsigned “Release of

Judgment Lien.”

On February 25, 2021, Brown filed a second “Notice of Attorney Client

Termination,” which also included his address and contact information. He also filed

a signed “Release of Judgment Lien” the same day. The Release said, in part:

Since Plaintiff [Brown] and Defendants [judgment debtors] have agreed to fully and finally settle all matters of controversy between them in this matter; since JERALD A. BROWN will be contemporaneously notifying the Courts of Appeals in Appeal No. 01- 18-00939-CV of his nonsuit and since Defendants in said Judgment, has paid to the satisfaction of Plaintiff in said Judgment. The judgment has been satisfied to JERALD A. BROWN, the party entitled to receive

5 payment of the judgment and, accordingly, JERALD A. BROWN does hereby release all liens existing on any property and monies of FRONTLINE RECOVERY AND CONSULTING, INC, FRONTLINE RECOVER AND CONSULTING NORTH, INC, AND ANTHONY R. SUEING, SR. held in the court registry. 2

The same day that Brown filed notices in the trial court indicating that he had

terminated Obialo and settled and released his claims against the judgment debtors,

an agreed motion to dismiss the appeal (cause number 01-18-00939-CV) was filed

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