Bergenholtz v. Cannata

200 S.W.3d 287, 2006 Tex. App. LEXIS 7256, 2006 WL 2373533
CourtCourt of Appeals of Texas
DecidedAugust 17, 2006
Docket05-05-01288-CV
StatusPublished
Cited by25 cases

This text of 200 S.W.3d 287 (Bergenholtz v. Cannata) 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
Bergenholtz v. Cannata, 200 S.W.3d 287, 2006 Tex. App. LEXIS 7256, 2006 WL 2373533 (Tex. Ct. App. 2006).

Opinion

OPINION

Opinion by

Justice WHITTINGTON.

The trial judge granted appellees’ special appearance and dismissed appellants’ claims against them. In one issue, appellants contend the trial judge erred in ruling appellees are not subject to the trial court’s jurisdiction. We affirm the trial court’s order.

BACKGROUND

Therese Cannata, Alborg, Veiluva and Cannata, L.L.P. (“the Alborg firm”), Can-nata & Feldman, L.L.P. (“the Cannata firm”), and Geoff Spellberg are California lawyers and law firms who represented some or all of appellants in a California lawsuit in which appellants were sued by Interactive Studio Management, L.L.C. (ISM), a California company. Steve Ber-genholtz is a resident of Texas. The other three appellants are Canadian and Texas corporations owned or controlled by Ber-genholtz. In their amended petition in this cause, appellants contend appellees committed legal malpractice in the course of representing appellants in the California litigation. Appellants also contend Canna-ta and the Alborg firm breached fiduciary duties and “acted fraudulently” toward appellants.

Appellees entered a special appearance, arguing the trial court could not exercise personal jurisdiction over them. The trial judge agreed and dismissed the suit against appellees. There is no reporter’s record of the hearing on appellees’ special appearance, and the trial judge did not enter findings of fact and conclusions of law.

Appellants contend appellees purposefully availed themselves of the jurisdiction of Texas courts when they entered into contracts to represent appellants, billed appellants in Texas, and accepted payment from appellants mailed from Texas. Further, Bergenholtz alleges Spellberg’s and Cannata’s activities related to a Texas bankruptcy proceeding constitute purposeful availment of the privilege of conducting business in Texas. In his affidavit, Ber-genholtz alleged “[i]t was Robert Sanford’s [previously a party to this appeal] idea and that of James Quadra of the firm to take the Corporations which are the Plaintiffs in this case and were the Defendants in the ISM case into bankruptcy in Texas.” Spellberg, who represented Bergenholtz in the California litigation at approximately the same time period as Sanford, allegedly told Bergenholtz “the Texas bankruptcy would lead to a quicker settlement with ISM for a lesser amount,” and “would provide an effective strategic tool for resolving the litigation in California.” Spell-berg billed Bergenholtz “for advice and services relating to the bankruptcy and for numerous conversations with Texas counsel about the bankruptcy.” Bergenholtz further stated Spellberg and Cannata *291 “sent or included me on correspondence and e-mails to lawyers in Texas dealing with bankruptcy issues, document production and other issues.”

Bergenholtz alleged Cannata made representations about her previous clients and connections with Texas, and he hired her based on those representations. She communicated with Bergenholtz by e-mail, letter, and telephone. She “entered an appearance in the Texas bankruptcy case for me ... and was active in the bankruptcy matter.” She communicated with Bergenholtz’s Texas bankruptcy lawyers as well as with the trustee in bankruptcy. Bergenholtz also alleged Spellberg had contacts with the bankruptcy trustee, Ber-genholtz’s Texas bankruptcy lawyers, Ber-genholtz’s Texas accountant, and Bergen-holtz’s Texas tax lawyer “all relating to the interconnected cases in California and Texas.”

Bergenholtz also alleged he signed a fee agreement with Cannata’s firm. He paid that firm and Cannata’s subsequent firm fees in accordance with the agreement and paid Spellberg a retainer in response to Spellberg’s instructions by e-mail. Ber-genholtz maintains his actions, including signing the fee agreements, receiving communications and legal advice, and paying the bills for attorneys’ fees, were all taken in Texas. Appellants contend these contacts with Texas support the trial court’s exercise of jurisdiction over appellees.

Spellberg and Cannata also filed affidavits in connection with their special appearances in the trial court. Spellberg alleged he is a resident of California and is licensed to practice law there. He is not licensed to practice law in Texas, has never been a resident or citizen of Texas, has never appeared in a Texas court pro hac vice, and has never maintained a place of business in Texas. He has never owned or leased any property in Texas; he has never maintained any bank accounts, addresses, telephone numbers, or employees in Texas. Spellberg took two depositions in Houston over a decade ago in a lawsuit pending in California in which he represented a California party sued by a Texas company for work that took place in California. Spellberg alleges appellants retained him “solely for the purpose of representing and advising them in th[e] California lawsuit” filed by ISM. He alleges he did not represent appellants in the Texas bankruptcy proceedings. He agreed to represent appellants in the California lawsuit after being contacted by Sanford; he did not solicit appellants’ business. He rendered all legal services to appellants in California. He did not travel to Texas in the course of representing appellants.

Cannata alleges she is a resident of California and is licensed to practice law there. She was born in Texas and lived there until 1968, when she was fourteen years old. Since then, she has not resided in Texas, has never worked in Texas, and is not licensed to practice law in Texas. She has no bank accounts or property in Texas. The two firms with which she has practiced, and which are also appellees in this action, are California limited liability partnerships “engaged in the practice of law exclusively in the State of California.” In 2001 and 2002, a partner in the Alborg firm attended depositions of third-party witnesses in Texas in two actions pending in California not related to the underlying lawsuit; no other travel to Texas by anyone in the firm is alleged or admitted. Cannata represented Bergenholtz in the California lawsuit filed by ISM. She performed all work on the case in California. She did not travel to Texas in connection with her work on the case. During all conversations regarding the case, she was physically located in California, with the *292 exception of one or two calls when she was in the country of El Salvador in July 2002. All correspondence about the case was sent from or received in California. She denies representing to Bergenholtz that she visited Texas for business matters on a regular basis.

STANDARD OF REVIEW

Whether a trial court has personal jurisdiction over a defendant is a question of law. BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex.2002). In reviewing a trial court’s ruling on a special appearance, we examine all the evidence in the record to determine if the nonresident defendant negated all possible grounds for personal jurisdiction. Reiff v. Roy, 115 S.W.3d 700, 705 (Tex.App.-Dallas 2003, pet. denied). When the trial judge does not file findings of fact or conclusions of law, all facts necessary to support the judgment and supported by the evidence are implied. BMC Software Belgium,

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Cite This Page — Counsel Stack

Bluebook (online)
200 S.W.3d 287, 2006 Tex. App. LEXIS 7256, 2006 WL 2373533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bergenholtz-v-cannata-texapp-2006.