Bradley v. Phillips Petroleum Co.

527 F. Supp. 2d 661, 2007 U.S. Dist. LEXIS 92981, 2007 WL 4443877
District Court, S.D. Texas·Decided December 18, 2007·No. Civil Action H-05-3912·Published·Cited by 3 cases

Opinion

MEMORANDUM AND ORDER (JONES PLAINTIFFS)

NANCY F. ATLAS, District Judge.

This commercial and tort case is presently in a unique procedural posture. There currently are thirty-five Plaintiffs who include nine original plaintiffs and numerous intervenors. Plaintiffs have divided themselves into two camps, each seeking representation by different attorneys. 1 There are several motions pending *664 before the Court that are relevant to one of these groups.

First is a Motion for Leave to File a Fourth Amended Petition (“Motion to Amend”) [Doc. # 119], supplemented by a “Memorandum in Support” [Doc. # 127], filed by attorney Grover Hankins on behalf of Plaintiffs Adrienne Bradley, Wayland Jackson, Scottie Jones, Lawrence Neloms, Shirley D. Oliver, Edward O’Brien, Donald Phlegm, Emma Phlegm, Marie Rodriguez, and Mario Rodriguez (collectively, the “Jones Plaintiffs”). 2 Defendants Paper Allied-Industrial, Chemical and Energy Workers International (“PACE International”), Local 4227 Paper Allied-Industrial, Chemical and Energy Workers International (“PACE Local”), Roby G. Plemons, David Taylor, Joseph Campbell, Melvin Byer, James Lefton, B.G. Martinez, and Maxwell Hickerson (collectively, the “Union Defendants”) have responded [Doc. # 149]. Upon review of the Motion to Amend, the supporting attachments and Memorandum, and Defendants’ Response, as well as all pertinent matters of record, and applicable law, the Court concludes that Jones Plaintiffs’ Motion to Amend is denied.

In addition, all named Defendants 3 collectively have filed a Motion to Dismiss the Jones Plaintiffs’ Claims for Failure to Comply with Court Orders and Rules of Civil Procedure (“Motion to Dismiss”) [Doc. # 124], The Jones Plaintiffs have responded [Doc. # 152], Although this motion to dismiss does not directly address the pending motion to amend, it does seek dismissal of all claims asserted by the Jones Plaintiffs, including those in their proposed “Second Amended Complaint” [Doc. # 112] and, should the pending motion to amend be granted, those in their proposed Fourth Amended Complaint [Doc. # 119-3]. The Motion to Dismiss is granted, consistent with the rulings herein and those in the Court’s Memorandum and Order of Nov. 18, 2007 [Doc. # 168] (the “Curry Memorandum”), addressing the Curry Plaintiffs’ Fourth Amended Complaint [Doc. # 116], discussed infra.

I. BACKGROUND

The factual record is set out in more detail in the Court’s Memorandum and Order of March 22, 2007, 484 F.Supp.2d 604 (“March 2007 Order”) [Doc. #89]. Briefly, this controversy centers around Defendants’ response to an industrial accident that occurred at Phillips Chemical Company’s (“Phillips”) Pasadena Plastics Complex “K-Resin” Unit on March 27, *665 2000. The accident left one Phillips employee dead and many more injured. Within days of the event, the injured employees were called to a meeting and informed by representatives from Defendant Williams & Bailey Law Firm, LLP (“Williams & Bailey”), that Phillips’ workers’ compensation insurance covered the incident and Plaintiffs’ injuries. The Jones Plaintiffs allege that Williams & Bailey representatives further stated that under Texas law, because Phillips had workers’ compensation insurance, the employees could not bring personal injury lawsuits against the company.

In November 2005, nine Phillips employees and spouses of employees 4 brought suit against the Phillips Defendants, Pacific Employers Insurance Company (“Pacific”) (Phillips’ workers’ compensation carrier), Williams & Bailey, and the employees’ Union (PACE International and PACE Local) and Union officials, alleging that these defendants conspired to intentionally misrepresent the state of Phillips’ workers’ compensation insurance. Specifically, these plaintiffs alleged that Phillips used an internal employee benefit plan to pay some employees’ claims in order to create the appearance of workers’ compensation so that employees would not file individual personal injury lawsuits. Plaintiffs asserted numerous state and federal law claims arising from these events. 5

Especially relevant to the Motion to Amend are complicated procedural events that have occurred throughout this litigation: Attorneys Grover G. Hankins and Melvin Houston, as joint counsel, commenced this suit in November 2005. 6 On April 3, 2006, the two attorneys filed an amended complaint on behalf of the nine original plaintiffs, and eleven new plaintiffs. 7 Soon thereafter, evidence of a dispute between the two attorneys and allegedly among the plaintiffs emerged.

On April 6, 2006, Mr. Hankins filed a Designation of Lead Counsel, asserting that the nine original plaintiffs had designated him their “Attorney-in-Charge” and expected him to “have full control and management in this cause and to receive all communications from the Court or other counsel relating to the case.” 8

Over the next few months, the parties conducted discovery. Three of the four groups of defendants — the Phillips Defendants, Pacific, and Williams & Bailey— timely filed individual motions for partial summary judgment on the question of Phillips’ workers’ compensation subscriber status [Docs. # 36, # 37, and # 41]. Mr. Hankins and Mr. Houston jointly filed various responses on behalf of all twenty plaintiffs [Docs. # 49, # 51, # 52, # 58, and #59].

On September 19, 2006, while the summary judgment motions were sub judice, Mr. Hankins filed a “Motion to Remove Melvin Houston [and a co-counsel] as Attorneys of Record for the Original Plaintiffs” (“Motion to Remove”) [Doc. # 65]. 9 *666 According to Mr. Hankins, he and Mr. Houston “had inherent directional and supervisory conflicts that have gone unresolved and because of Attorney Houston’s steely resolve, said conflicts have the potential of threatening the successful litigation of this cause.” 10 Specifically, Mr. Hankins complained that Mr. Houston added clients to the case without his or the original plaintiffs’ consent, 11 and that Mr. Houston expressed his intent to represent a group of intervenors “over whom Lead Counsel Hankins would have no direction and/or control.” 12 Mr. Houston responded that Mr. Hankins lacked proper consent from each of the named plaintiffs to dismiss Mr. Houston or his firm. 13 The Court declined to rule on matters of an attorney-client nature and accordingly denied the Motion to Remove. 14

While the Motion to Remove was pending, the rift between Mr.

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Bradley v. Phillips Petroleum Co., 527 F. Supp. 2d 661, 2007 U.S. Dist. LEXIS 92981, 2007 WL 4443877 (S.D. Tex. 2007).

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