Bruce B. McLeod, III v. Alfred Gyr

439 S.W.3d 639, 2014 WL 3867812, 2014 Tex. App. LEXIS 8714
Court of Appeals of Texas·Decided August 7, 2014·No. 05-12-01607-CV·Published·Cited by 22 cases

Opinion

OPINION

Opinion by

Justice LANG-MIERS.

We withdraw our opinion dated May 5, 2014, and vacate the judgment of that date. We deny appellant’s motion for rehearing. This is now the opinion of the Court. This is an appeal from a post-answer default judgment rendered against attorney Bruce B. McLeod III on Alfred Gyr’s claims for deceptive trade practices and breach of fiduciary duty. McLeod raises four issues on appeal challenging the sufficiency of the evidence to support the judgment, the trial court’s order denying his motion for new trial, and the trial court’s order reinstating the case after having dismissed it. We modify the trial court’s judgment in part, suggest a remit-titur in part, affirm in part, reverse in part, and remand.

I. Background

McLeod is a lawyer “licensed by the DC Court of Appeals” and admitted to practice law in the United States district courts for the northern and eastern districts of Texas. He lives in Texas. Gyr was born in Switzerland and lives in Texas where he works with his son and girlfriend. Gyr met McLeod in 2009 and retained him that fall to handle some debt collection matters. In December 2009 Gyr told McLeod that he wanted to become a naturalized United States citizen; Gyr said his father’s 90th birthday was in June 2010, and he wanted to travel to see his father and celebrate his father’s birthday with him. McLeod told Gyr he “specialized in immigration matters ... and handled immigration matters ... including the [N-400] application to become naturalized United States citizens.” Gyr said he “believed [McLeod] to be an expert based upon his representations to represent people in immigration matters, in particular becoming naturalized United States citizens” and retained McLeod to file the N-400 application on his behalf. Gyr signed a contract with McLeod in December 2009 to handle the N-400 application matter. The contract required Gyr to pay McLeod a $3,000 nonrefundable *644 retainer, $200 per hour for services rendered, and $250 per hour for “out-of-office appearances” such as agency or court hearings. Gyr also signed a blank N-400 application.

McLeod completed the N-400 application and submitted it in March or April 2010. It was rejected. McLeod submitted the application three more times, and each time it was rejected. 1 Each time the application was rejected, Gyr received a letter notice of rejection from the government. The date of the last rejection notice was August 27, 2010. Each time Gyr received a rejection notice, he asked McLeod for an explanation. Gyr said he could not remember everything McLeod told him about why the applications were rejected. “He told me so many excuses.” Sometimes McLeod said “[t]hey’re stupid people over there,” but it was “always somebody else’s fault.” Gyr said McLeod told him “he’s specialist” and Gyr “believed him, you know.” Gyr paid McLeod $23,000 for his services in connection with the N-400 application matter.

During this same time period, Gyr testified that he paid McLeod an additional $1,200 to investigate the title to a condominium. Gyr said McLeod did nothing and the realtor handled the title investigation. Then Gyr learned that McLeod had “lied to” him about a Social Security matter McLeod was supposed to be handling, and Gyr said “that’s it.” He went to McLeod’s office and asked for “all [his] papers.” McLeod handed him a bill for services rendered on the N^400 application matter in the amount of $19,660; the bill did not give Gyr credit for all of the cash payments he made. Gyr retained his current lawyer, Rick Frazier, to file the N-400 application for him; he paid Frazier $2,000 plus expenses and became a naturalized United States citizen within three months of filing the application.

Gyr sued McLeod for legal malpractice, breach of fiduciary duty, fraud, deceptive trade practices, negligent misrepresentation, and breach of contract. The parties were ordered to mediation and they settled the dispute. They signed a settlement agreement requiring McLeod to pay Gyr $24,500 over a period of time. The settlement agreement also required McLeod to sign an agreed judgment for $24,500 to secure payment of the settlement sum. In the settlement agreement Gyr agreed not to execute or abstract the judgment unless McLeod defaulted on the payments.

The mediator informed the trial court that the case had settled and that a proposed judgment would be forthcoming. The trial court sent a notice to the parties that the case was set for “final disposition” and, unless a final judgment was furnished to the court prior to that date, the case would be dismissed.

Frazier prepared a proposed agreed judgment and sent it by email to McLeod’s lawyer, Wesley Newell. Newell did not respond. Frazier made additional attempts by email to get a response from Newell, but when those attempts failed, Frazier asked the mediator to intervene. The mediator emailed Newell about the proposed agreed judgment, but Newell did not respond to him either. Meanwhile, the date set by the trial court for final disposi *645 tion of the case catae ahd went without an agreed judgment being filed and the court dismissed the case.

Gyr filed a sworn motion to reinstate the case alleging that the failure to submit a proposed judgment was due to the failure and refusal of Newell to cooperate with him in getting the agreed judgment signed. Gyr also filed a motion to compel and a request for sanctions asking the court to order McLeod’s compliance with the settlement agreement. The trial court reinstated the case, fhe court set the case for a bench trial and sent notice of the trial setting to the parties. Gyr and his lawyer appeared for trial; McLeod and his lawyer did not. After hearing evidence, the trial court rendered a final judgment in favor of Gyr on his claims under the DTPA and for breach of fiduciary duty, awarded Gyr total actual damages of $24,950, additional damages of $47,500 for a knowing violation of the DTPA, attorney’s fees of $28,210 fob trial of his DTPA claim, conditional attorney’s fees of $12,500 for appeals, and prejudglnent interest. The court filed findings of fact and conclusions of law showing that GyT’s tbtai actual damages of $24,950 included $28,750 in actual damages under the DTPA and $1,200 in actual damages for breach of fiduciary duty.

McLeod filed a sworn motion for new trial. He asked the trial cpurt to vacate the judgment and enforce the mediated settlement agreement “based on the principles of ‘res judicata’ and collateral estop-pel.” He also argued that the trial court’s findings were “against the great weigh [t] and preponderance of the evidence and are manifestly unjust.” At the hearing on the motion, McLeod argued that the settlement agreement triggered “the doctrines of collateral estoppel as well as res judica-ta.” And he argued that if Gyr was not happy with the settlement agreement, he should have moved to set it aside instead of trying “to circumvent the intent and agreement-” As to why McLeod’s lawyer did not respond to Frazier’s emails about the proposed agreed judgment, Newell said, “Again, this — the gravamen of this dispute, if you will, comes back again to the fact that I told Mr.

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Bruce B. McLeod, III v. Alfred Gyr, 439 S.W.3d 639, 2014 WL 3867812, 2014 Tex. App. LEXIS 8714 (Tex. Ct. App. 2014).

439 S.W.3d 639 (Bruce B. McLeod, III v. Alfred Gyr) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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