David Sheller v. Corral Tran Singh, LLP, Susan Tran, and Brendon Singh

CourtCourt of Criminal Appeals of Texas
DecidedMay 17, 2018
Docket14-17-00215-CV
StatusPublished

This text of David Sheller v. Corral Tran Singh, LLP, Susan Tran, and Brendon Singh (David Sheller v. Corral Tran Singh, LLP, Susan Tran, and Brendon Singh) is published on Counsel Stack Legal Research, covering Court of Criminal Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David Sheller v. Corral Tran Singh, LLP, Susan Tran, and Brendon Singh, (Tex. 2018).

Opinion

Affirmed and Opinion filed May 17, 2018.

In the

Fourteenth Court of Appeals

NO. 14-17-00215-CV

DAVID SHELLER, Appellant v. CORRAL TRAN SINGH, LLP, SUSAN TRAN, and BRENDON SINGH, Appellees

On Appeal from the 127th District Court Harris County, Texas Trial Court Cause No. 2016-01407

OPINION

Appellant David Sheller appeals from the trial court’s granting summary judgment in favor of appellees Corral Tran Singh, LLP (CTS), Susan Tran, and Brendon Singh (collectively, CTS Defendants) on Sheller’s claims for violations of the Texas Deceptive Trade Practices Act (DTPA) and negligent misrepresentation. Sheller also appeals from the trial court’s denying summary judgment in Sheller’s favor on his claims. Sheller further challenges the trial court’s failure to require CTS Defendants to admit requests for admission or to strike CTS Defendants’ pleadings under Texas Rule of Civil Procedure 215.4. Concluding that the trial court could properly grant summary judgment on CTS Defendants’ attorney-immunity defense, and that the trial court did not abuse its discretion by refusing to impose sanctions on CTS Defendants, we affirm.

I. BACKGROUND

New Millennium Management, L.L.C., operated a commercial building in Houston, Texas. In September 2013, New Millennium filed a voluntary petition under chapter 11 of the Bankruptcy Code. New Millennium as the debtor-in-possession was initially represented by Margaret McClure, as approved by the bankruptcy court in October 2013.

On January 5, 2014, New Millennium—named as the client—signed a fee agreement with CTS. Sheller signed the fee agreement as the sole member of New Millennium. New Millennium filed an application to employ CTS as a substitute for McClure, which the bankruptcy court approved on January 13, 2014.

At the time, New Millennium creditor TexHou Investment Group, Ltd., had on file a motion to appoint a chapter 11 trustee or to convert the case to a chapter 7 bankruptcy case. The hearing on the motion took place on January 22 and 30, 2014. CTS handled the hearing. On February 25, 2014, the bankruptcy court denied TexHou’s motion to convert but agreed to appoint a trustee to oversee the estate of New Millennium. The trustee was appointed on February 28, 2014. This order ended the engagement of CTS for New Millennium, which was no longer a debtor-in- possession. Upon the motion of the chapter 11 trustee and TexHou, the case was converted to a chapter 7 case in June 2014.

In May 2014, CTS filed an amended final application for approval of

2 compensation for services rendered and reimbursement of expenses incurred as chapter 11 bankruptcy counsel for debtor New Millennium for the time period of January 5, 2014, to February 25, 2014. There was no objection to CTS’s application. The bankruptcy court held a hearing and in August 2014 concluded that CTS should be allowed a fee of $3,880.

The bankruptcy case was dismissed in October 2015. In January 2016, Sheller filed suit against CTS Defendants for DTPA violations and “negligence and legal malpractice.” Sheller amended his petition to remove the negligence and malpractice claims and to add claims for negligent misrepresentation.

Sheller alleged that CTS Defendants: did not prepare witnesses and improperly conducted direct examinations; did not research and incorrectly advised Sheller there could be no appeal from the appointment of the chapter 11 trustee; did not timely put together an exclusive plan; did not list expert witnesses and exhibits; did not spend adequate time on monthly operating reports; and did not adequately and timely confer with Sheller or return phone calls.

With regard to the DTPA, Sheller alleged that Tran violated section 17.50(2) by violating an express warranty and making a false statement, and that CTS Defendants violated “section 17.46 et seq.” because their “services and ability were represented to be competent and they were of a different standard, quality or character.” Sheller alleged that CTS Defendants’ “repeated failures to list experts, exhibits, perform diligent research or even any research before making statements, and the refusal to put together an exclusive plan before the time expired to do so” violated section 17.50(3) of the DTPA. Sheller also pleaded “negligent misrepresentation as to all statements by [CTS Defendants] in representing New Millennium.”

In April 2016, CTS Defendants removed the case to the United States District Court for the Southern District of Texas. The case was remanded in July 2016. 3 The parties filed cross-motions for summary judgment. CTS Defendants filed a motion for summary judgment based on the affirmative defenses of res judicata and attorney immunity.1 Sheller filed a response2 and a supplemental response.3 Sheller

1 CTS Defendants attached:  the bankruptcy court’s February 25, 2014 memorandum opinion;  the bankruptcy court’s August 18, 2014 memorandum opinion;  the engagement letter and fee agreement dated January 4, 2014, between CTS and New Millennium;  New Millennium’s January 6, 2014 application to employ CTS as the debtor’s attorneys;  the bankruptcy court’s January 13, 2014 order authorizing CTS to serve as New Millennium’s counsel with Tran as attorney in charge;  the bankruptcy schedules filed September 23, 2013;  CTS’s amended final application for approval of fees as chapter 11 counsel filed May 15, 2014;  the docket in the bankruptcy case; and  an affidavit by Richard Wilson, counsel for CTS Defendants, signed July 5, 2016. 2 Sheller attached:  CTS’s original final application and amended final application for approval of fees as chapter 11 counsel filed March 28 and May 15, 2014, respectively;  CTS’s amended final application for approval of fees as chapter 11 counsel filed May 19, 2014;  an email dated January 7, 2014, from Tran to Sheller;  a New Millennium bank statement dated October 31, 2013;  an email dated January 10, 2014, from Sheller to Tran and McClure;  an affidavit in support of the denial of summary judgment by Sheller; and  the chapter 7 trustee’s emergency motion to sell real property dated July 29, 2014, with proposed order authorizing sale. 3 Sheller attached:  an affidavit by Robert Moon signed August 9, 2016;  an affidavit by David Littwitz signed March 3, 2014;  transcript excerpts of Moon’s, Littwitz’s, and Michael Lane’s testimony during 4 filed a motion for summary judgment, arguing that there were no material issues of fact on his DTPA and negligent-misrepresentation claims.4 CTS Defendants responded.5 Sheller replied.6

Sheller filed and amended a motion for sanctions and default judgment. Sheller then filed a “supplemental motion for sanctions and default judgment for aggravated perjury pursuant to Penal Code art. 37.02 et seq.”7 The trial court granted CTS Defendants’ summary-judgment motion and denied Sheller’s. Sheller filed a motion for new trial. The trial court denied his motion. Sheller timely appealed.

II. ANALYSIS

A. Standard of review

We review summary judgments de novo. Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 661 (Tex. 2005). A plaintiff moving for traditional summary judgment must conclusively establish all essential elements of its claim. Cullins v. Foster, 171 S.W.3d 521, 530 (Tex. App.—Houston [14th Dist.] 2005, pet. denied) (citing MMP,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cire v. Cummings
134 S.W.3d 835 (Texas Supreme Court, 2004)
Valence Operating Co. v. Dorsett
164 S.W.3d 656 (Texas Supreme Court, 2005)
Collins v. Allied Pharmacy Management, Inc.
871 S.W.2d 929 (Court of Appeals of Texas, 1994)
McCamish, Martin, Brown & Loeffler v. F.E. Appling Interests
991 S.W.2d 787 (Texas Supreme Court, 1999)
Cullins v. Foster
171 S.W.3d 521 (Court of Appeals of Texas, 2005)
Alpert v. Crain, Caton & James, P.C.
178 S.W.3d 398 (Court of Appeals of Texas, 2005)
Lidawi v. Progressive County Mutual Insurance Co.
112 S.W.3d 725 (Court of Appeals of Texas, 2003)
Gramercy Insurance Co. v. MRD Investments, Inc.
47 S.W.3d 721 (Court of Appeals of Texas, 2001)
M.D. Anderson Hospital & Tumor Institute v. Willrich
28 S.W.3d 22 (Texas Supreme Court, 2000)
Carr v. Brasher
776 S.W.2d 567 (Texas Supreme Court, 1989)
Gee v. Liberty Mutual Fire Insurance Co.
765 S.W.2d 394 (Texas Supreme Court, 1989)
Science Spectrum, Inc. v. Martinez
941 S.W.2d 910 (Texas Supreme Court, 1997)
American Tobacco Co., Inc. v. Grinnell
951 S.W.2d 420 (Texas Supreme Court, 1997)
MMP, Ltd. v. Jones
710 S.W.2d 59 (Texas Supreme Court, 1986)
Ernest Navy v. College of the Mainland
407 S.W.3d 893 (Court of Appeals of Texas, 2013)
Deana Pollard Sacks v. Brian Weil Zimmerman and Andrew Todd McKinney, IV
401 S.W.3d 336 (Court of Appeals of Texas, 2013)
Essex Crane Rental Corp. and Vincent A. Morano v. Kenneth Beverly
371 S.W.3d 366 (Court of Appeals of Texas, 2012)
U. S. Bank National Association v. Danny Sheena
479 S.W.3d 475 (Court of Appeals of Texas, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
David Sheller v. Corral Tran Singh, LLP, Susan Tran, and Brendon Singh, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-sheller-v-corral-tran-singh-llp-susan-tran-and-brendon-singh-texcrimapp-2018.