Francis Wing-Sing Chan v. J. Shelby Sharpe and the Law Offices of J. Shelby Sharpe, a Professional Corporation, and Karen Chang and Henry Chang

Court of Appeals of Texas·Decided August 26, 2015·No. 02-14-00286-CV·Published

Opinion

COURT OF APPEALS

SECOND DISTRICT OF TEXAS

FORT WORTH

NO. 02-14-00286-CV

FRANCIS WING-SING CHAN APPELLANT V.

J. SHELBY SHARPE AND THE APPELLEES LAW OFFICES OF J. SHELBY SHARPE, A PROFESSIONAL CORPORATION, AND KAREN CHANG AND HENRY CHANG

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FROM THE 48TH DISTRICT COURT OF TARRANT COUNTY TRIAL COURT NO. 048-243228-10

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MEMORANDUM OPINION1

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I. INTRODUCTION

In thirty issues, Appellant Francis Wing-Sing Chan appeals various trial court orders, including orders granting summary judgment, in favor of Appellees

1 See Tex. R. App. P. 47.4.

J. Shelby Sharpe; The Law Offices of J. Shelby Sharpe, a Professional Corporation; Karen Chang; and Henry Chang. We will affirm.

II. BACKGROUND

Wan Fu Foods, Inc. (WFFI) was formed in 1990 for the purpose of owning and operating a restaurant in Fort Worth. Chan, the Changs, and several other individuals were WFFI’s initial shareholders. Chan was also an employee of, and claims to have had an employment contract with, WFFI.

In September 2004, Chan had a “falling out with WFFI [and its] other shareholders” and was told “not to return to the restaurant.”2 Sometime soon thereafter, Chan and his then-wife met with Sharpe at his law office.3 Chan thought that the restaurant owed him money, and he wanted Sharpe to represent him in an effort to collect it. Sharpe told Chan that he would not represent him but that he would draft a demand letter for him. Chan’s ex-wife also recalled that

2 Karen Chang, on the other hand, claimed that she had “repeatedly requested Chan to return to the restaurant after he left on his own volition[,] and he repeatedly refused to return.”

3 Chan claims that Sharpe had been a patron of the restaurant for a number of years.

Sharpe had refused to represent Chan.4 Chan, however, claims that Sharpe agreed to represent him at “no charge.”5 Chan subsequently filed three pro se lawsuits in small-claims court against Henry Chang, seeking damages related to his dispute with WFFI. Sharpe filed an answer on behalf of Henry Chang and later notified Chan by letter that he should nonsuit the claims because they lacked merit.6 Chan dismissed the three suits and met with the Changs in Sharpe’s conference room in an attempt to resolve their differences, but they were unsuccessful.7 WFFI went out of business in 2009.

Chan sued Appellees and WFFI in 2010. According to Chan, his employment with WFFI was wrongfully terminated and when Sharpe filed an answer on behalf of Henry Chang in the three lawsuits in small-claims court, Sharpe “switched sides” and “stepped in to defend Henry in those suits” without obtaining Chan’s “verbal or written consent to do so.” Chan alleged claims for

4 According to Chan’s ex-wife, after the meeting with Sharpe, Chan asked her to help him find an attorney to represent him in the dispute with WFFI, and Chan began meeting with other attorneys.

5 Chan points out that his ex-wife “was not there during the ‘entire’ meeting”

and that she “has been under the care of a board certified psychiatrist for many years.”

6 Sharpe also informed Chan, “There is a way to resolve your frustration, but it is not in a court proceeding. I am pleased to sit down with you, Henry[,] and Karen to discuss these frustrations, if you are willing.”

7 Sharpe did not participate in the meeting.

breach of fiduciary duty and conspiracy, among other things; he later added a claim for violation of the Texas Uniform Fraudulent Transfer Act (TUFTA); and he sought damages for (i) unpaid dividends, (ii) lost wages, (iii) lost benefits, and (iv) the value of his initial capital contribution to WFFI. The trial court ultimately severed and abated the TUFTA claims; granted summary judgment in favor of Sharpe, Sharpe’s law offices, and the Changs; and granted Sharpe’s and his law offices’ motion to disqualify Chan’s counsel. The summary judgment orders became final when the trial court severed Chan’s claims against WFFI from the remainder of the suit.8 III. SUMMARY JUDGMENT ISSUES—SHARPE AND LAW OFFICES A. Breach of Fiduciary Duty In issue II-B, Chan argues that the trial court erred by granting summary judgment in favor of Sharpe and Sharpe’s law offices on Chan’s claim for breach of fiduciary duty.9 The elements of a claim for breach of fiduciary duty are (1) a fiduciary relationship existed between the plaintiff and the defendant, (2) the defendant breached its fiduciary duty, and (3) the breach resulted in injury to the plaintiff or benefit to the defendant. Heritage Gulf Props., Ltd. v. Sandalwood Apartments, Inc., 416 S.W.3d 642, 650 (Tex. App.—Houston [14th Dist.] 2013,

8 A different trial court had previously granted a default judgment against WFFI.

9 Chan posits that an attorney-client relationship arose out of his meeting with Sharpe.

no pet.). Sharpe and his law offices challenged the third element on no-evidence grounds—that Chan suffered no injury and that Sharpe and the law offices received no benefit because of any alleged breach of fiduciary duty by Sharpe and his law offices.10 Chan argues that Sharpe’s “switching of sides” injured him because “it thwarted the timely prosecution, settlement, resolution, and/or payment of his shareholder rights claims.” Chan non-suited his lawsuits in small-claims court in January 2007, and he and the Changs failed to resolve their differences at the meeting at Sharpe’s law offices in March 2007. There is no evidence that Sharpe’s alleged “switching of sides” prevented Chan from thereafter timely pursuing any of his claims.

Chan argues that Sharpe’s alleged misconduct injured him because “it undermined his on-going rights as a WFFI shareholder.” More specifically, observing that WFFI went out of business in October 2009 and that he is “no longer able to collect money for my claims against WFFI from WFFI,” Chan contends that if Sharpe had “acted fairly, honestly, impartially, and mediated

10 After an adequate time for discovery, the party without the burden of proof may, without presenting evidence, move for summary judgment on the ground that there is no evidence to support an essential element of the nonmovant’s claim or defense. Tex. R. Civ. P. 166a(i). The motion must specifically state the elements for which there is no evidence. Id.; Timpte Indus., Inc. v. Gish, 286 S.W.3d 306, 310 (Tex. 2009). The trial court must grant the motion unless the nonmovant produces summary judgment evidence that raises a genuine issue of material fact. See Tex. R. Civ. P. 166a(i); Hamilton v. Wilson, 249 S.W.3d 425, 426 (Tex. 2008).

[Chan’s] claims in good faith, [Chan] would have settled those claims for a reasonable sum of money within a few months after January 12, 2007, if not long before then.” Not only is this sheer speculation, but Chan’s claimed inability to execute a money judgment against WFFI has nothing to do with Sharpe’s alleged “switching of sides” years earlier. Based on this record, Chan had the ability to enforce his rights as a WFFI shareholder after Sharpe’s alleged misconduct.

Chan additionally argues that Sharpe’s conduct “caused [Chan] to incur thousands of dollars in attorney’s fees to rectify the consequences of Sharpe’s misconduct.” Again, notwithstanding that this is pure speculation, attorneys’ fees ordinarily cannot be recovered as damages, and no exception applies under these circumstances. See G.R.A.V.I.T.Y. Enters. v. Reece Supply Co., 177 S.W.3d 537, 546‒47 (Tex. App.—Dallas 2005, no pet.).

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Francis Wing-Sing Chan v. J. Shelby Sharpe and the Law Offices of J. Shelby Sharpe, a Professional Corporation, and Karen Chang and Henry Chang (Francis Wing-Sing Chan v. J. Shelby Sharpe and the Law Offices of J. Shelby Sharpe, a Professional Corporation, and Karen Chang and Henry Chang) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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