Fredric N. Eshelman v. True the Vote, Inc., Catherine Engelbrecht, William Engelbrecht OPSEC Group LLC Gregg Phillips The Bopp Law Firm, P.C. James Bopp, Jr.

CourtCourt of Appeals of Texas
DecidedNovember 3, 2022
Docket14-21-00279-CV
StatusPublished

This text of Fredric N. Eshelman v. True the Vote, Inc., Catherine Engelbrecht, William Engelbrecht OPSEC Group LLC Gregg Phillips The Bopp Law Firm, P.C. James Bopp, Jr. (Fredric N. Eshelman v. True the Vote, Inc., Catherine Engelbrecht, William Engelbrecht OPSEC Group LLC Gregg Phillips The Bopp Law Firm, P.C. James Bopp, Jr.) 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.

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Fredric N. Eshelman v. True the Vote, Inc., Catherine Engelbrecht, William Engelbrecht OPSEC Group LLC Gregg Phillips The Bopp Law Firm, P.C. James Bopp, Jr., (Tex. Ct. App. 2022).

Opinion

Affirmed in Part, Reversed in Part, Remanded, and Opinion filed November 3, 2022.

In the

Fourteenth Court of Appeals

NO. 14-21-00279-CV

FREDRIC N. ESHELMAN, Appellant V.

TRUE THE VOTE, INC.; CATHERINE ENGELBRECHT; WILLIAM ENGELBRECHT; OPSEC GROUP LLC; GREGG PHILLIPS; THE BOPP LAW FIRM, P.C.; AND JAMES BOPP JR., Appellees

On Appeal from the 155th District Court Austin County, Texas Trial Court Cause No. 2021v-0015

OPINION

In this appeal from the judgment granting the defendants’ pleas to the jurisdiction and dismissing the case, charitable donor Fredric N. Eshelman argues that he has standing to sue a public charity for the return of his donation because the charity failed to comply with the conditions of his gift. He further maintains that even if he lacks standing to sue the charity, he has standing to sue the charity’s employees, officers, agents, and vendors, whom the charity paid using funds he donated. Five of the defendants challenged the existence of the jurisdictional facts alleged by Eshelman. Because that challenge was supported by evidence controverting Eshelman’s allegations, and Eshelman failed to offer any evidence in response, the trial court properly granted the plea to the jurisdiction of those defendants. The two remaining defendants challenged only the sufficiency of Eshelman’s live pleading. Because Eshelman’s pleading alleged facts sufficient to affirmatively demonstrate the trial court’s jurisdiction, the trial court erred in granting the jurisdictional pleas of those two defendants. Thus, we affirm in part, reverse in part, and remand the case for further proceedings.

I. BACKGROUND

Eshelman pleaded that he contributed $2.5 million to True the Vote, Inc. (“TTV”), to fund their efforts to investigate and litigate alleged voter fraud in the 2020 presidential election, and to do so before election-certification deadlines. He spoke by phone with TTV’s president Catherine Englebrecht two days after the election, and based on that conversation, he wired $2 million to TTV. Shortly thereafter, he wired TTV an additional $500,000.

According to Eshelman, Englebrecht represented that TTV intended to solicit “whistleblower” testimony, publicize the whistleblowers’ stories, “galvanize Republican legislative support for voter fraud challenges in key states,” “aggregate and analyze data to identify patterns of election subversion,” and file federal lawsuits “in the seven closest battleground states.” The lawsuits were to be filed by TTV’s general counsel James Bopp Jr. and his law firm, The Bopp Law Firm. Eshelman alleged that, based upon data to be subpoenaed in those lawsuits, TTV would partner with OPSEC Group, LLC, and its principal Gregg Phillips to perform data modeling and statistical analysis to identify potentially fraudulent balloting. Eshelman further

2 alleged that his contributions were made on the condition that the funds were to be used for the TTV projects concerning the 2020 presidential election that Catherine Engelbrecht described to Eshelman. These projects came to be referred to as the “Validate the Vote 2020” initiative. Eshelman pleaded that he expressed his intent that $1 million of his contribution would be used to fund rewards for whistleblowers, $1 million “would be used for some combination of communications outreach and litigation,” and the remaining $500,000 would be used to fund TTV’s Validate the Vote 2020 initiative in some manner not specifically described. He alleged that TTV agreed to these conditions.

Despite Eshelman’s requests for information, TTV identified no whistleblowers. He alleges that TTV filed lawsuits in four states “none of which cited any substantial evidence” of voter fraud, and that the four lawsuits were quickly and voluntarily dismissed. When he learned that TTV had dismissed its lawsuits, Eshelman demanded his money back. TTV offered to return part of the donation if Eshelman would release his claims against TTV. Eshelman refused.

Eshelman then filed and nonsuited a case in federal court before bringing this suit in an Austin County district court. Eshelman sued TTV and Catherine Englebrecht, and, alleging that payments from his conditional contributions were made to OPSEC, Phillips, Bopp, The Bopp Law Firm, and Catherine’s son William Engelbrecht, Eshelman sued them as well. Against TTV, Eshelman asserted a claim for breach of contract, and he sued both TTV and Catherine Engelbrecht for fraudulent misrepresentation and negligent misrepresentation. Against all of the defendants, Eshelman asserted claims for conversion and money had and received, and he requested declaratory relief. He also asked the trial court to appoint receivers for the organizational defendants TTV, OPSEC, and The Bopp Law Firm.

3 All of the defendants filed pleas to the jurisdiction challenging Eshelman’s standing. TTV, the Englebrechts, OPSEC, and Phillips challenged the existence of a key jurisdictional fact alleged by Eshelman, namely, that his contributions to TTV were in any way conditional. All of the defendants also argued that Eshelman’s pleading does not, and cannot, show that the trial court has subject-matter jurisdiction because there is no evidence that Eshelman made his donations through a “gift instrument” expressly providing that the donations would revert to Eshelman if TTV failed to use the funds in accordance with his stated conditions. They maintain that, absent such an express written right of reverter, Eshelman lacks standing to sue the public charity TTV, and that his claims against the remaining defendants are similarly barred, being derivative of his claims against TTV.

The trial court granted all of the defendants’ pleas without stating the grounds and rendered final judgment dismissing Eshelman’s claims without prejudice. Eshelman appeals the ruling. In two issues, he argues that the trial court erred in granting the jurisdictional plea of TTV and of the remaining defendants.

II. STANDARD OF REVIEW

Subject-matter jurisdiction can be challenged by a plea to the jurisdiction, and we review de novo the trial court’s ruling on the plea. Tex. Dep’t. of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004).

If the plea challenges the existence of jurisdictional facts, the procedure and the standard of review mirror those applicable to summary judgments. See id. at 228. We consider the relevant jurisdictional evidence submitted by the parties, taking as true all evidence favorable to the plaintiff, indulging all reasonable inferences and resolving all doubts in the plaintiff’s favor. Id. After the defendant asserts and supports with evidence that the trial court lacks subject-matter jurisdiction, the burden shifts to the plaintiff to show that there is a disputed material fact concerning 4 jurisdiction. Id. If the jurisdictional evidence, considered in the light most favorable to the plaintiff, raises at least a question of fact as to the jurisdictional issue, then the plea must be denied, leaving the matter to be resolved by the factfinder. Id. at 227– 28.

If the plea challenges the plaintiff’s pleading, we determine if the plaintiff alleged facts affirmatively demonstrating the court’s jurisdiction to hear the case. Id. at 226. To do so, we construe the pleading liberally in the plaintiff’s favor and consider the plaintiff’s intent. Id. If the pleading neither contains sufficient facts to affirmatively demonstrate the trial court’s jurisdiction nor affirmatively demonstrates incurable jurisdictional defects, the issue is one of pleading sufficiency, and the plaintiff should be given the opportunity to amend. Id. at 226– 27.

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Fredric N. Eshelman v. True the Vote, Inc., Catherine Engelbrecht, William Engelbrecht OPSEC Group LLC Gregg Phillips The Bopp Law Firm, P.C. James Bopp, Jr., Counsel Stack Legal Research, https://law.counselstack.com/opinion/fredric-n-eshelman-v-true-the-vote-inc-catherine-engelbrecht-william-texapp-2022.