GAIA Environmental, Inc. and AXL Industries, L.L.C. v. James B. Galbraith and McLeod, Alexander, Powel & Apffel, P.C.

451 S.W.3d 398, 2014 WL 4415221
CourtCourt of Appeals of Texas
DecidedSeptember 9, 2014
Docket14-13-00571-CV
StatusPublished
Cited by10 cases

This text of 451 S.W.3d 398 (GAIA Environmental, Inc. and AXL Industries, L.L.C. v. James B. Galbraith and McLeod, Alexander, Powel & Apffel, P.C.) 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.

Bluebook
GAIA Environmental, Inc. and AXL Industries, L.L.C. v. James B. Galbraith and McLeod, Alexander, Powel & Apffel, P.C., 451 S.W.3d 398, 2014 WL 4415221 (Tex. Ct. App. 2014).

Opinion

OPINION

MARC W. BROWN, Justice.

Appellants Gaia Environmental, Inc. and AXL Industries, L.L.C. brought claims against appellees James B. Galbraith and McLeod, Alexander, Powel & Apffel, P.C. (“MAPA”) for tortious interference with a prospective business relationship, tortious interference with an existing contract, civil conspiracy, and aiding and abetting. Gaia and AXL alleged that attorney Galbraith *400 and his firm MAPA, which had represented BP North America, Inc. in an underlying wrongful death lawsuit brought against both Gaia and BP, had threatened not to renew and to cancel Gaia’s contracts with BP if a Gaia corporate deponent did not change his testimony related to whether the work performed by the deceased Gaia employee was covered by a particular Gaia-BP contract.

Galbraith and MAPA moved for summary judgment on multiple grounds. Among the theories for summary judgment, Galbraith and MAPA asserted the attorney immunity doctrine. Gaia and AXL responded that attorney immunity does not protect the criminal act of tampering with a witness. The trial court granted summary judgment.

On appeal, Gaia and AXL argue that the trial court erred in granting summary judgment. We affirm.

I. Factual and ProceduRal Background

The underlying lawsuit: In April 2003, Gaia Environmental, Inc. and BP North America, Inc. entered into a Master Site Services Agreement for Gaia to perform environmental consulting services. 1 This agreement is also known as the Land Farm contract, and contains an indemnity provision whereby Gaia agreed to defend and indemnify BP against negligence claims. In October 2008, a Gaia employee was killed in an accident involving a backhoe on BP property.

On the day of the accident, BP retained Galbraith and MAPA to represent it. The deceased employee’s family brought a wrongful death lawsuit against Gaia and BP. Gaia also retained counsel, which included Phillip D. Sharp, who at the time was with Bracewell & Giuliani. Galbraith contacted Sharp to tender the defense and indemnity of BP pursuant to the Land Farm contract, but Gaia had not obtained any liability insurance. BP defended itself in the lawsuit.

During discovery, a BP corporate deponent testified that the Gaia employee was working pursuant to the Land Farm contract at the time of his accident and that Gaia was in control of the operation. One of Gaia’s owners, William Householder, testified at his deposition that the work being performed by the employee was not covered under the Land Farm contract and that BP directed the Gaia employee’s work.

The alleged witness tampering incident: On August 14, 2009, Galbraith called Sharp to discuss Householder’s deposition, which had been taken in May 2009. When asked, Sharp informed Galbraith that Householder had already signed the transcript and it had been returned to the court reporter. Galbraith told Sharp that “people at BP” were very upset with Householder regarding what he had said about certain tasks falling within the scope of the Gaia-BP contracts. Galbraith requested that Sharp read Householder’s deposition transcript again and discuss it with Householder. Galbraith stated that if Householder was not willing to change what he had said at his deposition, BP was not going to renew its contracts.

Sharp reviewed Householder’s transcript, then called him. Sharp and Householder agreed they would try to “sit down and talk through this” with Galbraith. Although Householder and Sharp discussed the two sides’ disagreement over the applicability of the Land Farm contract with a MAPA associate who also represented BP, *401 Sharp never had any other follow-up with Galbraith about Householder’s deposition. Householder did not change his testimony. Ultimately, the Gaia-BP contracts were not renewed.

The current lawsuit: In May 2011, Gaia and AXL Industries, L.L.C., an environmental consulting company which had been in negotiations to purchase Gaia, filed suit against BP North America, Inc., BP, p.l.c., Galbraith, and MAPA. 2 Gaia and AXL brought breach of contract and fraud claims against the BP defendants; tortious interference with a prospective business relationship claims against all the defendants; tortious interference with an existing contract claims against Galbraith and MAPA; civil conspiracy claims against all the defendants related to the alleged tortious interference with a prospective business relationship; and aiding and abetting claims against Galbraith and MAPA for allegedly assisting the BP defendants with the alleged tortious interference with a prospective business relationship. Gaia and AXL alleged that BP and “its lawyer,” Galbraith of MAPA, threatened Householder that, unless he changed his testimony that the work performed by the deceased Gaia employee was not covered under the Land Farm contract and that BP directed the Gaia employee’s work, BP would not renew and would cancel its contracts with Gaia.

Galbraith and MAPA filed a motion for traditional summary judgment, arguing that: (1) Gaia’s and AXL’s claims were barred by attorney immunity as the alleged actions occurred while Galbraith and MAPA represented BP in the underlying lawsuit; (2) Gaia’s and AXL’s claims were barred by a lack of privity; and (3) Galbraith and MAPA never engaged in the alleged conduct. Galbraith and MAPA included an affidavit by Galbraith with their motion.

Gaia and AXL responded that summary judgment based on attorney immunity is not appropriate where an attorney has operated outside the bounds of the law, arguing that Galbraith and MAPA committed a violation of Texas Penal Code, section 36.05, Tampering with a Witness. Gaia and AXL specifically contended that Galbraith “intended to coerce Householder to testify falsely.” Gaia and AXL also argued that their claims were not barred by a lack of privity and that they raised a fact issue as to whether Galbraith and MAPA engaged in the alleged conduct. Gaia and AXL included an affidavit by Sharp with their response, as well as the transcript from Householder’s deposition.

Galbraith and MAPA filed a supplement to their summary judgment motion, arguing that they did not engage in any criminal conduct, and attaching the transcript from Sharp’s deposition as an exhibit. Gaia and AXL filed a supplemental response, arguing that based on reasonable inferences drawn in their favor, the trial court must deny summary judgment. Gaia and AXL attached excerpts from Sharp’s deposition to their supplemental response.

The trial court granted Galbraith’s and MAPA’s motion for summary judgment without specifying the basis for its ruling. Subsequently, Gaia’s and AXL’s claims against Galbraith and MAPA were severed from the litigation, making the summary judgment final. Gaia and AXL timely appealed.

On appeal, Gaia and AXL argue that the trial court erred because none of the *402 grounds asserted by Galbraith and MAPA can support summary judgment in their favor.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
451 S.W.3d 398, 2014 WL 4415221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaia-environmental-inc-and-axl-industries-llc-v-james-b-galbraith-texapp-2014.