Gary Mixon v. Greg Nelson, as Principal of Madex Capital, L.L.C. Nick DeFilippis, as Principal of Blue Star Capital Group, L.L.P. Michael Morini And Norman R. Zukis

Court of Appeals of Texas·Decided September 3, 2015·No. 03-15-00287-CV·Published

Opinion

ACCEPTED 03-15-00287-CV 6791449 THIRD COURT OF APPEALS AUSTIN, TEXAS 9/3/2015 4:26:08 PM JEFFREY D. KYLE CLERK CAUSE No. 03-15-00287-CV

FILED IN 3rd COURT OF APPEALS IN THE COURT OF APPEALS AUSTIN, TEXAS FOR THE THIRD DISTRICT OF TEXAS9/3/2015 4:26:08 PM At Austin JEFFREY D. KYLE

Clerk

GARY MIXON,

Appellant,

v.

GREG NELSON, AS PRINCIPAL OF MADEX CAPITAL, LLC; NICK DEFILIPPIS, AS PRINCIPAL OF BLUE STAR CAPITAL GROUP, LLP;

MICHAEL MORINI, AND NORMAN R. ZUKIS,

Appellees.

On Appeal from the 345th Judicial District Court of Travis County, Texas The Honorable Gisela D. Triana, Presiding

APPELLEES’ RESPONSE BRIEF

Mark R. McLean, TSB No. 24062882 MCLEANLAW PC 408 W 11th St., Ste. 500 Austin, TX 78701 p: 512.222.5641│f: 512.857.1282 e: mrm@mlpcfirm.com Attorney for Appellees

No Oral Argument Reqeusted

IDENTITY OF PARTIES & COUNSEL

Petitioner/Appellant Gary Mixon properly identified the parties and their counsel.

TABLE OF CONTENTS

IDENTITY OF PARTIES & COUNSEL i

TABLE OF CONTENTS i

TABLE OF AUTHORITIES ii

STATEMENT OF THE CASE 1

RECORD & APPENDIX REFERENCES 1

STATEMENT OF ORAL ARGUMENT 1

ISSUES PRESENTED FOR REVIEW 2

STATEMENT OF FACTS 3

A. Underlying case background: Mixon essentially stole Appelleees’ $200,000 Investment. 3

B. Pertinent timeline of events. 4

C. Mixon’s deposition testimony admits he has no competent evidence 7 supporting his bill of review.

D. Mixon’s recited Statement of Facts misrepresents the record. 9

SUMMARY OF THE ARGUMENT 10

STANDARD OF REVIEW 11

LEGAL AUTHORITY & ARGUMENT 13

i

A. Judge Triana properly granted summary judgment because Mixon admits he has 13 no corroborating proof that he was not served.

B. Judge Triana properly awarded attorney’s fees because attorney’s fees were 18 recoverable in the underlying lawsuit.

CONCLUSION & PRAYER 19

CERTIFICATE OF COMPLIANCE 22

CERTIFICATE OF SERVICE 22

TABLE OF AUTHORITIES

Texas Statutes & Rules

TEX. R. CIV. P. 166a(i) 11

TEX. CIV. PRAC. & REM. CODE § 38.002 20

TEX. REV. STAT. ART. 581-33(D)(7) 20

Texas Supreme Court Cases

Caldwell v. Barnes, 154 S.W.3d 93 (Tex. 2004) 13, 18

Ford Motor Co. v. Ridgway, 135 S.W.3d 598 (Tex. 2004) 12

King Ranch, Inc. v. Chapman, 118 S.W.3d 742 (Tex. 2003) 12,17

LMB, Ltd. v. Moreno, 201 S.W.3d 686 (Tex. 2006) 11

Meece v. Moerbe, 631 S.W.2d 729 (Tex. 1982) 18-20

Primate Constr., Inc. v. Silver, 884 S.W.2d 151 (Tex. 1994) 13

State Farm Fire and Cas. Co. v. Costley, 868 S.W.2d 298 (Tex. 2003) 15

ii

Texas Courts of Appeal Cases

Bakali v. Bakali, 830 S.W.2d 251 (Tex.App.—Dallas 1992, no writ) 20

Cortland Line Co., Inc. v. Israel, 874 S.W.2d 178, 184 (Tex.App.—Houston 19 [14th Dist.] 1992, writ denied)

Dias v. Dias, Cause No. 12-12-00685, 2014 Tex.App. LEXIS 12676 12,18-19 (Tex.App.—Corpus Christi Nov. 25, 2014, rhr’g den.)

Doolin’s Harley-Davidson, Inc. v. Young, Cause No. 06-05-00101-CV, 2006 19 Tex.App. LEXIS 116 (Tex.App.—Texarkana Jan. 6, 2006, no pet.)

Dorrough v. Cantwell, Cause No. 02-05-208-CV, 2006 Tex.App. LEXIS 20 6356 (Tex.App.—Fort Worth July 20, 2006, pet. denied)

Grynberg v. M-I, L.L.C., 398 S.W.3d 864 (Tex.App.—Corpus Christi 12 2012, pet. denied)

In re K.J.B., Cause No. 09-14-00324-CV, 2015 Tex.App. LEXIS 6477 14 (Tex.App.—Beaumont June 25, 2015, no pet. hist.)

Lampasas v. Spring Ctr., Inc., 988 S.W.2d 428 (Tex.App.—Houston [14th 12, 15 Dist. 1999, no pet.)

Langdon v. Gilbert, Cause No. 03-14-00491-CV, 2014 Tex.App. LEXIS 15-16 13880 (Tex.App.—Austin Dec. 31, 2014, no pet.)

Lowe v. Farm Credit Bank2 S.W.3d 293 (Tex.App.—San Antonio 1999, 19-20 pet. denied)

Palomin v. Zarsky Lumber Co., 26 S.W.3d 690, 696 (Tex.App.—Corpus 19 Christi 2000, pet. denied)

Perez v. Old W. Capital Co., 411 S.W.3d 66 (Tex.App.—El Paso 2013, no 14-15 pet.)

Pettigrew v. Recoveredge, L.P., Cause No. 05-97-00239-CV, 1997 Tex.App. 14 LEXIS 4326 (Tex.App.—Dallas Aug. 15, 1997, no writ)

iii

Plunkett v. Conn. Gen. Life Ins. Co., 285 S.W.3d 106 (Tex.App.—Dallas 11,12,17 2009, pet. denied)

Rayon v. Engergy Specialties, Inc., 121 S.W.3d 7 (Tex.App.—Fort Worth 12, 15 2002, no pet.)

Rodriguez v. Holmstrom, 627 S.W.2d 198 (Tex.App.—Austin 1981, no 20 writ)

Sanders v. Sanders, Cause No. 01-11-00010-CV, 2011 Tex.App. LEXIS 14 8532 (Tex.App.—Houston [1st Dist.] Oct. 27, 2011, no pet.)

State ex rel. Mattox v. Buentello, 800 S.W.2d 320 (Tex.App.—Corpus 18-19 Christi 1990, no writ)

Sung Man Min v. Avila, 991 S.W.2d 495 (Tex.App.—Houston [1st Dist.] 13 1999, no pet.)

Williams v. Graffin, Cause No. 11-05-00128-CV, 2006 Tex.App. LEXIS 14 9699 (Tex.App.—Eastland Nov. 9, 2006, no pet.)

iv

STATEMENT OF THE CASE

Appellees, and the record, disagree with the “nature of the case” presented

by Petitioner Gary Mixon.1 Appellees sued Mixon in the underlying lawsuit based

on Mixon’s (clear) fraud, Securities Act violations, breach of contract, and breach

of fiduciary duty. Appellees did not “fail[] to properly effect service in the

underlying lawsuit” as Mixon represents. Rather, Appellees properly obtained an

Order of substitute service and properly served Mixon according to that order.

Judge Triana granted no-evidence summary judgment in the bill of review

proceeding because Mixon testified that he had no evidence or facts rebutting the

Affidavit of Service filed by Appellees’ process server in the underlying lawsuit.

Appellees agree with the remainder of Mixon’s asserted Statement of the

Case.

RECORD & APPENDIX REFERENCES

Appellees also rely on the Clerk’s Record. Citation to the documents will be

footnoted and pin-cited to “CR ##.”

STATEMENT OF ORAL ARGUMENT

Appellees agree that oral argument will not materially aid the Court’s

resolution of this appeal because Mixon testified he had no evidence to rebut the

validly filed Affidavit of Service.

1 “Mixon.”

ISSUES PRESENTED FOR REVIEW

Issue No. 1—Legal Sufficiency of Summary Judgment: Texas law

requires a bill of review Plaintiff to present corroborating evidence—beyond his

own self-serving denial of service—to rebut the presumption that the Plaintiff was

served. Mixon’s sworn testimony admits he has no such corroborating evidence

rebutting the Affidavit of Service. Accordingly, did Judge Triana properly grant

no-evidence summary judgment on the bill of review? Yes.

Issue No. 2—Attorneys Fees: Texas law allows for the recovery of

attorney’s fees for successfully defending a bill of review proceeding when

attorney’s fees are available in the underlying lawsuit. In this case, the investors’

claims in the underlying lawsuit—including Securities Act violations and breach of

contract—allowed for the recovery of attorney’s fees. Accordingly, did Judge

Triana properly grant attorney’s fees in the bill of review proceeding? Yes.

STATEMENT OF FACTS

A. Underlying Case Background: Mixon stole Appellees’ $200,000.00 investment.

Appellees invested $200,000.00 in Mixon’s “Nuwaris, Inc.” 2 purported

business venture based on Mixon’s gross misrepresentations of fact. 3 Nuwaris

(ostensibly) offered a Software-as-a-Service4 licensing platform for the sports, music,

and entertainment industries. 5 Mixon and his cohorts induced Appellees’

investments by representing that they had already secured contracts with

professional athletes 6 and musicians. 7 These representations were demonstrably

false.

Further, the relevant subscription agreements Appellees and Mixon signed

required that all monies funded (by Appellees) be held in escrow until six “units”

($50,000 each) were funded. If the requisite six units were not funded, then the

monies were to be returned to the investors “without interest or penalty.” 8

Appellees’ four units were the only units ever funded. Nonetheless, the monies

were not refunded and Mixon used Appellees’ monies intended for the project for

his own personal benefit.

“Nuwaris.” 2

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Gary Mixon v. Greg Nelson, as Principal of Madex Capital, L.L.C. Nick DeFilippis, as Principal of Blue Star Capital Group, L.L.P. Michael Morini And Norman R. Zukis, (Tex. Ct. App. 2015).

Gary Mixon v. Greg Nelson, as Principal of Madex Capital, L.L.C. Nick DeFilippis, as Principal of Blue Star Capital Group, L.L.P. Michael Morini And Norman R. Zukis (Gary Mixon v. Greg Nelson, as Principal of Madex Capital, L.L.C. Nick DeFilippis, as Principal of Blue Star Capital Group, L.L.P. Michael Morini And Norman R. Zukis) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Ford Motor Co. v. Ridgway
135 S.W.3d 598 (Texas Supreme Court, 2004)
Caldwell v. Barnes
154 S.W.3d 93 (Texas Supreme Court, 2004)
LMB, LTD. v. Moreno
201 S.W.3d 686 (Texas Supreme Court, 2006)
Palomin v. Zarsky Lumber Co.
26 S.W.3d 690 (Court of Appeals of Texas, 2000)
Lowe v. Farm Credit Bank of Texas
2 S.W.3d 293 (Court of Appeals of Texas, 1999)
Min v. Avila
991 S.W.2d 495 (Court of Appeals of Texas, 1999)
Rayon v. Energy Specialties, Inc.
121 S.W.3d 7 (Court of Appeals of Texas, 2002)
Meece v. Moerbe
631 S.W.2d 729 (Texas Supreme Court, 1982)
Rodriguez v. Holmstrom
627 S.W.2d 198 (Court of Appeals of Texas, 1981)
State Farm Fire and Casualty Co. v. Costley
868 S.W.2d 298 (Texas Supreme Court, 1993)
Bakali v. Bakali
830 S.W.2d 251 (Court of Appeals of Texas, 1992)
Plunkett v. Connecticut General Life Insurance Co.
285 S.W.3d 106 (Court of Appeals of Texas, 2009)
King Ranch, Inc. v. Chapman
118 S.W.3d 742 (Texas Supreme Court, 2003)
Primate Construction, Inc. v. Silver
884 S.W.2d 151 (Texas Supreme Court, 1994)
STATE BY AND THROUGH MATTOX v. Buentello
800 S.W.2d 320 (Court of Appeals of Texas, 1990)
Lampasas v. Spring Center, Inc.
988 S.W.2d 428 (Court of Appeals of Texas, 1999)
Cortland Line Co., Inc. v. Israel
874 S.W.2d 178 (Court of Appeals of Texas, 1994)