in Re: Innovation Resource Solution, LLC.

Opinion

ACCEPTED

12-15-00254-CV

TWELFTH COURT OF APPEALS

TYLER, TEXAS

10/16/2015 9:22:17 AM

Pam Estes

CLERK

NO.

FILED IN

12th COURT OF APPEALS

TYLER, TEXAS

IN THECOURT OF APPEALS 10/16/2015 9:22:17 AM

FOR THE TWELFTH DISTRICT OF TEXAS PAM ESTES Clerk

TYLER, TEXAS

IN RE INNOVATION RESOURCE SOLUTION, LLC, RELA TOR

Original Proceeding from Cause No. 3-42109 in the 3RD Judicial District Court Anderson County, Texas

PETITION FOR WRIT OF MANDAMUS

BEAU T. SINCLAIR SBN: 24029835

SINCLAIR LAW OFFICE, P.C. 400 South Broadway, Suite 102 Tyler, Texas 75702 (903) 533- 1005 (903) 533-1379 (fax) E—maiZ.' efile@ sz'rLclairlawtyler.com

ATTORNEY FOR RELATOR, INNOVATION RESOURCE SOLUTION, LLC ORAL ARGUMENT NOT REQUESTED

NO.

IN THECOURT OF APPEALS

FOR THE TWELFTH DISTRICT OF TEXAS TYLER, TEXAS

IN RE INNOVATION RESOURCE SOLUTION, LLC, RELA TOR

Original Proceeding from Cause No. 3-42109 in the 3RD Judicial District Court Anderson County, Texas

On Petition for Writ of Mandamus to the 3“ Judicial District Court of Anderson County, Texas

PETITION FOR WRIT OF MANDAMUS

TO THE HONORABLE COURT OF APPEALS:

COMES NOW INNOVATION RESOURCE SOLUTION, LLC, Relator, and presents this Petition for Writ of Mandamus relating to the Order Disqualzfizing

Jeffrey L. Coe from his representation of Relator, Innovation Resource Solution,

LLC. Relator seeks immediate relief from this Honorable Court to Vacate the trial

court’s Order Disqualifying Jeffrey L. Coe from his representation of Relator,

Innovation Resource Solution, LLC.

IDENTITY OF PARTIES AND COUNSEL The following is a complete list of all parties to the action pending before the trial court, as well as the names and addresses of all trial and appellate counsel.

Relator Relators ’ Trial Attorney INNOVATION RESOURCE Jeffrey L. Coe SOLUTION, LLC Attorney at Law P.O. Box 1157 Palestine,Texas 75802 (903) 723-0331 (888) 651-6851 Fax

Relator ’s Appellate Attorney Beau T. Sinclair Sinclair Law Office, P.C. , ,,

400 S. Broadway Ave., Ste. 102 Tyler,Texas 75702 (903)533-1005 (903) 533-1379

Real Parties in Interest Real Parties’ Trial Counsel Calvin B. Smith, Connie M. Smith, James Hankins and Branding Iron Investments, LLC 606 E. Crawford St.

Palestine, Texas 75801 (903) 729-2102 (903) 731-4732 Fax

Terry Thorn 608 E. Crawford St. Palestine, Texas 75801 (903) 729-6087 (903) 729-7605 Fax

Respondent 3”’ Judicial District Judge Hon. Judge Deborah Oakes Evans Anderson County Courthouse 500 N. Church St. Palestine, Texas 75801 (903) 723-7415

iii

TABLE OF CONTENTS

IDENTITY OF PARTIES AND COUNSEL ............................................ .. iii

TABLE OF CONTENTS .......................................................................... .. iv

INDEX OF AUTHORITIES ...................................................................... .. V

INTRODUCTION ................................................................ .. 3

RELIEF REQUESTED ........................................................... .. 3

ABBREVIATIONS & RECORD REFERENCES .......................... .. 4

APPENDICES .......................... ..................................... ,, ,

STATEMENT OF THE CASE .................................................................. .. 4

STATEMENT OF JURISDICTION .......................................................... .. 5

ISSUE PRESENTED ................................................................................. .. 5

STATEMENT OF FACTS ........................................................................ .. 6

SUMMARY OF THE ARGUMENT ......................................................... .. 7

MANDAMUS IS APPROPRIATE ............................................ .. 8

ARGUMENT ...................................................................... ..9 PRAYER .......................................................................... . . 1 5

CERTIFICATE OF COMPLIANCE ....................................................... .. 16

CERTIFICATE OF SERVICE ................................................................ .. 16

CERTIFICATE OF DELIVERY ............................................................. .. 17

APPENDIX ............................................................................................ .. 18

iv

INDEX OF AUTHORITIES

CASES:

Arkla Energy Resources v. Jones, 762 S.W.2d 694 (TeX.App.—Texarkana 1988 orig. proceeding) ................................................................... ..13

Berger v. Lang, 976 S.W.2d 833 (Tex.App.~Houston [15‘ Dist.] 1998, pet. denied) ................................................................................. .. 15

Canadian Helicopters, Ltd. v. I/Wttig, 876 S.W.2d 304 (Tex.1994) ................ .. 8

Carmona v. State, 941 S.W.2d 949 (Tex.Crirn.App. 1997) ........................ .. 14

Cimarron Agric., Ltd. V. Guitar Holding Co., L.P., 209 S. W.3d 197 (Tex. App. —

, ,,E1,Paso_20,Q6,,no,,pet,.), .................... .., . . . . . 2. . .2. ,. . _. ., 9,

Haggard v. Snodgrass, 770 S.W.2d 577 (Tex.App.—Da11as 1989, orig. proceeding) ............................................................................... .. 12

In re Balzn, 13 S.W.3d 865 (Tex.App.—Fort Worth 2000, orig. proceeding) 12

In re Ford Motor Co., 211 S.W.3d 295 (Tex. 2006) ................................ .. 15

In re Nitla S.A. de CV, 92 S.W.3d 419 (Tex. 2002) ........................ .. 12,13,15

In re Southwestern Bell Yellow Pages, 141 S.W.3d 229 (Tex. App. — San Antonio 2004, no pet.) ............................................................. .. 10

National Medical Enterprises, Inc. v. Godbey, 924 S.W.2d 123 (Tex. 1996) 11

NCNB Tex. Nat 7 Bank v. Coker, 765 S.W. 398 (Tex. 1989, orig. proceeding) ......................................................................... ..10,13,14

Parker v. Carnahan, 772 S.W.2d 151 (Tex.App.~Texarkana 1989, writ denied) ................................................................................ .. 14

Spears v. Fourth Court ofAppeals, 797 S.W.2d 654 (Tex. 1990) ............. .. 10,11

Terrell State Hosp. v. Ashworth, 794 S.W.2d 937 (TeX.App.——Da11as 1990, orig. proceeding) ......................................................................... . . 15

Walker v. Packer, 827 S.W.2d 833 (Tex. 1992) .................................. .. 8,12

STATUTES: Tex. Disciplinary R. Prof’1 Conduct 1.06 .......................................... ..9, 10

Tex. Gov“: Code § 22.221(b) ............................................................ ..5

CONSTITUTION Texas Constitution, article V, section 6 ........................................ .. 5

INTRODUCTION

The relationship between a party in a lawsuit and his lawyer is one of the

most important in law. For that reason, Texas law for 70 years prevents one party

from stripping the other of his attorney, unless there is an actual conflict by which

the attorney has represented both sides at Various times and one representation is

substantially related to the other.

RELIEF REQUESTED

The Relator, Innovation Resource Solution, LLC, asks this Court to issue a

writ of mandamus directing the trial court to Vacate its order of disqualifying their

attorney, Jeffery L. Coe.

ABBREVIATIONS AND RECORD REFERENCES '3' Innovation Resource Solution, LLC will be abbreviated as Relator.

RECORD REFERENCES

The reporter’s record was prepared by Ellen Earles, the Court Reporter for

the 3"“ Judicial District Court, Anderson County, Texas. A copy of the reporter’s record is submitted as part of the Application for Writ of Mandamus.

APPENDICES

Appendix 1: Plaintiffs Original Petition

Appendix 2: Notice of Appearance, Request for Notices and Def«;1dant’s Original Counter—claim

Appendix 3: Motion to Disqualify Counsel

Appendix 4: Reporter’s Record from April 13, 2015 hearing

Appendix 5: Certified Order Disqualifying Counsel

STATEMENT OF THE CASE

On February 21, 2014, Real Parties in Interest Calvin Smith and Connie Smith filed suit against Innovation Resource Solution, LLC for slander of title as a result

of a contract for the purchase of real estate being filed in the Official Public Records

of Anderson County, Texas. On or about November 4, 2014, Jeffrey L. Coe entered an appearance in the case as attorney of record for Relator Innovation Resource

Solution, LLC. APPENDIX 2. On April 13, 2015 a hearing was held and no witnesses were presented at the hearing. However, one exhibit was received by the

court in the April 13, 2015 hearing. See Reporter’s Record, attached as APPENDIX 4. On that same date, the Honorable Deborah Oakes Evans, Respondent, entered an

order disqualifying Jeffrey L. Coe as attorney of record for Innovation Resource

Solution, LLC. APPENDIX 5.

STATEMENT OF JURISDICTION This Court possesses jurisdiction pursuant to Texas Constitution, article V,

section 6, and Texas Government Code S 22.22l(b) stating that “Each court of

appeals. . .may issue all writs of mandamus. .against a. .judge of a district or . .

county court in the court of appeals district.” Tex. Gov’t Code § 22.22l(b).

ISSUE PRESENTED

Whether the trial court abused its discretion when it disqualified Relat0r’s

(Innovation Resource Solution, LLC) attorney of record from serving as legal

counsel for Relator and whether this Court should issue a writ of mandamus

instructing the district court to vacate its order disqualifying Innovation Resource

Solution, LLC’s attorney.

STATEMENT OF FACTS

Calvin Smith and wife, Connie Smith, are the plaintiffs in the trial court case,

Cause Number 3-42109. On February 21, 2014, Calvin Smith and Connie Smith

filed suit against Innovation Resource Solution, LLC for slander of title.

APPENDIX 1. On August 22, 2014, in another cause (Cause Number 3-42239,

styled In Re: a Purported Lien or Claim Against Calvin B. Smith and Connie M.

Smith, In the 3“ Judicial District, Anderson County, Texas), Calvin Smith and

Connie Smith secured an ex parte Judicial Finding of Fact and Conclusion of Law

Regarding a Documentation or Instrument Purporting to Create a Lien or Claim.

Cause Number 3-42239 was filed and signed on the same day. Additionally, Cause

Number 3-42239 was the subject matter in which respondents and Jeffery Coe had

an email line of communication and did not relate to information on Cause Number

3-42109. However, those emails were used to infer Jeffery Coe had gained

information in the underlying suit without any testimony at the trial court as to the

subject matter of the emails. See Attachments of Exhibit 4 and Exhibit 5. On November 4, 2014, Jeffrey L. Coe filed an appearance in Cause Number 3-42109 by

filing a Notice of Appearance, Request for Notices, and Defendants Original

Counter-Claim. APPENDIX 2. On March 18, 2015, Calvin Smith and Connie

Smith filed their Motion to Disqualify Counsel. APPENDIX 3. A hearing was held on April 13, 2015 on the Motion to Disqualify Counsel. At that hearing, Calvin

Smith and Connie Smith were represented by James D. Hankins and relator was

represented by Jeffrey L. Coe. See Reporter’s Record attached as EXHIBIT 4. No testimony was elicited at the hearing, however, one exhibit was presented and

received into evidence constituting communications between Calvin Smith and

Jeffrey L. Coe. See Reporter’s Record attached as EXHIBIT 4, also included at an

attachment in APPENDIX 3. On April 13, 2015, the trial court entered an order

disqualifying Relator’s attorney of record. APPENDIX 5.

SUMMARY OF ARGUMENT

There are 70—years of case law that a party to a lawsuit has no standing to

challenge his opponent’s choice of lawyer when that lawyer has not represented the

party. For policy and sense, Texas courts do not want a party trying to strip his

opponent of their constitutionally guaranteed personal attorney relationship and

protections, unless an actual conflict exists by which the attorney has represented

both parties in a substantially related matter.

Here, in a slander of title suit, Calvin and Connie Smith sought

disqualification of relator’s attorney, because the attorney had previously consulted

with Calvin and Connie Smith on a matter that involved a Purported Lien or Claim

against Calvin B. Smith and Connie M. Smith. This is distinguished from the

underlying action in which Innovation Recourse Solution, LLC is defending Calvin and Connie Smiths’ petition alleging quiet title on real property.

The trial court abused its discretion when it entered the order disqualifying

Re1ator’s attorney since respondents failed to produce any evidence requiring

disqualification. Additionally, any attorney-client privilege was waived as a result

of Respondents’ attorney submitting all communications between the attorney for

Relator and Respondents.

Unless this Court issues a writ of mandamus, relator will lose its experienced

lawyer and counsel of its choice. They have no other remedy.

MANDAMUS IS APPROPRIATE

adequate remedy by appeal, mandamus will issue to correct a clear abuse of

discretion or the Violation of a duty imposed by law. Walker v. Packer, 827 S.W.2d

833, 839 (Tex. l992). To obtain mandamus relief, the relator must demonstrate a

clear abuse of discretion for which there is no adequate remedy at law. Id. at 839-

840. A party establishes that no adequate remedy at law exists by showing that the party is in real danger of permanently losing its substantial rights. Canadian

Helicopters, Ltd. v. Wittig, 876 S.W.2d 304, 306 (Tex.1994).

Relator has a justiciable interest in the dispute. Relator is the defendant in the

underlying cause and retained Jeffery L. Coe to represent relator in this matter. The

trial court has not rendered a final order in the matter. If Jeffery L. Coe is disqualified

as the attorney for relator, relator will be unable to be represented by its attorney of choice. Relator specifically chose Jeffery L. Coe for representation based on the

experience and knowledge Jeffery L. Coe has in this area. Innovation Resource

Solution, LLC will suffer injury in being forced to proceed in litigation without its

chosen attorney. Innovation Resource Solution, LLC has no adequate remedy at law.

ARGUMENT

In most disqualification motions, the lawyer represented both sides to the

current lawsuit, triggering concern by the former client, now opponent. The issue

then is simply whether the prior litigation is “substantially related” to the currnt one,

or whether disadvantageous confidential information will be disclosed. See

Cimarron Agrz'c., Ltd. v. Guitar Holding Co., L.P., 209 S. W.3d 197 (Tex. App. — El

Paso 2006, no pet.).

ISSUE NO. REAL PARTIES IN INTEREST FAILED TO PRODUCE 1:

ANY EVIDENCE REQUIRING DISQUALIFICATION. Disqualification is governed by Rule 1.06 of the Disciplinary Rules of Professional Conduct:

(a) A lawyer shall not represent opposing parties to the same litigation. (b) In other situations and except to the extent permitted by paragraph (c), a lawyer shall not represent a person if the representation of that person:

(1) involves a substantially related matter in which that person’s interests are materially and directly adverse to the interests of another client of the lawyer or the lawyers firm; or

(2) reasonably appears to be or become adversely limited by the lawyers or law firm's responsibilities to another client or to a third person or by the lawyers or law f11m’s own interests.

(c) A lawyer may represent a client in the circumstances described in (b) if:

(1) the lawyer reasonably believes the representation of each client will not be materially affected; and

(2) each affected or potentially affected client consents to such representation after full disclosure of the existence, nature, implications, and possible adverse consequences of the common representation and the advantages involved, if any.

Tex. Disciplinary R. Profl Conduct 1.06, reprinted in Tex. Gov’t Code Ann., tit. 2, subtit. G app. A (Vernon 1998).

Rule 106 warns against offensive use of disqualification by one party against an

opposing party in litigation: “Such an objection should be viewed with great caution

. . . for it can be misused as a technique of harassment.” Tex. Disciplinary Rules of

Prof. Conduct 1.06, cmt. 17. The Supreme Court also takes a dim view of offensive

disqualification motions, explaining, “The [Disciplinary Rule] comments . . .

vehemently discourage the use of motions to disqualify as tactical weapons, as well

as the unnecessary calling of an opponent’s lawyer as a witness to invoke the rule’s

prohibition.” Spears v. Fourth Court ofAppeals, 797 S.W.2d 654, 658 (Tex. 1990).

Accordingly, in ruling on a motion to disqualify, the trial court must strictly adhere

to an exacting standard to discourage use of disqualification as a dilatory trial tactic.

NCNB Texas National Bank v. Coker, 765 S.W.2d 398, 399-400 (Tex. 1989); In re

11

Southwestern Bell Yellow Pages, 141 S.W.3d 229, 231, (Tex. App. — San Antonio 2004, no pet.); see also Spears, 797 S.W.2d at 656.

There is a two-part test for offensive disqualification motions such as

the Smiths’: (1) Is there an actual conflict in which the lawyer has at one time

represented both parties to the case? (This rule triggers the standing requirement.)

Only if the answer is yes do we proceed to the second question: (2) Is the current

litigation “substantially related” to the prior litigation? See, e. g., National Medical

Enterprises, Inc. v. Godbey, 924 S.W.2d 123, 132, 39 Tex. Sup. Ct. J. 698 (Tex.

1996); Spears v. Fourth Court ofAppeals, 797 S.W.2d 654, 656 (Tex. 1990).

In the case at hand, counsel for respondents offered email correspondence

without providing any insight or description about the communication. The Court

then looked at a few emails and inferred that these emails were substantially related

to the matter at hand. At the April 13, 2015 hearing, no testimony was elicited on

the nature of the emails or whether they were in anyway related to the case at hand.

As previously mentioned, the right of a party to choice the counsel that they believe

gives them the best opportunity in litigation is a very important right. Simply

examining emails that respondent believes to be substantially related to a different

matter should not rise to the level of disqualifying an attorney. The trial court does

not specifically identify the subject matter of communication or conduct that relates

to the current litigation. Prior emails directed at a current party in opposition without

12

any background information cannot be proof that the discussions related to the same

matter. This Honorable Court should vacate the order disqualifying attorney as no

evidence was presented that would lead the trial court to conclude that the matters

were substantially related or that a conflict existed.

ISSUE N0. 2: ANY ATTORNEY CLIENT PRIVILEGE WAS WAIVED BY REAL PARTIES IN INTEREST. The Texas Supreme Court has established a two-pronged test in order to

determine whether a relator is entitled to the remedy of mandamus: 1) the trial court

has clearly abused its discretion; and 2) relator has no adequate remedy at law.

Walker v. Packer, 827 S.W.2d 833 839-840 (Tex. 1992). The granting or denial of

a motion to disqualify is reviewable by mandamus. In re Bahn, 13 S.W.3d 865, 872

(Tex.App.~Fort Worth 2000, orig. proceeding). The disqualification of counsel

also renders remedy by appeal inadequate. In re Nitla S.A. de C. V, 92 S.W.3d 419,

422 (Tex. 2002). There is also no interlocutory appeal available from the trial

court’s interlocutory order on a disqualification motion. Haggard v. Snodgrass, 770

S.W.2d 577, 571 (Tex.App.—Dallas 1989, orig. proceeding). The standard of

review to apply is whether the lower court committed an abuse of discretion. Walker

at 839. A clear abuse of discretion occurs when a court reaches a decision so

arbitrary and unreasonable so as to amount to a clear and prejudicial error of law or

if it clearly fails to correctly analyze or apply the law.‘ Ia’.

13

Attorney disqualification should only be applied judiciously and with caution

since it can be used as an instrument of harassment. Arkla Energy Resources v.

Jones, 762 S.W.2d 694, 695 (Tex.App.—Texarkana 1988, orig. proceeding). The

proper procedural mechanism for challenging an attorney’s representation of a client

is a motion to disqualify. NCNB Tex. Nat’! Bank v. Coker, 765 S.W. 398, 399 (Tex.

1989, orig. proceeding). Additionally, in deciding whether disqualification of

counsel is proper, the trial court must determine whether the matters embraced

within the pending suit are substantially related to the factual matters involved in the

previous suit. NCNB Tex. Nat 7 Bank at 399-400. The movant must establish that

the opposing lawyer’s conduct caused actual prejudice that requires disqualification.

In re Nitla S.A. de C. V., 92 S.W.3d 419, 422 (Tex. 2002). The movant must prove

the existence of a prior attorney—client relationship in which the factual matters

involved were so related to the facts in the pending litigation that it creates a genuine

threat that confidences revealed to his former counsel will be divulged to his present

adversary. NCNB Tex. Nat’! Bank at 400. Real Parties in Interest failed to produce

any evidence that any prejudice resulting from the alleged limited communication

that occurred. Trial counsel for Real Parties in Interest could not in good faith have

introduced all email communications at issue with the belief that attorney—client

privileged information was contained therein. Relator believes that the only reason

for the attempt at disqualification is to prevent Relator from exercising his preference

14

and choice of trial counsel, and not because any legitimate argument exists as to

grounds for disqualification. Texas courts have found that a movant “must show

that there is a specifically identifiable appearance of the occurrence of improper

conduct and the likelihood of public suspicion or obloquy outweighs the social

interest in obtaining counsel of one’s choice.” Id. At 237 (quoting Haggard v.

Snodgrass, 770 S.W.2d 577 (Tex.App.—Dallas 1989, no writ). Real Parties in

Interest failed to show any actual prejudice resulting from opposing lawyer’s service

in the underlying cause. Further, it is not enough that a meeting occurred between

the purported client and attorney or that the attorney makes statements to the alleged

client regarding possible legal consequences. Parker v. Carnahan, 772 S.W.2d 151,

l56 (Tex.App.—Texarkana 1989, writ denied).

In the case at hand, Calvin Smith and Corrie Smith, admitted into evidence all

alleged attorney-client privileged materials, thereby waiving any attorney client

privilege. On April 13, 2015, the communications between Real Parties in Interest

and opposing attorney were submitted into evidence by their attorney James D.

Hankins. The power to waive the attorney client privilege belongs to the client, his

agent, or agent acting with the client’s authority. Carmona v. State, 941 S.W.2d

949, 953 (Tex.Crim.App. 1997). Any privilege that may have existed was waived

when the Real Parties in Interest, by and through their attorney of record, voluntarily

submitted the alleged privileged information into evidence without objection and

15

without any limitation on its accessibility or use. In re Ford Motor Co., 211 S.W.3d

295, 301 (Tex. 2006); Berger v. Lang, 976 S.W.2d 833 (Tex.App.—Houston [lst

Dist.] 1998, pet. denied); and Terrell State Hosp. v. Ashwort/1, 794 S.W.2d 937, 941

(Tex.App.—Dallas 1990, orig. proceeding). The documents are now public record. Disqualification is a harsh remedy, and in considering a motion to disqualify, “the

trial court must strictly adhere to an exacting standard to discourage a party from

using the motion as a dilatory trial tactic.” In re Nitla SA. de C. V., at 422. This

Honorable Court should vacate the order disqualifying attorney as any attorney-

client privilege was waived by Calvin and Connie Smith.

PRAYER

WHEREFORE, PREMISES CONSIDERED, for all the reasons briefed and

set forth herein and in the interests of justice and fairness, Relator praysthis Court

grant its Petition for Writ of Mandamus, and order the 3”‘ Judicial District Court in

and for Anderson County, Texas, to Vacate the order disqualifying Jeffrey L. Coe as

attorney for Relator and for all further relief to which Relator is legally entitled.

Respectfully submitted this day of Ocotber, 2015.

SINCL R LAW OFFICE By: Beau T, Sinclair SBN: 24029835 400 South Broadway, Suite 102 Tyler, Texas 75702 (903)533-1005 (903) 533—1379 (Fax) E—mail: beau@4§z'nclairlawQler.com

16

CERTIFICATE OF COMPLIANCE COMES NOW, Beau T. Sinclair, Attorney for Relator, and hereby certifies that the Petition for Writ of Mandamus contains 3,740 words including the caption,

identity of parties and counsel, table of contents, index of authorities, statement of

the case, issues presented, signature, certificate of compliance and certificate of

delivery.

Beau T. Sinclair \

Attorney at Law

CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of this pleading has been served on

Beau

1»/"

each attorney of record or parties as required by the Texas Rules of Civil Procedure.

Sinclair

Attorney at Law

17

CERTIFICATE OF DELIVERY

A true and correct copy of the foregoing instrument has been served in

accordance with the Texas Rules of Appellate Procedure via Fax Delivery on this

the W“ day of October, 2015, upon the following:

VIA FACSIMILE DELIVERY Honorable Deborah Oakes Evans 87”‘ Judicial District Judge 500 N. Church St. Palestine, Texas 75801

VIA FACSIMILE DELIVERY *JaI—nesHar—11<i—n9—j——~ 606 E. Crawford St. Palestine, Texas 75801 (903) 729-2102 (903)731-4732 Fax

VIA FACSIMILE DELIVERY Terry Thorn 608 E. Crawford St. Palestine,Texas 75801 (903) 729-6087 (903) 729-7605 Fax

VIA FACSIMILE DELIVERY Jeffery L. Coe 1000 N. Church St. P.O. Box 1157 Palestine, Texas 75802 (903) 723-0331 (903) 651-6851 Fax

7/»—---- Beau T. Sinclair Attorney at Law

APPENDIX 1

CALVIN B. $MiTH AND § li~l THE DISTRICT COUR? "Jim

3

CONNIE M. SMITH , gg,

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vs. § 3215 JUDSCIAL D§STRiCT .

lNNOVATlON RESOURCE sowrou, L.L.C. § ANDERSON coumrv, rams PLAINTSFFS’ ORSGWAL PETlT§ON TO THE HONORABLE JU DGE OF SAiD COURT;

Ncw comes, CAL\fiN 8. SMlTH and CONNlE M. SMFFH, hereinafter

called Plaintiffs, complaining of and about lNl\lQVATiC)N RESOURCE SOLUHON, l..l_.C., hereinafter called Deiendant, and for cause of action would

show unto the Cclul‘! the following:

DESCOVERY CONTROi. PLAN LEVEL 1. Plaintiffs intend that discovery be conducted under Discovery Level

PARTlE$ AND SERVLCE

2. Plaintiff‘ CALVIN B. SMITH, is an individual, whose address is 1619

Sam Houston Avenue, Huntsville, Texas 77340._

3. Plaintiff, CONME M. SMlTH, is an individual. whase address is 1619 Sam Houston Avenue, Huntsville. Texas E7340.

The last three numbers of CALVIN B. SMETH’s drivers license are

229. The last three numbers of CAD/lN 8. SMSTHS social security number are 975. The last three numbers of CQNME M SMlTH’s drivers license are 533.

CQNME M. SMl"l'H’s social secilrity numbgggre 5663

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5, As used hereén, “Plai:ntiffs“ shall include not only named flaintlffs,

but also persons whose claims are being represented by a Plalntlff.

6. Defendant, INNOVATION RESOURCE SOLUTION, L.L,C_,, is a

Texas limited liability company and may be served with proaess by serving its

registetecl agent, Timocthy A Wagner, at 6300 Ridglea Place, Suite 100, Fork Worth, TX 76116-5700.

JURISDICTION AND VENUE

?. The Cnurt has jurisdiction over this action to quiet title puprsuant to

Article V, Section 8 of the Texas Constitution and Section 26.E343(8) of the Texas

Governmem Code.

8. Venue in Anderson County is proper in this cause under Section

15.011 of the Texas Civil Practice and Remedies Code because this action

lnvclves real property located in Anderson County, Texas.

FACTS

9. This is an action to quiet title on real property, heneafler referred to

as “the Property“, described as fellows: All thatceriain lot‘ tract. orparcel of land

being more fully described can Exhibit A attached hereto, incorporated herein. and made a part hereof for all purpeses.

10. Plaintiffs are me rightful awners entitled to possession of the Pmperty.

11. Dafendant, lNNOVATlON RESGURCE SOLUTION, LE..C,,

purperts ta have an adverse claim or inlesest in the property that operates as a

clrzucl on Plaintiffs‘ title to the Property. The nature Clf Defengigntfsylnterest in the

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property is a claim of a right to purchase a portion of the properly arising under

an unenforceable and unexecuted unimproved property contract. Defendant has

recorded a Notice of Unimproved Property Centres: in the Official Public Records

of Real Propeny of Anderson County, Texas. The notice is recorded in Vol.

2394, Page 518, Official Public Records of Anderson County, Texas. a copy of

which is attached harato as Exhibit B,

12; The claim or interest of Defendant, WNOVATION RESOURCE SOi.UTlON, l..i..C., is invalid. unenforceable or without right against Plaintiffs

because the document that purports to be a contract is, in feel. not a contract

because It was not executed by all of the necessary parties. In addition, me document is not enforceable because it deals vléllh real estate and does not have

a valid legal description of the properly that satisfies the statute of fraudsr

DECLARATORY JUDGMENT

13. Pursuant ‘to Section 37.001 at set; of lhe Taxes Civil Praciice and

Remedies Code, Plaintiffs request an declaratolyiuclgment that plaintiffs are the

sole and rightful owners of the Property and that the document at issue ln this

case be declared to be null and void‘ unenforceable and aarrcellecl.

ATTORNEY’S FEES

£4. Pursuant to Section 37.0089 of the Texas Civil Practice-and

Remedies Code. request is made for all coats and reasonable attorney?» fees

incurred by Plaintiffs herein, including all fees necessary in the event of an

appsai of this cause to the Court of Appeals and tho Supreme Court of Texas. as

the Court deems equitable and fast;

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PRAYER

WHEREFQRE. PREMISES CONSIDERED, Pfaintiffs respectfuliy request

that Defendant ha cited to appear and answer. and that on fine: mat, the Com grant, Piaintéffs’ judgment quieténg title to the Property and removing cloud on

Plaintiffs‘ tftie, declaramry judgment, award of attomeyks fees and costs and any

other retief at Saw or in equity to which Plainfiffs axe emitted.

Respectfutly submified,

LAW OFFICES OF TERRY M. THORN 608 E. Crawford Sweet Paiestine, Texas ,7580§ Tet: 903-729-6987 '

————Fax:49a3:?29a*sa%~———————————— — —————~

9?: I Terry M. Thom

¥

State Qar No. 19965500

ATTORNEY FOR PLAINUFF8

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A11 £bnto<:rtzn”n Ital, tract «pm: arm: snuamé in Andamn Coumy. Tcmss em:

Gcorgt: finding League, A-3 and tiling a pit: ofzbe 22.56) am: tract conveyed to Calvin Bart

Smith and Cmini: M. Smith by Secure Ccwcaam fixxetests, By deed dated March 25‘ 201.3

and rccurdcd in Volume 2243. Page 420 of the Dfficiai Moxie Records cf Andcsscm Comxty.

Texas ané also was a pan uflhc samc 21.561 nere ttaéoldcacrfibad 2'1: Duct! u3"i'rust with the

Veterans Land Board, Cmrenz Trust Holder Caivin Bari Smith and Gzahrée M. Smith. {mm

Number 39061 37239 dead March 25,, 2,011 and «worded in Voiumc 2363, Page 425 ofxhe ~ Officia! mxhiic R.acordsqfA::x1e:m1 Cozzmgy. Taxas. Said tot, u’aat0rpav¢61ofiang1'b5§fl8¥*1°1’¢

I

pmicuimy dcscribnd by melee; andvbauuds as Eonuwm

EEGWMNG at 9 PK mi} found in Chunky Read 433 at the Scruthfikst same: nfthc 22.5451 mm: tract, thc Southwasi mama: of residur: cvfa ?:38.8<‘a'4 acre: tract mmtdad in Vclumt:

V381‘ }”ag<s S03 and mo W:-mrly Nmhxvcst camer of the Pin: Mountain Ranch. Lfi. 199.48 note

can rfscardcé in vozumc mrfvage 552 and me béfarthcssl comm" cf amen Craig no.o6am {met mcurdcd In Voiumc 2346. Fag: 471;

.

"£‘I:lEi~tCE NOXTH 37 degrees 32 nfiautc: 56 smnnéswost 3iI.23 €cetm 2 /a" iron was sex at the éwgnmrmmm ufa 5,547 amflmz surveyed this data, in me Samh fine are»: use: um: tram and North fin: ofthc 10,06 we met;

’I‘£iBI:£CB 240313 8 écgrees 34 m£mx21es24 secomis Wat 1236.51 fact he :3 1;“ icon red

at at cross-«Ea (‘mas corner at the Northeast comer of the 5.54? acre: mm;

TELENCE 1‘~1011’!'&! 88 degrees 27 uzinmcs $2 smmds West 109.43 fee: ta 1: Va" iron rod

fezmgs :11 (ha Nur1£1wcsLcomar cm: 5547 «acre tract and zhwarmaast camcx cf the San Craig 31.742 acre: tract mowed in Volume 2346, (‘age 471 and iii: Smxthcm Soume€sth6fit3E'5??' 49,743 acre tract swayed pmzicusly;

'I‘1~1E?~‘CE?~EOE.'I‘ii 0 degrees 14 mimics 59 scwrnds West 1312.2? font ma ‘/z" iron rot!

found a: the Normwcst comer Ofthd 2.2.562 non: mmland an eii comm‘ ofthc 49.743 acré tram:

THENCE. NOEIEH. 89 dcgsees 45 minutes 513 szzccnds an $99.33 fact to a :4“ from md faunas] at the Nnrthcaat «name: of thc 22.56! wt: tmzmhe Svuthcast comer of the -£93143 acre

~

twat and in th: West line oftlxc msidns 65238364 war: trans recorded in Votumc I781, Page

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THENCE SOUTH 0 dagrces 14 misuse: 50 scéends East 1553.90 fcecto the plan: of ‘auzecé case: my via

hegianiagg and cantaixfing mm ~»-os brxam.

énwrnmtm fie at

Exhibit B

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THE STYATE OF TEXAS § KNCIW ALLMLEIN BY WIESR rmzszmrs:

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as notice afthgt cazxin Unimprovcd Pmpcrty Ccnmot dated Jaumary 11. 2934

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shall (htceinalicr,fit“Cmkw€3mmndinwbymdbawmCdvm&SnfiXhm:§Comi:M. Smith, Ixxdisédaaliy, 3 married magic: iixareimflet-, wliactivdy nfgrred to 1: “S<:E1c:") mi imxqvazion Rssmzroe Solution, LLC, :4 Team limixed liability eqaqxnqy {h::‘e:imfia' rcfazed tn as“Pux'cm.s::"). BnthLhixMcmozmduma:;étheCem:scHt1n:g1uxhateutainuaaofImd bczingglswixr 0

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approximmzly 5.45? mm sflami at C. R. 453, Anderson Coimiy. Texas, out of 1 the 2256! xmza oflmd émnznd in Andmm Cnmxy, Tam ma the Georgia

3

Axxiing League, A-3 and facing a pm ot‘!ha‘22§".34$ new finctwrmyua an secure Cqvenm lumen-:a,,Lzd. By Daniel 3.. mm.

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byd4=cd<mcdApxil1«£, 20l0mdr=wndediaVo}tmc2X)O,P0g=2S6of1b¢ om;aaz>ub:xuRmmo:Amusoacaxw»’Ffi=tamawn3 mam, I Geoag,eBlo<:k zssx. Twat 1 cm my (ms M02043-)4).

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hordn by tufwence Ear ail! purposes as if su mwfimfla, the “'Pmpe:tY"), The Conmsut my flan}: specific team, obligations sad uovmauu oi lzhcpufios‘

rmsmmmmmwsmusmvxmuonmmanmuzrzxs mar um momcrvzs mum; CONTRA?! mzsumr T0 um "rams or nmcmmm.

SN WITNESS Puxchsscrhan umeaxmaoncz €417 UIGMPROVXD

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.PEt0PERTY CONTEACT 30 be; axeculed on this the 2813: ézyoifémuy, 2014.

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COUNTY OF DALLQ §

BEFORE MB, 131:: undcrsignad authority, up this day pexsorsaily axrpaaxed Tm A. Wagmr, of IN"NOVA°I'ION RESOURCE SOLUTION. LLC, a Texas Eimitod {iability campamy, § mm

Partner known ta m2: 1:: hr: the person whnw is subscribed to11:11:forcgnmg inxtmmmt and 3 ,--N‘ aduxowlcdgrxi to m: that he/she cxecmlxi zhse mm: for th:. pm-pgics and conaideratioxx xhmin 4 zsxpmssed mi in the capacity Lhcxcinsmud. GIVENUNDERMYHAND.MfDSEALOF OFFECE fl1is_&§3£day :>f!auu2uy,2!)14.

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J Icy H. pmzazga, Esq.

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APPENDIX 2

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IN "rm: DISTRICT c0I3m>i2 \

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V, .§ 3"’ JUDICIAL DISTRICT

§

INNOVATION RESOURCE § summon, LLC § pgmzqmsmr § ANDERSON CGUNTY, TEXAS

, ,,,,,_,,,,m fI(13ZHEfiOKDRABLE,.IU}1G3ELDESAIDJ30I1RT'H—r

NOTICE OF APPEARANCE AND REQUEST FOR NOTICES NOW COMES JEFFREY L. 0013 and hercby files this Notice of Appearance of record as legal counsei for INNOVATION RESOURCE SOLUTION, LLC, and Request for Nesices.

JEFFREY L. (JOE hereby requests that tlwcourt and parties send natice of any fixture. hearings

or action that is taken in tbs abovc~styied case, and that any pieadings 0!‘ other documentatien

filed of reccrd in this cause he saw: by the party fiiing said document to JEFFREY L. COB as attonvzy of record far INNOVATION RESOURCE 'SOLU'i‘XON, LLC.

DEFENDANT’S ORIGINAL COUNTER-CLAIM NOW COMES fNN€)VA’1‘iON RESQUKCB SOLUTION, LLC, a Texas Limited Liability Company, hereinafier called COu.ntcr~P1aI’ntiff,, complaining of and about CALVIN B. SMITH, hereinafier called Counter-Defendant, and for cause of agction shuws unta ths: Court the

fotlmvingz

PARTIES AND SERVICE

l.— Cour:ter~Pla.in%iff} INNOWXTION RESOURCE SOLUTION, LLC, LLC, is a Texas Limited Liability Company daing business in Anderson Couaty, Texas.

2. Defendant CALVIN B. SMITH is 2 Texas msiden: that may be serve& with has reiwmect copyofa

BEFENDAN'l”’S ORIGINAL COUNTER—CLAIM Appen-9: X Page ~~~ ;z.:maz an if: £1 ezzcsz -".’xx::::?.~,',Ta:as

Z§f1rtl'i':iC192tic

process pursuant to me Certificate of Service belaw.

JURISDICTION AND VENUE

C<:unte:r»P1aintifi' stipulates m the. pleadings an $33: indicating this com has jurisdiction and venua ofthis matter.

FACTS

4. On or about January 11, ZGE4, Counter-Plaintifi" entered into an Unimproved

Proyexty Contract for the purchasa of 5.67 acres of land located at CR. 453, Anderson Caxmty, ‘Fens. The contract contained specific provisions relating to thefinancing of the purchasc ofthe

property and was prepared by Counter-Defendant Calvin B. Smith. Over the cause of dea!-ing between Cou1:;'ter—P1aint$ff and Coxmtet-Defendant, Counter-Defendant held himself out to be a Sicenzmd real estaxs: agent and that by: bad specia§ skills and knowledge regarding and relafing to

real estate transactions. Counter-Defendant, had previously drafted real estate sales contracts-

between aifpames and had Eads :11: minus representations regarding his gfieciai skills,

knowledgg and expertise. Counterflaintiif nsiied on time representations and executed the contract preparexi by Counterflcfcndmt with full axpectaztions to ‘purchase the subject property.

Counter~PIainfiff became aware when the cantract was repudiated. by Counterfiefenéiant that in

fact Ccunicr-Defendant was not a Iioenm real estatae agent but was fraudulently using his fathefs rcai estaxe license since they both have the same name. Count::r~}’1aintifz“ reiied to his

dwimem: on the, representations made by Counter-Defendant regarding his special skiils,

knowlcdge and ‘expertise and tiaat the agreemenz that Cotmter-Defendant pmpar»-:é~a.nd executed

conferred spseific rights relating to the pszrclxase of the property when in fact it is new claimed that the agmcment dié not convey any rights in Counter-i’1aintifi‘ for the purchase of the

property.

5. Cmzntm-PIaintifi‘ contends that Cmmt,::~Defendant has. arbitrarily and capriciousiy mgated the Isms of the uontrac: véiich Counter-Defendant prepared. Ceunter- Defendant disregarded the terms sf that express onmract and tin veriuai and mitten repzesenmiona made to Counte:—Plaimifi°, and blatantly has refused to comply with the terms of the contract. Cmmner-Defendant engaged in a continuous course cf unconscionable actions by taking advantage of the dispamc bargaining position of Counter~Plaimi£f from the inception of the agreement through the date of th: fifing ofthis counterciaim.

I)l3FENl')ANT’S ORIGINAL CGUNTER-CLAIM

6. Counxer~P!a£ntifi‘ had eqjeyed a Eongstarnding and successful business reiaticstxsiaii’

with Counter-Defendant pxior to execution ofthe contract, and but far the promise ofthe contract executed bestween the parties, Counter-Plaintiff would never have committed the time, msomm and energy into coxnpliance with the terms and nonditéons set foth therein and Wonk! have sought

out legal counsei to prepare his own real estate sales contract. Counter-Defezudanfs faihtre ta

stand by the represemations made: :0 Counter-Plainfifi‘ has nesuited 3:1 substantia} flmcmciai injury

to Counter~P!aintiff.

COMMON LAW FKAUB

7. In addition to the bmach of contmct set forth above, Counter-Plaintiff farther

shows that Co1mter~Defendant made material false representations to Cotmter-Piaintiif with the

knowledge of their falsity or with realdess disregard of the truth with the intention that such

neprcsentations be acteé upon by Counter-Piaimiff, and that Counter-Piainziff reiied on these represmtations to its detriment. Namely, that cozmiés-zrxaimifr vmuld pmchase the subject property from Counter-Deferxéant and that Countewbefewiant was preparing a valid, enforceable

writtan real estate sales agreement which has now been claimed to be invalid by Coun.ter~

Defendant and that Counter-Defendant possesseé special skins, expertise, and knowledge in relation to real estate sales andtransactions sinee he was a licensed mat estata agent when in fact

he was frauduiexxfly using his fauLher’s reai esmte sales lioetuse.

8. Coux1ter~PlaintiPf wouid further show that Countewbefendxnt com-salad or failed

to disclose material facts within thc Icnowiedge of Counter-Defeniiaut, that Counter-Defendant

knew that Counter-Plaintifi‘ did not have knowledge of the same and éid not have. equal

0pp<)1'£1mi£y to discover the truth, and that Counter»~Defendam mended to induce Ce:mter— I’lair_1t':fi"to enter into the transaction made the basis efihis suit by such concealment or faiiure to

disclose.

9, As a pmximazte msult of such fmki, Counter-Plaintiff sustained damages within thi§ court"s3‘urisdimianai limits.

NEGLIGENT MISREPRESENTATION 10. Counter—PlaimEfi‘ wouid, show in the alternative the: Co1mt:r~Def’endan: supplied

~

false infonnation in the course af said Cmm£cr«DeR:ndazi£'s business, prufession or employment, or in the course of at mxnsaction in which Countepflefendant had a pecuniary ixzterest, and am: such information was suppiied by Counts:-Defendant for the guidance of Comm,-r—P1aimiffin the -

mma. corsectzxepyafa

fozmsmz an Sic tf

DEFENDAN'I“’S ORIGINAL COUN‘X‘ER~CLAiM 5 P385 3 ~.

transactiens described hercinabove, Cm.zntervDefendant fadlcd to exercise reasonable care or

competence in obtaining or commxmicazing such information. Ccanter~Plaintiff avers that

Commzcxviflaintifi‘ suffered pecuniary loss which was proximately caused isy Cozmter«P§aintifi‘s

justifiablc rciiance on such information.

ll. Counter-Plaimifi" fimcrefore asserts a cause of action for negligent

misrepresent.-man against Cmmter~Def:rzdant, as provided by

__'l;y}_g;,g,_S}_qg.a_§, 825 S,W.2d 439 (Tex 199:).

BREACH OF CONTRACT

ll Counter~Plaimiff would further show that the actions and/or emissions of

Defendams described hercinabcve constimte bmch of contract, which proximately caused the direct and conscquemial damages of Ccuntcrmaintitf described hcrcinbclow, and for which Ccmmcr-Plaintiif hereby sues.

DECEPTIVE TRADE PRACTICES:

l3. Counter-Plairztiff would show that Ccuntcrfiefcndant engaged in certain false,

nfisleading and dcceptfive acss, practices and/er omissions actionable under the Texas Deceptive

Txade Pmcficcs ~ Consumer Protection Act (Texas Business and Commerce Code, Chapter 17.42, §t___s_gg.), as alleged hcrcinbeiow.

14. ms . c x =..»_ , .-. .. .3. -_

‘

o 1-,_."

giggfign, Countenbcfendanz engaged in an "uncoxxsciothableactioxt or coursc of action“ to the detrimcnt of Countcr-Plaintiff as that tam is

defined by Section 1145(5) cf the Texas Business and Commerce Code, by taking advantage cf the lack of knowledge, ability, experience, or capacity of Comm-.r»P1ainfifi‘ to a grossly unfit}:

degree.

14. Defendant violated Section 17.4602) of the Texas Business and Commerce Code, in that Defendant:

8:) caused confusion or misunclarstandlng as In the source, sponsorship, approval, or certificafion ofgoods or scrviccs;

(32) mprcscnted that goods or servicw have spcnsomifip, approval, charactezrfistics, ingredients, uses, benefits, or quantilies which they do nu: havc or tha’:’ a person has a spcnscrship, appmval, staius, afiiliation, or conncction which he does not;

(c) rcprcscnted that an agrecmcnt confem or involves fights, remedies, nr

obligations which i: does no? have or involve, or whlch are prohilsited by law; and

nzpaxnarws omcman COUNTER-CLAIM

(e) faifed to disciose infermation concerning goods or services which was

known at the time of the transaction with me imcmion to induce the consllmfir 31110 K

transaction into which the consumer would not have esxtewd had the information wen disclosed.

I5. Ccumcr~PIa§ntiff woukl Show that the ants, practices andfor

omissions complaineé ofwere the producing cause of Counter-Plaintiffs damagea.

15. Contact-Plaintiff wouid fizflher show the, acts, practices and»,/at

omissions complained of under Section 17.4~6(b} of the Texas Business and Ccmmerce Cocie

were rciied upon by Counter-Piaintiff t0 Coun£er~PIaintif§‘s detriment.

17. Coumer—P1aintiff‘ was unahie to provide

written notice to Coumer~Def:ndani sinca suit was initiated by C0untervDefendant against

Counter—P1aintiffami the case is currently set far aria}.

I«:c0No1viiTC AND ACTUAL uuixens 18. Cor.mter—¥’lain1ifi' sustained the economic and actual damages as a resuh ‘cf the

actions andlcsr amissicms of Countewnefendants éescribod hereinabove within the jurisdictional

limits of this court.

MU LTEPLE BAMAGES

19. As alleged hereiuabove, Crmnter-Piaintifi‘ wouié show that the false; misleading

and dcceptive acts, practices and/or omissiens cpmplained of herein were committed "1mowing!y“ in that Couater~Defenc1ant had actual awareness of the falsity, deception, £3:

unfaimess efsucix acts, practices, and/or eamissions.

20. Couutsr—P1ainti§° further avers that such acts, practiees. and/or omissioxis were

committed "imemional1y“ in mat Comxtex-Befexzéanl specificaiiy intcndcd that Count-.r~P1aintifi' act in detrimental reliance on the wsity or Ciacepticn or in detrimental ignorance of the unfaimess.

21. Therefbre, CounI:er~P$aimifi‘ is entitled 1:: recover rrmitiplc damages as provided by I7.5G(b}{l} 91' the 'E‘exas Business ami Commerce: Coda.

EXEMPLARYDAMAGES

22. C4m‘ntar~?1aimifi' wouid fin1I:er show that the ants and omissions of Counter.

Defendant complafiseé cf herein were coxnmitted kn-owingiy, wilifully, intentionally. with aetual awmness, and with the specific and pmdetemxined inxeminn of enriching said Counter»

D131'<’ERI}ANT’S ORIGINAL COUNTER-CLAIM

Defendant at the expense of Cuunter-Piaintiff. In order to punish said Cuunu:r~Defendant for such unccnscionabic orverreaching and to deter such asthma azxdler omissions in the fixture,

Counter-Plaintiff also seeks recovery fiom Counter-Defendant fur exemplary damages 33

pmvissed by Section 4! .0030) ofrhe Texas Cfivil Practice and Remedies Code.

ATTORNEYS FEES

23. Request is made for ail costs ané xeascngbie and mtcessary attomeys fees incurred by of on behalf of Counter-Piaimziff herein, including :11: fees necéssary in the event of

an appeai of this cause to the Court of Appeals anci the Supreme Court 0:“ Texas, as the Court

deems equitabie and just, m provided by: (a) Chapter 38 of film Texas Civil ¥'i*aetic<: and Remedies Code; (19) the Texas Deceptive Trade Pmctices Act; and (1)) common law.

PRAYER

wmannroxs, PREMISES CONSIDERED, Plaintifi‘ mspecifuily prays that the

Defendant be cited ts appear and answer herein, an-i than upon a final hearing of the cause, judgment be catered for the Plaintiff against Defendant for the ewnomic and actzsai damages requested hcreinabovc in an amount in cxmss of the minimum jurisdiotimral limits of the Court, togethcz with prejudgment and postjudgmerst interest at the maximum rate auoweé by iaw, attorney's fees. costs of court, and such other and fixrther relief to which the Haintiff may be

~

entitled at law or in equity, whether pied or unpled

~

Reapectfuily submitted,

~~ Attamey at Law

”

Cy

State: Bar No. 24901902 1000 N. Church St. PO. Bax I 15 7 Pafestine, TX 75802-1 £57 T61. (903) 723-6331 Fax. (388) 65143851 Email: jcff@¢oe§awfirm.oom Attflrney‘ for Com1t:*:r~Pfaintif‘f

~‘,;¢:w.v N 49 ~ W_

4‘ A

_g-.:§g’¢E::,:"‘s:a;$n.a:

333“ .&-‘mi

:~

nnmxngwrs omemgn cotn~m:R—cLmM , Page 6 of 3 Pages

g§g;;;_g;cA'rg;_ gr sggx;Q};

on Novstmber 4, 2014 2 true and correct copy cf the foregoing Defendanfs E certify 3:31 Originai Counter-Chaim was served pmsuant ts; tbs Tsxas Rules of Civil Procedure. on opposing couxzsel.

DEFENDANT’S ORIGINAL COUNTER-CLAIM ?age 7 of 8 Pages

mew

;-29

~

~~~

”‘ “.S’v“A?e'Gs.1§x_gs Qeearms »

M2: 3my ‘:

.57‘¢‘_«9LE$‘ .6.t§Rx.e! ossrasc, TEXA$T3Q‘34§%E3Wc§RTiE?»1§4§$ ‘€145 ~

ooz>s?.m¥2¢e«><amawgxt;jas tn ‘UB-

'

.

~ :2‘

APPENDIX 3

CAUSE NO. 3-42109

CALVIN SMITH, B. SMITH AND CONNlE M.

Plaintiffs

§ IN THE THlRD JUDICIAL D Em § E‘:

vs. § COURT OF §

INNOVATION RESOURCE § SOLUTION, LLC, Defendant § ANDERSON COUNTY, TEXAS

MOTION TO DISQUALIFY COUNSEL

TO THE HONORABLE JUDGE OF SAID COURT:

Calvin B. Smith and Connie M. Smith, Plaintiffs make this Motion to Disqualify

Opposing Counsel and in support of this motion shows:

I.

Calvin B. Smith and Connie M. Smith are Plaintiffs in the above entitled cause.

Innovation Resource Solution, LLC, who is represented by Jeffrey L. Coe. is the

opposing party in the current cause, with interest adverse to those of movants.

11.

Jeffrey L. Coe formerly sewed as counsel to movant. Specifically, Jeffrey L. Coe served as counsel to movant, Calvin B. Smith in the first part of the year 2014. The

matter in which Jeffrey L. Coe represented movant is the same or substantially related

to the present matter in that Calvin B. Smith consulted with Jeffrey L. Coe regarding

innovation Resource Solution, LLC filing of a unsigned page of an earnest money

contract of record that had the effect of slandering title to the property. After the initial

C. Smith — Motion to Disqualify Page 1 of 3

consultation, Mr. Coe sent email Correspondence to Mr. Smith instructing him that he

would need to file an action to remove the document that was slandering the title. The

current lawsuit is exactly the action that Mr. Coe recommended and is now opposing. The two matters have the following issues in common: The filing by the Defendant of a

single page of the alleged earnest money contract is a filing of an illegal document

under the law. This filing slanders Plaintiffs’ title. The Defendant is liable to Plaintiffs for

statutory damages and attorneys’ fees. The nature of the former representation is

supported by email correspondence from Jeffrey L. Coe attached hereto as Exhibit A.

Ill.

" '

fl nstherscourse ofmthe "representation "oFmovant:WJeffrey***Li““Coe "0 btainedm

confidential information that he could use to the disadvantage of movant in the current

matter. Movant has never consented, expressly or impliedly, to the disclosure or use of

any information obtained in the course of the former representation. and objects to

Jeffrey L. Coe sewing in this matter.

THEREFORE, Calvin B. Smith and Connie M. Smith pray for this matter to be set

for hearing and that on final hearing the court rule that Jeffrey L. Coe is disqualified from serving as counsel in this matter. that no work product generated prior to this motion be

made available to new counsel. and for such other and further relief to which movant

may be justly entitled.

C. Smith - Motion to Disqualify Page 2 of 3

Respectfully submitted,

LAW OFFICES OF JAMES D. HANKINS 606 E. Crawford Street Palestine. TX 7582 Telephone: (903) 729-2102 Fax: (9 ) 731 -4732

By: / ,,__\,£Q

’

A ES D. HANKINS S te Bar No. 08912300

, mailzjdh@jameshankins|aw.com Attorney for Plaintiffs

LAW OFFICE OF TERRY M. THORN 608 E. Crawford Street

—

"Palestine,TX*7580'1"""*""""r —

Tel: (903)729-6087 Fax: (903)729-7605

TERRY M. THORN Texas Bar No. 19965500

Attorneys for Plaintiffs

CERTIFICATE OF SERVICE

A true and correct copy of the fomyggzing

instrument was served in accordance with the Texas Rules of Civil Procedure on rch [ 2

James D. Hankins

mail: jdh@jarneshankinsIaw.com '

C. Smith — Motion to Disqualify Page 3 of 3

On Tuesday. February 11. 2014 3:35 PM. Jeffrey L, Coe < eff@coelawfirm.com> wrote:

""Ml‘."Sl"'riith.’

’ ' ’ ’ ” ’ " ' ' ’ " ' ’ " ’ ’ " "

You sent me everything need to I tile the motion to remove the irnproperlinvalid lien. Just need to make payment arrangements and lwitl file this tomorrow. will need you to sign the verified pleading. have court in I I

the District Court on Friday and will approach the judge with the order then and get it signed and filed and back to you.

Jeffrey L. Coe Attorney at Law Law Office of Jeffrey L. Coe 1000 N. Church St. (75501) P. O. Box 1 157 Palestine, TX 75802-1 157 (888) 651-6851 Toll Free (903) 723-0331 Phone (868) 651-6851 Fax Email i§ff@coe|awfirm.cgm

CONFIDENTIALITY: This email. and any attachments. are intended only for use by the addressee or addresses named herein and may contain legally privileged or confidential information. if you are not the intended recipient of this email, you are hereby notified that any dissemination, distribution, or copying of this email or of any attachments hereto is strictly prohibited. If you have received this email in error. please delete the original. any copy of this email or attachment. and any printout thereof and notify the sender Immediately.

NOT INTENDED AS A SUBSTITUTE FOR A WRITING: Notwithstanding the Unifonn Electronic Transactions Act or the applicability of any other law of similar substance or effect. absent an express statement to the contrary herein, this email message, its contents. and any attachments are not intended to represent an offer or acceptance to enter into a contract and are not otherwise intended to bind the sender. the Law Office of Jeffrey L. Coe. any of its clients. or any other person or entity,

From: Calvin smith om ’

; I n I:

sent: Tuesday, February 11, 2014 11:31 AM To: Jeff Coe Subject: Current Survey Exhibit A

Page 1 of 5

On Monday, February 17, 2014 4:54 PM, Jeffrey L. Coe <jetf@coelawfirm,com> wrote

get intouch with Jackson.

'

’l’lt

Jeffrey L. Coe Attorney at Law Law Office of Jeffrey L. Coe 1000 N. Church St. 05801) P. O. Box 1157 Palestine, TX 75802-1157 (888) 651-6851 Toll Free (903) 723-0331 Phone (888) 651-6851 Fax Email jeff@g9_e gwfrrncgm

CONFIDENTIALITY: This email, and any attachments, are intended only for use by the addressee or addresses named herein and may contain legally privileged or confidential information. if you are not the intended recipient of this email, you are hereby notified that any dissemination, distribution, or copying of this email or of any attachments hereto is strictly prohibited. If you have received this email in error, please delete the original. any copy of this email or attachment. and any printout thereof and notify the sender immediately.

NOT INTENDED AS A SUBSTITUTE FOR A WRlTtNG: Notwithstanding the Uniform Electronic Transactions Act or the applicability of any other law of similar substance or effect. absent an express statement to the contrary herein. this email message, its contents, and any attachments are not intended to represent an offer or acceptance to enter into a contract and are not otherwise intended to bind the sender, the Law Office of Jeffrey L. Cue, any of its clients. or any other person or entity.

From: C Smith [mallto:aggie|ending@gmali.com] Sent: Friday, February 14, 2014 4:56 PM To: jetT@coelawfirrn.com subject: Fwd: Relase of EMC

Please see below. We thought we had this all worked out, but looks like we are wrong. spoke to I

Jackson Hanks and he said he will discuss with you the situation. want to make sure we get this

I

handled so his underwriters will issue a title policy on the cash sate.

‘

ExhihitA Page 2 of 5

Thanks, C

Begin forwarded message:

From: "Tim Wagner" <tim.wagner@iresourcesoiuiion.com> Date: February 14, 2014 at 1:28:15 PM CST To: <agglelending@_qmaii.com>, "mark mullin" <markmuiiin@hotmai|.com> Cc: "Joy Phillips“ <JPhiiligs@i‘iiawoffice.com> Subject: RE: Release of EMC

Calvin & Mark,

i am in receipt the Release of EMC by your Title Company. innovation Resource Solution (iNNOVATi0N) is willing to entertain a monetary settlement for our Release of Claim.

As you are aware, this matter has weighed heavy on my heart and there has been much discussion regarding personal beliefs and desires to be Christ-like both in spirit and nature, believe that applies to

I

all parties. I also have responsibilities to our investors. The property is both strategic and vital to

INNOVATlON's agriculture plan.

with regards to the Smith's, lNNOVATi0N has suffered damages and is entitled to their right to purchase the land as per the contract or be compensated for damages.

As Mark stated, “Calvin never should have taken it this far’ but that was Calvin’: choice. Calvin is experience and licensed in real estate transactions, agricultural lending, and should be held accountabie rather than rewarded for his actions.

Absent ofa Settlement, INNOVATION will continue to pursue its CLAIM ofthe property and pursue every legal remedy at its disposal by all lawful means that have been previously stated by our Legal Counsel.

Respectfully,

T«'»n~ A. W454-ea Innovation Resource Solution, LLC 6300 Riglea Place, Suite 100 Fort Worth, TX 76116

Ph: (972) 793-2298 e—fax: (866) 354-8604

The information in this message is the property of innovation Resource Saiuuonr LLC. This message is inlended only ior the use at the addressee named above and may contain legally privileged andlor confidential iniorrrrauon. if you are not the intended recipient of this message. you ara hereby notified that any use. dissemination, distribution orcopying of this message is strictly prohibited. if you receive this message in error. please notify us immediately by telephone or return s~ mail and delete the massage. all copies thereof and any zmzchrnensa We thank you for your cooperation.

Exhibit A Page 3 oi 5

From: mark muilin imaiitmmarkmuliinQhotmailcom Sent: Thursday, February 13, 2014 2:59 PM To: gimwagner@i;esogrce§_qlgtion.;gm Subject: FW: Release of EMC

Tim:

in answer to your question about what are you being asked to do, the title company is asking that you execute this document and have it notarized.

Let me know ifl can help.

Thanks, Mark Muiiln

Subject: Fwd: Release of EMC From: aggieiending@gmaii.com Date: Thu, 13 Feb 2014 10:48:16 0600 To: rnarkmuliin@hotmaii.com

FYI

Begin forwarded message:

From: Rebekah Cannon <rebekah.cannon@texasfirstt3tie.com> Date: February 13. 2014 at 9:01:54 AM CST To: "aggielending@gmail.com" <a ielendin maii.com> Cc: Mary Arie <rna .arie texasfirsttitie.com> Subject: Release of EMC Mr. Smith,

Here is the Release of Earnest Money Contract. Mary asked me to forward this to you. if you have any questions, please let us know. Thank you, Rebekah Cannon Escrow Assistant

Texas First Title Company, LLC 601 E. Lacy Street Paiestme, Texas 75801 903.723.5393 - Office 903.731.4739 ~ Fax Rebekah,cannon@texasfirstt§tie.corn

Exhibit A Page 4 of 5

CONFIDENTIALBTY NOTECE: This message ls fur the benefit of the named person(s) only. It may

contain cunfidenzéal, proprietary or legally privileged information. Nu confifientialiiy or other pfwilage is waived or lost by any mis-transmission. Do not directly or indirectly use. disclose, dlstribuxe, print or copy any part of the message xransmllted if your are not the intended raclplent. Ifyou receive thls message in error, please lrru-nediately delete it and all copies of it fram your system. destroy all hard copies and notify the sender of its receipt.

sj3l;rm;"%a;;rl.a"ls;a1l:;;‘;;;;;g;g.;. Checked by AVG - www.avg.com Version: 2014.0.4259 I Virus Database: 3697/7088 - Release Date: 02/12/14

Exhibit A Page 5 of 5

APPENDIX 4

..x

REPORTER‘S RECORD VOLUME 1 OF 1 VOLUMES

N TRIAL COURT CAUSE N0. 3-42109

m

CALVIN B. SMITH, CONNIE M. ) IN THE DISTRICT COURT a SMITH, )

m

)

3

Piaintiffs, 3

m )

VS. ) ANDERSON COUNTY. TEXAS N )

3

m INNOVATION RESOURCE 9 S0£UTION, L.L.C., }

m

5

Q Defendants. ) 3RD JUDICIAL DISTRICT —-\‘—ls

)

..\.

.4 IR)

.4 OJ

.3 41

.3 U1

...\ CD

.4.

‘*4

.4».

(X7

._s.

(Q

N0 On the 13th day of Aprii, 2015, the foT3owing N1 .:u

proceedings came on to be heard in the above-entitied NN and «numbered cause before the Honorab1e Deborah Oakes N CA).

Evans, Judge presiding, haTd in Palestine, Anderson N -h County, Texas; l\3 U!

Proceedings reported by machine shorthand.

...\

APPEARANCES

FOR THE PLAINTIFF8:

Mr. James Hankins LAW OFFICE OF JAMES D. HANKIN5 606 East Crawford Street Pa1estine, Texas 75801 Telephanez (903) 729-2102 —‘-$COO9\§a3C)'1-§~(D3f\)

SBOT No. 08912300

FOR THE DEFENDANTS:

Mr. Jeffery Coe LAN GFFICE OF JEFFERY COE 1000 North Church Street

..A..a.

Palestine, Texas 75801 Te1ephone: (903) 723-0331 SBOT NO. 24001902

...x M)

....A (10

.2;

-Ph

....x O‘!

.4 O‘)

...a -3

..x

03

.3.

(O

B) O

N _.x

N) N!

Ix: 60

N -(X

M 01

...n

INDEX

VOLUME 09 1 VOLUMES 1 P0 (MOTION TO DISQUALIFY) (J3

Page V01.

APRIL ‘I3, 2015

-5-

Court‘s Rafling . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . 5 1 0301

End of proceedings . . . . . . . . . . . . . . . . . . . . . . . . .. 6 1

Court Report:-ar's Certificate . . . . . , . . . . . . . . .. 7 1

-‘:©€QUD‘~{

EXHIBIT INDEX

..;.a.

PLAINTIFF8‘ NO. DESCRIPTION OFFERED ADMITTED VOL.

.4.

N A E—ma1'1s 4 5 1

_s.

(13

J>»

.4

..x (J!

.a G}

_>.

‘J

A 00

.1 {O

MO

N ..\

MN

NW

N 4¥

M 0'!

,3.

P R G C E E D I N G S

(Open court) THE COURT: Okay. I know I got a —- iet me go ahead and ca11 this one because I know it’s going to take a1} of a second? and than 1'31 do the p1ea. Ca1vin Smith and Innovation Resource.

OCOO0‘*~lC7)U‘l3?»0DX\)

MR. HANKINS: Yes, Judge. THE COURT: The rest of y‘a11 can have a

seat.

_x MR. HANKINS: I represent Mr. Smith.

-3 ...x

THE COURT: ?hat‘s 3«4210Q. Let me have ..x

N the file. Okay. I haé a hearing on a Motion to ...x 03 Disqua11fy Mr. Coe as counsel. Correct?

.3 -33

MR. HANKINS: Correct.

...x (.71 THE COURT: That was -- there was a writ ..\ C) fiied?

...s.

N MR. HANKINS: Yes, he took ~~ on procedurai .4.

W matters, and it's been -- that waa held as moot because ....x

(D the Court entered an order rescinding that first order l\)

O so we couTd do it and get the evidence in.

N) .4 THE COURT: Okay. And what is the MN evidence? N (40 MR. HANKINS: It‘s Exhibit A. It's the N «[3» e-maiis from Mr. Cue ta my a11ent.

IN? C}!

THE COURT: Those are the ones that I

.1»

actually a3ready reviewed, correct --

MR. HANKINS: Yes. MR. CUE: Yes, Your Honor. THE COURT: -- when I made my 1nitia1 deciséon?

MR. HANKINS: Right. MR. CO5: Yes, Judge, you've a1ready aomoawmmhwm

reviewed those, and I don‘t have any objection to the e-maifs.

...a

THE COURT: Okay. Exhibit A fis admitted 7 7 7 i K K

._\

into avidence.

._\

N flR. HANKIRS: So the test is this is ....x

W substantiaT1y re1ated tn the very case ~—

_A $3 THE COURT: It is, I mean, and I’d Tike to .4 U!

keep you cm the case, Mr. Coe, but I just —~ I thought ...n U!

ha was disquaTified. That's why I entered the arder to ....n ‘*4 begin with. I stiii think you‘re disquaiified.

.3 G3 MR. 805: That‘s fine, Judge. I

.a.

(O understand.

M0 THE COURT: So I'm signing the order R3 .4 d€squa1ifying you, and then hbpefu11y we can get M {Q somebody e3se on the case pretty soon, and then N (J0 thereafter we can get the tria1 date set. Okay?

l\> -1% MR. HANKINS: Thank you. Your Honor.

l\) 61 THE COURT: Let me get this signed, 1*}?

..A

give that to y‘a11, and then 1'}? take up the plea.

(End of proceedings)

CJL0C0"-ICDCJ’l-IXOJYKJ

_x

.4.

-A

.4 [V

...s

W

.4. «law

.3 O!

.2.

G7

....\ '\l

..A~

(X?

A (9

MG

N ....u».

NN

N U)

N -33

N 01

.3

REPORTER'S CERTIFICATE

THE STATE OF TEXAS COUNTY OF ANDERSON )

I, Eilen Earies, Deputy Officiai Court Reporter in and for the 3rd District Court of Anderson County, State CD(D®\fG’)<J‘!4>-L\3f\}

of Texas, do hereby certify that the above and foregoing contains a true and correct transcription of a1] portions of evidence and other proceedings requested in writing by counsoi for the parties to be inciuded in _:

this volume of the Reporter's Record, in the .3.

.4

above—sty1ed and —numbered cause, ali of which occurred _x N in open court or in chambers and were reported by me.

.a.

C0 I further certify that this Reporter's Record of .4.

-F the proceedings truiy and correctly reflects the ..x U!

exhibits, if any, admitted by the respective parties.

..m G) I further certify that the totai cost for the .4 ‘-1

preparation of this Reporter’s Record is $ and .1.

00 was oaid by ___________ WMWMMMWW.

.4 {Q WITNESS MY OFFICIAL HAND this the 15th day of N0 September, 2015. K3 .4

NN Eiien Ear1es, Texas CSR #9i01 N (A!

Expiration Date: 12/3112015 Susan waidrip Court Reporting N ~§ PO Box 1507 Fairfiefd, Texas 75840

N .01

Teiephonez (903) 389-4827 Fax: (903) 389-4310

T‘)

{I ‘fit .

an Tuesday, February 11, 2014 3:35 PM, Jeffrey L Cue wrote:

Mr. Smflh.

You sent me everything need to file the rrmtlor: to remove the lrnproperlinvalid lien. Just need to make

I

paymeaf arrangements and file this tomorraw. will need you to sign {ha verified pleading. have court in 2 will I l

the District Court on Friday and will approach thejudge with the order than and get ii slgned and filed and back to ‘you

Jeffrey L. Cua Atiomey at Law Law Office of Jeffrey cos

V

1..

1000 N. Church St. (75801) P. O. Box ‘I ‘I57 Palesfine. TX 75802-1157' (B88§ 651—685’l Toll Free (903) 72340381 Phene (885) 651-33851 Fax Email jeff@cnelgwfirm.co‘m

CONHDENTEALITY: This email. and any afiachmenis, are intended only for useby the addressee or addresses named herein and may comain legaily privileged or confidential lnforrnationr {E you are not thain-tended recipient of this email.you are herebynptified that any dissemination, distribution, or copying at this email or of any atlachmenté herein prohibited, if you have received this email in error, please deleta the original, any copy of this email is strictly

or attachment and my printout thereof and notify the senderimmecliately.

NOT WTENDED AS A SUBSTETUT E FORA WRiTlNG: Notwithstanding the Uniform Electronic TF3l'lS8C‘5Uf‘l$ Act or the applicability of any other law of similar substance or effect. absent an express statement to the contrary herein, this email mességé. its oonterrls; 3”“ any attachments are not intended in reprasant an offer or acceptance to enter ma L 3 contract and are not olherfinisa intended to blur: the sandar, the Law Qffice of Jeffrey Coe, any of lts clients, or any cthar person or entity. .

From: Calvin Smith {mg$l;9:§‘:go§nsc@5g:ahgg tom] Sent: Tuesday. February ‘H, 2014 ’ll:3‘l AM Ta": Jeff Coe § Subject: Currant Survey

1

Exmbxm Page? nf5

§

on Monday‘ Feloruary 1?, 2014 4:54 PM! Jeffrey L. Goa <je'ff@’coelawfirm.c.am> wrote

121 get tn touch with Jackscn.

Jeffrey L. Cane Attorney at Law Law Office of Jeffrey L. Cog 1009 N. Church St. (75801) F‘. G. Box1157 Palestine, TX 76802-1 157 (388) 65?-6851 Tail Free (906) 723~033’t Phone (888) 651-6851 Fax Email Lefi@::.<a§aLfimc_9.rn

C_3ONFEDEN’I’lAl.lTY: This ematl, and any attachments. are intended only for use by t’ne.addressee or addresses named herein and may contain tegally privileged or aonfidential information. lf you are not the intended recipient of this email, you ‘are hereby notified that any ‘dissemination, distrflautlon, dr copying of this email or of any attachments hereto is strictly prohibited. If you have received this email in ermr. please delete lhe origins}. any copy of this email mi attachmemt. and any printtxutthereaf and notify the sender Immediately.

NOT INTENDED AS A SUBSTITUTE FOR A WRITING: Notwithstanding the Uniform Electronic Tra nsacfions Act or the appfieabllity of any other law of similar substance or effect, absentan express statamentto the contrary herein‘ this email message, its contents, and any attachments are not Intended to represent an offer nr acceptance to enter '

‘into a contract and are not otherwise intended to bind the sender, the Law Office‘ (If Jeffrey L. Coe, any cf its clients.

ur any other person _or entity.

Pram; C Smith [matttcxaggielendirtQ@9mali.com] Sent: Friday, February 14, 2014 4:55 PM To: §efi‘@cn¢lawfirm.com Subject: Fwd: Re3ease of EMC

Please see below. We thought we had this at} worked dut, but looks like we are wrong. spoka to I

Jackson Hanks and he said he will discuss with you the situation. want 19 make sure we getthis

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handled so his underwriters will issue a title gzoltcy on the cash sale.

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Ex$1lbitA Page 2 ::-f5 =~-..

Thanks. C

Begin forwarded message:

From: "Tim Wagner" <tEm.wa ner iresouroeso1ut'on.com> mate: Febmary 14, 21314 at 112821 5 PM CST To: <aggie§ending@grnaH.eom>, “mark muilin“ <markmgHin@h0§z§ .gom> i

Cc: “Joy Phiflips“ <JPhflii§s@fi awoffice.com> Subject: RE: Release of EMC

Ca§\/in & Mark, I am in raceipt the Release of EMC by your ‘Fife Compaav. innovation Resource Solution (INNOVATION) is wiiling to entertain a monetary sattiamentforour Reiease of Claim.

As you are aware, this mattnr has weighed heavy on my heart and there has been much dismssion ragarding personal beliefs and desires to be Chrisfitke both in spirit and nature‘ believe that appfies to

I

ali parties, § "also have respo nsibiéifies to our Investors. The property is both strategk: and \f1taH:c !NNO\1ATION’s agriculture plan.

With regards tn the Smith's, !NNOVA1”xDN has suffereddamages and is entitied to’ their right to purchase the is nd as per the contract or be compensated for damages.

As Mark stated; "Calvin nevershuuld have taken it this far” but thatwas Calvfws chcice. Calvin is experience and licensed in real estate transactians, agficultural lending, and shoutd be held accuuntable rather than rewarded for his actions.

Absent :1? a Settiernent, WNOVATEDM will continue to pursue its CLAIM of the property and pursue every legal remedy at its d$spesaI by all iawful means that have been previously stated by our Legal Counsei.

Res‘pe«:tful£y,

Tim Wagam Innovation Resource Soéut-ion, LLC 5300. Rigiea Place. Suite 100 Fort Worth, TX 76116

Ph: {Q72} 793-2298 e~faxt (855) 3S4—8504

This ininrmgtmrc in this message is the prapefiy of Innovation Rssossrca Suzufian. LLC. This message is am W tmandea

the use of the adcirsssea named abave and may uuniairr iagazlly privihegezzl andlu1‘ ma iniended recipient oftbis message, ybu as Ede, {S llnfc I

WW ma '

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harsh}; unified that any use’. dissrgri-r“1ri‘:aa2ir‘>1n,adxsuigrggggr pm ‘ Yi

‘T195539? 35 W551‘? 9Y‘*W>5*34~ 37 5'9‘! mcefva this message in error. pieésa nnfifswa immadiakély by rerapaffigfrif:-i”: V1315 Md 5673“ EH6 m%5'=‘3§|é..3" 609393 Kheréaf and any zthazhmants. W& thank-yen for yvaurcmapazatiun. ‘

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From: mark muliin maifto: _a ulii home‘! c Sam: Vhursday, February 13, 2014 2:59 PM Ta: tirnwagnergjrescn grcasol ution.c:<:>g3 Subject: FW: Rekzase of EMC

Tim:

In answer to your questlcn abuu: what are you being asked to do, the title company is asking that you execute this document and have it natarizeci.

Let me krmw iflcan hafp. Thanks, Mark Muifin

-m...‘..,...m

subject: Fwd: Release of EMC From: agg:’elending@gmgII.<:c>m Daie:Thu, 13 Feb 201.4 10:48:15 -0600 To; markmz.u!Iin@hatmai!.com

FYi

Begin forwarded message:

From: Rebekah Cannon <rebeka|1.<:anncm exasfirsttit1e.com> Date: February 11-!,2Q»14V at 9:01:54 AM CST To: "2ggIe1ending§gj§gmail.com“ <2 ieiendin aiI.com> Cc: Mary Amie <mapg.arie.~@texa;firsttitSe.com> subject; Release of EMC Mr. Smfith,

Here is the Release of Earnestymaney Contract. Mary asked me to forward this to you. lfyou have any questions, please let us kncw. Thank you, Rebekah Cannon Escrow Asslstani

Texas First Trtle Company, LLC 601 E. Lacy Streei Pafiastine, Tsxas 7880i §03.72’3,53‘33 — Office 903.731.4739 ~« Fax Rebekah.c:annon@tex2afirst£ii2e.com

Exhlbftfix Page 4 uf 5

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C{]bmD£m‘tALlYY NOTICE: This message is for 'rh¢=.-‘benefit of the named parsantsl only. It may contain confidential. proprietary or Iegailv pfivfieged Snfurmsation. Nb confidentiality or amen‘ priviiege tS waived cw lost by any m'xs—tra:xsmisswr>. Do not dénzctly =3: indiceczty use, dismlose. aiistributa. print or crspy any part of the message transmitter: If your are not the ‘nwtendesi recipient. if you receive this messagein ermr, please immediately daleté it and all cepies of 2! {ram ‘(cur system, deztray an hard copies and notify the sender of its receipt

Na virus found In this message. Checked by AVG - www‘avg.com Version: 2014.0.4259 I \/Ems Database: 369717088 - Reiease Date: 021*‘! 2/14

mm Page 5 c:f5

APPENDIX 5

FF FOR RECORD ALLuEf.Z__" 3'

o‘c£ock_cL.;:-..

APR 1 3 Z815

CAU SE NO 3-421

M"--_.09

JANICE STAPLES

Dlstfi<£G!etk.#oderaa:1OauIy,1X W 969»

CALVIN 3. SMITH AND CONNIE M. § IN THE THIRD JUDECIAL DESTRICT SMITH, Plaintiffs § §

VS, § COURT OF ‘.5

INNOVATION RE$0URCE § SOLUTION, LLC, Defendant § ANDERSON COUNTY, TEXAS

ORDER DISQUAUFYIRG COUNSEL

The motion to disqualify counsei of innovation Resource Solution, LLC having

been presented to the Court, and me Cour: having considered and read the papers and

pleadings filed in connection with the motion and having heard the anjguments of

counsel, the Com ‘finds that the former matter in which Jeffrey L. Coo represenied Calvin Smith is substantleliy related to the present matter in that:

1) Calvin Smith oonsulted with Jeffrey L. Coe regarding the alieged Earnest

Money Contract that is now in dispute in this matter and for which innovation Resource

Soiution, LLC now sues for breach of the contract; and

2) Jeffrey L. Coe advised Caivin Smith to file a motion to remove an invalid

fien which is now the basis of Caivln Smitrfs claim against Innovation Resource

Soiution, LLC.

IT is THEREFORE ORDERED that Jeffrey L. {Joe is disqualified from

representing Innovation Resource Sotution, LLC in this matter,

C. Smnh - Order Disquafifyfng Counsel « 5:393 1 of 2

tar *

so

Signed this 13th day of April, 2015.

APPROVED AS TO FORM: LAW OFFICES OF JAMES D. HANKINS 606 E. Crawford street Paiestine, 3'X 75801 Telephone: {$303} 729-2102

~~

Fax:

~ By: “,

~~ D. HANKINS ~~ Bar No. 08912300 ail:jdh@jameshankinslaw.com Attorney for Calvin Smith

‘ _ . 3'

~

,

‘

C. Smith -‘rordhr D1'squaEfy'?ng"CounseI