in Re Philippe E. Mulacek and Asian Gas Partners, LTD

CourtCourt of Appeals of Texas
DecidedJanuary 19, 2023
Docket09-22-00341-CV
StatusPublished

This text of in Re Philippe E. Mulacek and Asian Gas Partners, LTD (in Re Philippe E. Mulacek and Asian Gas Partners, LTD) 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
in Re Philippe E. Mulacek and Asian Gas Partners, LTD, (Tex. Ct. App. 2023).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

__________________

NO. 09-22-00341-CV __________________

IN RE PHILIPPE E. MULACEK AND ASIAN GAS PARTNERS, LTD

__________________________________________________________________

Original Proceeding 457th District Court of Montgomery County, Texas Trial Cause No. 21-08-11783 __________________________________________________________________

MEMORANDUM OPINION

In this mandamus action—which arose from a dispute over whether

the trial court was required to conduct an in camera inspection of

documents to determine whether a protective order was required to

protect certain documents from being disclosed by the real parties in

interest to those not currently parties to this suit—the relators seek to

compel the judge of the 457th District Court of Montgomery County to

conduct an in camera inspection and to issue a protective order to prevent

1 the documents subject to their motion from being disclosed to those who

are not currently parties to Trial Court Cause Number 21-08-11783. For

the reasons explained below, we conditionally grant the relators’ petition

for relief.

Background

In the trial court, Philippe E. Mulacek and Asian Gas Partners,

LTD (collectively the “Mulacek Parties”) sued James P. “Jim” Dossey,

Individually and as Executor of the Estate of Dale Dossey, and Dossey &

Jones, PLLC (the “Dossey Parties”) alleging the Dossey Parties breached

fiduciary duties they owed the Mulacek Parties and committed fraud.

The claims of fraud hinge on complaints surrounding the alleged conduct

of two lawyer/accountants employed by Dossey & Jones, PLLC, who

provided legal and accounting services to the Mulacek Parties or to

companies in which Philippe Mulacek owns or claims to own an interest.

The Mulacek Parties’ fraud and breach of fiduciary duty claims include

allegations that Dale and Jim Dossey (Phillippe Mulacek’s former

attorneys) and Dossey & Jones, PLLC, among other things: (1) concealed

conflicts of interest; (2) divulged confidential bank records and privileged

communications; (3) placed their interest and the interest of Dossey &

2 Jones, PLLC above those of the Mulacek Parties; (4) represented to the

Mulacek Parties that Jim Dossey and Dossey & Jones, PLLC would

maintain the attorney-client privilege even though they intended to

breach it; (5) failed to follow the instructions they were given by the

Mulacek Parties in transferring the Mulacek Parties’ interests in

businesses they owned as promised; and (6) improperly transferred

assets the Mulacek Parties owned to Jim Dossey under the powers Jim

Dossey exercised as the executor of Dale Dossey’s estate.

In addition to other remedies, the Mulacek Parties sought to impose

a constructive trust and to obtain an accounting for the legal services the

Dossey Parties rendered to the Mulacek Parties for the fees Dossey &

Jones, PLLC charged the Mulacek Parties for its work. In a counterclaim,

the Dossey Parties asked the trial court for declaratory relief, and they

filed a counterclaim alleging the Mulacek Parties obtained their claim

through an assignment of interest, which they procured through fraud

and their use of their undue influence over Dale Dossey while Dale was

terminally ill.

In the trial court and relying on Rule 192.6 of the Texas Rules of

Civil Procedure, the Mulacek Parties asked the judge to review

3 documents they agreed to produce to the Dossey Parties in camera before

producing them to prevent the Dossey Parties from turning the

documents over to others. The Mulacek Parties argued that although

they agreed the Dossey Parties were entitled to the documents in the case

the Mulacek Parties filed in state court, as plaintiffs, against their former

attorneys, the Dossey Parties, the needs of the case justified the need for

a protective order to prevent the documents the Mulacek Parties

intended to produce from being disclosed to others since as to those not

parties to the case the documents remained privileged.

According to the Mulacek Parties, the issues of privilege and

confidentiality center on the alleged disclosure of documents they will

under the Dossey Parties’ request produce to the Dossey Parties in the

case before the trial court subject to a protective order to prevent the

documents from being further disclosed. The trial court denied the

request. In this proceeding, the Mulacek Parties argue that should the

documents and the information in them be produced without the benefit

of an appropriate protective order, the Dossey Parties will be free to

provide their attorney-client privileged information and confidential

documents to entities or individuals who are not entitled to them,

4 including to Philippe Mulacek’s former money manager, Carlo Civelli,

who is not a party in the case filed in state court. The Mulacek Parties

contend that the Dossey Parties intend to provide the documents to

Civelli and could provide the documents to others should they be

produced in the state court case without a protective order even though

the documents they are willing to produce in state court are still subject

to their confidentiality and attorney-client privileges as to those not

parties to the state court case. 1

To protect the documents from being disclosed to those they claim

are not entitled to see them, the Mulacek Parties asked the trial court to

sign a protective order. They explained to the trial court that Mulacek

and Civelli are currently involved in a suit in federal court. They also told

the trial court they feared the Dossey Parties would give Civelli the

documents (or the information the documents contain) should the

documents be produced without an appropriate protective order in place.

The Mulacek Parties also argued the judge in the federal court case

involving the Mulacek Parties and Civelli had signed a protective order,

1The Mulacek Parties do not argue or claim that the Dossey Parties’ attorney is not entitled to see or have the documents to produced subject to a protective order in the state court case. 5 which the Mulacek Parties claimed didn’t allow Civelli to obtain the same

documents the Mulacek Parties intended to produce to the Dossey

Parties in the state court case. As to Civelli, the Mulacek Parties argued

the fact they were involved in litigation with their former attorneys did

not waive their right to protect their attorney-client privileged

documents from Civelli from being disclosed by the Dossey Parties even

if the Dossey Parties were entitled to them in the state court case since,

as to Civelli, the documents remain privileged.

The Dossey Parties filed a response to the motion for protective

order. In their response, they argued the Mulacek Parties were seeking

to protect documents Civelli had likely already seen when he served as

Philippe Mulacek’s money manager. They also claimed that Jim

Dossey—their client in the state court case, but whom they acknowledged

was Phillipe Mulacek’s lawyer before he withdrew from that

representation in May 2017—had probably already disclosed the

documents at issue to Civelli to prevent the Mulacek Parties from

engaging in fraud. According to the Dossey Parties, if the trial court were

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in Re Philippe E. Mulacek and Asian Gas Partners, LTD, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-philippe-e-mulacek-and-asian-gas-partners-ltd-texapp-2023.