Jason Murray Davis and Davis & Santos, P.C. v. Graham Weston, Carowest Land Ltd.; Graham Weston as Trustee of Countyline Land Trust; And Kuehler Road, LLC F/K/A Kuehler Road, Ltd.

CourtCourt of Appeals of Texas
DecidedDecember 6, 2024
Docket03-22-00378-CV
StatusPublished

This text of Jason Murray Davis and Davis & Santos, P.C. v. Graham Weston, Carowest Land Ltd.; Graham Weston as Trustee of Countyline Land Trust; And Kuehler Road, LLC F/K/A Kuehler Road, Ltd. (Jason Murray Davis and Davis & Santos, P.C. v. Graham Weston, Carowest Land Ltd.; Graham Weston as Trustee of Countyline Land Trust; And Kuehler Road, LLC F/K/A Kuehler Road, 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.

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Jason Murray Davis and Davis & Santos, P.C. v. Graham Weston, Carowest Land Ltd.; Graham Weston as Trustee of Countyline Land Trust; And Kuehler Road, LLC F/K/A Kuehler Road, Ltd., (Tex. Ct. App. 2024).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-22-00378-CV

Jason Murray Davis and Davis & Santos, P.C., Appellants

v.

Graham Weston, Carowest Land Ltd.; Graham Weston as Trustee of Countyline Land Trust; and Kuehler Road, LLC f/k/a Kuehler Road, Ltd., Appellees

FROM THE 207TH DISTRICT COURT OF COMAL COUNTY NO. C2021-1179B, THE HONORABLE STEPHANIE BASCON, JUDGE PRESIDING

MEMORANDUM OPINION

This case arises out of a suit brought by Graham Weston; Carowest Land Ltd.;

Graham Weston as Trustee of Countyline Land Trust; and Kuehler Road, L.L.C. (collectively, the

Graham Parties) against their former attorney and law firm Jason Murray Davis and Davis

& Santos, P.C. (collectively, Davis) for claims of breach-of-fiduciary-duty and fraud by

non-disclosure. Davis appeals from the district court’s denial of his motion to dismiss pursuant to

the Texas Citizens Participation Act (TCPA). See Tex. Civ. Prac. & Rem. Code §§ 27.001–.011.

We affirm.

1 BACKGROUND 1

The underlying suit arises from a contentious divorce proceeding between Graham

Weston and Elizabeth Weston. Graham and Elizabeth were married in 1994. During the marriage,

Graham amassed a net worth of at least $1 billion as a co-founder of Rackspace Technology, Inc.

Elizabeth supported the family by remaining at home and homeschooling their three sons.

Throughout their marriage, Graham and Elizabeth managed three of the family’s companies:

Carowest Land Ltd.; Kuehler Road, Ltd.; and Countyline Land Trust (collectively, Real Estate

Entities). Graham and Elizabeth hired Davis to represent the Real Estate Entities in various

lawsuits throughout the years, starting around 2009. Davis also represented Graham in litigation

involving Rackspace and advised him on other non-litigation matters related to Rackspace.

Davis’s involvement in representing the Real Estate Entities

In 2009, the Westons hired Davis to represent Carowest Land Ltd. (Carowest) in

litigation with the City of New Braunfels for several claims including alleged violations of the

Texas Open Meetings Act. 2 At least one piece of correspondence from that litigation reflects

Davis’s statement that he represented “Carowest Land Company Ltd. and the Weston Family in

matters related to the City of New Braunfels’ South Tributary Project (the “Project”).” The petition

in the Carowest litigation described Carowest as being “a limited partnership affiliated with the

Weston family.” In addition, in 2013, Davis represented Countyline and Kuehler Road in litigation

1 The background facts arise from the pleadings and affidavits, which we view in the light most favorable to the nonmovant. See O’Rourke v. Warren, 673 S.W.3d 671, 680 (Tex. App.— Austin 2023, pet. denied). 2 See City of New Braunfels v. Carowest Land, Ltd., 432 S.W.3d 501 (Tex. App.—Austin 2014, no pet.); City of New Braunfels v. Carowest Land, Ltd., 549 S.W.3d 163 (Tex. App.—Austin 2017), order withdrawn (June 19, 2020), review granted, judgment vacated, 615 S.W.3d 156 (Tex. 2020).

2 relating to alleged property damage and encumbrances. Both Carowest’s and Kuehler’s general

partner is an entity called Chupacabra, of which Graham is the manager. As part of this role,

Graham selected the attorney to represent those entities and was in charge of paying legal fees for

those entities out of those entities’ funds. Graham let Elizabeth be the day-to-day contact with

Davis regarding the litigation but he was also heavily involved in the decision-making process.

As Graham was the sole member of the entities, he had the authority to terminate Davis’s

representation at any time.

Davis’s history representing Graham and Elizabeth individually

In addition to representing the Real Estate Entities, Graham represented each of the

Westons individually in separate matters throughout the years. In 2012, Graham hired Davis to

represent him individually in a suit brought against Graham and Rackspace. The litigation

concerned an executive-level employee who sought equity in the company. Davis successfully

obtained summary judgment on behalf of Graham. In the years following the matter, either in

2013 or 2014, Graham and Davis had a brief conversation about the Rackspace litigation, but

neither party has been able to recall the substance of such conversation.

In 2015, Davis represented Elizabeth in federal bankruptcy court in a dispute

involving her and her company Equis Equine, LLC related to a fraudulent horse auction. Graham

was not a party to the action or otherwise involved. However, during that suit Davis contemplated

adding a DTPA (Deceptive Trade Practice Act) claim; in order for Elizabeth to qualify as a

“consumer” under the statute, her net worth could not exceed $25 million. To determine her net

worth, Davis was required to access Graham and Elizabeth’s personal information regarding

family trusts. Davis met with the Weston family accountant and tax lawyer to gather information

3 regarding the Weston family finances. The end of the suit resulted in a $1.5 million judgment in

favor of Equis Equine, LLC.

Representation of the Westons’ son

In 2020, Elizabeth and Graham’s adult son had a mental health crisis that led to

criminal charges and involuntary commitment to a mental health facility. Davis, Elizabeth, and

Graham communicated closely regarding the son’s treatment options. Davis dealt directly with

the mental health facility and even recommended his brother-in-law be the son’s treating

psychiatrist. In a series of texts, Graham enlisted Davis to convince Elizabeth that their son needed

mental health treatment, stating: “[I’m] not asking for you to be loyal to me over [Elizabeth]. I

just need your help—using your own judgment.” In the same text exchange, Graham thanked

Davis for his “commitment to service [the Weston family] for so many years.” At the hearing on

Graham’s motion to disqualify Davis that Graham filed during the divorce proceedings, Graham

testified that disagreements over the son’s care were part of his motivation for the divorce. In

addition, after the underlying suit was filed in 2021, Graham disclosed that he had designated

Davis as potential co-guardian of the Westons’ children in a handwritten codicil to Graham’s will

in 2009.

Divorce proceedings

In mid-2019, Elizabeth began confiding in Davis regarding issues in her marriage.

She told Davis that Graham was unfaithful and that he had been sexually, physically, and

emotionally abusive towards her. Elizabeth, at Davis’s direction, began recording documentary

evidence of the abuse including text messages from Graham and photos of her injuries from the

alleged physical abuse. Elizabeth also shared the allegations with a former FBI agent. Despite

preserving evidence, Elizabeth decided against reporting Graham for fear of potential retaliation.

4 In October 2020, Graham retained attorney Richard Orsinger and filed divorce proceedings against

Elizabeth. Two days later, Graham non-suited the petition. Elizabeth then filed her divorce

petition on October 26, 2020, in Comal County. Graham and his lawyers immediately moved to

disqualify Davis and his firm from representing Elizabeth in the divorce, contending that Davis

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Jason Murray Davis and Davis & Santos, P.C. v. Graham Weston, Carowest Land Ltd.; Graham Weston as Trustee of Countyline Land Trust; And Kuehler Road, LLC F/K/A Kuehler Road, Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jason-murray-davis-and-davis-santos-pc-v-graham-weston-carowest-land-texapp-2024.