Johnny E. Webb, III v. Diversegy, LLC, Diversegy Consultant Program, LLC, Lucien J. Tujague, Dominion Gas Holdings, LP, and Alex Rodriguez

CourtCourt of Appeals of Texas
DecidedMarch 13, 2019
Docket05-17-01258-CV
StatusPublished

This text of Johnny E. Webb, III v. Diversegy, LLC, Diversegy Consultant Program, LLC, Lucien J. Tujague, Dominion Gas Holdings, LP, and Alex Rodriguez (Johnny E. Webb, III v. Diversegy, LLC, Diversegy Consultant Program, LLC, Lucien J. Tujague, Dominion Gas Holdings, LP, and Alex Rodriguez) 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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Johnny E. Webb, III v. Diversegy, LLC, Diversegy Consultant Program, LLC, Lucien J. Tujague, Dominion Gas Holdings, LP, and Alex Rodriguez, (Tex. Ct. App. 2019).

Opinion

AFFIRMED; Opinion Filed March 13, 2019.

In The Court of Appeals Fifth District of Texas at Dallas No. 05-17-01258-CV

JOHNNY E. WEBB III, Appellant V. DIVERSEGY, LLC, DIVERSEGY CONSULTANT PROGRAM, LLC, LUCIEN J. TUJAGUE, AND DOMINION GAS HOLDINGS, LP, Appellees

On Appeal from the 95th District Court Dallas County, Texas Trial Court Cause No. DC-16-14649

MEMORANDUM OPINION Before Justices Bridges, Partida-Kipness, and Carlyle Opinion by Justice Carlyle

In this complex business dispute, appellant Johnny E. Webb III challenges the trial court’s

order granting appellees’1 motion to dismiss a lawsuit filed against them by Webb after related

litigation and arbitration proceedings. In four issues on appeal, Webb contends (1) the trial court

erred by dismissing this case “on the defense of collateral estoppel” and by failing to find enforcing

the forum selection clause would be improper, and (2) appellees waived their defenses of collateral

estoppel and forum selection by their actions pertaining to arbitration. We affirm the trial court’s

judgment.

1 The appellees in this case are Diversegy, LLC (“Diversegy”); Diversegy Consultant Program, LLC (“DCP”); Lucien J. Tujague Jr.; and Dominion Gas Holdings, LP (“Dominion”). I. FACTUAL AND PROCEDURAL CONTEXT

Diversegy, an “energy brokerage and advisory company,” was formed in approximately

2010. Webb was a “member” of Diversegy from its inception. In December 2013, in connection

with a pending sale of Diversegy (the “sale transaction”), a “Unit Purchase Agreement” (the

“UPA”) was executed by multiple sellers and buyers in that transaction. The UPA states in part,

Each of the Parties submits to the exclusive jurisdiction of the state or federal courts located in Essex County, New Jersey, in any action or proceeding arising out of, or relating to, this Agreement, agrees that all claims in respect of the action or proceeding may be heard and determined in any such court and agrees not to bring any action or proceeding arising out of, or relating to, this Agreement in any other court. A. The “First Lawsuit”

Following the completion of the sale of Diversegy, Webb filed an August 2014 lawsuit in

the trial court (the “First Lawsuit”) against Diversegy and several sellers and buyers in the sale

transaction, including sellers Tujague and Dominion. See Webb v. Rodriguez, No. 06-14-00102-

CV, 2015 WL 3486175 (Tex. App.—Texarkana June 3, 2015, no pet.) (mem. op.).2 Webb’s claims

in the First Lawsuit included breach of the UPA, conversion, fraud, misrepresentation, and breach

of fiduciary duty. Those claims were premised on Webb’s assertions that (1) he is “one of the

founders and sellers of Diversegy” and (2) certain other sellers concealed debts owed to Webb and

refused to pay Webb funds they received for the purchase of his shares. See id. at *1. Webb

attached a “fully executed copy” of the UPA to his petition in the First Lawsuit. Id. at *2. That

document’s “Signature Page to Unit Purchase Agreement” included a signature line for “Johnny

Webb,” on which appears a signature “which purports to be Webb’s.” Id.

The defendants in the First Lawsuit filed a motion asking the trial court to dismiss Webb’s

action based on the UPA’s forum selection clause. Id. at *1. In response, Webb asserted he “did

not authorize or agree to the [UPA] and it is therefore not enforceable against [him].” Id. The

2 The First Lawsuit was originally appealed in this Court, but the Texas Supreme Court transferred the appeal to the Sixth Court of Appeals of Texas in Texarkana pursuant to its docket equalization function. See TEX. GOV’T CODE ANN. § 73.001. –2– defendants’ reply brief in that lawsuit, filed on the day of the dismissal hearing, attached “the

affidavits of three witnesses who stated that they saw Webb sign the [UPA]” (the “Rodriguez

affidavits”). Id. at *2. After the hearing, at which Webb “claimed that he did not sign the [UPA],”

the trial court signed an order dismissing Webb’s lawsuit without prejudice to its refiling in Essex

County, New Jersey. Id.

Some two weeks later, Webb filed a motion for reconsideration, to which he attached his

own affidavit stating that he did not sign the UPA, did not authorize his signature on the UPA, and

did not attend a signing party. Id. at *4 n.5. He also attached the affidavit of another person who

allegedly participated in the signing party, and the affidavit of a purported handwriting expert who

questioned the authenticity of Webb’s signature on the UPA. Id. Those affidavits were discussed

and called to the trial court’s attention at the hearing on Webb’s motion for reconsideration. Id.

The trial court denied the motion for reconsideration.

Webb appealed. He contended in part (1) “in the absence of proof that Webb signed the

[UPA], there is no showing that Webb entered into an agreement to an exclusive forum,” and

(2) “the trial court erred in relying on the Rodriguez affidavits without first providing [Webb] an

opportunity to respond with his own affidavit.” Id. at *2–3. The Sixth Court of Appeals affirmed

the trial court’s dismissal order “because (1) the forum selection clause is enforceable against

Webb [and] (2) Webb’s complaint regarding the Rodriguez affidavits is not preserved for

[appellate] review.” Id. at *1. Specifically, (1) Webb “affirmatively stated that he was a seller

under the [UPA]” and “attached an executed copy of the [UPA] to his Original Petition, as well as

an affidavit verifying that the allegations and information in his lawsuit were true and correct”;

(2) “Webb cannot assert that [defendants are] liable to him for damages flowing from a breach of

the [UPA] while simultaneously claiming that the forum selection clause does not apply to those

claims”; and (3) in the trial court, the Rodriguez affidavits “were discussed variously throughout

–3– the hearing,” the defendants “plainly relied on the affidavit evidence,” and “Webb never objected

to the filing of the affidavits on the date of the hearing and did not request a continuance for the

purpose of filing a counter-affidavit.” Id. at *2–4. Webb did not file a petition for review in the

supreme court challenging the judgment of the Sixth Court of Appeals, nor does the record show

he filed any lawsuit in New Jersey.

B. The Arbitration Action

In November 2015, sellers Nicholas Gallagher and Dominion initiated an arbitration action

in Dallas against the buyers in the sale transaction (the “buyers”). That arbitration action pertained

to certain “contingent payments” allegedly required under the UPA. The UPA required arbitration

to take place in Dallas, Texas.

The buyers filed an answering statement asserting “counterclaims” against Dominion and

several additional sellers, including Webb and Tujague. Webb then filed an answering statement

and “cross/counterclaims”3 in that arbitration action. In his answering statement, Webb “object[ed]

to jurisdiction of this arbitration” on the basis that he “was not a true party to the UPA because his

name was forged on the document and he was without knowledge of the UPA or its terms” and he

“therefore is not subject to the UPA or its terms and his claims are within the jurisdiction of federal

and/or state district court, not arbitration.” Webb requested the arbitrator to “exercise his/her power

to rule upon the issue of jurisdiction as a preliminary matter expediently.”

The arbitrator held a September 13, 2016 hearing on “the issue of this Arbitrator’s

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Johnny E. Webb, III v. Diversegy, LLC, Diversegy Consultant Program, LLC, Lucien J. Tujague, Dominion Gas Holdings, LP, and Alex Rodriguez, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnny-e-webb-iii-v-diversegy-llc-diversegy-consultant-program-llc-texapp-2019.