Johns v. Francis

CourtDistrict Court, E.D. Louisiana
DecidedMarch 10, 2025
Docket2:24-cv-01064
StatusUnknown

This text of Johns v. Francis (Johns v. Francis) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johns v. Francis, (E.D. La. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

JEREMIAH JOHNS CIVIL ACTION

VERSUS NO: 24-1064

DONOVAN FRANCIS, et al. SECTION: “G”

ORDER AND REASONS Before the Court is Defendants’ Donovan Francis, Tony Hernandez, and The Johns Law Firm, LLC’s (collectively “Defendants”) Motion to Dismiss for Failure to State a Claim.1 Defendants contend this case should be dismissed because (1) under the first-to-file rule, this case mirrors earlier-filed lawsuits; and (2) the Complaint fails to state a valid cause of action under Federal Rule of Civil Procedure 12(b)(6).2 In opposition, Plaintiff argues the first-to-file rule does not apply to state court proceedings.3 For the reasons stated herein, Defendants have not carried their burden of establishing that the first-to-file rule applies here. Accordingly, considering the motion, the opposition, the record, and the applicable law, the Court denies the motion without prejudice and grants Defendants leave to file an appropriate motion addressing the potential applicability of any abstention doctrine, claim preclusion, and/or issue preclusion.4

1 Rec. Doc. 9. 2 Rec. Doc. 9-1 at 2.

3 Rec. Doc. 15.

4 While claim or issue preclusion have not been raised here, courts may raise claim preclusion or issue preclusion sua sponte. R J Reynolds Tobacco Co. v. Food & Drug Admin., 96 F.4th 863, 875 (5th Cir. 2024). Additionally, “abstention may be raised by the court sua sponte.” See Murphy v. Uncle Ben's, Inc., 168 F.3d 734, 737 I. Background On or about August 16, 2017, Plaintiff Jeremiah Johns registered The Law Office of J. Nathan Johns, LLC with the Louisiana Secretary of State.5 The entity’s name was subsequently changed to The Johns Law Firm, LLC.6 Thereafter, Defendants Donovan Francis and Tony Hernandez became managing partners at The Johns Law Firm, LLC.7 The Complaint provides that on August 16, 2017, Plaintiff, Donovan Francis (“Francis”), and Tony Hernandez (“Hernandez”) entered into an operating agreement.8 On December 13, 2017, The Johns Law Firm applied for a loan stating that Plaintiff was 70% owner.9 The loan application was signed by Plaintiff and Hernandez and authorized by Francis.10 The Complaint provides that operations between the three members later broke down after Plaintiff learned that Hernandez was allegedly operating an

undisclosed out-of-state company.11 The Complaint alleges that Hernandez deposited fees he generated into an undisclosed business bank account.12 On October 29, 2020, Francis and Hernandez registered a new law partnership and Louisiana limited liability company called Brogan Francis Hernandez, LLC, comprised of Francis,

5 Rec. Doc. 1 at 2. 6 Id. 7 Id. 8 Id. 9 Id. 10 Id. 11 Id. 12 Id. Hernandez, and Blair Brogan.13 The Complaint alleges that, on the following day, Francis and

Hernandez withdrew $108,000.00 from The Johns Law Firm’s bank account, removed Plaintiff as a firm manager, and removed Plaintiff’s access to The Johns Law Firm’s communications devices.14 Thereafter, the Complaint alleges that Francis and Hernandez threatened to file a bar complaint against Plaintiff if he emailed clients, directed letters to clients untruthfully stating that Plaintiff withheld settlement offers, hacked Plaintiff’s personal accounts and destroyed data, and alleged they possessed nude photographs of Plaintiff’s wife.15 On or about November 30, 2020, Plaintiff withdrew from The Johns Law Firm.16 Plaintiff demanded that Francis and Hernandez immediately cease using his name in connection with The Johns Law Firm, and Plaintiff demanded a refund of his membership interest and capital

contributions.17 The Complaint alleges, to date, Defendants have refused to return any portion of Plaintiff’s capital contributions or membership interest.18 The Complaint alleges that Defendants continue to use Plaintiff’s name extensively on their law firm’s website despite Plaintiff’s demands that Defendants cease using his name.19 After Plaintiff withdrew from The Johns Law Firm, several clients, including Angela

13 Id. at 3. 14 Id. 15 Id. 16 Id. 17 Id. 18 Id. 19 Id. at 3–4. Pawlik, transferred representation to Plaintiff’s new law firm, Johns Law Firm, PLLC.20 Ms.

Pawlik had a life insurance dispute pending in the U.S. District Court for the Southern District of Texas.21 The Complaint states that Plaintiff represented Ms. Pawlik and resolved her case approximately ten months after Plaintiff withdrew from The Johns Law Firm.22 Ms. Pawlik received a settlement award in the amount of $850,000, and Defendants attempted to intervene to assert an attorneys’ fee claim, which was denied as untimely.23 Thereafter, Defendants filed a lawsuit against Ms. Pawlik in the United States District Court for the Southern District of Texas seeking to recover a 40% contingency fee from the proceeds of her settlement.24 Defendants prevailed and obtained a judgment against Ms. Pawlik for $340,000 in contingency fees.25 The judgment was appealed with the United States Court of Appeals for the Fifth Circuit,26 and was

later affirmed.27 The Complaint states that The Johns Law Firm, LLC is no longer a business in good standing in the State of Louisiana.28 Francis and Hernandez also ended their law partnership

20 Id. at 4. 21 Id. 22 Id. 23 Id. 24 Id. at 5. 25 Id. 26 Id. 27 Case No. 24-20147.

28 Id. through Brogan Francis Hernandez, LLC.29

On or about October 30, 2020, Plaintiff states that he accessed the operating agreement between Plaintiff, Francis, and Hernandez, which was signed by all parties on August 17, 2017.30 The Complaint states that the operating agreement contained an unsigned page stating that Plaintiff had a 39.5% equity interest in The Johns Law Firm, even though another document stated Plaintiff had a 70% interest in the firm.31 The Complaint alleges there were discrepancies in the operating agreement such as the date the document was created, alleged alterations to the document, and missing signatures throughout the document.32 Plaintiff disagrees with the equity allocations in the saved operating agreement.33 Plaintiff alleges that Francis and Hernandez have refused to produce Plaintiff’s personal

effects, including the original copy of the operating agreement.34 According to the Operating Agreement, Plaintiff, Hernandez, and Francis were required to make cash contributions of $5,000, $5,000, and $1,000, respectively.35 Plaintiff contends that he satisfied his capital contribution obligation, but Plaintiff alleges that Francis and Hernandez have not.36 Plaintiff states that he has made additional capital contributions during the course of The Johns Law Firm’s operations,

29 Id. 30 Id. 31 Id. at 7. 32 Id. 33 Id. 34 Id. 35 Id. at 8. 36 Id. implicating potential adjustments of Plaintiff’s equity stake.37 The Complaint alleges that prior to

Plaintiff’s withdrawal from The Johns Law Firm, Francis and Hernandez took income distributions which exceeded Plaintiff’s distributions.38 On April 26, 2024, Plaintiff filed a Complaint in this Court asserting the following causes of action: (1) declaratory judgment regarding Plaintiff’s equity in The Johns Law Firm, and an order dividing the $340,000 settlement proceeds to an account for Plaintiff’s income distributions, Plaintiff’s capital account, and damages; (2) breach of contract; (3) bad faith breach of contract; (4) unjust enrichment/quantum meruit; (5) equitable estoppel/detrimental reliance; (6) unfair trade practice act; and (7) interpleader.39

II. Parties’ Arguments A.

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Johns v. Francis, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johns-v-francis-laed-2025.