Kenneth Nnaka v. Blanca Mejia (Individually and A/N/f, Minor Child

Court of Appeals of Texas·Decided January 28, 2020·No. 01-18-00779-CV·Published

Opinion

Opinion issued January 28, 2020

In The

Court of Appeals

For The

First District of Texas

sanctions because Nnaka did not engage in any sanctionable conduct. Nnaka also attempts to appeal from the trial court’s final judgment, rendered prior to the sanctions order, to challenge the trial court’s resolution of Nnaka’s claim for attorney’s fees in connection with Mejia’s personal injury case and his separate claims against appellee Hallmark County Insurance Co., the insurance company that insured the defendant in Mejia’s personal injury case.

Because we conclude that he failed to file a notice of appeal from the final judgment, Nnaka never invoked this Court’s jurisdiction over that judgment and we cannot consider those complaints on appeal. We further conclude that the trial court did not abuse its discretion in imposing sanctions against Nnaka. Accordingly, we affirm the trial court’s sanctions order.

Background

Mejia and her minor child were injured in a crash between their vehicle and a tractor trailer driven by Kenneth Washington and insured by Hallmark County Mutual Insurance Co.

Mejia retained Nnaka to represent her with regard to the crash, and she signed a contingency fee agreement for 33.3% of any eventual damages recovered. Mejia testified before the trial court that she attempted on numerous occasions to meet or speak with Nnaka, but she was unable to do so. She obtained a copy of the police report and reported the claim to Hallmark herself. She also attempted to

obtain medical treatment for back injuries sustained in the crash, but the medical providers refused to treat her without authorization from Nnaka or his firm. Mejia requested the treatment authorizations, but she never received them.

Mejia then terminated her relationship with Nnaka and retained Jeffrey Stern from the Stern Law Group. She entered into another contingency fee agreement for 40% of any eventual recovery with Stern. Stern filed the lawsuit against Washington, conducted discovery and otherwise litigated the case, paid some medical costs for Mejia to receive treatment while the suit was pending, and ultimately obtained a settlement in favor of Mejia and her minor child that was paid by Hallmark.

Following the settlement of Mejia’s personal injury claims, Nnaka sought a portion of the attorney’s fees from Stern. Stern intervened in Mejia’s personal injury case and named Nnaka as a party. Stern sought a declaratory judgment to resolve Nnaka’s claim to a portion of the attorney’s fees. Stern asserted that Mejia had terminated Nnaka for cause and that Nnaka had not provided any significant legal services during the six to eight weeks that he was Mejia’s attorney.

Nnaka & Associates, PLLC, answered Stern’s petition in intervention with a general denial, stating that the firm was “incorrectly named as ‘Kenneth Aghadi Nnaka.’” Nnaka & Associates also filed a separate suit in a different district court against Hallmark asserting causes of action for tortious interference with contract,

fraud, and quantum meruit in connection with Hallmark’s paying the settlement to Stern on Mejia’s behalf.

Hallmark filed an unopposed motion to consolidate Nnaka & Associate’s separate claims against it with Mejia’s personal injury suit, which the trial court granted. The parties waived a jury trial and stipulated that the trial court could resolve all the issues necessary to render final judgment on the settlement agreement, the related dispute over the attorney’s fees, and Nnaka’s separate claims against Hallmark based on a hearing held on July 12, 2018. At this hearing, both Mejia and Nnaka testified and the parties presented documents and other evidence to the trial court.

The evidence showed that Mejia first contacted Nnaka’s office on or around June 21, 2016, a few days after the accident. Mejia testified about the services Nnaka performed on her behalf—testifying that she had been unable to meet with him, had called on several occasion and had been told that he was out of the country, and had been unable to receive medical treatment due to his office’s failure to provide proper documentation to her providers. Mejia testified that she had obtained the police report herself and had reported the crash to Hallmark herself before she terminated Nnaka’s representation on August 24, 2016, and retained Stern. Nnaka testified that he had provided services to Mejia, including dealing with medical care providers, obtaining medical records, and drafting

pleadings. He provided a billing statement reflecting 54.5 hours of attorney work and 42 hours of paralegal work, including multiple contacts and meetings with or on behalf of Mejia, for a total of $29,462.50 in fees.

At the end of the July 12, 2018 hearing, the trial court made an oral pronouncement finding that Mejia had terminated Nnaka for cause and that the value of his legal services to her was $0. The trial court further pronounced that the evidence taken at the hearing had finally resolved all other pending claims, which included Nnaka’s separate claims against Hallmark. The trial court indicated that it would incorporate these pronouncements into a final judgment as soon as the settlement with regard to the minor child could be finalized and approved.

Following this hearing, on July 16, 2018, based on its consideration of “Kenneth Nnaka’s sworn testimony and his ‘Statement for Professional Services Rendered [to Mejia]’ introduced into evidence in this case,” the trial court ordered Nnaka “together with his paralegal, Jessica Mandujano,” to “appear and show cause why he should not be sanctioned by the Court, or held in contempt of court.” The trial court further ordered Nnaka “to bring his entire ‘Mejia’ client file to the hearing, including any time records, time entries, billing records, and all other documents related to this case.”

On July 19, 2018, the trial court held a hearing on the issue of sanctions.

Both Nnaka and his paralegal Mandujano appeared and testified under oath

regarding the legal services rendered to Mejia and the billing statement that was filed with the court. Nnaka’s entire file and the billing statement itself was admitted into evidence at the hearing. The trial court reminded the parties on the record that all of the other issues in the case had been resolved at the July 12, 2018 hearing. The trial court further expressed concern regarding the nature of Nnaka’s billing practices and stated that it had not yet decided whether to sanction Nnaka, report him to the State Bar, or both.

On July 20, 2018, the trial court rendered a final judgment approving the final settlement of Mejia’s and W.A.’s personal injury claims. The trial court further found that Mejia had terminated Nnaka’s representation for cause and that the value of Nnaka’s legal services to Mejia was $0. The trial court rendered a take-nothing judgment on Nnaka’s additional claims against Hallmark.

On July 24, 2018, the trial court signed its order imposing sanctions on Nnaka. The order set out the background of the case, including the fee dispute between Nnaka and Stern and Nnaka’s separate claims against Hallmark, and it expressly referenced the court’s final judgment that Nnaka take nothing on his affirmative claims for relief, the findings that Mejia had terminated her fee agreement with Nnaka for “good and just cause” and that the value of the reasonable and necessary attorney’s services Nnaka had performed on Mejia’s behalf “was $0.00.” The order then made findings of fact relevant to the sanctions

hearing that had been held on July 19, 2018. The trial court further found that “it is appropriate to assess sanctions against Kenneth Nnaka for his knowing violations of the Rules of Civil Procedure and for his interference with the Court’s orderly and expeditious administration of justice.” The trial court ordered Nnaka to

1. personally attend a continuing legal-education course (CLE) of at least 4.0 hours of ethics that addresses ethics in billing practices;

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Kenneth Nnaka v. Blanca Mejia (Individually and A/N/f, Minor Child, (Tex. Ct. App. 2020).

Kenneth Nnaka v. Blanca Mejia (Individually and A/N/f, Minor Child (Kenneth Nnaka v. Blanca Mejia (Individually and A/N/f, Minor Child) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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