Latham v. Castillo

972 S.W.2d 66, 1998 WL 327702
CourtTexas Supreme Court
DecidedAugust 25, 1998
Docket96-0986
StatusPublished
Cited by239 cases

This text of 972 S.W.2d 66 (Latham v. Castillo) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Latham v. Castillo, 972 S.W.2d 66, 1998 WL 327702 (Tex. 1998).

Opinions

SPECTOR, Justice,

delivered the opinion of the Court,

in which PHILLIPS, Chief Justice, Baker, Abbott and Hankmson, Justices, join.

In this case, we consider whether an attorney’s affirmative misrepresentations to his clients that cause the clients to lose their day in court can constitute unconscionable action under the Deceptive Trade Practices-Consumer Protection Act. The court of appeals answered in the affirmative. We affirm the court of appeals’ remand of the DTPA claim, and we reverse and render judgment that the Castillos take nothing on their remaining claims.

I.

On January 3, 1986, Audona Castillo prematurely gave birth to twin daughters, Kay and Sara, at Taft Hospital. Born with birth defects, the girls were immediately transferred to Driscoll Foundation Children’s Hospital where both underwent surgery. Sara died approximately one week later. The Castillos then filed a medical malpractice suit against Driscoll Hospital on Sara’s behalf and received a $6,000,000 default judgment. Later, their attorney, Rene Rodriguez, settled the case for $70,000.

Kay Castillo, the surviving twin, died on February 14, 1988. In December 1989, the Castillos hired B. Mills Latham to file a legal malpractice claim against Rodriguez for settling the default judgment and to pursue a medical malpractice claim against Driscoll Hospital for Kay’s death. While Latham settled the legal malpractice claim against Rodriguez for $400,000, the statute of limitations ran on the Castillos’ medical malpractice claim on February 14, 1990 without suit being filed. The Castillos then sued Latham for legal malpractice because Latham failed to file the medical malpractice action for Kay’s death within the two-year statute of limitations. The Castillos also sued Latham for unconscionable action under the DTPA because Latham affirmatively represented to them that he had filed and was actively prosecuting the medical malpractice claim. Finally, the Castillos alleged that Latham wrongfully misrepresented himself, breached the contract of employment, and was negligent.

After the Castillos presented their case to a jury, the trial court granted a directed verdict for Latham that the Castillos take nothing. The court of appeals reversed and remanded, holding that the Castillos had presented some evidence to prevent a directed verdict on their DTPA claim. The court of appeals also remanded the “remaining theories of recovery” — fraudulent misrepresentation and breach of contract — without discussion. The court of appeals affirmed the directed verdict on the negligence claim, however, because the Castillos did not present evidence that but for Latham’s negli[68]*68gence, the medical malpractice suit would have been successful.1.

The central question before us is whether the Castillos have presented some evidence to support each element of their DTPA cause of action. We hold that they have done so.

II.

The trial court granted a directed verdict against the Castillos on all claims. Accordingly, we must view the evidence in the light most favorable to them and indulge every reasonable inference in their favor. Harbin v. Seale, 461 S.W.2d 591, 592 (Tex.1970). If reasonable minds could differ on controlling facts, the trial court errs in refusing to submit the issues to the jury. Collora v. Navarro, 574 S.W.2d 65, 68 (Tex.1978). We consider the DTPA claim first.2

A.

The Castillos alleged Latham’s conduct constituted an “unconscionable action or course of action” that violated the DTPA. Tex. Bus. & Com.Code § 17.50(a)(3). Under section 17.45, “unconscionable action or course of action” means “an act or practice which, to a person’s detriment: (A) takes advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree; or (B) results in a gross disparity between the value received and consideration paid, in a transaction involving transfer of consideration.” Id. § 17.45(5). The Castillos have relied only on subsection (A) in asserting that Latham’s actions were unconscionable. To be actionable under subsection (A), the resulting unfairness must be “glaringly noticeable, flagrant, complete and unmitigated.” Chastain v. Koonce, 700 S.W.2d 579, 584 (Tex.1985).

The Legislature’s stated public policy in enacting the DTPA is to “protect consumers against false, misleading, and deceptive business practices [and] unconscionable actions.” Tex. Bus. & Com.Code § 17.44. To achieve that goal, the Legislature has mandated that the Act shall be “liberally construed and applied.” Id. Therefore, we must view La-tham’s actions with this legislative directive in mind.

Attorneys can be found to have engaged in unconscionable conduct by the way they represent their clients. See, e.g., DeBakey v. Staggs, 605 S.W.2d 631, 633 (Tex.Civ. App.—Houston [1st Dist.] 1980), writ ref'd n.r.e. per curiam, 612 S.W.2d 924 (Tex.1981) (finding an attorney unconscionably took advantage of a client to a grossly unfair degree when the attorney knowingly failed to obtain in a timely manner a name change for the client’s minor child). The Castillos assert that Latham acted unconscionably in representing that he was actively prosecuting then-medical malpractice claim for Kay’s death when in fact he was not.

The Castillos depended on Latham to file suit against the hospital for Kay’s death. As Mrs. Castillo testified, “You trust in a professional because they know more than you.” The record reveals, and Latham’s attorney conceded at oral argument before this Court, that there is some evidence that La-tham told the Castillos he had filed the medical malpractice claim when in fact he had not. Although he affirmatively represented to them that he was actively pursuing the claim, Latham never did file the suit and limitations ran. As a result, the Castillos lost the opportunity to prosecute their claim against the hospital for Kay’s death.

[69]*69Viewing Latham’s actions in the light we must, his actions are similar to the attorney’s conduct in DeBakey. Latham took advantage of the trust the Castillos placed in him as an attorney. Therefore, the Castillos have presented some evidence that they were taken advantage of to a grossly unfair degree.

Latham argues, however, that the Castil-los’ DTPA claim is essentially a dressed-up legal malpractice claim. Therefore, he asserts, the Castillos must prove that they would have won the medical malpractice ease for Kay’s death in order to recover. Because they did not present any evidence on this, Latham argues, the Castillos cannot recover. We disagree.

The legislative intent in enacting the DTPA was to provide plaintiffs a remedy where the common law fails. See Woo v. Great Southwestern Acceptance Corp., 565 S.W.2d 290, 298 (Tex.Civ.App.—Waco 1978, writ ref'd n.r.e.). Section 17.43 states that the remedies provided by the Act “are in addition to any other procedures or remedies provided for in any other law.” Tex. Bus. & Com.Code § 17.43 (emphasis added).

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Bluebook (online)
972 S.W.2d 66, 1998 WL 327702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/latham-v-castillo-tex-1998.