Lawrence Madeksho, Roy and Mary Malone, Thomas Gillespie, and Patricia Garefalos v. Abraham, Watkins, Nichols & Friend, Robert Ballard and the Law Office of Robert E. Ballard, P.C.

CourtCourt of Appeals of Texas
DecidedJuly 10, 2003
Docket14-01-00453-CV
StatusPublished

This text of Lawrence Madeksho, Roy and Mary Malone, Thomas Gillespie, and Patricia Garefalos v. Abraham, Watkins, Nichols & Friend, Robert Ballard and the Law Office of Robert E. Ballard, P.C. (Lawrence Madeksho, Roy and Mary Malone, Thomas Gillespie, and Patricia Garefalos v. Abraham, Watkins, Nichols & Friend, Robert Ballard and the Law Office of Robert E. Ballard, P.C.) 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.

Bluebook
Lawrence Madeksho, Roy and Mary Malone, Thomas Gillespie, and Patricia Garefalos v. Abraham, Watkins, Nichols & Friend, Robert Ballard and the Law Office of Robert E. Ballard, P.C., (Tex. Ct. App. 2003).

Opinion

Affirmed and Opinion filed _____________, 2002

Rehearing En Banc Granted; Opinion of September 19, 2002 Vacated; Affirmed in Part and Reversed and Remanded in Part; En Banc Plurality and Dissenting Opinions on Rehearing filed July 10, 2003.                                                           

In The

Fourteenth Court of Appeals

____________

NO. 14-01-00453-CV 

LAWRENCE MADEKSHO, ROY AND MARY MALONE, THOMAS GILLESPIE, AND PATRICIA GAREFALOS, Appellants

V.

ABRAHAM, WATKINS, NICHOLS & FRIEND, ROBERT BALLARD AND THE LAW OFFICE OF ROBERT E. BALLARD, P.C., Appellees


On Appeal from the 239th District Court

                                                         Brazoria County, Texas                    

Trial Court Cause No. 88G0614-2


E N   B A N C   P L U R A L I T Y   O P I N I O N   O N   R E H E A R I N G

          This case is part of the debris from a falling­-out between attorneys who worked together on asbestos cases for almost twenty years.  Generally, attorney Lawrence Madeksho signed up the clients and did the pretrial work, while Robert Ballard and the law firm of Abraham, Watkins, Nichols & Friend (“the law firm”) did most of the trial work.  They orally agreed to split any contingency fees earned.

            Four of their clients (Roy Malone, Mary Malone, Thomas Gillespie, and Patricia Garefalos) sued Owens-Corning Fiberglas Corporation in 1988.  The clients signed a contract with Madeksho providing for a 40% contingency fee, increasing to 45% if an appeal was filed.  The clients won a $4.5 million verdict at trial, which grew to more than $10 million by the time the judgment became final.  The First Court of Appeals affirmed.[1]

            While the case was pending in the Texas Supreme Court, a separate dispute arose between Madeksho and the law firm.  When the law firm decided to withdraw from future asbestos litigation, Madeksho stopped payment on the firm’s share of fees from past litigation, including a $1 million fee from a settlement with Fibreboard Corporation.  At the end of that dispute, we affirmed summary judgment against Madeksho enforcing the law firm’s oral fee-splitting agreement.[2] 

            After these developments, the clients wrote a letter with Madeksho’s assistance (the law firm claims it was at his instigation) asserting a conflict of interest, firing the law firm in the Owens-Corning appeal, and instructing the firm not to contact them.

            The Supreme Court affirmed the clients’ judgment against Owens-Corning on June 5, 1998.[3]  Within a week, counsel for the law firm wrote Owens-Corning claiming a portion of the judgment, and requesting that any payment include the firm’s name, or be made by interpleader in the trial court.  Soon thereafter, Madeksho notified Owens-Corning the entire judgment should be paid to the clients, and nothing should be paid to the law firm. 

            Having received these conflicting claims, Owens-Corning filed an interpleader in the underlying case in the trial court three days after the Supreme Court’s mandate issued.  At a hearing seventeen days after the mandate issued, all parties agreed the clients were entitled to 55% of the final judgment, which was paid directly to them.  The trial court ordered the remainder paid into the court’s registry pending resolution of the fee dispute.  Everyone signed releases in favor of Owens-Corning, which was dismissed with prejudice.  A month later, an agreed order authorized payment from the registry of about $1 million to the appellate attorneys who handled the successful appeals. 

            The law firm filed a cross-claim against Madeksho for breach of contract and quantum meruit, seeking 50% of the amount remaining in the registry plus consequent attorney’s fees and costs.  Madeksho filed a plea to the jurisdiction challenging the trial court’s power to decide the matter, and cross-claimed against the law firm asserting breach of contract, breach of fiduciary duty, and fee forfeiture.  The clients filed a response to the interpleader, a motion to dismiss, and a motion to enforce the mandate requesting that all funds be paid to them.

            On its own motion, the trial court severed all claims filed after the original interpleader, and set a trial for January 30, 2001, on the sole issue of allocating the funds in the registry between the attorneys.  The day before trial, Madeksho sought a writ of prohibition and an emergency stay from the Texas Supreme Court, both of which were denied the day they were filed.  When called to trial, both parties waived a jury, and the trial court awarded each party half the funds remaining in the registry (by now almost $4 million). 

            Madeksho and the clients appealed, but did not supersede the judgment; on May 24, 2001, the funds were disbursed.  A panel of this Court held the trial court had no subject-matter jurisdiction to conduct the post-judgment proceedings.  The panel pointed to Harris County Children’s Protective Services v. Olvera,[4] in which this Court said trial courts have no jurisdiction to do anything except what is stated in an appellate mandate.  Here, the Supreme Court mandate stated:

Roy Malone, et al.

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Lawrence Madeksho, Roy and Mary Malone, Thomas Gillespie, and Patricia Garefalos v. Abraham, Watkins, Nichols & Friend, Robert Ballard and the Law Office of Robert E. Ballard, P.C., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawrence-madeksho-roy-and-mary-malone-thomas-gillespie-and-patricia-texapp-2003.