Nathan Weilbacher v. Melodie Craft

Court of Appeals of Texas·Decided November 19, 2014·No. 05-13-01252-CV·Published

Opinion

AFFIRM; and Opinion Filed November 19, 2014.

S In The Court of Appeals Fifth District of Texas at Dallas No. 05-13-01252-CV

NATHAN WEILBACHER, Appellant V. MELODIE CRAFT, Appellee

On Appeal from the 191st Judicial District Court Dallas County, Texas Trial Court Cause No. 13-06130-J

MEMORANDUM OPINION Before Justices O’Neill, Lang-Miers, and Brown Opinion by Justice O’Neill Appellee Melodie Craft is an attorney. She represented a party opposing appellant

Nathan Weilbacher in litigation. Weilbacher sued Craft for fraud after her client allegedly

breached an agreement to settle the litigation. The trial court granted Craft’s motions for

summary judgment and to sever the claims against her from the remaining claims in the lawsuit.

In two issues, Weilbacher alleges the trial court erred in both rulings. Because we conclude that

both summary judgment and severance were proper, we affirm the trial court’s judgment. We

issue this memorandum opinion because all matters are settled in law. See TEX. R. APP. P. 47.4.

BACKGROUND

Weilbacher alleges that Kelly Jones, one of the defendants in the trial court, induced him

to go to work for Digital Discovery f/k/a Digital Works LLC (“DDC”) with promises of a salary,

ownership in the company, and a share of its profits. When DDC and Jones terminated Weilbacher’s employment “unjustifiably without providing ownership and profits from DDC,”

Weilbacher filed suit. Craft represented DDC and Jones in negotiations with Weilbacher and his

attorney Mark Ticer to settle the lawsuit. Although Craft sent Ticer a settlement agreement to

which Weilbacher agreed and signed, neither Jones nor DDC ever signed the agreement. When

Jones and DDC 1 failed to make the payments required by the agreement, Weilbacher amended

his petition to plead claims for breach of the settlement agreement and fraud. After deposing

Jones on these claims, Weilbacher amended his petition to add Craft as a defendant. Craft filed a

traditional and no-evidence motion for summary judgment on Weilbacher’s claims against her. 2

The trial court granted Craft’s motion. Craft then moved to sever Weilbacher’s claims against

her from the claims still pending against Jones. The trial court also granted this motion, and

severed Weilbacher’s claims against Craft under a separate cause number. This appeal followed.

STANDARDS OF REVIEW

We review the trial court’s decision to grant a severance for abuse of discretion. Guar.

Fed. Sav. Bank v. Horseshoe Operating Co., 793 S.W.2d 652, 658 (Tex. 1990). A trial court

abuses its discretion when it acts without reference to any guiding rules or principles. Downer v.

Aquamarine Operators, Inc., 701 S.W.2d 238, 241–42 (Tex. 1985).

We review the trial court’s summary judgment rulings de novo. Provident Life &

Accident Ins. Co. v. Knott, 128 S.W.3d 211, 215 (Tex. 2003). A no-evidence motion for

summary judgment asserts that there is no evidence of one or more essential elements of a claim

upon which the opposing party would have the burden of proof at trial. See Espalin v.

Children’s Med. Ctr. of Dallas, 27 S.W.3d 675, 682 (Tex. App.—Dallas 2000, no pet.). A no-

1 After DDC filed for bankruptcy protection, litigation against it was stayed, and Weilbacher’s claims against Jones were severed into a separate lawsuit. DDC was not a party to the summary judgment proceedings from which this appeal arises. 2 Weilbacher explains that at the time of summary judgment, his only pending claims against Craft were for fraud and negligent misrepresentation. His appeal is limited to his fraud claim.

–2– evidence summary judgment is essentially a pretrial directed verdict to which we apply the same

legal sufficiency standard of review. Gen. Mills Rests., Inc. v. Texas Wings, Inc., 12 S.W.3d 827,

832–33 (Tex. App.—Dallas 2000, no pet.). A no-evidence summary judgment is properly

granted if the nonmovant fails to bring forth more than a scintilla of probative evidence to raise a

genuine issue of material fact on the challenged elements. See King Ranch, Inc. v. Chapman,

118 S.W.3d 742, 750–51 (Tex. 2003). In determining whether the nonmovant has met its

burden, we review the evidence in the light most favorable to the nonmovant and resolve all

doubts in its favor. See Gen. Mills Rests., Inc., 12 S.W.3d at 832–33.

To prevail on a traditional motion for summary judgment, a defendant must either

disprove at least one element of each of the plaintiff’s theories of recovery or plead and

conclusively establish each element of an affirmative defense, thereby rebutting the plaintiff’s

cause of action. See Espalin, 27 S.W.3d at 682. A matter is conclusively established if ordinary

minds could not differ as to the conclusion to be drawn from the evidence. Id. Once the

defendant establishes its right to summary judgment as a matter of law, the burden shifts to the

plaintiff to present evidence raising a genuine issue of material fact, thereby precluding summary

judgment. Id. Where, as here, the summary judgment does not state the grounds on which it was

granted, the nonmovant must show on appeal that each independent ground alleged is

insufficient to support the summary judgment granted. Id. If a movant does not show its

entitlement to judgment as a matter of law, we must remand the case to the trial court for further

proceedings. Id.

–3– DISCUSSION

1. Summary judgment

In his second issue, Weilbacher contends the trial court erred by granting summary

judgment on his fraud claims against Craft. He contends that he raised a genuine issue of

material fact on the elements of fraud: (1) Craft made a material misrepresentation that was

false; (2) Craft knew the representation was false, or made it recklessly as a positive assertion

without any knowledge of its truth; (3) Craft intended to induce Weilbacher to act on the

representation; and (4) Weilbacher justifiably relied on the representation and suffered injury.

See Ernst & Young, L.L.P. v. Pac. Mut. Life Ins. Co., 51 S.W.3d 573, 577 (Tex. 2001). He

argues that although Craft is immune from some claims, she can be held liable for fraud that is

not part of the discharge of her duties to her client. See Alpert v. Crain, Caton & James, P.C.,

178 S.W.3d 398, 405 (Tex. App.—Houston [1st Dist.] 2005, pet. denied) (cause of action could

exist against attorney who knowingly commits fraudulent act outside scope of legal

representation of client).

Weilbacher argues that the summary judgment evidence “establishes that Craft

represented she had authority to enter into a settlement agreement and a settlement agreement

had been reached.” He relies on Ticer’s summary judgment affidavit and the deposition

testimony of both Craft and Jones.

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