New Tech Global Ventures, LLC v. Kerry E. Notestine, Conor H. Kelly, Brian Hentosz, and Terrence Murphy

CourtCourt of Appeals of Texas
DecidedFebruary 9, 2023
Docket14-21-00121-CV
StatusPublished

This text of New Tech Global Ventures, LLC v. Kerry E. Notestine, Conor H. Kelly, Brian Hentosz, and Terrence Murphy (New Tech Global Ventures, LLC v. Kerry E. Notestine, Conor H. Kelly, Brian Hentosz, and Terrence Murphy) 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
New Tech Global Ventures, LLC v. Kerry E. Notestine, Conor H. Kelly, Brian Hentosz, and Terrence Murphy, (Tex. Ct. App. 2023).

Opinion

Affirmed and Memorandum Opinion filed February 9, 2023.

In The

Fourteenth Court of Appeals

NO. 14-21-00121-CV

NEW TECH GLOBAL VENTURES, LLC, Appellant V.

KERRY E. NOTESTINE, CONOR H. KELLY, BRIAN HENTOSZ, AND TERRENCE MURPHY, Appellees

On Appeal from the 11th District Court Harris County, Texas Trial Court Cause No. 2020-31696

MEMORANDUM OPINION

Appellant New Tech Global Ventures, LLC (New Tech) appeals the trial court’s order dismissing its claims against appellees, four Littler Mendelson lawyers (the Littler Lawyers), for legal malpractice. The Littler Lawyers moved to dismiss the case under the Texas Citizens Participation Act. New Tech complains that the trial court erred in granting the motion, contending that (1) the TCPA’s commercial-speech exemption prevents application of the TCPA to its claims, (2) its claims against each of the four lawyers fall outside the scope of the TCPA, and (3) New Tech established by clear and specific evidence a prima facie case for each essential element of its legal malpractice claims. In connection with the latter issue, New Tech also challenges the trial court’s order sustaining the Littler Lawyers’ objections to statements and opinions of New Tech’s experts. New Tech also addresses the movants’ statute of limitations affirmative defense. We affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

As this case involves legal malpractice and related claims based on alleged negligent lawyering during a prior litigation, we begin by discussing the prior litigation.

The Bercier Lawsuit

New Tech is a staffing company providing project management and consulting services to independent oil and gas companies operating drilling rigs. Dale Bercier, a drilling supervisor who worked for New Tech, sued New Tech in federal district court in Houston under the Federal Labor Standards Act (“FLSA”) in 2017, alleging that New Tech had failed to pay him proper wages for overtime work. Bercier filed the lawsuit not only on his own behalf, but also purportedly on behalf of a class of other similarly situated employees. (The Bercier Lawsuit).

New Tech and its general counsel, David O’Neil, had previously retained Littler Mendelson to represent New Tech in other FLSA lawsuits. Appellee Kerry Notestine, a partner in the Houston office of Littler, was the originating attorney and main point of contact for New Tech in the FLSA lawsuits.

As it had done since 2014, New Tech retained Littler to represent it in the Bercier lawsuit. Appellee Terrence Murphy, a partner in the Pittsburgh office with

2 extensive experience handling FLSA actions, served as lead counsel for New Tech in the lawsuit. Appellee Brian Hentosz, an associate in the Pittsburgh office, assisted Murphy. Murphy, as lead counsel, supervised Hentosz’s work.1

Under the FLSA, a class member who wishes to participate in a class action must affirmatively “opt into” the class. Early in an FLSA case, the attorneys for both sides will often negotiate the terms of a class definition for a federal district court to include in a conditional class certification order under which potential class members may consent to participate in — or, in other words, “opt into” — the class action.

Murphy and Hentosz negotiated with Bercier’s counsel at Kennedy Hodges over the terms of an agreed joint stipulation on conditional class certification. After Bercier’s lawyers proposed that the class include all of New Tech’s “current and former consultants and/or supervisors,” Murphy and Hentosz countered, seeking to limit the class to include just New Tech’s drilling supervisors. Importantly, Bercier was a drilling supervisor and not a completion supervisor.2 Bercier’s counsel agreed to Hentosz’s proposed class definition, and the district court signed a conditional class certification order that defined the class to include all “drilling supervisors paid a day rate and classified as independent contractors who performed services through Defendant at any time from the date of mailing to the Present.”

1 Conor Kelley worked on the case from the Houston office. His principal involvement was to attend hearings. Though New Tech asserts no unique allegations with respect to his conduct, he is grouped with the other appellees for acts of alleged legal malpractice that New Tech asserted collectively against all appellees. 2 In its opening brief New Tech explains drilling supervisors supervise the drilling stage of an oil and gas operation — i.e., the initial stage in which the operator spuds a well and drills a hole into the earth, and completions supervisors supervise the completions stage of an oil and gas operation — i.e., the stage in which the operator pushes steel pipe into the hole and then cements and perforates the casing for production. 3 After the order was signed, Bercier’s attorney asked Murphy and Hentosz to produce documents identifying the names of all potential class members. Instead of producing a list limited to New Tech’s drilling supervisors, Hentosz gave Kennedy Hodges a list that he had received from David O’Neil’s paralegal at New Tech before negotiating the class definition with Bercier’s counsel— a list that included New Tech’s completions supervisors in addition to New Tech’s drilling supervisors.

When confronted by O’Neil about sending the expanded list of class members, including drilling supervisors, Hentosz told O’Neil that the strategy from the beginning was for the class to include both drilling and completions supervisors. The Littler Lawyers maintain that the disclosure was intentional. Notestine sent an email to O’Neil summarizing Murphy’s reasons in greater detail.

Unsatisfied with the explanation, New Tech fired the Littler Lawyers and hired another lawyer, Annette Idalski, to represent them in the Bercier lawsuit. Idalski asked the district court to strike or sever the claims of the completions supervisors who had opted to participate in Bercier’s FLSA collective action, and filed a motion to compel each of the plaintiffs to pursue individual arbitrations of their respective FLSA claims.

New Tech’s Malpractice Action

New Tech filed its state court action for legal malpractice action against appellees on May 26, 2020. The principal if not exclusive factual basis for the lawsuit is Hentosz’s disclosure to Bercier’s lawyers of the names of New Tech’s completions supervisors.

The Littler Lawyers filed their TCPA Motion to Dismiss on July 1, 2020. The Parties engaged in discovery, including multiple depositions, and New Tech

4 filed a response to the TCPA motion, amended its pleadings and supplemented its arguments and evidence in response to the TCPA several times. New Tech attached several declarations of various witnesses to support its response to the TCPA motion, including the declaration of Annette Idalski, who provided expert testimony to support elements of its legal malpractice claim. The Littler Lawyers objected to many statements in Idalski’s declaration, and after the trial court heard the parties’ arguments on the objections, signed an order sustaining many of New Tech’s objections.

After a hearing, the trial court granted the TCPA motion and dismissed New Tech’s claim for legal malpractice on October 5, 2020. After New Tech nonsuited its remaining claims against the Littler Lawyers and the trial court entered an order granting attorneys’ fees, the trial court entered a final judgment on February 24, 2021.

II. ISSUES AND ANALYSIS

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Cite This Page — Counsel Stack

Bluebook (online)
New Tech Global Ventures, LLC v. Kerry E. Notestine, Conor H. Kelly, Brian Hentosz, and Terrence Murphy, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-tech-global-ventures-llc-v-kerry-e-notestine-conor-h-kelly-brian-texapp-2023.