Powell v. Belden CA5

CourtCalifornia Court of Appeal
DecidedMay 19, 2025
DocketF087583
StatusUnpublished

This text of Powell v. Belden CA5 (Powell v. Belden CA5) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powell v. Belden CA5, (Cal. Ct. App. 2025).

Opinion

Filed 5/19/25 Powell v. Belden CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIFTH APPELLATE DISTRICT

JOHN POWELL, JR., et al., F087583 Plaintiffs and Respondents, (Super. Ct. No. BCV-23-102041- v. TSC)

T. SCOTT BELDEN et al., OPINION Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Kern County. Thomas S. Clark, Judge. Kaufman Dolowich, Andrew J. Waxler and Jennifer E. Newcomb, for Defendants and Appellants. The Baker Firm, Kenneth Eric Baker, for Plaintiffs and Respondents. -ooOoo- INTRODUCTION Plaintiffs and respondents John Powell, Jr., and Engineered Well Service International, LLC, filed a civil lawsuit against defendants and appellants T. Scott Belden and Belden Blaine Raytis, LLP. Plaintiffs allege, inter alia, that defendants breached their fiduciary duties and committed legal malpractice by using confidential information obtained during their prior representation of plaintiffs to gain an advantage in various lawsuits in which defendants represented an adverse party. Defendants filed a special motion to strike all five causes of action alleged in the complaint under the anti-SLAPP statute (Code Civ. Proc.,1 § 425.16), asserting that they never represented plaintiffs and that the claims therein arise from petitioning activity protected by the statute. We reverse the trial court’s ruling on count three but affirm as to all other counts. STATEMENT OF FACTS Powell and Sturgeon’s Business Relationship John Powell, Jr., and Paul Sturgeon were business partners in three entities, all of which provided services in the oilfield industry: Engineered Well Service, LLC (EWS Texas), Engineered Well Service International, Inc. (EWS California), and Sturgeon Services International, Inc. (SSI). As relevant here, Powell served as the chief executive officer of all three companies at various points, and prior to 2015, he was a majority owner of EWS Texas and EWS California. Sturgeon served as the president of SSI, and he was a shareholder of EWS California and EWS Texas. In 2010, Powell claimed that he was introduced to defendants as a future contact for SSI. In 2011, Powell alleged that defendants represented him in his divorce.2

1 All further undefined statutory citations are to the Code of Civil Procedure unless otherwise indicated. 2 Defendants allege that Powell was represented by a partner at the law firm of Klein DeNatale Goldner, LLP, and although Belden worked as an attorney for that firm,

2. In 2013, Powell retained defendants to represent SSI in an employment lawsuit. In 2015, a dispute arose between Powell and Sturgeon regarding the ownership and management of the entities. Sturgeon asked defendants to draft an agreement in which the two parties would divide ownership of the companies and discontinue their working relationship. During the negotiation of this agreement (the mutual agreement), defendants represented Sturgeon. Powell was represented by a third party. Powell Sues over the Mutual Agreement On January 12, 2016, Powell sued Sturgeon, SSI, and EWS California (collectively, the Sturgeon parties). Powell claimed that Sturgeon had altered the mutual agreement without informing him of relevant changes. Powell further asserted that he had been pressured into signing the agreement before his attorney had the opportunity to review those changes. Defendants acted as legal counsel for the Sturgeon parties during the litigation. On March 9, 2016, the Sturgeon parties filed a cross-complaint against Powell, alleging various breach of duties through Powell’s management of EWS California and SSI, breach of the mutual agreement, and claiming that Powell had converted $150,000 in funds from EWS California (the EWS California funds). The Sturgeon parties subsequently filed an amended cross-complaint and Powell filed an amended complaint. On December 2, 2019, the case proceeded to trial. On March 1, 2023, after significant proceedings not herein relevant, the parties reached a settlement agreement. The settlement agreement, which had to be enforced by

he performed no work on Powell’s family law case. Evidence furnished by Powell in support of his assertion shows that he was represented by Thomas V. DeNatale, Jr., of Klein DeNatale Goldner Cooper Rosenlieb and Kimball.

3. order of the court, contains a complete release of all pending causes of action between Powell and the Sturgeon parties, as well as all prior verdicts.3 The Criminal Prosecution Against Powell On May 3, 2017, the Kern County District Attorney’s Office charged Powell with grand theft related to the EWS California funds. At the prosecutor’s request, Belden testified at Powell’s preliminary hearing, while Sturgeon testified at Powell’s criminal trial. Throughout the proceedings, Belden served as Sturgeon’s legal counsel. During proceedings, the prosecuting attorney informed the court that he had received emails from Sturgeon and Belden, leading him to believe they had been communicating or listening to the audio stream of court proceedings. The prosecutor had instructed the witnesses not to discuss their testimony. Upon further inquiry, Belden denied listening to the audio stream of Powell’s trial but stated that Sturgeon and Sturgeon’s son had related information to him about portions of the witnesses’ testimony. Belden explained that as counsel for one of the victims, he had emailed the prosecutor suggesting that a former EWS California employee might be able to provide clarifying information about another witness’s testimony. The trial court denied a motion for mistrial made by Powell’s attorney, finding that Powell had not suffered prejudice as a result of Belden’s conduct. On February 17, 2022, a jury found Powell not guilty. The Instant Civil Action On June 26, 2023, four days after the parties’ settlement agreement was enforced by court order, plaintiffs filed a civil complaint against defendants, seeking damages for

3 Defendants’ opening brief details numerous instances in which they represented the Sturgeon parties in litigation, including in matters adverse to plaintiffs. We have omitted details of these lawsuits from our statement of facts. We accept defendants’ assertion that plaintiffs never sought to disqualify defendants from representing the Sturgeon parties in litigation, and that defendants represented parties adverse to plaintiffs. Powell admits as much in his pleadings.

4. intentional and negligent infliction of emotional distress, abuse of process, breach of fiduciary duty, and professional negligence. Plaintiffs alleged that defendants “at all times relevant to th[e] complaint [were] in an attorney client relationship” with them, while simultaneously representing the Sturgeon parties—a party who had opposed the plaintiffs in multiple civil actions. On September 15, 2023, defendants filed their anti-SLAPP motion. Plaintiffs filed an opposition, and the parties subsequently appeared for argument on the motion. On January 30, 2024, the defendants’ motion was denied.4 DISCUSSION

I. Breach of Fiduciary Duty (Fourth Cause of Action) and Legal Malpractice (Fifth Cause of Action) Defendants contend that the trial court erred in finding that the claims alleged in plaintiffs’ complaint were not protected activities for purposes of the anti-SLAPP statute. According to defendants, the trial court specifically erred in finding that because there was a factual dispute concerning whether an attorney-client relationship existed between them and Powell, defendants’ anti-SLAPP motion must be denied.

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Powell v. Belden CA5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-belden-ca5-calctapp-2025.