Ray Douglas Griffith v. Lindsay D. Steele and Steele Law Firm PLLC

Texas Court of Appeals, 2nd District (Fort Worth)·Decided June 18, 2026·No. 02-26-00045-CV·Published

Opinion

In the

Court of Appeals

Second Appellate District of Texas at Fort Worth

No. 02-26-00045-CV

RAY DOUGLAS GRIFFITH, Appellant V.

LINDSAY D. STEELE AND STEELE LAW FIRM PLLC, Appellees

On Appeal from the 348th District Court Tarrant County, Texas

Trial Court No. 348-370088-25

Before Sudderth, C.J.; Kerr, J.; and Wallach, JJ.

Memorandum Opinion by Justice Kerr

MEMORANDUM OPINION

Appellant Ray Douglas Griffith sued his former bankruptcy attorney and her firm, Appellees Lindsay D. Steele and Steele Law Firm PLLC (collectively Steele), for legal malpractice and negligence when an involuntary dismissal of Griffith’s Chapter 13 bankruptcy case led to his losing his family ranch at a foreclosure sale in the gap before his bankruptcy case was reinstated. Steele moved to dismiss Griffith’s claims under Rule 91a—a motion the trial court granted. At issue in this appeal is whether the trial court properly determined that limitations barred Griffith’s claims against Steele. Because the trial court correctly ordered dismissal on that basis, we will affirm.

I. Background

A. The Alleged Legal Malpractice1 Over 20 years ago, Griffith bought around 200 acres in Cisco, Texas, that he described as his “beloved family ranch” and that became his father’s “final resting place.” Griffith financed the ranch’s purchase with a loan from Lone Star Bank.

In late 2018, Griffith began experiencing financial difficulties, and he engaged Steele to file a Chapter 13 bankruptcy case on November 4, 2019. Griffith filed for bankruptcy primarily to protect his interest in his ranch. To that end, upon his filing,

1 The underlying facts are disputed, but because this appeal involves a Rule 91a motion, we take as true Griffith’s allegations about Steele’s malpractice. See Tex. R. Civ. P. 91a; City of Dallas v. Sanchez, 494 S.W.3d 722, 724 (Tex. 2016).

the Bankruptcy Code’s automatic-stay provision successfully stopped a foreclosure sale that Lone Star had scheduled for the next day. See 11 U.S.C. § 362.

But on December 4, 2019, the bankruptcy court dismissed Griffith’s Chapter 13 case after he missed a December 2 deadline to file certain documents with the bankruptcy court. Griffith alleged that he had attempted to speak or meet with Steele “to get her the information needed to continue with the bankruptcy,” and he further alleged—“[u]pon information and belief”—that he had given her the needed documents by the filing deadline. According to Griffith, despite his efforts, Steele failed to meet the filing deadline or to seek a filing extension, resulting in the case’s dismissal.

Regardless of who is to blame, the automatic stay ended upon the case’s dismissal, and Lone Star resumed its foreclosure efforts. Steele moved on December 9 to reinstate the bankruptcy case, but she did not also request an expedited reinstatement, so no bankruptcy stay existed to prevent Lone Star’s proceeding with a foreclosure sale. Griffith’s ranch was sold at a January 7, 2020 foreclosure sale.2 Seven days later, the bankruptcy court reinstated Griffith’s bankruptcy case, at which time the automatic stay went back into effect.

Seeking to “undo the results of [Steele’s] negligence” and to recover what he had lost during the “gap” in which the automatic stay was not in place, Griffith hired

The ranch sold for $102,000. It was valued at around $510,000, and Griffith 2

owed Lone Star around $94,000.

another attorney to initiate an adversary proceeding in the bankruptcy court against Lone Star for breach of contract and wrongful foreclosure. The bankruptcy court ruled in Lone Star’s favor. Griffith appealed first to the district court, which affirmed, and he appealed next to the Fifth Circuit Court of Appeals, which also affirmed in a January 30, 2023 decision. 3 Griffith’s pleadings do not indicate that Steele was involved in the adversary proceeding, but he alleged that she represented him in his Chapter 13 case “in his initial filing, through his bankruptcy’s reinstatement in mid-January 2020, and during his bankruptcy plan, conveying information and maintaining [her] representation of him.” When Griffith received the notice of his plan’s completion on November 13, 2024, Steele filed the motion for entry of a discharge order, which the bankruptcy court signed on December 30, 2024. B. The Legal-Malpractice Lawsuit On September 11, 2025, Griffith sued Steele for legal malpractice and negligence. In response, Steele filed a Rule 91a dismissal motion, arguing that the two-year statute of limitations had expired before Griffith had filed suit. Specifically, Steele argued that Griffith’s claims accrued on December 4, 2019, when the bankruptcy court dismissed Griffith’s Chapter 13 case and the stay ended—the event

3 See Griffith v. Lone Star FLCA (In re Griffith), No. 19-44562-MXM-13, 2021 WL 2389671 (Bankr. N.D. Tex. June 10, 2021), aff’d sub nom. Griffith v. Lone Star FLCA, No. 4:21-cv-0825-P, 2022 WL 1289559 (N.D. Tex. Apr. 28, 2022), aff’d, No. 22-10527, 2023 WL 1095133 (5th Cir. Jan. 30, 2023) (per curiam).

that enabled Lone Star to sell the ranch at foreclosure during the gap created by Steele’s not requesting the case’s expedited reinstatement. She alternatively argued that Griffith’s claims accrued “at the latest” on January 7, 2020—the date of the foreclosure sale.

Steele’s Rule 91a motion also preemptively addressed the potential applicability of the tolling doctrine recognized in Hughes v. Mahaney & Higgins, 821 S.W.2d 154 (Tex. 1991). Steele quoted from Hughes: “[W]hen an attorney commits malpractice in the prosecution or defense of a claim that results in litigation, the statute of limitations on the malpractice claim against the attorney is tolled until all appeals on the underlying claim are exhausted.” Id. at 157. She argued that the adversary proceeding in the bankruptcy case was the litigation resulting from the alleged malpractice and that the Fifth Circuit affirmed the bankruptcy court’s ruling on January 30, 2023. Steele thus argued that even if the Hughes tolling doctrine applied, Griffith’s September 11, 2025 filing came too late.

Griffith amended his petition to plead the Hughes tolling doctrine and responded to Steele’s Rule 91a motion. Among other things, he argued that the reinstated bankruptcy case was the resulting litigation under Hughes, that Steele had represented Griffith through the bankruptcy court’s December 30, 2024 discharge order, and that he had filed the underlying malpractice suit within two years of that date. Griffith replied and among other things (1) distinguished the adversary proceeding from the overall bankruptcy case and (2) argued that Steele’s continued

representation of Griffith in the bankruptcy case after he had exhausted his appeals in the adversary proceeding did not impact the limitations analysis.

After considering the parties’ filings, the trial court determined that Griffith’s claims were “barred by the statute of limitations,” granted Steele’s Rule 91a motion, and dismissed Griffith’s claims against Steele with prejudice. Griffith appealed.

II. Discussion

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Ray Douglas Griffith v. Lindsay D. Steele and Steele Law Firm PLLC, (Tex. Ct. App. 2026).

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