Raymond James & Associates, Inc. v. Stanton Welch

CourtCourt of Appeals of Texas
DecidedMarch 31, 2025
Docket01-23-00194-CV
StatusPublished

This text of Raymond James & Associates, Inc. v. Stanton Welch (Raymond James & Associates, Inc. v. Stanton Welch) 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
Raymond James & Associates, Inc. v. Stanton Welch, (Tex. Ct. App. 2025).

Opinion

Opinion issued March 31, 2025

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-23-00193-CV ——————————— RAYMOND JAMES & ASSOCIATES, INC., Appellant V. ANN CHRISTENSEN, INDIVIDUALLY AND AS INDEPENDENT EXECUTOR OF THE ESTATE OF SCOTT REAGAN MILLER, DECEASED; WILSON JOSEPH MILLER, INDIVIDUALLY; SAMUEL LANE MILLER, INDIVIDUALLY; ELLIOTT JAMES MILLER, INDIVIDUALLY; MERLE WAYNE MILLER, INDIVIDUALLY; AND LORIS YVONNE MILLER, INDIVIDUALLY, Appellees and ———————————— NO. 01-23-00194-CV ——————————— RAYMOND JAMES & ASSOCIATES, INC., Appellant V. STANTON WELCH, Appellee and ——————————— NO. 01-23-00195-CV ——————————— RAYMOND JAMES & ASSOCIATES, INC., Appellant V. JENNIFER TELLEPSEN, INDIVIDUALLY, AS DEPENDENT ADMINISTRATOR OF THE ESTATE OF MARC TELLEPSEN, DECEASED, AND AS NEXT FRIEND OF XXXX XXXXXXXXX AND XXXXX XXXXXXXXX, MINORS; TOM TELLEPSEN, II; AND KATHLEEN TELLEPSEN, Appellees

On Appeal from the Probate Court No. 2 Harris County, Texas Trial Court Case Nos. 477,158-401, 477,158-402, and 477,158-403

O P I N I O N

These appeals arise out three lawsuits concerning a fatal airplane crash.

Jeffrey Weiss piloted the plane. The passengers were Weiss’s friends Stuart

and Angie Kensinger, as well as Scott Reagan Miller, Marc Tellepsen, and Mark

Scioneaux. They were traveling to the Kensingers’ ranch to discuss a building and

landscaping project. The plane crashed en route, tragically killing all aboard.

In the ensuing investigation, the National Transportation Safety Board

concluded that Weiss was at fault. No party disputes this conclusion.

The appellees, a combination of representatives of the estates of the deceased

passengers and their wrongful death beneficiaries, sued Weiss’s estate, as well as

2 Weiss’s employer, Raymond James & Associates, Inc. The appellees contended

Raymond James was vicariously liable for Weiss’s negligence because he was acting

in the scope of his employment while piloting the plane.

Weiss was employed as a financial advisor. The appellees presented evidence

that Weiss used aviation as a vehicle for engaging in business development. The

appellees also presented evidence that Weiss had, at times, labeled passengers on the

plane as business prospects.

The jury agreed with the appellees. It found that Weiss negligently caused the

fatal crash and was acting in the scope of his employment at the time of the crash.

On appeal, Raymond James argues the evidence is legally insufficient to

support the jury’s finding that Weiss was acting in the scope of his employment.

Because we conclude the evidence is legally sufficient, we affirm.

BACKGROUND

The parties’ dispute on appeal is a narrow one: whether the jury heard

evidence legally sufficient to support its finding that Weiss was acting in the scope

of his employment with Raymond James at the time of the fatal accident. We confine

our recitation of the background to the evidence relevant to the issue. The jury charge

explained the legal doctrine as follows:

An employee is acting in the scope of his employment if—

he is acting in the furtherance of the business of his employer and

3 his action is of the same general nature as the conduct authorized by his employer and is for the accomplishment of the object for which the employee was hired.

In some circumstances, an employee’s conduct may be within the general nature of the conduct authorized by the employer even if it is contrary to the employer’s express orders. Whether the employee is acting contrary to express orders is one factor that you may consider in deciding whether an act is in the scope of employment.

Weiss’s Role at Raymond James

Jeffrey Weiss was employed as a financial advisor by Raymond James, a firm

that engages in financial planning and investing for clients. Weiss had been with the

firm since 2012. His title was Senior V.P., Investments.

The firm summarized Weiss’s position as follows: “Prospect for and retain

clients in order to enable those clients to reach their financial goals based on their

objectives, time horizon, and risk tolerance.” Seeking business from clients and

potential clients was listed among Weiss’s essential job duties. Charles Zimmerman,

the former manager of the Houston branch and Weiss’s direct supervisor, testified

that “any successful financial advisor certainly does prospect in order to grow their

business.”

Frank Maggio, who knew Weiss from their days at another firm, explained

that a financial advisor’s income is directly related to the development of new

business. New business would benefit both Weiss and Raymond James. In Maggio’s

experience, Weiss’s general approach to business development was to establish a

4 friendship with a potential client before seeking their business. As part of this

approach, Weiss would invest significant time developing prospective clients.

Weiss’s Airplane Use

Weiss was an avid pilot of small airplanes. In a 2016 e-mail exchange with

Maggio, Weiss explained that he used his enthusiasm for aviation to develop new

business: “I’m still doing a lot of flying: personal, business, charity and volunteer.

In fact it’s through aviation that I am acquiring clients and new opportunities.”

(emphasis added). In the same e-mail exchange, Weiss wrote that his business was

booming: “I’m doing great here at Raymond James. My business is growing in just

the manner I like it. My assets under management grew 20% last year when the

industry was flat to down. My revenues were up 49% also when the industry was

flat to down.”

Expense reports submitted by Weiss corroborate his use of aviation to develop

business. In 2016, Weiss became eligible for a personal business development

account with the firm, a program under which qualifying financial advisors could set

aside some of their own money each year on a pre-tax basis. Like a flexible spending

account, the advisor had to use the money set aside in this account by the year’s end

or it was lost. Once Weiss became eligible for this account, his associated expense

reports show that he expensed costs for flights involving clients and potential clients.

5 Weiss, the Kensingers, and Reagan Miller

Though the Kensingers had long known Weiss and had flown with him before,

Weiss began identifying them as prospective clients in expense reports about a year

and half before the fatal accident. Either Stuart or Angie or both are listed as

prospects in expense reports associated with flights from January 2018, February

2018, September 2018, and March 2019.1 Reagan Miller (another individual on the

flight) likewise was identified as a prospective client in an expense report associated

with a flight in February 2018.

Weiss also had a conventional expense account, through which the firm

reimbursed certain business-related expenses. Expense reports for this account list

Stuart Kensinger as a prospect for meals in the same timeframe: January 2018, May

2018, and January 2019, as well as two earlier meals in 2016 and 2017.

Conventional Account Travel Reimbursement Policy

The firm’s travel and expense reimbursement policy, which applied to

Weiss’s conventional expense account, expressly forbade the use of private aircraft

for business use. The applicable provision stated: “In accordance with corporate

policies and insurance contracts, associates are strictly prohibited from piloting

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Raymond James & Associates, Inc. v. Stanton Welch, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raymond-james-associates-inc-v-stanton-welch-texapp-2025.