Schlager v. Clements

939 S.W.2d 183, 1996 WL 499470
CourtCourt of Appeals of Texas
DecidedOctober 10, 1996
Docket14-94-00746-CV
StatusPublished
Cited by84 cases

This text of 939 S.W.2d 183 (Schlager v. Clements) 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
Schlager v. Clements, 939 S.W.2d 183, 1996 WL 499470 (Tex. Ct. App. 1996).

Opinion

OPINION

LEE, Justice.

Appellants, Rita and Ronald Schlager, appeal a summary judgment in favor of appel-lees, Robert Clements, Jr., Roy E. Brown, Alton C. Todd and Brown, Todd, Hagood & Davenport, and judgment awarding appel-lees’ attorney’s fees. The Schlagers filed this legal malpractice action alleging negligence, violations of the Texas Deceptive Trade Practices Act (DTPA), breach of contract and gross negligence. Appellees counterclaimed under the DTPA alleging that the action was groundless and brought in bad faith or for the purpose of harassment. Ap-pellees moved for and received a summary judgment in their favor. The trial court held a bench trial on appellees’ counterclaim and awarded $50,000 in attorney’s fees. In four points of error, the Schlagers appeal both the summary judgment and the judgment awarding appellees attorney’s fees. We affirm.

The Schlagers owned and successfully operated two emergency medical clinics in Bra-zoria County. Despite the fact that the medical clinics were not being offered for sale, TDR Management, Inc. (TDR) approached the couple and offered to purchase the clinics. The parties eventually agreed on a purchase price of $465,000 for the clinics. TDR paid $65,000 in cash and the Schlagers received notes for the remaining $400,000. TDR took over the operation of the climes and, soon thereafter, defaulted on the notes forcing the Schlagers to pursue foreclosure proceedings. TDR brought suit against the Schlagers alleging fraud in the sale of the clinics and contending that the Schlagers were interfering with the operation of the climes. To assist in defending the matter, the Schlagers hired Robert Clements of Brown, Todd, Hagood & Davenport. Clem *186 ents filed a counterclaim on behalf of the Schlagers seeking to recover on the unpaid notes.

TDR was also a general partner of Consolidated Medical Clinic Emergency Centers, Ltd., (Consolidated) which owned and operated five medical clinics in Houston. While Consolidated had a bankruptcy reorganization pending, the Sisters of Charity to the Incarnate Word entered into negotiations with TDR and Consolidated for the purchase of all seven clinics. During this same time, TDR attempted to settle with the Schlagers so that the sale to the Sisters of Charity could be completed. The Schlagers alleged that they instructed Clements to find out where TDR was getting the money for the proposed settlement, but TDR refused to provide the requested information. Eventually, the parties agreed on a settlement of $300,000, less attorney’s and broker’s fees of $30,000. The Schlagers presented some evidence that they requested assurances that TDR was not negotiating with a third-party for a sale of the clinics for more than $300,-000. The Schlagers contend that despite this request, the settlement was expressly contingent on TDR’s sale of the clinics for no more than $300,000. The parties ultimately discovered that the seven clinics were sold for $1.3 million of which $300,000 was allocated to the two Brazoria climes previously owed by the Schlagers. The Schlagers eventually became dissatisfied with Clements’ representation of them and brought this legal malpractice action.

In their first point of error, the Schlagers contend that the trial court improperly granted appellees a summary judgment. The standard of review to be followed in a summary judgment is well-established. The movant has the burden of showing that there is no genuine issue of material fact and that he is entitled to judgment as a matter of law. In deciding whether or not there is a disputed material fact issue precluding summary judgment, evidence favorable to the non-movant will be taken as true. Every reasonable inference must be indulged in favor of the non-movant and any doubts are resolved in his favor. Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548-49 (Tex.1985); Montgomery v. Kennedy, 669 S.W.2d 309, 310-11 (Tex.1984); Karl v. Oaks Minor Emergency Clinic, 826 S.W.2d 791, 794 (Tex.App.—Houston [14th Dist.] 1992, writ denied).

Summary judgment for the defendant is proper when the proof shows that no genuine issue of material fact exists on one or more of the essential elements of the plaintiffs cause of action, or when the defendant establishes each element of an affirmative defense as a matter of law. Black v. Victoria Lloyds Ins. Co., 797 S.W.2d 20, 27 (Tex.1990). A defendant who moves for summary judgment has the burden of showing as a matter of law that no material issue of fact exists on the plaintiffs cause of action. Arnold v. National County Mut. Fire Ins. Co., 725 S.W.2d 165, 166-67 (Tex.1987).

The function of a summary judgment is not to deprive a litigant of its right to a full hearing on the merits of any real issue of fact but to eliminate patently unmeritorious claims and untenable defenses. Dallas Cent. Appraisal Dist. v. G.T.E. Directories Corp., 905 S.W.2d 318, 319 (Tex.App.—Dallas 1995, writ denied). The purpose of the summary judgment rule is not to provide either a trial by deposition or a trial by affidavit, but to provide a method of summarily terminating a case when it clearly appears that only a question of law is involved and that no genuine issue of material fact remains. Id. at 320.

In a legal malpractice case, the plaintiff must prove a duty owed to him by the defendant, a breach of that duty, injury proximately caused by the breach and damages. Peeler v. Hughes & Luce, 909 S.W.2d 494, 496 (Tex.1995). A lawyer in Texas is held to the standard of care which would be exercised by a reasonably prudent attorney, based on the information the attorney has at the time of the alleged act of negligence. Dyer v. Shafer, Gilliland, Davis, McCollum & Ashley, Inc., 779 S.W.2d 474, 477 (Tex.App.—El Paso 1989, writ denied) (citing Cosgrove v. Grimes, 774 S.W.2d 662 (Tex.1989)); Cook v. Irion, 409 S.W.2d 475, 477 (Tex.Civ.App.—San Antonio 1966, no writ). To prevail in a legal malpractice action, a plaintiff must prove “a suit within a suit” by demonstrating that he would have prevailed in the *187 underlying action but for his attorney’s negligence. Mackie v. McKenzie, 900 S.W.2d 445, 449 (Tex.App.—Texarkana 1995, writ denied). Although proximate cause in a legal malpractice action is usually a question of fact, it may be determined as a matter of law if the circumstances are such that reasonable minds could not arrive at a different conclusion. Id. If the attorney demonstrates that his failure to act was not the cause of any damages to the client, a summary judgment may be proper.

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Bluebook (online)
939 S.W.2d 183, 1996 WL 499470, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schlager-v-clements-texapp-1996.