Shamoun & Norman, LLP v. Yarto International Group, LP

398 S.W.3d 272, 2012 WL 1951047, 2012 Tex. App. LEXIS 4384
CourtCourt of Appeals of Texas
DecidedMay 31, 2012
Docket13-11-00087-CV, 13-11-00256-CV, 13-11-00281-CV
StatusPublished
Cited by38 cases

This text of 398 S.W.3d 272 (Shamoun & Norman, LLP v. Yarto International Group, LP) 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
Shamoun & Norman, LLP v. Yarto International Group, LP, 398 S.W.3d 272, 2012 WL 1951047, 2012 Tex. App. LEXIS 4384 (Tex. Ct. App. 2012).

Opinion

OPINION ON REHEARING

Memorandum Opinion on Rehearing by

Justice GARZA.

We grant in part and deny in part the motion for rehearing filed by appellants/re-lators Shamoun & Norman, LLP, Gregory Shamoun and Brian Norman (collectively “Shamoun”), vacate and withdraw our previous memorandum opinion and judgment dated January 19, 2012, and issue the following in its place.

By two interlocutory appeals and a petition for writ of mandamus, Shamoun challenges (1) the trial court’s order imposing an anti-suit injunction, and (2) its orders denying two motions to transfer venue. We will deny the petition for writ of mandamus, reverse the trial court’s judgment granting the anti-suit injunction, affirm the trial court’s denial of the motions to transfer venue, and remand for further proceedings.

I. Background

Shamoun, a law firm based in Dallas County, was sued by appellee/real party in interest Robert Yarto on April 28, 2010 in Hidalgo County. Yarto asserted claims of professional negligence, breach of fiduciary duty, and theft of trade secrets. Yarto’s petition, which requested damages and in-junctive relief, alleged that Shamoun represented Yarto on several prior occasions but is “currently representing parties adverse to [Yarto] on matters similar to those for which [it] had previously represented [Yarto].” Yarto further alleged that Shamoun “illegally obtained confidential financial documents and/or trade secrets belonging to [Yarto].” According to the petition, Shamoun breached its fiduciary duty to Yarto by (1) “represent[ing] parties adverse to [Yarto],” (2) “disclosing] confidential communications” to those adverse parties during a 2010 mediation in Travis County, and (3) “us[ing] illegally obtained documents to [Yarto]’s detriment.” The petition also named Rho-derick Williams and Steven Winkler as defendants. 1

*278 On April 29, 2010, Shamoun answered Yarto’s suit and filed a motion to transfer venue. The answer contained a general denial of Yarto’s allegations and asserted various affirmative defenses. The motion to transfer asserted that Dallas County or Collin County was a proper venue for the litigation, and Hidalgo County was improper, because: (1) the alleged tortious acts and omissions occurred in Dallas and/or Collin Counties; (2) Shamoun maintains its principal place of business in those counties; and (3) witnesses, documents, and evidence related to the case are located in those counties.

The next day, Yarto’s suit was removed to bankruptcy court. The debtor in the bankruptcy proceedings was YITC-GP, LLC (“YITC-GP”), a corporation set up to serve as general partner of Yarto International Trading Group, L.P. (“YITC”). YITC and YITC-GP, as well as two other entities, appellees/real parties in interest Yarto International Group, L.P. (“YIG”), and YIG-GP, LLC (“YIG-GP”), were founded by Yarto but later came to be owned and operated by Williams and Winkler. 2 At the time the bankruptcy proceedings commenced, YIG, YITC, Williams and Winkler were all represented by Shamoun in various lawsuits involving Yarto and multiple third parties. All of those pending cases, along with Yarto’s suit against Shamoun, were removed to bankruptcy court on April 30, 2010. See 28 U.S.C. § 1334(b) (stating that federal district courts have “original but not exclusive jurisdiction of all civil proceedings ... arising in or related to cases under” the federal bankruptcy code); id. § 1452(a) (providing for removal to bankruptcy court of claims related to bankruptcy cases).

Eventually, the parties agreed to settle their outstanding claims in exchange for mutual releases. A global settlement agreement, drafted by Shamoun at the direction of the parties, was executed on December 9, 2010. As part of the agreement, YIG agreed to transfer certain assets to YITC; Williams and Winkler agreed to transfer ownership of YIG to Yarto; and YITC pledged to pay more than $1.5 million in settlement payments to various parties. 3 The agreement further provided that: (1) YITC would release Yarto from any and all claims related to the pending litigation; and (2) Yarto would release YITC, along with its “past and present agents, representatives, officers, directors and attorneys,” including Wink-ler and Williams, from any and all claims related to the pending litigation, with one notable exception:

15. Shamoun Litigation. Nothing in this Agreement shall be construed as a release of Shamoun by Yarto. The Parties hereby acknowledge and agree that, with respect to any claim, lawsuit, complaint or proceeding (whether judicial or otherwise) brought by any of the Yarto Parties [i.e., Yarto and YIG] ... against Shamoun and/or any of its partners or affiliates (in each case, a “Shamoun Claim”), (a) such Shamoun Claim shall be brought in an appropriate state court located in Travis County, Texas, and (b) none of the Yarto Parties ... shall be permitted to bring a Shamoun Claim in any court not located in Travis County, Texas. The parties hereby acknowl *279 edge[] and agree that (y) Shamoun is and shall be considered a third-party beneficiary[ 4 ] with respect ... to [this] Agreement, and (z) Shamoun shall have the right to directly enforce this provision ... on Shamoun’s own behalf.

The agreement stated that, upon execution of the settlement documents, Yarto’s suit against Shamoun would be remanded from bankruptcy court to state district court. 5 The settlement agreement also contained the following paragraph:

27. SUBMISSION TO JURISDICTION. THE PARTIES HEREBY AGREE THAT ANY AND ALL CLAIMS, ACTIONS, CAUSES OF ACTION, SUITS, AND PROCEEDINGS RELATING TO THIS AGREEMENT OR THE' OTHER AGREEMENTS CONTEMPLATED HEREIN SHALL BE FILED AND MAINTAINED ONLY IN AN APPROPRIATE STATE OR FEDERAL COURT IN TRAVIS COUNTY, TEXAS, AND THE PARTIES HEREBY CONSENT TO THE JURISDICTION OF SUCH COURT.

On December 1, 2010, after the settlement agreement had been negotiated but prior to its execution, Shamoun sent a letter to Williams and Winkler addressing Shamoun’s status theretofore as counsel of record for YIG. The letter stated:

Prior to the settlement, this firm provided services to the so-called YITC Parties which, at the beginning, included [YIG]. Pursuant to the Settlement Agreement, [YIG is] transferring certain assets to the YITC parties and ownership of [YIG] will be transferred solely to the so-called “Yarto Parties” side of the litigation. This letter is to confirm and clarify that, this firm provided services only to the YITC Parties. With •respect to the Settlement Documents which provide that [YIG] will be transferred to the Yarto Parties, this firm has not represented [YIG]. [YIG] further acknowledge[s] that [it was] promptly made aware of this issue and [was] advised of [its] right to retain separate counsel to advise [it] regarding the YIG Settlement Documents and this letter.

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Cite This Page — Counsel Stack

Bluebook (online)
398 S.W.3d 272, 2012 WL 1951047, 2012 Tex. App. LEXIS 4384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shamoun-norman-llp-v-yarto-international-group-lp-texapp-2012.