Shannon Lang v. Mathew Knowles and Music World Properties, LLC A/K/A MW Properties, LLC

CourtCourt of Appeals of Texas
DecidedAugust 29, 2019
Docket01-18-00268-CV
StatusPublished

This text of Shannon Lang v. Mathew Knowles and Music World Properties, LLC A/K/A MW Properties, LLC (Shannon Lang v. Mathew Knowles and Music World Properties, LLC A/K/A MW Properties, LLC) 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
Shannon Lang v. Mathew Knowles and Music World Properties, LLC A/K/A MW Properties, LLC, (Tex. Ct. App. 2019).

Opinion

Opinion issued August 29, 2019

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-18-00268-CV ——————————— SHANNON LANG, Appellant V. MATHEW KNOWLES AND MUSIC WORLD PROPERTIES, LLC A/K/A MW PROPERTIES, LLC, Appellees

On Appeal from the 157th District Court Harris County, Texas Trial Court Case No. 2017-20160

MEMORANDUM OPINION

In this interlocutory appeal,1 appellant, Shannon Lang, challenges the trial

court’s denial, in part, of her motion to dismiss the counter- and cross-claims of

1 See TEX. CIV. PRAC. & REM. CODE ANN. § 27.008. appellees, Matthew Knowles (“Knowles”) and Music World Properties, LLC, also

known as MW Properties, LLC (“Music World”), pursuant to the Texas Citizens

Participation Act (“TCPA”).2 In her sole issue, Lang contends that the trial court

erred in partially denying her motion to dismiss.

We affirm.

Background

In its original petition, Lang Ferrer, PLLC (the “Law Firm”) alleged that it

entered into a written contract to provide legal representation to Knowles and Music

World pursuant to which they agreed to pay the Law Firm for the legal services it

provided. The Law Firm alleged that, despite it having “fully performed all

conditions, covenants and promises” to Knowles and Music World, Knowles and

Music World had “not paid for the legal services they received” in the amount of

$49,120.35.

The Law Firm brought claims against Knowles and Music World for breach

of contract, suit on account, fraud, fraudulent inducement, unjust enrichment,

quantum meruit, promissory estoppel, and for violations of the Texas Uniform

Fraudulent Transfer Act3 and the Texas Theft Liability Act.4 The Law Firm sought

2 See id. 3 See TEX. BUS. & COM. CODE ANN. §§ 24.001–.013. 4 See TEX. CIV. PRAC. & REM. CODE ANN. §§ 134.001–.005.

2 “actual damages in an amount no less than” $49,120.35, “[p]unitive damages as

allowed by law,” “[a]n award of . . . reasonable and necessary attorney’s fees,”

“costs of suit,” “[p]re- and post-judgment interest,” and “[s]uch other and further

relief, at law or in equity, to which [i]t may be justly entitled.” The petition was

signed by Justin W. R. Renshaw as “Counsel for Plaintiff, [the Law Firm].”

The Law Firm attached to its petition, and incorporated by reference, a

demand letter sent on its behalf by its attorney to Knowles and Music World

“threatening to sue” (the “Demand Letter”). The Demand Letter provides, in part,

as follows:

We represent [the Law Firm] with respect to the referenced matter. This letter is notice of [the Law Firm’s] claim and attempt to resolve this matter without litigation.

On November 2, 2016, you executed a written contract with [the Law Firm]. Under the terms of the contract [the Law Firm] promised to provide you and Music World . . . legal representation and you promised to pay for these services. A copy of the contract is attached for your ready reference.

....

It has come to our attention that you are hosting a silent auction this Super Bowl weekend in Houston, which includes music memorabilia and other items from your management of your daughter, Beyoncé [Knowles-Carter], the group Destiny’s Child etc. Presumably you are liquidating these items to pay debts, including the amount due to [the Law Firm]. To the extent you may be disposing of these and other assets to avoid your debts and legal obligations, however, we will consider the sale of such items to be fraudulent transfers and will seek all available remedies for same in the event [the Law Firm’s] invoices are not paid as demanded. 3 Knowles and Music World filed their First Amended Answer, Counterclaim

and Cross Claim, generally denying the allegations and asserting “specific and

affirmative denials/defenses.” Additionally, Knowles and Music World brought

counterclaims against the Law Firm and cross-claims against “Shannon Lang,

individually, and Ada Ferrer, individually,” as attorneys who worked for the Law

Firm. They alleged that, “[b]ecause both Lang and Ferrer, individually[,] were the

attorneys in the [Law Firm] that represented” Knowles and Music World, Lang and

Ferrer were subject “to personal legal liability for the misconduct and . . . negligence

[that] they performed.”

More specifically, Knowles and Music World brought claims, jointly against

the Law Firm, Lang, and Ferrer, for unfair debt collection practices, legal

malpractice,5 breach of fiduciary duty and the duties of loyalty and truthfulness, and

breach of contract. Knowles and Music World also provided notice to the Law Firm,

Lang, and Ferrer that “they intend[ed]” to seek damages for the “false and

defamatory claim that . . . Knowles sold at auction memorabilia of Destiny’s Child

5 The legal malpractice claim is not at issue on appeal. Lang asserts that she did not seek dismissal for the cross-claim for legal malpractice because it was “tailored to” the representation of Knowles and Music World by the Law Firm, Lang, and Ferrer in previous the Fun Fest matter as opposed to the claims brought by the Law Firm in the instant case. 4 and of his famous daughter to avoid paying his creditors” pursuant to “Rule 13 and

Chapter 10, Tex. Civ. Prac. Rem. Code.”

With respect to their unfair-debt-collection-practices claim, Knowles and

Music World alleged that, in connection with their “efforts to collect inflated legal

invoices,” the Law Firm, Lang, and Ferrer “engaged in flagrantly false and

defamatory debt collection practices without any legal or factual justification.” The

false and defamatory practices alleged included the Law Firm, Lang, and Ferrer

“falsely publish[ing] the claim[s] in th[e] lawsuit, as well as in a letter prior to filing

suit, that . . . Knowles sold at auction memorabilia of Destiny’s Child and/or his

famous daughter Beyoncé [Knowles-Carter] to fraudulently avoid paying his

creditors.” Knowles and Music World alleged that the claim was “a complete lie

that was used by” the Law Firm, Lang, and Ferrer “without any factual support and

in direct violation of the . . . [Texas Unfair] Debt Collection Practices Act[], as well

as Rule 13[ of the Texas Rules of Civil Procedure], and Chapter 10” of the Texas

Civil Practices and Remedies Code.

With respect to their legal-malpractice claim, Knowles and Music World

alleged that the Law Firm, Lang, and Ferrer “engaged in legal negligence and did

not perform the reasonable [and] necessary legal research before recommending”

that Knowles and Music World “enter into a settlement” in a previous matter “that

would have advantaged and/or exonerated” them “in negotiating the settlement with

5 the parties.” They further allege that the Law Firm, Lang, and Ferrer also “breached”

their “confidential information by allowing non-clients to participate in conflicting

and private settlement negotiations,” failed to reasonably advise them “before

recommending [that] they accept and be bound by the settlement agreement in” the

previous matter, and that “the settlement created personal liabilities for . . . Knowles,

individually, that should not have been recommended by” the Law Firm, Lang, and

Ferrer.

With respect to their claim for breach of fiduciary duty and of the duties of

loyalty and truthfulness, Knowles and Music World alleged that The Law Firm,

Lang, and Ferrer breached their fiduciary duty and their duties of loyalty and

“commitment to truthfulness” to Knowles and Music World “in both the prior

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Shannon Lang v. Mathew Knowles and Music World Properties, LLC A/K/A MW Properties, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shannon-lang-v-mathew-knowles-and-music-world-properties-llc-aka-mw-texapp-2019.