Tate v. Goins, Underkofler, Crawford & Langdon

24 S.W.3d 627, 2000 Tex. App. LEXIS 5093, 2000 WL 1048488
CourtCourt of Appeals of Texas
DecidedJuly 31, 2000
Docket05-96-01097-CV
StatusPublished
Cited by33 cases

This text of 24 S.W.3d 627 (Tate v. Goins, Underkofler, Crawford & Langdon) 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
Tate v. Goins, Underkofler, Crawford & Langdon, 24 S.W.3d 627, 2000 Tex. App. LEXIS 5093, 2000 WL 1048488 (Tex. Ct. App. 2000).

Opinion

OPINION ON REHEARING

Opinion by

Justice JAMES.

This Court granted appellant Stacy Tate’s motion for rehearing and heard oral argument. Having withdrawn our previous opinion of August 31, 1998, we substitute this opinion in its place.

In this case we must decide whether the trial court properly granted summary judgment for appellees, Goins, Underko-fler, Crawford & Langdon, John J. Sheedy and Richard E. Schellhammer (collectively “Goins”), on Tate’s legal malpractice cause of action. We conclude, based on the facts of this case, that although the assignment of the legal malpractice claim by Tate was invalid, summary judgment was improper and Tate may prosecute his claim against Goins. We reverse the trial court’s judgment and remand this case to the trial court for further proceedings in accordance with this opinion.

This case has had an extended history before the Court. Appeal was perfected in July, 1996 and briefs were filed in October of that year, making the case ripe for submission. On March 25, 1998, the case was submitted after oral argument was heard by this panel. Our opinion affirming the trial court’s summary judgment was issued August 31, 1998. Appellant filed a motion for rehearing on September 15, 1998 which remained pending until February 11, 2000. On that date we granted the motion for rehearing, withdrew our opinion and vacated our judgment of August 31, 1998. We suggested the parties rebrief the issues in the case, specifically issues addressed in the Texas Supreme Court’s recent opinion in Mallios v. Baker, 11 S.W.3d 157 (Tex.2000). 1 We *630 set the case for hearing on March 9, 2000. Following oral argument on that date before the original panel, the case was again submitted for our decision which follows.

The Underlying Claim '

Tate retained Goins to file a collection suit in Tarrant County against SIDCO International Distribution Corporation of Texas, d/b/a South Texas Sales (SIDCO). After Goins filed the Tarrant County action, SIDCO filed a damages claim in Bex-ar County. Goins represented Tate in the Bexar County matter as well. According to appellee John Sheedy, one of the attorneys assigned to Tate’s case, he prepared a plea in abatement to be filed in Bexar County, but it was never verified or filed. Sheedy maintains he tried to contact Tate on several occasions to obtain Tate’s verification of the plea, but Tate contends he never received any communication from Goins regarding the verification.

No answer was filed on behalf of Tate in the Bexar County lawsuit. Sheedy maintains SIDCO’s counsel agreed to an extension of time to file an answer, but SIDCO changed counsel and its new attorney did not honor the agreed-upon extension of time. Instead, SIDCO’s new attorney sought and obtained a default judgment against Tate in the amount of $233,166.66. Goins filed a motion for new trial on Tate’s behalf which was denied by the trial court. Tate obtained new counsel who filed a motion to reconsider the motion for new trial. Before the trial court ruled on this motion, Tate and SIDCO entered into a settlement agreement.

Under the terms of the settlement agreement, Tate agreed to terminate the Tarrant County action and SIDCO agreed not to execute on the judgment in exchange for Tate’s agreement to assign a portion of the proceeds of his malpractice suit against Goins to SIDCO. In the agreement, Tate and his company are called “TATES,” SIDCO is called “SID-COT,” the law firm and attorneys are called “SSGOINS,” and the law firm, alone, is referred to as “GOINS.” In pertinent part, the parties agreed to the following:

6. TATES agree to prosecute, fully cooperate and diligently pursue any and all claims against GOINS as directed by SIDCOT; SIDCOT having without limitation the rights to direct the litigation, negotiate and settle any and all claims between the parties. SIDCOT agrees to consult with TATES regarding any such action but reserves all rights of final decision. Should SIDCOT, in its sole discretion determine that its best interest [sic] are served by an assignment, TATES agree that upon demand they will assign, transfer, set over and deliver to SIDCOT all claims, demands, and causes of action of whatsoever kind and nature which TATES have against GOINS, or any other person or persons, and in each and any of them, whether jointly or severally arising out of the relationship between TATES and GOINS. All costs of litigation are to be advanced by SIDCOT. TATES shall not be responsible for any costs of litigation, attorney’s fees or other expenses associated with the prosecution of the case of GOINS.
7. SIDCOT hereby agrees and covenants that it shall not attempt to collect, levy, execute, garnish or effectuate any other collection process, including abstract of JUDGMENT against' any assets, or property, of any kind, character or description, of TATES, with the sole exception of those rights and causes of action belonging to TATES against GOINS.
[[Image here]]
9. Gross Recovery (GR) shall mean the total amount collected of, from, or *631 through GOINS before all attorney’s fees, court cost and litigation expenses related to the prosecution of GOINS are deducted. Adjusted Gross Recovery (AGR) shall mean the GR after payment of all cost of prosecution and attorney’s fees. TATES shall only receive from the AGR (a) credit for outstanding legal fees owed SSGOINS, if any; and (b) the outstanding balance on the original contract between TATES and SIDCOT.
10. Net Recovery (NR) shall mean that AGR amount received from GOINS less those amounts payable to TATES or for TATES’ benefit pursuant to Paragraph 9, less all attorney’s fees, court cost and litigation expenses actually incurred by SID-COT in Cause No. 92-CI-03173 in Bexar County and in Cause No. 153-139808-92 in Tarrant County. TATES shall receive Ten Percent (10%) of the NR of the first Two Hundred Fifty Thousand Dollars ($250,000.00) or THREE THOUSAND TWO HUNDRED FIFTY DOLLARS ($3,250.00), whichever is greater, and Fifty Percent (50%) of any amount in excess of Two Hundred Fifty Thousand Dollars ($250,000.00), but in no event shall TATE receive a total amount in excess of SEVENTY FIVE THOUSAND DOLLARS ($75,-000.00) from the GR.
[[Image here]]
13. The parties upon the conclusion of the litigations against GOINS as contemplated herein shall execute mutual releases.

The agreement does not contain a sever-ability clause.

On October 25, 1994, Tate filed suit against Goins alleging legal malpractice stemming from the representation in the Bexar County suit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Beavor v. Tomsheck
2022 NV 71 (Nevada Supreme Court, 2022)
Elness Swenson Graham Architects, Inc. v. RLJ II-C Austin Air, LP
520 S.W.3d 145 (Court of Appeals of Texas, 2017)
Ghidoni v. Skeins
510 S.W.3d 707 (Court of Appeals of Texas, 2016)
Lake v. Cravens
488 S.W.3d 867 (Court of Appeals of Texas, 2016)
Sanders v. Flanders
564 F. App'x 742 (Fourth Circuit, 2014)
Revolutionary Concepts, Inc. v. Clements Walker PLLC
744 S.E.2d 130 (Court of Appeals of North Carolina, 2013)
Billelo v. Techline Services, L.P.
372 S.W.3d 232 (Court of Appeals of Texas, 2012)
Davis v. Scott
320 S.W.3d 87 (Kentucky Supreme Court, 2010)
Edens Technologies, LLC v. Kile Goekjian Reed & McManus, PLLC
675 F. Supp. 2d 75 (District of Columbia, 2009)
Crown Asset Management, L.L.C. v. Loring
294 S.W.3d 841 (Court of Appeals of Texas, 2009)
Plunkett v. Connecticut General Life Insurance Co.
285 S.W.3d 106 (Court of Appeals of Texas, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
24 S.W.3d 627, 2000 Tex. App. LEXIS 5093, 2000 WL 1048488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tate-v-goins-underkofler-crawford-langdon-texapp-2000.