Thomas A. Dardas, Individually and D/B/A Dardas & Associates and Bill Ogletree, P.C., A/K/A Ogletree Law Firm v. Fleming, Hovenkamp & Grayson, P.C., Fleming Law Firm, PLLC, and Fleming & Associates, L.L.P

Court of Appeals of Texas·Decided April 27, 2006·No. 14-03-00538-CV·Published

Opinion

Further Motion for Rehearing Overruled; Affirmed in Part, Reversed and Remanded in Part; Memorandum Opinion of August 18, 2005 Withdrawn and Majority and Dissenting Opinions on Rehearing filed April 27, 2006

Further Motion for Rehearing Overruled; Affirmed in Part, Reversed and Remanded in Part; Memorandum Opinion of August 18, 2005 Withdrawn and Majority and Dissenting Opinions on Rehearing filed April 27, 2006.

In The

Fourteenth Court of Appeals

____________

NO. 14-03-00538-CV

____________

THOMAS A. DARDAS, INDIVIDUALLY AND D/B/A DARDAS & ASSOCIATES AND BILL OGLETREE, P.C. A/K/A OGLETREE LAW FIRM, Appellants

V.

FLEMING, HOVENKAMP & GRAYSON, P.C., FLEMING LAW FIRM, PLLC, AND FLEMING & ASSOCIATES, L.L.P., Appellees

On Appeal from the 61st District Court

Harris County, Texas

Trial Court Cause No. 02-19156

  M A J O R I T Y  O P I N I O N  O N  R E H E A R I N G

We overrule AAppellees= Further Motion for Rehearing.@  We withdraw the opinion issued in this case on August 18, 2005, and we issue the following majority opinion on rehearing.


This appeal arises out of a dispute between two groups of attorneys as to entitlement to attorney=s fees in class-action litigation.  Appellants/plaintiffs Thomas A. Dardas, individually and d/b/a Dardas & Associates and Bill Ogletree, P.C. a/k/a Ogletree Law Firm appeal the trial court=s summary judgment dismissing their claims against appellees/defendants Fleming, Hovenkamp & Grayson, P.C., Fleming Law Firm, PLLC, and Fleming & Associates, L.L.P.  We affirm in part and reverse and remand in part. 

                        I.  Factual and Procedural Background

Thomas A. Dardas, individually and d/b/a Dardas & Associates (hereinafter ADardas@) is a Texas attorney who filed numerous lawsuits against insurance companies on behalf of policyholders who sought to recover diminished-value damages under their auto insurance policies.  The term Adiminished-value damages@ refers to a loss in the market value of a vehicle allegedly caused by market perceptions that a vehicle involved in an accident, though fully repaired, is worth less than the same vehicle that has never been damaged.  See American Mfrs. Mut. Ins. Co. v. Schaefer, 124 S.W.3d 154, 156 (Tex. 2003).  Although it is now clear that insureds cannot recover diminished-value damages under a Texas Standard Personal Auto Policy, this was not clear until October 17, 2003, when the Texas Supreme Court issued its opinion in Schaefer.  See id.  


In 1997, several years before Schaefer, Dardas decided that he wanted to assemble a legal team to pursue claims for the recovery of diminished-value damages on a class-action basis, and so he enlisted the assistance of Michael Sprain, who was then an attorney at Bill Ogletree, P.C., a/k/a Ogletree Law Firm (hereinafter AOgletree@).  In late 1997, Sprain contacted Debra Hayes, who was then an attorney at the Fleming Firm.[1]  Shortly thereafter, Dardas and Sprain met with Hayes.  Before disclosing to Hayes the idea of pursuing claims for diminished-value damages on a class-action basis, Dardas required Hayes, on behalf of the Fleming Firm, to sign a contract dated December 17, 1997 (the ADecember 1997 contract@), between Dardas and the Fleming Firm.  This handwritten contract reads, in its entirety, as follows:

This agreement is entered into by and between Fleming, Hovenkamp & Grayson and Thomas A. Dardas.  The purpose of this agreement is to define the relationship between Fleming, Hovenkamp & Grayson and Dardas.

Dardas hereby agrees to disclose to Fleming, Hovenkamp & Grayson a cause of action that Dardas believes is suitable for a class action.

Fleming [sic] Hovenkamp & Grayson hereby agrees to evaluate the cause of action for suitability as a class action.

This agreement is executed with the understanding that if the Law Firm of Fleming, Hovenkamp & Grayson decide [sic] not to pursue the cause of action on a class action basis with Dardas, Fleming, Hovenkamp & Grayson agree [sic] not to pursue dimunition [sic] in value cases for a period of two (2) years from the date of termination of this agreement.

After the Fleming Firm signed the December 1997 contract, Dardas and Sprain discussed with Hayes the idea of filing diminished-value claims on a class-action basis.  After evaluating this idea, the Fleming Firm agreed to pursue diminished-value claims on a class-action basis with Dardas and Ogletree.  The Fleming Firm, Dardas, and Ogletree then negotiated a contract among the three of them as to how they would proceed with these claims, and on January 12, 1998, all three parties signed a contract (the AJanuary 1998 contract@).  On February 3, 1998, the same three parties signed a slightly modified contract (the AFebruary 1998 contract@) which states that it supersedes A

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

Thomas A. Dardas, Individually and D/B/A Dardas & Associates and Bill Ogletree, P.C., A/K/A Ogletree Law Firm v. Fleming, Hovenkamp & Grayson, P.C., Fleming Law Firm, PLLC, and Fleming & Associates, L.L.P, (Tex. Ct. App. 2006).

Thomas A. Dardas, Individually and D/B/A Dardas & Associates and Bill Ogletree, P.C., A/K/A Ogletree Law Firm v. Fleming, Hovenkamp & Grayson, P.C., Fleming Law Firm, PLLC, and Fleming & Associates, L.L.P (Thomas A. Dardas, Individually and D/B/A Dardas & Associates and Bill Ogletree, P.C., A/K/A Ogletree Law Firm v. Fleming, Hovenkamp & Grayson, P.C., Fleming Law Firm, PLLC, and Fleming & Associates, L.L.P) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Landgraf v. USI Film Products
511 U.S. 244 (Supreme Court, 1994)
American Manufacturers Mutual Insurance Co. v. Schaefer
124 S.W.3d 154 (Texas Supreme Court, 2003)
Wright v. Sydow
173 S.W.3d 534 (Court of Appeals of Texas, 2004)
Primrose Operating Co., Inc. v. Jones
102 S.W.3d 188 (Court of Appeals of Texas, 2003)
Doctors Hospital 1997, L.P. v. Sambuca Houston, L.P.
154 S.W.3d 634 (Court of Appeals of Texas, 2005)
Baty v. ProTech Insurance Agency
63 S.W.3d 841 (Court of Appeals of Texas, 2002)
Jones v. Jones
888 S.W.2d 858 (Court of Appeals of Texas, 1994)
Coker v. Coker
650 S.W.2d 391 (Texas Supreme Court, 1983)
Subaru of America, Inc. v. David McDavid Nissan, Inc.
84 S.W.3d 212 (Texas Supreme Court, 2002)
Bencon Management & General Contracting, Inc. v. Boyer, Inc.
178 S.W.3d 198 (Court of Appeals of Texas, 2005)
Bond v. Crill
906 S.W.2d 103 (Court of Appeals of Texas, 1995)
Blair v. Fletcher
849 S.W.2d 344 (Texas Supreme Court, 1993)
Fortune Production Co. v. Conoco, Inc.
52 S.W.3d 671 (Texas Supreme Court, 2000)
Dolcefino v. Randolph
19 S.W.3d 906 (Court of Appeals of Texas, 2000)
Lenape Resources Corp. v. Tennessee Gas Pipeline Co.
925 S.W.2d 565 (Texas Supreme Court, 1996)
Carr v. Brasher
776 S.W.2d 567 (Texas Supreme Court, 1989)
Schlumberger Technology Corp. v. Swanson
959 S.W.2d 171 (Texas Supreme Court, 1997)
CU Lloyd's of Texas v. Feldman
977 S.W.2d 568 (Texas Supreme Court, 1998)
Johnson v. Brewer & Pritchard, P.C.
73 S.W.3d 193 (Texas Supreme Court, 2002)