Vision Up, LLC v. Tamri Longabaugh, on Behalf of the Estate of Longabaugh

CourtCourt of Appeals of Texas
DecidedDecember 16, 2021
Docket14-19-00942-CV
StatusPublished

This text of Vision Up, LLC v. Tamri Longabaugh, on Behalf of the Estate of Longabaugh (Vision Up, LLC v. Tamri Longabaugh, on Behalf of the Estate of Longabaugh) 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
Vision Up, LLC v. Tamri Longabaugh, on Behalf of the Estate of Longabaugh, (Tex. Ct. App. 2021).

Opinion

Affirmed and Memorandum Opinion filed December 16, 2021.

In The

Fourteenth Court of Appeals

NO. 14-19-00942-CV

VISION UP, LLC, Appellant

V. TAMRI LONGABAUGH, ON BEHALF OF THE ESTATE OF LONGABAUGH, Appellee

On Appeal from the 506th Judicial District Court Waller County, Texas Trial Court Cause No. 13-12-22278-A

MEMORANDUM OPINION

Vision Up, LLC appeals from the trial court’s grant of summary judgment favoring appellee Tamri Longabough, on behalf of the Estate of Marvin Longabaugh. Vision Up sued Marvin, its former lawyer who is now deceased, for legal malpractice. The trial court granted summary judgment based on settlement agreements and releases signed by the two members of Vision Up. On appeal, Vision Up principally contends that the releases signed by the members did not release Vision Up’s claims. We affirm.

Background1

According to Vision Up, when Randy Hughes and Broc Spedale decided to open a restaurant in the Navasota area, Hughes hired Marvin Longabaugh to prepare and file a certificate of formation with the Texas Secretary of State for Vision Up, which was to operate the restaurant.2 The certificate listed Hughes and Spedale as the company’s only two members or governing persons. Immediately afterwards, Hughes and Spedale appeared to reach an irreconcilable conflict, and Hughes informed Longabaugh that Spedale no longer wished to be a part of the business. Longabaugh then filed an amended certificate of formation, removing Spedale as a governing person. Subsequently, Spedale sued Hughes, alleging in the alternative either that he had been wrongfully removed as a governing person of Vision Up or he remained a member despite the filing of the amended certificate.

Further according to Vision Up, allegedly based on Longabaugh’s advice, Hughes refused to admit either that Spedale had been wrongfully removed or that he remained a member. Spedale then amended his petition to include Vision Up as a defendant. Longabaugh filed answers on behalf of both Hughes and Vision Up. When Spedale objected to Longabaugh’s dual representation, other counsel took over Vision Up’s defense. Spedale then amended his petition again to add Longabaugh himself as a defendant and to assert a claim against Longabaugh purportedly on behalf of Vision Up.

1 The background information is taken largely from Vision Up’s appellate brief and pleadings in the court below. Vision Up acknowledges that its existence has been forfeited by operation of the Texas Tax Code but states it is bringing this existing claim under chapter 11 of the Business Organizations Code. 2 For ease of reference, we will refer to both Marvin Longabaugh and Tamri Longabough, on behalf of the Estate of Marvin Longabaugh, interchangeably as “Longabaugh” in this opinion.

2 At Longabaugh’s request, the trial court severed the claims against him from the claims Spedale alleged against Hughes and Vision Up. After Longabaugh’s death in 2017, his wife Tamri filed a suggestion of death and appeared on behalf of the estate.

Although it is not entirely clear on this record what happened in the original case after the severance, it appears that at some point, the trial court entered a declaration that Spedale was still a member of Vision Up. According to Vision Up, Spedale’s claims against Hughes then proceeded to a jury trial, and after the jury found Spedale had not been damaged, the trial court rendered a take-nothing judgment favoring Hughes. During the pendency of an appeal, the parties reached a settlement, pursuant to which Hughes signed a settlement agreement and release, relinquishing claims against Longabaugh for both himself and Vision Up. Spedale also signed a settlement agreement and release, relinquishing claims against Longabaugh for both himself and Vision Up.

After the settlement but before Spedale dismissed his claims against Longabaugh as a result of the settlement, Vision Up intervened in the severed lawsuit against Longabaugh, asserting malpractice. Longabaugh filed a traditional motion for summary judgment in which he relied on and attached the settlement agreements and releases signed by Hughes and Spedale on behalf of both themselves and Vision Up. Vision Up filed a response to which it attached two declarations by Hughes in which he averred that the trial judge in the underlying lawsuit had ordered him to pay $30,000 of Spedale’s attorney’s fees. Hughes further stated that to settle Spedale’s claims against him, Hughes also agreed to settle any malpractice claims he may have against Longabaugh and Longabaugh’s malpractice insurance carrier agreed to make a payment directly to Spedale on Hughes’ behalf. Hughes says that no one ever discussed with him that the

3 settlement would include Vision Up’s potential malpractice claims against Longabaugh and he had no intention of releasing those claims for Vision Up. He also asserts that Vision Up received no consideration either for the release he signed or the release Spedale signed and Vision Up did not authorize Hughes, Spedale, or anyone else to release any claims. As will be discussed below, Hughes’s statements in the declarations directly conflict with statements in the settlement agreements and releases that he and Spedale signed. The trial court rendered a final, appealable summary judgment disposing of all claims against Longabaugh.

Discussion

Vision Up raises two issues, arguing that (1) Spedale did not have standing to sue Longabaugh on Vision Up’s behalf, and (2) the trial court erred in granting summary judgment based on the releases. We will begin by addressing Vision Up’s second issue before turning briefly to its first issue.

I. Summary Judgment

In its second issue, Vision Up contends that the trial court erred in granting summary judgment favoring Longabaugh because the releases attached to Longabaugh’s motion were not effective to release claims owned by Vision Up. We will first set out the law governing our review. We will then discuss the contents of the settlement agreements and releases before turning to an analysis of Vision Up’s specific arguments.

A. Governing Law

Summary judgments. In a traditional motion for summary judgment, if the movant’s motion and summary-judgment evidence facially establish its right to judgment as a matter of law, the burden shifts to the nonmovant to raise a genuine,

4 material fact issue sufficient to defeat summary judgment. See M.D. Anderson Hosp. & Tumor Inst. v. Willrich, 28 S.W.3d 22, 23 (Tex. 2000). In our de novo review of a trial court’s summary judgment, we consider all the evidence in the light most favorable to the nonmovant, crediting evidence favorable to the nonmovant if reasonable jurors could, and disregarding contrary evidence unless reasonable jurors could not. Mack Trucks, Inc. v. Tamez, 206 S.W.3d 572, 582 (Tex. 2006). The evidence raises a genuine issue of fact if reasonable and fair-minded jurors could differ in their conclusions in light of all the summary-judgment evidence. Goodyear Tire & Rubber Co. v. Mayes, 236 S.W.3d 754, 755 (Tex. 2007).

Contract construction. A release is a contract and therefore subject to the same rules of construction as any other contract. Williams v. Glash, 789 S.W.2d 261, 264 (Tex. 1990). Both the question of ambiguity and the interpretation of an unambiguous contract are questions of law we review de novo. URI, Inc. v. Kleberg Cty., 543 S.W.3d 755, 763 (Tex. 2018).

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Vision Up, LLC v. Tamri Longabaugh, on Behalf of the Estate of Longabaugh, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vision-up-llc-v-tamri-longabaugh-on-behalf-of-the-estate-of-longabaugh-texapp-2021.