James David Horton and Jeffrey Horton v. Kimberly A. Stovall Individually, and Stovall & Associates, P.C.
05-14-01477-CV
Tex. App.Dec 4, 2015Background
- James Horton was injured by a defective kitchen cabinet; he retained attorney Kimberly Stovall on a contingency-fee basis in June 2008.
- An initial fee agreement (signed June 2008) purportedly provided for a 33 1/3% fee; a later agreement (January 2009) provided 50% if resolved after a jury verdict.
- Stovall tried the case; a jury awarded $13.556 million. The parties later settled with the manufacturer for over $8 million in January 2012.
- James and his son Jeffrey signed the settlement, a Rule 11 agreement, and an agreed court order directing disbursement consistent with the 50% fee; James later located the 33 1/3% contract at his house.
- James sued Stovall for fraud, breach of fiduciary duty, DTPA violations, unjust enrichment, and emotional distress, alleging Stovall fabricated the 50% agreement.
- The trial court granted appellees’ traditional summary judgment based on ratification; the court of appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether summary judgment evidence was admissible | Horton: appellees produced no admissible affidavit or authenticated docs to support summary judgment | Stovall: submitted affidavit, depositions, settlement, Rule 11, and disbursement order as proper evidence | Court: most exhibits were proper; deposition excerpts and self‑authenticating documents are admissible; affidavit present; issue overruled |
| Whether plaintiff needed proof of appellees’ fraud to defeat summary judgment | Horton: Stovall must admit fraud or disputed fact remains | Stovall: admission of fraud not required; ratification is dispositive | Court: fraud admission irrelevant where ratification established; held for appellees |
| Whether plaintiffs raised a fact issue on ratification | Horton: he misplaced original 33 1/3% contract and only found it after signing settlement; Jeffrey denied ever agreeing to 50% | Stovall: signing settlement, Rule 11, and approved disbursement order—knowing the disbursement—constituted ratification | Court: signing and approving settlement/disbursement consistent with 50% fee constituted ratification; plaintiffs’ affidavits did not create a genuine issue |
| Whether ratification bars later fraud challenge | Horton: ratification invalid because induced by fraud | Stovall: post‑fraud conduct recognizing the agreement as binding waives fraud claim | Court: ratification principle applies; ratified agreement cannot later be avoided; summary judgment affirmed |
Key Cases Cited
- Merriman v. XTO Energy, Inc., 407 S.W.3d 244 (Tex. 2013) (standard of review for summary judgment)
- Friendswood Dev. Co. v. McDade & Co., 926 S.W.2d 280 (Tex. 1996) (movant must disprove at least one element of each claim or establish affirmative defense)
- McConathy v. McConathy, 869 S.W.2d 341 (Tex. 1994) (deposition excerpts need not be authenticated for summary judgment)
- United Blood Servs. v. Longoria, 938 S.W.2d 29 (Tex. 1997) (no difference between standards for summary judgment evidence and trial evidence regarding self‑authenticating documents)
- Diversicare Gen. Partner, Inc. v. Rubio, 185 S.W.3d 842 (Tex. 2005) (summary judgment review requires resolving doubts in nonmovant’s favor)
- Bob Montgomery Chevrolet, Inc. v. Dent Zone Co., 409 S.W.3d 181 (Tex. App.—Dallas 2013) (definition of ratification)
- Cordero v. Tenet Healthcare Corp., 226 S.W.3d 747 (Tex. App.—Dallas 2007) (party induced by fraud who later recognizes the agreement waives fraud defense)
- Rosenbaum v. Texas Bldg. & Mort. Co., 167 S.W.2d 506 (Tex. 1943) (ratification doctrine explained)
