John E. Deaton and Deaton Law Firm, L.L.C. v. Barry Johnson, Steven M. Johnson and Law Offices of Steven M. Johnson
05-16-01221-CV
Tex. App.—WacoJul 14, 2017Background
- Patton (Louisiana) signed an attorney-representation agreement with the Law Offices of Steven M. Johnson (JLF) for Kugel Mesh litigation; the agreement stated Texas law applied, obligations were performable in Tarrant County, and disputes were subject to binding arbitration in Fort Worth.
- JLF handled hundreds of Kugel Mesh cases; it retained John Deaton (Rhode Island) as local counsel for some Rhode Island filings and later signed a referral agreement with him in 2012.
- Disputes arose during settlement negotiations; JLF prepared settlement/fund documents, and Deaton refused to sign; he later asserted a $1,000,000 lien and litigated in Rhode Island to obtain settlement information.
- Deaton signed (April 12, 2016) a stipulation acknowledging he was associated counsel under the JLF attorney-representation agreements and that those agreements were protected by privilege; he added a handwritten clarification: “not employed by the Deaton Law Firm.”
- JLF sued Deaton in Texas county court seeking declaratory relief and to compel arbitration, alleging breaches, tortious interference, fraud, and fiduciary breaches; Deaton filed a special appearance asserting lack of Texas personal jurisdiction (Rhode Island resident, not Texas-licensed, insufficient contacts).
- The trial court denied Deaton’s special appearance; the court of appeals affirmed, holding Deaton consented to Texas jurisdiction by acting as associate counsel under the agreements and by signing the non‑disclosure stipulation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Deaton consented to Texas jurisdiction via the stipulation/forum-selection clause | JLF: Deaton was associate counsel under agreements that select Texas law/Tarrant County and arbitration in Fort Worth; signing the stipulation reaffirmed that status and bound him to the forum terms | Deaton: He was not a signatory to Patton’s JLF agreement; stipulation did not show knowing consent to Texas jurisdiction and he lacks sufficient Texas contacts | Held: Deaton consented to jurisdiction; his role as associate counsel and the stipulation bound him to the forum-selection terms — special appearance denied and judgment affirmed |
| Whether the stipulation constituted "knowing" consent to jurisdiction | JLF: Stipulation confirmed Deaton’s status and his recognition of the JLF agreements | Deaton: The stipulation (and his handwritten clarification) did not amount to knowing waiver of jurisdictional protections | Held: Court found the stipulation, combined with his conduct as associate counsel, constituted knowing consent |
| Whether Deaton is bound by the forum-selection clause in the JLF–Patton agreement | JLF: Associate‑counsel clause in representation agreement authorized referral and binds associates to agreement terms | Deaton: He claims independent referral contracts with JLF and was not a direct signatory to Patton’s agreement | Held: Deaton was associate counsel under the agreement and therefore bound by its forum-selection provisions |
| Whether trial court had jurisdiction over JLF’s claims against Deaton (minimum contacts/fair play) | JLF: Forum-selection/consent obviates full minimum-contacts analysis | Deaton: Even if considered, his contacts with Texas were insufficient and jurisdiction would offend fair play | Held: Because Deaton consented via the agreement/stipulation, the court didn’t need to reach a full minimum-contacts due‑process analysis and jurisdiction was proper |
Key Cases Cited
- BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789 (Tex. 2002) (plaintiff bears initial burden to plead facts supporting personal jurisdiction; burden then shifts to nonresident)
- Moncrief Oil Int’l, Inc. v. OAO Gazprom, 414 S.W.3d 142 (Tex. 2013) (personal jurisdiction is a question of law; implied findings in absence of findings)
- Baker Hughes Inc. v. Brooks, 405 S.W.3d 246 (Tex. App.—Houston [14th Dist.] 2013) (standard of review for special appearance when material facts undisputed)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985) (freely negotiated forum-selection clauses do not offend due process if reasonable)
- Alattar v. Kay Holdings, Inc., 485 S.W.3d 113 (Tex. App.—Houston [14th Dist.] 2016) (consent to jurisdiction clause in a signed contract can constitute waiver of personal jurisdiction defenses)
