Lead Opinion
delivered the opinion of the Court,
This case concerns the scope of attorneys’ immunity from civil liability to non-clients. Following the trial court’s entry of a divorce decree, one of the divorce litigants sued opposing counsel for fraud and related claims in connection with the law firm’s alleged preparation of a document to effectuate the transfer of personal property awarded to its client in the decree. Specifically, the litigant alleged that the document contained misrepresentations and that the firm structured the property’s transfer in a manner that shifted certain tax liabilities to the litigant in contravention of the decree. The law firm moved for summary judgment, arguing that it was immune from liability to a non-client for conduct within the scope of representation of its client in the divorce proceedings. The trial court granted the motion, but the court of appeals reversed, holding that the firm’s alleged conduct was unrelated to the divorce litigation and that the firm had not conclusively established its entitlement to immunity. We hold that the firm established its affirmative defense of attorney immunity as a matter of law and therefore reverse the court of appeals’ judgment.
I. Background
Philip Byrd and Nancy Simenstad commenced divorce proceedings in 2006. Si-menstad was represented in the divorce proceedings by Vick, Carney & Smith, LLP, and then by Cantey Hanger, LLP. The divorce proceedings were highly contentious, but in August 2008 the parties settled, resulting in the trial court’s entry of an agreed divorce decree.
The decree awarded Simenstad three aircraft as her separate property, including a Piper Seminole that had been owned by Lucy Leasing Co., LLC, a company the decree awarded to Byrd. The decree also made Simenstad responsible for all ad va-lorem taxes, liens, and assessments on the aircraft. Finally, the decree ordered the parties to “execute with[in] ten days from the entry of this decree any documents necessary to effectuate the transfers contemplated herein, which shall include ... documents necessary to transfer ownership of airplanes and the like.” The “attorney for the non-signing party” was ordered to “draft the documents necessary to effectuate the transfers contemplated [in the decree].” The record does not reflect, and no party asserts, that any transfer documents regarding the Piper Seminole at issue were executed within the time frame specified in the decree.
Byrd, Lucy Leasing, and PGB Air, Inc. (another company awarded to Byrd in the decree) sued Simenstad and Cantey Hanger,
Cantey Hanger moved for summary judgment on attorney-immunity grounds, arguing that it owed no duty to Byrd or the other plaintiffs and that as a matter of law it was not liable to the plaintiffs for actions taken in the course and scope of its representation of Simenstad in the divorce proceeding.
The plaintiffs responded that Cantey Hanger’s .conduct — “[cjonspiring with and aiding a client to falsify documents [and] evade tax liability” — was “wrongful,” was not “part of the discharge of [Cantey Hanger’s] duties in representing [its] client,” and thus was not protected by attorney immunity. They argued more broadly that the claims against Cantey Hanger “should be permitted because they involve fraudulent conduct.” In an affidavit submitted as an exhibit to the response, Byrd testified that he had never received documents from Cantey Hanger to sign in order to effectuate the transfer of the Piper Seminole from Lucy Leasing to Simenstad, that he discovered the plane had been transferred directly to 'a third party, that Simenstad had signed the bill of sale as manager of Lucy Leasing even though he was the sole manager, that the plane was still registered to Lucy Leasing, and that the transaction made Lucy Leasing responsible for the sales tax.
The trial court granted Cantey Hanger’s summary-judgment motion and dismissed all claims against it with prejudice. The court of appeals reversed as to the fraud, aiding-and-abetting, and conspiracy claims relating to the sale of the plane.
II. Standard of Review
We review a grant of summary judgment de novo. State v. Ninety Thousand Two Hundred Thirty-Five Dollars & No Cents in U.S. Currency ($90,235),
III. Attorney Immunity
Texas common law is well settled that an attorney does not owe a professional duty of care to third parties who are damaged by the attorney’s negligent representation of a client. Barcelo v. Elliott,
In accordance with this purpose, there is consensus among the courts of appeals that, as a general rule, attorneys are immune from civil liability to non-clients “for actions taken in connection with representing a client in litigation.” Alpert v. Crain, Caton & James, P.C.,
Conversely, attorneys are not protected from liability to non-clients for their actions when they do not qualify as “the kind of conduct in which an attorney engages when discharging his duties to his client.” Dixon Fin. Servs.,
In this case, the parties dispute whether Cantey Hanger has conclusively proven that its alleged conduct with respect to the sale of the plane was part of the discharge of its duties in representing Simenstad in
We think the latter view is consistent with the nature and purpose of .the attorney-immunity defense. An attorney is given latitude to “pursue legal rights that he deems necessary and proper” precisely to avoid the inevitable conflict that would arise if he were “forced constantly to balance his own potential exposure against his client’s best interest.” Alpert,
Moreover, characterizing fraudulent conduct as an “exception” to the attorney-immunity defense brings unnecessary confusion and complexity to the analysis. In this case, for example, the
IV. Application
Cantey Hanger is entitled to summary judgment on its immunity defense if it conclusively established that its alleged conduct was within the scope of its legal representation of Simenstad in the divorce proceedings. We hold that it did. The relevant allegations in Byrd’s petition may be summarized as follows: (1) the divorce decree awarded Simenstad the aircraft at issue and assigned responsibility for the plane’s ad valorem taxes, liens, and assessments to Simenstad; (2) the decree directed Simenstad’s attorneys to prepare necessary documents to effectuate the plane’s transfer from Lucy Leasing to Simenstad; (3) Cantey Hanger assisted Simenstad in executing a bill of sale of the plane from Lucy Leasing directly to a third party;
Indeed, the court of appeals stated, and we agree, that “Cantey Hanger’s preparation of a bill of sale to facilitate transfer of an airplane awarded to its client in an agreed divorce decree was conduct in which an attorney engages to discharge his duties to his client” and was not “foreign to the duties of an attorney.”
We note that the court of appeals remanded the plaintiffs’ fraud claims against Simenstad to the trial court. To the extent Lucy Leasing is determined to be
V. Conclusion
Cantey Hanger has conclusively established that it is immune from civil liability to the plaintiffs and that the trial court’s grant of summary judgment was proper. Accordingly, we reverse that portion of the court of appeals’ judgment relating to the fraud, aiding-and-abetting, and conspiracy claims against Cantey Hanger and reinstate the trial court’s judgment.
Notes
. Byrd also sued Vick Carney, but the trial court granted summary judgment in Vick Carney’s favor, and Byrd did not seek review of that order.
. With respect to Cantey Hanger, the plaintiffs also alleged various other acts of misconduct and asserted claims of defamation, unfair debt collection practices, and intentional infliction of emotional distress. The trial court dismissed those claims on summary judgment, Byrd did not appeal the dismissal of the defamation and debt-collection claims, and the court of appeals affirmed the dismissal of the emotional-distress claim. Accordingly, those claims are no longer at issue. Id. at 776, 782.
. Cantey Hanger did not file a no-evidence summary-judgment motion.
. One of the attorneys also stated that Can-tey Hanger sought postjudgment remedies on Simenstad’s behalf in the divorce and represented Simenstad in Byrd's bankruptcy proceedings, but those proceedings appear unrelated to the alleged conduct at issue.
. The bill of sale at issue is not in the summary-judgment record. The plaintiffs attached it as an exhibit to their response, but the trial court struck it as not properly authenticated, and that order was not appealed.
. The majority of Texas cases addressing attorney immunity arise in the litigation context. But that is not universally the case. In Campbell v. Mortgage Electronic Registration Systems, Inc., for example, the court of appeals held that attorneys hired to assist a mortgage beneficiary in the nonjudicial foreclosure of real property were immune from the borrowers' suit for wrongful foreclosure. No. 03-11-00429-CV,
. In McCamish, we held that an attorney can be liable to a non-client for negligent misrepresentation where “an independent duty to the nonclient [arises] based on the [attorney’s] manifest awareness of the nonclient’s reliance on the misrepresentation and the [attorney's] intention that the nonclient so rely.”
. We noted in Chu that fraud claims "against an opposing attorney in litigation” generally are not actionable because "reliance in those circumstances” is not justifiable.
. The dissent in the court of appeals opined that “once Cantey Hanger established as a matter of law that its conduct was within the course of its representation of its client in the underlying divorce litigation against Byrd, it established its affirmative defense of immunity as a matter of law and ... the burden shifted to Byrd to plead and present evidence raising a fact issue regarding the fraud exception.”
. The nature of Cantey Hanger’s alleged participation in the sale of the plane and the evidence supporting it are unclear. Again, however, any shortfalls in the evidence supporting the plaintiffs' claims are not before us.
. To the extent the court of appeals concludes that the parties were no longer adversarial, apparently merely because the divorce decree had already been entered, we disagree. As noted above, the parties engaged in post-judgment enforcement proceedings relating to other aspects of the decree, compliance with which continued to be a source of disagreement. Indeed, at the time the bill of sale was executed, Cantey Hanger was well past the ten-day deadline to prepare the transfer documents. Byrd could have filed a motion to enforce or for sanctions at any point, but chose not to.
. The dissent references the judicial-proceedings privilege as support for its conclusion that attorney immunity does not apply to Cantey Hanger's alleged conduct. Post at 492. That privilege insulates "[cjommunica-tions in the due course of a judicial proceeding” or in "serious contemplation” of such a proceeding from defamation claims. James v. Brown,
. The court of appeals held that the plaintiffs' claims against Simenstad “are not enforcement claims for which the divorce court has exclusive, continuing jurisdiction.”
Dissenting Opinion
joined by Chief Justice Hecht, Justice Johnson, and Justice Willett, dissenting.
The Court holds that Cantey Hanger conclusively established its affirmative defense of attorney immunity because its alleged conduct occurred within the scope of its representation of Simenstad in the divorce proceeding.
The circumstances in which lawyers may be subject to civil liability to nonclients are wide and varied. See, e.g., Restatement (Third) of the Law Governing Lawyers § 56 (2000) (“[A] lawyer is subject to liability to a client or nonclient when a nonlaw-yer would be in similar circumstances.”). To ensure that attorneys may practice their profession effectively and zealously advocate for their clients without subjecting themselves to claims from nonclients, rules have developed to protect certain attorney conduct from civil liability. To fully understand these rules and the effect of the Court’s opinion on them, it is important to review the development of the attorney immunity doctrine.
In Texas, the attorney immunity doctrine, as it-applies to litigation or other related proceedings, has developed under two closely related legal theories.
Nearly thirty years before Kruegel, this Court adopted the Texas Commission of Appeals’ opinion in Poole v. Houston & T.C. Railway Co.,
The opinion in Kruegel was authored against this backdrop. In Kruegel, the plaintiff sued a law firm for “conspiracy,
A comparison of Kruegel and Poole is critical to understanding the context in which litigation immunity applies. In both cases, the attorney or law firm allegedly engaged in conduct that would be actionable without attorney immunity. The only meaningful distinction between the outcomes is the context in which that conduct occurred. In Kruegel, the conduct occurred in litigation, while in Poole the conduct occurred outside of any litigation. In my view, the only way to reconcile these cases and give meaning to the purpose behind attorney immunity is to require the defendant-attorney’s conduct to have occurred in litigation.
Despite clearly announcing litigation immunity’s existence, the court in Kruegel did little to define its scope and this Court has not, until today, readdressed the issue. The court's of appeals, however, have agreed with my view of Kruegel and Poole and generally require the attorney’s conduct to have occurred in litigation for litigation immunity to apply. See, e.g., Renfroe,
The policy reasons behind litigation immunity compel the conclusion that, to be entitled to litigation immunity, the defendant-attorney’s conduct must have occurred in litigation. One of the most well-known maxims of the legal profession is that attorneys must zealously advocate for their clients. See Bd. of Law Exam’rs v. Stevens,
The Court recognizes that this form of attorney immunity traditionally applies in the litigation context and purportedly requires Cantey Hanger’s alleged conduct to have occurred in the divorce proceeding.
The outcome of this case is dictated by its procedural posture. This case comes to the Court on review of the trial court’s grant of Cantey Hanger’s motion for traditional summary judgment on its affirmative defense of attorney immunity. The Court correctly states that a party moving for traditional summary judgment has the burden to conclusively prove its affirmative defense, and that reviewing courts “take as true all evidence favorable to the nonmovant, and ... indulge-every reasonable inference and resolve any doubts in the nonmovant’s favor.”
Cantey Hanger supported its motion with the affidavits of two of its attorneys who swore that Cantey Hanger 'was “retained1 to represent Ms. Simenstad in her divorce proceeding,” including pursuing post-judgment remedies and claims against Byrd’s estate in bankruptcy, and that all of its actions “were made in the course and scope of representing Ms. Si-menstad.” Cantey Hanger also included the divorce decree in the summary judgment record. The divorce decree awarded Simenstad three aircraft, made Simen-stad responsible for the ad valorem taxes, liens, or assessments associated with the aircraft, and required Simenstad’s. attorneys — by then Cantey Hanger — to prepare any documents necessary to effectuate the transfer of the airplanes within ten days of its entry.
In response to the motion for summary judgment, the plaintiffs submitted an affidavit in which Byrd swore that Simenstad had never been an owner, officer, manager, or director of Lucy Leasing or PGB Air. He also swore that “Cantey Hanger was to draft the documents to effectuate the transfer of the airplane for me to sign on behalf of Lucy Leasing,” and that “Si-menstad sold one of the airplanes that was awarded to her in the Divorce Decree” over one year after the entry of the divorce decree. Further, Byrd swore that Simenstad signed the bill of sale as a “manager” of Lucy Leasing, which made Lucy Leasing liable for the sales tax incurred by the transaction.
This summary judgment evidence is lacking. The divorce decree was a final judgment that terminated the underlying divorce litigation, see Lehmann v. Har-Con Corp.,
Viewing this evidence in the light most favorable to and indulging every reasonable inference in favor of the plaintiffs, I cannot conclude, as the Court does, that Cantey Hanger conclusively established that its alleged conduct occurred in litigation. Rather, the summary judgment evidence allows for the reasonable inference that Cantey Hanger’s drafting of the bill of sale, if it occurred as the plaintiffs allege, constituted participation in a fraudulent business scheme that took place well after the divorce litigation ended. I therefore conclude that this case is similar to Poole, under which the Court held that an attorney was not immune for his involvement in a fraudulent business scheme that arose out of an arguably adversarial relationship between a seller and an insolvent buyer.
The Court holds that attorney immunity shields Cantey Hanger from liability arising from its alleged drafting of the bill of sale more than a year after entry of the divorce decree. Instead of limiting this form of attorney immunity to the context of litigation, the Court’s cursory analysis implicitly adopts a test in which attorneys are shielded from civil liability to non-clients if their conduct merely occurs in the scope of client representation or in the discharge. of duties to the client. This holding enlarges the scope of litigation immunity in a manner that does not comport with its purpose and protects attorneys from liability for conduct involving a transaction foreign to the plaintiffs and the divorce court and outside the context of litigation. This test is not supported by Poole or Kniegel, is contrary to every published court of appeals opinion on the subject, and has been flatly reject by the Restatement. See Restatement (Third) of the Law Governing Lawyers §§ 56 cmt. c, 57 (2000).
Moreover, the Court’s holding that Can-tey Hanger’s alleged conduct is not actionable creates a troubling jurisdictional dichotomy on remand. On one hand, the court of appeals’ holding that the plaintiffs’ fraud claims against Simenstad for “conspiring] with Cantey Hanger to falsify an airplane bill of sale ... are not claims attempting to enforce the terms of the decree” and are therefore not within the continuing, exclusive jurisdiction of the divorce court,
For its alleged conduct to be protected by attorney immunity, Cantey Hanger must have conclusively established that its alleged conduct occurred in litigation. I would hold that Cantey Hanger did not meet its summary judgment burden and, on this record, the attorney immunity doctrine provides Cantey Hanger no protection from the plaintiffs’ fraud, conspiracy, and aiding and abetting claims stemming from the allegedly falsified bill of sale. I would affirm the court of appeals’ judgment.
. There are additional legal theories that preclude liability for an attorney’s otherwise actionable conduct. For example, the rule of privity generally prevents third parties from suing an attorney for legal malpractice in any context. See McCamish, Martin, Brown & Loeffler v. F.E. Appling Interests,
. I agree with the Court's holding that there is no “fraud exception” to litigation immunity. The immunity either applies because the defendant-attorney’s conduct occurred in litigation, or it does not apply at all.
. The Court also suggests that this form of attorney immunity applies outside of the litigation context.
. Because of my view of the evidence, I need not address whether or to what extent such post-judgment actions might extend the litigation.
. In my view, it is nonsensical to hold that Cantey Hanger met its summary judgment burden to establish that its conduct occurred in litigation based on the plaintiffs' response to Cantey Hanger’s motion for summary judgment and the attached affidavit alleging tax consequences as a result of the alleged conduct. Cantey Hanger's motion and evidence did not mention taxes or assert any such connection to the divorce litigation.
.The Court faults this approach, arguing that it improperly focuses on whether the conduct was meritorious. See
. I note that this Court has previously recognized attorney immunity based on the judicial proceedings privilege only for defamation claims, a claim not brought in this case. However, several other jurisdictions have extended the application of their judicial proceedings privilege to both statements and conduct. See, e.g., Echevarria, McCalla, Raymer, Barrett & Frappier v. Cole,
; As it relates to attorneys, the judicial proceedings privilege "is based upon a public policy of securing to attorneys as officers of the court the utmost freedom in their efforts to secure justice for their clients.” Restatement (Second) of Torts § 586 cmt. a (1977).
. Texas has not adopted sections 56 or 57 of the Restatement of the Law Governing Lawyers, but the substance of those provisions is consistent with Chu, Kruegel, and Poole. See Chu,
