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Kormanik v. Seghers
362 S.W.3d 679
Tex. App.
2012
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*1 679 74.351(b). Watkins, defendant.5 See In re Accordingly, we reverse the tri- (Tex.2009); S.W.3d 633-34 id. at 636- Lambi, al court’s order as to and remand (Willett, J., concurring). Though the to the trial court with instructions to dis- high yet court has not addressed this fact miss the claims against Lambi and award Rivenes, pattern, this court did so her attorney’s reasonable fees and costs of precedent by which we are bound. See 74.351(b). court under section Rivenes, 257 S.W.3d. at 340-41.

Therefore, we cannot follow cases from

other appeals contrary courts of to Ri See, Santillan, e.g., Scoresby

venes. v. 324 (Tex.App.-Fort Worth

2009, pet. granted) (concluding that “no

report” category Badiga only includes

instances in which purporting no document Ronald J. KORMANIK and Michael a report to be within served the Time Sydow, Appellants, D. Period). We follow this precedent. court’s v. reports

Because the three Claimant served are “no report” rather SEGHERS, Appellee. Victor Lambi, report than a deficient as to No. 14-09-00815-CV. court has appellate jurisdiction over Lam- appeal bi’s from the trial court’s denial of Texas, of Appeals Court her motion to Badiga, dismiss. See (14th Dist.). Houston 683-85; Rivenes, S.W.3d at S.W.3d. 339-41. reports Because the three are “no June 2011. Lambi, report” as to the trial court abused Supplemental Opinion on Overruling of

its discretion denying Lambi’s motion Rehearing Jan. 74.351(b). to dismiss under section Rivenes, 257 S.W.3d. at 339-41. Accord-

ingly, we appellate sustain the issue as to

Lambi.

III. Conclusion Thomas,

As to Dr. the Claimant served report deficient within the Time Period appellate therefore there is no juris- 51.014(a)(9).

diction under section For reason, Dr. ap- we dismiss Thomas’s

peal for jurisdiction. lack of As to Lambi’s

appeal, the three reports that the Claimant report”

served are “no rather than a defi- Therefore,

cient report. this court has

appellate jurisdiction, and we hold that the

trial court abused its discretion denying

Lambi’s motion to dismiss under section Santillan, Supreme sby

5. The may Court of Texas address which has been submitted in opinion this issue when it issues its in Score cause number 09-0497 in that court. *2 Houston, Akers, appellants. Brock C. Generes, Dallas, rates, A. David J. hourly billing Carl Wuko- discounted Houston, son, Kormanik, ers agreed pay appellee. as additional fees, proceeds sale, “2½% ANDERSON, Panel of Justices consists *3 rent, disposition lease or other of the Tikar FROST, and BROWN. owned, artwork now or to be acquired by through or [Seghers].” Seghers paid Kor- OPINION $25,000 retainer, manik the par- which the orally ties later FROST, agreed simply be a KEM THOMPSON Justice. flat fee. Two lawyers sued an African art aficion- a claiming pay ado breached contract to The Mbiam Lawsuit implementing them a flat fee for a market- September Kormanik filed suit ing plan for an Tikar art extensive collec- Mbiam, foreign national, a and oth- jury attorney- tion. The found that an er defendants in state a district court in relationship client between of existed one County, Bell Texas. The in defendants

the lawyers and the art aficionado at the the Mbiam suit removed the case feder- lawyer time of contract al court and moved to dismiss for lack of comply did fiduciary duty. with his personal jurisdiction. Before the federal jury damages did find to the issue, court jurisdictional ruled lawyer resulting other from this breach. parties reached a settlement which in On appeal, lawyers challenge the suffi- agreed Mbiam return the art in ex- ciency as of the evidence to these for a change full and final release findings. We affirm. by Seghers and all claims related to the Tikar art. The settlement agreement, Background I. Factual PROCEDURAL fully which on April executed Appellee/defendant a Seghers, Victor judgment followed a final dismiss- Belgian cardiologist, is an aficionado of ing Seghers’s with prejudice. claims art and culture of Tikar people Seghers, Cameroon. who had accumulat- Trip Cameroon art, ed a substantial collection of Tikar in Before settlement the Mbiam law- arrangements made with a contact finalized, Seghers suit was asked Korman- Cameroon, Mbiam, ship- Emmanuel ik accompany and others to him to Came- ment portion of a of the collection to Tex- get physical roon to control of the Tikar as, Seghers Seghers where lives. encoun- art proposed collection. Kormanik a flat significant expense tered difficulties and $25,000, plus expenses fee of estimated to process. gain When he was unable to $25,000. be an additional ulti- Seghers art, possession Seghers as- sought $50,000, mately agreed pay Kormanik sistance J. appellant/plaintiff from Ronald out came Kormanik’s fee and Kormanik, lawyer. Seghers a Texas met expenses. They trip made the and were with and consulted Kormanik in Texas obtaining physical possession successful explained problems he had encoun- of the art. tered. Conflicting Testimony as to what In July Seghers and Kormanik Happened after the an agreement entered into entitled “Con- Trip Cameroon Employment

tract of and Power of Attor- ney.” agreed pay Seghers presented conflicting Kormanik testimo- Witnesses $25,000. retainer agreed ny Kormanik as to transpired trial what after first fol- manik’s office. This was the Kormanik as trip. Cameroon Seghers Sydow, had met time lows: introduced (cid:127) attorney- that his Kormanik believed Seghers. name to educated relationship end- client Before Sydow about the Tikar art. part latter ed in the “somewhere 8, 2006, Kormanik received a of 2006.” Kormanik did not June $20,000. from On check terminating letter send date, already representation Kormanik’s $20,000 of Seghers’s money. ers. *4 (cid:127) Seghers’s sugges- next day, (cid:127) Cameroon, trip After their to Kor- tion, Texas Temple, the trio went to in willing participate manik was to After to look at the Tikar art there. art project make the Tikar helping art, looking at the the trio went successful. Temple. Seghers in Seghers’s house (cid:127) Kormanik had some discussions with and continued to educate Kormanik Seghers about the need market art, about Tikar the Tikar art collection. Kormanik gave Seghers them about six books Seghers then had discussions with study in they could the books so Sydow. Michael D. appellant about for- preparation project to move (cid:127) 8, July At least one month before ward. 2006, Seghers and his wife met with (cid:127) had that would be an idea it Kormanik in Houston to discuss if they better could interest celebri- ,Seghers’s desire to take further ac- try in the ties Tikar culture and tion against Mbiam. Kormanik ex- Seghers’s idea that convince them plained the that Seghers releases this art “is essential- going change signed had when the Mbiam lawsuit ly Sydow thought the world.” Seghers settled. Kormanik told be the value of the Tikar art could likely end,” a dead “was brought increased if celebrities Seghers not pursue did further ac- public. this art importance of to the tion Mbiam. (cid:127) 2006, 10, July Seghers, Korman- On (cid:127) Kormanik asked to send ik, again met in for hours $20,000. him Seghers was not Kor- They Kormanik’s Houston office. manik’s client when Kormanik re- plan four marketing discussed a 30, the June 2006 check for ceived phases. $20,000. $20,000 This was not sent (cid:127) I work, goal generate In Phase specifically for legal and Kor- among interest Tikar se- culture manik and “had come to what, They lected celebrities. discussed any- agreement about be process by they would [they] going thing, were to do.” identifying, contacting, educating Kormanik asked to send celebrities,” $20,000 the re- including “lead because Jackson, nowned Michael artist knew Kormanik did work for rep- family. the Jackson free going and Kormanik was to set in various resented Michael Jackson time to aside his visit with him about dealings. marketing plan. business (cid:127) (cid:127) Seghers, II, Sydow, publicity and Kormanik met In Phase there would be art, July regarding Houston on in Kor- the Tikar celebrity would seek going endorsements Kormanik was not to do legal work on specials marketing and television movie project, Sydow. Sy- nor was about the Tikar art. dow only to market art. (cid:127) negotiation Phase III would be acquisition the art. Sydow stated he had no knowledge ers was that the value convinced prior dealings Kormanik’s with Seghers. him project every- the whole after Sydow testified there meeting was a one else paid would be at least July of the minds on regarding million. $80 the marketing plan2 and that Seghers pay $350,000, flat fee to be (cid:127) Phase IV would involve the exhibi- evenly divided Sy- between Kormanik and tion of the Tikar art museums and dow. testified that Seghers paid traveling exhibits. $110,000 on July but Sydow did (cid:127) By meeting end of the being not recall aware pay- 10, 2006, Kormanik, Seghers, ment in July According to Sydow’s *5 Sydow meeting came to a 10, testimony, 2006, on July Sydow be- (1) Sydow minds that and Kormanik $110,000 lieved that Seghers paid had go would forward with the marketing pay $240,000 would the remaining (2) art; plan Seghers the Tikar $20,000. monthly Sydow installments pay would Sydow Kormanik and testified Sydow that Kormanik and would $350,000; (3) Sy- their pay expenses, own except Segh- that pay dow would own expenses, their pay ers would expenses their relating except Seghers pay that would their African Sydow academicians. expenses African relating to acade- that this agreement did not involve micians. The three men outlined the legal work that Seghers at all and express- a marketing plan on white board.1 ly acknowledged that neither Kormanik $20,000 They agreed that that Sydow nor performing any would be legal Seghers already paid Kormanik work. July would count pay- as the testified, Seghers among other as things, ment, Seghers would pay follows: $110,000 right and then away, pay

$20,000 (cid:127) paid each month until he had 30, Seghers gave Kormanik the June $350,000. a total of $20,000 2006 check for to investigate (cid:127) pursue against action Mbiam Seghers was excited and could not Tikar, (hereinafter, Inc. “Tikar

wait to get Seghers started. wrote a Foundation”), nonprofit a foundation $110,000 check for Kormanik by Seghers, established or to explore gave July it to him on 2006. options. different Seghers asked to include (cid:127) Sydow as a but payee, Seghers point did The of this action try not do so. Kormanik does not re- see if the million that Mbiam $2.8 seeing “attorney member the words had received from could be fees” on the memo line of the improve check. used to local infrastruc- photograph agreed 1. A board ket the that he this white was ad- Tikar art and to edu- into mitted evidence. cate certain about celebrities Tikar culture help rather than to sell this art. During parts testimony 2. some of his trial Sydow agreed testified that he never to mar- Sydow by Kormanik and rather than for Suit

ture in Cameroon against Seghers benefit. personal Mbiam’s ensued. Af- Shortly litigation thereafter (cid:127) Kormanik was Seghers stated procedural developments ter various attorney during the meet- Seghers’s parties appeal, are to this not relevant Segh- between ing July on below, in the trial court found themselves ers, Kormanik, Sydow. plain- as (cid:127) agreed that Though Seghers tiffs/counterdefendants, asserting breach- plan out- three men discussed against claims of-contract defendant/coun- on board Korman- lined the white terplaintiff Seghers. Seghers asserted defenses, counterclaim, office, denied that he ik’s and in various breach-of-fiduciary duty a any agreement asserted entered into Seghers alleged claim Kormanik. on kind with Kormanik engaged conspiracy in a Seghers denied that July duty. fiduciary breach Kormanik’s any deal with Korman- he had made to a found in jury, case was tried the Tikar art ik or to market pertinent part as follows: collection. (cid:127) Kormanik, Seghers, (cid:127) Seghers gave Kormanik check pay a agreed that fee on $350,000 in for the im- exchange “attorney fees” ers wrote marketing plan. plementation *6 check at time. memo line of the that (cid:127) attorney-client relationship exist- An Seghers and ed between Kormanik that, during Sydow the three agreement the time of the 10, 2006, Sydow days July began after to the and im- negotiations extended reading Seghers provid- that had materials agreement. plementation ed, research, and independent conducted (cid:127) that he com- Kormanik did show several of conversations with had hours fiduciary duty -withhis plied Jackson, Jackson, Randy and Michael ers. about some of Michael Jackson’s advisors (cid:127) dollars, cash, if now in paid Zero culture, theories, Seghers’s Tikar and the fairly reasonably compen- and would theories. significance these any, if damages, sate during eve- Kormanik testified that that resulted from the failure to com- ning Seghers talked to agreement. with the ply and told him that phone Kormanik (cid:127) $130,000, paid The sum of if now in they major judgment, had made a error cash, fairly reasonably and this,” Seghers did not “want to do and that Seghers for his dam- compensate Seghers any, proximately wanted the returned. that were ages, caused Kormanik’s breach fidu- Seghers sent an email to Kormanik the ciary duty. day, essentially saying next the same thing. Kormanik told that The trial court denied the motion for Kormanik made contacts and that judgment notwithstanding the verdict filed ready go getting California by Sydow. The trial court Kormanik marketing plan. and initiate Phase I of the judgment Kormanik rendered a final go wanted to nothing stated take and that $130,000 plus inter- prejudgment forward. recover Sy- trary est Kormanik. Kormanik and the overwhelming weight of the trial, clearly which the evidence as to be wrong unjust. dow filed a motion for new Co., trial Pool v. Ford court denied. Motor 715 S.W.2d (Tex.1986). jurors are the sole Presented II.Issues judges credibility of the witnesses weight and the given to be their testi- appeal present On mony. GTE Mobilnet v. S. Tex. Pas- first, they three In the issues. assert couet, 61 S.W.3d (Tex.App.- 615-16 legally is factually evidence insuffi- denied). Houston pet. [14th Dist.] cient to an support jury’s finding that mayWe judgment substitute our own attorney-client relationship be- existed for that of the jury, even if we would reach tween Kormanik and at the time a different answer on the evidence. Mari- of marketing agreement. In their sec- Ellis, time Corp. Overseas 971 S.W.2d issue, they ond assert that the is evidence (Tex.1998). 402, 407 The amount of evi- legally factually insufficient to support necessary dence to affirm judgment is jury’s finding regarding breach of fidu- than far less that necessary to reverse a issue, ciary duty. Under their third Kor- Pascouet, judgment. 61 S.W.3d at 616. manik and assert that the evidence legally support is jury’s insufficient to IV.Analysis damages question Sy- answer to the Attorney-Client dow’sbreach-of-contract Relationship claim. A. Be- tween Kormanik and of Review III.Standards issue, In their first Sy- reviewing legal When sufficiency argue dow legally the evidence is evidence, consider evidence factually to support jury’s insufficient light challenged most favorable to finding response Question 3 of the finding indulge every reasonable infer- jury charge, in which the was asked *7 support City ence that would it. Keller the relationship about nature of the be- (Tex.2005). Wilson, 802, v. 168 S.W.3d 823 Seghers. tween Kormanik and At the We must credit favorable evidence if rea- conference, charge no party asserted a jurors con- disregard sonable could and objection ques- valid to defect in this trary jurors evidence unless reasonable tion; therefore, sufficiency we measure the could not. id. See at 827. We must deter- evidence the the standard this mine whether the evidence at trial would question. See Tractebel Market- Energy people enable reasonable and fair-minded ing, v. E.I. Inc. Du Pont De Nemours & to at find the facts issue. See id. Jurors 929, Co., 118 932 S.W.3d (Tex.App.-Hous- judges are credibility the sole of witness denied). 2003, pet. ton The [14th Dist.] and the to weight give testimony. to jury attorney-client found that an relation- id. at 819. ship existed between Kormanik and the the agreement ers at time of reviewing challenge

When to the factu- negotiations imple- extended the evidence, al sufficiency we examine agreement. mentation of the The trial record, considering entire both the evi- court instructed the as follows: of, to, dence in contrary favor Bain, challenged finding. 709 attorney[-]client relationship Cain An is a (Tex.1986). whereby After consid- contractual an at- relationship evidence, ering weighing torney all set agrees to render professional finding only may aside the fact if it is relationship so con- services. The be ere- $20,000, him evidence con- byor the actions of to send by ated contract meeting reflecting emails that Kormanik re- must be tains parties. There $20,000 relationship as to determined on or June quested minds before upon objective an standard based 2006. Kormanik admitted that he did not did, not deter- parties Seghers any terminating said letter what send subjective state parties!’] representation mined legal Seghers. Korman- $20,000 of mind. ik claimed that the sent work, that Kor- specifically legal July Seghers and Kormanik Seghers manik and “had not come agreement estab- into a written entered what, if agreement anything, [they] about attorney-client relationship. lishing an going to do.” Kormanik also con- unambiguous language Under Seghers tended he asked to send him agreement, Seghers paid Korman- written $20,000 Seghers because knew Kormanik $25,000. contract ik a retainer of This did not work for free and Kormanik was provided, [Seghers] empowers “Client going to set aside his time to visit with ac- Attorney to take such said [Kormanik] Seghers marketing plan. about the may any legal tions and to file actions as $20,000 being did not recall aware of this Attorney’s judgment with be advisable Seghers Kormanik in payment from and to respect legal services rendered July 2006. Art regard rendered to the Tikar be with currently which is in Texas Collection July meeting began, Before the plain meaning Africa.” Under the Kormanik had cashed the June $25,000 agreement, retain- written is a $20,000. July meetings check for on replenished, er that must be July 2006 occurred Kormanik’s hour, per Seghers will bill even $250 Houston law office. testified that $25,000. billings these exceed 10, 2006, gave he Kormanik the $110,000, placed check for after Seghers he and “attorney the notation fees” on the check. orally agreed change agreement supports Segh- A document in evidence into a flat than a fee of rather testimony regard, ers’s in this and Kor- billings upon retainer and based the hours has manik no recollection as to whether he worked. Kormanik also testified that the notation on the when check orally agreed travel with it it. Seghers received and cashed stated paid to Cameroon and to be an *8 Seghers’s was $25,000 attorney that Kormanik additional flat fee of for his ser- 2006, 10, $25,000 during meeting on at- expenses. vices and another Kormanik, Sydow. by tended Seghers, in Feb- returning After from Cameroon 2006, ruary Seghers render that Kormanik gave Kormanik continued to testified legal Seghers regarding investigate services to the June 2006 check to April pursue against by Mbiam lawsuit. In the releas- Mbiam the Tikar action were a docu- According explore options. es executed. to Foundation or to different According re- prepared, Seghers, point ment Kormanik Kormanik to this relating try to viewed documents to the dismissal action see if the million $2.8 received be used Mbiam lawsuit June that Mbiam had could attorney-client improve that his local in Kormanik testified infrastructure Came- relationship Seghers personal “some- roon rather than for with ended Mbiam’s part Seghers argue where in the latter of June of 2006.” benefit. Kormanik in Seghers Seghers’ testimony regard Kormanik that he that this can- asked that, Kormanik, based on the Emails possibly according be true release re release, in Mbiam In this lated to the or negotiation implementation lawsuit. (1) Seghers he was the sole and the marketing plan stated that state that by claims in that sent acting exclusive owner of the case Kormanik on behalf of his and that had been assignment professional corporation. no made of Kormanik testi that, any any person, career, claims to fied portion of these for most he has (2) firm, corporation, personal lawyer, or released been a injury that he was Mbiam from all claims which not a any lawyer, business and that he knows any any nothing from marketing arose manner transaction about art. The jury by impliedly and Mbiam Seghers Seghers’s and between did not credit testimo regard ny to the But this that Tikar art. release there was agreement regarding no way in no from precludes acting marketing plan, Kormanik there were incon Seghers’s attorney investigation as sistencies and in Seghers’s contradictions of a potential against by testimony. Nonetheless, action Mbiam the the jury still exploration Tikar Foundation or free to parts Seghers’s credit the testi Further, options. presuming mony different showing attorney-client that an rela argument tionship sake of suit existed between Kormanik and against Tikar Foundation Mbiam would be during negotiation imple summary judgment dismissed on based on mentation of this agreement. As factfin- der, release, still could retain the jury an had the prerogative believe attorney another, investigate possibility of one witness and disbelieve to be filing such a parts lawsuit. lieve some of a testimony witnesses’s and disbelieve other and to parts, resolve face, On its the June 2006 check does in any inconsistencies witnesses’ testimo not indicate whether it comes from a Tikar ny. Duruji Duruji, WL from Seghers Foundation account or ac- 582282, at *5 (Tex.App.-Houston [14th count. Some evidence indicates that the (mem. 27, 2007, Feb. pet.) op.). Dist.] no June came from 2006 check a Tikar Foundation bank account.3 Other evi- The record contains evidence would dence, including testimony, Kormanik’s in- jurors allow reasonable conclude that dicates that came from Segh- this check there was a meeting of the minds between jury reasonably ers’s funds. The could Kormanik and based on what the have indicating credited the evidence parties said and did. There is evidence (1) Seghers’s came from funds. discussed a event, (2) Mbiam; even if the against concluded second action that these funds from a Tikar gave came Foun- Kormanik the June 2006 check to account, investigate dation would not pursue mean that action any attorney-client relationship relating to Mbiam the Tikar or to Foundation ex- (3) these funds have to be plore options; between different *9 $20,000, Kormanik and the Tikar Foundation. See asked to send Kormanik (4) $20,000 Healey, Roberts v. 991 S.W.2d 880-81 Kormanik the check cashed (5) 8, 2006; (Tex.App.-Houston July pet. Dist.] before and Kormanik [14th denied). cashed the check with the 2006 email, Seghers 3. In a June 2006 states “I check was drawn Tikar Foundation ac- on a today sent a check to Tikar Foundation fund Seghers gave count after the Foundation 20,000 you with send a instructions to payment to fund the of the check. US$ check.” This email indicates that the 688 the factually support it. evi- and insufficient to “attorney fees” on

notation an 4 regarding response Question conflicting jury’s finding dence is whether to be- attorney-client relationship existed the to Kormanik’s jury charge relating during the tween and Kormanik the compliance duty. his At fiduciary with of the negotiation implementation and conference, charge party no asserted the marketing agreement. judges As sole ques- to in this objection valid defect the credibility of the witnesses and tion; therefore, sufficiency we measure the testimony, to be their weight given to in this of the evidence the standard free jury was to make determination. question. Energy Tractebel Market- See Pascouet, at 61 S.W.3d 615-16. See Inc., ing, at In its answer 118 S.W.3d 932. Question 4, jury to found that Korman- in the Considering evidence complied ik did with his fidu- not show find light challenged most favorable to ciary court duty Seghers. to The trial ing, indulging every reasonable inference that, com- to show he instructed it, crediting favorable support fiduciary plied duty, his Kormanik with could, jurors and evidence reasonable following: had to each of establish disregarding contrary evidence unless rea not, jurors we conclude that sonable could pertaining a. to mar- The transaction the trial enable evidence would reasonable [Segh- fair and keting equitable n that an people and fair-minded find ers]; attorney-client relationship be existed b. use of made reasonable [Kormanik] response tween Kormanik and [Seghers] placed confidence Question jury charge. City 3 in the him; Keller, 823, 827; Bright at S.W.3d good c. acted in the utmost [Kormanik] (Tex. Addison, 596-97 S.W.3d scrupulous faith and exercised most denied) (concluding App.-Dallas pet. honesty [Seghers]; toward was legally factually evidence suffi placed d. the interests [Kormanik] attorney- support finding cient own, his use the [Seghers] before did not existed). Examining client relationship position gain any of his advantage record, considering the entire both the evi expense benefit for himself at of, to, contrary dence in favor himself in [Seghers], place and did challenged finding, considering any position where his self-interest evidence, all weighing conclude that might obligations conflict with as jury’s Question so answer to is not fiduciary; and contrary overwhelming weight clearly wrong the evidence as to be fully fairly e. disclosed [Kormanik] Pool, 635; unjust.4 See S.W.2d important [Seghers] all information to Bright, According at 596-97. the transaction. concerning ly, Sydow’s we overrule Kormanik and that, agree- under first issue. Seghers, Sydow ment would discuss with Fiduciary Duty B. Breach of Seghers’s theories about Tikar culture issue, Sydow’s art on the West

In their “clients second Seghers argue generate evidence Coast” to see if could legally that the is Sy- preserve presume, error. We for the sake contends *10 argument, in Kormanik and ade- preserve dow failed to error the trial court that so, regarding factual-sufficiency challenge. quately preserved complaint. this Even this Sydow argue complaint we that lacks merit. Kormanik and that did conclude this cess, Sy- the topics. According jury reasonably in these to interest could have found dow, the to that Kormanik failed generate prove idea was interest to that the clients, among pertaining these which dramati- transaction to marketing would was equitable fair and to or importance enhance the value of that Kor- cally placed Seghers’s manik Tikar art interests the collection. before Keck, obligation his own. See agree- that he had no under the Mahin & Cate v. Nat’l Co., Union Fire Ins. selling ment to assist in Tikar art S.W.3d (Tex.2000) (holding that firm Sydow’s to clients. testified that law not did as a of help Sydow prove agreement in his matter law it Kormanik was to efforts that negotiated of pay that was to each them with one its clients fair of was reasonable). dependent flat not applicable fee Under the review, the of the standards of upon amount hours worked or we conclude that the evidence is According Sy- legally factually of success the efforts. to sufficient dow, support jury’s finding Kormanik would do whatever that Korman- ik required him to do to assist in these did make the showing asked efforts. un- Question der See Accordingly, 4.5 id. going stated that Kormanik was (1) overrule Kormanik Seghers’s Sydow’s about second is- educate himself theo- (2) culture, sue. regarding ries Tikar in assist

identifying African who academicians Sydow’s C. Breach-of-Contract Sydow’s going meet with West Coast Damages (3) clients, interested, if these clients were issue, Under their third the academicians to prepare discuss Sydow argue that the legally evidence is Seghers’s Tikar culture and theories with insufficient to support jury’s answer (4) clients, up in setting these assist Question Sy- damages question for meetings receptions. against dow’s breach-of-contract claim evidence, upon Based trial the Seghers. party Because no asserted that, jury reasonably could have found un objection any valid in ques- defect this agreement, der the Korman- conference, tion the charge we measure ik, art, nothing marketing who knew about sufficiency of evidence $175,000in guaranteed would receive com in question. standard set forth this pensation, dependent on the amount Inc., Marketing, Energy Tractebel hours worked or success the efforts. at 932. The jury asked compensation “[wjhat Kormanik would receive this money, any, paid sum of if if now in assisting Sydow his efforts to cash, edu fairly reasonably in would com- Segh- cate West Coast clients about pensate [Sydow] damages, any, for his ers’s Tikar culture theories about and art comply that resulted from the failure to generate and to interest subject agreement?” with the The trial court in- lack speci with these clients. Given the only jury structed consider the ben- ficity as to what services Kormanik would efit-of-the-bargain of damages, measure any be lack providing, the minimum trial court defined as follows: number hours Kormanik needed to agreed price difference between the “[t]he work, any and the requirement [Sydow] lack and the cost have incurred fulfilling Kormanik achieve benchmark of marketing plan.” suc- event, presume, argument, challenge We sake of we conclude that this lacks Sydow adequately preserved merit. But, challenge. factual-sufficiency *11 690 (none).” context, in the it would have been position In this

answered “$0.00 an Data jury’s fully performed”); of the been interpretation contract proper the not Ini Sydow Foundry, Integration found did v. Silicon swer is that the Inc. (Tex. tiative, Inc., 2336464, that by a of evidence at *3 prove preponderance 2010 WL (mem. 11, 2010, the meas any damages under App.-Austin pet.) he sustained June no by the trial damages of submitted of applicable ure standards op.). Under Co., v. review, legally See Sterner Marathon Oil to court. the evidence is sufficient 686, (Tex.1989); & R. S.W.2d 690 C. that jury finding Sydow 767 a did support Campbell, 406 S.W.2d Transport, by Inc. a of the evidence prove preponderance (Tex.1966); v. Dumas Glass 194 Gant have had he the costs would incurred (Tex. Mirror, Inc., 209 plan. & to marketing able fulfill the been 1996, writ); fact, no Am. Recre App.-Amarillo no of the the record contains evidence Hawkins, Agency v. ational Markets Gen. amount of these costs. (Tex.App.-Houston 846 S.W.2d testimony The record contains that Kor- writ). 1993, no [14th Dist.] trip to Sydow planning manik and were a Sydow Sydow’s that to to some argue talk California art, Tikar both conclusively Sy- regarding that clients proves the evidence $220,000 agreed that damages Sydow were dow’s contract talking have liquidated pay would had to costs based the uncontroverted Sydow’s Pre relating agreement. visiting amounts to the to and clients.7 Under review, the evi- suming argument applicable sake of that standard to conclusively proved legally support that dence is sufficient evidence $350,000 Question finding a flat answer to its supposed pay jury’s fee of by agreement prove preponder- and that that did not under $130,000,6 any that he Seghers is entitled to credit of ance evidence sustained damages proof damages under the measure of not constitute conclusive 5. the trial court. See Data Sydow’s damages Question under Un submitted Inc., damages ques Foundry, that 2010 WL at *3 der the measure of in conclusively that (holding company tion the would have to subtract did not jury still benefit-of-the-bargain damages that prove from amount costs that fully not find per appropriately would have incurred had he that factfinder did any damages because did not agreement. company formed under the See Clear it City Auth. or losses Lake v. Friendswood offer evidence costs Water Co., having to (Tex.App. fully perform); Dev. avoided 344 S.W.3d h.) (stat Gant, (holding Houston no 935 S.W.2d at 209 that pet. [14th Dist.] jury’s finding, by its ing purpose supported of the beneflt-of- evidence “[t]he award, the-bargain damages plaintiff to re did not damages measure is zero party proving damages the economic meet its burden of injured store only he in- 6. Some at trial testified that costs evidence indicated days working in the he was on this curred few Sydow, supposed pay ers was phone charges long matter distance pay half who then would of this fee to Kor- testify calls to his clients. But did not suggests manik. Other evidence costs, and, these as to the amount of $175,000. supposed pay each man event, damages is the measure of in this case question payments The two were made bargain, benefit of the not reliance dam- only to Kormanik. Auth., ages. City See Clear Lake Water S.W.3d at 523. *12 Moreover, Background did question). Sydow because claim, recover can- on his contract he Kormanik and Sydow originally filed Chapter fees attorney’s not recover under against this suit appellee/defendant Victor of the Practice and Remedies Civil County in the Court at Law Num- Corp. See MBM Code.8 Fin. The Wood- ber One in Harris County. Seghers filed a Co., Operating lands motion to dismiss subject-mat- for lack of (Tex.2009). Accordingly, we overrule Kor- jurisdiction, ter arguing that county Sydow’s manik third issue.9 court at law jurisdiction lacked because the

matter in controversy $100,000, exceeded V. Conclusion interest, excluding statutory punitive or damages penalties, attorney’s fees legally The evidence is suf- factually costs, alleged as on the face of the jury’s to support findings ficient that petition. See Tex. Gov’t Code Ann. attorney-client an be- relationship existed 25.0003(c)(1), 25.1032(a) (West 2011). §§ tween Kormanik and at the time Sydow disagreed and ar- marketing agreement and that Kor- gued the county that at law court did not the showing required manik make subject-matter jurisdiction.1 complied that he prove his fiducia- duty. ry legally county is The evidence sufficient court at law transferred the support Sydow case to district jury’s finding that court. The case was initially pending prove by preponderance did a evi- the 189th District Court of Harris but County later dence that he sustained dam- contract transferred to the 190th District Court of we trial ages. Accordingly, affirm the County. trial, Harris a Following judgment. court’s presiding judge of the 190th District Court signed judgment a final that Kormanik and SUPPLEMENTAL OPINION Sydow nothing take re- $130,000 plus prejudgment cover interest FROST, KEM THOMPSON Justice. Kormanik. Kormanik and issue supplemental opinion We appealed the trial judgment court’s to this jurisdictional appel- address issue that submission, original court. On Kormanik lants Ronald J. Kormanik D. and Michael challenge jurisdic- did not Sydow have for the on raised first time court, tion of the trial did nor chal- rehearing. Concluding jurisdic- that this jurisdiction lenge the of this court. issue other tional and the issues brief, raised opening appellate their Kormanik merit, rehearing lack mo- overrule the procedural stated that “the his- for rehearing. tory complicated, tion case is of this rather but that, argues Seghers's 8. Kormanik court also 9. We need not and do not address issue, argument cannot recover on second he his sustains first or then agreement contract claim because agree- be should able to recover under the product fiduciary of Kormanik’s breach of ment. We have not sustained either issue duty. and, event, show could not conclusively proved dam- his contract juncture, At this ages for the same reasons in this discussed represented by different counsel than the section. represented counsel them at trial in the court appeal district and on this court. *13 court jurisdictional of the Texas ultimately pertinent to the issues on structure “has appeal.” is system unimaginably abstruse” ... Byzantine.” from elaborate gone After affirmed the trial court’s this court Mathew, 747, 753 178 See Sultan v. S.W.3d filed a judgment, (Tex.2005) (Hecht, J., by dissenting, joined for the first rehearing asserting motion for JJ.). Medina, Wainwright Various is void judgment time that the trial court’s of a subject-mat- provide court Texas transfer because the trial lacked statutes jurisdiction. ter Kormanik and from when case one trial court another argue court at law county now court in the case filed lacks subject-matter jurisdiction lacked over the See, subject-matter e.g., Tex. jurisdiction. petition that filed in that original they (West 2011) (pro § Prop.Code Ann. 21.002 at law county court. Because the court viding for of eminent-domain case transfer jurisdiction, Kor- subject-matter lacked at law county from a court district assert, county manik and court when an issue of court the case involves required and had to dismiss the case title); art. Proc. Ann. Tex.Code Crim. transfer case to the authority no (West 2009) for transfer (providing 21.26 Even the district though district court. criminal from court to an case district subject-matter juris- court would have if the district court lacks inferior court diction the case review the over under charged offense in the jurisdiction over the court, originally case had been filed in that court). The indictment filed in the district Sydow argue that the coun- governing the from the statute transfer ty purported subject- court lack of at law’s county court court in at law to district jurisdiction deprived matter the district requires that the case under review jurisdiction court of over the transferred subject-matter jurisdic have district court case, judgment making the district court’s over the does not tion transferred case but void. county at law have require court subject-matter the trans jurisdiction over Analysis of Jurisdictional Issue Ann. ferred case. Tex. Gov’t See Code county To determine whether the 74.121(b)(1) (West 2011); § The Cadle Co. subject-matter jurisdic at court law had 205, Bray, (Tex.App. v. S.W.3d 212-13 suit, tion we over this need to review the denied) 2008, pet. Houston [1st Dist.] allegations made (making substan same observation about in the original petition filed in tially language in Government similar county court. See Continental Coffee 74.121(a)). Supreme section The Code Cazarez, Prods. v.Co. 937 S.W.2d proper Court of Texas has indicated that Sanchez, (Tex.1996); Weidner v. transferring a civil case from one basis (Tex.App.-Houston 360-61 may court to be the lack of sub pet.). no We are unable another [14th Dist.] to review it original petition because is ject-matter jurisdiction the transferor Nonetheless, our appellate record. Employers’ Ass’n court. Texas presume, deciding, without that under (Tex. Cashion, 1112, 1113-14 130 S.W.2d original petition, county court at ref'd) (basing writ Civ.App.-Dallas subject-matter jurisdiction law lacked over holding upon from an intermedi statement case under review. transfer proper ate court that a reason for ring a case one trial court to another jus- from pointed As has out three been Texas, jurisdiction a lack of the transferor Supreme tices Court of “the is filed).2 Cashion, court in which the case was See dismiss the case. See 130 S.W.2d Co., 1113-14; Co., also The 264 S.W.3d at 212-13 Cadle at Cadle S.W.3d at properly that case was trans (concluding 212-13; Park, *2; 2009 WL ferred Government Code section under Owens, re 2008 WL at *1. Kor 74.121(a) lacking from trial court subject- manik and cite various cases in jurisdiction matter to trial court that had which courts state that a lacking court *14 subject-matter jurisdiction); Park v. West jurisdiction must dismiss the case. But Servs., Inc., ern 03- Union Financial No. these cases did not involve suits that were 08-00292-CV, *2 WL at lacking juris transferred from a trial court Oct.30, 2009, (Tex.App.-Austin pet.) no to a jurisdic diction trial court had jurisdiction that trial court had (concluding addition, In tion. the upon cases which case, though over even it was originally Sydow rely Kormanik and do not state subject-matter filed in a court that lacked lacking jurisdiction that a trial court can jurisdiction, because the case was trans not transfer the to a case trial court that ferred under Government Code section jurisdiction. any event, has In the Su 74.121(a) a court had subject-mat preme Court of Texas has quoted with jurisdiction) ter the (mem.op.). Though approval language equating a such trans judge county court at law may a trans fer with the dismissal the case and the fer a under case Texas Government Code a new filing of case the court that has 74.121(b)(1) section number of rea Cashion, jurisdiction. See 130 S.W.2d at sons, might one reason lack of subject- be Even county 1114. if the at court law matter jurisdiction over case in subject-matter jurisdiction lacked over this county subject-matter court law and case, judge of that court au jurisdiction over the case the district thority to transfer the case to the district Owens, court. In re No. See 06-08-00101- court under Government Code section CV, WL at *1 (Tex.App.- 74.121(b)(1). Tex. See Gov’t Ann. Code Sept.24, orig. proceeding) Texarkana 74.121(b)(1); Owens, § In re 2008 WL (denying prohibition writ of seeking pre county at *1. The court at law vent exercising jurisdic district court from power had the to transfer cases over tion over case transferred to district court jurisdiction, it lacked and the case under county from court at law under Govern subject-matter juris review was within the 74.121(b)(1) ment section Code because diction district court to which the county subject-matter court lacked juris Therefore, any case was transferred. lack case) diction (mem.op.). over subject-matter jurisdiction county Generally, a court trial that lacks law deprive court at would not the district subject-matter jurisdiction over case subject-matter jurisdiction court of But, must dismiss it. another court judg would not make the district court’s subject-matter jurisdiction would have ment void. conclude district We may over the case and the case be trans judgment court’s is not void. statute, ferred to that court under Texas jurisdictional overrule may then the trial court transfer case We issue having jurisdiction the court rather in their than raised 14, 1927, Supreme precedent decided June cases after Court Texas. Int'l, Supreme Yancy Court of Texas's notation of "writ Surgical v. United Partners "petition Inc., refused” or refused” denotes (Tex.2007). 236 S.W.3d 786 n. 6 appeals's opinion as a court of is the same Because the other rehearing.3 motion merit, lack in this motion raised

issues

overrule motion.

ANDERSON, J., participating

rehearing. *15 FARRAR, Appellant,

Thomas CORPORA MANAGEMENT

SABINE Properties Man

TION Sabine a/k/a

agement, Build Inc. and Northwest Ltd., Appellees.

ing,

No. 01-09-00492-CV. Texas, of Appeals of

Court Dist.). (1st

Houston 11, 2011.

Aug.

Rehearing En Banc Overruled 31, 2011.

Oct. motion, 74.121(b)(1), pendency rehearing their section nor would juris suggest may subject-matter affect of such a case also that the district court jurisdiction may county at law or the diction of either court have lacked or transfer County. See in in Harris Tex. improper have been because another case district court 74.121(b)(1); §Ann. Gammill v. volving subject pending matter Gov’t Code same Gammill, 14-07-01013-CV, 2009 WL County. No. in Bell But the district court (Tex.App.-Houston [14th *2 pendency Dist.] would not make such case pet.) (mem.op.). improper Jun. no Government Code transfer under

Case Details

Case Name: Kormanik v. Seghers
Court Name: Court of Appeals of Texas
Date Published: Jan 12, 2012
Citation: 362 S.W.3d 679
Docket Number: 14-09-00815-CV
Court Abbreviation: Tex. App.
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