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Pritchard v. Johnson12/16/1999
Appellant, the law firm of Brewer & Pritchard, P.C. ("B&P;), sued James W. Chang, a former associate with the firm, and Nick Johnson, Chang's friend and current law partner, alleging breach of fiduciary duty, civil conspiracy, conversion, actual and constructive fraud, and negligence. The trial court granted defendants' motion for summary judgment on all causes of action. We affirm in part and reverse and remand in part.
BACKGROUND
On April 1, 1995, while employed with B&P; Chang and his friend, Henry King, were on vacation together when they learned of a helicopter crash near Flower Mound, Texas, in which King's father, Herbert King, and six other passengers were injured. Chang and King returned to Houston where Chang, on King's behalf, contacted several plaintiff's attorneys who specialize in catastrophic personal injury cases. Chang also discussed the case with Nick Johnson, a sole practitioner at that time. Chang and King met with several attorneys, including Joe Jamail and Johnson. On April 6, 1995, King signed an attorney fee contract with Johnson with the understanding that Johnson would refer the case to Jamail. Johnson's agreement with Jamail was that he would receive 50 percent of the attorney's fee upon the conclusion of the case. The case settled for $15,000,000, and Johnson received a $3,000,000 referral fee, less expenses. Chang left B&P;in June 1995 and began working with the firm of Adams & Reese.
Thomas C. Pritchard, a shareholder of B&P; testified by affidavit that Chang approached him regarding the helicopter crash shortly after the accident. According to Pritchard, Chang said he could control the case, which involved a significant business opportunity for the firm. Pritchard said the firm was definitely interested in the case. Chang did not tell Pritchard that one of the victims was the father of his close friend, or that Chang considered his friend's father to be a "surrogate father." Pritchard also said in his affidavit that, on Tuesday, October 8, 1996, Sabrina McTopy told him that Mark Coffin, Chang's supervisor at the firm of Adams & Reese, said Chang was a multi-millionaire as a result of his 50% fee-sharing agreement with Joe Jamail on the helicopter case.
Patrick E. Gaas, a shareholder of B&P; testified by affidavit that he met with Chang shortly after the helicopter crash. Chang told Gaas that the accident involved a Chinese delegation and a friend of his mother. He said he could control the case and "sign up" the victims on a contingency agreement or refer them to another lawyer because of his fluency in Mandarin, his connections with the Chinese community, and his mother's personal acquaintance with one of the victims. Gaas told Chang about contingent fee agreement forms in the firm's files and discussed such matters as structuring percentages of recovery, closing an agreement with the client, issues to watch out for, and referral fees in the event they refer the case to another lawyer or associate with another lawyer for the case. Gaas discussed possible attorneys to whom they could refer, including Fisher Gallagher & Lewis, Mithoff & Jacks, Joe Jamail, Ernest Cannon, and John O'Quinn. Gaas said Chang indicated he would have no problem signing up the plaintiff; he would be in the best position to make a fee arrangement with the crash victims; and he would keep Gaas advised.
Later, according to Gaas, Gaas asked Chang about the case, and Chang said that Joe Jamail was handling the case. Gaas asked, "How does that guy manage to get all these cases?" Chang speculated it was because Jamail was very famous, and clients and referrals gravitate to him. He did not indicate any furthe
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