Highland Capital Management, LP v. Looper Reed & McGraw, P.C., N/K/A Gray Reed & McGraw, P.C.

ACCEPTED 05-15-00055-CV FIFTH COURT OF APPEALS DALLAS, TEXAS 12/15/2015 5:45:49 PM LISA MATZ CLERK Johnston Tobey Baruch, P.C. Trial & Appellate Lawyers 3308 Oak Grove Avenue FILED IN 5th COURT OF APPEALS Dallas, Texas 75204 DALLAS, TEXAS 12/15/2015 5:45:49 PM (214) 741-6260 LISA MATZ chad@jtlaw.com Clerk December 15, 2015 By E-Filing Lisa Matz, Clerk Fifth District Court of Appeals 600 Commerce Street, Second Floor Dallas, Texas 75202 RE: Highland Capital Management, L.P. v. Looper Reed & McGraw, P.C. No. 05-15-00055-CV Dear Ms. Matz: Please circulate this post-submission letter to Justices Lang, O’Neill, and Brown. Under Byrd, if a lawyer acts within the scope of client representation in the litigation context, and does the types of things lawyers normally do—regardless of whether the lawyer carries them out wrongfully—the lawyer is immune from claims by the opposing party. All of the conduct alleged is the type performed by lawyers. 1. Attorney immunity applies to actions connected with litigation—not just acts taken between the date of filing and the date of final judgment. Even courts restricting attorney immunity to litigation apply it where “actions were in the context of an adversarial dispute in which litigation was contemplated, impending, or actually ongoing.” Reagan Nat’l Advertising of Austin, Inc. v. Hazen, No. 03-05-00699-CV, 2008 WL 2938823 (Tex. App.— Austin July 29, 2008, no pet.) (mem. op.). Highland’s petition establishes that litigation was “impending” when Looper Reed acted. Moreover, Byrd concerned 1 the drafting of a bill of sale more than a year after entry of final judgment—yet the Supreme Court deemed this work to have occurred in the litigation conduct. 2. Byrd identified only three exceptions—none of which apply. Highland does not allege that Looper Reed entered into a fraud scheme with Daugherty separate from the litigation representation (like in Poole), drafted any fraudulent document in the transactional context (like in Essex Crane), or punched anyone during trial (or, to use Justice Brown’s colorful example, had anyone “whacked”). These are the only exceptions identified in Byrd. 3. We are talking only about civil liability. Lawyers who commit criminal acts still must answer for their conduct in criminal and grievance proceedings. 4. Other courts have applied attorney immunity to similar conduct and claims. During oral argument, Highland argued that “telling someone you will disclose their confidential information” necessarily falls outside the scope of attorney immunity. But in Alpert, the court applied attorney immunity to dismiss a claim for aiding and abetting breach of fiduciary duty based on appropriating and actually disclosing proprietary information to benefit the client. Alpert v. Crain, Caton & James, P.C., 178 S.W.3d 398, 403-04 (Tex. App.—Houston [1st Dist.] 2005, pet. denied). Looper Reed’s statement allegedly occurred during settlement negotiations. Negotiating settlement is the type of conduct in which lawyers engage. Whether Looper Reed engaged in that conduct wrongfully has nothing to do with whether attorney immunity applies to this case. 5. McCamish has nothing to do with this case. In McCamish, the Supreme Court carved out an exception to privity for claims of negligent misrepresentation. Highland did not assert any such claim. 6. The allegations are not plausible anyway. The Houston and Fort Worth courts now have applied 12(b)(6) pleadings standards under Rule 91a. Zheng v. Vacation Network, Inc., No. 14-13-01136-CV, 2015 WL 3424702 (Tex. App.—Houston [14th Dist.] May 28, 2015, no pet. h.); 2 Drake v. Chase Bank, No. 02-13-00340-CV, 2014 WL 6493411 (Tex. App.—Fort Worth Dec. 31, 2014, no pet.) (citation omitted). As explained in Looper Reed’s brief, Highland’s allegations—based solely on a reading of its petition—are not plausible (and, indeed, are conclusory, lacking in necessary detail, and at times internally inconsistent). As a result, their claim lacks any basis in law regardless of the conduct alleged. Respectfully, /s/Charles “Chad” Baruch Certificate of Compliance This letter was prepared using Microsoft Word. Relying on the word count function in that software, I certify that it contains 550 words excluding the certificates. /s/Charles “Chad” Baruch Certificate of Service The undersigned certifies that a true and correct copy of this instrument was served this 15th day of December, 2015, by efiling and email, upon the following counsel of record for appellant: Paul B. Lackey pbl@lhlaw.net Jamie R. Welton jrw@lhlaw.net Lawrence Lee Budner llb@lhlaw.net Lackey Hershman, L.L.P. 3102 Oak Lawn Avenue, Suite 777 Dallas, Texas 75219-4241 /s/Charles “Chad” Baruch 3