## NO. 06-15-00037-CV

I N THE 

### C OURT OF 

### A PPEALS FOR THE 

### S IXTH 

### D ISTRICT OF 

### T EXAS AT 

### T EXARKANA

MICHAEL D. LEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPELLANT
V. THE ROGERS AGENCY, C. MICHAEL ROGERS & NEW YORK LIFE INSURANCE COMPANY.. . . . . . . . . . . . . . . APPELLEES

On Appeal from the 124 th Judicial District Court

of Gregg County, Texas Honorable Alfonso Charles Presiding



## B RIEF OF 

## A PPELLANT

John R. Mercy Texas State Bar No. 13947200 M ERCY p C ARTER p T IDWELL , L. L

. P

. 1724 Galleria Oaks Drive Texarkana, TX 75503 Telephone: (903) 794-9419 Facsimile: (903) 794-1268 E-mail: jmercy@texarkanalawyers.com James A. Holmes Texas State Bar No. 00784290 T HE L AW O FFICE OF J AMES H OLMES , P C 212 South Marshall Henderson, TX 75654 Telephone: (903) 657-2800 Facsimile: (903) 657-2855 Email: jh@JamesHolmesLaw.com

ATTORNEYS FOR APPELLANT

Oral Argument Requested ACCEPTED 06-15-00037-CV SIXTH COURT OF APPEALS TEXARKANA, TEXAS 11/9/2015 11:10:06 AM DEBBIE AUTREY

CLERKI D E N T I T Y O F P A R T I E S A N D C O U N S E L

Pu rs uan t to Ru l e 3 8 .1 (a) o f t h e Tex as Ru l es of Ap p el l at e Pro ced u re, Ap p el l an t
l i st s b el o w t he n am es an d ad dres s es o f al l p art ies to t h e t ri al co u rt ’ s fi n al ju d g m en t

t o g et h er wi t h t hei r co u n s el i n t h e t ri al co u rt

. Th i s l i s t i s p ro v id ed s o t h at t h e ju s t i ces

o f t h i s Co u rt m ay ev al u at e p o ss i b l e d i s q u al i fi cat io n an d recu sal , an d s o t h at t h e Cl erk

o f t h e Co u rto f Ap p eal s m ay n o t i fy al l p art i es o f t h i s Co u rt ’ s fi n al ju d g m en t

.

M i ch ael D. Lee.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ap p el l an t
J am es A. Ho l m es Tex as St at e Bar No . 0 0 78 42 9 0 T H E L A W O F F I C E O F J A M E S H O LM E S , P C 2 1 2 So u t h M ars hal l Hen ders o n , TX 7 5 6 5 4

. . . . . . . . . . . . . . . . . . . . . . . . . . Tri al Co un s el fo r Ap p el l an t
J o h n R. M ercy M E R C Y p C A R T E R p T ID W E LL , L. L

. P

. 1 7 2 4 Gal l eri a Oak s Dri v e Tex ark an a, TX 7 5 5 0 3

. . . . . . . . . . . . . . . . . . . . . . Ap p el l at e Co un s el fo r Ap p el l an t
Th e Ro g ers Ag en cy C. M i ch ael Ro g ers
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ap p el l ees
LaTo y i a Pi erce W I LS O N , E LS E R , M O S K O W I T Z , E D LE M A N & D I C K E R L LP 4 8 0 0 Ban ko f Am eri ca Pl aza 9 0 1 M ai n St reet Dal l as , TX 7 52 0 2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . At t o rn ey fo r Ap p el l ees , T h e Ro g ers Ag en cy

an d C. M i ch ael Ro g ers
New Yo rk Li fe In s u ran ce Co m p an y
... . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ap p el l ee

iAn d rew J u b i ns k y

Ry an M cCo m

ber F I G A R I & D A V E N P O R T , L LP 3 4 0 0 Ban ko f Am eri ca Pl aza 9 0 1 M ai n St reet Dal l as , TX 7 52 0 2

. . . . . . . . . . . . . . . . . . . Tri al an dAp p el l at e Co u n s el fo r Ap p el l ee, N ew Yo rkLi fe In s uran ce Co m p an y

ii

### T ABLE OF 

### C ONTENTS Pa g e

Id en t i t y o f Part i es an d Co u n s el

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Tab le o f Co n t en t s
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i i i

In d ex o f Au t h ori ti es
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
St at em en t o f t he Cas e.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
St at em en t o f Oral Arg u m en t

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Is s u e Pres en ted

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
St at em en t o f Fact s.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Su m m ary o f t h e Arg u m en t

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Arg um en t an d Au t h o ri t i es
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Res J u d icat a.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
St an dard o f Rev i ew.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Un d is p ut edFact s
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Lee’ s Ex t ra-Co n t ract u al Cl ai m s
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1
New Yo rk L i fe’ s M o ti o n fo r Su m m ary J u d g m en t

. . . . . . . . . . . . . . . . . . . . 1 2
No t a Cl as s M em

b er.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2
No t i n Pri v i t y
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4
No No ti ce.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5
Th e No t i ce W as No t Ad eq u at e.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6

iiiCo n cl u s i o n
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7

Pray er.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7
Cert i fi cat e o f Serv i ce.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8
Cert i fi cat e o f Co m

p l i an ce.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 Ap p en d ix :
A - Ord er Gran t i n g Defen d an t s’ M o t i o n fo r Su m m ary J u d gm en t (CR 1 0 74 an d SCR 1 0 6 5 )

B - Cl as s M em

b er Defi n i t i o n (CR 3 1 9)

iv

### I NDEX OF 

### A U THORITIES

Ca s es : Pa g e
Al l Am eri can Si d i n g & W i n d o ws , In c. v
. Ban k o f Am eri ca Nat i o n al As s o ci at i o n , 3 6 7 S.W .3 d 4 9 0 (Tex . Ap p . – Tex ark an a 2 0 1 2 , p et . d en i ed ).

. . . . . . . . . . . . . . . . . 9
Bai l ey v . Kem per Cas u al t y

In s . Co ., 8 3 S.W .3 d 8 4 0 (Tex . 2 0 0 2 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3
Barr v . Res o l u t i o n T ru s t Co rp ., 8 3 7 S.W .2 d 6 2 7 (Tex . 1 9 9 2 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Bo g ard v . Co o k , 5 8 6 F.2 d 3 9 9 (5 th Ci r. 1 9 7 8 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6
Cel t i c Li fe In s
. Co . v
. Co at s , 8 8 5 S.W .2 d 9 6 (Tex . 1 9 9 4 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1
Ci t y o f San An t o n i o v . Co rt es , 4 6 8 S.W .3 d 5 8 0 (Tex . Ap p . – San An t o n i o 2 0 1 5 , p et . fi l ed ).

. . . . . . . . . . . . . . . . . 8

FM Pro p s Op erat in g Co . v . Ci t y o f Au st i n, 2 2 S.W .3 d 8 6 8 (Tex . 2 0 0 0 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Fo rd Mo to r Co . v
. Sh el d o n , 2 2 S.W .3 d 4 4 5 (Tex . 2 0 0 0 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3
Get t y Oi l Co . v . In s. Co . o f N. Am

. , 8 4 5 S.W . 2 d 7 9 4 (Tex . 1 9 9 2).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4
Hi l l v . Tx An An es th es i a M g m t . LLP, 4 4 3 S.W .3 d 4 1 6 (Tex . Ap p . – Dal l as 2 01 4 , n o p et .).

. . . . . . . . . . . . . . . . . . . . . . . 1 4

In Re Al l s t at e Co u nt y

M u t u al In s
. Co ., 4 4 7 S.W .3 d 4 9 7 (Tex . Ap p . – Ho u s t o n [1 s t Di s t .] 2 0 14 , o ri g . p ro ceed i n g ).

. . . . . 1 1

vIn Re ER,

3 8 5 S.W .3 d 5 5 2 fn

. 1 8 (Tex

. 2 0 1 2 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5

In re: Ni s s an M o t o r Co rp . An t it ru s t Li t ig ., 5 5 2 F.2 d 1 0 88 (5 t h Ci r. 1 9 7 7).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6

In t rat ex G as Co . v . Bees o n , 2 2 S.W .3 d 3 9 8 (Tex . 2 0 0 0 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3
Is o n v
. Carl i le & J acq uel i n , 4 1 7 U.S. 1 5 6 (1 97 4 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5
J o h n so n v . Gen eral M o t o rs Co rp ., 5 9 8 F.2 d 4 3 2 (5 th Ci r. 1 9 7 9 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5
Pet er G. M i l n e, P.C. v . Ry an , 2 0 1 5 W L 5 9 9 9 8 9 8 at 1 0 (Tex . Ap p . – Tex ark an a, Oct o b er 1 5 , 2 0 1 5 ).

. . . . . . . . . 1 3
Pi n s o n v . Term i nal Tran s p o rt Co ., 6 3 4 F.2 d 9 8 9 (5 th Ci r. 1 9 8 1 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6
Pro v id en t Li fe & Acci d en t In s
. Co . v . Kn o t t , 1 2 8 S.W .3 d 2 1 1 (Tex . 2 0 0 3 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Ro y al Gl o be In s . Co . v . Bar Co n s u l t an t s , In c., 5 7 7 S.W .2 d 6 8 8 (Tex . 1 9 7 9).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2
St rat her v . Do l g en Co rp
. o f Tex as , In c., 9 6 S.W .3 d 4 2 0 (Tex . Ap p . – Tex ark an a 2 00 2 , n o p et .).

. . . . . . . . . . . . . . . . . . . . . 9
Trav el ers In s . Co . v . J oach i n , 3 1 5 S.W .3 d 8 6 0 (Tex . 2 0 1 0 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Tru ckIn s. Ex ch an g e v . M i d-Co n t i n en t Cas . Co ., 3 2 0 S.W .3 d 6 1 3 (Tex . Ap p . – Au s t i n 2 0 1 0, n o p et .).

. . . . . . . . . . . . . . . . . . . . . . 1 4
Un i on Paci fi c R. Co . v . Am eri t o n Pro p ert i es , In c., 4 4 8 S.W .3 d 6 7 1 (Tex . Ap p . – Ho u s t o n [1 s t Di s t .] 2 0 14 , p et . d en i ed ).

. . . . . . . . . . . 8

viVi l es v . Sec. In t ’ l In s . Co .,

7 8 8 S.W .2 d 5 6 6 (Tex . 1 9 9 0 ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1
W i ll s o n v. New Yo rkLi fe In s . Co ., etal , In d ex No . 9 4 / 1 2 7 80 4 (Su p . Ct . N.Y. Co .).

. . . . . . . . . . . . . . . . . . . . 5 , 1 0 , 1 3 p a s si m

Rul es :
T E X

. R. C I V

. P. 1 6 6 a(c).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Sta tutes :
T E X

. B U S

. C O M

. C O D E § 1 7 .4 6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 § 1 7 .5 0

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 , 1 2

T E X

. I N S

. C O D E § 5 4 1 .0 6 0 (a).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 § 5 4 1 .1 5 1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 § 5 4 2 .0 0 3 (b ).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 § 5 4 2 .0 5 8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1

vii

## N O. 06-15-00037-CV

I N T H E 

### C O U R T O F 

### A P P E A L S F O R T H E 

### S I X T H 

### D I S T R I C T O F 

### T E X A S A T 

### T E X A R

K A N A

M ICHAEL D. LEE.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPELLANT
V. THE ROGERS AGENCY, C. M ICHAEL ROGERS & NEW YORK LIFE INS. CO..

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . APPELLEES



### B R I E F O F 

### A P P E L L A N T
TO THE HONORABLE COURT OF APPEALS:
COM ES NOW Ap p el l an t , M I C H A E L D. LEE, an d ap peal s t he t ri al co urt ’ s
J u n e 2 6, 2 0 1 5 s umm ary

ju d g m en t , an d wo u l d s ho w u nt o t h e Co u rtt h e fo l l o wi n g
Sta tem ent o f the Ca s e
Nat u re o f t h e Cas e Th i s i s a su i t b y Lee fo r n eg l i g en ce, d ecep ti v e t rad e p ract i ces , i n s u ran ce co d e v i o l at io n s , d ecl arat o ry rel i ef an d b r e a ch o f co n tract ag ai n st h i s i n s u ran ce ag en t , ag en cy , an d NY Li fe. 1

1 Appellant, Michael D. L ee, will be referred to as “L e e”; Appellee, The Rog ers A ge ncy , will be referred to as “ The Ag ency )”; Appellee, C. Michael Rog e rs, will be referred to as “Rog ers”; and Appellee, N ew York L ife I ns. Co., will be referred to individually as “NY L ife.” W ith reference to the Motion for Summary J udg ment and arguments to it the Appellees collectively will be referred to as “New York L ife.” The Clerk’s Record will be cited a s “C R

_ _ _ ” ; and the Supplemental Clerk’s Record as “SCR ___; and the Reporter’s Record will be cited as “ RR __.”
1Tri al Co u rt : Th e Ho n o rab l e Al fo n s o Ch arl es , 1 2 4 t h Di st ri ct Co urt , Greg g Co un t y
Part ies : Pl ai n ti ff

– M i ch ael D. Lee Defen d an ts

–

Th e Ro g ers Ag en cy , C. M i ch ael Ro g ers New Yo rk

Li fe In s . Co

. Co u rs e o f Pro ceed i n gs : Su i t w a s f i l e d b y L e e a g a i n s t Ro g ers , Th e Ro g ers Ag en cy , an d NY L if

e f o r neg l i g en ce, d ecep t i v e t rad e p ract i ces , v i o l at i o n s of t h e In s u ran ce Co d e, d ecl arat o ry rel i ef, an d b reach o f co n tract

. (CR 5 , 1 3, 7 1 7)

. Defen d an t s d en i ed t h e al l eg at i o n s
. (CR 7 9 6, 8 0 0, 8 0 9 ). D efen dan t s rem o v ed t h e cas e t o fed eral
co u rt

. (CR 2 4 ). Th e fed eral co u rt rem an d ed t h e cas e t o t h e 1 24 t h D i s t r i ct Co u rt , G reg g Co u n t y , Tex as
. (C R 3 6 ). New Yo rk Li fe m o v ed fo r s u m m ary ju d g m en t b as ed up o n res ju d i cat a.(CR 5 0, 7 0 3 , 7 0 6, 7 1 4, 72 6 ). Lee fi l ed a b ri ef i n res p o ns e p oi n t i n g o ut t h atres ju d i cat a d i dn o t ap p l y
. Tri al Co u rt Di sp o s i t i o n: T h e t r i a l c o u r t g r a n t e d t h e s u mma r y j u d g me n t m o t io n b as ed o n res ju d i cat a. (CR 1 0 7 4 ). Th i s ap p eal en s ued

. (CR 1 07 5 ).

2

### S TATEMENT OF 

### O RAL 

### A R G UMENT

Th i s cas e pres en ts un i q u e fact u al i ss u es reg ard i n g cl as s n o t i fi cat i o n an d
wh et h er res ju d i cat a ap p l i es t o n o n -cl as s m em b ers
. Th erefo re o ral arg u m en t m ay b e
h el p fu l t o t h e Co u rt i n u n d ers t an d in g t he i s s u es as p res en t ed

.

3

### I SSUE 

### P R ESENTED

I s s ue No
. 1

Res judi ca ta ba s ed o n a pri or cl a s s a cti o n do es no t a ppl y to Lee fo r three s peci fi c rea s o ns :

a . R e s judi ca ta do es no t a ppl y beca us e Lee w a s no t a m em ber o f the W i l l s o n cl a s s ;
b. Res judi c a ta do es no t appl y beca us e Lee w as no t i n pri v ity w i th the W i l l s o n cl a s s ;

c. Res judi ca ta do es no t a ppl y beca us e ev en if Lee w ere a m em ber o f the W i l l s o n cl as s Lee di d no t recei v e pro per no ti ce; a nd
d. Res judi ca ta do es no t a ppl y beca us e ev en if Lee w ere a m em ber o f the cl a s s a nd recei v ed no ti ce, the no ti ce w a s no t a dequa te to a ppri s e Lee tha t hi s ex tra -co ntra ctua l cl a im s w oul d be ba rred by the cl as s judg m ent.
Th erefo re i t w as erro r b y t h e co u rt t o g ran t s u m m ary ju d g m en t b as ed o n res ju d i cat a.

4

### S TATEMENT OF 

### F ACTS

On J u ly 2 8 , 1 9 95 , NY Yo rk Li fe s et t l ed a t wo b i l l i o n d o ll ar cl as s act i o n wi th

cert ai n d efi n ed cl as s m em bers

. (CR 5 5 ). In t h e cas e s t y l ed W i l l s o n v. New Y

o r k Li f e
In s

. Co ., et a l , In dex No

. 9 4 / 1 2 7 8 0 4 (Su p
. C t

. N.Y. Co .) (CR 5 5 ), t he ju d g m en t

ap p ro v i n g t h e s et t l em en t sp eci fi cal l y d efi n ed t h e cl as s as “

. . . al l p ers o ns o r en t i ti es
wh o hav e, o r h ad , at th e t i m e o f t h e p o l icy ’ s t erm in at io n , an o wn ers hi p i n t eres t i n o n e

o r m o re p o l i ci es i s su ed b y New Yo rk Li fe at an y ti m e d u ri n g t he cl a s s p e r i o d , . . . (CR 3 1 9 ). Un d er t h e W i l l s o n cl as s d efi n i t i o n to b e a m e m b er o f t he cl as s a p ers o n

o r en t i t y h ad to h av e an o wn ers h ip i n t eres t at (1 ) t he t i m e o f t h e s et t l em en t o f t h e
W i ll s o n cas e, o r (2 ) at t he t i m e o f t h e p o l i cy ’ s t erm i nat i o n . (CR 3 1 9 ). In Lee’ s cas e

t o be a m em

b er o f t h e cl as s Lee wo u l d h av e h ad t o o wn t h e p ol i cy on J u l y 2 8 , 1 9 9 5

o r in M ay o f 2 0 1 2 wh en th e s et t l em en t was ap p ro v ed o r t h e p o li ci es i n q u es t i o n were

t erm i n at ed . (CR 7 5 1).

Bet ween 19 8 5 an d 1 98 7 Lee p u rch as ed t h ree w h o l e-l i fe p o li ci e s f r o m New
Yo rk Li fe In su ran ce Co m pan y t h ro u g h i t s lo cal ag en t , Ro g er s , o f Th e Ro g ers Ag en cy
. (CR 5 4). Each p ol icy pro v i d ed t h at Lee co u l d “ s h o rt en t he p rem i u m p ay i n g
p eri o d fo r t h i s p o l i cy b y h av i n g i t m ad e fu ll y pai d u p wi t h no m o re prem i u m s d u e”. (CR 73 7 , 7 5 0 ). In 1 9 8 9, b as ed u p o n Ro g ers ’ rep res en tat i o n s , Lee pai d $ 2 3 8 ,1 8 8 .1 5

t o fu l ly p ay up t h e p ol ici es s o no m o re p rem i u m s wo u l d b e d u e. (CR 5 5, 7 38 , 7 5 0 ).

5Bas ed u p o n Ro g ers ’ rep res en t at i o n s Lee p ai d n o fu rt h er p rem i u m s o n t h e p o l i ci es
.

(CR 7 3 8 , 7 5 0).
On J u n e 1 0 , 19 9 1 Lee t ran s ferred o wn ers h ip o f t he p o l i ci es t o t h e M ich ael D.
Lee Irrev o cab l e In s u ran ce Tru s t u s i n g NY Li fe’ s p ro v id ed d o cu m en ts

. (CR 7 3 8 ). By

t h e t erm s o f t h e NY Li fe fo rm s , t h e own er o f t h e p o li ci es b ecam e Ri ch ard A. Di al , t h e

t ru s t ee o f t h e i rrev o cab l e i n su ran ce t ru s t

. (CR 7 3 8). NY Li fe ev en co n fi rm ed t o Di al

t h at h e h ad al l t h e ri gh t s o f o wn ers h i p of t h e p o l ici es
. (CR 7 3 9 ). Aft er Ju n e 1 0 , 1 9 9 1
Lee h adn o fu rt h er o wn ers h i p i n t eres t i n t h e p o l i ci es . (CR 7 3 9).

In M ay o f 2 01 2 , NY Li fe n o t i fi ed Lee t h at t he p o l i c i e s h a d l ap s ed d u e to

u n p ai d p rem i um s
. (CR 7 5 1 ). Lee fi l ed su i t i n M arch o f 2 0 1 4 as s ert i n g h i s i n d i v i d u al

ex t ra-co n t ract u al cl ai m s fo r n eg l i g en ce, decep t i v e t rad e p ract i ces , v i ol at io n s o f t h e
i n s u ran ce co d e, d ecl arat o ry rel i ef, an d u nd er co n t ract

. (CR 5 , 13 , 7 1 7 ). Defen d an t s

at t em p t ed t o rem o v e t h e cas e t o fed eral co urt

. (CR 2 4 ). Th e cas e was rem an ded t o t h e
1 2 4 t h D i s tri ct Co u rt o f Greg g Co u n t y
. (CR 3 6 ). Defen d an t s th en i m m ed i at el y fi l ed a

m o ti o n fo r s u m

m ary j u d gm en t cl ai m in g th at b ecau se o f t h e W i l l s o n cas e res ju d i cat a
ap p li ed t o L ee’ s cl ai m s
. (CR 5 0 , 7 0 3 , 7 0 6, 7 1 4 , 72 6 ). T he co u rt g ran t ed Defen d an t s ’

s u m m ary ju d g m en t m o t i o n , d i s m i s s i n g al l o f Lee’ s cl ai m s . (CR 1 0 7 4).

6

### S UMMARY OF THE 

### A RG UMENT

Fo r res ju di cat a t o ap p l y

t h i s Co u rt m

u s t m ak e s ure t h at i t co m p l ies wi t h d u e
p ro ces s req u i r e m e n t s
. H e re i t d o es n o t becau s e L ee was n o t a m em ber o f t h e p ri o r
cl as s or i n pri v i t y wi t h t h e p ri o r cl as s , di d n ot recei v e no t i ce o f t h e cl as s s et t l em en t ,

an d th e n o t i ce was n o t s u ffi ci en t ev en h ad h e recei v ed i t

. As t h i s Co u rt i s aware, res ju d i cat a can o nl y ap p l y i n v ery sp eci fi c in s t an ces , no n e o f wh i ch are m et i n t h i s cas e.
It w as t herefo re erro r t o g ran t s u m m ary ju d g m en t b as ed u p o n i t

.

7

### A RG UMENT AND 

### A U THORITIES

Th e res j u d icat a effect o f a cl as s s et t l em en t do es n o t ap p l y wh en a pers o n i s n ot

a m em b er of t h e cl as s , no t i n p r i v i t y wi t h th e cl as s , d o es n o t recei v e n o ti ce o f t h e
cl as s s et t l em en t , or n o t i ce i s i n ad eq u at e. H e r e t h e tri al co u rt erred b y g ran t i n g

s u m m ary ju d g m en t b as ed o n res ju d i cat a wh ere n o n e o f t h es e ex i s t ed

. Res J udi ca ta
Res ju d i cat a is t he g en eri c t erm fo r a g ro u p o f rel at ed co n cep t s co n cern i n g t h e

co n cl u s i v e effect s g iv en t o fi nal ju d g m en t s. Barr v
. Res ol u t i o n T ru s t Co rp ., 8 3 7
S.W .2 d 6 2 7 , 6 2 8 (Tex

. 19 92 ); Ci t y o f San A nt o n i o v. Co rt es , 4 68 S.W .3 d 5 8 0 (Tex

. Ap p
. – San An t o n i o 20 1 5 , p et

. fi l ed ). Cl ai m s precl u s i o n u nd er res j u d icat a p rev en t s

t h e rel it i g at i o n o f a cl ai m o r cau s e o f act io n th at h as b een fu l l y ad ju d i cat ed o r s h o u ld
h av e b een ad

ju d i cat ed i n a p r i or s u i t

. Un i on Paci fi c R. Co

. v
. Am eri t o n Pro p ert i es , In c., 4 4 8 S.W .3 d 6 7 1 , 6 8 0 (Tex

. Ap p
. – Ho us t o n [1 s t Di s t .] 2 0 14 , p et

. d en i ed ); Barr,
8 3 7 S.W .2 d at 6 2 8

. To prev ai l o n a res ju d icat a d efen se a p art y m u s t sh o w t h at (1 )
i n a p rev io u s act i o n , a co u rt o f co m p et en t ju ri s d ict i on ren d ered a fi nal d et erm i n at i o n

o n th e m eri t s ; (2 ) t he p art ies i n t h e ea r l i er act i o n are i d en t i cal t o , o r i n p ri v i t y wi t h,

t h e p res en t p art i es ; an d (3 ) t h e p en d i n g cl ai m i s i d en t i cal t o t he p ri o r cl ai m o r ari s es

o u t o f t h e s am e s u bject m at t er as t h e p ri or cl ai m an d co ul d hav e b een l i t i g at ed i n t h e
p rev i o u s act i o n. Trav el ers In s
. Co . v . J o ach in , 3 1 5 S.W .3 d8 6 0, 8 6 2 (Tex . 2 0 1 0 ).

8Sta nda rd o f Rev i ew

W h et h er s u m

m ary ju d g m en t i s p ro p er is a q u es ti o n of l aw t h at is rev i ewed d e

n o v o
. FM Pro p s O p erat in g Co

. v
. Ci t y o f Au s t i n , 2 2 S.W .3 d8 6 8 , 8 7 2 (Tex

. 2 0 0 0 ).
Th e s t an d ard fo r rev i ewi n g a t rad i t i o n al s u m m ary ju d g m en t i s w el l es t ab l i s h ed

. Al l
Am eri can Si d i n g & W i n d o ws , In c. v
. Ban k o f Am eri ca N a t i o n a l A s s o ci at i o n , 3 6 7
S.W .3 d 4 9 0 , 4 9 7 (Tex

. Ap p . – Tex ark an a 2 0 1 2, p et

. d en i ed ). Trad i t io n al s u m m ary ju d g m en t i s p ro p er i f (1 ) t h ere i s n o g en u i n e is s u e o f m at eri al fact , an d (2 ) t h e m o v an t
i s en t i t l ed t o ju d g m en t as a m at t er o f l aw. Tex

. R. Ci v
. P. 1 6 6 a(c). W h en rev i ewi n g

a s u m m ary ju d g m en t t h e co urt o f ap p eal s m us t t ak e as t ru e al l ev id en ce fav o rab l e to

t h e n o n-m o v an t , an d i n d u l g e ev ery reas o n ab l e i n feren ce an d res o l ve al l d o u b t s in

n o n -m o v an t ’ s fav or. Pro v i den t Li fe & Acci den t In s
. Co

. v
. K n o t t , 12 8 S.W .3 d 2 1 1,
2 1 5 -1 6 (Tex

. 20 03 ). When t h e t ri al co urt d o es no t s peci fy o n wh at bas i s i t g ran t ed

s u m m ary ju d g m en t , t h e ap p e l l an t m u s t arg u e th at ev ery g ro u n d i n t h e s u m m ary ju d g m en t m o t i o n i s e r r o n eo u s
. St rat h er v
. D o l g en Co rp
. o f Tex as , In c., 9 6 S.W .3 d
4 2 0 , 4 2 2 -2 3 (Tex

. Ap p . – Tex ark an a 2 0 02 , n o p et .).
Undi s puted Fa cts

! NY Li fe i s s ued t hree (3 ) on e m i l l i o n d o l l ar l i fe i n s uran ce p o l ici es t o Lee
b et w een 1 9 8 5 an d 1 98 7 . (CR 4 9 , 5 4).

! Lee cl ai m ed t h at Ro g ers m i s rep res en t ed t o h im i n 1 98 9 t h at (1 ) h e co u ld
fu l l y p ay t h e p rem i u m s o n t h e p o l ici es fo r $2 3 8,1 8 8 .1 5 ; an d (2 ) aft er h e
9m ad e su ch p aym en t t h e p o l i ci es w o u l d rem ai n i n effect fo r h i s l i fet i m e. (CR 7 5 0 ).

! On J un e 1 0 , 1 9 9 1 h e t ran sferred o wn ers h i p o f al l t h ree p ol i ci es t o t h e
M i ch ael D. Lee Irrev o cab l e In s uran ce Tru st . (CR 7 5 0 ).

! On Feb ru ary 1 , 1 9 9 6 t h e co u rt ap p ro v ed a fi n al ju dg m en t i n W i l l s o n v.
New Y ork Li f e In s u r a n ce Co ., et a l , In d ex No

. 9 4 / 1 2 7 8 0 4 (Su p rem e
Co u rt New Yo rkCo u n t y ).(CR 5 6 ).

! Th e W i l l s o n ju d g m en t d efi n ed cl as s m em b ers as “ al l p ers o n s or en t i ti es
wh o hav e o r had at t h e t i m e o f t h e p o l i c i es ’ t erm i n at i o n an o wn ers h ip
i n t eres t i n on e o r m o re p o l i ci es i s s u ed b y New Yo rk Li fe at an y t i m e
d uri ng t h e cl as s p eri o d , . . .” (CR 3 1 9 ).

! Th e W i l l s on ju d g m en t d efi n ed cl as s p eri od as t h e p eri o d fro m J an u ary
1 , 1 9 8 2 t hro u g h Decem

b er 3 1 , 1 9 94 , i n cl u s i v e. (CR 3 2 0 ).

! Lee d i d n o t hav e an o wn ers h i p i nt eres t i n t he p o l i ci es o n Feb ru ary 1,
1 99 6 . (CR 7 51 ).

! Lee d i d n o t h av e an o wn ers h i p i n t he p o l i ci es i n M ay o f 2 0 1 2. (CR 7 5 1 ).

! No t i ce was n o t s en t s p eci fi cal ly t o Lee. (CR 7 5 1 ).

! No t i ce co ncern i n g t h e p o l i ci es w as o n l y s en t t o Ri ch ard Di al , t he t ru s t ee
fo r t h e M i ch ael D. Lee Irrev o cab l e In s u ran ce Tru s t. (CR 8 22 ).

10Lee’s Ex tra -Co ntra ctua l Cl a im s

Cl ai m s fo r v i o l at i on o f t he Tex as In s u ran ce Co d e an d t h e co m m o n law d u t y o f

g o o d fai t h an d fai r d eal i ng are s ep arat e an d in d ep en d en t fro m cl ai m s fo r co n t ract u al
b en efi t s
. S

ee In Re Al l s t at e Co u n t y M u t u al In s
. Co

. , 4 4 7 S.W .3 d 4 9 7 , 5 0 0 (Tex

. Ap p.

– Ho u s t o n [1 s t Di s t .] 2 0 1 4 , ori g
. p ro ceed in g ); Vi l es v. Sec. In t’ l In s
. Co ., 7 8 8 S.W .2 d

5 6 6 , 5 6 7 (Tex . 1 9 9 0 ). Th e s up rem e co urt h as h el d th at an i n su rer or it s ag en t s m ay
b e l iab le u n der th e Tex as In s u ran ce Co de an d / o r t h e DTPA fo r m i s rep res e n t i n g a
p o l i cy ev en w i t h o u t a cl ai m u n d er t h e co n t ract i t s el f. Cel t i c Li fe In s
. Co

. v
. Co at s , 8 8 5 S.W .2 d 9 6 , 9 9 (Tex . 1 9 9 4 ); In Re Al l s t at e, 4 47 S.W .3 dat 5 00

. In t h i s cas e, L ee as s ert s ex tra-co n t ract u al cl ai m s u nd er t h e Tex as In s u ran ce
Co d e an d t h e DTPA fo r m i s rep res en t at i o n o f t h e p ol i cy
. In part i cu lar, h e co m p l ai n s

t h at h i s ag en t m i s rep res en t ed t h e n at u re o f t h e p o l i cy an d th e am o u nt o f p rem i u m s to

“ m ak e i t fu l l y pai d u p .” He as s ert s cau s e s o f a c t i o n u n d er Sect i on s 5 4 1 .0 6 0 (a),

5 4 2 .0 0 3 (b ) an d 5 4 2 .0 5 8 o f t h e Tex as In s u ran ce Co d e an d Sect i o n s 1 7.4 6 an d 1 7 .5 0

o f t h e Tex as Bu s i nes s & Co m m erce Co d e. Th es e cau s es o f act i on ari s e i n fav o r o f

an y “ p ers o n” an d an y “ co n s u m er” d am ag ed by t h e m i s rep res en t at i o n s
. E .g ., T E X

. I N S

. C O D E § 54 1.1 5 1 (W es t 2 0 15 ); T E X

. B U S

. C O M

. C O D E § 1 7 .5 0 (W es t 2 0 1 5 ). Th ey are

n o t res erv ed fo r p o l i cy

o wn ers o r ev en i n s ured s
. S ee i d

. Th es e cl ai m s are s ep arat e an d i nd ep en d e n t fro m an y cl ai m s fo r co n t ract u al
b en efi t s
. In Re Al l s tat e, 44 7 S.W .3 d at 5 0 0

. T hey can b e as sert ed ev en i n th e ab s en ce
11o f a cl ai m

fo r b en efi t s u n d er t h e p o l i ci es
. Ro y al Gl o b e In s
. Co

. v
. Bar Co n s u l t an t s , In c., 5 7 7 S.W .2 d 6 88 , 6 9 4 (Tex

. 1 9 7 9 ). Th ey aro s e i n fav or o f Lee wh en h i s ag en t

m i s rep res en t ed th e t erm s of h i s p o l i c y t o h i m i n 1 9 8 9. W h i l e Lee co ul d h av e

t r a n s ferred t hes e cl ai m s t o th e Tru s t , h e di d n o t

. As New Yo rk Li fe co n ced es , t h e
p l ai n l an g u ag e o f th e Tru s t i n s t ru m en t co n v ey s o n l y Lee’ s “ ri g h t , t i t l e an d i n t eres t in

t he p o l i ci es . (CR 8 15 ). Th e fact t h att h e Tru s t b ecam e t h e “ ab s o l u t e o w n er” o f t h e
p o l i ci es d oes n ot fo recl os e Lee’s r i g h t t o as s ert hi s cl ai m as a “ pers o n ” an d

“ co n s u m er” u n d er t he T ex as In s u ran ce Co d e an d t h e DTPA. E.g ., T E X

. I N S

. C O D E §

5 4 1 .1 5 1 ; T E X

. B U S

. C O M

. C O D E § 1 7 .5 0

. New Y o rk Li fe’s Mo ti o n fo r Sum m a ry J udg m ent
Th e s o l e b as i s, an d “ t h res h o l d is s ue”, fo r New Yo rk L ife’ s m o t i on fo r s u m m ary ju d g m en t was th at th e fi n al ju d g m en t i n th e W i l l s o n cas e b arred L ee’ s cl ai m s b y res ju d i cat a. 2 (CR 5 4 ). In an al y zi n g t h e el em en t s o f r e s j u d i cat a, i n t h e co n t ex t o f t h e
W i ll s o n cas e, res ju d i cat a cl earl y d o es n o t ap p l y t o Lee’ s cl ai m s
. No t a Cl a s s Mem ber

In t h e co n t ex t o f a cl as s act i o n , fo r t h e Wi l l so n ju dg m en t t o h av e p recl u s i v e
effect Lee m

u s t h av e b een a m em

ber o f t he cl as s
. Th e d efi n i t i o n o f a cl as s m em b er

m u s t b e p reci s e an d p res en t ly as cert ai n ab l e by referen ce t o o b ject t o th e cri t eri a.

2 Rog ers and The Ag ency joined in the motion for summary judg ment. (CR 703, 704).
12In t rat ex Gas Co

. v
. Bees o n , 2 2 S.W

. 3 d 3 9 8 , 4 0 3 (Tex

. 2 0 0 0 ); Pet er G. M i l n e, P.C. v.

Ry an , 2 0 15 W L 5 9 9 9 89 8 at 1 0 (Tex

. Ap p
. – Tex ark an a, O ct o b er 1 5 , 2 01 5 ). A p ro p er
cl as s d efi n i t i o n d et erm i n es wh o i s en t i t l ed t o no t i ce, wh o i s en t i t l ed t o r e l i e f , a n d
wh at rel i ef can be award ed

. In t rat ex , 2 2 S.W .3 d at 4 0 3

. I t a l s o d et erm i n es wh i ch

p art i es wi l l b e b o u n d b y t h e ju d g m en t

. Id

. Fo rd Mo t o r C o
. v
. Sh el do n , 2 2 S.W .3 d
4 4 5 , 4 5 3 (Tex

. 2 0 00 ). Bai l ey v
. Kem p er Cas u al t y In s
. Co ., 8 3 S.W .3 d 8 4 0, 85 1 (Tex

. 2 0 0 2 ). Fo r t h e cl as s act i o n s et t l em en t t o ap p l y to Lee t he m u s t h av e b een a m em

b er

o f t h e cl as s . Iti s u nd i s p ut ed t h at h e was n o t

. To d et erm i n e wh et her Lee was a m em b er o f t h e cl as s t h i s Co u rt m u s t s i m p l y
l o o k at t h e d efi n i t io n o f cl as s m e m b e r s s et fo rt h i n th e W i l ls on cas e, an d t h e

u n d i s p u t ed fact s wi t h reg ard t o Lee. W il ls o n d efi n ed t h e cl as s as “

. . . al l p ers o n s o r

en t i t i es wh o h av e, o r had at t h e t i m e o f t h e p o li cy ’ s t erm i n at i o n an o wn ers hi p i n t eres t
i n on e o r m o re p ol i ci es i ss ued b y New Yo rk Li fe at an y t i m e d u ri n g t h e cl as s p eri o d.” (CR 3 1 9 ). In d oi n g s o i t i s ap p aren t t hat Lee d i d n o t h av e an o w n ers h i p i n t eres t ei t h er
wh en t h e W i l l s o n ju d g m en t was s i g n ed o n J u l y 2 8 , 1 9 9 5 , o r wh en t h e p o l i ci es were

t erm i n at ed i n M ay

2 01 2 . (CR 7 5 1 ). Th u s b y d efi n i t i o n h e was n o t a m em b er o f t h e
Wi l l s o n cl as s
. Th is s h o ul d en d t h is Co u rt ’ s i n q u i ry an d t h e s u m m ary ju d g m e n t

s h o u ld b e rev ers ed

.

13No t i n Pri v i ty

New Yo rk Li fe arg u ed t o t h e t ri al co u rt t h at o n t h e on e h an d t hat s om eh o w Lee

was i n p ri v i t y wi t h t h e tru s t wh i l e ad m i t ti n g t h at al l o wn ers h i p o f t he t ru s t as

t r a n s f e rred to t he Irrev ocab l e In s u ran ce Tru s t o n J u n e 1 0, 1 9 91

. (CR 8 1 7 , 8 2 0 ).
Th es e p o s i t i o n s are m

u t u al l y ex cl u s i v e.
New Yo rk Li fe cl ai m s p r i v i t y o n t h ree b as es : (1 ) t h at Lee an d t h e t ru s t were
p reced i n g an d s u cceed i n g o wn ers o f t h e p o l i ci es ; (2 ) Lee’ s ex t ra-co n t ract u al cl ai m s

were rep res en t ed b y th e tru st an d o t h er n am ed p l ai n ti ffs ; an d (3 ) t h e t ru s t d es i g n at ed

t h e t ru s t ee as h av i n g t h e p o wer t o b i n d “ t h o s e i n t eres t ed i n t h e t ru st

. ” (CR 8 2 0 ).

No n e o f t h es e are su p po rt ed b y t h e s u m m ary ju d g m en t ev i den ce an d req u i red t h e t ri al

co u rtt o i m

p ro perl y p res u m e t h ey

were co rrect

. Th ere is n o s p eci fi c defi n i t i o n o f p ri v i t y t h at can b e ap p l i e d i n res ju d i cat a

cas es
. Tru ck In s
. E x ch an g e v
. M i d -Co n t i n en t Cas

. Co ., 32 0 S.W

. 3 d 61 3 , 6 1 8 (Tex

. Ap p
. – A u s t i n 2 0 1 0 , n o p et .); Hi l l v
. Tx An A n es t h es i a M g m t

. LLP, 4 4 3 S.W .3 d 4 1 6,
4 2 4 -2 5 (Tex

. Ap p
. – Dal l as 2 0 14 , n o p et .). Each cas e req u i res an ex am i n at i o n o f t h e
p art i cu l ar fact s an d ci rcu m s t an ces o f t h e cas e
. Get t y Oi l Co

. v
. In s. Co

. o f N. Am ., 8 4 5 S.W

. 2 d 7 9 4 , 8 00 (Tex

. 1 9 9 2 ). A pers on can on l y b e i n p ri v i t y i n t h ree way s : (1 )
h e can co n t ro l t h e act i on ev en t h o u gh no t a p art y t o i t ; ( 2 ) h i s i n t e r es t s can b e
rep res en t ed by a p art y t o t h e act i o n ; an d (3 ) h e can b e a s u cces so r i n i n t eres t d eri v i n g
h i s cl ai m t h ro u g h a p art y t o t he p ri o r act i o n
. Hi l l , 4 4 3 S.W .2 d at 4 2 5

. L ee d o es n ot

14fal l i n t o an y o f t h es e t h ree cat eg o ri es
. He co u l d n o t co n t ro l t h e act i o n b ecau s e h e was

n o t a n o wn e r o f t h e p o l i ci es o n t h e t wo rel ev an t d at es
. Hi s i n t eres t s were n ot

rep res en t ed

. Fi n al l y , he d i d n o t d eri v e hi s ex t ra-co n t ract ual cl ai m s fro m t h e t ru s t

. Bas edo n Lee’ s affi d av i t al o n e t h ere i s a d i s p u t ed fact i ss u e t h at m u s t b e d eci d ed t o
fi nd p ri v i t y
. (CR 7 5 1). New Yo rkLi fe’ s arg u m en t s fo r p ri v i t y s t ret ch t h e co n cep t s

o f d u e p ro ces s s o u g h t t o b e p ro t ect ed b y t h e v ery s p eci fi c cl as s m em

b er d efi n i t i o n.
Th i s s h o u l d en d t h is Co u rt ’ s i n q ui ry an d t h e s u m m ary j u d gm en t s h o u l d b e

rev ers ed

. No No ti ce
Fo r arg u m en t’ s s ak e, ev en i f t h i s Co u rt as su m es t h at Lee was a m em b er o f t h e
cl as s du e p ro ces s req ui res t h at he recei v e s o m e n ot i ce t h at th e cl as s act i o n i s p en d i n g

an d t h a t h i s c l a i m s m ay b e ad ju d i cat ed as p art o f i t

. J o hn s on v
. Gen eral M o t o rs
Co rp ., 5 9 8 F.2 d 43 2, 43 8 (5 t h Ci r. 1 9 7 9 ). Ad eq u at e n o ti ce an d o p p o rt u n i t y t o b e
h eard are fu n d am en tal req u i si t es o f t h e co n s t i t u t i o nal g u aran t ee o f pro ced u ral d u e
p ro ces s
. Is o n v
. C a r l il e & J acq u el i n , 4 1 7 U .S. 1 5 6, 1 7 4 (1 9 74 ). In Re ER, 3 8 5
S.W .3 d 5 5 2 fn

. 1 8 (Tex

. 2 0 1 2 )

. Fo r a cl as s m em b er t o be fo rev er b arred fro m
p u rs u i n g an i n di vi d u al d am ag e cl ai m d u e p ro ces s req ui res t h at h e recei v e s o m e fo rm

o f n o t i ce t h at t h e cl as s act i o n i s p en di n g an d h i s d am ag e cl ai m s m ay b e ad ju d i cat ed

as p art o f i t. J o h n s o n v
. G en eral M o t o rs Co rp ., 59 8 F.2 d at 4 3 8

. Here t h e ev i d en ce
i s u n d i s p u t ed t h at Lee d i d n o t recei v e a n o t i ce o f t h e W i ll s on cas e o r i t s s et t l em en t

. 15(CR 82 2 ). Defen d an t s at t em p t t o arg u e t h at b ecau s e t h e t ru s t recei v ed a n o ti ce i t was
g o o d n o t i ce to Lee. Th at i s s i m p l y n o t co rrect . Ag ai n , t h i s s h o ul den dt hi s Co urt ’ s
i n q u i ry an d t h e s u m

m ary ju d g m en t s h o u l db e rev ers ed

. The No ti ce W a s No t Adequa te
As s u m i ng fo r arg u m en t ’ s s ak e t h at Lee was a m em ber o f t he cl as s , an d t h at t h e

n o t i ce t o t h e t ru s t was n o ti ce t o h i m , t h e n o t i ce i t s el f was s t il l i n ad eq u at e t o i n fo rm
Lee t h at h i s ri g h t s co u l d b e p recl u d ed b y t h e s et t l em en t

. Res j u d icat a wi l l n o t b ar a

s u b s eq u en t s u i t fo r d am ag es i f t h e no t i ce do es n o t ad eq uat el y in fo rm an ab sen t cl as s

m em b er o f h i s ri g h t s u n d er t h e s et t l em en t

. e.g

. Pi n s o n v. Term in al Tran sp o rt Co ., 6 3 4
F.2 d 9 8 9, 9 9 5 (5 t h C i r
. 1 9 8 1 ); Bo g ard v
. Co o k , 5 86 F.2 d 3 9 9 (5 t h Ci r. 19 7 8 ). Th e

n o t i ce m u s t co nt ai n an ad eq uat e d es cri p t i o n o f t h e p ro ceed i n g wri tt en i n an o b ject i ve,

n eu tral term s t h at i n s o far as po s s i b le m ay b e u n d ers t o o d b y t h e av erag e ab s en t ee cl as s

m em b er. I n r e : N i s s an M o t o r Co rp
. An ti t ru s t Li t i g., 55 2 F.2 d 1 08 8 (5 t h Ci r. 1 9 7 7 ).

In es s en ce, t h e co n t en t o f t h e n o t i c e m u s t m eet d u e p ro ces s req u i rem en t s i n g i v i n g

n o t i ce t h at t h e s et t l em en t cl as s can u s e t o d et erm i n e wh et her th ey are i n cl u d ed

. Th e

n o t i ce h ere d es cri b ed t h e s et t l em en t cl as s as th o s e wh o “ h av e o r h ad at t h e t im e o f t h e
Po l i ci es ’ t e rm i n at i o n an o w n ers h i p i n t eres t i n o n e o r m ore Po l i ci es .” Had Lee
recei v ed a n o t i ce, t h e n o ti ce d i d n o t al ert hi m t h at h i s cl ai m s were b ei n g s e t t l ed ,

m erel y t h o se o w n e d b y t he t ru s t

. Su ch a no t i ce d i d n o t ad eq u at el y i nfo rm Lee t h at

16h i s cl ai m s were b ei n g s et t l ed b y t h e cl as s s et t l em e n t

. T h i s s h ou l d fi n al l y en d t h i s

Co u rt ’ s i nq u i ry

an d t h e s u m

m ary ju d g m en t s h o u l db e rev ers ed

. C O N C L U S I O N
Bas ed up o n th e u n d i sp u t ed ev i d en ce, t h e t ri al co u rt erred in g ran ti ng s u m m ary ju d g m en t b as ed o n res ju d i cat a ag ai n s t Lee. He was n o t a m em b er o f t h e cl as s , d id

n o t recei v e n o t i c e , an d t h e n o t i ce wo u l d n o t h av e ap p ri s ed h i m o f t he lo s s o f h i s
cl ai m s . Th erefo re s u m

m ary ju d g m en t was i m

p ro p er.


### P RAYER
W HEREFORE, PREM ISES CONSIDERED, Ap p el lan t , M ICHAEL D. LEE,

p ray s t h at t he Co u rt rev ers e t h e t ri al co u rt ju d g m en t , rem an d t h e cas e fo r t ri al , an d fo r

s u ch ot h er an d fu rt h er rel i ef t o wh i ch h e m ay s ho w h im sel f t o b e en t i t l ed

.

Res p ect fu l ly

s u b m i t t ed ,

/ s / Jo hn R

. M er cy J o hn R. M ercy Tex as St at e Bar No . 1 3 9 4 7 20 0 M E R C Y p C A R T E R p T I D W E LL , L

. L

. P

. 1 7 24 Gal l eri a Oak s Dri v e Tex ark an a, TX 7 5 5 03 Tel ep h o n e: (9 0 3 ) 7 94 -9 4 19 Facs i m i l e: (9 0 3 ) 7 9 4-1 2 6 8 Em ai l : jm ercy @ t ex ark an al awy ers .co m

1 7J am es A. Ho l m es Tex as St at e Bar No . 0 0 7 8 4 29 0 T H E L A W O F F I C E O F J A M E S H O LM E S , P C 2 1 2 So ut h M ars h al l Hen d ers on , TX 7 5 6 5 4 Tel ep h o n e: (9 0 3 ) 6 5 7 -2 80 0 Facs i m i l e: (9 0 3 ) 6 5 7-2 8 5 5 Em ai l : jh @ Jam es Ho l m es L aw.co m
ATTORNEYS FOR APPELLANT



### C ERTIF ICATE OF 

### S ERVICE
I h ereb y cert i fy t h at o n No v em b er 9 , 2 0 1 5 , a t ru e a n d c o rrect co py o f t h e fo reg o i n g Br i ef o

f Ap p el la nt was s erv ed o n al l co u n s el o f reco rd fo r Ap p el l ees b y t h e El ect ro n i c Serv i ce Pro v i d er as fo l l ows :
M s . LaTo y i a Pi erce W I LS O N , E LS E R , M O S K O W I T Z , E D LE M A N & D I C K E R L LP 4 8 0 0 Ban ko f Am eri ca Pl aza 9 0 1 M ai n St reet Dal l as , TX 7 52 0 2 Em ai l : lat oy i a.p i erce@ wi l s o n el s er.co m
M r. An d rew J u b i n s k y Em ai l : an dy .jub in s ky @ fi g d av .co m M r. Ry an M cCo m

b er Em ai l : ry an .m cco m

b er@ fi g dav .co m F I G A R I & D A V E N P O R T , L LP 3 4 0 0 Ban ko f Am eri ca Pl aza 9 0 1 M ai n St reet Dal l as , TX 7 52 0 2
/ s / Jo hn R
. M er cy J o hn R. M ercy

18

### C ERTIF ICATE OF 

### C OMP LIANCE

Pu rs uan t t o Tex

. R. Ap p
. P. 9 .4 , I hereb y cert i fy t ha t t h e fo reg o i n g Bri ef o f Ap p el l an t co n t ai n s 2 ,9 07 wo rd s
. Th i s is a co m p u t er-g en erat ed d o cu m en t creat ed in W o rd Perfect u s i n g 1 4 -p o in t ty p eface. In m ak i n g t h i s cert i fi cat e I am rel y i n g o n t h e wo rd co u n t p ro v i d ed b y

t h e s o ft ware u s ed t o p rep are t h e d ocu m en t

.

/ s / Jo hn R

. M er cy J o hn R. M ercy

19

## A P P EN D IX

A - Ord er Gran t i n g Defen d an t s’ M o t i o n fo r Su m m ary J u d gm en t (CR 1 0 74 an d SCR 1 0 6 5 )

B - Cl as s M em

b er Defi n i t i o n (CR 3 1 9)