Opinion ID: 2570487
Heading Depth: 1
Heading Rank: 8

Heading: Shaw v. Coomes

Text: In this case, Boone represented the plaintiff against Coomes, Inc., the Farmer's National Bank, and two individual bank officers. The suit was filed in the district court of Phillips County, and Judge Charles Worden presided. The petition alleged that Francis Shaw and Rick Coomes entered into a contract to construct a building on land owned by Coomes. Shaw alleged that Coomes paid him $15,825 in the form of a check for a portion of the services rendered by Shaw. Shaw alleged that he accepted the check based on fraudulent promises made by the bank to Coomes that the bank would lend or deposit money into Coomes' bank account to cover the check. Shaw also alleged that the bank breached a contract to lend money to Coomes, arguing Shaw was a third-party beneficiary to that contract. The bank filed a motion for summary judgment, which was denied. After the close of Shaw's evidence, the trial court dismissed all claims against the defendants as having no basis in fact or law. Facts defeating Shaw's claim included that the bank had not made an unconditional promise to loan Coomes the money to cover the check, but had made the promise upon the condition that Coomes would be able to convey a free and clear title to the bank on the mortgage, and, due to an IRS filing on the property, Coomes was unable to meet that condition. Shaw's claim against the bank defendants was also defeated as a matter of law. Shaw brought the suit as a third-party beneficiary of the bank's promise to Coomes regarding payment of the check. The court found that Shaw was not a third-party beneficiary but rather an incidental beneficiary and, as such, had no standing to bring the claim. The defendants filed a motion for assessment of costs of frivolous claim against Boone, pursuant to K.S.A. 60-2007 (since repealed). The judge ordered Boone to pay the defendants' costs and attorney fees of $10,423.51. The judge denied Boone's motion for reconsideration. The issue was appealed to the Kansas Court of Appeals where, in an unpublished per curiam opinion, the order to pay costs and fees was affirmed. The Supreme Court denied review. At the disciplinary hearing, Boone asserted his good faith in bringing the case. To demonstrate the basis of his good faith, Boone referred the Panel to portions of depositions taken in the case upon which he based the theories of recovery in the case. Key to the issue of Boone's good faith in bringing the fraud claim against the bank was the question of whether a bank officer, Bob Kaup, represented to Coomes that the bank would unconditionally guarantee Coomes' bank account for the amount of the check. Boone referred the Panel to evidence that Kaup had authority to make unsecured loans in amounts under $50,000. He pointed to a deposition in which Coomes stated that Kaup unconditionally guaranteed payment of the check. Boone testified to the Panel that at trial, Coomes unexpectedly changed her statement and testified that Kaup told her the check would be covered if she qualified for a loan. Boone further showed the Panel deposition evidence that Kaup received notice of the tax lien the day before he assured Coomes that the check would be paid by the bank. The Panel found that Boone had filed a frivolous lawsuit and concluded that Boone had violated KRPC 3.1 in filing a claim against the bank and its officers when the claim was not supported by the facts or the law. Boone takes exception to the Panel's finding that he filed a frivolous lawsuit. He points out that the trial court denied the defendants' motion for summary judgment and concludes that this fact establishes that the lawsuit was not frivolous.