Opinion ID: 894601
Heading Depth: 1
Heading Rank: 3

Heading: Jenkens's Motion for Summary Judgment

Text: 239 JV claims that it retained Jenkens to assist it in selling 11 acres and that Joe's leadership role, discussion, preparation, and vote regarding the moratorium created an impermissible conflict, the nondisclosure of which breached the fiduciary duty and duty of loyalty Joe and Jenkens owed to 239 JV. Jenkens contends that Joe's legislative immunity shields Joe from liability for 239 JV's claims for breach of its fiduciary duty and duty of loyalty and that the potential liability that Jenkens faces derives from its shareholder's actions as a city councilperson. We agree that without Joe's actions in this case, no conflict of interest would exist on which to predicate Jenkens's potential liability to 239 JV. Thus, if Joe is immune from liability, Jenkens cannot be derivatively liable for Joe's actions. See DeWitt v. Harris County, 904 S.W.2d 650, 654 (Tex.1995) (holding that an employer is entitled to assert any affirmative defenses  including official immunity  that its employee may assert); accord Harris County v. Louvier, 956 S.W.2d 106, 110 n. 8 (Tex.App.-Houston [14th Dist.] 1997, no pet.) ; see also Cameron Compress Co. v. Kubecka, 283 S.W. 285, 287 (Tex.Civ.App.-Austin 1926, writ ref'd) (Respondeat superior declares the act of the servant to be the act of the master, and that which excuses or justifies the one will in like manner excuse and justify the other.). We therefore initially address the parties' contentions regarding legislative immunity for Joe's actions. This Court has recognized that individuals acting in a legislative capacity are immune from liability for those actions. In re Perry, 60 S.W.3d 857, 859 (Tex.2001). Legislative immunity applies to legislators at the federal, state, regional, and local levels of government  including city council members  who are performing legitimate legislative functions. Bogan v. Scott-Harris, 523 U.S. 44, 53, 118 S.Ct. 966, 140 L.Ed.2d 79 (1998) (stating that legislative immunity extends to local legislators); Tenney v. Brandhove, 341 U.S. 367, 376, 71 S.Ct. 783, 95 L.Ed. 1019 (1951) (noting that legislative immunity only protects actions within the sphere of legitimate legislative activity); In re Perry, 60 S.W.3d at 860; see, e.g., Clear Lake City Water Auth. v. Salazar, 781 S.W.2d 347 (Tex.App.-Houston [14th Dist.] 1989, orig. proceeding [leave denied]); see also Lake Country Estates, Inc. v. Tahoe Reg'l Planning Agency, 440 U.S. 391, 402-05, 99 S.Ct. 1171, 59 L.Ed.2d 401 (1979) (extending absolute immunity to members of a regional planning agency, which was created by two states' compact and consented to by Congress); Butz v. Economou, 438 U.S. 478, 511-13, 98 S.Ct. 2894, 57 L.Ed.2d 895(1978) (recognizing absolute immunity for Department of Agriculture officials when performing legislative and prosecutorial functions). The Court assumes, without deciding, that Joe's activities in support of the moratorium on apartment construction created an impermissible conflict with his duties to 239 JV as a Jenkens shareholder. We hold that legislative immunity shields Joe from liability for any conflict of interest created by legitimate legislative functions undertaken in connection with his position as a city councilperson. We now analyze whether Jenkens established as a matter of law that the actions on which 239 JV based the alleged conflict of interest constitute legitimate legislative functions. 239 JV's pleading claimed that Joe's leadership role, discussion or vote in favor of the moratorium created a conflict of interest that adversely affected 239 JV. Specifically, 239 JV claimed that Joe was the acknowledged leader of the faction of Irving citizens who oppose[d] apartment construction. 239 JV also alleged that Joe used the resources available to him at [Jenkens] and ... had legal research performed at his request and under his direction to further the interests of the citizens group opposed to apartment construction and his political goals and interests to the detriment of 239 JV. Jenkens's summary judgment evidence establishes as a matter of law that the actions that 239 JV claims created a conflict of interest were legitimate legislative functions undertaken by Joe as a councilperson. First, we consider Joe's vote in favor of and discussion with council members regarding the moratorium. The text of the ordinance, the City Council minutes, and Joe's affidavit establish that the ordinance at issue was a law of general application based on concerns over zoning and commercial development facing the Irving community. Joe testified that he spoke in favor of the moratorium at the September City Council meeting. Hewett's deposition testimony that [i]t was generally believed there was a voting block, including Harry Joe, that Harry Joe controlled does not remove Joe's legislative acts from the protection of legislative immunity. We hold that Joe's discussion, persuasion of colleagues, and vote on the ordinance were legitimate legislative functions. We also conclude that Joe's alleged leadership role in supporting the moratorium and opposing apartment construction constituted legitimate legislative functions. Joe testified that citizens expressed concerns that an increasing number of multi-family dwellings would impact crime, gangs, schools, and parks in the area, and he concluded that the moratorium was appropriate until Irving could adopt a new comprehensive plan for development. Joe testified that he communicated with several constituents regarding the moratorium and their concerns about the increased number of multi-family dwellings in the area. Just as voting to impose and extend a moratorium on apartment construction constituted a legitimate legislative function, so was Joe's involvement with his constituents regarding a pending issue before the City Council. [2] Jenkens established as a matter of law that the actions on which 239 JV bases the alleged conflict of interest constitute legitimate legislative functions. 239 JV's claims against Jenkens based on a conflict created by Joe's legislative actions fail because 239 JV's claims against Jenkens derive from Joe's actions. Because Joe is immune from liability for any conflict of interest that may have been created by acts within the sphere of legitimate legislative activity, Jenkens cannot be liable for those activities or for a conflict of interest created by those activities. We conclude that the trial court properly granted Jenkens's motion for summary judgment because Joe is immune from liability for failing to disclose a conflict of interest, and because of this immunity, Jenkens cannot be held derivatively liable. See DeWitt, 904 S.W.2d at 654 . We briefly address the summary judgment evidence showing that Joe met with representatives from 239 JV to discuss whether the 11-acre tract would be appropriate for a waiver from the ordinance. 239 JV claims that Joe gave its representatives legal advice that 239 JV was a good candidate to obtain a waiver. Whether Joe's comments could be construed as legal advice does not change our analysis. 239 JV complains that Joe's actions in favor of the moratorium were contrary to 239 JV's interests and therefore constituted a conflict of interest. We conclude that despite 239 JV's status as a Jenkens client and Joe's position as a shareholder in the firm, Joe is immune from liability for conflicts created by his legislative acts. Thus, even if Joe provided 239 JV with legal advice, Joe is immune from claims that his legislative activities created a conflict with the client's interests.
239 JV alleges that Joe and Jenkens committed legal malpractice by negligently failing to inform 239 JV of a matter material to the representation, the September 7, 1994 Irving City Council meeting at which the moratorium on apartment construction passed. 239 JV claims that timely disclosure of the impending Council vote on the moratorium would have allowed it to grandfather its property under an exception to the moratorium and then consummate the pending contract on the 11-acre tract. To recover on a claim for legal malpractice, the plaintiff must establish: (1) the attorney owed the plaintiff a duty, (2) the attorney breached that duty, (3) the breach proximately caused the plaintiff's injuries, and (4) damages occurred. Peeler v. Hughes & Luce, 909 S.W.2d 494, 496 (Tex.1995). Generally, a lawyer's fiduciary duties to a client, although extremely important, extend[ ] only to dealings within the scope of the underlying relationship of the parties. See Rankin v. Naftalis, 557 S.W.2d 940, 944 (Tex.1977) ; see also Joseph v. State, 3 S.W.3d 627, 639 (Tex.App.-Houston [14th Dist.] 1999, no pet.) (The nature of the attorney-client relationship defines an attorney's duties and the professional services to be rendered.); Restatement (Third) of the Law Governing Lawyers § 16 cmt. c; § 50 cmt. d (2000) (a lawyer's duties are ordinarily limited to matters covered by the representation). While it is true that an attorney owes a client a duty to inform the client of matters material to the representation, Willis v. Maverick, 760 S.W.2d 642, 645 (Tex.1988), this duty to inform does not extend to matters beyond the scope of the representation. See, e.g., Joseph, 3 S.W.3d at 639 (noting that an attorney could not render ineffective representation to a criminal defendant on offenses for which she was not retained to represent defendant); Klager v. Worthing, 966 S.W.2d 77, 83 (Tex.App.-San Antonio 1996, no writ) (holding that law firm did not assume a duty to supervise a client's medical care despite agreeing to represent client in silicone breast implant litigation); Restatement § 50 cmt. d (a lawyer is not liable for failing to act beyond the scope of representation). In fact, the lawyer may not act beyond the scope of the contemplated representation without additional authorization from the client. Tex. Disciplinary R. Prof'l Conduct 1.02; Restatement § 16, cmt. c; § 27, cmt. e. In this case, 239 JV argues that Joe and Jenkens had a duty to inform 239 JV of the September 7, 1994 meeting. Viewing the facts in the light most favorable to 239 JV, the scope of Jenkens's representation included Thau's reviewing and drafting sale documents for the 11-acre tract but did not include representation of 239 JV in matters before the Irving City Council. Arthur Hewett, a principal in 239 JV, confirmed that 239 JV handled its planning and zoning issues before the Irving City Council internally and that Jenkens never represented 239 JV in such matters. Such matters were thus beyond the agreed scope of representation between 239 JV and Jenkens. Moreover, the scheduling of the September 7th Council meeting was a matter of public record to which 239 JV had access. The nature of the meeting was publicly available, as evidenced by the fact that other developers took action to grandfather their plats upon learning of the pending moratorium. Because representing 239 JV before the City Council was not included in the scope of Jenkens's representation, Jenkens had no duty to inform 239 JV of the September 7, 1994 meeting. Thus, the trial court properly granted summary judgment in favor of Jenkens on 239 JV's claim that Jenkens negligently failed to inform 239 JV about the September 7, 1994 City Council meeting on the moratorium.