No Interlocutory Appeal from Denial of Ken Paxton’s Plea to Jurisdiction in Disciplinary Case

Paxton v. Commission for Lawyer Discipline
Dallas Court of Appeals, No. 05-23-00218-CV (April 18, 2024)
Justices Nowell (Opinion, linked
here), Miskel
(Dissent, linked
here), and Kennedy

 More fallout from failed
litigation regarding purported irregularities in the 2020
presidential election. A day after one panel of
the Dallas Court of Appeals unanimously affirmed summary judgment rejecting the State Bar’s disciplinary charges
against Sidney Powell—largely because of the Bar’s less-than-ideal briefing at
trial and on appeal—another divided panel of that same court found it lacked
jurisdiction to review a trial court’s denial of Ken Paxton’s plea to the jurisdiction regarding the
Bar’s disciplinary action against him.
The
State Bar’s Commission for Lawyer Discipline alleged that Paxton made “‘dishonest’
representations to the Supreme Court [in his role as lead counsel for the
State] in Texas v. Pennsylvania.” The Commission contended these alleged
misrepresentations “constitute[d] professional misconduct and violate[d] Rule
8.04(a)(3) of the Texas Disciplinary Rules of Professional Conduct.” Paxton
filed a plea to the trial court’s jurisdiction, asserting the Commission’s
action violated the separation-of-powers doctrine and was barred by sovereign
immunity. When the trial court denied that plea, Paxton sought appellate review
pursuant to TCPRC § 51.014(a)(8), which authorizes interlocutory appeal from an
order that “grants or denies a plea to the jurisdiction by a governmental unit”
of the State or, by judicial extension, a plea by a State official sued in his
or her official capacity. Paxton contended that, because Texas law directs only
the Attorney General to “prosecute and defend all actions in which the state is
interested,” the Bar Commission’s case was effectively leveled against him in
his official capacity and the AG’s office itself; the denial of his plea,
therefore, fell within § 51.014(a)(8).
But
the Dallas Court disagreed. The Court noted that the Commission did not
challenge the AG’s discretionary decision to file the Texas v.
Pennsylvania
lawsuit, but instead targeted specific alleged
misrepresentations made by Paxton as counsel in that case. And the Commission
sought no relief against the AG’s office or Paxton in his official capacity,
but only against Paxton individually as an attorney licensed by the State of
Texas. Therefore, the Court concluded, the trial court’s denial of Paxton’s
plea to the jurisdiction did not fall within § 51.014(a)(8), and it had no
jurisdiction to hear the interlocutory appeal.
Justice
Emily Miskel dissented. A lot. She would have found jurisdiction for the appeal
under § 51.014(a)(8) and reversed the trial court’s denial of Paxton’s plea to
the jurisdiction, arguing the Commission’s action targeted Paxton in his
official capacity and was barred by the separation-of-powers doctrine as well
as sovereign immunity. She went on to contend the Commission’s complaint also
was defective on the merits.
Last
year—foreshadowing this case—the El Paso Court of Appeals rejected separation-of-powers
and sovereign-immunity defenses in a similar disciplinary action brought by the
Commission against First Assistant AG Brent Webster, also based on alleged
misrepresentations in Texas v. Pennsylvania. Comm’n for Lawyer Discipline
v. Webster
, 676 S.W.3d 687 (Tex. App.—El Paso 2023). Webster filed a
petition for review in the Supreme Court of Texas. The petition remains pending,
with briefs on the merits having been requested and filed. So, there’s more to
come in Webster and likely in the Paxton case, as well.

Carrington Coleman Partners Honored Among Dallas’ Top Lawyers

Recognizing the most respected attorneys in North Texas, the 2024 edition of D Magazine’s “Best Lawyers in Dallas” features 14 Carrington Coleman attorneys, representing 11 unique practice areas.

Firm Attorneys selected among the Best Lawyers in Dallas are:

Cathy Altman, Construction Litigation

Katie Anderson, Business/Commercial Litigation

Mark Castillo, Bankruptcy & Workout

David Drumm, Real Estate

D. Wade Emmert, Transactional Healthcare

Whitney Keltch Green, Family Law

Kelli Hinson, Appellate

Monica Latin, Business/Commercial Litigation

Bret Madole, Corporate Law: Mergers & Acquisitions

Alex More, Business/Commercial Litigation

Christie Newkirk, Labor & Employment

Marisa O’Sullivan, Insurance Law

Andrea Perez, Intellectual Property: Trademark & Copyright

Jennifer Ryback, Construction Litigation

Best Lawyers in Dallas recognition is based upon peer nominations, with final selection determined through D Magazine editorial review. The complete list is featured in the May edition of D Magazine and is available at www.dmagazine.com.

TRAP 24.2’s $25-million Supersedeas Cap Applies Per Judgment Debtor, Not Per Judgment

Greystar
Development & Construction, LP  v. Williams

Dallas Court of Appeals, No. 05-23-01168-CV
(April 10, 2024)

Justices
Molberg, Carlyle, and Breedlove (Opinion, linked
here)

Ken Carroll

Williams secured a judgment holding
three defendants jointly and severally liable for actual damages of more than
$360 million. The three defendants posted one joint bond in the total amount of
$25 million—the supersedeas “security” cap prescribed by TCPRC § 52.006(b)(2)
and TRAP 24.2(a)(1)(B)—contending this was sufficient to suspend execution
against all three, pending appeal. Pursuant to TRAP 24.1(b)(2), however, the
trial court reviewed the joint bond and found it did not comply with the
statute or the rule and did not suspend enforcement of the judgment. The trial
court reasoned that the $25-million cap applied to each judgment debtor,
rather than to the judgment as a whole. The court directed the defendants to
specify which of them would be covered by the existing bond and then to file
additional bonds for the other two defendants in order to suspend execution. Defendants,
who by then had commenced an appeal on the merits, filed a motion pursuant to
TRAP 24.4 seeking appellate review of the trial court’s ruling. 

The
Dallas Court of Appeals affirmed the trial court’s decision. The Court noted a
split of authority about whether the $25-million cap was to be applied per
judgment or per judgment debtor. In
Huff Energy Fund, LP v. Longview Energy
Co.
, a divided panel of the San Antonio Court had held the cap applied to
the judgment as a whole. The Tyler Court, however, came to the opposite
conclusion in
John M. O’Quinn, PC v. Wood. The Tyler court reasoned that
the Civil Practice and Remedies Code defines “security” to mean “a bond or
deposit posted … by a judgment
debtor to suspend execution of the
judgment during appeal of the judgment.” 

The Dallas Court found the reasoning
of the Tyler Court persuasive and adopted its resolution, “hold[ing] that the
$25-million cap in § 52.006 of the Texas Civil Practice and Remedies Code [and
TRAP 24.2] applies per judgment debtor and not per judgment.”

  

i_5214825v.151

 

  

State Bar of Texas – Appellate Section: Nominations to the Texas Appellate Hall of Fame

 

 State Bar of Texas – Appellate Section

 Nominations
to the Texas Appellate Hall of Fame 


A few years ago, CCSB co-founder and appellate legend
Marvin Sloman was inducted into the Texas Appellate Hall of Fame. The
recognition was richly deserved and a great honor for Marvin and the firm.

Now it’s your opportunity to
nominate a worthy practitioner to join Marvin and others in the Hall. The Appellate
Section will honor new Hall of Fame inductees at a presentation and ceremony
during this year’s Advanced Civil Appellate Practice course and Section meeting,
scheduled for September 5-6, 2024. 

Guidelines for nominating someone, as well
as a link for submitting your nomination, are found here
. Nominations
should be submitted no later than Thursday, May 30, 2024.




Carrington Coleman Attorneys Selected Among Texas Rising Stars

Seven Carrington, Coleman, Sloman & Blumenthal, LLP attorneys have earned 2024 Texas Rising Stars honors.

Partner Brent Rubin earned the additional distinction of being named to the top 100 Up-and-Coming young attorneys in the state across all practice areas.

Carrington Coleman attorneys selected to the prestigious Rising Stars legal guide include:

Chris Anaya, Construction Litigation

Stephanie Assi, Business Litigation

Hayden Baker, Mergers & Acquisitions

Ted Harrington, Real Estate

Brent Rubin, Business Litigation

Sven Stricker, Civil Litigation: Defense

Lara Albright Yost, Construction Litigation

Rising Stars recognition is limited to attorneys who are 40 or younger or have been in practice for no more than 10 years. Only 2.5% of eligible attorneys are honored each year, with selection based on peer nominations, editorial evaluation and advisory group review.

The full 2024 listing be found at www.superlawyers.com.

Carrington Coleman Welcomes Accomplished Litigators and Tax Veteran

Carrington, Coleman, Sloman & Blumenthal, LLP, welcomes four well-respected attorneys to its Dallas office, bolstering its litigation and tax planning practices.

The addition of commercial litigation partners Jennifer Ryback and Chris Anaya and senior associate LaCrecia Perkins adds to the firm’s robust capabilities across a wide range of commercial litigation matters. Also joining the firm as senior counsel is experienced tax lawyer David Corkern.

Jennifer Larson Ryback

Ms. Ryback comes with a depth of experience in commercial disputes, employment law issues, construction matters, and a variety of transactional issues involving commercial real estate. She is a former president of the Dallas Association of Young Lawyers and has been honored in D Magazine’s Best Lawyers in Dallas and the Best Lawyers Under 40, and by Texas Super Lawyers Rising Stars. A graduate of Southern Methodist University’s Dedman School of Law, she is also a former recipient of the Texas Women Lawyers’ Brenda Tso Rising Young Lawyer Award.

Chris Anaya

Mr. Anaya’s commercial litigation practice focuses on construction litigation, representing owners, developers, contractors, subcontractors and suppliers in contract disputes and negotiations involving various types of construction projects. His work has earned Best Lawyers in America: Ones to Watch, D Magazine Best Lawyers Under 40 and Texas Super Lawyers Rising Stars honors. He is an associate fellow of the Construction Lawyers Society of America and earned his law degree from Southern Methodist University’s Dedman School of Law.

Ms. Ryback and Mr. Anaya join the firm from McGuire, Craddock & Strother.

LaCrecia Perkins

Ms. Perkins handles litigation in state and federal courts with businesses and individuals from a variety of industries, including real estate, aviation/aerospace, life, health and disability insurance and higher education. She has earned Texas Super Lawyers Rising Stars recognition since 2022 and is a graduate of Texas Southern University’s Thurgood Marshall School of Law.

She joins Carrington Coleman from the Dallas office of Winstead.

David Corkern

Mr. Corkern has represented clients in corporate and tax matters for almost 40 years. Clients rely on his strategic leadership in tax controversy issues and corporate governance issues. He also assists clients with estate and probate matters. He is a Texas Bar Foundation Fellow and a Board Certified Tax Law Specialist by the Louisiana Board of Legal Specialization.

He is a member of the Texas, Louisiana and District of Columbia bar associations and is admitted to practice before the Supreme Courts of Texas and Louisiana, the District of Columbia Court of Appeals, the U.S. Tax Court and the U.S. Court of Appeals for the Fifth Circuit. He joins the firm from Wiley Rein.

D Magazine Selects 7 Carrington Coleman Attorneys Among Dallas’ Best Young Lawyers

Christopher Anaya, Whitney Keltch Green, Debrán O’Neil, Marisa O’Sullivan, Brent Rubin, Jennifer Ryback, and Shelby Taylor are among D Magazine’s Best Lawyers Under 40 for 2024.

This marks the seventh selection to the prestigious listing for Whitney based upon her Family Law practice.

Christopher, Debrán, Jennifer, and Shelby were honored for their Business/Commercial Litigation work. The 2024 recognition marks the fifth for Jennifer, the third for Debrán, and the second for Christopher. It is the first selection for Shelby.

This is the fourth selection for Marisa for her Insurance Law work and the first for Brent in the area of Corporate Law.

Selection is based on peer nominations and extensive review by a panel consisting of esteemed lawyers of varying ages and varying levels of experience.

OVERVIEW OF THE CORPORATE TRANSPARENCY ACT

The Corporate Transparency Act (“CTA”) requires most smaller U.S. companies and many
foreign companies formed or registered in a U.S. State (“Reporting Companies”) to timely report
information about their beneficial owners and certain other individuals to the U.S. Financial
Crimes Enforcement Network (“FinCEN”).

Starting January 1, 2024: Reporting Companies formed or registered in 2024 have 90
days after formation or registration to file their report

Before January 1, 2025: Reporting Companies formed or registered prior to January
1, 2024, must file their report by December 31, 2024

What is a Reporting Company? Any entity formed or registered in the United States by a
filing with a U.S. State unless one of 23 exemptions applies

Who is a Beneficial Owner?

  • Any person that directly or indirectly owns more than 25% of the Reporting Company
  • Certain executive officers and other control persons

What Should You Do Now?

  • Develop policies and procedures to comply with the CTA
  • Determine which of your entities are Reporting Companies
  • Identify Beneficial Owners of each Reporting Company
  • Notify Beneficial Owners of CTA requirements and gather required identifying
  • information
  • Encourage Beneficial Owners to obtain a FinCEN Identifier number
  • Update entity governing documents to address reporting requirements
  • Close any inactive entities before January 1, 2024

This high level summary was prepared by Carrington, Coleman, Sloman & Blumenthal, L.L.P.
for your information only and should not be relied upon as legal advice. Determination of
beneficial ownership and reporting requirements can be complex, and you are encouraged to
consult with your attorney.

Navigating the Corporate Transparency Act: Compliance Essentials for Businesses

Beginning next year, the Corporate Transparency Act (“CTA”) will require most smaller companies to report information regarding their beneficial owners to the Financial Crimes Enforcement Network (“FinCEN”). Reporting companies formed after January 1, 2024, will have 30 days after formation to report this information, and those formed prior to 2024 will have until January 1, 2025. The CTA applies to domestic and foreign entities that are formed or registered to do business in the U.S.  The purpose of the CTA is to make it harder for bad actors to use shell companies or other opaque ownership structures for illicit activities.  This client alert is a high-level summary of some of the requirements of the Corporate Transparency Act and should not be relied on as legal advice.

Reporting Company

The new law imposes reporting obligations on “Reporting Companies,” which include corporations, limited liability companies, and any other similar entity formed or registered to do business in any U.S. state, unless the company qualifies for an exemption. The most notable exemption is for “Large Operating Companies,” which are companies with (1) more than 20 full time employees, (2) more than $5 million in gross revenue from U.S. sources, and (3) a physical presence in the U.S.

Beneficial Owners

A Reporting Company must report detailed information about each of its “Beneficial Owners,” which includes any individual who, directly or indirectly, owns at least 25% of the Reporting Company, or otherwise exercises substantial control over the Reporting Company. Executive officers, managers, and directors of a Reporting Company will generally be treated as Beneficial Owners due to their ability to control the Reporting Company. Reporting Companies that are owned or controlled by other entities will have to look through those entities and report the human that ultimately controls at least 25% of the ownership interests, unless the entity is itself specifically exempt from the reporting requirements.

Company Applicant

“Company Applicants” who form a Reporting Company after December 31, 2023, are also required to furnish information about themselves to FinCEN. Company Applicants are the persons who form the Reporting Company, including both the individual who directly files the formation or registration document and the individual who is primarily responsible for directing the filing. For example, if a law firm forms a new company for a client, both the paralegal filing the documents and the lawyer directing the paralegal to make the filing will be Company Applicants.

Information to be Reported

A Reporting Company will be required to provide information about itself, its Beneficial Owners, and Company Applicants. Information required about the Reporting Company includes its:

  • full legal name and any trade name;
  • current address;
  • jurisdiction of registration or formation; and
  • Taxpayer Identification Number.

Information Required about Beneficial Owners and Company Applicants includes:

  • full legal name;
  • date of birth;
  • current address; and
  • unique identification number from an acceptable form of identification, such as a passport or driver’s license, and a copy of the document.

Use of Beneficial Ownership Information

FinCEN is required to maintain beneficial ownership information on a “secure, nonpublic database.”  Nevertheless, FinCEN may be required to share Beneficial Owner information with other government agencies engaged in national security, intelligence, or law enforcement, including under certain circumstances, state, local and foreign agencies.

Ongoing Reporting Obligations

Reporting Companies will have an ongoing obligation to ensure their reports remain complete and correct. For example, changes in beneficial ownership information will require the Reporting Company to file an amendment within 30 days of the change.

Penalties for Violating the CTA

Failure to meet the reporting requirements can result in civil or criminal penalties including a fine of up to $10,000 and imprisonment for up to two years.

What to do Now

Reporting Companies formed prior to January 1, 2024, should begin collecting the required reporting information from their Beneficial Owners in anticipation of having to report that information next year. Company Applicants and others should put policies and procedures in place to collect beneficial ownership information prior to forming any new Reporting Companies. We recommend that you contact your attorney or other professional who is familiar with the reporting requirements to ensure that you are CTA compliant prior to the January 1, 2024 deadline.

For more information, please contact George Lee (glee@ccsb.com) or Ashley McMillan (amcmillan@ccsb.com).

Carrington Coleman Earns National, Metropolitan Best Law Firm Rankings in 26 Practice Areas

Carrington Coleman has earned national or metropolitan Best Law Firms® recognition in 26 unique practice areas as selected by Best Lawyers®.

With rankings based on client and lawyer feedback, practice-specific peer review, and rigorous editorial evaluation, Best Law Firms recognition signals a firm’s unique credibility within the legal industry.

The firm was ranked among the top firms in the nation – as well as the Dallas/Fort Worth metropolitan area – for both its Regulatory Enforcement (SEC, Telecom, Energy) Litigation and Securities Litigation practices.

Additionally, the firm earned DFW metropolitan recognition in 24 practice areas:

DFW METROPOLITAN TIER 1
Appellate Practice
Bet-the-Company Litigation
Closely Held Companies and Family Businesses Law
Commercial Litigation
Construction Law
Construction Litigation
Employment Law/Management
Family Law
Labor & Employment Litigation
Real Estate Law

DFW METROPOLITAN TIER 2
Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law
Business Organizations (including LLCs and Partnerships)
Employment Law/Individuals
Financial Services Regulation Law
Intellectual Property Litigation
Patent Law
Patent Litigation
Product Liability Litigation Defense
Trusts & Estates Law

DFW METROPOLITAN TIER 3
Corporate Law
Environmental Law
Family Law Mediation
Labor Law /Management
Leveraged Buyouts and Private Equity Law

Best Law Firms rankings are based on client and lawyer feedback, practice-specific peer review, and rigorous editorial evaluation.

To be eligible for a ranking, a law firm must have at least one lawyer named to The Best Lawyers in America© list. Earlier this year 21 Carrington Coleman attorneys were recognized in the 2024 edition of the prestigious legal guide, with an additional 18 attorneys named to the companion Best Lawyers: Ones to Watch list.