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Insurance Claims professional presents articles and videos on insurance, insurance Claims and insurance law for insurance Claims adjusters, insurance professionals and insurance lawyers who wish to improve their skills and knowledge. Presented by an internationally recognized expert and author.
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April 21, 2025
Velawcity Allegedly Committed Barratry on Behalf of Lawyers

To Be Sued for Barratry in Texas the Court Must Have Jurisdiction
Post 5050

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A LAWYER WHO PAYS OR GIVES OR OFFERS TO PAY OR GIVE A PERSON MONEY OR ANYTHING OF VALUE TO SOLICIT EMPLOYMENT COMMITS BARRATRY IN TEXAS

A lawsuit that involved claims for alleged barratry and conspiracy to commit barratry filed by Appellants against the law firm McClenny Mosley & Associates, PLLC, Texas attorneys James McClenny and Zach Mosley, their Louisiana partner Richard William Huye, III, and Appellee Tort Network, LLC d/b/a Velawcity (“Velawcity”), an Arizona company that executed several Marketing Service Agreements with the law firm to provide advertising and marketing services. An appeal to the Court of Appeals of Texas involved the trial court’s order sustaining Velawcity’s special appearance and dismissing Appellants’ claims against Velawcity for lack of jurisdiction.

In Wayne J. Adams, Bonnie Brown, Claude Britton, III, Curtis Davis, Carey D. Yazeed, Dwane Borel, James S. Dartez, Lloyd Cox And Lynda I. Jenkins v. Tort Network, LLC D/B/A Velawcity, No. 01-24-00169-CV, Court of Appeals of Texas, First District (March 18, 2025) the trial court’s ruling was affirmed.
Background of the Case

The Appellants, who are Louisiana residents, alleged that following Hurricane Ida, they were solicited through an illegal barratry scheme that involved Velawcity and the law firm McClenny Mosley & Associates, PLLC (MMA). The Appellants contend that from December 2021 to August 2022, MMA entered into multiple Marketing Service Agreements with Velawcity to provide marketing services, which included prescreening potential clients for legal claims related to the hurricane.

The Appellants asserted that these contracts were executed in Texas and that Velawcity acted as an agent for MMA in soliciting clients unlawfully. They are seeking damages for four acts of barratry allegedly committed against each of them, totaling $360,000.

Jurisdictional Issues

The primary issue was whether the Texas courts have personal jurisdiction over Velawcity. The Appellants argue that Velawcity has sufficient contacts with Texas due to its contracts with MMA, which they claim involved the solicitation of clients in violation of Texas law. They assert that Velawcity’s actions constituted a tort committed in Texas, thus invoking the Texas long-arm statute. In contrast, Velawcity argues that its activities were primarily conducted in Louisiana and that it does not maintain any business presence in Texas, nor did it solicit clients for MMA in Texas.

Velawcity’s Defense

Velawcity filed a special appearance to contest the jurisdiction, asserting that it lacks minimum contacts with Texas necessary for the court to assert jurisdiction. It highlighted that the solicitation occurred in Louisiana and that the Appellants are also Louisiana residents. Velawcity emphasized that it had no physical presence or business operations in Texas, and that any communications regarding the contracts were not sufficient to establish jurisdiction.

Trial Court’s Ruling

The trial court ultimately sustained Velawcity’s special appearance, concluding that the Appellants failed to demonstrate sufficient contacts to establish specific jurisdiction in Texas. The court noted that while the contracts were significant, they did not connect Velawcity to Texas in a manner that would justify jurisdiction.

Conclusion

The court affirmed the decision to dismiss the claims against Velawcity for lack of jurisdiction, emphasizing that the alleged tortious conduct took place outside Texas and that the Appellants did not provide adequate evidence to establish a substantial connection between Velawcity’s activities and the operative facts of the case.

The Appellants’ claims against Velawcity were dismissed, leaving them to pursue their case against the other defendants, MMA and individual attorneys involved in the alleged Barratry scheme.

ZALMA OPINION

The suit against Velawcity would have had no jurisdictional difficulty if filed in Louisiana but the Plaintiffs could find no contact with Texas, that recognizes a Barratry tort, other than the fact that it signed a contract with MMA which practices in Texas. MMA has been sued multiple times, is in bankruptcy and there is a supposedly active FBI investigation into criminal conduct by MMA and its lawyers. The Plaintiffs, who are residents of Louisiana can be sued separately in Louisiana courts for their alleged misconduct.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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00:07:55
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19 hours ago
ANTI-SLAPP MOTION SUCCEEDS

Convicted Criminal Seeks to Compel Receiver to Protect his Assets

Post number 5291

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The Work of a Court Appointed Receiver is Constitutionally Protected

In Simon Semaan et al. v. Robert P. Mosier et al., G064385, California Court of Appeals, Fourth District, Third Division (February 6, 2026) the Court of Appeals applied the California anti-SLAPP statute which protects defendants from meritless lawsuits arising from constitutionally protected activities, including those performed in official capacities. The court also considered the doctrine of quasi-judicial immunity, which shields court-appointed receivers from liability for discretionary acts performed within their official duties.

Facts

In September 2021, the State of California filed felony charges against Simon Semaan, alleging violations of Insurance Code section 11760(a) for making...

00:06:14
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February 19, 2026
Who’s On First – an “Other Insurance Clause” Dispute

When There are Two Different Other Insurance Clauses They Eliminate Each Other and Both Insurers Owe Indemnity Equally

Post number 5289

In Great West Casualty Co. v. Nationwide Agribusiness Insurance Co., and Conserv FS, Inc., and Timothy A. Brennan, as Administrator of the Estate of Pat- rick J. Brennan, deceased, Nos. 24-1258, 24-1259, United States Court of Appeals, Seventh Circuit (February 11, 2026) the USCA was required to resolve a dispute that arose when a tractor-trailer operated by Robert D. Fisher (agent of Deerpass Farms Trucking, LLC-II) was involved in a side-impact collision with an SUV driven by Patrick J. Brennan, resulting in Brennan’s death.

Facts

Deerpass Trucking, an interstate motor carrier, leased the tractor from Deerpass Farms Services, LLC, and hauled cargo for Conserv FS, Inc. under a trailer interchange agreement. The tractor was insured by Great West Casualty Company with a $1 million policy limit, while the trailer was insured by Nationwide Agribusiness Insurance Company with a $2 million ...

00:08:46
February 18, 2026
Win Some and Lose Some

Opiod Producer Seeks Indemnity from CGL Insurers

Post number 5288

Read the full article at https://lnkd.in/guNhStN2, see the full video at https://lnkd.in/gYqkk-n3 and at https://lnkd.in/g8U3ehuc, and at https://zalma.com/blog plus more than 5250 posts.

Insurers Exclude Damages Due to Insured’s Products

In Matthew Dundon, As The Trustee Of The Endo General Unsecured Creditors’ Trust v. ACE Property And Casualty Insurance Company, et al., Civil Action No. 24-4221, United States District Court, E.D. Pennsylvania (February 10, 2026) Matthew Dundon, trustee of the Endo General Unsecured Creditors’ Trust, sued multiple commercial general liability (CGL) insurers for coverage of opioid-related litigation involving Endo International PLC a pharmaceutical manufacturer.

KEY FACTS

Beginning as early as 2014, thousands of opioid suits were filed by governments, third parties, and individuals alleging harms tied to opioid manufacturing and marketing.

Bankruptcy & Settlements

Endo filed Chapter 11 in August 2022; before bankruptcy it ...

00:08:32
February 19, 2026

Passover for Americans
Posted on February 19, 2026 by Barry Zalma
“The Passover Seder For Americans”

For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lost the ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah. Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and wonder how did all these wonderful things come into being. Jews believe the force we call G_d created the entire universe and everything in it. Jews feel G_d is all seeing and knowing and although we can’t see Him, He is everywhere and in everyone.We understand...

February 19, 2026

Passover for Americans

Posted on February 19, 2026 by Barry Zalma

Read the full article at https://www.linkedin.com/pulse/passover-americans-barry-zalma-esq-cfe-5vgkc.

Available at https://www.amazon.com/Passover-Seder-American-Family-Zalma-ebook/dp/B0848NFWZP/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=1584364029&sr=8-4

“The Passover Seder For Americans”

For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lostthe ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah.

Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and ...

January 30, 2026
Anti-Concurrent Cause Exclusion Effective

You Get What You Pay For – Less Coverage Means Lower Premium

Post number 5275

Posted on January 30, 2026 by Barry Zalma

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When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies

In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.

Facts and Background

Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...

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