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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Refusal to Provide Workers’ Compensation is Expensive
Post 5240
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In Illinois Department of Insurance, Insurance Compliance Department v.USA Water And Fire Restoration, Inc., And Nicholas Pacella, Individually And As Officer, Nos. 23WC021808, 18INC00228, No. 25IWCC0467, the Illinois Department of Insurance (Petitioner) initiated an investigation after the Injured Workers’ Benefit Fund (IWBF) was added to a pending workers’ compensation claim. The claim alleged a work-related injury during employment with the Respondents who failed to maintain workers’ compensation Insurance.
Company Overview:
USA Water & Fire Restoration, Inc. was incorporated on January 17, 2014, and dissolved on June 14, 2019, for failure to file annual reports and pay franchise taxes. It then operated under assumed names including USA Board Up & Glass Co. and USA Plumbing and Sewer. The business ...
Arsonist Incompetently Moves Pro Se to Avoid Prison
Post 5239
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In Christopher A. Barosh v. Morris Houser, et al., Civ. No. 22-0769, United States District Court, E.D. Pennsylvania (November 25, 2025) a convicted arsonist and insurance fraudster moved the USDC acting in Pro se filed Objections to Magistrate Judge Reid’s Recommendation that the US District Judge dismiss his § 2254 Petition to avoid jail.
BACKGROUND
In October 2005, Barosh set fire to his girlfriend’s Philadelphia home — some 25 hours before the cancellation of the property’s insurance policy. Several witnesses saw Barosh leaving the property shortly before the fire erupted. After the fire, Barosh made “two separate admissions of guilt.”
He attempted to pay an acquaintance to provide him with an alibi for the time of the arson. The eyewitnesses, brother, and ...
Conditional Release Allows Supplemental Claims
Post 5238
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A Release Should Totally Resolve Dispute
In Harvey et al. v. Hall, No. A25A1774, Court of Appeals of Georgia, Fourth Division (December 3, 2025) Paul Harvey, an employee of Arthur J. Dovers (d/b/a 3D Mobile Home Services), drove a truck towing a trailer loaded with machinery and equipment. Harvey fell asleep, veered off the road, and crashed into a culvert, causing Lamar Hall serious injuries.
FACTS OF SETTLEMENT
On August 18, 2020, Hall signed a limited liability release under OCGA § 33-24-41.1, releasing Harvey, Dovers, and their insurer (Georgia Farm Bureau Insurance Company) from liability for the accident in exchange for $50,000, “except to the extent other insurance coverage is available which covers the claim.”
Dovers’s general liability insurer (Republic-Vanguard ...
The Professional Claims Handler
Post 5219
Posted on October 31, 2025 by Barry Zalma
An Insurance claims professionals should be a person who:
Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.
How to Create Claims Professionals
To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
The History Behind the Creation of a Claims Handling Expert
The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210
This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster
When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.
I was initially sat at a desk reading a text-book on insurance ...
