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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Happy Law Day
ZIFL – Volume 30, Issue 9 – May 1, 2026
Read the full article at https://www.linkedin.com/pulse/zalmas-insurance-fraud-letter-may-1-2026-barry-zalma-esq-cfe-2tywc, see the video at at and at https://zalma.com/blog plus more than 5300 posts.
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
ZIFL – Volume 30, Issue 9 – May 1, 2026
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year and is written by Barry Zalma.
DOJ Creates National Fraud Enforcement Division
Will the Feds Take on Insurance Fraud? Possibly as Part of a National Anti-Fraud Effort
On April 7, 2026, the Acting Attorney General, Todd Blanche, issued a memorandum establishing the Department of Justice National Fraud Enforcement Division (NFED). The memo describes an ambitious, but perhaps redundant, vision for this ...
When Abalone Died As a Result of Multiple Causes The Efficient Proximate Cause Requires Payment
Post number 5345
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In American Abalone Farms, LLC v. Star Insurance Company et al., H052643, California Court of Appeals, Sixth District (April 27, 2026) the Court of Appeals dealt with an insurance coverage issue that required application of the efficient proximate cause doctrine.
FACTS
American Abalone Farms, LLC ("American Abalone" ) operates an aquaculture farm in Santa Cruz County, California, raising abalone in tanks. In August 2020, the CZU Lightning Complex Fires led to a prolonged power outage and road closures near the farm. As a result, the farm’s water pumps failed, causing the death of most of the ...
Breach of a Specific Condition Precedent Is a Complete Defense
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In United Services Automobile Association and State Farm Mutual Automobile Insurance Company v. Anthony Wenzell, 2026 CO 25 (Colo. Apr. 27, 2026) Anthony Wenzell was rear-ended in a car accident. He had a significant prior 2014 accident that required back surgery.
Wenzell claimed underinsured-motorist (UIM) benefits under three policies: (1) the tortfeasor’s liability policy, (2) his own primary UIM policy with State Farm, and (3) an excess UIM policy issued by USAA (under his brother’s policy, which contained an “other insurance” clause making USAA’s coverage excess over any collectible insurance).
After receiving the claims, both USAA and State Farm repeatedly requested that Wenzell execute comprehensive medical-release authorizations so they could obtain his full medical records and ...
It is Fraud to Make the Same Claim Twice
Read the full article at https://www.linkedin.com/pulse/fraud-make-same-claim-twice-barry-zalma-esq-cfe-c4g8c and at https://zalma.com/blog.
Chutzpah: After Being Paid for a New Roof Insured Makes Second Claim For Same Damages
Post number 5347
No One is Entitled to be Paid for the Same Loss Twice
In Mohammed Ali Khalili v. State Farm Lloyds, No. 14-25-00611-CV, Court of Appeals of Texas (April 30, 2026) Khalili maintained a State Farm Lloyds homeowners insurance policy for decades. In 2008 he filed a roof-damage claim; State Farm paid him to replace the entire roof (shingles and gutters). Khalili never replaced the roof and repeated his claim.
BACKGROUND
In 2021 he filed a second roof claim. State Farm’s inspectors found the roof “very old” with extensive non-storm-related damage. The claim was denied because (1) the damage did not exceed the deductible and (2) State Farm had already paid for a full roof replacement.
PROCEDURAL HISTORY
State Farm filed motion for summary...
It is Fraud to Make the Same Claim Twice
Read the full article at https://www.linkedin.com/pulse/fraud-make-same-claim-twice-barry-zalma-esq-cfe-c4g8c and at https://zalma.com/blog.
Chutzpah: After Being Paid for a New Roof Insured Makes Second Claim For Same Damages
Post number 5347
No One is Entitled to be Paid for the Same Loss Twice
In Mohammed Ali Khalili v. State Farm Lloyds, No. 14-25-00611-CV, Court of Appeals of Texas (April 30, 2026) Khalili maintained a State Farm Lloyds homeowners insurance policy for decades. In 2008 he filed a roof-damage claim; State Farm paid him to replace the entire roof (shingles and gutters). Khalili never replaced the roof and repeated his claim.
BACKGROUND
In 2021 he filed a second roof claim. State Farm’s inspectors found the roof “very old” with extensive non-storm-related damage. The claim was denied because (1) the damage did not exceed the deductible and (2) State Farm had already paid for a full roof replacement.
PROCEDURAL HISTORY
State Farm filed motion for summary...
What Must be Done after Notice of a Claim is Received by the Insurer
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A first party property policy does not insure property: it insures a person, partnership, corporation or other entity against the risk of loss of the property. Before an insured can make a claim for indemnity under a policy of first party property insurance the insured must prove that there was damage to property the risk of loss of which was insured by the policy. The obligation imposed on the insured ...
