HOUSTON – A marketing company is accusing Christian Smith & Jewell, a Houston law firm, of unethically representing both it and its majority shareholder in a breach of contract suit.
Signet Interactive filed suit against CSJ and firm attorney Stephen Cagle Jr. on Aug. 21 in Harris County District Court.
According to the lawsuit, Signet retained the services of CSJ and Cagle to represent them in an underlying lawsuit that was brought by Joy Yoga against majority shareholder Christopher Mulgrew.
Joy Yoga had sued Mulgrew for breach of contract. And even though Signet was not involved in the business transaction between Mulgrew and Joy Yoga, it was named as a defendant.
CSJ and Cagle failed to notify Signet that there was a conflict of interest in representing both it and Mulgrew, the suit alleges.
“Even though Mulgrew, in his individual capacity, not Signet, entered into a business contract with Joy Yoga, Defendants aided Mulgrew in using corporate money to fund the settlement with Joy Yoga, which was solely owed by Mulgrew,” the suit states.
“Defendants aided, abetted and conspired with Mulgrew to deplete assets of their client, Signet, by $560,000 to fund the personal settlement owed by Mulgrew. Signet now sues Defendants to recoup these wrongfully and fraudulently transferred funds.”
Signet is suing for actual and punitive damages, plus attorney’s fees.
The company is represented by Ross Sears II, attorney for the Houston law firm Sears & Crawford.
Case No. 2017-55845