HOUSTON – Tony Buzbee and his law firm believe that it is acceptable for them to interfere with a signed contingency fee contract existing between another law firm and its client, according to a recently filed lawsuit.
Seeking up to $1 million in damages, the law firm of Terry & Thweatt filed suit against The Buzbee Law Firm on May 27 in Jefferson County District Court.
As previously reported, last July John Luengas, on behalf of the estate of Alanna Luengas, filed suit against Terry & Thweatt, alleging the firm was demanding hundreds of thousands of dollars for a claim arising out of his daughter’s death, despite never entering into a contract for legal services with the firm.
Luengas’ suit was brought through Buzbee’s firm.
According to the lawsuit brought by Terry & Thweatt, in October 2017 Luengas and his ex-wife, Jade James, contacted the firm about pursuing a wrongful death claim on behalf of their daughter, Alanna Luengas.
Alanna, 18 at the time, died on June 25, 2017 in a drunk driving crash. She had been working at Splendor Gentlemen’s Club and on the night of her death the club allegedly provided her alcohol, allowing her to become intoxicated and drive home.
Alanna’s parents expressed their desire to hire Terry & Thweatt, but the firm declined because Luengas was already represented by another lawyer.
“The Firm did not wish to tortuously interfere with that lawyer’s contract with Luengas, and equally important, the Firm did not wish to expose Luengas to the possibility of paying two attorneys’ fees,” the suit states.
Jade James, however, was not represented by Luengas’ lawyer or anyone else and eventually signed a contract with Terry & Thweatt.
Approximately 24 hours after hiring Terry & Thweatt, Jade James sent an email stating that she was going with a different attorney and terminating their agreement, according to the suit.
“(Lee) Thweatt emailed James back immediately and told her that because she had terminated him without cause, she should advise her new lawyer that the Firm would not relinquish its fee interest in the case,” the suit states.
On Oct. 16, 2017, Buzbee and his firm filed a wrongful death suit against the gentleman’s club on behalf of James and Luengas, which settled on July 10, 2019.
A Buzbee lawyer then sent Terry & Thweatt a letter offering an amount “far less” than the 40 percent contingency fee agreement it had with James.
“It is particularly concerning that the circumstances of this case establish that James terminated her agreement without cause during a meeting she and Luengas were having with Buzbee, who she and Luengas then both retained one day after James hired the Firm,” the suit states.
“While testifying under oath on Feb. 12, 2020 at her grievance hearing before the State Bar of Texas, James revealed for the first time that Tony Buzbee had personally assured her that she faced no risk herself of ever paying any contingency fee to Terry & Thweatt,” the suit states.
“Not only did Defendants encourage Ms. James to break her contract with the Firm, but they did so with full knowledge of the impropriety of their actions.”
On April 17, an arbitrator ruled that Terry & Thweatt’s contingency fee agreement with James was not unconscionable, but only awarded the firm $5,000 in fees.
Terry & Thweatt is seeking an award of exemplary damages.
The firm is represented by Tommy Hastings, a Woodlands attorney.
Case No. 2020-31793