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SOUTHEAST TEXAS RECORD

Sunday, April 28, 2024

Victims sue law firm for alleged barratry scheme

Lawsuits
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HOUSTON — Nine Louisiana individuals filed a petition against McClenny, Mosley & Associates alleging it left thousands of clients without representation after it allegedly participated in a barratry scheme.

James McClenny, Zach Mosley, Richard William Huye III and Tort Network LLC were also named as defendants in the suit.

Wayne J. Adams, Bonnie Brown, Claude Britton III, Curtis Davis, Carrie D. Yazeed, Dwane Borel, James S. Dartex, Lloyd Cox and Lynda L. Jenkins alleged barratry by McClenny, Mosley and Huye, as well as the Arizona company, according to a petition filed June 21 in Harris County District Court.

The plaintiffs claim after Hurricane Ida destroyed the gulf coast, the defendants undertook an attempt to enrich themselves by accumulating a massive docket of clients using an illegal barratry scheme.

"The lawyers paid millions of dollars to the advertising firm Velawcity to unlawfully solicit and deliver pre-screened clients and signed contingency-fee agreements to the firm at a rate of $3,500 per contract," the petition states. "The plaintiffs in the lawsuit are victims of this criminal barratry scheme, entitling them to seek civil remedies pursuant to Section 82.0651 of the Texas Government Code, including penalties, disgorgement of attorney's fees paid and attorney's fees incurred in pursuing this case."

The plaintiffs claim the defendants operated call centers and reached out to potential clients. The defendants also initiated unsolicited telephone calls to people who had not requested to be contacted or had been tricked into providing their information.

In February, the Louisiana Insurance Commissioner issued an emergency cease-and-desist order prohibiting the defendants from engaging in unfair and deceptive insurance practices. In May, the defendant's attorneys who were licensed in Louisiana vanished from the firm and left thousands of clients without representation, according to the suit.

The plaintiffs are seeking a trial and judgment against the defendants for relief. They are represented by Lance Christopher Kassab, David Eric Kassab and Nicholas R. Pierce of The Kassab Law Firm in Houston.

Harris County District Court Case number: 2023-38188

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