NY Attorney Lacking Ties to Texas Escapes Malpractice Lawsuit

A New York law firm who is accused of wrongly advising a corporation to signal an unfavorable contract escaped a lawsuit in Texas because an attorney-customer connection wasn’t plenty of for a court docket in that point out to have jurisdiction above him.

While an attorney-shopper partnership existed among Hinduja International Resolution, Inc. and Ali Ganjaei, there is no proof the lawyer sought consumers or usually affirmatively promoted particular company in Texas, the Texas Courtroom of Appeals, Fifth District mentioned, affirming the demo court’s selection.

Dallas-based Synergy World Outsourcing LLC introduced a lawsuit in Texas for breach of deal against HGSI, with whom it experienced a very long-standing business enterprise romance, the appeals court docket reported. Synergy procured clients for Illinois-primarily based HGSI’s management products and services in trade for a fee. Synergy alleged HGSI did not satisfy a contract—which allowed it to obtain a stream of regular monthly payments in perpetuity—when it unsuccessful to fulfill its payment obligations.

HGSI asserted counterclaims for breach of fiduciary responsibility and conspiracy to lead to breach of fiduciary duty from Synergy and Ganjaei. HGSI especially promises that Ganjaei, the business’s lawful counsel, gave the company negative authorized suggestions by advising it to indicator the perpetuity deal. It claims Ganjaei had a conflict of fascination because he also worked for an additional corporation, HBI Team Inc., which received a greater part stock situation in Synergy.

Ganjaei challenged the court’s private jurisdiction around him, arguing that he’s a resident of New Jersey, and never lived in Texas. He also explained he’s licensed to observe law in New York and has in no way performed authorized services in Texas. The demo courtroom granted his motion to dismiss for lack of own jurisdiction, but HGSI appealed.

Simply because Ganjaei was sued in his personal ability, “only his contacts in that capacity are relevant” to the jurisdictional issue, the court docket said Jan. 13.

Ganjaei didn’t purposefully avail himself of the advantages and protection of Texas regulation simply because there is no proof Ganjaei individually targeted the state, sought Texas belongings, or sought consumers there, the courtroom reported. “The document demonstrates HBI, not Ganjaei acquired an fascination in Synergy, and there is no assertion or evidence that HBI is Ganjaei’s change ego,” the courtroom added.

Justice Carolyn Wright, sitting by assignment, sent the viewpoint. Justices Robbie Partida-Kipness and Erin A. Nowell have been portion of the panel.

Susman Godfrey LLP represented HGSI. Lynn Pinker Hurst & Schwegmann LLP represented Ganjaei.

The situation is Hinduja Global Solution, Inc. v. Ganjaei, Tex. App., 5th Dist., No. 05-22-00052-CV, 1/13/23.