A Houston marketing company sued Houston’s Christian Smith & Jewell and former partner Stephen Cagle Jr., seeking more than $1 million in damages and alleging the defendants failed to notify it of a conflict of interest when representing it in a business dispute.
Plaintiff Signet Interactive alleges the defendants should have acknowledged that it was a conflict to defend the company and also defend majority shareholder Christopher Mulgrew from allegations in an underlying suit filed by Joy Yoga. Signet Interactive alleged the defendants aided and assisted Mulgrew in using corporate money and assets to fund a settlement with Joy Yoga in that suit.
“Defendants aided, abetted and conspired with Mr. Mulgrew to deplete the assets of their client, Signet Interactive, LLC by $560,000.00 to fund the personal settlement owed by Mr. Mulgrew individually,” the plaintiff alleges in the petition filed Aug. 21 in the Eleventh District Court in Harris County.
Signet Interactive brings negligence, breach of fiduciary duty and conspiracy to breach fiduciary duty, fraudulent transfer of funds, and fraudulent concealment causes of action against the Christian Smith and Cagle, and seeks more than $1 million in actual damages, punitive damages, interest and fee forfeiture.
Wes Christian, a partner at Christian Smith, did not immediately respond to a call seeking comment on the allegations in Signet Interactive LLC v. Christian Smith & Jewell. Cagle, now a commercial litigation shareholder at Winstead in Houston, also did not immediately return a telephone message.
Plaintiffs attorney Ross Sears, a partner at Sears & Crawford of Houston, also did not return a call seeking comment.