Column:

In Defense Of Capelo

By: Roland A. Gaona

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My mother, Ofelia Gaona, was great at telling stories. She combined her own unique style of old Texas folklore, with a lot of South Texas comadre mixed into her narration. My mother’s stories and the way she told them made a person listen; mainly because if you did not, you would lose track and lose the main story line. Ofelia had a habit of veering off in smaller sub-stories about persons or things that happened in the original story. I loved talking with my mom and I learned to keep track of her stories when she started going off on another subject. I knew that sooner or later, she would jump right back into the main story line without missing a beat and expect her listener to have followed along with her. At this point , you would have to wonder what does that have to do with the price of tea in China?

Well, I feel sorting out my mother’s complex story lines afforded me the expertise to muddle through the stories that are being bandied about by the Corpus Christi Caller-Times and others who are out to damage the reputation of State Representative Jaime Capelo (D-Dist. 34). The question on everyone’s mind is: “What was the $100,000 dollar check for?” First, of all, it doesn’t matter to me what it was for and it should not really matter to anyone else; secondly, Rep. Capelo has said that it was a referral fee on a another case. That answer is good enough for me. The reason there is a question in the first place is that some people have seized upon an opportunity to try to get Rep. Capelo in retaliation for sponsoring legislation that trial and personal injury lawyers in Texas did not want to see become law. The trial and personal injury lawyers couldn’t see beyond their pocketbooks; they couldn’t put their own special interests aside for the benefit of everyday working people and working families. State Rep. Capelo recognized that Texans needed something to make sure that Texans did not lose much needed doctors and health care professionals who were being forced to move to other states due to the high cost of medical malpractice insurance. Resulting in the passage and enactment of Proposition 12 which places a cap on non-economic damages awarded in a lawsuit or settlement. This law assures all Texans will continue to receive the quality and professional health care that we rightly expect. Shortly after Rep. Capelo filed this legislation in the Texas House is when all his troubles began.

The Corpus Christi Caller-Times has been reporting and following the story. They, however, would have failed miserably with my mother because they have not connected all the characters and story lines together to follow the main story. The Corpus Christi Caller-Times and, at least, one editor have played their own role in this epic saga.

They published several editorials stating that something had to be done about frivolous personal injury and medical malpractice lawsuits. According to this stalwart bastion of the truth, South Texas and Corpus Christi, especially, was in danger of losing all medical expertise because of the legal abuses. Proposition 12 was created, voted on by the people, and narrowly won passage. Since, then not only did a smear and retaliation campaign begin against State Rep. Jaime Capelo but the Caller-Times has attempted to distance themselves from ever having supported the law through another one of their editorials in December. Just from the stories published in the Caller-Times, I think I have muddled through this maze.

Jaime Capelo is a lawyer by profession and he is the District 34 State Representative. To fully understand this story, we have to go back to a time when he was in partnership with another attorney, Dario Bargas. A partnership is the equal or proportionate division of assets and liabilities. In the case of Capelo and Bargas, they were 50-50 partners. Dario Bargas later fell into personal legal problems that he felt would adversely affect the partnership. Bargas suggested that the partnership be dissolved. Capelo decided to buy out Bargas, including all assets and liabilities and continue practicing law under the same professional corporation. We will come back to this story later.

At a much later time, Jaime Capelo joined the law firm of Chaves & Gonzales as a partner. While a member of this firm, Capelo was the lead attorney for CITGO refinery, the site of an accidental explosion in 2002. Several police officers and firefighters who rushed to the scene of the toxic explosion developed health problems which they attributed to chemical exposure. They were represented by another local attorney, Rene Rodriguez, in their lawsuit against CITGO. The case was eventually settled for $3 million dollars. According to the various stories in the Caller-Times, Rodriguez and Capelo “worked out a deal” as part of a kickback scheme in which Rodriguez would pay Capelo as part of the settlement.

According to the Caller-Times, Rodriguez sent a check in the amount of $100,000 dollars in September 2002. Then, in October, Rodriguez stopped payment through his bank; stating that the check was sent in error. However, the check had already cleared and was deposited into Capelo’s account. After having been notified of the error by Rodriguez’s bank, Capelo promptly returned the money. Later, and after Capelo had filed his legislation sponsoring Proposition 12 and House Bill 4, Rodriguez in a conversation with Rudy Gonzales, of Chaves & Gonzales, brought up the fact that he had given the $100,000 dollars to Capelo and was upset that Capelo had sponsored the bills creating a cap on the fees that trial lawyers charge in a lawsuit or settlement. Chaves & Gonzales felt that if Capelo had earned that money; then, as partners, they were entitled to their fair share. Since by this time, Capelo had left the partnership and gone into private practice for himself, Chaves & Gonzales filed a lawsuit in an attempt to get what they believe is their money. However, Capelo explained that it was a referral fee for a medical malpractice suit while he was still in practice in the earlier corporation that he had formed with Dario Bargas. And, therefore, does not owe any money to Chaves & Gonzales.

Now, back to Dario Bargas, who has been embroiled in his own legal problems. Dario gets wind of the money that was paid to Capelo and surmises that if Capelo was paid for a case while they were partners then he is entitled to 50% of the $100,000 dollars. Capelo said that this is correct except for the fact that he bought out all Bargas’ assets and liabilities, including the outcome (win or lose) of this case. Therefore, Capelo did not have to share the $100,000 dollars with Dario since he no longer was a partner in the firm.

J. A. “Tony” Canales is an attorney in Corpus Christi. He is the son of Dr. Clotilde P. Garcia, a civil rights leader and much loved doctor in Corpus Christi, and the nephew of Dr. Hector P. Garcia, physician, civil rights leader, and founder of the American GI Forum. Tony served as a US Attorney for the Southern District in Houston, Texas during the Carter Administration. He now heads the private law firm, Canales & Simonson. Tony’s daughter, Barbara Canales-Black, decided that she wanted to run for a political office. Barbara decided after Carlos Truan announced that he would not seek re-election to his long-held Senate seat that she would run for the Senate instead. Despite the fact that she had never held an elected office or position, not even, precinct chairperson.

Juan “Chuy” Hinojosa, a state representative from McAllen, Texas and Diana Martinez, the former Nueces County Democratic Chairperson had also announced that they would be seeking the District 20 Senate Seat. The primary came and went, with Hinojosa and Canales going into a runoff. The runoff turned into a good ole’ South Texas political duel between the two candidates; with Hinojosa emerging as the victor and the new District 20 State Senator.

Tony had been able to get most of the major political players to support and back his daughter in her failed race. State Representative Jaime Capelo had wisely decided not to endorse any candidate for office until the General Election. However his wife, Sandra Capelo, being a close and good friend to Diana Martinez, had allowed her name to be used on a list of supporters for a fundraiser for Diana. This was not viewed well with the Canales clan. Then, Rep. Capelo sponsored HB 4 and Proposition 12, further angering Tony Canales.

Another local and prominent multi-millionaire attorney, Mikal Watts, was also upset that Rep. Capelo had taken the stance he did on Proposition 12 and had vowed in a letter to Capelo that Watts was out to get him. Mikal Watts earned his fame and most of his fortune in the Firestone Tire case as the lead attorney in that class action lawsuit. Watts was a supporter of Canales-Black in her bid for the Senate and is also one of her partners in a local nightclub, The Havana Club. His mother, Sandra Watts, had just won election to a judgeship in Corpus Christi. After eleven other local judges had recused themselves from hearing the case because of ties to the case from themselves or someone they knew, Sandra Watts was wiling to hear the case brought by Chaves & Gonzales. However, Capelo’s attorneys were able to have her removed and the case heard by a judge in Kerrville, Texas.

Now, it is re-election time in South Texas and State Representative Jaime Capelo is seeking to keep his office. His opponents have come out against him; some like Tony Canales have seized on the $100,000 error as an opportunity to oust Rep. Canpelo