Chapter 6
It was several days after Matt and Lynn had left on their vacation. I had just gotten home from work and crashed on the sofa. It had been a hectic week with all the extra bankruptcy business Matt's office had been referring. After Erica and I watched TV for a while, the ten o'clock news came on. I was tired and was having trouble staying awake. Then I heard the reporter mention the name Coleman, which got my attention.
"The State Bar of Texas today was granted an ex-parte temporary restraining order by the 111th District Court against the Debt Relief Centers of Texas, Inc., a company owned and operated by Dallas attorney Matt Coleman. The TRO prohibits the company from airing any more of its TV advertising spots for ten days until a temporary injunction hearing is held to determine if the company has violated the State Bar of Texas’ rules on advertising.
"The controversial TV spots accuse banks, mortgage companies, and other financial institutions of conspiring to financially enslave the American people. According to Coleman, these institutions lure consumers into frivolous and irresponsible credit card spending so they will be forced to pay an endless stream of interest."
"Since the advertising campaign began," the reporter continued, “bankruptcy filings are up 77 percent in the Northern District of Texas, sparking concern that the continuation of the ad campaign could trigger a banking crisis in Texas which could possibly spread to other states. Although the ad campaign is only being aired in the Dallas-Fort Worth area, it is anticipated that other attorneys around the nation will start copying Mr. Coleman's advertising tactics since they have been so successful. According to the State Bar, the advertising is misleading and deceptive and could have a devastating effect on the U.S. economy as well as the lives of those persons persuaded to file bankruptcy under allegedly false pretenses."
"Mr. Coleman was unavailable for comment. Reportedly he is on vacation this week," the reporter concluded.
"Did you hear that, Erica?"
"Yes, what does it mean?"
"It means Matt's in big trouble. I warned him this marketing plan wasn’t a good idea."
"But everything he said was true, wasn’t it?"
“Probably. That’s why the bankers are getting nervous.”
“What should we do?”
"I don't know. There aren't any phones where he went. I doubt if we can communicate with him. I'll have to call his office manager, Tom Hartsfield, and tell him to cut the advertising until Matt gets back."
"What do you think Matt will do when he finds out?"
"I don't know. I warned him his ad campaign was too aggressive. He just doesn't listen."
"Didn't he say he checked out the ad campaign with another attorney?"
"Oh, you're right. Maybe I can find out who it was and call him."
I went into my study, opened my briefcase, and pulled out an address book. Flipping through it, I found the number I was looking for and I dialed it.
"This is Rich Coleman, Matt's father."
"Oh, hi. How are you?" Tom replied.
"Not so good. Did you see the news?"
"No, I was watching the Ranger game."
"There's been a restraining order issued against Matt running any more advertisements."
"What?"
"The State Bar went to court today and got a TRO. You've got to pull all your advertising for ten days or you'll be in contempt of court."
"But I can't do that without Matt's consent."
"You don't have any choice. You're under a court order."
"I can't believe this. We haven't even been notified of a complaint?"
"Didn't Matt have an attorney who was an expert in this area of the law?"
"Right, Bradley Davis."
"Do you have his number?"
"Not here at the house, but I'm sure directory assistance can give it to you."
"Okay, thanks. I'll have Mr. Davis call you tomorrow with instructions what to do, okay?"
"Fine."
I tried to contact Bradley Davis at his home but he was not in. I left a message on his voice mail and waited anxiously for a return telephone call. While I was waiting, I contacted Matt's travel agent to see if there was any way to contact him. The agent said he would look into it and get back with me in the morning. Finally, the telephone rang. It was Bradley Davis.
"Yes, did you see the news?"
"Yes, I was trying to get in contact with Matt."
"He's on vacation."
"Oh, great."
"Can you do anything about the TRO?"
"Maybe. I'll file a motion to dissolve it in the morning. The judge shouldn't have granted it without a hearing anyway. It must have been a visiting judge who signed it."
"If I can help in any way let me know."
"Have Matt call me if you hear from him."
"I will. Thanks."
I went back to the family room where Erica was watching TV. I noticed the evening news was just coming on, so I sat down to watch it.
"What did you find out?" Erica asked.
"Matt's attorney's going to file a motion to dissolve the TRO in morning."
"Will that work?"
"He thinks so."
"Good. Matt would be so upset if he knew what was going on."
"It's a good thing he lined up an attorney to represent him. He's a pretty smart kid."
"Takes after his dad."
"I don't know. I was never as brash as he is."
As they were talking, the news began. The first story was about a tornado that had swept through Ada, Oklahoma, leveling two square miles. Then the reporter started talking about State Bar of Texas restraining order.
"In the past month, bankruptcy filings have been up 77 percent in the Northern District of Texas. This tremendous increase in filings is attributed to one attorney's efforts. Matt Coleman, a young man just out of law school has convinced record numbers in North Texas that there's a conspiracy amongst banks and mortgage companies to lure consumers into a life of financial slavery. He says they intentionally give consumers too much credit and charge obscene interest rates in order to get from them every dime possible."
"The State Bar of Texas got a temporary restraining order against Matthew Coleman prohibiting him from doing anymore advertising until a hearing can be held on a State Bar complaint alleging his advertising is misleading, deceptive, and irresponsible."
I pushed the mute button on the TV and turned to Erica. “Can you believe that?" I said. "Wait until Matt finds out he's been the main subject of the evening news."
The next morning, I got a barrage of calls about the news report. What did he think of it? Did Matt see it? Is Matt going to respond to his critics? I told everyone I didn't want to comment on it since it was Matt's ad campaign and not mine. Later that morning I got a call from Bradley Davis.
"I've got good news."
"You do?"
"Yes, I got a hearing set for tomorrow morning on my motion to dissolve."
"Good. Do you think you'll be successful?"
"We have a pretty good shot at it, I think. The judge is back from vacation, and he's usually fair-minded. He doesn't normally grant ex-parte requests for relief so he'll take a close look at what the visiting judge did. Since we've got a temporary injunction hearing next week to fully address the issues, I don't see any justification for the TRO."
"Well, Matt will be back in town next week so I'll have him call you immediately when he arrives. What do you think our chances are at the temporary injunction hearing?"
"Very good actually. Freedom of speech is a pretty fundamental right. I can't see any court telling him he can't speak his mind."
"Well, I hope you're right, but I'm sure the State Bar will come up with a persuasive argument nevertheless."
"Oh, you can bet on that. It will be up to the judge. He could go either way."
"Well, thanks for your help. I'll have Matt call you just as soon as I talk to him."
After hanging up the phone, I told the staff the good ne
ws. When I was done, I called Erica to let her know. Then I called Matt's travel agent to see if he had been able to contact Matt.
"We've been trying to contact the company that runs the camp but no one is answering their phones."
"That's sure strange."
"Well, it's a small company, and, if somebody is sick the dispatcher has to help fuel the plane and get it ready for the next flight."
"Really?"
"Yeah, do you want me to try again?"
"No, the crisis is over. Matt will be home in a few days. Let’s not spoil his vacation. Just forget about it."
"You sure?"
"Yes, I'm sure. Thanks for your help."
"No problem."
When I woke up the next morning, I went outside as I did every morning to walk around the neighborhood. It was a beautiful day with puffy white clouds dancing across the sky and a light wind from the south. When I returned, I picked up the newspaper and went inside. Erica was making breakfast. The smell of fresh coffee lured me into the kitchen. I sat down and began reading the paper. Erica walked over and put a cup of coffee in front of me.
"Thank you, honey," I said. After reading the front section I pulled out the Metropolitan section and raised my eyebrows at what I saw.
"Oh no," I said.
"What?" Erica asked.
"There's a big article on Matt and the State Bar injunction in here. . . . They say Wall Street will be watching the State Bar action against Matt very closely. They're concerned that if he isn't stopped, financial institutions will face massive losses from the stampede of bankruptcies that will likely occur."
"How can what Matt's doing have such an impact on the whole country?"
"I don't know. I guess he's just charismatic. He's got your charm and my good looks."
"Oh! Thanks a lot. You can sleep on the sofa tonight."
"Seriously, he's just hit a nerve. There's a lot of truth to what he's been preaching."
"Well, I'm worried about him. He's up there in Alaska and doesn't have any idea what a mess is waiting for him."
"Luckily his attorney has everything under control, I think. He seems very confident."
"Call me just as soon as you hear something today, okay?"
"Sure."
At nine the judge of the 111th District Court invited Peter Robertson, the State Bar of Texas attorney, and Bradley Davis into his chambers. The numerous members of the press who were seated in the courtroom tried to follow but were stopped by the bailiff. The judge sat down behind his big oak desk covered with a dozen or so volumes of the Southwestern Reporter. The two lawyers each sat in plush leather side chairs across from the judge.
"Gentlemen, what do we have today?"
"Your Honor," Bradley said. "As you may know, Judge Hawthorne, sitting in for you while you were on vacation, granted the State Bar of Texas a Temporary Restraining Order against my client, Matthew Coleman. The order prohibits him from running his very popular TV spots on the credit conspiracy that has allegedly enslaved millions of Americans."
Peter sat up in his chair and said, "Your Honor, it's an unapproved advertising campaign and nothing more."
"Your Honor, if I can finish."
"Let him finish, counselor, you'll get your turn."
"Thank you, Your Honor. . . . Our first complaint, Your Honor, is that this action was done ex-parte. Mr. Coleman retained me some time ago to advise him on the propriety of his TV spots. Had he been advised of this complaint, we would have advised the bar of this arrangement. It was totally inappropriate for a TRO hearing to take place without my client being represented."
Robertson sat back in his chair and shook his head. Bradley continued, "Secondly, Your Honor, the court is quite aware that a TRO is an extraordinary remedy and the applicant must show irreparable injury and no adequate remedy at law. The applicant falls short on both grounds. Your Honor, these ads have been airing for several months, so I can't see why it is so critical that they are stopped immediately.
“My client shouldn't be denied his First Amendment right of free speech without at least having a full evidentiary hearing. Ten more days of these ads couldn't possibly cause irreparable injury to the State Bar."
"Thank you, Mr. Davis. . . . Mr. Robertson."
"Yes, Your Honor. It's well settled that the State Bar has the right to regulate lawyer advertising. These TV spots being aired by Mr. Coleman are nothing but TV ads. They are calculated to bring in bankruptcy business to the Debt Relief Centers and nothing more. The damage that is being inflicted to the public by these false and misleading ads will cause irreparable damage as hundreds, maybe thousands, of people will be induced into filing bankruptcies in bad faith. There is no adequate remedy at law, Your Honor, as the damages that will be inflicted on the public would be incalculable and there is no way Mr. Coleman could respond to a damage award if the court were to grant it."
"What about the lack of notice to Mr. Coleman or his counsel?" the Judge said.
"Your honor, we called Mr. Coleman's office and they said he was on vacation and could not be reached."
"Did you ask who was in charge and communicate what you were planning to do?"
"Well . . . no."
"There's an office manager and three or four other attorneys in the office," Bradley advised.
"Okay, I’m ready to make my ruling. . . . I'm going to dissolve the TRO. I don't think there's been a showing of irreparable harm if the TV spots are allowed to run until the temporary injunction hearing. There are important First Amendment considerations here that should be addressed. It's only fair that both sides have notice and an opportunity to present their evidence to the court before any injunctive relief is granted."
"Thank you, Your Honor," Davis said.
Robertson nodded at the Court's decision and then stood up. "Very well, Your Honor. We'll see you in a few days."
When Bradley stepped out into the hallway, he was met with a half dozen reporters. He didn't stop to talk to them but headed for the elevators.
"What happened in there, Mr. Davis?" a reporter asked.
"The TRO was dissolved," Davis replied.
"So does that mean your client is free to advertise?"
"It means he is free to continue to run his TV spots until the temporary injunction hearing next week."
"Are you pleased with the outcome?"
"Yes, of course. My client has a right to speak his mind. His TV spots are simply his opinions on important issues facing American consumers. No one, not even the State Bar, has the right to interfere with his exercise of his First Amendment right of free speech."