Accelerated Christian Education, Inc. v. Oracle Corp.

925 S.W.2d 66, 1996 Tex. App. LEXIS 936, 1996 WL 98030
CourtCourt of Appeals of Texas
DecidedMarch 7, 1996
Docket05-95-00049-CV
StatusPublished
Cited by82 cases

This text of 925 S.W.2d 66 (Accelerated Christian Education, Inc. v. Oracle Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Accelerated Christian Education, Inc. v. Oracle Corp., 925 S.W.2d 66, 1996 Tex. App. LEXIS 936, 1996 WL 98030 (Tex. Ct. App. 1996).

Opinion

OPINION

MALONEY, Justice.

Accelerated Christian Education, Inc. (Accelerated) sued Oracle Corporation and Gregory Brady (collectively, appellees) for breach of contract, violations of the Texas Deceptive Trade Practice-Consumer Protection Act (DTPA), negligent misrepresentation, breach of warranty, fraud, promissory estoppel, and gross negligence. The trial court granted Oracle’s motion to dismiss the cause because of improper forum. 1 In six points of error, Accelerated contends the trial court erred in dismissing its claims because (1) the contract’s forum selection clause was unenforceable, impermissibly waived Accelerated’s rights under the DTPA, did not apply to Accelerated’s tort claims, and violated the open courts provision of the Texas Constitution; (2) Texas was a more favorable forum for the litigation than Cali *69 fornia; and (3) appellees waived their right to complain about improper forum by failing to enter a special appearance or file a motion to transfer venue. In an additional point of error, Accelerated contends the trial court erred in dismissing its claims against Brady because the forum selection clause in the parties’ agreements did not apply to him. We affirm the trial court’s order dismissing Accelerated’s claims.

BACKGROUND

Accelerated is a Texas corporation with its principal office in Denton County, Texas. Accelerated designs and markets educational materials for home study and Christian educational institutions. Oracle is a California corporation that designs and markets computer software and related services. Brady was Oracle’s regional sales manager in Dallas County, Texas.

Accelerated decided to upgrade its computer system. Accelerated entered into two contracts with Oracle. The contracts gave Accelerated a license to Oracle’s software and provided Accelerated with technical support and consulting services in connection with the software. Both contracts specified that California law would govern the contracts. Each contract contained the following clause:

In any legal action relating to this Agreement, [Accelerated] agrees (a) to the exercise of jurisdiction over it by a state or federal court in San Francisco or San Ma-teo County, California; and (b) that if [Accelerated] brings the action, it shall be instituted in one of the courts specified in subparagraph (a) above. Oracle may institute legal action in any appropriate jurisdiction.

A few months after Oracle began delivering software and services under the contracts, Accelerated became dissatisfied with both Oracle’s software and services. Accelerated concluded Oracle could not comply with the parties’ agreements and sued Oracle and Brady in Dallas County. 2

Oracle moved to dismiss Accelerated’s claims, contending the contracts’ forum selection clause precluded Accelerated from filing suit in Dallas County. The trial court agreed and dismissed Accelerated’s claims. This appeal followed.

MOTION TO TRANSFER VENUE/SPECIAL APPEARANCE

In its sixth point of error, Accelerated contends the trial court erred in dismissing its claims because appellees neither (1) entered a special appearance, nor (2) moved to transfer venue. Accelerated maintains this failure waived appellees’ improper forum complaint.

1. Applicable Law

a. Special Appearance

Under rule 120a of the Texas Rules of Civil Procedure, a party may make a special appearance “for the purpose of objecting to the jurisdiction of the court over the person or property of the defendant on the ground that such party or property is not amenable to process issued by the courts of this State.” Tex.R.Civ.P. 120a (emphasis added). A special appearance is a specific procedural mechanism to litigate one issue. See Texas Commerce Bank N.A v. Interpol ’80 Ltd. Partnership, 703 S.W.2d 765, 775 (Tex.App. — Corpus Christi 1985, no writ). The rule applies only when a defendant contends he is not amenable to process. See Kawasaki Steel Corp. v. Middleton, 699 S.W.2d 199, 202 (Tex.1985); Oliver v. Boutwell, 601 S.W.2d 393, 395 (Tex.Civ.App.— Dallas 1980, no writ); Donald v. Agricultural Livestock Fin. Corp., 495 S.W.2d 592, 595 (Tex.Civ.App. — Fort Worth 1973, no writ).

*70 b. Motion to Transfer Venue

The rules of civil procedure provide a mechanism for transferring a case between Texas counties. See Tex.R.Civ.P. 86. To preserve an objection to improper venue, a party must file a motion to transfer venue before or concurrently with any other plea, pleading, or motion. The only exception to this rule is a special appearance motion under rule 120a. See id.

2. Application of Law to Facts

Parties use a special appearance to protest the trial court’s jurisdiction over the person or property because they are not amenable to process in this State. See Tex. R.Crv.P. 120a. Here, appellees contended that Accelerated had no right to sue in a forum other than the one on which they had agreed—not that they were not amenable to process. Because a special appearance addresses jurisdiction not contractual forum selection clauses, we conclude appellees could not waive their complaint by failing to enter a special appearance.

b. Motion to Transfer Venue

Accelerated cites no authority to support its claim that a party seeking to avoid suit in Texas because of a forum selection clause must first file a motion to transfer venue. Nor does our research reveal any cases that require a party to move to transfer venue to enforce an out-of-state contractual forum selection clause. Moreover, Accelerated cites no authority that holds a Texas state court has the power to transfer a case to another state’s court. Indeed, the law appears to be to the contrary. See Tieuel v. Southern Pac. Transp. Co., 654 S.W.2d 771, 774 n. 1 (Tex.App.—Houston [14th Dist.] 1983, no writ) (noting court had no authority to transfer case to Louisiana); West v. City Nat’l Bank, 597 S.W.2d 461, 464 (Tex.Civ.App.—Beaumont 1980, no writ) (noting plea of privilege effective only to transfer case from one county in Texas to another county in Texas). We decline to enlarge Texas law by holding that Oracle must first file a motion to transfer venue to avoid suit in Texas or forever waive its right to enforce an out-of-state contractual forum selection clause.

c. Motion to Dismiss

In Barnette v. United Research Co., 823 S.W.2d 368

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Bluebook (online)
925 S.W.2d 66, 1996 Tex. App. LEXIS 936, 1996 WL 98030, Counsel Stack Legal Research, https://law.counselstack.com/opinion/accelerated-christian-education-inc-v-oracle-corp-texapp-1996.