Adam C. Leonard v. Salinas Concrete, LP

470 S.W.3d 178, 2015 Tex. App. LEXIS 7529, 2015 WL 4456200
Court of Appeals of Texas·Decided July 21, 2015·No. 05-14-01584-CV·Published·Cited by 20 cases

Opinion

OPINION

Opinion by Justice Lang

This interlocutory appeal was filed by Adam C. Leonard following the trial court’s denial of his special appearance in a lawsuit filed against him by his former employer, Salinas Concrete, LP (“Salinas”). Specifically, Salinas asserted claims against Leonard for breach of fiduciary duties during and after his employment, breach of written and oral contracts, quantum meruit, and tortious interference with an existing business relationship.

In his sole issue on appeal, Leonard contends the trial court erred by concluding he had sufficient minimum contacts with the State of Texas to warrant the exercise of personal jurisdiction over him. We conclude the trial court has personal jurisdiction over Leonard as to Salinas’s claim for breach of a written contract, but lacks personal jurisdiction over Leonard as to Salinas’s other claims. We (1) affirm ttie trial court’s order as to Salinas’s claim for breach of a written contract; (2) reverse the trial court’s order as to Salinas’s other claims and render judgment granting Leonard’s plea to the jurisdiction as to those claims and dismissing them for want of jurisdiction; and (3) remand this case to the trial court for further proceedings consistent with this opinion.

I. FACTUAL AND PROCEDURAL BACKGROUND

The parties do not dispute that Salinas is a Texas limited partnership headquartered in Plano, Texas, and Leonard is an individual and a nonresident of Texas. In its May 8, 2014 original petition, Salinas asserted in part (1) the , trial court has jurisdiction over Leonard because Leonard “purposefully availed himself of the privilege of conducting activities in the state of Texas and established minimum contacts sufficient to confer jurisdiction over [him]”; (2) “the assumption of jurisdiction over [Leonard] will not offend traditional notions of fair play and substantial justice”; (3) Salinas would show “the cause of action arose from or relates to the contacts of [Leonard] to the state of Texas, thereby conferring specific jurisdiction with respect to [Leonard]” 1 ; (4) Leonard “engaged in activities constituting business in the state of Texas as provided by Section 17.042 of the Texas Civil Practice and Remedies Code, in that [Leonard] contracted with [Salinas], a Texas resident, and performance of the agreement in whole or in part thereof was to occur in Texas”; and (5) “[v]enue in Dallas County is proper” be *183 cause “all or a substantial part of the events or omissions giving rise to this lawsuit occurred in this county” and “this lawsuit involves a written contract that expressly names said county as the venue for its enforcement.”

Further, in a section of the original petition titled “Summary of Claims,” Salinas stated as follows:

11. Mr. Leonard was a key employee whom Salinas Concrete had trained in its processes and to whom it had entrusted confidential information and important client relationships during his long tenure with the Company. In violation of common law and contractual duties, he has profited by abusing that trust.
12. First, while still employed by the Company, Mr. Leonard violated his fiduciary and contractual duties to Salinas Concrete by, upon information and belief, surreptitiously engaging in concrete contracting, construction, and related services to benefit himself.....
13. Second, ... [w]hen he resigned, Mr. Leonard acknowledged that he had signed a non-compete agreement — Yet he asked that the Company consent to his potentially getting jobs from its smaller customers, independent builders who commission only one or a few foun- ’ dations from time to time. Mr. Leonard agreed to remit $500 per builder to Salk nas Concrete if these customers used his services. He also asked that Salinas Concrete assist him in setting up a supply relationship at favorable volume pricing with the supplier of the cables that are a necessary part of the foundation system he had been trained in constructing while employed by the Company. Salinas Concrete orally consented to the arrangement and assisted as requested, securing Mr. Leonard’s ability to acquire the necessary cable. Yet Mr. Leonard has not remitted the promised sums to Salmas Concrete despite eom- ■ pleting the work for these independent builders.
14.Finally, despite the common law and contractual obligations Mr. Leonard undertook — and his express reaffirmation that he would not do so — he has accepted work from the Company’s largest customer.

Salinas'asserted six claims based on. those alleged facts: (1) “Breach of Fiduciary Duties: Operation of Competing Business While Employed By Plaintiff,” 2 (2) “Breach of Fiduciary Duty: Post-Employment Use of Plaintiffs Confidential Information,” 3 (3) “Breach of Written Contract: *184 Non-Compete and Non-Solicitation Covenant,” 4 (4) “Breach of Oral Contract,” 5 and (5) claims “in the alternative” for “Quantum Meruit,” 6 and “Tortious Interference With Existing Business Relationship.” 7

Attached to Salinas’s original petition was a copy of a six-page “Standard Employment Agreement” that states it was entered into between Salinas and Leonard (the “Agreement”). The Agreement is signed by Leonard, but not by Salinas. Each page bears the handwritten notation “8-6-09” and Leonard’s handwritten initials. Additionally, the Agreement (1) states in paragraph 1 that Leonard agrees to “render exclusive and full-time services” at “Company’s offices located at 1300 10th Street Plano TX 75074 and at such other locations as the Company may request”; (2) states in paragraph 2.1 that the term of Leonard’s employment “shall begin on the date hereof, and shall end on May _, 2009”; (3) states in paragraph 8.6 that it “shall be governed by and construed according to the laws of the State of Texas applicable to agreements to be wholly performed therein and is enforceable in Dallas County, Texas”; and (4) contains non-compete, non-solicitation, and confidentiality provisions.

On June 30, 2014, Leonard filed a special appearance in which he objected to the trial court’s jurisdiction over him. Leonard contended he “does not, and at all times relevant herein, has not, conducted business within the state of Texas” and “has no minimum contacts with the state of Texas sufficient for a Texas court to assert jurisdiction over him.” Further, Leonard asserted, in part,

4. Plaintiffs alleged claims arise from an employer/employee relationship. Leonard worked for Salinas, who is authorized to do and is actually doing business in Louisiana. Leonard interviewed in Louisiana, was hired in Louisiana, and performed all work in Louisiana. All *185 paperwork in connection with Leonard’s hiring was mailed to him in Louisiana, and signed by Leonard in Louisiana. 5.

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Adam C. Leonard v. Salinas Concrete, LP, 470 S.W.3d 178, 2015 Tex. App. LEXIS 7529, 2015 WL 4456200 (Tex. Ct. App. 2015).

470 S.W.3d 178 (Adam C. Leonard v. Salinas Concrete, LP) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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