All Star Enterprise, Inc. v. Buchanan

298 S.W.3d 404, 172 Oil & Gas Rep. 145, 2009 Tex. App. LEXIS 7870, 2009 WL 3210653
CourtCourt of Appeals of Texas
DecidedOctober 8, 2009
Docket14-08-01064-CV
StatusPublished
Cited by27 cases

This text of 298 S.W.3d 404 (All Star Enterprise, Inc. v. Buchanan) 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
All Star Enterprise, Inc. v. Buchanan, 298 S.W.3d 404, 172 Oil & Gas Rep. 145, 2009 Tex. App. LEXIS 7870, 2009 WL 3210653 (Tex. Ct. App. 2009).

Opinion

OPINION

EVA M. GUZMAN, Justice.

In this -wrongful-death and survival action, four nonresident defendants appeal the denial of their respective special appearances. Because the Texas contacts of All Star Enterprise, Inc., Antero Resources Piceance Corp., and Frontier Drilling, L.L.C. are insufficient to establish general or specific jurisdiction, we reverse the trial court’s rulings as to them and remand the claims against them for severance and dismissal. The Texas contacts of Antero Resources Corporation, however, are sufficient to support general jurisdiction, and the exercise of such jurisdiction does not offend traditional notions of fair play and substantial justice; thus, we affirm the trial court’s denial of its special appearance.

I.Factual and PROCEDURAL Background

On July 19, 2007, Joseph “Jay” Buchanan, Jr. was killed by a piece of falling equipment while working at a drilling rig known as Rig No. 3 in the Piceance Basin of Garfield County, Colorado. At the time of his death, Jay, his wife, and his minor children were citizens of Louisiana temporarily residing in Colorado, but by the time his wife, individually and on behalf of the children and her late husband’s estate (collectively, “Buchanan”), filed this wrongful-death action in Harris County, Jay’s survivors again resided in Louisiana. On August 30, 2007, Buchanan sued (a) Halliburton Company, (b) All Star Enterprise, Inc. d/b/a Bernard Well Service (“All Star”), and (c) Antero Resources Corporation (“Antero”). On October 12, 2007, Buchanan added Frontier Drilling, L.L.C. (“Frontier”) as a defendant, and on March 7, 2008, Antero Resources Piceance Corporation (“Piceance”) was added to the suit. All Star, Antero, Piceance, and Frontier each filed a special appearance, and each was denied by the trial court. In this interlocutory appeal, each presents a single issue challenging the trial court’s denial of its special appearance.

II.Standard of Review

The plaintiff bears the initial burden of pleading sufficient allegations to bring a nonresident defendant within the provisions of the long-arm statute. BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789, 793 (Tex.2002). The nonresident defendant then bears the burden of proof to negate all bases of personal jurisdiction asserted by the plaintiff. Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007).

The determination of whether the trial court has personal jurisdiction is a question of law. BMC Software, 83 S.W.3d at 794. If a trial court must resolve disputed questions of fact before resolving the jurisdictional issue but renders no findings of fact, the trial court’s implied factual findings may be challenged for legal and factual sufficiency where, as here, the appellate record includes both the reporter’s record and the clerk’s record. Id. at 794-95. On appeal, we consider all of the jurisdictional evidence before the trial court. Fish v. Tandy Corp., 948 S.W.2d 886, 891 (Tex.App.-Fort Worth 1997, pet. denied). If the special appearance is based upon undisputed or established facts, the appellate court conducts a de novo review of the trial court’s order. Conner v. ContiCarriers & Terminals, Inc., 944 S.W.2d 405, 411 (Tex.App.-Houston [14th Dist.] 1997, no writ).

III.Governing Law

It is well-established that our state courts may properly exercise person *411 al jurisdiction over a nonresident corporate defendant only if federal due process requirements and the requirements of the Texas long-arm statute are satisfied. Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 412-13, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). Because the personal jurisdiction of Texas courts extends “ ‘as far as the federal constitutional requirements of due process will permit,’” we rely on precedent from both federal and state courts in determining whether a nonresident defendant has met its burden to negate all bases of jurisdiction. BMC Software, 83 S.W.3d at 795 (quoting U-Anchor Adver., Inc. v. Burt, 553 S.W.2d 760, 762 (Tex.1977)). State statutory and federal due-process requirements are satisfied if (a) the nonresident corporation has certain minimum contacts with Texas, and (b) our exercise of personal jurisdiction over the nonresident does not offend “traditional notions of fair play and substantial justice.” See Helicopteros, 466 U.S. at 412-13, 104 S.Ct. 1868; Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945).

A. Minimum Contacts

The first of these requirements, that of sufficient minimum contacts, is satisfied if the nonresident defendant has “ ‘purposefully availed] itself of the privileges of conducting activities within the forum State, thus invoking the benefits and protections of its laws.’ ” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985) (quoting Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958)). The “purposeful availment” requirement ensures that a nonresident corporation will not be haled into a foreign jurisdiction based on “ ‘[t]he unilateral activity of those who claim some relationship’ ” with the defendant or as the result of “ ‘random,’ ‘fortuitous,’ or ‘attenuated’ contacts.” Id. (quoting Hanson, 357 U.S. at 253, 78 S.Ct. 1228); Keeton v. Hustler Magazine, Inc., 465 U.S. 770, 774, 104 S.Ct. 1473, 79 L.Ed.2d 790 (1984).

To determine whether the nonresident corporate defendants have purposefully availed themselves of the privileges of conducting business within the State of Texas, three factors are relevant here. See Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777, 785 (Tex.2005). First, we consider only each defendant’s own actions. Id. Seeond, the acts of each defendant must be “purposeful,” rather than random, isolated, or fortuitous. Id. Third, each “defendant must seek some benefit, advantage, or profit by ‘availing 5 itself of the jurisdiction.” Id. (citing World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980)). Because “all contacts [must] be carefully investigated, compiled, sorted, and analyzed for proof of a pattern of continuing and systematic activity,” we do not consider any of a defendant’s contacts in isolation, but instead apply these factors to all of each nonresident defendant’s contacts with Texas. Schlobohm v. Schapiro, 784 S.W.2d 355, 359 (Tex.1990).

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Cite This Page — Counsel Stack

Bluebook (online)
298 S.W.3d 404, 172 Oil & Gas Rep. 145, 2009 Tex. App. LEXIS 7870, 2009 WL 3210653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/all-star-enterprise-inc-v-buchanan-texapp-2009.