Ashdon, Inc. v. Gary Brown & Associates, Inc.

260 S.W.3d 101, 2008 Tex. App. LEXIS 3945, 2008 WL 2209203
CourtCourt of Appeals of Texas
DecidedMay 29, 2008
Docket01-06-01186-CV
StatusPublished
Cited by23 cases

This text of 260 S.W.3d 101 (Ashdon, Inc. v. Gary Brown & Associates, Inc.) 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
Ashdon, Inc. v. Gary Brown & Associates, Inc., 260 S.W.3d 101, 2008 Tex. App. LEXIS 3945, 2008 WL 2209203 (Tex. Ct. App. 2008).

Opinion

OPINION

EVELYN V. KEYES, Justice.

In this breach of contract and conversion suit, appellants, Ashdon, Inc. d/b/a Impression Bridal and Emme Bridal, Inc. (collectively referred to as “Ashdon”) challenge the trial court’s order that granted the special appearance of appellees, Gary Brown & Associates, Inc. (“GBAI”) and Gary Brown, individually (collectively referred to as “Brown”). In one issue on appeal, Ashdon argues that the trial court erred in granting the special appearance.

We affirm.

*106 Background

Ashdon is an importer and wholesaler of wedding gowns and bridesmaids’ and prom dresses. Emme Bridal was incorporated in 1997 and conducts the same business as Ashdon. Brown, a resident of Florida, is the owner of GBAI, a Florida corporation with its principal place of business in Boca Raton, Florida. In 1992, Brown and GBAI started working for Ashdon 1 as independent contractors pursuant to a letter agreement. The parties agree that they signed an agreement, but the agreement produced at trial did not reflect all of the terms of the agreement. Pursuant to the agreement produced at trial, GBAI became the sales representative of Ashdon in western Pennsylvania, Ohio, Indiana, Kentucky, Michigan, Illinois, Wisconsin, Minnesota, Iowa, North Dakota, South Dakota, and portions of Missouri. Ashdon furnished promotional sales materials, including wedding dress bodices, pictures, and other sales materials, to Brown to enable him to sell the products. The evidence showed that, during the course of the employment relationship, Brown would return the promotional materials to Ash-don at various times. The evidence conflicted as to where Brown took possession of the materials and whether he returned them in person or through the mail.

On January 14, 2005, Brown’s relationship with Ashdon ended, and Ashdon demanded that Brown return the promotional materials he still had in his possession. Because Brown did not return the promotional materials until May 2005, Ashdon filed suit in Houston for breach of contract and conversion, alleging that it was damaged by not having the promotional materials during the busiest part of the sales year. Brown filed an answer subject to a special appearance. His special appearance argued that he was not subject to jurisdiction in Texas because he did not have the requisite minimum contacts with Texas, he had not purposefully established minimum contacts with Texas, and the cause of action alleged by Ashdon did not arise from any specific contact by Brown or GBAI with Texas.

Brown did not testify at the special appearance hearing, but he attached an affidavit to his motion for special appearance. His affidavit stated, “The contract between GBAI and Ashdon was negotiated and executed in Florida.” He further stated, “Neither GBAI nor I have ever entered into a contract in Texas or with a Texas choice of law or forum selection clause.” He also stated, “Neither GBAI nor I have ever committed any torts in whole or in part in Texas.” He also stated:

6. Neither GBAI nor I have ever owned, leased_or-possessed any real or personal property in Texas. Neither GBAI nor I have any bank accounts in Texas, nor have we filed any financing statements, borrowed any money, guaranteed any debt, or maintained any banking relationship in Texas. Neither GBAI nor I maintain any telephone listings, offices or P.O. Boxes in Texas.

In response to the allegations in Ash-don’s petition, Brown averred,

11. Neither GBAI nor I took any action within Texas that gave rise to Plaintiffs cause of action. The wedding dress bodices and other promotional materials received by GBAI from Ashdon were received and maintained in Florida, or areas *107 outside of Texas, until such time that they were returned to Ashdon.
12. I have never conducted business in Texas in my individual capacity. Neither GBAI nor I have ever been engaged as a sales representative for Ashdon, or any other manufacturer in Texas. In my capacity as the President of GBAI, I did visit Texas occasionally (once or twice a year at most) for the limited purpose of attending manufacturing shows in order to view new dress designs that would be promoted during the upcoming sales season. The product distributors generally paid for flight and hotel expenses for these trips. To the extent any sales of product to customers resulted from any such show, such sales were solicited and pre-negoti-ated outside of Texas. Neither GBAI nor I have solicited business from any Texas customer, sent any correspondence to potential customers in Texas, or engaged in routine sales or other profit making activities in Texas.

In response to Brown’s affidavit, Ashdon averred:

In 1992, Defendants entered into express and implied contracts with Impression Bridal, Inc., a Texas Corporation and the predecessor to Plaintiff Ashdon, Inc., a Texas corporation d/b/a Impression Bridal, to act as a independent sales representative for Impression. Plaintiff Ashdon, Inc. d/b/a Impression Bridal was formed in 1999 to continue the ongoing business of Impression Bridal, and Defendants continued selling the Impression products for Ashdon pursuant to express and implied contracts between Ashdon and Defendants entered into and performable in whole or in part in Texas. In 1997, Defendants entered into express and implied contracts with Emme Bridal, Inc., to act as independent sales representative for Emme. These contracts between Plaintiffs and Defendants were entered into in Texas and were performable in whole or in part in Texas by both Plaintiffs and Defendants. Defendants continued to work under their express and implied contracts with both Defendants until the contracts and business relationships between Plaintiffs and Defendants were terminated on January 14, 2005. During the many years during which Defendants’ contracts with Plaintiffs continued in force, Defendants were in contact with Plaintiffs in Texas by phone, e-mail, fax, or mail on a weekly basis concerning performance of those contracts, and traveled to Texas for business purposes related to and arising out of those contracts in nearly every year since 1992 until the contracts were terminated on January 14, 2005. Furthermore, Defendants were sent commission checks by Plaintiffs from Texas on a monthly basis and expense or draw checks on a more regular basis. Pursuant to and in order to carry out the express and implied independent sales representative contracts entered into between Plaintiffs and Defendants, Plaintiffs furnished to Defendants apparel samples for use by Defendants in selling Plaintiffs’ products, including wedding dress bodices and pictures to be used as sales tools in performance of the said express and implied independent sales representative contracts. When Defendants relationships with Plaintiffs under the express and implied contracts as described herein were terminated, Plaintiffs demanded return of their bodices and pictures, which had previously been supplied to Defendants. Defendants intentionally and with malice refused to return the bodices and pictures owned *108

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Bluebook (online)
260 S.W.3d 101, 2008 Tex. App. LEXIS 3945, 2008 WL 2209203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ashdon-inc-v-gary-brown-associates-inc-texapp-2008.