Bautista v. Trinidad Drilling Ltd.

484 S.W.3d 491, 2016 Tex. App. LEXIS 266, 2016 WL 144705
CourtCourt of Appeals of Texas
DecidedJanuary 12, 2016
DocketNO. 01-14-00892-CV
StatusPublished
Cited by8 cases

This text of 484 S.W.3d 491 (Bautista v. Trinidad Drilling Ltd.) 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
Bautista v. Trinidad Drilling Ltd., 484 S.W.3d 491, 2016 Tex. App. LEXIS 266, 2016 WL 144705 (Tex. Ct. App. 2016).

Opinion

OPINION

.Michael Massengale, Justice

This is an interlocutory appeal' from a trial court’s order in a wrongful-death action; granting a special appearance filed by appellee Trinidad Drilling Limited, a Canadian corporation. The decedent, Nabor Alvarado, was employed by an indirect subsidiary of Trinidad Drilling Limited, and that entity is a co-defendant in the ongoing case, along with additional code-fendant ■ manufacturers of1 drilling rig equipment sued on products liability and negligence theories.

Because the appellee satisfied its burden to negate all alleged bases of personal jurisdiction over it, we affirm the interlocutory order of the trial court.

Background

Nabor Alvarado was fatally injured in July 2010 while installing a drilling rig for his employer, Trinidad Limited Partnership (Trinidad LP). His surviving relatives sued numerous parties, alleging that he was killed when a piece of the rig came loose and fell on him. In their second amended petition, the family joined as additional defendants the manufacturers of the rig and rig equipment, as well as. the employer’s indirect parent company, Trinidad Drilling Limited (Trinidad Ltd.).

Trinidad Ltd. is a foreign corporation organized under the laws of Canada and [496]*496conducting business there. It.filed a special appearance, supported by the affidavit of its Vice President of Finance, Gavin Lane, asserting that it was not subject to personal jurisdiction in a Texas court. After Alvarado’s family filed a third amended petition and a response to the special appearance, Trinidad Ltd. filed a reply, supported by a second affidavit from Lane.

The trial court held a non-evidentiary hearing and sustained the special appearance, dismissing the claims against Trinidad Ltd. for lack, of personal jurisdiction. Alvarado’s family requested findings of fact, , but the trial court did not enter the requested findings. The family then filed this interlocutory .appeal from the. order granting the special appearance., See Tex. Civ. Pbac, & Rem. Code § 51.014(a)(7).

Analysis

The appellants contend that the trial court erred when it concluded that it could not exercise personal jurisdiction over Trinidad Ltd. and sustained the. special appearance.

Texas courts may exercise personal jurisdiction .over a nonresident if the long-arm statute authorizes it, consistent with federal and state constitutional due-process guarantees. Moncrief Oil Int’l Inc. v. OAO Gazprom, 414 S.W.3d 142, 149 (Tex.2013). The long-arm statute permits Texas courts to exercise jurisdiction over a nonresident defendant that “does business” in Texas. See Tex. Civ. PRAC. & Rem. Code §§ 17.041-.045. The statute provides a non-exhaustive list of activities that constitute “doing business” in Texas. Id.; BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789, 795 (Tex.2002). Given the statute’s broad language, the Supreme Court of Texas has held that the statute extends Texas courts’ jurisdiction “as far as the federal constitutional requirements of due process will permit.” BMC Software, 83 S.W.3d at 795 (quoting U-Anchor Advert., Inc. v. Burt, 553 S.W.2d 760, 762 (Tex.1977)). Thus, we rely on precedents from the United States Supreme Court and other federal courts, as well as Texas decisions, when determining whether a nonresident defendant has shown that the exercise of personal jurisdiction violates due process. Id.

Personal jurisdiction over a nonresident is consistent with due process when the nonresident has established minimum contacts with the forum state, and the exercise of jurisdiction comports with traditional notions of fair play and substantial justice. Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 575 (Tex. 2007) (citing Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945)). In most cases, the exercise of jurisdiction over a nonresident defendant will not conflict with notions of fair play and substantial justice if the nonresident has minimum contacts with the forum. Moncrief Oil, 414 S.W.3d at 154-55.

“A defendant establishes minimum contacts with a state when it ‘purposefully avails itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws.’ ” Retamco Operating, Inc. v. Republic Drilling Co., 278 S.W.3d 333, 338 (Tex.2009) (quoting Hanson v: Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 1240, 2 L.Ed.2d 1283 (1958)). The Supreme Court of Texas has identified three distinct aspects of the “purposeful availment” requirement. First, only the defendant’s contacts with the forum are relevant. Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777, 785 (Tex.2005). A defendant should not be called to court in a jurisdiction solely as a result of the unilateral activity of another party or third person.' Id. Second, the acts relied on [497]*497must be purposeful, as opposed to random, isolated, or fortuitous. Id. Third, the defendant must seek some benefit, advantage, or profit by availing itself of the jurisdiction. Id. “Jurisdiction is premised on notions of implied consent — that by invoking the benefits and protections of a forum’s laws, a nonresident consents to suit there.” Id. In-contrast, “a nonresident may purposefully avoid a particular jurisdiction by structuring its transactions so as neither to profit from the forum’s laws nor be subject to its jurisdiction.” Id.

A defendant’s contacts can vest a court with either specific or general jurisdiction. BMC Software, 83 S.W.3d at 795. Specific jurisdiction is established when the claims in question arise from or relate to the defendant’s purposeful contacts with Texas. Kelly v. Gen. Interior Constr., Inc., 301 S.W.3d 653, 657-58 (Tex. 2010). By contrast,- a court may assert general jurisdiction over foreign corporations to hear any and all claims against them if their contacts with the forum state are so continuous and- systematic that-they are essentially at home in the forum state. Goodyear Dunlop Tires Operations, S.A. v. Brawn, 564 U.S. 915, 131 S.Ct. 2846, 2851, 180 L.Ed.2d 796 (2011).

When a defendant challenges the exercise of personal jurisdiction in a special appearance, the plaintiff and the defendant bear shifting burdens. Kelly, 301 S.W.3d at 658. The initial burden is on the'plaintiff to plead sufficient allegations to establish jurisdiction over the defendant. Id. After the plaintiff meets its initial burden,1 the burden then shifts to the defendant to negate all bases of jurisdiction alleged by the plaintiff. See -.id.

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484 S.W.3d 491, 2016 Tex. App. LEXIS 266, 2016 WL 144705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bautista-v-trinidad-drilling-ltd-texapp-2016.