EMI Music Mexico, S.A. De C v. v. Rodriguez

97 S.W.3d 847, 2003 Tex. App. LEXIS 954, 2003 WL 194715
CourtCourt of Appeals of Texas
DecidedJanuary 30, 2003
Docket13-01-867-CV
StatusPublished
Cited by26 cases

This text of 97 S.W.3d 847 (EMI Music Mexico, S.A. De C v. v. Rodriguez) 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
EMI Music Mexico, S.A. De C v. v. Rodriguez, 97 S.W.3d 847, 2003 Tex. App. LEXIS 954, 2003 WL 194715 (Tex. Ct. App. 2003).

Opinion

OPINION

Opinion by

Justice YÁÑEZ.

Appellant, EMI Music Mexico, S.A. de C.V. (“EMI Mexico”), a Mexican corporation, brings this accelerated interlocutory appeal of an order denying its special appearance. See Tex. Civ. Prao. & Rem.Code Ann. § 51.014(a)(7) (Vernon Supp.2003); Tex.R.App. P. 28.1. The underlying lawsuit is a personal injury suit brought by appel-lees 1 for damages arising out of a 1999 car crash in Mexico, which resulted in the deaths of several musicians and employees of a Texas musical group called “Intoca-ble.” In two issues, EMI Mexico contends the trial court erred in denying its special appearance because: (1) EMI Mexico’s contacts with Texas are insufficient to support the exercise of general jurisdiction; and (2) EMI Mexico’s conduct in sending its employees into Texas to pick up members of the band and transport them into Mexico is insufficient to support the exercise of specific jurisdiction. We affirm the trial court’s ruling denying EMI Mexico’s special appearance.

Background

EMI Mexico is a Mexican corporation that is an indirect wholly-owned subsidiary *852 of EMI Group PLC, a United Kingdom holding company. EMI Latin 2 is an unincorporated division of Capitol Records, Inc. (“Capitol”), a United States corporation, which, like EMI Mexico, is also a wholly-owned subsidiary of EMI Group PLC. EMI Mexico’s principal office is in Mexico City; it has no offices outside Mexico. EMI Mexico is not a resident of Texas, is not authorized or registered to do business in Texas, has no agents or representatives in Texas, owns no property in Texas, does not advertise in Texas, has no employees who are residents of Texas, and maintains no bank accounts in Texas.

EMI Mexico enters into recording contracts with Mexican artists, and promotes and sells those artists’ recordings in Mexico. Outside Mexico, recordings of EMI Mexico artists are sold through a reciprocal license agreement with EMI Music International Services Limited (“EMI-MUS”), a United Kingdom company also owned by EMI Group PLC. Through the agreement, called a Matrix Exchange Agreement (“MEA”), EMI Mexico has the exclusive right to manufacture, distribute and sell in Mexico any recordings within the repertoire of any EMI company around the world. In exchange, EMI Mexico: (1) grants to EMI Group an exclusive license to sell EMI Mexico repertoire everywhere in the world except Mexico, and (2) agrees to pay a royalty to EMI Group for each recording of another EMI company’s repertoire sold by EMI Mexico in Mexico. Intocable has a recording contract with EMI Latin. Thus, under the MEA, EMI Mexico is licensed to sell Into-cable’s recordings in Mexico.

When EMI Mexico organizes a promotional tour in Mexico by artists of another EMI repertoire owner, EMI Mexico is responsible for arrangements and related expenses inside Mexico; travel costs in and out of Mexico, however, are borne by the repertoire owner.

In January 1999, Lidia Salazar, then EMI Mexico’s regional marketing manager, arranged a promotional tour for Intoca-ble in Mexico. Initially, EMI Latin made travel arrangements for the band by booking a commercial flight from Texas to Mexico City. Several days later, however, the plans were changed because the band had not received the appropriate visas for a direct international flight. Salazar therefore arranged for EMI Mexico’s Monterrey office to rent two Suburbans in Mexico to pick the band members up in McAllen and take them to Monterrey to catch a flight to Mexico City. The circumstances regarding who initiated the backup travel plans are somewhat in dispute. 3 It is undisputed, however, that in accordance with such plans, EMI Mexico assigned two of its employees, David Perez and Enrique *853 Herrera, to drive the Suburbans to McAl-len and pick up the band and its equipment.

On January 30, 1999, the night before the tour was to begin, the band played at a festival in McAllen. The concert and follow-up activities lasted until the early morning hours. As planned, Perez and Herrera picked up the band members at the McAllen Holidome hotel around 7:30 a.m. on January 31, 1999. 4 The band members and the road manager rode in the Suburban driven by Perez; the Suburban driven by Herrera carried the band’s equipment. At a checkpoint five miles south of the border, the Suburban driven by Perez was briefly delayed. According to deposition testimony of Rene Martinez, one of the band members, Perez began speeding following the delay to catch up with the other Suburban. While traveling southbound on Highway 40 to Monterrey, near China, in Nuevo Leon, the right rear passenger tire of the Suburban driven by Perez suffered a tread separation, and Perez was unable to retain control of the vehicle. The vehicle rolled over, and all but one of the passengers was thrown from the vehicle. As a result of the crash, band members Sylvestre Rodriguez, Jose Angel Farias, and road manager Jose Angel Gonzalez were killed. Band owners Ricardo Munoz and Rene Martinez, band members Sergio Serna and Daniel Sanchez, and the driver, Perez, suffered injuries.

The band, the injured band members, and relatives of the deceased band members filed suit in Texas district court. EMI Mexico was later added as a defendant. Appellees allege acts of negligence by EMI Mexico and its employee, Perez. EMI Mexico filed a special appearance challenging the court’s in personam jurisdiction. Following a hearing, the trial court denied the special appearance. This interlocutory appeal followed.

Standard of Review

We begin with the presumption that the court has jurisdiction over the parties. El Puerto de Liverpool v. Servi Mundo Llantero S.A. de C.V., 82 S.W.3d 622, 628 (Tex.App.-Corpus Christi 2002, pet. dism’d w.o.j.) (citing Kawasaki Steel Corp. v. Middleton, 699 S.W.2d 199, 203 (Tex.1985)). A nonresident defendant bears the burden of negating all bases of personal jurisdiction to prevail in a special appearance. Id. (citing CSR Ltd. v. Link, 925 S.W.2d 591, 596 (Tex.1996) (orig.proceeding)).

In considering an order granting or denying a special appearance, we review the trial court’s resolution of disputed factual issues under a factual sufficiency of the evidence standard, and review the trial court’s conclusions of law de novo. Id. (citations omitted). However, if a special appearance is based on undisputed or established facts, an appellate court instead conducts a de novo review of the trial court’s order granting a special appearance as a question of law. Id. In conducting its review, the appellate court will consider all of the evidence that was before the trial court, including the pleadings, any stipulations, affidavits and exhibits, the results of discovery, and any oral testimony. BHP de Venezuela, C.A. v. Casteig,

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97 S.W.3d 847, 2003 Tex. App. LEXIS 954, 2003 WL 194715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/emi-music-mexico-sa-de-c-v-v-rodriguez-texapp-2003.