First Oil PLC v. ATP Oil & Gas Corp.

264 S.W.3d 767, 2008 WL 2186781
CourtCourt of Appeals of Texas
DecidedJune 24, 2008
Docket01-07-00703-CV
StatusPublished
Cited by31 cases

This text of 264 S.W.3d 767 (First Oil PLC v. ATP Oil & Gas Corp.) 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
First Oil PLC v. ATP Oil & Gas Corp., 264 S.W.3d 767, 2008 WL 2186781 (Tex. Ct. App. 2008).

Opinion

OPINION

ELSA ALCALA, Justice.

In this interlocutory appeal, appellant, First Oil PLC (First Oil), appeals from the trial court’s order denying its special appearance in the lawsuit filed by appellees, ATP Oil & Gas Corporation (ATP Texas) and ATP Oil & Gas (UK) Ltd. (ATPUK). See Tex. Crv. PRAC. & Rem.Code Ann. § 51.014(a)(7) (Vernon Supp.2007). More than two years after the appellees filed the lawsuit, they amended their pleadings to add Ian Suttie as a party to the lawsuit and then used those amended pleadings to support their position that the trial court should grant their motion for continuance of the special appearance hearing. Appel-lees’ position was that First Oil would not be prejudiced by the delay of the special appearance hearing because the amended pleadings added a new party to the ease and therefore the case would not be resolved by the special appearance hearing. In defending against the motion for continuance of the special appearance hearing, First Oil filed, argued, and obtained a favorable ruling on its motion to strike the amended pleading. The trial court held that First Oil’s conduct concerning the motion to strike the amended pleadings waived its special appearance because the motion to strike was determined before the special appearance motion. In its sole issue, First Oil contends it did not waive its special appearance because it was necessary to argue the motion to strike in order to defend against appellee’s motion for continuance of the special appearance hearing. Appellees respond by supporting the trial court’s waiver ruling, and, in a conditional cross-point, by challenging the trial court’s holding that, except for the waiver, the special appearance would have been meritorious. We conclude that the trial court erred in its determination that First Oil waived its special appearance, but *772 we agree with the trial court’s finding that First Oil does not have sufficient minimum contacts with Texas to subject it to the jurisdiction of Texas courts. We therefore reverse and render judgment dismissing First Oil from the lawsuit.

Background

To understand the underlying dispute, it is necessary to begin with a brief discussion of the relationship between the corporations that are the parties in this lawsuit. First Oil, a holding company incorporated in Scotland, is wholly owned and controlled by Suttie, a Scottish businessman. Suttie owns First Oils’s shares individually and through another company that he controls. First Oil is indirectly a parent company of Expro, a United Kingdom company specializing in the production of oil and gas in the North Sea. Expro entered into a joint venture with ATPUK to develop oil and gas properties in the North Sea. ATPUK is incorporated in England and Wales, and is a subsidiary of ATP Texas, a Texas corporation that engages in the business of acquisition, development, and production of oil and gas properties in the Gulf of Mexico and the North Sea.

The initial litigation was between Expro and ATPUK in a court in England. The joint operating agreement between Expro and ATPUK contained forum-selection and choice-of-law clauses specifying that any claim arising out of the joint venture or the joint operating agreement would be governed by English law and brought in English courts. Expro filed suit in an English court against ATPUK over the joint venture agreement, but that suit was dismissed upon Expro’s payment of attorney’s fees and costs.

Litigation was resurrected in Texas in Harris County in March 2005. ATP Texas and ATPUK filed suit against First Oil in the district court, asserting claims for tor-tious interference with existing contracts, tortious interference with prospective business relations, defamation, and business disparagement. The pleadings asserted that Suttie and First Oil knew of “ATP’s highly advantageous financial relationships” with two companies and began to interfere with these relationships. According to the pleadings, Suttie and First Oil “began wreaking havoc” with the relationships of ATP Texas and ATPUK by making false accusations against them of sweetheart deals and kickbacks, by impugning their professional reputation, by delaying critical payments, by instituting frivolous and expensive litigation, by engaging in a series of deliberate tactics to portray them in the worst possible light, and by bringing maximum economic pressure on them by interfering with the existing relationships with key vendors and lenders.

First Oil responded to the lawsuit in Harris County by filing a special appearance to challenge the court’s exercise of personal jurisdiction over it, but the special appearance hearing was repeatedly delayed. The hearing was initially set for September 2006, but appellees sought a delay to re-serve discovery requests on Suttie in Scotland. More delay of the hearing resulted when, in February 2007, the trial court granted appellees’ request to depose First Oil’s corporate representative. After the deposition was taken, the hearing was then scheduled for June 2007. However, ten days before that setting, ap-pellees requested another continuance of the hearing.

Appellees’ motion for continuance relating to the June 2007 hearing was filed at about the same time they filed a second amended petition that added Suttie as a defendant. The motion for continuance by appellees contended that First Oil would not be prejudiced by the delay now that the amended pleadings added Suttie be *773 cause the “ruling on First Oil’s special appearance will not dispose of this case.” The other two grounds in the motion for continuance concerned the need for more discovery relating to personal jurisdiction; more specifically, appellees asserted that they still needed discovery that was the subject of a motion to compel discovery relevant to the single business enterprise theory of jurisdiction and an affidavit from the former president of Nautronix, Inc., who was out of the country.

First Oil opposed the continuance of the special appearance hearing. In response to appellees’ assertion that the continuance would not cause First Oil prejudice since the addition of Suttie as a party to the case meant that the case would not be resolved by the special appearance hearing, First Oil filed a motion to strike the amended pleading, explaining that the addition of Suttie “at this late hour will surely delay final disposition of this case” and that the delay would prejudice First Oil. First Oil also asserted that adding Suttie as a party would violate the rules of civil procedure, the trial court’s scheduling order, and the statute of limitations. First Oil contended that “the petition adds a party well after the deadline for adding parties in this matter has passed” because under rule 63 of the Texas Rules of Civil Procedure 1 any amended pleadings were due no later that May 2006, over a year before the second amended petition was filed, and the amended petition violated the trial court’s scheduling order that set the case for trial in May 2006. First Oil also asserted that “the attempt to add Mr. Suttie is entirely futile.” First Oil claimed that the amended petition asserted a tortious interference claim against Suttie, but that claim was barred by the two-year statute of limitations because it was filed more than two years after the original suit had been filed. 2

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Cite This Page — Counsel Stack

Bluebook (online)
264 S.W.3d 767, 2008 WL 2186781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-oil-plc-v-atp-oil-gas-corp-texapp-2008.