Golden Peanut Company, LLC D/B/A Golden Peanut and Tree Nuts v. Give and Go Prepared Foods Corp.

Court of Appeals of Texas·Decided May 14, 2019·No. 05-18-00626-CV·Published

Opinion

Reverse and Render; Opinion Filed May 14, 2019.

In The Court of Appeals Fifth District of Texas at Dallas No. 05-18-00626-CV

GOLDEN PEANUT COMPANY, LLC D/B/A GOLDEN PEANUT AND TREE NUTS, Appellant V. GIVE AND GO PREPARED FOODS CORP., Appellee

On Appeal from the 101st Judicial District Court Dallas County, Texas Trial Court Cause No. DC-17-13535

MEMORANDUM OPINION Before Justices Bridges, Partida-Kipness, and Carlyle Opinion by Justice Carlyle

This case reads like a law school exam: a Canadian confectioner sued a Georgia-based1 nut

supplier and a Texas-based nut supplier in Dallas County. Texas pecans are at the center of the

controversy unless they aren’t. Weevils found their way into some pecans somewhere, which was

a problem.

Appellee, Canadian corporation Give and Go, sued appellant, Georgia LLC Golden Peanut,

in Dallas County claiming that Golden Peanut delivered, from its Georgia plant to Give and Go’s

Canadian plant, weevil-infested pecan pieces, some or all of which may have come from Texas.2

1 (the Peach State, not the country in the Caucasus) 2 Give and Go also sued San Saba Pecan, a Texas limited partnership, on a similar claim, but they are understandably not a party to this special appearance appeal. San Saba has asked the trial court to move the case to its home in San Saba County. The trial court denied Golden Peanut’s special appearance but didn’t provide its reasoning. See

TEX. R. CIV. P. 296. We reverse and render judgment, dismissing Give and Go’s claims against

Golden Peanut because Texas courts lack jurisdiction over Golden Peanut in this particular case.

Because all issues are settled in law, we issue this memorandum opinion. See TEX. R. APP. P. 47.4.

I. Background

Give and Go alleged (1) beginning in late 2016, Golden Peanut “supplied Plaintiff with

small pecan pieces containing whole and partial pecan weevil larvae visible to the human eye”;

(2) Give and Go “had no choice but to engage in a . . . recall of the Pecans,” which caused Give

and Go to “suffer significant property damage and associated economic damages”; and (3) the trial

court “has personal jurisdiction over the Defendants because Defendants do business in Dallas

County, Texas.”

Golden Peanut filed a special appearance, contending (1) it “is not a Texas resident”;

(2) “general personal jurisdiction is lacking as Golden Peanut is not ‘at home’ in Texas because it

is a Georgia limited liability company with its principal place of business in Georgia”; and

(3) specific personal jurisdiction is lacking because “Plaintiff’s lawsuit does not arise from any

Golden Peanut conduct in Texas” and “there is no nexus between Plaintiff’s allegations against

Golden Peanut and Golden Peanut’s connections to Texas.” In an affidavit attached to the special

appearance, Kevin J. Kramer, Golden Peanut’s Vice President of Tree Nuts, stated, “All of the

pecans associated with [Give and Go’s] Orders were shipped from Golden Peanut’s shelling plant

in Camilla, Georgia to Give and Go in Canada.” The record indicates that once pecans arrive at

the Camilla shelling plant, they are mixed together such that tracing shelled pecans’ origins

becomes near impossible.

In its response to the special appearance, Give and Go contended (1) Golden Peanut is

subject to personal jurisdiction in Texas and (2) Golden Peanut submitted to personal jurisdiction

–2– by “compelling merits-based discovery and participating in other non-jurisdictional matters and

hearings.” Following the special appearance hearing, both parties filed supplemental briefs.

Golden Peanut asserted it is not subject to general jurisdiction in Texas because (1) Georgia is its

state of incorporation and principal place of business; (2) “[f]or a company with locations in five

states and three countries, Golden Peanut’s limited Texas facilities are insufficient”; and

(3) “Texas employees making up 13% of a company’s worldwide workforce is insufficient.”

Golden Peanut attached and cited another Kramer affidavit, which included an exhibit describing

Golden Peanut’s “global footprint” as consisting of its corporate headquarters and regional office

in Georgia; eight “peanut facilities,” one of which is a shelling and storage facility in Texas; four

“pecan facilities,” one of which is a shelling and packaging facility in Texas; and two “tree nut

facilities” in California.

Give and Go’s supplemental brief stated (1) “Golden Peanut concedes that potentially all

of Golden Peanut’s pecans at issue in this case could have come from its Texas pecans suppliers”

and (2) “Give and Go has satisfied the ‘substantial connection’ requirement because its claims

arise from pecans contaminated with weevils that Golden Peanut sourced from Texas and sold to

Give and Go.”

II. The special appearance

Whether a trial court has personal jurisdiction over a nonresident defendant is a question

of law that we review de novo. Old Republic Nat’l Title Ins. Co. v. Bell, 549 S.W.3d 550, 558

(Tex. 2018); Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex. 2007); Michiana

Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777, 790–91 (Tex. 2005). If, as in this case, the

trial court does not issue findings of fact and conclusions of law with its special appearance ruling,

we imply all findings of fact necessary to support its ruling that are supported by the evidence.

BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 795 (Tex. 2002). When jurisdictional

–3– facts are undisputed, whether those facts establish jurisdiction is a question of law. Old Republic,

549 S.W.3d at 558.

Texas courts may exercise personal jurisdiction over a nonresident defendant if (1) the

Texas long-arm statute permits exercising jurisdiction and (2) asserting jurisdiction satisfies

constitutional due process guarantees. Cornerstone Healthcare Grp. Holding, Inc. v. Nautic Mgmt.

VI, L.P., 493 S.W.3d 65, 70 (Tex. 2016); Kelly v. Gen. Interior Constr., Inc., 301 S.W.3d 653, 657

(Tex. 2010); see also TEX. CIV. PRAC. & REM. CODE §§ 17.041–.045 (“Long-Arm Jurisdiction in

Suit on Business Transaction or Tort”). The Texas long-arm statute reaches “as far as the federal

constitutional requirements for due process will allow.” Am. Type Culture Collection, Inc. v.

Coleman, 83 S.W.3d 801, 806 (Tex. 2002). Personal jurisdiction over a nonresident defendant

satisfies constitutional due process guarantees when (1) the nonresident defendant has established

minimum contacts with the forum state and (2) exercising jurisdiction comports with traditional

notions of fair play and substantial justice. See M & F Worldwide Corp. v. Pepsi-Cola Metro.

Bottling Co., Inc., 512 S.W.3d 878, 885 (Tex. 2017) (citing Walden v. Fiore, 571 U.S. 277, 283

(2014)).

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Golden Peanut Company, LLC D/B/A Golden Peanut and Tree Nuts v. Give and Go Prepared Foods Corp., (Tex. Ct. App. 2019).

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