Greenfield Energy, Inc. v. Duprey

252 S.W.3d 721, 2008 Tex. App. LEXIS 2533, 2008 WL 961312
CourtCourt of Appeals of Texas
DecidedApril 10, 2008
Docket14-07-00527-CV
StatusPublished
Cited by32 cases

This text of 252 S.W.3d 721 (Greenfield Energy, Inc. v. Duprey) 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
Greenfield Energy, Inc. v. Duprey, 252 S.W.3d 721, 2008 Tex. App. LEXIS 2533, 2008 WL 961312 (Tex. Ct. App. 2008).

Opinion

OPINION

EVA M. GUZMAN, Justice.

This is an appeal from an order granting the special appearances of appellees, a foreign company and foreign citizen. Appellants contend that the Texas contacts of two foreign subsidiary companies, wholly-owned by the foreign company, should be imputed to appellees for jurisdictional purposes. Appellants further contend that appellees’ contacts with Texas are sufficient to support the jurisdiction of a Texas court. We conclude that imputation of the contacts of the subsidiaries to appellees is not warranted on this record. We further determine that appellees do not have sufficient minimum contacts with Texas to sustain special or general jurisdiction. We therefore affirm the trial court’s order granting appellees’ special appearances.

I. Factual And Peocedural Background

On January 22, 2007, Greenfield 1 sued Primera East Brighton Ltd. (“PEBL”), Primera Oil & Gas Ltd. (“POGL”), EOG Resources, Inc. (“EOG”), Lawrence Du-prey (“Duprey”), and CL Financial, Ltd. (“CL Financial”) alleging (a) breach of contract, (b) tortious interference with contract, (c) conspiracy to interfere with business relations, (d) fraud, (e) unjust enrichment, (f) negligent misrepresentation, (g) promissory estoppel, (h) quantum meruit, and (i) alter ego, single business enterprise, and sham to perpetrate fraud. As relevant to this appeal, Greenfield asserted that jurisdiction was proper because PEBL and POGL (collectively, “the Prim-era entities”) allegedly

operated ... as the “alter ego” of CL Financial Limited and Lawrence Du-prey, the agent of CL Financial Limited and Lawrence Duprey[,] or as part of a single business enterprise with CL Financial Limited and Lawrence Duprey and any and all contacts with Houston, Harris County, Texas made by Defendant Primera should be imputed to Defendants CL Financial Limited and Lawrence Duprey.

CL Financial and Duprey filed special appearances, and the trial court conducted a hearing on April 30, 2007. The trial court granted the special appearances on June 12, 2007 and subsequently filed factual and legal findings on July 11, 2007. This appeal timely ensued.

A. The Parties

Lawrence Duprey is a resident citizen of the Republic of Trinidad and Tobago who does not live and has never worked in Texas. He owns the controlling interest in CL Financial, which is a holding company based in and incorporated under the laws of the Republic of Trinidad and Tobago, with no offices or employees in Texas. In turn, CL Financial is the sole shareholder of the Primera entities. 2 Duprey is also chairman of the board of CL Financial and the Primera entities. Pat Acham, a resident of the Republic of Trinidad and Tobago, is the chief executive officer of both the *725 Primera entities. Neither of the Primera entities have offices or employees in Texas.

Greenfield Energy, Inc. (“Greenfield Canada”) is a Canadian corporation. In August 2003, two principals of this corporation, Canadian residents Ed Wenger and Larry Smyth, were introduced to Acham by a Houston resident, Jim Oberkircher. In September 2003, Wenger and Ober-kircher formed a Houston company, also named Greenfield Energy, Inc. (“Greenfield Houston”), 3 and began negotiating with Acham regarding the rights to the property at the center of this dispute, an oil and gas property located off the coast of Trinidad, referred to by the parties as the “East Brighton block.” The dispute in this case arises from the drilling rights to this property and an agreement between the Primera entities and Greenfield Canada and Greenfield Oil Trinidad, Ltd. (“Greenfield Trinidad”).

B. The June Letter Agreement

In June 2004, Acham and Smyth signed a letter agreement (the “June Letter Agreement”). 4 Acham drafted the agreement and signed it in his capacity as chief executive officer of both Primera entities. The June Letter Agreement indicated that Greenfield Canada was signing it “on behalf of a company to be formed under the laws of the Republic of Trinidad and Tobago.” The agreement provided that the parties would each undertake certain actions in order to “negotiate and consummate” a formal agreement and an Operating Agreement by August 31, 2004. 5 The letter also contained the following provision;

The subject matter described herein is intended by Primera and Greenfield to remain confidential, not to be disclosed to any other party without the written consent of Primera and Greenfield, unless such disclosure is required by the Government or of the Government to whose jurisdiction any party hereto is subject or of any agency thereof.

According to Acham, he faxed this letter to Greenfield Canada from the Houston offices of EOG when he was there discussing development of other oil and gas prospects with EOG on June 29, 2004. It is primarily the alleged breach of this letter agreement and the alleged tortious interference with this agreement by CL Financial, Du-prey, and EOG for which the Greenfield entities have sued.

C. The Acquisition and Transfer of the East Brighton Block

Much of Greenfield’s arguments regarding imputing the contacts of the Primera entities to CL Financial and Duprey rely on ownership of the rights to the East *726 Brighton block. Therefore, a brief history surrounding the acquisition and subsequent transfer of these rights provides the necessary context for this case.

• In 1999, CL Financial purchased drilling and development rights to the East Brighton block, and also purchased a company named Premier Oil Fields of Trinidad, Ltd., subsequently renamed POGL. At the time CL Financial acquired the rights to the block, an existing joint operating agreement was in place between the previous operator and Petroleum Company of Trinidad & Tobago Ltd. (“Petrotrin”), which required Petrot-rin’s consent to any transfer of the interests to a non-affiliated company, as well as the consent of the government of Trinidad and Tobago to any transfer.
• In early March of 1999, CL Financial requested the government’s consent to this transfer, which was granted in April of 1999. In July of 1999, CL Financial, the previous operator, and Petrotrin executed a novation to the joint operating agreement, substituting CL Financial into the agreement in place of the prior operator.
• CL Financial apparently intended to transfer the East Brighton assets to POGL because POGL started accounting for these assets in 1999. In 2001, the Primera entities began assembling the paperwork necessary for the transfer. In April 2002, CL Financial requested Petrotrin’s consent to the transfer. Petrotrin consented to the transfer of CL Financial’s rights to POGL in June 2002. Shortly thereafter, CL Financial sought governmental consent to the transfer.

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Bluebook (online)
252 S.W.3d 721, 2008 Tex. App. LEXIS 2533, 2008 WL 961312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenfield-energy-inc-v-duprey-texapp-2008.