in Re John Edward Morris

Court of Appeals of Texas·Decided October 1, 2010·No. 03-10-00559-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-09-00069-CV

Leesboro Corporation, Appellant

v.

Claude Hendrickson, Appellee

FROM THE DISTRICT COURT OF MILAM COUNTY, 20TH JUDICIAL DISTRICT NO. 32594, HONORABLE ED MAGRE, JUDGE PRESIDING

OPINION

In this interlocutory appeal, appellant Leesboro Corporation challenges the

trial court’s grant of appellee Claude Hendrickson’s special appearance. Leesboro sued Dixie

Demolition, Hendrickson, who is the owner and manager of Dixie Demolition, and several other

defendants on various claims related to a salvage operation at a power plant in Rockdale, Texas.

Leesboro brought tort claims against Hendrickson based on an alleged fraudulent misrepresentation

Hendrickson made while in Texas. Hendrickson filed a special appearance, asserting that he was

not amenable to personal jurisdiction because he was a resident of Alabama and did not

have sufficient minimum contacts with Texas. The trial court granted his special appearance

and dismissed all claims against him for lack of personal jurisdiction. We will affirm the trial

court’s order. BACKGROUND

Hendrickson owns and operates Dixie Demolition, LLC (“Dixie”), a power plant

demolition company that operates out of Birmingham, Alabama. In September 2007, Dixie’s parent

company, Dixie Equipment, entered into a contract with Alcoa, Inc., to purchase and demolish

certain power plants at Alcoa’s aluminum plant in Rockdale, Texas. Dixie Equipment assigned its

rights in the Alcoa contract to Dixie, which later entered into a contract to sell most of the salvage

from the plant to Airways Recycling Group. Airways then entered into a contract with JNS

Enterprises to sell it some of the salvage from the Alcoa plant. Finally, Leesboro, a Texas

corporation, entered into a contract with JNS to purchase salvage materials from the Alcoa plant.

Leesboro, however, was never able to purchase any of the salvage from the Rockdale

plant because, according to Dixie, Airways defaulted on its contract with Dixie, and Dixie made

other arrangements to sell the salvage materials. As a result, the subsequent contracts flowing down

from the defaulted contract, including Leesboro’s, were never completed. Based on the failure to

perform these contracts, Leesboro sued Dixie, Airways, and JNS for breach of contract. Leesboro

also sued Dixie, Hendrickson, and Airways for fraud in the inducement, fraudulent concealment,

interference with contractual relations, conversion, and violations of the Texas Theft Liability Act.

Leesboro’s fraud claims against Hendrickson were based on its allegation that

Hendrickson had represented that he had signed, on behalf of Dixie, an agreement guaranteeing that

Leesboro would receive its salvage materials from the Rockdale plant regardless of the status of the

intervening contracts (“performance guarantee”). Specifically, Leesboro alleged that Hendrickson,

in order to induce Leesboro to enter into an agreement with JNS to purchase salvage rights and

2 deposit money under that purchase agreement, told Leesboro’s representative that he—i.e.,

Hendrickson—had signed the performance guarantee and that Leesboro would start receiving its

contracted salvage shipments once Leesboro paid the required deposit.

In response to Leesboro’s claims against him, Hendrickson filed a special appearance

asserting that he was not subject to the personal jurisdiction of Texas courts because he was a

resident of Alabama and did not have sufficient minimum contacts with Texas to establish specific

jurisdiction over him. Hendrickson also filed an affidavit and corroborating deposition testimony

to support his assertion that he neither signed the performance guarantee nor represented that he had

signed the performance guarantee. Leesboro responded by offering the deposition testimony of its

representative stating that Hendrickson had made the representation. Leesboro also objected to the

admission of Hendrickson’s affidavit on the grounds that it contained inadmissible evidence. After

a hearing, the trial court granted the special appearance and dismissed Leesboro’s claims against

Hendrickson for lack of jurisdiction. Leesboro appeals.

DISCUSSION

Personal Jurisdiction

Leesboro’s first four issues on appeal challenge the trial court’s decision to grant

Hendrickson’s special appearance and its finding that it did not have personal jurisdiction over

Hendrickson. Specifically, Leesboro argues that (1) the trial court erred as a matter of law in

granting Hendrickson’s special appearance, (2) the evidence established as a matter of law that the

trial court had specific jurisdiction over Hendrickson, (3) the trial court erred in impliedly finding

and concluding that Hendrickson negated the existence of personal jurisdiction, and (4) the evidence

3 was legally and factually insufficient to support the trial court’s implied finding that Hendrickson

negated the existence of personal jurisdiction. Because these issues are closely related, we will

address them together.

(i) Standard of Review

Whether a trial court has personal jurisdiction over a defendant is a question of law

that we review de novo. Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex. 2007).

The plaintiff bears the initial burden of pleading sufficient allegations to invoke jurisdiction under

the Texas long-arm statute. American Type Culture Collection, Inc. v. Coleman, 83 S.W.3d 801, 807

(Tex. 2002). Once the plaintiff has pleaded sufficient jurisdictional allegations, the defendant filing

a special appearance then assumes the burden of negating all bases of personal jurisdiction alleged

by the plaintiff. BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 793 (Tex. 2002).

“Because the plaintiff defines the scope and nature of the lawsuit, the defendant’s corresponding

burden to negate jurisdiction is tied to the allegations in the plaintiff’s pleading.” Kelly v. General

Interior Constr., Inc., 301 S.W.3d 653, 658 (Tex. 2010). However, the plaintiff’s pleadings are

not dispositive of the jurisdictional dispute, thus, both parties can present evidence either proving

or disproving the allegations. Id. at 658-59. The defendant can also negate jurisdiction on a legal

basis. Id. at 659.

In making its jurisdictional determination, the trial court must, if necessary, resolve

questions of jurisdictional fact. BMC Software, 83 S.W.3d at 794. When the trial court does not

issue findings of fact and conclusions of law with its special-appearance ruling, as in this case, we

infer all fact findings necessary to support the trial court’s jurisdictional determination and any legal

4 theory that is supported by the evidence. GJP, Inc. v. Ghosh, 251 S.W.3d 854, 870

(Tex. App.—Austin 2008, no pet.) (citing BMC Software, 83 S.W.3d at 795). Further, when the

appellate record includes the reporter’s and clerk’s records, as it does in this case, any implied

findings are not conclusive and may be challenged for legal and factual sufficiency. BMC Software,

83 S.W.3d at 795.

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