Jack Craig Effel v. Robert G. Rosberg

Court of Appeals of Texas·Decided September 17, 2018·No. 05-17-01332-CV·Published

Opinion

AFFIRM; and Opinion Filed September 17, 2018.

In The Court of Appeals Fifth District of Texas at Dallas No. 05-17-01332-CV

JACK CRAIG EFFEL, Appellant V. ROBERT G. ROSBERG, Appellee

On Appeal from the County Court at Law No. 5 Dallas County, Texas Trial Court Cause No. CC-17-02662-E

MEMORANDUM OPINION Before Justices Myers, Evans, and Brown Opinion by Justice Brown

Pro se appellant Jack Effel appeals the trial court’s order denying his special appearance.

For the following reasons, we affirm.

BACKGROUND

In cause number CC-13-01701-D, the trial court entered a final judgment against Jack’s

aunt Lena Effel and in favor of appellee Robert G. Rosberg, awarding Rosberg $51,729 as

damages, prejudgment interest, and court costs. In this case, Rosberg alleges Jack and his brother

Henry Effel caused Lena to be moved from Texas to Nevada to be with Jack and transferred Lena’s

assets to Jack. Henry previously told Rosberg that Henry and Jack stood to inherit $7,000,000

from Lena, but no probate proceedings were opened in either Texas or Nevada following her death

on or about September 14, 2014. Rosberg asserts claims for fraudulent transfer, alleging Jack and Henry caused Lena or her estate to transfer substantially all of her assets, leaving the estate

insolvent and defrauding Rosberg, a judgment creditor.1 Rosberg also asserts a civil conspiracy

claim against Jack and Henry for conspiring with each other and with Lena and her estate to

commit fraudulent transfer.

Jack filed a special appearance, moving for dismissal on the ground that the trial court

lacked personal jurisdiction over him because Rosberg failed to plead requisite jurisdictional facts.

In an affidavit attached to his special appearance, Jack averred:

1. I currently reside in the State of Nevada with my wife and children. . . .

***

4. I personally do not conduct any business in the State of Texas, nor am I required by my employer to perform any work in the State of Texas.

5. I have not committed a tort in whole or in part in the State of Texas and deny having engaged in any tortious, fraudulent, or conspiratorial behavior or actions in Texas or elsewhere.

7. I claim no interest in my brother Henry’s house, located in Texas. It is his house and home. I have not lived there for over 20 years, when our parents were still living at the time. The House is located at 3333 High Lark Drive, Dallas, TX 75234[.] Henry maintains the property, pays all his own bills, taxes and upkeep and claims the property as his Texas homestead. He cuts the grass and takes out the trash and lives there with his wife.

8. I contend that the exercise of personal jurisdiction over my person in this case, would not comport with due process as I do not maintain the requisite minimum contacts with the State of Texas to the extent called for under the law for jurisdiction to be sustained in this matter.

9. I further contend that traditional notions of fair play and substantial justice would be offended by the exercise of either general or specific jurisdiction in this matter, as the undue burden that such exercise would create would outweigh the other interests to be considered by the Court.

1 See TEX. BUS. & COM. CODE ANN. §§ 24.005, 24.006 (West 2015).

–2– Thereafter, Rosberg amended his petition, adding as jurisdictional facts that (1) Jack owns

a fifty-percent interest in a single family residence at 3333 High Lark Drive in Dallas, Texas and

claims all the benefits of a homestead exemption on the property under Texas law, and (2) the

alleged conspiracy between Jack and Henry to transfer Lena’s assets out of state and into their own

pockets constitutes both a contract with a Texas resident that was performed in part by Jack in

Texas and a tort that occurred in part in Texas.

Jack appeared telephonically at a hearing on his special appearance. He did not introduce

any additional evidence, but argued he had no business dealings in Texas, he had given his interest

in the High Lark property to Henry many years ago and did not pay taxes or have any involvement

in decision-making related to the property, and the High Lark property was not related to the

subject matter of this case. At the hearing, Rosberg argued there was general jurisdiction, based

on Jack’s owning and claiming a homestead exemption on the High Lark property, and specific

jurisdiction based on the conspiracy claim arising from a contract between Jack and Henry to

fraudulently transfer funds belonging to a judgment creditor and the transfer of Lena’s assets and

her person from Texas to Las Vegas, a tort committed in part in Texas. Rosberg introduced, and

the trial court admitted, into evidence (1) a printout from the Dallas Central Appraisal District

website showing Jack as fifty-percent owner of the High Lark property and having received the

benefit of a homestead exemption on the property, and (2) Jack’s mother’s last will and testament

bequeathing her estate to Jack and Henry and an order admitting the will to probate as a muniment

of title.2

2 Rosberg also offered into evidence deemed admissions because Jack had refused to answer requests for admission, but neither the reporter’s record nor clerk’s record contain a copy of the requests for admission.

–3– The trial court subsequently entered an order denying Jack’s special appearance. Jack filed

a request for findings of fact and conclusions of law, but the trial court did not issue findings and

conclusions.

APPLICABLE LAW

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); Moncrief Oil Int’l Inc. v. OAO Gazprom, 414 S.W.3d 142, 150 (Tex. 2013). If, as in

this case, the trial court does not issue findings of fact and conclusions of law, we imply all relevant

facts that are necessary to support its ruling and supported by evidence. Old Republic, 549 S.W.3d

at 558.

Texas courts may exercise personal jurisdiction over a nonresident if “(1) the Texas long-

arm statute authorizes the exercise of jurisdiction, and (2) the exercise of jurisdiction is consistent

with federal and state constitutional due-process guarantees.” Id. (quoting Moncrief Oil, 414

S.W.3d at 149). The long-arm statute authorizes the exercise of personal jurisdiction over a

nonresident defendant who “does business” in Texas. See PHC-Minden, L.P. v. Kimberly-Clark

Corp., 235 S.W.3d 163, 166 (Tex. 2007). Relevant to this case, a

nonresident defendant “does business” in Texas if he “contracts by mail or otherwise with a Texas

resident and either party is to perform the contract in whole or in part in this state” or “commits a

tort in whole or in part in this state.” See TEX. CIV. PRAC. & REM. CODE ANN. § 17.042(1), (2)

(West 2015). The exercise of personal jurisdiction “comports with federal due process if the

nonresident defendant has ‘minimum contacts’ with Texas and the exercise of jurisdiction ‘does

not offend traditional notions of fair play and substantial justice.’” See M&F Worldwide Corp. v.

Pepsi-Cola Metro.

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