Ken Hoagland v. Bill Butcher, Kari Butcher, Butcher & Butcher, and OCTV Partners, LLC

396 S.W.3d 182, 2013 WL 363119, 2013 Tex. App. LEXIS 714
Court of Appeals of Texas·Decided January 24, 2013·No. 14-11-01074-CV·Published·Cited by 17 cases

Opinions

PLURALITY OPINION

MARTHA HILL JAMISON, Justice.

In two issues, appellant Ken Hoagland challenges the trial court’s order granting appellees’ special appearance and dismissing the underlying case. We hold Hoag-land pleaded jurisdictional facts that appel-lees committed tortious acts in Texas and appellees did not present evidence negating every basis for jurisdiction. We thus reverse the trial court’s order and remand this case for further proceedings consistent with this opinion.

Background

Hoagland is the chairman of a political effort called the FairTax Campaign. The purpose of the FairTax Campaign is to persuade the United States Congress to pass a bill replacing the current federal income and payroll tax structures with a consumption tax. Appellees Bill and Kari Butcher, both residents of California, are the general partners of appellee Butcher & Butcher, a general partnership with its principal place of business in California.

On July 7, 2009, Bill and Kari traveled to Houston, Texas and made a presentation on behalf of Butcher & Butcher to a non-profit organization called Americans for Fair Taxation (AFFT) during its board meeting in hopes of being hired by AFFT to promote the FairTax Campaign. Hoag-land was present at the meeting. AFFT thereafter hired Butcher & Butcher.

Appellee OCTV Partners, LLC, a California limited liability company, subsequently was formed to produce “political direct response television commercials” promoting the FairTax Campaign and soliciting funds for AFFT. Hoagland was one of three initial managers of OCTV, and Bill was one of five members. Hoagland, in his capacity as a manager of OCTV, along with the other managers and members of OCTV (including Bill), entered into an Operating Agreement.1 Pursuant to the Operating Agreement, Hoagland was entitled to yearly distributions of “Available Cash.”2

[188] On January 6, 2010, OCTV entered into an agreement with AFFT. Pursuant to the OCTV-AFFT Agreement, OCTV agreed to produce infomercials soliciting contributions for the FairTax Campaign. The first infomercial would be financed by OCTV. Contributions would be sent to an escrow account in Houston, Texas. Escrow funds would be used to compensate OCTV for its services and to finance the infomercials. Hoagland wrote, helped develop and promote, and appeared in a 30-minute infomercial. Hoagland alleges that, after OCTV produced the infomercial, Bill convinced Hoagland to take a $3,000 monthly flat fee in lieu of receiving distributions of Available Cash under the Operating Agreement because the infomercial campaign might not be successful.

On May 19, 2010, Bill and Kari delivered a report at another AFFT board meeting in Hoagland’s presence detailing the success of OCTVs infomercial.3 At its July 29, 2010 board meeting, AFFT “had a discussion on the possible violations of the fundraising agreement by Butcher & Butcher.” After the discussion, Bill and Kari joined the meeting to explain their “financial performance and contract violation issues.” After Bill and Kari’s presentation, the board determined that Bill and Kari, on behalf of Butcher & Butcher, breached the OCTV-AFFT Agreement by “engineering] additional extra compensation.” The board decided to terminate the OCTV-AF FT Agreement. Hoagland asserts appellees were fired by AF FT for “inappropriately draining ... monies, revenues, and other dollars generated by the infomercial ... for their own personal gain.”4 He also alleges he was not paid in accordance with the Operating Agreement or paid consulting fees that appellees owed him.

Hoagland sued appellees on September 13, 2010, asserting claims for breach of contract, quantum meruit, fraudulent inducement, and fraud, and seeking injunc-tive relief to prevent appellees “from wrongfully appropriating and using [Hoag-land’s] likeness, name, and proprietary data in connection with a series of infomercials and other social messaging medium [sic] such as You Tube [sic] and Twitter in connection with ... the ‘FairTax Campaign.’ ” Hoagland alleged the following jurisdictional facts:

Each of the Defendants made written and oral misrepresentations of material fact to the Plaintiff (while Plaintiff was physically located in Harris County, Texas) via email and telephone conversations and in-person meetings during calendar years 2009 and 2010, with the intention that Plaintiff would rely upon such misrepresentations and take action or refrain from taking certain actions within Harris County, Texas. Furthermore, Defendants Bill Butcher and Kari Butcher made trips to Houston, Texas, as part of their effort to mislead Plaintiff, and attended meetings with Plaintiff during which fraudulent misrepresentations were made by each of the Defendants to the Plaintiff. Moreover, Defendants have sent money to Plaintiff in accordance with an enforceable oral agreement during calendar years 2009 [189] and 2010 for services performed by Plaintiff, but eventually Defendants breached their oral agreement with Plaintiff by wrongfully refusing to continue paying money to Plaintiff for services rendered in the past and to be rendered in the future. Recently, in 2010, Defendants wrongfully appropriated the name, likeness and proprietary data belonging to the Plaintiff and refuse to stop the unauthorized use of same. The wrongful appropriation includes the public display and use of data within the State of Texas on You Tube [sic] and other public social messaging sites such as Twitter.

The trial court granted a temporary restraining order restraining appellees from “using or displaying or referencing Plaintiffs name, image, likeness, voice, photos, videos, scripts, data, or any other type of image or likeness of property of Plaintiff, on You Tube [sic], Twitter, or any other form of social networking medium.”

Appellees filed a special appearance alleging that OCTV had no contacts with Texas and Bill’s, Kari’s, and Butcher & Butcher’s contacts with Texas were not related to the business transactions at issue in the lawsuit. The trial court granted the special appearance and dismissed the underlying case for want of jurisdiction. The trial court did not issue findings of fact or conclusions of law. Hoagland filed a motion for new trial, which the trial court denied.

Discussion

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Ken Hoagland v. Bill Butcher, Kari Butcher, Butcher & Butcher, and OCTV Partners, LLC, 396 S.W.3d 182, 2013 WL 363119, 2013 Tex. App. LEXIS 714 (Tex. Ct. App. 2013).

396 S.W.3d 182 (Ken Hoagland v. Bill Butcher, Kari Butcher, Butcher & Butcher, and OCTV Partners, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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