Mabon Ltd. v. Afri-Carib Enterprises, Inc.

29 S.W.3d 291, 2000 Tex. App. LEXIS 6228, 2000 WL 1289395
CourtCourt of Appeals of Texas
DecidedSeptember 14, 2000
Docket14-99-00228-CV
StatusPublished
Cited by53 cases

This text of 29 S.W.3d 291 (Mabon Ltd. v. Afri-Carib Enterprises, Inc.) 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
Mabon Ltd. v. Afri-Carib Enterprises, Inc., 29 S.W.3d 291, 2000 Tex. App. LEXIS 6228, 2000 WL 1289395 (Tex. Ct. App. 2000).

Opinion

OPINION

KEM THOMPSON FROST, Justice.

In this restricted appeal, appellant, Ma-bon Limited challenges the default judgment entered in favor of Afri-Carib Enterprises, Inc. on a breach of contract claim. Mabon asserts the trial court erred in entering the default judgment because (1) the contract contained an enforceable forum selection clause and an arbitration clause, (2) the contract was not binding or enforceable, and (3) the evidence is legally and factually insufficient to support the award of damages and the award of attorney’s fees. We affirm the judgment of the trial court, as modified.

I. Factual and Procedural Background

Afri-Carib is a Texas corporation in the business of consulting with and assisting American companies involved in the oil and gas exploration industry in Africa. Mabon is an engineering and geophysical consulting firm formed under the laws of the Federal Republic of Nigeria.

In May 1989, and June 1990, Afri-Carib entered into a contract with TGS International Geophysical Company (“TGSI”), an independent consulting company involved in putting together geophysical data packages for multiple sales to the oil industry. Under this contract, TGSI was to assist Afri-Carib in securing required governmental permits and approvals to conduct an offshore geophysical survey of West African countries. In July 1990, Afri-Car-ib entered into a “Non-Circumvention, Non-Disclosure Agreement” (the “Agreement”) with Mabon and Allan Quinn Isigu-zo, a Nigerian individual. As part of the Agreement, Afri-Carib, Mabon, and Isigu-zo entered into a joint venture in which they were to share information regarding contacts in furtherance of their venture and to award commissions and finder’s fees to certain individuals from each enterprise entered into with other parties.

Subsequently, the president of Afri-Car-ib introduced Mabon to TGSI. The day after the parties entered into the Agreement, TGSI retained Mabon to represent it in an offshore geophysical survey of Nigeria. A few weeks later, Mabon and TGSI signed a letter of intent in which Mabon agreed to assist TGSI in securing all necessary government permits and approvals for TGSI. In a letter dated January 31, 1991, Mabon’s president informed Afri-Carib’s president that Mabon was terminating its relationship with Afri-Car-ib. The same day, Mabon and TGSI entered into a joint venture for the acquisition of seismic data for offshore Nigeria.

In July 1996, Afri-Carib, claiming Ma-bon had breached the Agreement, made a demand on Mabon in Nigeria for payment of commissions in the amount of $1,023,018.11 arising from Mabon’s contract with TGSI. A few weeks later, Mabon replied that unless Afri-Carib’s demand was withdrawn or supported with documentation, its attempt to “extort” money from Mabon would be reported to Nigerian law enforcement agencies.

In September 1996, Afri-Carib filed suit against Mabon in the 165th District Court of Harris County for breach of the Agreement for failing to pay Afri-Carib one-third of all commissions and payments Ma-bon received from TGSI. Mabon responded to the suit by filing “Defendant’s Special Appearance and Original Answer.” Approximately two years later, Mabon failed to appear for the bench trial. The trial court entered a default judgment against Mabon in the amount of $1,098,520.40 on Afri-Carib’s breach of contract claim and also awarded Afri-Car-ib $300,000 in attorney’s fees.

*296 II. Standard of Review on Restricted Appeal

Mabon directly attacks the trial court’s judgment by restricted appeal. See Tex. R. App. P. 30. 1 A direct attack on a judgment by restricted appeal must: (1) be brought within six months after the date of the judgment; (2) by a party to the suit; (3) who did not participate in the trial; and (4) error must be apparent from the face of the record. See Quaestor Invs., Inc. v. State of Chiapas, 997 S.W.2d 226, 227 (Tex.1999) (per curiam); Norman Communications v. Texas Eastman Co., 955 S.W.2d 269, 270 (Tex.1997) (per cu-riam). Review by restricted appeal affords the appellant a review of the entire case, just as in an ordinary appeal, with the only restriction being that any error must appear on the face of the record. See Norman Communications, 955 S.W.2d at 270. The face of the record for purposes of a restricted appeal consists of all the papers on file in the appeal, including the reporter’s record. See id. A review of the entire case includes a review of legal and factual sufficiency claims. See id.

A post-answer default judgment constitutes neither an abandonment of the defendant’s answer nor an implied confession of any issues thus joined by the defendant’s answer. See Stoner v. Thompson, 578 S.W.2d 679, 682 (Tex.1979). Judgment cannot be entered on the pleadings; instead, the plaintiff must offer evidence and prove his case as in judgment upon a trial. See id. Because Mabon filed an answer in this case, Afri-Carib had the burden to prove its claim and the resulting damages at trial.

III. Analysis

A. Forum Selection Clause

In its first issue, Mabon asserts the trial court erred in entering the default judgment because the Agreement contains a forum selection clause providing that venue of this case lies in the Federal District of Nigeria. Mabon, relying on the presumption that forum selection clauses in international contracts are enforceable absent a showing that the enforcement of the clause is “unreasonable under the circumstances,” 2 asserts that Afri-Carib has not overcome the presumption that the forum selection clause in the Agreement is valid or demonstrated that it would be unreasonable under the circumstances to enforce it. 3 Before we reach the issue of reasonableness in enforcing the forum selection clause, we must first determine whether the forum selection clause at issue meets the threshold requirement of exclusivity by providing the courts of Nigeria with exclusive jurisdiction of all claims under the Agreement.

1. Exclusivity

Texas law recognizes the validity of forum selection clauses. See Accelerated Christian Educ., Inc. v. Oracle Corp., 925 S.W.2d 66, 70 (Tex.App.-Dallas 1966, no writ). Forum selection clauses are enforceable in Texas if: (1) the parties have contractually consented to submit to the exclusive jurisdiction of another state, and (2) the other state recognizes the validity of such provisions. See Southwest Intelecom, Inc. v. Hotel Networks Corp., 997 *297 S.W.2d 322, 324 (Tex.App.-Austin 1999, pet. denied). Thus, our initial inquiry is whether the parties in this case agreed that Nigeria would have exclusive jurisdiction over any of the claims asserted in this case. The forum selection clause in the Agreement states:

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Cite This Page — Counsel Stack

Bluebook (online)
29 S.W.3d 291, 2000 Tex. App. LEXIS 6228, 2000 WL 1289395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mabon-ltd-v-afri-carib-enterprises-inc-texapp-2000.