Michel v. Rocket Engineering Corp.

45 S.W.3d 658, 2001 Tex. App. LEXIS 1038, 2001 WL 125926
CourtCourt of Appeals of Texas
DecidedFebruary 15, 2001
Docket2-00-112-CV
StatusPublished
Cited by109 cases

This text of 45 S.W.3d 658 (Michel v. Rocket Engineering Corp.) 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
Michel v. Rocket Engineering Corp., 45 S.W.3d 658, 2001 Tex. App. LEXIS 1038, 2001 WL 125926 (Tex. Ct. App. 2001).

Opinion

OPINION

GARDNER, Justice.

I. INTRODUCTION

The question presented is whether a Texas court may exercise personal jurisdiction over non-resident defendants consistent with due process, where the claims asserted are for wrongful death of a California resident resulting from a crash of an aircraft in California that was allegedly caused by defective modification of the aircraft in Washington. Appellants, the surviving widow and minor children of Don Michel (“Decedent”), are also residents of California. Appellants filed suit in Denton County, Texas, naming four defendants.

This appeal is from an order sustaining special appearances of two of the defendants, Appellees Rocket Engineering Corporation (“Rocket”) and STC/Mooney Limited (“STC”), both Washington corporations. In one issue, Appellants complain that the order sustaining the special appearances is not supported by factually sufficient evidence. We overrule Appellants’ issue and affirm.

II. JURISDICTIONAL FACTS

Decedent purchased a Mooney M20K aircraft from a business associate in California in 1997. The aircraft had been manufactured in 1979 by Mooney Aircraft Corporation (“Mooney”). Shortly after purchasing the Mooney aircraft, Decedent contracted with Rocket to have it converted to a “805 Rocket.” Rocket was formed in 1990 as a Washington corporation with its principal place of business in Spokane, Washington. Rocket’s business is primarily the conversion of Mooney aircraft by installation of Continental Teledyne TSIO-520-NB engines onto Mooney M20K airframes. Teledyne engines, manufactured by Teledyne Continental Motors (“Tele- *666 dyne”), are more powerful than the original engines installed by Mooney.

Teledyne, also a defendant in this case, has its principal place of business in Alabama. Teledyne is a division of Teledyne, Inc., a California corporation with its principal place of business in Los Angeles, California. Mooney is a Texas Corporation with its principal place of business in Kerrville, Texas.

Rocket’s president is Darwin Conrad. Conrad had been an electrical contractor, a corporate pilot, and a designated engineering representative, and had worked at several companies engaged in modifying aircraft in the Washington area before forming Rocket as his own business. Conrad had flown Mooney aircraft and aircraft with the Teledyne 520NB engines and developed the idea that combining the two would produce a superior aircraft.

Rocket applied for a “supplemental type certificate” from the PAA in 1991 for its proposed modification of Mooney aircraft by installation of Teledyne 520NB engines. The certificate was issued to Rocket in 1992, authorizing the modification. In May 1994, ownership of the certificate was transferred to STC, a company formed by other individuals to fund the certification process. Rocket obtained a license to use the certificate from STC and began assembling conversions. In 1995, the FAA issued Rocket a second supplemental type certificate authorizing the increased weight of the aircraft that resulted from the installation of a Teledyne engine. An aircraft modified or converted by Rocket pursuant to the two certificates is known as a “305 Rocket.”

The contract between Decedent and Rocket for the conversion of Decedent’s aircraft to a 305 Rocket was entered into in 1997 in Spokane, Washington, and Rocket also performed the conversion process there. When the conversion was completed, the aircraft was delivered to Decedent in Idaho. On May 5, 1998, following conversion of his Mooney aircraft to a 305 Rocket, Decedent’s plane crashed in California while on a flight to Santa Monica, California, from Sacramento.

Rocket has never maintained a registered agent in Texas, has not paid taxes in Texas, nor has it qualified to do business in Texas. Rocket has never maintained an office, warehouse, address, telephone listing, answering service, or other business location in Texas. Rocket has never had any subsidiaries, divisions, or employees in Texas; has no property or bank accounts in Texas; and has never conducted a corporate meeting in Texas.

STC is likewise a Washington corporation with its principal place of business in Spokane, Washington. STC has never maintained a registered agent in Texas, conducted any business in Texas, or qualified to do business in Texas. STC has not had any subsidiaries, divisions, employees, or other business in this state. STC had no contacts with Decedent or Appellants. STC does not sell anything; it merely holds the supplemental type certificates used by Rocket to authorize it to make the conversions of Mooney airframes to 305 Rockets.

Appellants filed suit in Denton County, Texas in April of 1999, naming Mooney, Teledyne, Rocket, and STC as defendants. Appellants alleged that the defendants negligently designed, manufactured, tested, and marketed the aircraft and also alleged strict tort liability. Rocket and STC filed special appearances challenging personal jurisdiction in Texas. Appellants asserted both specific and general jurisdiction over Rocket and STC.

After substantial pretrial discovery by the parties limited to the jurisdictional issues, the trial court conducted a hearing *667 and sustained the special appearances, signing an order dismissing Appellants’ claims as to Rocket and STC with prejudice to refiling in Texas. 1 No findings of fact and conclusions of law were filed by the trial court. 2

III. STANDARD OF REVIEW

On appeal from an order sustaining a special appearance, we review all evidence in the record to determine whether the non-resident defendant has carried its burden of negating all possible grounds of jurisdiction. Kawasaki Steel Corp. v. Middleton, 699 S.W.2d 199, 203 (Tex.1985); James v. Illinois Cent. R.R. Co., 965 S.W.2d 594, 596 (Tex.App. — Houston [1st Dist.] 1998, no pet.); Fish v. Tandy Corp., 948 S.W.2d 886, 891 (TexApp. — Fort Worth 1997, writ denied). Existence of personal jurisdiction is a question of law, but that determination may be dependent upon resolution of underlying factual disputes. James, 965 S.W.2d at 596; Conner v. ContiCarriers & Terminals, Inc., 944 S.W.2d 405, 411 (Tex.App. — Houston [14th Dist.] 1997, no writ).

We will affirm if we can uphold the trial court’s order on any legal theory finding support in the evidence. Happy Indus. Corp. v. American Specialties, Inc., 983 S.W.2d 844, 847 (Tex.App. — Corpus Christi 1998, pet. dism’d w.o.j.); see also Cartlidge v. Hernandez, 9 S.W.3d 341, 345 (Tex.App. — Houston [14th Dist.] 1999, no pet.); In re Estate of Judd, 8 S.W.3d 436, 440 (Tex.App. — El Paso 1999, no pet.); Fish, 948 S.W.2d at 892.

We review all questions of law de novo. Hotel Partners v. Craig, 993 S.W.2d 116, 120 (Tex.App. — Dallas 1994, writ denied).

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Bluebook (online)
45 S.W.3d 658, 2001 Tex. App. LEXIS 1038, 2001 WL 125926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michel-v-rocket-engineering-corp-texapp-2001.