Moni Pulo Ltd. v. Trutec Oil and Gas, Inc.

130 S.W.3d 170, 2003 WL 22902720
CourtCourt of Appeals of Texas
DecidedMarch 11, 2004
Docket14-02-01078-CV
StatusPublished
Cited by38 cases

This text of 130 S.W.3d 170 (Moni Pulo Ltd. v. Trutec Oil and Gas, 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
Moni Pulo Ltd. v. Trutec Oil and Gas, Inc., 130 S.W.3d 170, 2003 WL 22902720 (Tex. Ct. App. 2004).

Opinion

SUBSTITUTED OPINION ON REHEARING

WANDA McKEE FOWLER, Justice.

Trutec Investment Services Company Limited (a Nigerian corporation) 1 sued Moni Pulo Limited (another Nigerian corporation) based on an agreement between the parties related to development of an oil field (at least partly Nigerian). Moni Pulo brings this interlocutory appeal from the denial of its special appearance. On reheating, we withdraw our opinion of September 9, 2003, deny the motion for rehearing, and issue this substituted opinion. Finding insufficient grounds for personal jurisdiction, we reverse and render judgment dismissing the claims against Moni Pulo.

The following facts are not contested in the parties’ briefs. All minerals in the country of Nigeria are owned by the government, which leases prospects for development to third parties, retaining a share for itself. The Nigerian government awarded an oil prospecting license and subsequently a lease (OPL-230) to Moni Pulo covering land offshore the Bakassi peninsula in 1992. Under Nigerian law, the government must approve any assignment by Moni Pulo of any interest in the lease. 2

In 1994, Moni Pulo retained Trutec to provide a $1 million “signature bonus” payable to the government and to help find a *174 “technical partner” to oversee development. Their agreement originally provided that Trutec would receive a 10 percent interest in OPL-230, 3 but a second agreement signed in London in 1996 reduced Trutec’s interest to 6 percent. Three months after the latter, Brass Exploration (a Nigerian subsidiary of Western Atlas, Inc., another defendant) agreed to act as Moni Pulo’s technical partner and received a 40 percent interest in OPL-230. The Nigerian government approved the assignment to Brass, but has not approved any assignment to Trutec.

Drilling operations in OPL-230 resulted in substantial production and revenues. In May 1998, Trutec sued Moni Pulo in Nigeria for a 10 percent interest in these revenues, claiming the agreement reducing its interest to 6 percent was the result of coercion. When the case came to trial, Trutec’s representative, Chief Wole Ariyo, left the stand during cross-examination, and the country. When he refused to return after several continuances, the trial court dismissed the suit. Trutec’s appeal is still pending.

Two other suits complicate matters. First, a suit is currently pending in the Federal High Court of Justice in Abuja, Nigeria in which Seagull Oil Ltd. alleges that it, rather than Moni Pulo, is the rightful owner of OPL-230. Second, after the trial court denied Moni Pulo’s special appearance, the International Court of Justice ruled that part of the oil field that includes OPL-230 belongs not to Nigeria but to Cameroon. Nigerian authorities have indicated they will ignore the International Court’s ruling; there is no indication what Cameroon may do.

Trutec subsequently sued Moni Pulo, Brass, JP Morgan Chase Bank, and others in Harris County, alleging breach of contract, conversion, breach of fiduciary duty, tortious interference, and conspiracy, and seeking an accounting, a constructive trust, and a declaratory judgment. Moni Pulo filed a special appearance, and tendered an affidavit by its chairman, Chief O.B. Lulu-Briggs, that it has no directors, officers, employees, registered agents, telephone numbers, or mailing addresses in Texas, advertises and conducts no business in Texas, owns or leases no property and pays no taxes in Texas, and has never sued or been sued in Texas except for the present action. The trial court denied the special appearance based expressly on a finding of general jurisdiction; from that order Moni Pulo appeals. The applicable standards have been so often and recently repeated we do not do so again here. 4

We begin by disposing briefly of Trutec’s argument that specific jurisdiction attaches to its claims. Trutec’s claims seek part of the revenues passing through bank accounts in Texas, but they do not arise from that occurrence. While those funds might satisfy Trutec’s claims, the claims themselves arise from the agreements negotiated and signed in Nigeria and London. We hold Trutec’s claims do not arise from or sufficiently relate to Texas to support specific jurisdiction. 5 Ac *175 cordingly, we turn to the trial courts finding and Trutee’s primary allegation — that Moni Pulo has sufficient contacts to support general jurisdiction.

1. Venturing with Brass

Trutec begins by pointing to Moni Pulo’s contract with Brass, its joint venturer. Brass, like Moni Pulo, is a Nigerian entity. But Trutec relies on evidence that Brass’s parent (Western Atlas) was headquartered in Houston, and that some negotiations and the eventual execution of the joint venture agreement took place there. 6

For several reasons this evidence is legally insufficient to support general jurisdiction. First, Brass was not a Texas resident, so Moni Pulo was not contracting with a Texas resident. 7 Second, the residence of Brass’s parent corporation is irrelevant absent evidence of alter ego (of which there is none here). 8 Third, it was Trutec rather than Moni Pulo that initiated contact with Brass. 9 Fourth, negotiating and signing a contract in Texas is insufficient if performance takes place elsewhere. 10

*176 It is true that membership in a joint venture between nonresidents may establish minimum contacts if the business focuses on Texas, 11 but the venture here focused on another continent. In the latter context, the acts of one venturer do not create jurisdiction (as opposed to liability) for another — that is, there are no imputed minimum contacts. 12 In its brief, Trutec repeatedly asserts that Moni Pulo “through its agent” made various contacts, but almost invariably the record reflects an employee of some other company did the deed, with no evidence of direction or control by Moni Pulo. 13

Trutec also relies on several provisions in the agreements between the two Nigerian entities. First, an agenda written well before the parties signed their venture agreement indicates they originally planned to establish an office in Houston. But the record establishes they later changed those plans. Generally, personal jurisdiction requires proof that a party purposefully availed itself of the jurisdiction, not that it planned to do so. If wishes were minimum contacts, we would be exercising jurisdiction of plans rather than jurisdiction of persons.

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Cite This Page — Counsel Stack

Bluebook (online)
130 S.W.3d 170, 2003 WL 22902720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moni-pulo-ltd-v-trutec-oil-and-gas-inc-texapp-2004.