Moore v. Pulmosan Safety Equipment Corp.

278 S.W.3d 27, 2008 Tex. App. LEXIS 9145, 2008 WL 5132050
CourtCourt of Appeals of Texas
DecidedDecember 9, 2008
Docket14-07-00885-CV
StatusPublished
Cited by10 cases

This text of 278 S.W.3d 27 (Moore v. Pulmosan Safety Equipment 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
Moore v. Pulmosan Safety Equipment Corp., 278 S.W.3d 27, 2008 Tex. App. LEXIS 9145, 2008 WL 5132050 (Tex. Ct. App. 2008).

Opinion

OPINION

ADELE HEDGES, Chief Justice.

This appeal addresses the trial court’s jurisdictional ruling on a special appearance filed by appellee, Pulmosan Safety Equipment Corporation (“Pulmosan”), in multi-district silica litigation. Appellant, John S. Moore (“Moore”), appeals the trial court’s order granting Pulmosan’s special appearance. The trial court found that it could exercise neither general nor specific jurisdiction over Pulmosan. Abandoning his general jurisdiction complaint, Moore argues that Pulmosan waived its special appearance and that the exercise of specific jurisdiction is proper. We affirm the trial court’s ruling.

I. BACKGROUND

Moore is an Alabama resident who worked as a sandblaster all over the United States. From 1968 to 1970, he worked as a sandblaster at the Uniroyal plant in Baton Rouge, Louisiana while employed by a Texas company. Moore alleges that he contracted silicosis and massive fibrosis from his sandblasting duties in Louisiana.

Pulmosan was a New York corporation operating from 1926 until its voluntary dissolution under the New York dissolution statute in 1986. It manufactured personal protective equipment for use in the abrasive-blasting industry. Moore alleges that he used the Pulmosan H-30 series sandblast hood from 1968 to 1970 while working in Baton Rouge. The H-30 hood protected the user’s face, head, and shoulders from the ricochet of sandblasting. It was a non-airfed canvas hood, tannish brown in color, that draped over the user’s head and shoulders. The number of H-30 hoods *31 manufactured per year during the relevant time frame of the 1960’s through 1975 is disputed. There is both evidence that production was in the “tens of thousands” and evidence that it was only one to two thousand per year. It is undisputed, however, that the hoods were manufactured by Pul-mosan in New York.

The method of sale and distribution of the H-30 hood in Texas.

Pulmosan did not sell directly to end-users such as Moore, or even to his employers. Instead, Pulmosan sold its products through distributors and what it called “original equipment manufacturers” (“OEMs”). Pulmosan described the distributors as “simply Pulmosan’s wholesale customers — the ‘accounts [Pulmosan was] selling to.’ ” OEMs were companies that ultimately sold the equipment to employers and end-users, either under the Pulmo-san label or under a private label. Pulmo-san’s corporate representative, Howard Weiss, characterized the distributors and OEMs as independent third-parties who were not controlled or employed by Pul-mosan.

Pulmosan had several Texas distributors and OEMs selling its equipment in Texas during the time period Moore claimed to have used the H-30 hoods. 1 One of the OEMs was a Houston-based company called Clemtex. Clemtex began selling H-30 hoods in Texas in 1955 and continued selling them until 1982. A Clemtex representative testified that Clemtex purchased hoods and 99.9 percent of them were purchased directly from Pulmosan. Initially, the Pulmosan hoods Clemtex sold had a Pulmosan label, but eventually Clemtex furnished Pulmosan with Clemtex labels to be affixed to the hoods. Weiss referred to this practice as “private-labeling.” There is evidence that Clemtex sold safety equipment to Moore’s employer during the relevant time period and that the employer provided a Pulmosan H-30 hood to Moore.

Beginning in the late 1960’s or early 1970’s, Pulmosan placed an employee in the Dallas-Fort Worth area. The employee’s job was to call on distributors and sell Pulmosan’s products. The employee’s territory encompassed three or four states, including Texas, Oklahoma, Louisiana, and possibly Arkansas. This employee later became a “manufacturer’s representative,” rather than a direct employee of Pulmo-san, and Pulmosan continued to have a manufacturer’s representative in Texas for the last fifteen or twenty years of its existence. The manufacturer’s representatives sold Pulmosan’s products on commission. During this time, Pulmosan had a Certificate of Authority on file with the State of Texas for the purpose of transacting business in the state.

Pulmosan also advertised its products throughout the United States in catalogs. Pulmosan normally sent the catalogs to anyone who was purchasing from them, “whether distributors, dealers, or OEM accounts.” The 1964 catalog identified five warehouses across the United States for Pulmosan products, including one in Houston, Texas. The warehouse was owned and operated by a Pulmosan manufacturer’s representative. Instructions for product use were included in the product boxes and in the catalogs that Pulmosan sent to whoever bought equipment from Pulmo-san. Pulmosan relied on the employers to make sure that the employee was properly instructed and the equipment properly maintained.

*32 Moore’s lawsuit wild, Pulmosan’s jurisdictional challenges.

Moore brought suit against numerous manufacturers and suppliers of sand and abrasive blasting equipment and protective gear, asserting claims for negligence, products liability (defective manufacture and design), conspiracy, and fraud. Moore’s suit was transferred to the silica multi-district litigation pending in Judge Tracy Christopher’s court.

Pulmosan filed a special appearance and a plea to the jurisdiction. Before it heard Pulmosan’s special appearance, the trial court abated the proceedings so that certain plaintiffs in the litigation could proceed in New York state court to obtain a ruling on the viability of their claims in light of Pulmosan’s dissolution. The New York court ruled that the dissolution of Pulmosan was not effective as to those plaintiffs whose causes of action arose pri- or to the date of dissolution, specifying its effectiveness would “depend upon when these plaintiffs were fust exposed to silica dust or, more accurately, upon the initial use of Pulmosan’s defective safety equipment.”

Thereafter, the trial court in Texas granted Pulmosan’s special appearance with regard to general jurisdiction. Under PHC-Miuden, L.P. v. Kimberly-Clark Corp., a trial court must assess contacts over a reasonable number of years, up to the date of filing the lawsuit. 235 S.W.3d 163, 169 (Tex.2007). Pulmosan had not done business, in Texas or elsewhere, since its dissolution in 1986. The court thus held that general jurisdiction did not exist. Moore has not appealed the trial court’s ruling on general jurisdiction.

The trial court also granted Pulmosan’s special appearance for want of personal jurisdiction on the basis of specific jurisdiction. The court held that it could not exercise specific jurisdiction over Pulmo-san consistent with the requirement of the claims arising out of or relating to the defendant’s activity conducted within Texas. M oki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007).

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278 S.W.3d 27, 2008 Tex. App. LEXIS 9145, 2008 WL 5132050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-pulmosan-safety-equipment-corp-texapp-2008.