Mosammat Lalila and Sajeda v. Parker Drilling Company and Niko Resources, Ltd.

CourtCourt of Appeals of Texas
DecidedSeptember 27, 2007
Docket01-06-00844-CV
StatusPublished

This text of Mosammat Lalila and Sajeda v. Parker Drilling Company and Niko Resources, Ltd. (Mosammat Lalila and Sajeda v. Parker Drilling Company and Niko Resources, Ltd.) 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
Mosammat Lalila and Sajeda v. Parker Drilling Company and Niko Resources, Ltd., (Tex. Ct. App. 2007).

Opinion

Opinion issued September 27, 2007





In The

Court of Appeals

For The

First District of Texas



NO. 01-06-00844-CV



MOSAMMAT LALILA AND SAJEDA, ET AL., (1) Appellants



V.



NIKO RESOURCES, LTD., and NIKO RESOURCES (BANGLADESH), LTD., Appellees



On Appeal from the 152nd District Court

Harris County, Texas

Trial Court Cause No. 2005-54021-A



MEMORANDUM OPINION

Appellants, Mosammat Lalila and Sajeda and approximately 765 other people who reside in or around Tangratila, Bangladesh (collectively, "the Bangladesh Residents"), appeal the trial court's orders granting the special appearances filed by appellees, Niko Resources, Ltd. ("Niko Resources") and Niko Resources (Bangladesh), Ltd. ("Niko Bangladesh") (collectively, "the Niko Entities"). (2) The Bangladesh Residents specifically deny that they seek to assert general jurisdiction over the Niko Entities. In their sole issue on appeal, the Bangladesh Residents assert that the trial court erred by granting the special appearances, stating,

(1) The Niko Entities Waived Their Special Appearance[;]



(2) The Niko Entities Maintained Purposeful, Continuous and Systematic Contacts With Texas[;]

(3) The Niko Entities Were "Doing Business" in Texas[;]



(4) Maintaining Jurisdiction Over the Niko Entities Will Not Offend Traditional Notions of Fair Play or Substantial Justice[; and]



(5) Niko Resources and Niko Bangladesh Were Operated as a Single Business Entity With Respect to the Tangratila Project[.]



We conclude that the Niko Entities' attempts to secure releases from the Bangladesh Residents is not conduct that constitutes a general appearance. We also conclude that the trial court did not err by granting the special appearances because neither Niko Resources nor Niko Bangladesh established the requisite minimum contacts with Texas to support the exercise of personal jurisdiction. We therefore need not reach the issue of whether the exercise of personal jurisdiction over Niko Resources or Niko Bangladesh would offend traditional notions of fair play and substantial justice. We further conclude that the Bangladesh Residents waived appellate review of their contention that Niko Resources and Niko Bangladesh were operated as a single business entity. We affirm the orders of the trial court.

Background

Niko Bangladesh is a Barbados corporation that is an indirectly wholly-owned subsidiary of Niko Resources, a Canadian corporation. In 2003, the government of the Peoples Republic of Bangladesh granted Niko Resources permission to conduct operations in the Tangratila gas field. Niko Bangladesh entered a contract with China Petroleum Technology and Development Corporation ("China Petroleum"), a Chinese corporation with an office in Houston, Texas, to drill an exploration well in the Tangratila field. On January 7, 2005, the exploration well exploded, injuring the Bangladesh Residents.

Niko Bangladesh entered into a contract with GSM Consulting Petroleum Engineers ("GSM"), a Texas company, to design a relief well. Niko Bangladesh also contracted with Parker Drilling Company International, Ltd. ("Parker International"), a Nevada company, with its principal office in Houston, to drill the relief well. GSM was to supervise and oversee the relief well project. On June 23, 2005, the relief well caught fire and exploded, causing further injuries.

On August 19, 2005, the Bangladesh Residents filed suit in district court in Harris County against Niko Resources and Parker Drilling Company ("Parker Drilling"), a Texas corporation and the parent of Parker International, asserting claims for negligence, nuisance, trespass, and conversion. After conducting some discovery, the Bangladesh Residents filed an amended petition adding Niko Bangladesh, GSM, China Petroleum, Parker International, and Qasim Sharif (3) as additional defendants.

In their live pleading before the trial court, the Bangladesh Residents alleged that Niko Resources "formulated a joint enterprise with co-defendants named herein and participated, designed, planned and formulated a tort that occurred in Harris County, Texas, which, as a result, occasioned significant and extensive harm to the Plaintiffs." The Bangladesh Residents further alleged that the Niko Entities,

retained [China Petroleum], Parker Drilling Company and/or Parker Drilling Company International Ltd. in Texas, GSM Consulting, Inc. in Texas and other entities for consulting and to design and prepare an original well and a 'relief well' at the Tangratila gas well project. The design, plan, and preparation of the Tangratila project took place in the State of Texas through several Texas entities, including, but not limited to, Parker Drilling Company and/or Parker Drilling Company International Ltd., GSM Consulting, Inc., [China Petroleum's] Houston, Texas, office, and several other Texas individuals and entities.



Within the "Factual Background" section of the petition, the Bangladesh Residents alleged that "Niko [Resources], along with its agent and alter ego Niko Bangladesh, and its agents Qasim Sharif and [China Petroleum] negligently and with malice improperly drilled, designed, installed, managed, supervised, operated and maintained the original well such that it resulted in an initial blowout on or about January 7, 2005." Further, the Bangladesh Residents alleged that "[t]he Defendants also negligently designed a drilling plan for the relief well in Harris County, Texas." The Niko Entities filed special appearances asserting that the trial court lacked personal jurisdiction over them. Niko Resources filed a special appearance and a supplemental special appearance. It also filed a brief and supplemental brief in support of its special appearance, both with exhibits attached. In its special appearance, Niko Resources contended that its "limited contacts with the state of Texas are insufficient to justify the assertion of personal jurisdiction over [it]" and that "the assertion of personal jurisdiction over [it] would offend traditional notions of fair play and substantial justice." Specifically, Niko Resources contended that the Bangladesh Residents' "causes of action do not arise out of any activities by Niko Resources conducted within or purposefully directed toward the state of Texas" because (1) it was not involved in any way with the contracts regarding the designing, installing, drilling, managing or operating of the original or relief wells in the Tangratila fields and (2) the other alleged tort--"failure to take appropriate steps to remediate and limit the impact of the explosions"--occurred, if at all, outside of Texas.

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