OBLIO TELECOM, INC. v. Patel

711 F. Supp. 2d 668, 2008 U.S. Dist. LEXIS 94138, 2008 WL 4936488
CourtDistrict Court, N.D. Texas
DecidedNovember 18, 2008
Docket3:08-mj-00279
StatusPublished
Cited by3 cases

This text of 711 F. Supp. 2d 668 (OBLIO TELECOM, INC. v. Patel) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
OBLIO TELECOM, INC. v. Patel, 711 F. Supp. 2d 668, 2008 U.S. Dist. LEXIS 94138, 2008 WL 4936488 (N.D. Tex. 2008).

Opinion

MEMORANDUM OPINION AND ORDER

SAM A. LINDSAY, District Judge.

Before the court are: (1) Defendant Asia Telecom’s Motion and Notice of Motion to Dismiss for Lack of Personal Jurisdiction, filed March 24, 2008; (2) Motion to Dismiss for Lack of Personal Jurisdiction and for Failure to State a Claim Upon Which Relief May Be Granted by Defendants Hawaii Global Exchange, Inc. and Transpac Telecom, Inc., filed March 26, 2008; (3) Defendant Zuber Patel’s Motion to Dismiss, filed April 1, 2008; and (4) Defendant Touch Tell, Inc.’s Rule 12(b)(6) Motion to Dismiss Plaintiffs Original Complaint for Failure to State a Claim Upon Which Relief Can Be Granted, filed April 8, 2008. After carefully considering the motions, briefs, record, and applicable law, the court denies Defendant Asia Telecom’s Motion and Notice of Motion to Dismiss for Lack of Personal Jurisdiction; denies without prejudice Motion to Dismiss for Lack of Personal Jurisdiction and for Failure to State a Claim Upon Which Relief May Be Granted by Defendants Hawaii Global Exchange, Inc. and Transpac Telecom, Inc.; denies without prejudice Defendant Zuber Patel’s Motion to Dismiss; and denies without prejudice Defendant Touch Tell, Inc.’s Rule 12(b)(6) Motion to Dismiss Plaintiffs Original Complaint for Failure to State a Claim Upon Which Relief Can Be Granted.

I. Factual and Procedural Background

Plaintiff Oblio Telecom, Inc. (“Plaintiff’ or “Oblio”) filed its Original Complaint on February 15, 2008, against Defendants Zuber Patel (“Patel”), Touch Tell, Inc. (“Touch Tell”), Hawaii Global Exchange, Inc. d/b/a Transpac Telecom and Pacific Telecard (“HGE”), Diamond Phone Card, Inc., Detroit Phone Card, Inc., Raza Telecom, Inc. d/b/a Raza Communication, Asia Telecom Corporation (“Asia Telecom”), and Transpac Telecom, Inc. (“TTI”) (collectively, “Defendants”). Oblio asserts a claim pursuant to the Racketeer Influ *672 enced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1961, et seq., as well as state law claims of fraud and conspiracy to commit tortious interference.

Plaintiff alleges that Defendants comprise a RICO enterprise pursuant to 18 U.S.C. § 1961(3) and 1962(a) through (d) that “ma[de] a run on a phone card provider.” Compl. ¶¶ 16, 19. Oblio asserts that it employed Patel, who controlled its network and provided telephone cards to the other Defendants. Plaintiff contends that Patel sold cards to the other Defendants but added value greater than the face value of the cards, applied unauthorized discounts to Defendants’ invoices, began a scheme to disrupt the network to create an excuse to pay less than the amount it invoiced, and sold activated cards to Defendants but told them they did not need to pay Oblio. Id. ¶ 19. Oblio asserts that it lost millions of dollars in revenue as a result of Defendants’ actions. Id. ¶ 26.

II. Legal Standards

A. Motion to Dismiss for Lack of Personal Jurisdiction

On a motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing a prima facie case for the court’s jurisdiction over a nonresident defendant. See Ham v. La Cienega Music Co., 4 F.3d 413, 415 (5th Cir.1993); Stuart v. Spademan, 772 F.2d 1185, 1192 (5th Cir.1985). When the court rules on the motion without an evidentiary hearing, the plaintiff may establish personal jurisdiction by presenting a prima facie case that personal jurisdiction is proper, id.; proof by a preponderance of the evidence is not required. International Truck and Engine Corp. v. Quintana, 259 F.Supp.2d 553, 556 (N.D.Tex.2003) (citing WNS, Inc. v. Farrow, 884 F.2d 200, 203 (5th Cir.1989)). The court may determine the jurisdictional issue by receiving affidavits, interrogatories, depositions, oral testimony, or any combination of the recognized methods of discovery. Stuart, 772 F.2d at 1192. Uncontroverted allegations in a plaintiffs complaint must be taken as true, and conflicts between the facts contained in the parties’ affidavits must be resolved in favor of the plaintiff. Bullion v. Gillespie, 895 F.2d 213, 217 (5th Cir. 1990). After a plaintiff makes his prima facie case, the burden then shifts to the defendant to present “a compelling case that the presence of some other consideration would render jurisdiction unreasonable.” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 477, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985).

A federal court has jurisdiction over a nonresident defendant if the state long-arm statute confers personal jurisdiction over that defendant, and if the exercise of jurisdiction is consistent with due process under the United States Constitution. Ruston Gas Turbines, Inc. v. Donaldson Co., Inc., 9 F.3d 415, 418 (5th Cir. 1993). Because the Texas long-arm statute extends to the limits of federal due process, Schlobohm v. Schapiro, 784 S.W.2d 355, 357 (Tex.1990), the court must determine whether (1) the defendants have established “minimum contacts” with the forum state; and, (2) whether the exercise of personal jurisdiction over the defendants would offend “traditional notions of fair play and substantial justice.” Ruston Gas, 9 F.3d at 418 (citing International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945)).

The “minimum contacts” prong is satisfied when a defendant “purposefully avails itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws.” Burger King, 471 U.S. at 475, 105 S.Ct. 2174. The nonresident defendant’s availment must be such that the defendant *673 “should reasonably anticipate being haled into court” in the forum state. WorldWide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980). This test “ensures that a defendant will not be haled into a jurisdiction solely as a result of ‘random,’ ‘fortuitous,’ or ‘attenuated’ contacts, or of the ‘unilateral activity of another party or a third person.’ ” Burger King, 471 U.S. at 475, 105 S.Ct. 2174 (citations omitted). The “minimum contacts” prong of the inquiry may be subdivided into contacts that give rise to “specific” personal jurisdiction and those that give rise to “general” personal jurisdiction. Marathon Oil Co. v. A.G. Ruhrgas, 182 F.3d 291, 295 (5th Cir.1999). Specific jurisdiction is only appropriate when the nonresident defendant’s contacts with the forum state arise from, or are directly related to, the cause of action. Helicopteros Nacionales de Colombia, S.A. v. Hall,

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711 F. Supp. 2d 668, 2008 U.S. Dist. LEXIS 94138, 2008 WL 4936488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oblio-telecom-inc-v-patel-txnd-2008.