Rapaglia v. Lugo

372 S.W.3d 286, 2012 WL 2403623, 2012 Tex. App. LEXIS 5102
CourtCourt of Appeals of Texas
DecidedJune 27, 2012
DocketNo. 05-11-01457-CV
StatusPublished
Cited by9 cases

This text of 372 S.W.3d 286 (Rapaglia v. Lugo) 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
Rapaglia v. Lugo, 372 S.W.3d 286, 2012 WL 2403623, 2012 Tex. App. LEXIS 5102 (Tex. Ct. App. 2012).

Opinion

OPINION

Opinion By

Justice MORRIS.

In this interlocutory appeal, William Ra-paglia challenges the trial court’s order granting the special appearance of Sofia Lugo. Appellant first argues that he pleaded sufficient jurisdictional facts to support the exercise of jurisdiction. He then argues that Lugo waived her special appearance, that Lugo had sufficient contacts with Texas to give rise to jurisdiction because she consented to or ratified actions in Texas taken by her husband, and that the exercise of jurisdiction over Lugo would comport with due process requirements and not offend traditional notions of fair play and substantial justice. For the reasons that follow, we affirm the trial court’s order granting Lugo’s special appearance and dismissing her from the lawsuit.

I.

This case arises out of a dispute among the directors, officers, shareholders, and agents of Ab Unda Corporation, a Nevada company with its principal place of business in Texas. Appellant, individually and as representative of the shareholders of AUC, sued Lugo and others for breach of legal, equitable, and fiduciary duties, civil conspiracy, intentional infliction of emotional distress, and unjust enrichment. Sofia Lugo is a Florida resident who, with her husband Michael Sheils, jointly holds stock in AUC.1

In his live pleading, appellant acknowledges that Lugo is a Florida resident. Appellant also alleges, however, that his causes of action arise from or are connected to purposeful acts committed by the various defendants, including Lugo, while they were acting either as an “officer, director, attorney, partner, or co-venturer” of AUC and engaging in business dealings with AUC. Appellant alleges that Lugo [289]*289and her husband conspired with the other defendants to steal AUC’s assets and opportunities. Appellant’s pleading specifically references a 2003 meeting in Dallas, Texas that “defendants” attended “for the purpose of conspiring against [appellant] with the intention of defrauding [appellant] and other shareholders.” Lugo filed a special appearance arguing that she was not subject either to general or specific jurisdiction in Texas because she had not purposefully availed herself of the privilege of conducting activities within Texas or otherwise established minimum contacts with Texas.

In her supporting affidavit, Lugo testified she is a Florida resident who had never resided in Texas, did not have a phone listing or own property in Texas, and never did business or entered into any agreement with a Texas resident with respect to this matter. She denied any involvement in the business activities of AUC and said her sole act as an AUC shareholder was signing a “Notice of Action by the Shareholders of Ab Unda Corporation” on February 25, 2003 in Florida. Lugo denied participating in the 2003 Dallas meeting and further denied appointing anyone to act as her agent at the 2003 meeting or in connection with the affairs of AUC. She stated that she had not been in Texas for any purpose in the past thirty-six years. After a hearing, the trial court granted Lugo’s special appearance. Appellant filed this interlocutory appeal challenging the trial court’s ruling.2

II.

We review de novo the trial court’s ruling on a special appearance. See Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007). Where, as here, the trial court did not make findings of fact or conclusions of law, we infer all facts necessary to support the judgment if they are supported by the evidence. Id.

A Texas court may exercise personal jurisdiction over a nonresident defendant under the Texas long-arm statute, which extends personal jurisdiction as far as federal due process requirements permit. See Guardian Royal Exchange As-sur., Ltd. v. English China Clays, P.L.C., 815 S.W.2d 223, 226 (Tex.1991). Due process allows a forum state to exert jurisdiction when the nonresident defendant (1) has some minimum, purposeful contact with the state, and (2) the exercise of jurisdiction does not offend traditional notions of fair play and substantial justice. Id. Purposeful availment is the touchstone of the minimum contact analysis. Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777, 784 (Tex.2005). The purposeful availment analysis involves a three-part inquiry: (1) only the nonresident defendant’s contacts with the forum state are relevant; (2) the contact relied on must be purposeful rather than random, fortuitous, or attenuated; and (3) the defendant must have sought some benefit, advantage or profit by availing herself of the forum state’s jurisdiction. See Moki Mac, 221 S.W.3d at 575.

A nonresident defendant’s contacts with a forum state may give rise either to general or specific jurisdiction. BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 795-96 (Tex.2002). For general jurisdiction, a plaintiff must allege the nonresident defendant had continuous or systemic contacts with the forum state. See Guardian Royal, 815 [290]*290S.W.2d at 228. A court may exercise specific jurisdiction over a nonresident defendant in a lawsuit that arises out of or is related to her contact with the forum state. Moki Mac, 221 S.W.3d at 576. For specific jurisdiction to apply, the nonresident defendant’s contact with the forum state must be purposeful and the cause of action must arise from or relate to the contact. Id.

We begin with appellant’s complaint that Lugo waived her special appearance when her former attorney appeared on her behalf at a hearing on a motion to stay filed by two co-defendants. We have reviewed the transcript of the hearing. We note that the attorney in question represented not only Lugo but her husband Sheils, who did not file a special appearance. At least twice during the hearing, the lawyer informed the trial court that a special appearance had been previously filed on Lugo’s behalf and also noted that there was no basis for a Texas court to exercise personal jurisdiction over Lugo. In fact, the trial court acknowledged that Lugo’s position on the motion being heard was subject to her special appearance. Because Lugo did not invoke the judgment of the court on any question other than the court’s jurisdiction, did not acknowledge by her acts that an action was properly pending against her or seek affirmative action from the court, she did not waive her special appearance. See Exito Elecs. Co., Ltd. v. Trejo, 142 S.W.3d 302, 304 (Tex.2004).

We next address appellant’s argument that the alleged conspiracy between Lugo, her husband and certain Texas residents to steal AUC’s assets and opportunities may serve as a basis for the trial court’s assertion of specific jurisdiction over Lugo. Although appellant attempts to attribute to Lugo the acts of alleged co-conspirators within Texas to support the exercise of jurisdiction over her, the proper inquiry remains whether Lugo’s contacts with Texas were such that she should reasonably anticipate being sued in Texas for her actions with respect to AUC. See Nat’l Indus.

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372 S.W.3d 286, 2012 WL 2403623, 2012 Tex. App. LEXIS 5102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rapaglia-v-lugo-texapp-2012.