SITQ E.U., Inc. v. Reata Restaurants, Inc.

111 S.W.3d 638, 2003 WL 21197296
CourtCourt of Appeals of Texas
DecidedJuly 3, 2003
Docket2-01-405-CV
StatusPublished
Cited by93 cases

This text of 111 S.W.3d 638 (SITQ E.U., Inc. v. Reata Restaurants, 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
SITQ E.U., Inc. v. Reata Restaurants, Inc., 111 S.W.3d 638, 2003 WL 21197296 (Tex. Ct. App. 2003).

Opinion

OPINION

JOHN CAYCE, Chief Justice.

I. Introduction

In this interlocutory appeal, SITQ E.U., Inc., SITQ Holdings (U.S.), Inc., Canderel Corp., and Jonathan Wener (collectively, appellants) appeal the trial court’s denial of their special appearance motions challenging the trial court’s exercise of personal jurisdiction over them. Because we conclude that appellants had sufficient contacts with Texas to support the exercise of specific jurisdiction, we will affirm.

*643 II. Background Facts & Procedural History

SITQ E.U., Inc. is a Canadian corporation that owns 100% of SITQ Holdings (U.S.), Inc. 1 SITQ Holdings is a Delaware corporation. Canderel Corp. is a Delaware corporation. Wener owns 100% of the entity that wholly owns Canderel, and he is the chairman, CEO, and sole director of Canderel and its parent company. At all times pertinent to this case, Wener controlled Canderel either directly or indirectly.

In the late 1990s, SITQ Holdings, Wen-er, Canderel, and Ronald Cherry, a Texas resident, made a conscious decision to acquire real estate in Texas. Pursuant to this plan, Wener, Jean-Francios Fournier, an asset manager for SITQ EU and SITQ Holdings, and other representatives of SITQ Holdings came to Texas to view real estate before purchasing it. One piece of real estate that they inspected was the Bank One Tower (the Tower) in Fort Worth.

Loutex Portfolio GP, Inc., 2 SITQ Holdings, Canderel, and CW Dalcan Investments, Inc. 3 formed Loutex Portfolio LP (Loutex Portfolio) to “acquire ..., lease, manage, maintain, finance and sell” real estate in Texas, Louisiana, and Oklahoma, including the Tower.

Loutex Portfolio had two limited partners: SITQ Holdings and Canderel/Dalcan Investments. SITQ Holdings owned 90% of Loutex Portfolio. Initially, Dalcan Investments owned the other 10%, but Can-derel became the successor in interest to Dalcan Investments and agreed to be bound by the Loutex Portfolio partnership agreement. Thereafter, Canderel and Dalcan Investments were deemed to be one limited partner and spoke with one voice regarding decisions or representations concerning Loutex Portfolio.

In the fall of 1998, Loutex Portfolio purchased the Tower with funding provided by SITQ EU. Loutex Portfolio did not, however, directly own the real property it acquired. Instead, it created Loutex Fort Worth LP (Loutex FW), which Loutex Portfolio controlled, to acquire the title to the Tower.

Loutex FW was run by a board of managers, which was comprised of Cherry, Yvon Tessier, and Helene Lafond. These same three individuals made up the board of directors for Loutex Portfolio. Tessier and Lafond were employed by SITQ, Inc., which performed all acts for SITQ EU and SITQ Holdings pursuant to a management contract. 4 Tessier and Lafond were appointed to the Loutex entities’ boards by SITQ Holdings; Cherry was appointed by Canderel.

On March 28, 2000, a tornado severely damaged the Tower. At that time, Reata Restaurants, Inc., Reata Restaurants Management Co., Ltd., Law, Snakard & Gam-bill, P.C., Marvin E. Blum & Associates, P.C., and Range Resources Corporation (collectively, appellees) were tenants of the Tower. Section 9.01 of appellees’ leases provided that, if the budding was damaged by fire or other casualty, the landlord had the election either “to terminate this Lease or to repair same with reasonable dis *644 patch.” Section 9.02 of the lease provided that “[i]f Landlord elects to repair and reconstruct as provided in Section 9.01 hereof, Landlord shall use its reasonable efforts to effect such repairs and reconstruction in such a manner as not to unreasonably interfere with Tenant’s occupancy.”

After the March 28 tornado, appellees were informed, through Cherry and others, that the Tower would be repaired and reopened for occupancy as soon as possible. Monthly updates on the Tower reconstruction were published to Tower tenants in the April through July 2000 editions of the Tower Talk newsletter. In addition, Cherry and/or Loutex assisted Reata with restoration of the Reata restaurant so that it could reopen in early May 2000.

By July 20, 2000, however, the Loutex entities, SITQ Holdings, and Canderel reached a settlement agreement with the Tower’s insurance company. As a result of that settlement agreement, reconstruction on the Tower was stopped, all of the tenants’ leases were terminated, and the Tower was eventually sold.

Thereafter, appellees. sued appellants, 5 the Loutex entities, and Cherry for fraud, negligent misrepresentation, tortious interference, breach of fiduciary duty, conspiracy, conversion, denuding, and fraudulent transfers. 6 Appellants filed special appearances challenging the trial court’s personal jurisdiction over them. After a hearing, the trial court overruled the special appearances, and this appeal followed.

III. Issues Presented

In their first issue, appellants contend that the trial court’s exercise of personal jurisdiction over them is improper because they lack the requisite minimum contacts with Texas. They assert there is no evidence that they purposefully engaged in business in Texas with regard to the Tower or its tenants; had any dealings or contacts with appellees; or had any other contacts with Texas that were sufficient to permit the trial court’s exercise of specific jurisdiction over them. Appellants also argue that the fiduciary shield doctrine protects Wener from the trial court’s exercise of personal jurisdiction over him because any contacts he had with Texas were only in his capacity as a representative of Canderel.

Appellees contend that each of the appellants had sufficient contacts with Texas to make them amenable to suit here, including the commission of a tort in whole or in part in Texas. Appellees assert that their tort claims against appellants for fraud, negligent misrepresentation, tor-tious interference, conspiracy, conversion, denuding, and fraudulent transfers all arose out of appellants’ post-tornado conduct concerning the Tower and its tenants.

IV. Standard of Review

Whether a trial court has personal jurisdiction over a defendant is a question of law. BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex.2002); Hotel Partners v. Craig, 993 5.W.2d 116, 120 (TexApp.-Dallas 1994, writ denied). The plaintiff bears the initial burden of pleading sufficient allegations to bring a nonresident defendant within the provisions of the long-arm statute. Mar-chand, 83 S.W.3d at 793; McKanna v. Edgar, 388 S.W.2d 927, 930 (Tex.1965).

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Bluebook (online)
111 S.W.3d 638, 2003 WL 21197296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sitq-eu-inc-v-reata-restaurants-inc-texapp-2003.