Smart Call, L.L.C. v. Genio Mobile

349 S.W.3d 755, 2011 Tex. App. LEXIS 6784, 2011 WL 3717009
CourtCourt of Appeals of Texas
DecidedAugust 25, 2011
Docket14-10-01017-CV
StatusPublished
Cited by8 cases

This text of 349 S.W.3d 755 (Smart Call, L.L.C. v. Genio Mobile) 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
Smart Call, L.L.C. v. Genio Mobile, 349 S.W.3d 755, 2011 Tex. App. LEXIS 6784, 2011 WL 3717009 (Tex. Ct. App. 2011).

Opinion

OPINION

JEFFREY V. BROWN, Justice.

This is an interlocutory appeal from the trial court’s order denying the special appearance of Smart Call, L.L.C. Smart Call contends the trial court erred because it does not have the minimum contacts to support personal jurisdiction. We affirm.

I

Smart Call is a Delaware limited-liability corporation with Ohio as its principal place of business. Genio is a Texas corporation with its principal place of business in Sugar Land. Both companies are involved at different levels in the delivery of cellphone service. Smart Call is a “mobile network operator” that purchases access to a national cell-phone network and then resells that access to companies that directly provide cell-phone service. Genio is a “mobile virtual network operator” that directly provides cell-phone service to its customers but does not maintain a physical cell-phone network and therefore must purchase access through a mobile-network operator.

Genio sought to introduce prepaid cellphone service in the Houston and Dallas markets. In 2008, Genio’s president, Ricardo Flores, contacted Smart Call in Ohio on the recommendation of a friend, Humberto Galvan. To launch its cell-phone service, Genio needed (1) access to a national cell-phone network, and (2) SIM cards for its phones programmed with phone numbers linked to the network. Smart Call represented it could provide both. Negotiations ensued between the two companies over phone, e-mail, and video conferences, and Flores personally traveled twice to Ohio to meet with Smart Call.

In December 2008, a document entitled “GSM MVNO Service Agreement” was circulated via email among Flores, Galvan, *758 and Richard Stupansky, Smart Call’s chief operating officer. Never signed, the service agreement contained terms referring to Smart Call and an unnamed mobile-virtual-network operator; it does not name Genio expressly. 1 The accompanying emails reflect a portion of what appears to be a protracted exchange concerning the terms of the agreement. The last e-mail in the record is from Galvan to Stupansky, in which Galvan apparently forwards the service agreement to Stupansky and suggests postponing a previously scheduled conference so Stupansky would “have time to review the mails below.” 2 Galvan writes that Stupansky should “not worry about their requests, again most of them will not apply or change what we have already negotiated.” There is no further indication that the parties adopted the service agreement, and Flores denied in deposition that Genio’s breach-of-contract suit was based on the unsigned service agreement.

The record also contains a series of three Smart Call invoices sent to Genio at its Sugar Land office. Together, the invoices reflect the sale of 10,000 SIM cards with related programming and startup costs, totaling $112,000. 3 The invoices reflect they are to be billed and the products shipped to Genio’s Sugar Land office. Ge-nio alleges it wired $84,450 from its Texas bank to Smart Call in partial payment of the invoices, after which Genio alleges “significant performance delays” on Smart Call’s part. Genio’s CEO and vice president, Octavio Hinojosa, who joined the company in February 2009, testified that between February and June 2009, Genio and Smart Call representatives were in “constant communication,” exchanging between 100 and 120 emails, four to five phone calls a week, and video conferencing “very constantly.” Hinojosa also traveled to Ohio to meet personally with Smart Call.

Hinojosa testified that although Genio was otherwise ready to begin offering its pre-paid cell-phone service in February or March of 2009, it was unable to do so because it was waiting on Smart Call to provide the invoiced programmed SIM cards. Hinojosa testified that a SIM card must be linked to a ZIP code, which in turn generates an area code for a phone number, and that Genio requested Smart Call program its SIM cards with Texas area codes. Hinojosa further testified Smart Call knew Genio would service Texas markets exclusively, and estimated between ten and twenty separate communications between Genio and Smart Call regarding customization of the SIM cards for Texas cell-phone users.

In June 2009, Smart Call’s CEO, Yehi Ben Soshan, traveled to Houston to meet with Flores and Hinojosa. The three discussed the delays on the project and, according to Flores and Hinojosa, Soshan *759 ultimately told Flores and Hinojosa that Smart Call would not be able to provide the agreed-upon services. Smart Call directed Genio to another mobile-network provider and supplied Genio with 2,000 SIM cards, programmed with Texas area codes, which Hinojosa testified was a show of “good will.” Genio then sued Smart Call for breach of contract, quantum meru-it, promissory estoppel, and assumpsit. Genio asserts actual damages of $77,450, which reflects the $84,450 payment Genio made to Small Call less the $7,000 value of the SIM cards Smart Call provided after Soshan’s June 2009 visit to Texas.

II

A

Whether a trial court has personal jurisdiction over a defendant is a question of law we review de novo. Mold Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007); BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex.2002). When, as here, the trial court issues no findings of fact and conclusions of law, all facts necessary to support the judgment and supported by the evidence are implied. BMC Software, 83 S.W.3d at 795.

The plaintiff has the initial burden of pleading sufficient allegations to bring the nonresident defendant within the provisions of the Texas long-arm statute. BMC Software, 83 S.W.3d at 793; Brocail v. Anderson, 132 S.W.3d 552, 556 (Tex.App.-Houston [14th Dist.] 2004, pet. denied). A defendant challenging a Texas court’s personal jurisdiction over it must negate all jurisdictional bases alleged. BMC Software, 83 S.W.3d at 793; Nat’l Indus. Sand Ass’n v. Gibson, 897 S.W.2d 769, 772 (Tex.1995).

Texas courts may exercise jurisdiction over a nonresident if the Texas long-arm statute authorizes the exercise of personal jurisdiction and the exercise of jurisdiction is consistent with federal and state constitutional guarantees of due process. Moki Mac, 221 S.W.3d at 574; BMC Software, 83 S.W.3d at 795. The Texas long-arm statute authorizes Texas courts to exercise jurisdiction over a nonresident defendant who “does business” in the state. Tex. Civ. Prac. & Rem.Code § 17.042. The Texas Supreme Court has interpreted the broad language of the Texas long-arm statute to extend Texas courts’ personal jurisdiction “ ‘as far as the federal constitutional requirements of due process will permit.’ ” BMC Software,

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349 S.W.3d 755, 2011 Tex. App. LEXIS 6784, 2011 WL 3717009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smart-call-llc-v-genio-mobile-texapp-2011.