Specht v. Dunavant

362 S.W.3d 752, 2011 WL 5928557, 2011 Tex. App. LEXIS 9331
CourtCourt of Appeals of Texas
DecidedNovember 29, 2011
Docket14-10-01056-CV
StatusPublished
Cited by3 cases

This text of 362 S.W.3d 752 (Specht v. Dunavant) 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
Specht v. Dunavant, 362 S.W.3d 752, 2011 WL 5928557, 2011 Tex. App. LEXIS 9331 (Tex. Ct. App. 2011).

Opinion

*754 OPINION

TRACY CHRISTOPHER, Justice.

Appellants Richard Specht and Rene Hamouth appeal the trial court’s denial of their special appearances. Because we find no basis for the exercise of specific or general personal jurisdiction over them, we reverse the trial court’s order and remand the case to the trial court with instructions to sever and dismiss the claims against them.

I. Factual and Procedural Background

Utah resident William R. Dunavant and his Florida corporation, William R. Duna-vant Family Holdings, Inc. (collectively, “Dunavant”), filed suit in district court against five defendants, including appellants Specht and Hamouth, who reside in Canada. Dunavant asserted various claims arising from a “Stop Transfer Resolution” that prevented Dunavant from transferring his shares of stock in Versa Card Inc. 1 Versa Card is a Delaware corporation with its sole place of business in Texas, and Dunavant received the stock as compensation for his work as the company’s CEO. The sole jurisdictional allegation in Dunavant’s petition is the assertion that “[jurisdiction and venue are proper in Harris County because all or a substantial part of the events or omissions giving rise to the claim occurred in Harris County, Texas and Harris County is the county of the defendant’s [sic] principal office in this state.” Specht and Hamouth have brought this interlocutory appeal to challenge the trial court’s denial of their joint special appearance.

II. Governing Law

Whether a trial court has personal jurisdiction over a defendant is a question of law we review de novo. Moki 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 with its special-appearance ruling, all facts necessary to support the judgment and supported by the evidence are implied. BMC Software, 83 S.W.3d at 795.

The Texas Supreme Court has interpreted the broad language of the Texas long-arm statute to extend Texas courts’ exercise of personal jurisdiction “ ‘as far as the federal constitutional requirements of due process will permit.’ ” Id. (quoting U-Anchor Adver., Inc. v. Burt, 553 S.W.2d 760, 762 (Tex.1977)). Those requirements are fulfilled if the defendant has “certain minimum contacts with [the forum state] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945) (quoting Milliken v. Meyer, 311 U.S. 457, 463, 61 S.Ct. 339, 343, 85 L.Ed. 278 (1940)). Minimum contacts are sufficient to support the exercise of personal jurisdiction if they show that the nonresident defendant has purposefully availed itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws. See id. at 319, 66 S.Ct. at 160; Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777, 784 (Tex.2005). In determining whether the purposeful-availment requirement is satisfied, courts consider only the defendant’s contacts with the forum state, and not the unilateral activity of a third party. Michiana, 168 *755 S.W.3d at 785. In addition, the defendant’s contacts with the forum state must be purposeful rather than merely fortuitous. Id. Moreover, the defendant must seek some benefit, advantage, or profit by availing itself of the forum. Id.

Personal jurisdiction may be “general” or “specific.” Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). A trial court properly may exercise general jurisdiction over a defendant whose contacts with the forum state have been continuous and systematic. Moki Mac, 221 S.W.3d at 575; BMC Software, 83 S.W.3d at 796. When general jurisdiction is at issue, only the defendant’s pre-suit contacts are relevant. PHC-Minden, L.P. v. Kimberly-Clark Corp., 235 S.W.3d 163, 169 (Tex.2007). On the other hand, when there is a substantial connection between the defendant’s purposeful contacts with Texas and the operative facts of the litigation, a trial court properly may exercise specific jurisdiction over the defendant. Mo ki Mac, 221 S.W.3d at 585.

A defendant challenging a Texas court’s personal jurisdiction 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). Thus, the plaintiff has the initial burden of pleading sufficient facts 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). If the plaintiff fails to do so, then proof of the defendant’s nonresidency is sufficient to negate personal jurisdiction. Kelly v. Gen. Interior Constr., Inc., 301 S.W.3d 653, 658-59 (Tex.2010).

III. Analysis

In support of their joint special appearance, Speeht and Hamouth produced ample evidence negating the bases of jurisdiction alleged in Dunavant’s petition. Specifically, they established that they reside in Canada and have never (a) owned, leased, or controlled personal or real property in Texas; (b) maintained Texas offices, addresses, or telephone numbers; (c) been parties to or witnesses in any other Texas litigation; (d) advertised, marketed, or solicited business in Texas; (e) employed agents or employees in Texas; (f) maintained a Texas bank account, brokerage account, or investment account; or (g) been parties to a contract between Dunavant and Versa Card. (1 CR 23-27) See Wolf v. Summers-Wood L.P., 214 S.W.3d 783, 791 n. 1 (Tex.App.-Dallas 2007, no pet.) (considering many of the same factors).

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362 S.W.3d 752, 2011 WL 5928557, 2011 Tex. App. LEXIS 9331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/specht-v-dunavant-texapp-2011.