Stauffacher v. Lone Star Mud, Inc.

54 S.W.3d 810, 152 Oil & Gas Rep. 88, 2001 Tex. App. LEXIS 5674, 2001 WL 947240
CourtCourt of Appeals of Texas
DecidedAugust 21, 2001
Docket06-00-00166-CV
StatusPublished
Cited by14 cases

This text of 54 S.W.3d 810 (Stauffacher v. Lone Star Mud, 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
Stauffacher v. Lone Star Mud, Inc., 54 S.W.3d 810, 152 Oil & Gas Rep. 88, 2001 Tex. App. LEXIS 5674, 2001 WL 947240 (Tex. Ct. App. 2001).

Opinion

*813 OPINION

Opinion by

Chief Justice CORNELIUS

David Stauffacher appeals from the trial court’s denial of his special appearance. Lone Star Mud, Inc., sued Stauffacher and six other defendants, alleging that they failed to pay for services and materials that Lone Star provided for the drilling and operating of an oil well in Fannin County. Stauffacher, a Wisconsin resident, filed a special appearance along with an answer and special exceptions to Lone Star’s petition, both of which he made subject to his special appearance.

Stauffacher alleged that the trial court did not have jurisdiction over him because (1) he is not and has never been a Texas resident; (2) Lone Star’s suit did not arise out of his business in Texas; (3) he does not individually conduct business in Texas, and does not have an agent in Texas authorized to conduct business on his behalf; (4) he does not individually own property in Texas; (5) he had no personal involvement or individual interest in the subject matter of Lone Star’s suit; (6) he did not make any representation to Lone Star either in an individual or representative capacity, he did not negotiate or enter into any contract with Lone Star, he does not have an account with Lone Star, and he did not travel to Texas for any purpose related to Lone Star’s claim; and (7) he has not undertaken any act or transaction constituting minimum contacts with Texas, or otherwise acted in a way that would make the assumption of jurisdiction over him by the Texas court comport with the requirements of federal due process. In support of his special appearance, Stauf-facher attached his affidavit, which detailed the extent of his contacts with Texas.

Lone Star filed a written response to Stauffacher’s special appearance, in which it alleged that the other defendants — DGS Oil, L.L.C., the operator of the well; Exel Royal, L.L.C., the leaseholder; and Equity Drilling Company and Diamond Drilling Company, the drillers-are Stauffacher’s alter egos. Lone Star also amended its petition to allege facts authorizing the disregard of the corporate entities.

At the hearing on Stauffacher’s special appearance, Lone Star presented evidence in the form of responses to interrogatories and requests for production showing (1) that Stauffacher is the managing member of both DGS Oil and Exel Royal; (2) that neither entity disclosed any other members; (3) that the operating capital for DGS Oil and Exel Royal was provided by member contributions, i.e., from Stauffacher; (4) that Stauffacher, DGS Oil, and Exel Royal all have the same Madison, Wisconsin, address; (5) that Stauffacher transferred or used his personal funds to or for the benefit of DGS Oil and Exel Royal without creating a corresponding debt to be repaid to him; (6) that between August 14, 1996 and July 28, 1998, fifty-six checks totaling over $2.4 million were written on Stauffacher’s individual account to purchase the lease, and to pay drilling and other costs associated with the well; (7) that Stauffacher personally signed thirty-nine of those checks (the other checks being signed primarily by one other person); (8) that four of the fifty-six checks totaling over $130,000.00 were written to Texas companies; (9) that only two checks used to pay costs associated with the well were written on DGS Oil’s account; and (10) that those two checks were among the first written after DGS Oil began operating the well.

Lone Star also presented the affidavit of its employee, R. Mark Turner, in which he stated that his job responsibilities included securing customers for Lone Star; that he received a call from a representative of *814 Equity Drilling, who was providing the drilling rig on the well; that Equity Drilling’s representative asked Lone Star to provide “mud on a well operated by DGS Oil;” that Turner asked about DGS Oil, its financial condition, and whether it was paying its suppliers on time; and that Equity Drilling’s representative told him “that DGS Oil was a company owned by David G. Stauffacher out of Madison, Wisconsin and that he owned Exel Inns and was well off enough to pay the bills.” 1

At the end of the hearing, the trial court overruled Stauffaeher’s special appearance. Stauffacher requested findings of fact and conclusions of law, but the trial court did not file any findings, and Stauffacher did not file a notice of past due findings of fact and conclusions of law. Tex.R.Civ.P. 296, 297. Stauffacher would have been entitled to findings of fact and conclusions of law had he properly requested them and pursued his entitlement thereto as provided by Tex.R.Civ.P. 296 and 297. Daimler-Benz Aktiengesellschaft v. Olson, 21 S.W.3d 707 (Tex.App.—Austin 2000, pet. dism’d w.o.j.); In re Estate of Judd, 8 S.W.3d 436, 440 (Tex. App.—El Paso 1999, no pet.). When, as here, the trial court has not made findings of fact and conclusions of law, we presume that it resolved all factual disputes in support of the judgment. Cartlidge v. Hernandez, 9 S.W.3d 341, 345 (Tex.App.—Houston [14th Dist.] 1999, no pet.) (citing Worford v. Stamper, 801 S.W.2d 108, 109 (Tex.1990)). When, as here, a reporter’s record is available on appeal, the parties may challenge these implied findings by factual sufficiency and legal sufficiency points in the same way they may challenge jury findings or a trial court’s findings of fact. E.L.M. LeBlanc v. Kyle, 28 S.W.3d 99, 102 (Tex.App.-Texarkana 2000, pet. ref'd). When such evidence sufficiency points are raised, the standard of review to be applied is the same as that to be applied in the review of jury findings.

A Texas court may assert personal jurisdiction over a nonresident defendant only if the requirements of both the Due Process Clause of the Fourteenth Amendment to the United States Constitution and the Texas long-arm statute are satisfied. U.S. Const, amend. XIV, § 1; Tex. Civ.Prac. & Rem.Code Ann. § 17.042 (Vernon 1997); Helicopteros Nacionales de Colombia v. Hall, 466 U.S. 408, 413-14, 104 S.Ct. 1868, 80 L.Ed.2d 404, 410 (1984); CSR Ltd. v. Link, 925 S.W.2d 591, 594 (Tex.1996). The Texas Supreme Court has consistently interpreted the long-arm statute as reaching “as far as the federal constitutional requirements of due process will allow.” Guardian Royal Exch. Assurance, Ltd. v. English China Clays, P.L.C., 815 S.W.2d 223, 226 (Tex.1991).

Under the Due Process Clause, a defendant must have sufficient minimum contacts with the forum so that maintaining suit there will 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, 90 L.Ed. 95, 102 (1945) (quoting Milliken v. Meyer,

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54 S.W.3d 810, 152 Oil & Gas Rep. 88, 2001 Tex. App. LEXIS 5674, 2001 WL 947240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stauffacher-v-lone-star-mud-inc-texapp-2001.