Ted Stauffer & John Bernot v. Jane T. Nicholson

438 S.W.3d 205, 2014 WL 3735887, 2014 Tex. App. LEXIS 8353
CourtCourt of Appeals of Texas
DecidedJuly 30, 2014
Docket05-13-01009-CV
StatusPublished
Cited by19 cases

This text of 438 S.W.3d 205 (Ted Stauffer & John Bernot v. Jane T. Nicholson) 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
Ted Stauffer & John Bernot v. Jane T. Nicholson, 438 S.W.3d 205, 2014 WL 3735887, 2014 Tex. App. LEXIS 8353 (Tex. Ct. App. 2014).

Opinion

OPINION

Opinion by

Justice EVANS.

This interlocutory appeal arises out of a lawsuit Jane T. Nicholson filed in probate court against her brother Ted Stauffer a nonresident. Nicholson sued Stauffer individually and as “Successor Trustee of the Anne Bodulus Stauffer Revocable Trust.” Stauffer filed a special appearance to the action asserting the court lacked personal jurisdiction over him. After a hearing, the court denied the special appearance in part, refusing to dismiss those claims related or “ancillary” to a certain investment account created and governed by the court’s order in a previous lawsuit. On appeal, Stauffer contends the trial court erred in not dismissing all of the claims asserted against him because Nicholson’s causes of action do not arise from or relate to any contacts he had with Texas. For the reasons that follow, we reverse in part the trial court’s order denying in part Stauffer’s special appearance, and render judgment of dismissal of this case for lack of personal jurisdiction over Stauffer as successor trustee and lack of subject matter jurisdiction over the claims asserted against Stauffer individually.

I. Factual Background

In April 2008, Anne Stauffer sued Nicholson, her daughter, in Collin County Probate Court seeking to recover funds allegedly belonging to Anne. 1 Appellant, Anne’s son, assisted his mother in the lawsuit by participating telephonically from out of state in a recorded hearing and by making an agreement on the record with Anne and Nicholson that became embodied in the final agreed order (2008 order) resolving the 2008 lawsuit.

Among other things, the 2008 order required Nicholson to transfer the balance of certain funds to an investment account established by Anne. The 2008 order further provided that Stauffer and Nicholson would be payable on death beneficiaries of the investment account. Moreover, aside from certain amounts specifically identified in the order, funds could not be withdrawn or transferred out of the investment account “without the express written approval of each of’ Anne, Nicholson, and Stauf-fer. In a separate paragraph, the 2008 order provided “this Court will retain continuing jurisdiction to enforce the terms of this Order.” Stauffer and Nicholson each signed the 2008 order over lines beneath which only each of their typed names appeared. Anne died in 2011.

In September 2012, Nicholson filed the present action against Stauffer individually and as successor trustee. 2 In her petition, Nicholson asserted the probate court had personal jurisdiction over Stauffer because he engages or has engaged in business in Texas and the lawsuit “arises out of the business done in this state and to which said Stauffer is a party.” Among other things, Nicholson factually alleged Stauffer had removed funds from the investment account created pursuant to the 2008 order *209 and that the probate court expressly retained jurisdiction to enforce the terms of the 2008 order. Nicholson also alleged Stauffer moved funds belonging to the Trust and unduly influenced Anne to execute an amendment to the Trust. For her causes of action as regards funds allegedly taken from both the investment account and the Trust, Nicholson asserted conversion, violations of the Texas Theft Liability Act, and money had and received. As regards Nicholson’s own property without specifying if she meant the investment account and Trust, Nicholson alleged unjust enrichment. As regards solely the Trust, Nicholson alleged breach of fiduciary duty, lack of capacity of Anne and undue influence over Anne regarding a 2011 an amendment to the Trust, fraud and constructive fraud, and tortious interference with inheritance rights. Nicholson sought a declaration invalidating the 2011 Trust amendment alleging Anne’s lack of capacity, undue influence, and lack of required formalities. Nicholson also sought a constructive trust on property and proceeds that Stauffer obtained by fraud or other tortious conduct, exemplary damages, and attorney’s fees.

Stauffer filed a special appearance denying he was ever a resident of, engaged in business in, or maintained a place of business in, Texas. He further asserted he had no substantial connection or contacts with Texas and that Nicholson’s claims did not arise from or relate to any activity conducted by Stauffer in Texas. Nicholson responded that the probate court had personal jurisdiction because Stauffer signed the 2008 order in which the court specifically retained jurisdiction to address issues related to the investment account. 3 After a hearing, the probate court granted in part Stauffer’s special appearance dismissing all claims against him except for those that related to, or were ancillary to, the investment account. In its findings of facts and conclusions of law, the probate court concluded it had specific jurisdiction over Stauffer “to enforce the terms of the May 2008 order for the limited purpose of determining whether there has been a breach of the Agreed Order as well as any ancillary issues pertaining to the investment account.” Stauffer timely perfected this interlocutory appeal.

II. Analysis of PeRsonal Jurisdiction

A. Standard of Review

In a special appearance, the defendant bears the burden of negating all bases of personal jurisdiction alleged by the plaintiff. See Kelly v. Gen. Interior Constr. Inc., 301 S.W.3d 653, 658 (Tex. 2010). If a lower court enters an order denying a special appearance, and the lower court issues findings of fact and conclusions of law, the appellant may challenge the fact findings on legal and factual sufficiency grounds. BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex.2002). Whether a court can exercise personal jurisdiction over a nonresident defendant is a question of law, and thus we review de novo the lower court’s determination of a special appearance. Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007).

B. Consent Jurisdiction

Under her argument regarding specific jurisdiction, Nicholson argues Stauffer consented to jurisdiction of the probate court by agreeing to the clause in the 2008 order that provides that the probate court will “retain continuing jurisdiction to enforce the terms of this Order.” *210 Stauffer does not contest in these proceedings that the clause affects consent to jurisdiction over enforcement of the 2008 order. Stauffer argues the clause does not include Nicholson’s claims in this suit.

We have previously held a eon-sent-to-jurisdiction clause that encompasses claims against a nonresident defendant obviates the need to rely solely on traditional analysis of minimum contacts.

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Cite This Page — Counsel Stack

Bluebook (online)
438 S.W.3d 205, 2014 WL 3735887, 2014 Tex. App. LEXIS 8353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ted-stauffer-john-bernot-v-jane-t-nicholson-texapp-2014.