THD S.P.A. v. Jeffry Allen Pegg and Jennifer Pegg

CourtCourt of Appeals of Texas
DecidedJuly 31, 2025
Docket02-24-00490-CV
StatusPublished

This text of THD S.P.A. v. Jeffry Allen Pegg and Jennifer Pegg (THD S.P.A. v. Jeffry Allen Pegg and Jennifer Pegg) 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
THD S.P.A. v. Jeffry Allen Pegg and Jennifer Pegg, (Tex. Ct. App. 2025).

Opinion

In the Court of Appeals Second Appellate District of Texas at Fort Worth ___________________________ No. 02-24-00490-CV ___________________________

THD S.P.A., Appellant

V.

JEFFRY ALLEN PEGG AND JENNIFER PEGG, Appellees

On Appeal from the 236th District Court Tarrant County, Texas Trial Court No. 236-323665-21

Before Sudderth, C.J.; Kerr and Walker, JJ. Memorandum Opinion by Justice Kerr MEMORANDUM OPINION

Appellees Jeffry and Jennifer Pegg sued Appellant THD S.p.A.—an Italian

medical-device manufacturer—for product liability, alleging under a stream-of-

commerce theory that THD S.p.A. had sufficient contacts with Texas to confer

specific personal jurisdiction. THD S.p.A. filed a special appearance and argued that it

sold its medical devices to an Iowa company, THD America, Inc., which

independently determined where to sell and distribute those devices. In response, the

Peggs pointed to THD S.p.A.’s “Distribution Quality Agreement” with THD America

and other evidence they contend demonstrated THD S.p.A.’s intent and purpose to

serve the Texas market. The trial court denied THD S.p.A.’s special appearance, and it

appealed.

In their opening briefs, both parties argued about another stream-of-commerce

special-appearance case that was then pending before the Texas Supreme Court

involving a foreign manufacturer that also sold its products to a third-party distributor

that then sold the products to Texas customers. See BRP-Rotax GmbH & Co. KG v.

Shaik, No. 23-0756, 2025 WL 1727903 (Tex. June 20, 2025). THD S.p.A. urged us to

await the supreme court’s decision before deciding this appeal, which we have done.

We hold—in line with BRP-Rotax—that because the Peggs did not establish that

THD S.p.A. purposefully availed itself of the Texas market—as contrasted with and

distinct from THD America’s conduct—the trial court erred by denying THD S.p.A.’s

special appearance. We will reverse.

2 I. Background Facts and Procedural History

When 58-year-old Jeffry Pegg developed Grade III internal hemorrhoids, his

primary care physician referred him to surgeon Dr. Jennifer Lowney. Dr. Lowney and

Jeffry discussed various treatment options, and Dr. Lowney recommended the “THD

procedure,” which she allegedly said “was less invasive and had less down time than

the hemorrhoidectomy procedure.” According to Jeffry, Dr. Lowney did not discuss

any risks or complications other than possibly having to repeat the procedure or do a

full hemorrhoidectomy if the THD procedure was unsuccessful.

Jeffry had the THD procedure. Immediately afterward, Dr. Lowney reported

that Jeffry’s hemorrhoids “were successfully treated,” but unfortunately, Jeffry’s bowel

had been perforated during the surgery, and he began to develop many problems.

Two days after the surgery, Jeffry went to the emergency room and was admitted to

the ICU. He had severe sepsis, pain, and organ failure. Jeffry needed additional

surgeries, including an ileostomy surgery. He developed additional complications,

including abdominal pain, a hernia at the colostomy site, and acute pulmonary

embolisms requiring hospitalization.

Jeffry and his wife, Jennifer, sued Dr. Lowney and others for medical

malpractice.1 Additionally, the Peggs asserted various product-liability claims against

THD S.p.A.—an Italian corporation—and THD America—an Iowa-based

The Peggs later nonsuited their claims against Dr. Lowney and other named 1

defendants, leaving pending their claims against THD America and THD S.p.A.

3 corporation—concerning the THD device and procedure. The Peggs alleged that—

although headquartered in Italy—THD S.p.A. did “business in the State of Texas by

selling and distributing THD medical devices through a worldwide chain of

distribution, including selling and distributing THD medical devices including but not

limited to the THD Slide One Kit for sale in the State of Texas.”

THD America answered, but THD S.p.A. filed a special appearance denying

the Peggs’ jurisdictional allegations:

THD S.p.A. never sold or distributed any devices in Texas or the United States. In fact, THD S.p.A. does not conduct business in America, as any American business is conducted solely by the THD American entity, THD America, Inc.—whom [the Peggs] have also named as a [d]efendant and whom [the Peggs] acknowledge is organized under American laws.

THD S.p.A. argued that THD America had independently performed all the conduct

that the Peggs alleged as the basis for personal jurisdiction. THD S.p.A. thus argued

that because no nexus existed among THD S.p.A., the Peggs’ causes of action, and

Texas, the trial court should not exercise personal jurisdiction over THD S.p.A.

According to the Peggs, both THD entities—who were jointly represented by

the same counsel—inadequately responded to the Peggs’ jurisdictional-discovery

efforts. But after filing several motions to compel, the Peggs eventually obtained

documents and deposed Anne Wegner, THD America’s corporate representative and

its Director of Finance. We will discuss the Peggs’ evidence responsive to the special

appearance in greater detail below, but they presented the following: (1) excerpts from

4 Wegner’s oral deposition; (2) portions of THD America’s discovery responses; (3) a

transcript of a hearing on one of the Peggs’ motions to compel; (4) THD America’s

“Org Chart”; (5) marketing materials concerning the THD Doppler® Hemorrhoid

System, the THD Slide One Kit, and the THD Doppler procedure; (6) the

distribution agreement; and (7) documents on file with the Food and Drug

Administration (FDA) concerning THD S.p.A.’s 2008 premarket regulatory filings

and THD S.p.A.’s Italian facility in March of 2013. 2

At the special-appearance hearing, the trial court considered the evidence,

heard both sides’ arguments, verbally confirmed the Peggs’ allegations that THD

S.p.A.’s Slide One Kit had been used in Texas during Jeffry’s hemorrhoid surgery and

had allegedly caused the Peggs’ damages, and then denied the special appearance. This

appeal ensued.

II. Discussion

THD S.p.A. raises two issues: (1) it lacked sufficient minimum contacts with

Texas and did not purposefully avail itself of the Texas market to justify the trial

court’s exercise of specific personal jurisdiction over it; and (2) the trial court’s

exercise of such jurisdiction did not comport with traditional notions of fair play and

2 In reply, THD S.p.A. provided a complete copy of Wegner’s deposition transcript, copies of additional regulatory communications, and portions of the Peggs’ written discovery and the responses to it.

5 substantial justice. Agreeing with THD S.p.A. on its first issue, we conclude that the

trial court erred by denying THD S.p.A.’s special appearance.

A. Standard of review and applicable law

Because a trial court’s authority to exercise personal jurisdiction over a

nonresident defendant is a legal question, we review de novo a trial court’s decision to

grant or deny a special appearance. See State v. Volkswagen Aktiengesellschaft, 669 S.W.3d

399, 413 (Tex. 2023); Am. Type Culture Collection, Inc. v. Coleman, 83 S.W.3d 801, 805–

06 (Tex. 2002). When, as here, the trial court does not issue findings of fact and

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THD S.P.A. v. Jeffry Allen Pegg and Jennifer Pegg, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thd-spa-v-jeffry-allen-pegg-and-jennifer-pegg-texapp-2025.