The State of Texas v. YELP, Inc.

Court of Appeals of Texas·Decided July 2, 2025·No. 15-24-00040-CV·Published

Opinion

ACCEPTED 15-24-00040-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 7/2/2025 9:11 AM CHRISTOPHER A. PRINE CLERK FILED IN 15th COURT OF APPEALS July 2, 2025 AUSTIN, TEXAS 7/2/2025 9:11:04 AM Via Electronic Filing and FedEx CHRISTOPHER A. PRINE Clerk Christopher A. Prine Clerk of Court Fifteenth Court of Appeals William P. Clements Building P.O. Box 12852 Austin, TX 78701

Re: State of Texas v. Yelp Inc., No. 15-24-00040-CV Fifth Notice of Supplemental Authority

Dear Mr. Prine:

Appellee Yelp Inc. (“Yelp”) submits this Fifth Notice of Supplemental Authority (“Notice”) regarding a pair of Texas Supreme Court cases recently decided that involve the issue of purposeful availment, which is one prong of the two-prong test for specific jurisdiction. The issue arose during oral argument and is addressed in the parties’ briefs.

Yelp respectfully requests that a copy of this Notice be provided to Chief Justice Scott Brister, Justice Scott Field, and Justice April Farris.

I. BRP-Rotax GmbH & Co. KG v. Shaik, No. 23-0756, 2025 WL 1727903 (Tex. June 20, 2025) (Ex. A)

In BRP-Rotax, a pair of Texas residents sued a non-resident aircraft engine manufacturer after being injured during a crash on a runway. The Texas Supreme Court found that the manufacturer did not purposefully avail itself of the privilege of doing business in Texas because the manufacturer lacked direct contacts with Texas and did not “specifically target” Texas. Id. at *1. The Court thus dismissed the case against the manufacturer. The Court’s opinion affirms many of the bases for finding a lack of specific personal jurisdiction over Yelp in the above referenced case.

The Texas Supreme Court reiterated that the “stream of commerce-plus” test for purposeful availment only applies in product liability cases. Id. at *4. This directly contradicts the State’s contention that the “stream of commerce-plus” test should be applied in this case. App. Br. at 21- 22. This is not a products liability case; rather, it involves a single DTPA claim arising from a nationwide advisory, not products. Yelp Br. at 45.

As relevant to this case, the Texas Supreme Court explained that specific personal jurisdiction is based on the defendant’s contacts with the forum state, not the unilateral activities of third parties. Id. at *8 (the “unilateral activity of another party or a third person is not an

Haynes and Boone, LLP 98 San Jacinto Ave.| Suite 1500 | Austin, TX 78701 T: 512.867.8400 | haynesboone.com July 2, 2025 Page 2

appropriate consideration when determining whether a defendant has sufficient contacts for specific personal jurisdiction”). Accordingly, “only Yelp’s contacts with Texas should be considered” in this case. Yelp Br. at 45-46. The acts of Yelp’s users are irrelevant. App. Br. at 23.

The Court also reiterated that the “touchstone” of purposeful availment “remains directly targeting Texas.” Id. at *8. In BRP-Rotax, the plaintiffs failed to allege that the manufacturer “specifically targeted Texas at all.” Id. at *8. Here, the State failed to plead that Yelp specifically targeted Texas. Instead, the State concedes that Yelp “targeted pregnancy resources centers nationwide” and posted the Consumer Notice “on the Yelp business pages of every pregnancy center across the nation.” Yelp Br. at 11 (emphasis added).

The Court also reaffirmed its previous observation that “a nonresident defendant may purposefully avoid a particular jurisdiction by structuring its transactions so as neither to profit from the forum's laws nor be subject to its jurisdiction. Id. at *9 (internal quotations omitted). Likewise, Yelp has argued it “purposefully avoids the privileges of Texas by requiring users (such as any who might have viewed the Consumer Notice at issue here) to bring suit in California and be subject to California law.” Yelp Br. at 53. 1

The Court further found that the manufacturer’s website was not “interactive” because engines could not be purchased off its website. Id. at *8. Likewise, the Consumer Notice was not interactive because it was merely information and “did not invite any commercial transactions with residents of Texas (or any other state).” Yelp Br. at 6, 46-47.

II. Hyundam Indus. Co., Ltd. v. Swacina, No. 24-0207, 2025 WL 1717010 (Tex. June 20, 2025) (Ex. B)

In Hyundam, a Texas resident sued a non-resident car manufacturer after suffering injuries when her car stalled in traffic resulting from a fuel pump failure. Like in BRP-Rotax, the Texas Supreme Court held that the manufacturer did not purposefully avail itself of the privilege of doing business in Texas because there was no evidence that the manufacturer “specifically targets Texas.” Id. at *1. Instead, the manufacturer’s conduct—designing a fuel pump for North America—was aimed at “a general region with no specific targeting of Texas.” Id. at *5. The Court thus dismissed the case against the manufacturer.

Like the manufacturer, Yelp’s conduct—posting the Consumer Notice—was aimed across America “with no specific targeting of Texas.” Id. at*1. The State concedes this in its pleadings. CR 13 ¶ 28.

1 The undisputed record also indicates that Yelp did not profit from the Consumer Notice. Yelp Br. at 51-53. July 2, 2025 Page 3

For the above reasons, this Court should follow the guidance of the Texas Supreme Court and hold that Yelp is not subject to personal jurisdiction in Texas because, among other reasons, it did not purposefully avail itself of the privilege of doing business in Texas.

Respectfully submitted,

Laura Lee Prather Partner, Haynes and Boone, LLP Laura.prather@haynesboone.com Direct Phone Number: (512) 867-8476 Direct Fax Number: (512) 867-8609

Attorney for Appellee Yelp Inc. EXHIBIT A BRP-Rotax GmbH & Co. KG v. Shaik, --- S.W.3d ---- (2025) 2025 WL 1727903

[4] interactions that Texans had with Austrian company's 2025 WL 1727903 website could not support finding specific personal Only the Westlaw citation is currently available. jurisdiction over Austrian company;

NOTICE: THIS OPINION HAS NOT BEEN RELEASED [5] alleged “hundreds” of engines that third parties had FOR PUBLICATION IN THE PERMANENT voluntarily registered as located in Texas could not support LAW REPORTS. UNTIL RELEASED, IT IS finding specific personal jurisdiction over Austrian company; SUBJECT TO REVISION OR WITHDRAWAL. and

Supreme Court of Texas. [6] taken collectively, evidence showed that Texas courts, under the stream-of-commerce-plus test, lacked personal BRP-ROTAX GMBH & CO. KG, Petitioner, specific jurisdiction over Austrian company. v. Sheema SHAIK and Touseef Siddiqui, Respondents Judgment of Court of Appeals reversed; judgment dismissing No. 23-0756 case against Austrian company rendered. | Argued December 4, 2024 Busby, J., concurred and filed opinion, which Devine, J., | joined. OPINION DELIVERED: June 20, 2025 Procedural Posture(s): On Appeal; Motion to Dismiss for Synopsis Lack of Personal Jurisdiction. Background: Aircraft passenger injured when aircraft suddenly lost engine power and crashed on the runway brought, along with her husband, who witnessed the incident, West Headnotes (23) action on claims of strict products liability, negligence, and gross negligence against Austrian company that designed and [1] Appeal and Error manufactured the allegedly defective engine. After hearing, the County Court at Law No. 5, Dallas County, Nicole Taylor, A defendant's amenability to specific personal J., denied Austrian company's special appearance challenging jurisdiction in Texas presents a question of law personal jurisdiction. Company appealed. The Dallas Court that an appellate court reviews de novo. Tex. Civ. of Appeals, 698 S.W.3d 305, affirmed. Austrian company Prac. & Rem. Code Ann. § 17.041 et seq. petitioned for review.

[2] Appeal and Error

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