Touradji v. Beach Capital Partnership, L.P.

316 S.W.3d 15, 2010 Tex. App. LEXIS 2590, 2010 WL 1571902
CourtCourt of Appeals of Texas
DecidedApril 8, 2010
Docket01-09-00403-CV
StatusPublished
Cited by70 cases

This text of 316 S.W.3d 15 (Touradji v. Beach Capital Partnership, L.P.) 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
Touradji v. Beach Capital Partnership, L.P., 316 S.W.3d 15, 2010 Tex. App. LEXIS 2590, 2010 WL 1571902 (Tex. Ct. App. 2010).

Opinion

OPINION

ELSA ALCALA, Justice.

In this interlocutory appeal, appellant, Paul Touradji, appeals the trial court’s order denying his special appearance. 1 Ap-pellees, Beach Capital Partnership, L.P., Playa Oil & Gas GP, LLC, Playa Oil & Gas, LP, and Gary M. Beach (collectively, “plaintiffs”) sued Touradji, a New York resident, and Touradji’s business Deep-Rock Venture Partners, LP, alleging claims for interference with contract and economic relations, fraud, breach of fiduciary duty, slander and libel, and intentional infliction of emotional distress. Tourad-ji filed a special appearance that the trial court denied. In two issues, Touradji contends the trial court erred by denying his special appearance because he is not subject to either specific or general jurisdiction in Texas. We conclude that Touradji is not subject to general jurisdiction in Texas but that he is subject to specific jurisdiction for some of the claims against him. More specifically, Touradji established minimum contacts with Texas and the claims for interference with contract, fraud, and breach of fiduciary duty sufficiently relate to those contacts to subject Touradji to personal jurisdiction in Texas. We also conclude plaintiffs failed to plead sufficient jurisdictional allegations concerning the claims for slander and libel and for intentional infliction of emotional distress to subject Touradji to personal jurisdiction in Texas. We affirm in part, reverse in part and remand this case to the trial court.

Background

This case involves a dispute over ownership of Playa Oil & Gas, LP, a Texas limited partnership, as well as control of its ongoing operations.

A. Overview of Entities Involved

Playa Oil & Gas, LP (“Playa LP”) is a Texas limited partnership with its principal place of business in Houston, Texas. Playa LP was established in 2005 by Gary M. Beach, a Texas resident, and Paul Touradji, a New York resident, through other entities as described below. The partners of Playa LP are its general partner, Playa Oil & Gas GP, LLC (“Playa GP”), and its limited partners, Beach Capital Partnership, L.P. (“Beach Capital”) and DeepRock Venture Partners, LP (“Deep-Rock”). Playa GP owns 0.1% of Playa LP, while Beach Capital owns 19.9% and Deep-Rock owns 80%.

Playa GP is a Texas limited liability company with its principal place of business in Houston, Texas. Playa GP, as the general partner of Playa LP, operates Pla-ya LP and manages its business affairs. Playa GP is run by four managers, one appointed by Beach and the remaining three by DeepRock. Touradji is a manager of Playa GP and, prior to this controversy, Beach was a manager and the CEO. Playa GP is wholly owned by Beach.

Beach Capital is a Texas limited partnership. Its principal place of business is Houston, Texas. Beach owns 100% of Beach Capital.

DeepRock is a Delaware limited partnership with its principal place of business in New York. Touradji indirectly owns 100% of DeepRock. DeepRock was created for the purpose of becoming a partner in Playa LP, for Touradji to manage his investment in Playa LP.

*22 B. The Controversy

In 2008, after Playa LP had been operating almost three years, Touradji and DeepRock sought to restructure the parties’ relationship. Touradji and DeepRock declined to make any further investment in Playa LP unless DeepRock received 100% of Playa LP’s revenues until DeepRock’s entire investment had been recovered. In May 2008, Beach and Beach Capital executed an “Amended and Restated Agreement of Limited Partnership.” Touradji and DeepRock did not execute the agreement. Touradji and DeepRock also did not make any further investment in Playa LP.

Touradji, as one of the managers of Playa GP, authorized the sale of Playa LP assets, specifically, real property in East Texas, for approximately $41 million. Touradji also authorized the distribution of the $41 million in proceeds to DeepRock, but no distribution was made to the other limited partner, Beach Capital. By the terms of the partnership agreement, approximately $8.2 million of the proceeds should have been distributed to Beach Capital.

On September 26, 2008, Beach learned that the “Amended and Restated Agreement of Limited Partnership” had not been executed by Touradji or DeepRock. Beach and Beach Capital withdrew their consent to the amended agreement.

Plaintiffs filed this suit on October 1, 2008. A few days later, Touradji, acting on behalf of DeepRock, approved the “Amended and Restated Agreement of Limited Partnership” of Playa LP and appointed new managers of Playa GP, including re-appointing himself as manager. On October 10, 2008 Touradji, acting for DeepRock, sent a letter to plaintiffs in Texas notifying plaintiffs that he had appointed new managers and accepted new regulations for Playa GP.

On October 15, Touradji and the managers he had appointed removed Beach from control of the partnership, stripping him of his status as a manager and CEO. From the time of the October meeting, plaintiffs contend that Touradji and Deep-Rock have refused to cooperate in the operations of the partnership and “continued in their breaches of their duties to plaintiffs,” including preventing plaintiffs from receiving their fair share of revenue and destroying the remaining value of the partnership.

C. Special Appearance in the Trial Court

Touradji filed a special appearance asserting he is not subject to personal jurisdiction in Texas. Specifically, in his special appearance Touradji contends that he is not subject to specific jurisdiction in Texas because plaintiffs faded to plead sufficient jurisdictional allegations and he did not purposefully avad himself of the privilege of conducting business in Texas. Touradji also asserts his contacts with Texas are not extensive enough to subject him to general jurisdiction. In support of his special appearance, Touradji filed an affidavit in which he avers he is not a Texas resident, does not maintain a place of business in Texas, and does not own real property in Texas. Touradji also states he either made or received approximately 10 telephone calls with people in Texas and visited Texas approximately five times concerning the business of Playa LP.

Personal Jurisdiction and Special Appearance

A. Standard of Review

A legal conclusion concerning the existence of personal jurisdiction is a question of law subject to de novo review, but that conclusion must sometimes be preceded by the resolution of underlying factual *23 disputes. Am. Type Culture Collection Inc. v. Coleman, 83 S.W.3d 801, 805-06 (Tex.2002); BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex.2002). “When ... the trial court does not issue fact findings, we presume that the trial court resolved all factual disputes in favor of its ruling.” Glattly v. CMS Viron Corp., 177 S.W.3d 438

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Cite This Page — Counsel Stack

Bluebook (online)
316 S.W.3d 15, 2010 Tex. App. LEXIS 2590, 2010 WL 1571902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/touradji-v-beach-capital-partnership-lp-texapp-2010.