True Temper Sports, Inc. v. David Kelly

CourtCourt of Appeals of Texas
DecidedJune 20, 2024
Docket09-23-00323-CV
StatusPublished

This text of True Temper Sports, Inc. v. David Kelly (True Temper Sports, Inc. v. David Kelly) 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
True Temper Sports, Inc. v. David Kelly, (Tex. Ct. App. 2024).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

__________________

NO. 09-23-00323-CV __________________

TRUE TEMPER SPORTS, INC., Appellant

V.

DAVID KELLY, Appellee

__________________________________________________________________

On Appeal from the County Court at Law No. 6 Montgomery County, Texas Trial Cause No. 22-12-17076-CV __________________________________________________________________

MEMORANDUM OPINION

This interlocutory appeal pertains to a special appearance wherein Appellant

True Temper Sports, Inc. (“Appellant” or “True Temper”) alleged that the trial court

lacked personal jurisdiction over the third-party claims asserted against it by

Appellee David Kelly. On appeal, True Temper argues that the trial court erred by

denying its special appearance on the basis that it was not verified. We conclude that

the special appearance was sufficiently verified and that, because True Temper’s

contacts with Texas were insufficient to show that its conduct was related to the

1 claims in this lawsuit, the trial court erred by denying the special appearance. We

reverse the trial court’s order denying True Temper’s special appearance and dismiss

David Kelly’s claims against True Temper for lack of personal jurisdiction.

Background

In December of 2022, Plaintiff Kelly Interests, Ltd. (“Kelly Interests”) filed

its original petition against Appellee David Kelly (“Appellee” or “Kelly”) and

against True Temper alleging that the golf club shafts Kelly Interests purchased did

not meet the specifications in the purchase order. 1 True Temper then filed a Special

Appearance and Request to Dismiss it from the lawsuit. On February 21, 2023, Kelly

Interests filed a Notice of Nonsuit Without Prejudice against True Temper. The trial

court signed a Partial Order of Nonsuit as to True Temper without prejudice on

February 23, 2023, leaving only David Kelly as a defendant. After the nonsuit, Kelly

filed a third-party claim against True Temper in a pleading styled as a cross-claim

(hereinafter cross-claim). Kelly alleged that defects in the golf shafts were caused

by True Temper’s actions. Kelly asserted claims against True Temper for breach of

contract, indemnity, negligence, negligent misrepresentation, and attorney’s fees.

1 Kelly Interests’ original petition is not included in our appellate record, and because Kelly Interests is not a party to this appeal, we discuss it only as necessary. Also, True Temper alleges that there is no relationship between Kelly Interests and David Kelly, despite similar names. 2 According to the cross-claim, True Temper manufactures putters used by

miniature golf courses in the United States and in Canada, and Kelly is a

“reseller/wholesaler” who sells golf shafts including but not limited to shafts

manufactured by True Temper. The cross-claim states that True Temper is a

Delaware corporation and Kelly is a resident of Tennessee. According to the cross-

claim, when Kelly Interests ordered golf shafts from Kelly in April of 2022, Kelly

responded that he “did not have []the number of shafts requested or the specific

specifications” that Kelly Interests needed, but that Kelly would contact True

Temper—with which Kelly had an ongoing business relationship—to discuss Kelly

Interests’ requirements. According to the cross-claim, Kelly Interests received “a

very substantial number of True Temper shafts[]” in May of 2022, many of which

were not to specifications.

On June 20, 2023, True Temper filed its Special Appearance and Answer to

Defendant Kelly’s Cross-Claim (“Special Appearance”). True Temper alleges in its

Special Appearance that the trial court did not have personal jurisdiction over True

Temper because

[] True Temper is not a resident of Texas. [] True Temper does not now engage and has not engaged in business with Plaintiff in Texas or committed any tort, in whole or in part, within the state of Texas. [] True Temper does not maintain a place of business in Texas, and has no employees, servants, or agents within the state of Texas.

3 In addition, True Temper contends that Texas courts do not have either general or

specific personal jurisdiction over it because True Temper did not have sufficient

minimum contacts with Texas. True Temper states that it is incorporated in

Delaware and its headquarters are in Memphis, Tennessee, so the requirements for

general personal jurisdiction are not met. In addition, True Temper argues that Texas

courts do not have specific personal jurisdiction over it because “[t]he claims alleged

here do not arise from True Temper’s Texas contacts.”

Kelly filed Defendant/Cross-Claimant, and Third-Party Plaintiff David

Kelly’s Response to Third-Party Defendant True Temper Sports, Inc. Special

Appearance (Response). 2 In his Response, Kelly argues that True Temper’s Special

Appearance was not sworn as required by Rule 120a(1), which rendered the Special

Appearance a general appearance because it was not in compliance with the rule.

Next, Kelly argues that True Temper is amenable to personal jurisdiction in

Texas under the long-arm statute based on its business model and its extensive

business in Texas. According to Kelly, “Texas is one of True Temper’s major

marketplaces[,]” and the True Temper website lists “dozens and dozens of agents,

dealers, retailers, and manufacturers in Texas with whom it does business.” Attached

to its Response is an exhibit listing True Temper authorized dealers in Dallas,

2 Although the response is styled as David Kelly’s Response, therein Kelly alleges that it is filed “with agreement by Kelly Interests, Ltd.[]” 4 Houston, Austin, and San Antonio. Kelly also alleges that True Temper has agents,

dealers, retailers, or manufacturers in other Texas cities, including El Paso, Abilene,

and Tyler. According to Kelly, True Temper’s presence in Texas reflects that True

Temper “‘sought out Texas and the benefits and protections of its laws[]’”3 and it

purposefully availed itself of the privilege of conducting business in Texas such that

True Temper could reasonably anticipate being haled into Texas courts. Kelly argues

that True Temper has at least minimum contacts with Texas.

In addition, Kelly argues in its Response that True Temper’s contacts with

Texas are related to the litigation because “True Temper entered into an agreement

with Kelly Interests through True Temper’s agent, David Kelly[,] to fulfill the order

as specified by Kelly Interests[]” and because “True Temper had care, custody and

control of the shafts shipped to Kelly Interests.”

Kelly argues that the exercise of personal jurisdiction over True Temper

satisfies due process because at one time, it was registered to do business in Texas,

because it would be “surprising” if True Temper representatives never travelled to

Texas to do business, and because the burden on True Temper to defend itself in this

litigation is “de minimis at best[]” due to its already-existing business contacts with

Texas.

3 Quoting Moncrief Oil Int’l Inc. v. OAO Gazprom, 414 S.W.3d 142, 154 (Tex. 2013). 5 Kelly also filed a letter asking the trial court to receive a Supplemental

Exhibit, which Kelly represented as showing “the location of the dealer-agents with

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True Temper Sports, Inc. v. David Kelly, Counsel Stack Legal Research, https://law.counselstack.com/opinion/true-temper-sports-inc-v-david-kelly-texapp-2024.