Tuscano v. Osterberg

82 S.W.3d 457, 2002 Tex. App. LEXIS 2598, 2002 WL 535447
CourtCourt of Appeals of Texas
DecidedApril 11, 2002
Docket08-01-00001-CV
StatusPublished
Cited by43 cases

This text of 82 S.W.3d 457 (Tuscano v. Osterberg) 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
Tuscano v. Osterberg, 82 S.W.3d 457, 2002 Tex. App. LEXIS 2598, 2002 WL 535447 (Tex. Ct. App. 2002).

Opinion

*462 OPINION

SUSAN LARSEN, Justice.

Texas residents Robert and Olga Oster-berg sued New York resident Ronald Tus-cano in Texas for various causes of action associated with the Osterbergs’ claimed ownership interest in a New York corporation. The trial court denied Ronald Tusca-no’s special appearance, from which he brings this interlocutory appeal. Finding no evidence that Texas courts possessed personal jurisdiction over Tuscano in this litigation, we reverse and render.

Facts

In 1977, Ronald Tuscano and Robert Osterberg met in New York to discuss the possibility of doing business together. No written records exist of the partnership which they formed as a result of that meeting. Pursuant to this partnership, Tuscano and Osterberg created a series of Texas corporations over the years to conduct their used clothing enterprise. 1 In 1982, Tuscano formed Tierra Development Corporation, incorporated under the laws of New York and doing business in New York.

In September 1998, Robert and Olga Osterberg filed a declaratory judgment action against Tierra and Tuscano seeking the trial court’s ruling that the Osterbergs owned 50 percent of Tierra’s stock. 2 The Osterbergs also pleaded causes of action for breach of fiduciary duty, breach of the covenant of good faith and fair dealing, civil conspiracy, breach of contract, promissory estoppel, fraud, conversion, and intentional infliction of emotional distress. Tuscano filed a special appearance alleging the trial court had no personal jurisdiction over him.

Immediately prior to hearing on the special appearance, the Osterbergs non-suited Tierra. The trial court denied the special appearance, retained jurisdiction over Tus-cano, and filed Findings of Fact and Conclusions of Law in support of its decision. The trial court found Tuscano conducted substantial business activities in the State of Texas from 1982 through 2000, and had continuous and systematic contacts with Texas. Its ruling thus eliminated specific jurisdiction as a basis for personal jurisdiction over Tuscano. 3 The trial court based its long-arm analysis on Tex. Civ. PRAC. & Rem.Code Ann. § 17.042(2), that is that Tuscano was alleged to have committed a tort in Texas. Tuscano appeals in five interrelated points of error.

Standards of Review

A defendant challenging a court’s exercise of personal jurisdiction through a special appearance carries the burden of negating all bases of personal jurisdiction. Kawasaki Steel Corp. v. Middleton, 699 S.W.2d 199, 203 (Tex.1985); Siskind v. Villa Found, for Educ., Inc., 642 S.W.2d 434, 438 (Tex.1982); Nikolai v. Strate, 922 S.W.2d 229, 236 (Tex.App.-Fort Worth 1996, writ denied); Hayes v. Wissel, 882 S.W.2d 97, 99 (Tex.App.-Fort Worth 1994, *463 no writ). Where, as here, a complete reporter’s record is filed, the trial court’s factual findings are not conclusive and an appellant may challenge the sufficiency of the evidence. Roberson v. Robinson, 768 S.W.2d 280, 281 (Tex.1989). Where such points are raised, the standard of review to be applied is the same as that to be applied in the review of jury findings or a trial court’s findings of fact. Id. 4

In 1997, the Texas legislature expanded the jurisdiction of the appellate courts to permit the interlocutory appeal of a trial court’s decision to deny a special appearance. See Tex. Civ. PRAc. & Rem. Code Ann. § 51.014(a)(7) (Vernon Supp. 2002). Since then, this Court along with other intermediate appellate courts, has adopted a factual sufficiency standard of review without discussing the reasons for doing so. See MacMorran v. Wood, 960 S.W.2d 891, 894-95 (Tex.App.-El Paso 1997, writ denied); Nikolai, 922 S.W.2d at 236; Hall, Standards of Review in Texas, 29 St. Mary’s L.J. 351, 374-77 (1998). Only the San Antonio Court of Appeals has chosen differently, adopting an abuse of discretion analysis, reasoning that “[tjrial court decisions derived from both factual determinations and legal conclusions are generally reviewed for an abuse of discretion,” and upon interlocutory review at least, this is the standard that should be applied. Magnolia Gas. Co. v. Knight Equipment & Mfg. Corp., 994 S.W.2d 684, 689 (Tex.App.-San Antonio 1998, no pet.). For the reasons set out below, we now reject both factual sufficiency and abuse of discretion review, concluding instead that legal sufficiency is the best fit for reviewing the ruling on a special appearance on interlocutory appeal.

First, a factual sufficiency review normally results in a remand to the trial court for further proceedings. See Elias v. Mr. Yamaha, Inc., 33 S.W.3d 54, 64 n. 6 (Tex. App.-El Paso 2000, no pet.). Nevertheless, although specifically engaging in such a review, this Court has reversed and rendered judgment finding a lack of personal jurisdiction, as have other courts. In re Estate of Judd, 8 S.W.3d 436, 444-45 (Tex. App.-El Paso 1999, no pet.); Valsangiacomo v. American Juice Import, Inc., 35 S.W.3d 201, 210 (Tex.App.-Corpus Christi 2000, no pet.) (reversing and dismissing case for lack of personal jurisdiction). We know of only one other extremely limited situation where reversal based on factual sufficiency review results in a rendition or dismissal, rather than remand. See In re Doe, 19 S.W.3d 249, 253 (Tex.2000) (factual sufficiency is appropriate standard of review in parental notification appeals, and court of appeals’ judgment rendered upon reversal). If we wish to maintain consistency of review sought with relief obtained, we believe factual sufficiency is not the proper method of analyzing special appearances.

A second problem inherent in using a factual sufficiency review for special appearance review is the question of Supreme Court jurisdiction. The Texas Constitution provides that the decisions of the courts of appeals “shall be conclusive on all questions of fact brought before them on appeal or error.” Tex. Const, art. V, § 6 (amended 1891). This provision restricts the jurisdiction of the Texas Supreme Court to questions of law. The absence or conclusiveness of evidence is a legal question within the ambit of the Supreme Court, but the weight and preponderance of evidence is a factual question within the *464 exclusive jurisdiction of the courts of appeals. See Universe Life Ins. Co. v. Giles, 950 S.W.2d 48, 73 (Tex.1997) (Hecht, J. concurring); Continental Coffee Products Co. v. Cazarez, 937 S.W.2d 444, 450 (Tex. 1996).

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Bluebook (online)
82 S.W.3d 457, 2002 Tex. App. LEXIS 2598, 2002 WL 535447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tuscano-v-osterberg-texapp-2002.