Scotty Moring v. Inspectorate America Corporation , 529 S.W.3d 145 ( 2017 )


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  • Affirmed and Opinion filed July 25, 2017.
    In The
    Fourteenth Court of Appeals
    NO. 14-16-00898-CV
    SCOTTY MORING, Appellant
    V.
    INSPECTORATE AMERICA CORPORATION, Appellee
    On Appeal from the 269th District Court
    Harris County, Texas
    Trial Court Cause No. 2016-26355
    OPINION
    In this appeal of a special-appearance denial, we address personal
    jurisdiction in the context of allegations that a non-resident former employee
    wrongfully acquired, used, or transmitted alleged confidential information as part
    of a scheme to solicit and steal a Texas company’s Texas-based customers. The
    Texas company alleges that the former employee took the information while
    working in its Louisiana office, went to work for a competitor in Louisiana, and
    then used the ill-gotten information to compete with the company in Texas.
    Though the alleged theft occurred in Louisiana, the Texas company alleges the
    former employee solicited business from Texas customers using the stolen
    information and later performed work for those customers in Texas. We affirm
    the trial court’s denial of the employee’s special appearance.
    FACTUAL AND PROCEDURAL BACKGROUND
    Appellant Scotty Moring was working in Louisiana for Waterdraws, LLC,
    in 2012, when the company’s owner Robert LeJeune sold the company’s assets to
    Inspectorate America Corporation. LeJeune, Moring, and other employees then
    began working for Inspectorate. As a condition of his continued employment,
    Moring signed a document entitled, “Employee Invention Assignment and
    Confidentiality Agreement” in which he agreed not to disclose to anyone
    Inspectorate’s confidential information and not to remove, during employment or
    upon termination of employment, any records that contain confidential
    information.    The agreement defines “confidential information” broadly to
    encompass strategic information.        Strategic information includes “business
    strategies, pricing, billing information, actual or potential customer lists,
    contracts, contract terms and conditions, sale lists, process descriptions, financial
    data, marketing plans . . . trade secrets” as well as other items.
    Moring’s Employment with Inspectorate
    Between 2012 and 2014, Inspectorate based Moring out of its Houston,
    Texas office. Moring prepared bids and quotes that Inspectorate used to get work
    from Texas customers. During that time, Moring also performed waterdraw
    calibrations, pipe prover inspections, pipe prover rebuilds, and small volume
    rebuilds for customers located in Texas. These tasks required Moring’s physical
    presence in Texas. Moring then moved back to Louisiana, where he continued
    working for Inspectorate until 2015.
    2
    New Employment with Intertek
    In 2015, LeJeune, Moring, and at least three other employees terminated
    their employment with Inspectorate and began working for Inspectorate’s
    competitor, Intertek USA, Inc. Inspectorate alleges that before he left, Moring
    took confidential information, including customer lists and base pricing.
    While working for Intertek, Moring completed waterdraw calibrations, pipe
    prover calibrations, and pipe prover rebuilds for Texas customers. Moring also
    generated quotes and bids for customers. Many of the Texas customers for whom
    Moring was performing work and generating bids were the same customers for
    whom Moring had completed work on Inspectorate’s behalf.
    Inspectorate’s Claims
    Inspectorate filed suit against Intertek, LeJeune, Moring, and the other
    employees who left Inspectorate to go work for Intertek, asserting a variety of
    claims.     Against    Moring,    Inspectorate   asserted   breach    of contract,
    misappropriation of trade secrets and confidential information, breach of fiduciary
    duty, tortious interference with existing contracts and prospective business
    relationships, civil conspiracy, unjust enrichment, and unfair competition.
    Special Appearances
    LeJeune, Moring, and the other employees (Rory Quebedeaux, Kenneth
    Soileau, and Curt Bowers) filed a special appearance that they later amended. In
    the First Amended Special Appearance, the movants asserted that they were not
    subject to suit in Texas. Moring filed an affidavit in which he averred that he is a
    Louisiana resident, employed in Louisiana. Moring stated that he worked at an
    Inspectorate office in Texas between 2012 and 2014, but that he returned to
    Louisiana and was working in Louisiana at the time of the alleged conduct that is
    3
    the subject of Inspectorate’s claims. Inspectorate nonsuited its claims against two
    of the employees (Quebedeaux and Soileau).
    In its response to the First Amended Special Appearance, Inspectorate
    asserted that all of the individual defendants purposefully availed themselves of
    the privilege of conducting business in Texas by directing marketing efforts into
    Texas in the hope of soliciting sales and performing the same services for Texas
    customers on behalf of Intertek as they had done for those customers on behalf of
    Inspectorate.
    The trial court granted the special appearances as to Moring and Bowers
    and denied LeJeune’s        special appearance.        Inspectorate moved for
    reconsideration, arguing that Moring’s attempt to exploit business opportunities
    in Texas constituted purposeful availment. Specifically, Inspectorate alleged that
    Moring misappropriated confidential information and used it as part of a scheme
    to solicit and steal the Texas company’s Texas-based customers. Inspectorate
    argued that liability rests on whether Moring wrongfully acquired, used, or
    transmitted the alleged trade secrets. The trial court granted rehearing as to
    Moring and denied rehearing as to Bowers. Moring now appeals the trial court’s
    denial of his special appearance.
    ISSUES AND ANALYSIS
    Moring raises two appellate issues: (1) Inspectorate waived its objection to
    the trial court’s order granting Moring’s special appearance, and (2) Moring is not
    subject to personal jurisdiction in Texas.
    A. Did Inspectorate waive its right to seek reconsideration of the order
    granting Moring’s special appearance?
    Moring asserts that Inspectorate waived its objection to the trial court’s
    ruling on his special appearance by failing to take an interlocutory appeal from
    4
    the order granting the special appearance. The Supreme Court of Texas has not
    addressed this issue, and intermediate appellate courts in Texas are split as to
    whether a party waives its right to appellate review of an order granting or denying
    a special appearance if it fails to file an interlocutory appeal of that order. Some
    courts find waiver when a party fails to take an immediate appeal. See, e.g., GJP,
    Inc. v. Ghosh, 
    251 S.W.3d 854
    , 866–67 (Tex. App.—Austin 2008, no pet.); Matis
    v. Golden, 
    228 S.W.3d 301
    , 305 (Tex. App.—Waco 2007, no pet.) (holding a
    party waives its right to appellate review by failing to immediately appeal a
    special appearance order). But, we do not. Under our precedent, a party does not
    waive its right to appellate review of an order granting or denying a special
    appearance by failing to take an interlocutory appeal of that order. See DeWolf v.
    Kohler, 
    452 S.W.3d 373
    , 383 (Tex. App.—Houston [14th Dist.] 2014, no pet.).
    Even if Inspectorate had waived appellate review of the trial court’s initial
    order granting Moring’s special appearance, that waiver would not prohibit the
    trial court from reconsidering its initial order. And, that is precisely what
    happened. A trial court holds plenary power over its judgment until the judgment
    becomes final. Fruehauf Corp. v. Carrillo, 
    848 S.W.2d 83
    , 84 (Tex. 1993) (per
    curiam). A party’s failure to file an interlocutory appeal from an interlocutory
    order does not make that order final. See Lehman v. Har-Con Corp., 
    39 S.W.3d 191
    , 206 (Tex. 2001). The trial court holds continuing authority to reconsider its
    interlocutory orders while it has plenary power over the case. See Fruehauf, 848
    S.W.2d at 84.
    Moring has not cited any authority suggesting Inspectorate waived its
    ability to ask the trial court to reconsider the denial of Moring’s special
    appearance while the trial court had plenary power over the case. The order
    granting Moring’s special appearance was interlocutory because it did not resolve
    5
    all claims between and among all parties, so the trial court still held plenary power
    over the case when it reconsidered its order granting the special appearance. See
    Lehman, 39 S.W.3d at 206; Fruehauf, 848 S.W.3d at 84. The trial court had
    plenary power to issue the order denying Moring’s special appearance and
    Inspectorate did not waive its right to ask the trial court to reconsider. See
    Fruehauf, 848 S.W.2d at 84. We overrule Moring’s first issue.
    B. Does the trial court have personal jurisdiction over Moring?
    In Moring’s second issue, he asserts the trial court erred in denying his
    special appearance.
    Standard of Review
    Whether Moring is subject to personal jurisdiction in Texas is a question of
    law, which we review de novo. See BMC Software Belgium, N.V. v. Marchand,
    
    83 S.W.3d 789
    , 794 (Tex. 2002). When the trial court does not issue findings of
    fact and conclusions of law, we imply all relevant facts necessary to support the
    judgment that are supported by evidence. M&F Worldwide Corp. v. Pepsi-Cola
    Metro. Bottling Co., Inc., — S.W.3d — ,—, 
    2017 WL 889938
    , at *5 (Tex. Mar.
    3, 2017).
    The exercise of personal jurisdiction in Texas state courts turns on both
    federal and state law. Searcy v. Parex Res., Inc., 
    496 S.W.3d 58
    , 66 (Tex. 2016).
    Courts may exercise personal jurisdiction over a defendant when (1) the Texas
    long-arm statute grants jurisdiction, and (2) the exercise of jurisdiction comports
    with federal and state constitutional guarantees of due process. 
    Id.
     The long-arm
    statute allows Texas courts to exercise personal jurisdiction as far as the federal
    constitutional requirements of due process will permit, so Texas courts may
    exercise personal jurisdiction as long as doing so comports with federal
    constitutional guarantees of due process. 
    Id.
    6
    The long-arm statute allows the exercise of personal jurisdiction over a
    nonresident defendant who contracts with a Texas resident or commits a tort “in
    whole or in part” in this state. See 
    Tex. Civ. Prac. & Rem. Code Ann. § 17.042
    (1),
    (2) (West, Westlaw through 2015 R.S.). The plaintiff bears the initial burden of
    pleading allegations sufficient to confer jurisdiction under the long-arm statute.
    See Moncrief Oil Int’l, Inc. v. OAO Gazprom, 
    414 S.W.3d 142
    , 149 (Tex. 2013).
    Inspectorate met this initial burden. So, the burden then shifted to Moring to
    negate all potential bases for personal jurisdiction. See 
    id.
    A trial court’s exercise of personal jurisdiction comports with due process
    when (1) the defendant has established minimum contacts with the forum state
    and (2) asserting personal jurisdiction over the defendant does not offend
    traditional notions of fair play and substantial justice. Searcy, 496 S.W.3d at 66.
    A defendant’s contacts with the forum may give rise to either general or specific
    jurisdiction.   M&F Worldwide Corp., 
    2017 WL 889938
    , at *5.                  Specific
    jurisdiction exists when the claims in question arise from or relate to the
    defendant’s purposeful contacts with Texas. See Moki Mac River Expeditions v.
    Drugg, 
    221 S.W.3d 569
    , 575–76 (Tex. 2007). For Moring’s contacts with Texas
    to support an exercise of specific jurisdiction, there must be a substantial
    connection between Moring’s purposeful contacts with Texas and the operative
    facts of the litigation. See. id. at 585. If we determine Moring had sufficient
    minimum contacts with Texas and the contacts are substantially connected to the
    operative facts of the litigation, we must ensure the exercise of personal
    jurisdiction does not offend traditional notions of fair play and substantial justice.
    See Fjell Tech. Grp. v. Unitech Int’l, Inc., No. 14-14-00255-CV, 
    2015 WL 457805
    , at *9 (Tex. App.—Houston [14th Dist.] 2015, pet. denied) (mem. op.).
    7
    Jurisdictional Allegations and Evidence
    In its live petition, Inspectorate makes the following allegations:
     Moring is a resident of Calcasieu Parish, Louisiana.
     Moring is amenable to service of process in Texas because he
    entered into a contract with Inspectorate and both parties are to
    perform all or part of the contract in Texas. Therefore, Moring
    engaged in business in Texas and this lawsuit arises out of that
    business.
     In April 2012, Inspectorate acquired Waterdraws, LLC, a
    Louisiana company engaged in the business of providing prover
    inspection, prover reconditioning, and waterdraw calibration
    services.
     Moring was a supervisor for Waterdraws, LLC before the
    acquisition and stayed on after the acquisition.
     During Moring’s employment with Inspectorate, Inspectorate
    gave Moring access to its confidential, proprietary, and trade
    secret information, including information regarding customer
    pricing, rates, contacts, preferences, needs, and inventory,
    bid/quotes, marketing, budgets, sales, employee compensation,
    technology, and other commercial and operational information.
     Moring signed a confidentiality agreement as a condition of his
    employment. The agreement prohibited Moring from disclosing
    Inspectorate’s confidential information, using the confidential
    information for himself or anyone else, and removing any records
    containing confidential information.
     Moring resigned from employment in December 2015, and began
    working for Inspectorate’s competitor, Intertek.
     Moring took confidential information upon his departure from
    Inspectorate.
     Moring is using and/or disclosing Inspectorate’s confidential
    information by continuing to perform the exact same services on
    behalf of Intertek for the exact same customers he serviced while
    employed by Inspectorate.
    Moring attached evidence to his special appearance including an affidavit
    in which Moring made the following averments:
    8
     Moring was an at-will employee of Inspectorate.
     Moring does not have an agent for service in Texas.
     Moring did not engage in business in Texas while he was
    employed by Inspectorate except as an employee of Inspectorate
    and Moring has not engaged in any business in Texas since
    leaving Inspectorate except as an employee of Intertek.
     Moring did not engage in the conduct Inspectorate complained of
    in its live petition.
     Moring denied committing any torts in Texas.
    In its response to Moring’s special appearance, Inspectorate presented
    evidence showing the following:
     Moring lived in Texas while working for Inspectorate between
    2012 and 2014.
     While working for Inspectorate, Moring performed waterdraw
    calibrations on behalf of numerous Texas-based customers
    including ExxonMobil and Centurion Pipeline.
     After leaving Inspectorate, and while working for Intertek,
    Moring performed waterdraw calibrations for ExxonMobil and
    Centurion Pipeline in Texas.
     While working for Inspectorate, Moring performed pipe prover
    inspections for two customers, including Magellan. While
    working for Intertek, Moring performed a pipe prover inspection
    in Texas for Magellan.
     While working for Inspectorate, Moring prepared bids and
    generated quotes for customers including ExxonMobil and
    Magellan. While working for Intertek, Moring also prepared bids
    and generated quotes for Texas customers including ExxonMobil
    and Magellan.
     Moring contacted ExxonMobil and Magellan to bid for work
    while working for Intertek.
     Moring made a sales call to JP Energy in Barnhart, Texas, to
    solicit work for Intertek.
     Moring discussed base pricing of products/services with
    representatives of Texas-based Centurion.
    9
    Foreseeability and Purposeful Availment
    Although not determinative, foreseeability stands as an important
    consideration in deciding whether Moring purposefully availed himself of the
    privilege of conducting activities within Texas. See BMC Software, 83 S.W.3d at
    795. Moring should not be subject to the jurisdiction of Texas courts based upon
    random, fortuitous, or attenuated contacts. See id. In the context of specific
    jurisdiction, the following principles guide a purposeful-availment inquiry: (1) the
    relevant contacts are those of the defendant, and the unilateral activity of another
    person or a third party is not pertinent; (2) the contacts that establish purposeful
    availment must be purposeful rather than random, fortuitous, isolated, or
    attenuated; and (3) the defendant must seek some benefit, advantage, or profit by
    availing himself of the jurisdiction. Moki Mac River Expeditions, 221 S.W.3d at
    575. In conducting the minimum-contacts analysis, we focus on the quality and
    nature of the defendant’s contacts rather than the number. Retamco Operating,
    Inc. v. Republic Drilling Co., 
    278 S.W.3d 333
    , 339 (Tex. 2009).
    Moring worked in Texas for two years, performing work for a number of
    customers. After returning to Louisiana, Moring reached out to Texas customers
    to solicit business opportunities.    Moring returned to Texas to conduct the
    business. Because Moring initiated contact with Texas customers and then
    traveled to Texas to perform work for those customers in Texas, the trial court
    reasonably could have concluded that Moring’s contacts with Texas were
    purposeful, and not random or fortuitous. See 
    id.
     This court held in Fjell that
    nonresident parties purposefully contacted Texas when they initiated contact with
    Texas by sending marketing emails into Texas and communicated via a video-
    conferencing application, e-mail, and in-person meetings with Texas-based
    employees. See 
    2015 WL 457805
    , at *6. Similarly, Moring initiated contact with
    10
    Texas customers to get business from those customers. Moring profited from
    these contacts when he actually landed the business and came to Texas to get the
    work done. Based on these facts, the trial court reasonably could have found
    foreseeability, concluding that Moring could have anticipated that any disputes
    arising out of or related to his Texas contacts might be heard by a Texas court.
    See id. at *7.
    In determining that Moring has sufficient minimum contacts with Texas,
    we reject as misplaced Moring’s argument that Inspectorate did not provide any
    evidence that Moring actually did anything wrong. Moring cites RSM Prod. Corp.
    v. Global Petroleum Group, Ltd. and Baker Hughes Inc. v. Homa and for the
    proposition that Inspectorate had to provide evidence of Moring’s bad acts to
    show the nexus between the facts of the claims and Moring’s contacts with Texas.
    See RSM Production Corp. v. Global Petroleum Grp, Ltd., 
    507 S.W.3d 383
     (Tex.
    App.—Houston [1st Dist.] 2016, pet. denied); Baker Hughes, Inc. v. Homa, No.
    H-11-3757, 
    2013 WL 5775636
     (S.D. Tex. Oct. 25, 2013). Neither Baker Hughes
    nor RSM are binding precedents on this court. See Glassman v. Goodfriend, 
    347 S.W.3d 772
    , 781 n.8 (Tex. App.—Houston [14th Dist.] 2011, pet. denied). We
    distinguish both cases.
    In RSM, our Houston sister court held that the defendant, Global, was not
    subject to Texas jurisdiction because “RSM did not allege any facts or adduce any
    evidence indicating Global acquired [the alleged trade secret] in Texas. In fact,
    Global’s unrebutted jurisdictional evidence established that Global obtained [the
    alleged trade secret] from the Grenadian government in Grenada.” See RSM, 507
    S.W.3d at 394. Accordingly, the RSM court concluded that “to the extent the
    defendant committed a tort . . . . no pleadings or evidence” indicated that it
    occurred “even in part” in Texas. See id. In rejecting the plaintiff’s argument that
    11
    the “subject-matter” of the defendant’s contractual relationships with third-parties
    required the defendant to disseminate trade secrets, the RSM court concluded that
    jurisdictional evidence showed that the defendant’s contacts with the third parties
    did not involve the alleged trade secrets. See id. The RSM court concluded that
    the analysis of these contacts was not an argument on the merits. Unlike in RSM,
    where the appellate court analyzed the contacts with the third parties to see if those
    contacts involved the data in question, our record shows that Moring contacted
    Texas entities and that the subject of those contacts related to the allegedly
    misappropriated information.
    In Baker Hughes, the plaintiff alleged that former employees
    misappropriated trade secrets and used those trade secrets to formulate a quote
    sent to a Texas company. See 
    2013 WL 5775636
    , at *9. The federal district court
    found the court lacked personal jurisdiction over two defendant entities because
    the employees were acting on behalf of another entity when the former employees
    sent the quote. See id. at *15. The federal district court stated that even if the
    former employees had been acting on behalf of the defendant, the record did not
    contain evidence that the former employees used the trade secrets in formulating
    the quote. See id. Even if this statement is an alternative holding, the federal
    district court in Baker Hughes was following the federal procedural rules to
    determine how proof of sufficient contacts must be made.             See id. at *10.
    Although Texas courts use the federal due-process standard in analyzing
    minimum contacts, Texas courts do not use the federal procedural rules in
    determining how the proof must be made. Clark v. Noyes, 
    871 S.W.2d 508
    , 511
    (Tex. App.—Dallas 1994, no pet.). In federal court, the plaintiff shoulders the
    burden of presenting a prima facie showing of personal jurisdiction. See ITL Int’l,
    Inc. v. Constenla, S.A., 
    669 F.3d 493
    , 496 (5th Cir. 2012). By contrast, in Texas
    state court, once the plaintiff pleads sufficient allegations to satisfy the long-arm
    12
    statute, the defendant shoulders the burden of proving the lack of personal
    jurisdiction. See Moncrief, 414 S.W.3d at 149. In Baker Hughes, the plaintiff did
    not meet its burden to make a prima facie showing of jurisdiction. See 
    2013 WL 5775636
    , at *10. In today’s case, Moring had the burden to negate jurisdiction
    because Inspectorate pled allegations sufficient to bring the case within the scope
    of the long-arm statute. See Moncrief, 414 S.W.3d at 149.
    At this stage in the litigation, we do not ask merits-of-the-case questions
    such as whether Inspectorate has shown that Moring breached a contract,
    misappropriated confidential information, or committed any of the conduct
    alleged in the petition. See Cornerstone Healthcare Grp. Holding, Inc. v. Nautic
    Mgmt. VI, L.P., 
    493 S.W.3d 65
    , 73 (Tex. 2016); Fjell, 
    2015 WL 457805
    , at *7
    (stating, “[w]e also reject [the nonresident defendant’s] argument that the
    evidence is insufficient to prove they committed the torts alleged by [the plaintiff].
    The argument relates to the merits of [the plaintiff’s] claims . . . . We cannot
    consider the merits of [the plaintiff’s] claims at the jurisdictional stage”). Instead,
    our focus is on the Texas contacts and their connection to Inspectorate’s
    allegations.
    Relationship Between Claims and Forum Contacts
    While specific jurisdiction might require us to analyze jurisdictional
    contacts on a claim-by-claim basis, we need not do so if all of the claims arise
    from the same forum contacts. See Moncrief, 414 S.W.3d at 150–51; Yujie Ren
    v. Anu Res., LLC, 
    502 S.W.3d 840
    , 849 (Tex. App.—Houston [14th Dist.] 2016,
    no pet.). Inspectorate has asserted claims against Moring for breach of contract,
    misappropriation of trade secrets, breach of fiduciary duty, tortious interference
    with contract, civil conspiracy, unjust enrichment, and unfair competition.
    Inspectorate claims Moring:
    13
    (1) breached his contract by disclosing or inevitably disclosing confidential
    information,
    (2) misappropriated trade secrets by using or disclosing, or threatening to
    use or disclose, trade secrets,
    (3) breached his fiduciary duty of confidence by using and disclosing
    confidential information, and breached his fiduciary duty of loyalty while
    still employed by Inspectorate by conspiring and making plans to compete
    with it using its own confidential information,
    (4) tortiously interfered with relationships by inducing customers to leave
    Inspectorate using trade secrets and confidential information,
    (5) engaged in a civil conspiracy to misappropriate trade secrets and
    compete unfairly,
    (6) obtained unjust enrichment from the conduct asserted in the petition,
    and
    (7) engaged in unfair competition by conducting himself in an illegal and
    tortious way.
    In the trial court and in their appellate briefs, both parties treat these claims
    as arising from the same forum contacts. In its live pleading, Inspectorate pled
    the jurisdictional facts listed above and then asserted its claims. Moring addressed
    all of Inspectorate’s claims together in his special appearance as did Inspectorate
    in its response to the special appearance. Each of Inspectorate’s claims stems
    from allegations that Moring improperly obtained and used Inspectorate’s
    confidential information or made plans to improperly obtain and use
    Inspectorate’s confidential information to compete with Inspectorate. Under
    these circumstances, we need not analyze Moring’s minimum contacts on a claim-
    by-claim basis. See Moncrief, 414 S.W.3d at 150–51; Yujie Ren, 502 S.W.3d at
    849.
    We must determine whether Inspectorate’s claims arise from or relate to
    Moring’s purposeful contacts with Texas. Moki Mac River Expeditions, 221
    S.W.3d at 575–76. This standard requires “a substantial connection between
    14
    those contacts and the operative facts of the litigation.” Id. at 585. Inspectorate
    alleges that Moring breached his employment contract and his fiduciary duty by
    using and disclosing Inspectorate’s confidential information, that Moring
    misappropriated Inspectorate’s trade secrets by disclosing or threatening to
    disclose them, and that by doing so, Inspectorate engaged in unfair competition.
    Inspectorate also alleges that Moring colluded to take Inspectorate’s trade secrets
    and interfered with Inspectorates’ business relationships. The facts surrounding
    Moring’s alleged use of Inspectorate’s confidential information to get business in
    Texas from Texas consumers of Inspectorate’s services comprise the crux of
    Moring’s purposeful contacts with Texas and will be the focus of Inspectorate’s
    claims against Moring at trial. We hold that these claims arise from or relate to
    Moring’s purposeful Texas contacts and that these contacts have a substantial
    connection with the operative facts of the litigation. See Cornerstone Healthcare
    Grp. Holding, Inc., 493 S.W.3d at 73–74; Fjell, 
    2015 WL 457805
    , at *7–9.
    Fair Play and Substantial Justice
    In evaluating whether exercising jurisdiction offends traditional notions of
    fair play and substantial justice, we consider: (1) the burden on the defendant, (2)
    the interests of the forum in adjudicating the dispute, (3) the plaintiff’s interest in
    getting convenient and effective relief, (4) the international judicial system’s
    interest in obtaining the most efficient resolution of controversies, and (5) the
    shared interests of the several nations in furthering fundamental substantive social
    policies. Spir Star AG v. Kimich, 
    310 S.W.3d 868
    , 879 (Tex. 2010). The
    defendant must present a compelling case that the presence of some consideration
    would render jurisdiction unreasonable. 
    Id.
     Only in rare cases will the exercise
    of personal jurisdiction not comport with fair play and substantial justice when
    the nonresident defendant purposefully has established minimum contacts with
    15
    the forum state. See Guardian Royal Exch. Assr., Ltd. v. English China Clays,
    P.L.C., 
    815 S.W.2d 223
    , 231 (Tex. 1991).
    Moring argues that subjecting him to jurisdiction in Texas would burden
    him because he will have to travel. But, traveling burdens all nonresidents. See
    Moncrief, 414 S.W.3d at 155. Distance alone cannot defeat jurisdiction —at least
    not ordinarily. Id. Louisiana borders Texas and Moring has managed to come to
    neighboring Texas many times for work. The burden of litigating in Texas does
    not rise to the level of defeating jurisdiction. See id. Inspectorate’s allegations
    that Moring committed torts in Texas against a Texas resident give Texas a vital
    interest in adjudicating the dispute. See id.    Moring argues that Louisiana is a
    better forum for the plaintiff to get relief. He claims Louisiana allows for the most
    efficient resolution of controversies because Inspectorate could sue all parties in
    Louisiana. But, Inspectorate chose to file suit in Texas and Texas is a convenient
    forum for a Texas plaintiff. See Barker v. Lescroart, No. 14-06-00125-CV, 
    2007 WL 445282
    , at *6 (Tex. App.—Houston [14th Dist.] Feb. 13, 2007, no pet.)
    (mem. op.). After weighing all the relevant factors, we conclude that exercising
    personal jurisdiction over Moring would not offend traditional notions of fair play
    and substantial justice. See Moncrief, 414 S.W.3d at 155.
    Inspecrorate’s claims arise from or relate to Moring’s purposeful Texas
    contacts, and a substantial connection exists between these contacts and the
    operative facts of the litigation. See Fjell, 
    2015 WL 457805
     at *7–9. Exercising
    personal jurisdiction over Moring does not offend traditional notions of fair play
    and substantial justice. See Moncrief, 414 S.W.3d at 155. For these reasons, the
    trial court did not err in denying Moring’s special appearance. We overrule
    16
    Moring’s second issue.
    CONCLUSION
    Inspectorate did not waive its right to ask the trial court to reconsider the
    interlocutory order granting Moring’s special appearance, so Moring’s waiver
    argument affords no basis for appellate relief. Because Texas courts may exercise
    personal jurisdiction over Moring in this case, the trial court did not err in
    reconsidering its order granting Moring’s special appearance and denying the
    special appearance. Having found no error, we affirm the trial court’s denial of
    Moring’s special appearance.
    /s/    Kem Thompson Frost
    Chief Justice
    Panel consists of Chief Justice Frost and Justices Jamison and Busby.
    17
    

Document Info

Docket Number: NO. 14-16-00898-CV

Citation Numbers: 529 S.W.3d 145

Judges: Busby, Frost, Jamison

Filed Date: 7/25/2017

Precedential Status: Precedential

Modified Date: 11/14/2024