Osvaldo Rodriguez Borunda and Editora Paso Del Norte, S.A. De C v. v. Free and Sovereign State of Chihuahua ( 2021 )


Menu:
  •                                                                         ACCEPTED
    08-21-00135-CV
    EIGHTH COURT OF APPEALS
    EL PASO, TEXAS
    11/2/2021 1:41 PM
    08-21-00135-CV                                 ELIZABETH G. FLORES
    CLERK
    NO. 08-21-00135-CV
    IN THE EIGHTH COURT OF APPEALS      FILED IN
    8th COURT OF APPEALS
    EL PASO, TEXAS          EL PASO, TEXAS
    11/2/2021 1:41:02 PM
    ELIZABETH G. FLORES
    OSVALDO RODRIGUEZ BORUNDA             AND       Clerk
    EDITORA PASO DEL NORTE, S.A. DE C.V.
    Appellants
    v.
    FREE AND SOVEREIGN STATE OF CHIHUAHUA
    Appellee
    ON APPEAL FROM THE 448TH DISTRICT COURT
    EL PASO COUNTY, TEXAS
    CAUSE NO. 2020DCV0628
    APPELLANTS’ REPLY BRIEF
    Harrel L. Davis III
    State Bar No. 05567560
    Gordon Davis Johnson & Shane, P.C.
    4695 N. Mesa, Suite 100
    El Paso, Texas 79912
    (915) 545-1133
    Fax (915) 545-4433
    hdavis@eplawyers.com
    ORAL ARGUMENT REQUESTED
    TABLE OF CONTENTS
    TABLE OF CONTENTS ....................................................................................... ii
    INDEX OF AUTHORITIES ................................................................................. iii
    Cases .............................................................................................................. iii
    Other Authorities ......................................................................................... iv
    STATEMENT OF FACTS ......................................................................................1
    ARGUMENT ............................................................................................................5
    PRAYER .................................................................................................................13
    CERTIFICATE OF COMPLIANCE ..................................................................14
    CERTIFICATE OF SERVICE ............................................................................15
    APPENDIX .............................................................................................................16
    ii
    INDEX OF AUTHORITIES
    Cases
    Am. Type Culture Collection, Inc. v. Coleman,
    
    83 S.W.3d 801
    , 806 (Tex. 2002) ............................................................................. 5
    Asahi Metal Indus. Co. v. Superior Court of Cal.,
    
    480 U.S. 102
    , 114, 
    107 S. Ct. 1026
    , 
    94 L. Ed. 2d 92
     (1987) ................................ 12
    BMC Software Belg. N.V. v. Marchand,
    
    83 S.W.3d 789
    , 795, 797 (Tex. 2002) ................................................................. 5, 6
    Bristol-Myers Squibb Co. v. Superior Court,
    __ U.S. __, 
    137 S. Ct. 1773
     (2017) ......................................................................... 8
    Burger King Corp. v. Rudzewicz,
    
    471 U.S. 462
    , 475-476 (1985). ................................................................................ 6
    Daimler AG v. Bauman,
    
    571 U.S. 117
    , 122; 
    134 S. Ct. 746
    , 754 (2014) ................................................... 6, 7
    Guardian Royal Exch. Assurance, Ltd. v. English China Clays, P.L.C.,
    
    815 S.W.2d 223
    , 229, 231 (Tex. 1991) ................................................................. 11
    Int’l Shoe Co. v. Washington,
    
    326 U.S. 310
    , 316 (1945) ...................................................................................... 10
    Keeton v. Hustler Magazine, Inc.,
    
    465 U.S. 770
    , 776 (1984) ...................................................................................... 11
    Michel v. Rocket Eng'g Corp.,
    
    45 S.W.3d 658
    , 683 (Tex. App.—Fort Worth 2001, no pet.) ............................... 12
    Michiana East Livin’ Country, Inc. v. Holten,
    
    168 S.W.3d 777
    , 785 (Tex. 2005) ........................................................................... 7
    Moncrief Oil Int’l v. OAO Gazprom,
    
    414 S.W.3d 142
    , 150, 154-155, 158 (Tex. 2013)....................................6, 8, 10, 11
    iii
    Spir Star AG v. Kimich,
    
    310 S.W.3d 868
    , 872, 878-79 (Tex. 2010)..................................................7, 10, 11
    Other Authorities
    Tex. Civ. Prac. & Rem. Code Ann. §17.042 ............................................................. 5
    4 Charles Alan Wright & Arthur R. Miller
    Federal Practice and Procedure § 1067.5 (3d ed. 2002) ......................................... 8
    Record References
    The following record references will be used in Appellants’ Reply Brief:
    Clerk’s Record…………………………………………………………CR [Page]
    iv
    STATEMENT OF FACTS
    It appears from its Brief that Appellee has figured out that it has sued the
    wrong entity (assuming that Appellee has a valid cause of action at all) and has
    changed its identification of the Appellant that allegedly received bribes and/or
    excessive payments for advertising from El Diario to Editora, the Mexican entity
    that it actually sued.
    In its First Amended Petition, Appellee alleges that the State made illegal and
    improper payments to Appellant Mr. Borunda “and his newspaper” El Diario de El
    Paso. CR 340.
    The alleged purpose for the payments was so that El Diario would write
    flattering stories about the then governor, Mr. Duarte, and to report negatively about
    Mr. Duarte’s adversaries. CR 340.
    In response to the filing of Appellants’ Special Appearance and Rule 91a
    Motion to Dismiss Baseless Causes of Action, Appellee filed its Second Amended
    Petition.
    In that Second Amended Petition, Appellee made the following allegations
    against Appellants:
    Further, Mr. Duarte sent tens (if not hundreds) of millions of
    dollars to his confederate Defendant Osvaldo Rodriguez Borunda and
    his newspaper El Diario de El Paso. The amounts paid to Mr. Borunda
    and his newspaper were not authorized, not approved, and far exceed
    any reasonable amount that should be paid to a newspaper and its owner
    – even for an improper purpose. As such, these hyper-inflated amounts
    1
    were nothing more than bribes and a way to commit further graft
    against the State of Chihuahua. More specifically, Mr. Duarte was
    illegally and improperly sending state money to Mr. Borunda and El
    Diario to report negatively on Mr. Duarte’s political adversaries and
    positively about Mr. Duarte and his administration. Mr. Duarte was also
    paying money to Mr. Borunda and El Diario for services that were
    never rendered, overpaying for services that were rendered, and
    outright bribing Mr. Borunda and El Diario at times. Such was and is
    illegal. These monies belonged to the state and its people, but were
    being used to bribe a newspaper and its owner. These monies were sent
    to Mr. Borunda and his newspaper for illegal and improper purposes.
    These money transfers were illegal and improper and part of a scheme
    to defraud the people of Chihuahua for the benefit of Mr. Duarte.
    Further, Mr. Borunda and the El Diario de El Paso knew that these
    hundreds of millions of dollars were public funds and that they were
    being misappropriated, but demanded them anyway. It has been widely
    reported that more than 600 million pesos were paid to Mr. Borunda
    and the El Diario de El Paso over five years – more than the government
    spent on infrastructure over that time period. Indeed, once a new
    governor was elected, Mr. Borunda and the El Diario de El Paso began
    pressuring him for similar payoffs with the threat of bad and false
    articles should he not comply their demands. [emphasis added]
    CR 430-431.
    Publicaciones E Impresos Paso Del Norte S. de R.L. de C.V. (El Diario de
    Juarez) and Editora Paso Del Norte S.A. de C.V. are two entirely separate and
    distinct corporate entities. See Exhibit 1 to the Appendix to Appellee’s Brief. Editora
    is not mentioned at all in any factual allegations made by Appellee.            All of
    Appellee’s claims related to advertising and articles, which would have been
    performed by El Diario de Juarez.
    In Appellee’s Brief, at page 9, Appellee, for the first time, alleges that the
    payments were made to Editora and not to El Diario, with no underlying pleading to
    2
    support the same.
    Appellee, again, without any supporting pleading or jurisdictional evidence,
    asserts that Editora is the advertising and real estate arm of Mr. Borunda’s business
    without even identifying that business. That is incorrect.
    Appellee continues to misidentify multiple separate entities into El Diario or
    Editora in the Exhibits it has used in the trial court and in this appeal.
    Michael Eddington, one of Appellee’s counsel, executed a Declaration which
    states that Exhibit 3 of the Appendix to Appellee’s Brief was from Editora Paso Del
    Norte’s website. CR 518-521. That is incorrect. A cursory review of Exhibit 3
    would show that it is actually from Paso Del Norte Publishing, Inc. – a separate
    Texas entity which happens to publish El Diario de El Paso and which derived zero
    income from the advertising provided to Appellee in Mexico. Paso Del Norte
    Publishing also did not write, print or publish any of the articles in Mexico about
    which Appellee complains.
    Mr. Eddington then declares that he has personal knowledge of the State of
    Chihuahua bank records which are attached as Exhibit 4 to the Appendix to
    Appellee’s Brief. CR 518-519, 524-558.
    Allegedly, these are the payments made for the illegal advertising. However,
    the bank records reflect payments to Publicaciones E Impresos Paso Del Norte S. de
    R.L. de C.V. (El Diario de Juarez), a Mexican company which is not a party to this
    3
    lawsuit. Not a single payment is reflected as having been made to Editora.
    Also attached to Appellee’s Brief as Exhibit 4 are invoices from Publicaciones
    E Impresos Paso Del Norte S. de R.L. de C.V. to the State of Chihuahua. CR 524-
    558. The invoices are not from either El Diario de El Paso or Editora.
    Exhibit 5 of the Appendix to Appellee’s Brief is a 2016 interview with Mr.
    Borunda wherein he talks about his newspaper, El Diario. CR 559-567. Editora is
    not mentioned.
    Exhibit 7 of the Appendix to Appellee’s Brief is similarly an interview where
    Editora is not mentioned. CR 574-579.
    4
    ARGUMENT
    Two requirements must be met before a Texas court can exercise personal
    jurisdiction over a nonresident defendant. First, the Texas long-arm statute must
    authorize the exercise of jurisdiction and second, the exercise of jurisdiction must
    comport with federal due process. Am. Type Culture Collection, Inc. v. Coleman, 
    83 S.W.3d 801
    , 806 (Tex. 2002).
    Pursuant to the long-arm statute, Texas can exercise personal jurisdiction over
    a nonresident defendant that “does business” in Texas. Tex. Civ. Prac. & Rem. Code
    Ann. §17.042; BMC Software Belgium, NV v. Marchand, 
    83 S.W.3d 789
    , 795 (Tex.
    2002).
    The statute lists three activities that constitute “doing business” in Texas:
    a.    Contracting with a Texas resident when either party is to perform
    the contract in whole or in part in Texas;
    b.    Committing a tort in whole or in part in Texas; and
    c.    Recruiting Texas residents for employment inside or outside of
    Texas.
    Editora has done none of those things and Plaintiff has not proffered any
    evidence to the contrary.
    The “doing business” requirement is also limited by the requirements of
    federal due process.
    5
    With respect to personal jurisdiction, federal due process requires two things.
    First, the defendant must have purposely established such minimum contacts with
    the forum state that the defendant could reasonably anticipate being sued there.
    Burger King v. Rudzewicz, 
    471 U.S. 462
    , 475-476, 
    105 S. Ct. 2174
    , 2183-84, 
    85 L. Ed. 2d 528
     (1985). Second, if the nonresident defendant has purposefully established
    minimum contacts, the exercise of personal jurisdiction must comport with
    traditional notions of fair play and substantial justice. Burger King, 
    471 U.S. at 445
    -
    46.
    The minimum-contacts requirement protects due-process rights by permitting
    a state to exercise jurisdiction over a nonresident defendant only when the defendant
    "could reasonably anticipate being hauled into court there." Moncrief Oil Int'l Inc.
    v. OAO Gazprom, 
    414 S.W.3d 142
    , 158 (Tex. 2013). Minimum contacts may create
    either general or specific personal jurisdiction. 
    Id. at 150
    . A court has general
    jurisdiction over a nonresident defendant whose "affiliations with the State are so
    'continuous and systematic' as to render [it] essentially at home in the forum State."
    Daimler AG v. Bauman, 
    134 S. Ct. 746
    , 754, 
    187 L. Ed. 2d 624
     (2014) (quoting
    Goodyear Dunlop Tires Operations, S.A. v. Brown, 
    564 U.S. 915
    , 919, 
    131 S. Ct. 2846
    , 
    180 L. Ed. 2d 796
     (2011)). This test requires "substantial activities within the
    forum" and presents "a more demanding minimum contacts analysis than for specific
    jurisdiction." BMC Software Belgium, N.V. v. Marchand, 
    83 S.W.3d 789
    , 797 (Tex.
    6
    2002). When a court has general jurisdiction over a nonresident, it may exercise
    jurisdiction "even if the cause of action did not arise from activities performed in the
    forum state." Spir Star AG v. Kimich, 
    310 S.W.3d 868
    , 872 (Tex. 2010). Oswaldo
    Rodriguez executed his Affidavit, a true and correct copy of which is attached the
    Appendix filed concurrently herewith at Tab A, specifically CR 440-442, which
    Affidavit makes it clear that Appellee has not met any of the jurisdictional
    requirements as it applies to Editora. It is clear why. Appellee has sued the wrong
    entity.
    In recent years, based on the due process requirements, the U.S. Supreme
    Court has limited general jurisdiction such that there is no general jurisdiction over
    Editora in this case.
    In the Daimler case, 
    134 S. Ct. 746
     (2014), the Supreme Court held that a
    company cannot be subjected to foreign jurisdiction because an affiliated (but
    distinct) company would be subjected to jurisdiction, rejecting any argument that a
    corporation may be agents of their affiliates, subsidiaries, parent companies, etc., for
    jurisdiction purposes.
    The Texas Supreme Court reached the same conclusion in Michiana East
    Livin’ Country, Inc. v. Holten, 
    168 S.W.3d 777
    , 785 (Tex. 2005) explaining that only
    the defendant’s own actions may constitute purposeful availment. A defendant may
    not be hauled into a jurisdiction based solely on the unilateral activities of a third
    7
    party. Appellee has not plead any acts by Editora in either Mexico or Texas.
    By contrast, courts may exercise specific jurisdiction when the defendant's
    forum contacts are "isolated or sporadic," as opposed to "continuous and
    systematic," but only if the plaintiff's cause of action arises from or relates to those
    contacts. 
    Id. at 872-73
     (quoting 4 Charles Alan Wright & Arthur R. Miller, Federal
    Practice and Procedure § 1067.5 (3d ed. 2002)); see also Moncrief Oil, 414 S.W.3d
    at 150 ("[S]pecific jurisdiction exists when the cause of action arises from or is
    related to purposeful activities in the state."). For specific jurisdiction, we must
    analyze the defendant's contacts "on a claim-by-claim basis" to determine whether
    each claim arises out of or is related to the defendant's minimum contacts. Moncrief
    Oil, 414 S.W.3d at 150. None of Editora’s activities took place in Texas.
    In Bristol-Myers Squibb Co. v. Superior Court of California, 
    137 S. Ct. 1773
    (2017), the Supreme Court further limited jurisdiction. It limited a state courts ability
    to assert personal jurisdiction to those activities or occurrences that take place in the
    forum state and thus subject to the forum states regulation.
    In Bristol-Myers Squibb, a group of plaintiffs, most of whom were not
    California residents, sued Bristol-Myers Squibb (BMS) in California state court,
    alleging that they were injured by BMS’s blood-thinning drug Plavix. The California
    Superior Court held that California courts lacked general jurisdiction over BMS (a
    Delaware Corporation headquartered in New York) but could assert specific
    8
    jurisdiction over all claims, even those claims brought by non-resident Plaintiffs who
    did not purchase Plavix in California and were not injured in California.
    On appeal, the United States Supreme Court reversed, holding that California
    courts lacked specific jurisdiction over claims brought by the non-resident class
    members. In other words, the Court held that the non-resident claims were not
    sufficiently related to the following of BMS’s connections to California: (1) BMS’s
    five research and laboratory facilities employing a total of 160 employees in
    California; (2) its state-government advocacy office in Sacramento; and (3) its
    employment of 250 sales representatives in California. The Court explained that
    these activities were not specifically related to the non-resident plaintiffs’ Plavix
    claims because BMS did not develop Plavix in California, did not create a marketing
    strategy for Plavix in California, and did not manufacture, label, package, or work
    on the regulatory approval of the product in California. All of these activities took
    place in New York or New Jersey. The Court also found it insufficient that BMS
    took $900 million from Plavix sales in the state, as none of the non-resident plaintiffs
    alleged that they purchased Plavix in California.
    Editora undertook no actions in Texas and, therefore, the state courts of Texas
    have no jurisdiction over it.
    Further, Appellee has not described any action that Mr. Rodriguez undertook
    in Texas. All alleged unlawful activities took place in Mexico. The only possible
    9
    action against Mr. Rodriguez would be in rem claims for assets in Texas derived
    from Appellee’s money assuming that Appellee’s money was actually paid to Mr.
    Rodriguez and transferred to Mexico for which Appellee has provided zero
    evidence.
    Even when a nonresident has established minimum contacts with a state, due
    process permits the state to assert jurisdiction over the nonresident only if doing so
    comports with "traditional notions of fair play and substantial justice." Int’l Shoe Co.
    v. Washington, 
    326 U.S. 310
    , 316 (1945); Moncrief Oil, 414 S.W.3d at 154.
    Typically, "[w]hen a nonresident defendant has purposefully availed itself of the
    privilege of conducting business in a foreign jurisdiction, it is both fair and just to
    subject that defendant to the authority of that forum's courts." Spir Star, 310 S.W.3d
    at 872. Thus, "[i]f a nonresident has minimum contacts with the forum, rarely will
    the exercise of jurisdiction over the nonresident not comport with traditional notions
    of fair play and substantial justice." Moncrief Oil, 414 S.W.3d at 154-55.
    The Texas courts consider several factors to evaluate the fairness and justness
    of exercising jurisdiction over a nonresident defendant: (1) the burden on the
    defendant; (2) the interests of the forum in adjudicating the dispute; (3) the plaintiff's
    interest in obtaining convenient and effective relief; (4) the international judicial
    system's interest in obtaining the most efficient resolution of controversies; and (5)
    the shared interest of the several nations in furthering fundamental substantive social
    10
    policies. Id. at 155. When the defendant is a citizen of a foreign country, and not just
    another state, we consider more specifically (6) "the unique burdens placed upon the
    defendant who must defend itself in a foreign legal system;" (7) the state's regulatory
    interests; and (8) "the procedural and substantive policies of other nations whose
    interests are affected as well as the federal government's interest in its foreign
    relations policies." Guardian Royal Exch. Assurance, Ltd. v. English China Clays,
    P.L.C., 
    815 S.W.2d 223
    , 229 (Tex. 1991. "To defeat jurisdiction, [the defendant]
    must present 'a compelling case that the presence of some consideration would
    render jurisdiction unreasonable'" Spir Star, 310 S.W.3d at 878-79 (quoting
    Guardian Royal, 815 S.W.2d at 231).
    The state of Texas has no interest in the actions in Mexico complained of by
    Appellee.
    Fundamentally, "[a] state has an especial interest in exercising judicial
    jurisdiction over those who commit torts within its territory," Keeton v. Hustler
    Magazine, Inc., 
    465 U.S. 770
    , 776 (1984), and we have never conditioned that
    interest on the plaintiff's status as a Texas "citizen," as opposed to a Texas "resident."
    See, e.g., Moncrief Oil, 414 S.W.3d at 155 ("[T]he allegations that . . . Defendants
    committed a tort in Texas against a resident implicate a serious state interest in
    adjudicating the dispute."); Spir Star, 310 S.W.3d at 879 ("Texas has a significant
    interest in exercising jurisdiction over controversies arising from injuries a Texas
    11
    resident sustains . . . ."); see also Asahi Metal Indus. Co. v. Superior Court of Cal.,
    
    480 U.S. 102
    , 114, 
    107 S. Ct. 1026
    , 
    94 L. Ed. 2d 92
     (1987) ("Because the plaintiff
    is not a California resident, California's legitimate interests in the dispute have
    considerably diminished."). When a cause of action is not connected to Texas and
    none of the parties are Texas residents, fairness becomes of paramount importance.
    Michel v. Rocket Eng'g Corp., 
    45 S.W.3d 658
    , 683 (Tex. App.—Fort Worth 2001,
    no pet.).
    All of the actions complained of here took place in Mexico. All of the
    witnesses are in Mexico and it is uncertain that they would be able to travel to Texas
    to testify or would be willing to do so. All of the documents are in Spanish. It would
    be unfair to all defendants to try this case anywhere but in Mexico, where every
    complained of transaction took place.
    Every article was printed and published in Mexico. Every invoice from
    Publicaciones E Impresos Paso Del Norte S. de R.L. de C.V. was sent to Appellee
    in Mexico. Every advertisement was in Mexico. Every payment was made in
    Mexico.
    Texas has absolutely no relationship to or interest in this litigation.
    12
    PRAYER
    For the above reasons, Appellants respectfully request that this Court reverse
    the Trial Court’s July 9, 2021 Order Overruling Defendants Osvaldo Rodriguez
    Borunda and Editora Paso Del Norte, S.A. de C.V.’s Special Appearance Objecting
    to Jurisdiction in all respects, award recoverable court costs to Appellants, and for
    such other and further relief, both general and special, at law or in equity, to which
    Appellants may be justly entitled.
    /s/ Harrel L. Davis III
    Harrel L. Davis III
    State Bar No. 05567560
    Gordon Davis Johnson & Shane, P.C.
    4695 N. Mesa, Suite 100
    El Paso, Texas 79912
    (915) 545-1133
    (915) 545-4433 Fax
    hdavis@eplawyers.com
    13
    CERTIFICATE OF COMPLIANCE
    This brief complies with the type-volume limitations of Tex. R. App. P.
    9.4(i)(2)(C) because this brief contains 2,798 words, excluding the parts of the brief
    exempted by Tex. R. App. P. 9.4(i)(1).
    /s/ Harrel L. Davis III
    Harrel L. Davis III
    14
    CERTIFICATE OF SERVICE
    I hereby certify that a true and correct copy of the foregoing was filed with
    the Court via the EFile.TXCourts.gov system on November 2, 2021. All attorneys
    identified with the Court for electronic service on record in this case were served by
    electronic service in accordance with the EFile.TXCourts.gov system.
    /s/ Harrel L. Davis III
    Harrel L. Davis III
    15
    APPENDIX
    Affidavit of Osvaldo Rodriguez Jimenez in Support of
    Editora Paso Del Norte, S.A. de C.V.’s and Osvaldo Rodriguez
    Borunda’s Special Appearance .....................................................................Tab A
    16
    TAB A
    17
    El Paso County - 448th District Court                                                           Filed 4/14/2021 9:03 AM
    Norma Favela Barceleau
    District Clerk
    El Paso County
    2020DCV0628
    IN THE DISTRICT COURT OF EL PASO COUNTY, TEXAS
    448TH JUDICIAL DISTRICT
    FREE AND SOVEREIGN STATE OF                         §
    CHIHUAHUA,                                          §
    §
    Plaintiff,                                 §
    §
    v.                                                  § CAUSE NO. 2020DCV0628
    §
    CESAR HORACIO DUARTE JAQUEZ, et al.,                §
    §
    Defendants.                                §
    AFFIDAVIT OF OSVALDO RODRIGUEZ JIMENEZ
    IN SUPPORT OF EDITORA PASO DEL NORTE, S.A. de C.V.'S and
    OSVALDO RODRIGUEZ BORUNDA'S SPECIAL APPEARANCE
    STATE OF TEXAS                 )
    )
    COUNTY OF EL PASO              )
    Before me, the undersigned authority, on this day personally appeared Osvaldo Rodriguez
    Jimenez, known to me to be the person whose name is subscribed hereto, who stated under oath
    as follows:
    1. "My name is Osvaldo Rodriguez Jimenez. I am the duly authorized representative of
    Editora Paso Del Norte, S.A. de C.V. ("Editora"), one of the Defendants in the above-
    referenced and styled lawsuit. I have personal knowledge of the facts stated in this
    affidavit, which are true and correct, and I am authorized in all respects to make this
    affidavit and these statements. The statements made herein also apply to the Special
    Appearance of Osvaldo Rodriguez Borunda ("Mr. Rodriguez"). I am over the age of
    18 years and am fully competent to testify to the matters stated herein.
    2. "The current governor of Plaintiff is Javier Corral Jurado. He became governor in
    October 2016. Mr. Corral and Mr. Rodriguez, another one of the Defendants herein
    and Editora's principal, have had a contentious relationship for a number of years and
    El Diario de Juarez has published a number of unflattering, but truthful, articles about
    Mr. Corral starting long before Mr. Corral became governor in October 2016.
    3. "Because of those articles, Mr. Corral has, in Mexico, publicly made slanderous claims
    about El Diario de Juarez and Mr. Rodriguez. El Diario de Juarez filed suit against Mr.
    Corral in Mexico in February 2020 in order to try to stop those slanderous attacks. In
    return, in March 2020, Mr. Corral filed a libel lawsuit against El Diario de Juarez, the
    entity that prints and publishes the Juarez, Chihuahua, Mexico newspaper.
    {1130.153/HDAV/06812335.1}
    440
    4. "Plaintiff, even after Mr. Corral became governor, continued to request that El Diario
    de Juarez provide it with advertising services. It did so. However, when the above-
    referenced conflicts started to arise, Plaintiff ceased paying for that advertising. That
    refusal to pay for advertising that Plaintiff had requested caused El Diario de Juarez to
    file a collection suit against the State of Chihuahua in Mexico in September, 2020.
    5. "Mr. Corral then asked the State's attorney to add Editora and Mr. Rodriguez as
    Defendants in this action. None of the complained of transactions as to these
    Defendants took place in the United States, and none of the alleged funds were used to
    purchase property in Texas.
    6. "Editora is not a resident of Texas. Editora does not engage in any business in Texas
    other than hold certain accounts and neither it or Mr. Rodriguez have committed any
    tort, in whole or in part, within the State of Texas. Certainly, none of the acts
    complained of by Plaintiff took place or would have taken place in Texas. Editora does
    not maintain a place of business in Texas and has no employees, servants, or agents
    within the State of Texas. Editora has no substantial connection with Texas arising
    from any action or conduct of Editora purposefully directed towards Texas. Editora
    does not own any real estate in Texas.
    7. "Plaintiffs claims do not arise from and are not related to any activity allegedly
    conducted by Editora or Mr. Rodriguez in Texas. It appears from the First Amended
    Petition that Plaintiff is complaining that the prior governor provided funds for the
    purpose of obtaining favorable articles. Neither Editora nor Mr. Rodriguez publish
    newspapers, much less articles. No funds were ever paid directly to Editora or Mr.
    Rodriguez by Plaintiff for the publishing of articles. The State of Chihuahua did
    purchase advertising and legally required notices from El Diario de Juarez, but, again,
    all of those transactions took place in Mexico.
    8. "Editora has not had continuous or systematic contacts with the State of Texas.
    Plaintiffs alleged cause of action against Editora and Mr. Rodriguez do not arise from
    any contacts between Editora and Mr. Rodriguez and the State of Texas. Thus, Editora
    and Mr. Rodriguez had no basis to reasonably anticipate being hauled into court in
    Texas in regard to either the claims at issue or any other occurrence. The Court's
    assumption of jurisdiction over Editora or Mr. Rodriguez would clearly offend
    traditional notions of fair play and substantial justice denying Editora or Mr. Rodriguez
    due process oflaw. Mr. Rodriguez is a Mexican citizen. Both he and Editora agree to
    jurisdiction in Mexico."
    {l 130.153/HDAV/06812335.1}
    441
    Affiant says nothing further.
    SUBSCRIBED AND SWORN TO before                 e on this, the        \   3   day of
    h