Calabrian Corporation v. Alliance Specialty Chemicals , 418 S.W.3d 154 ( 2013 )


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  • Reversed and Remanded and Majority and Dissenting Opinions filed November 19,
    2013.
    In The
    Fourteenth Court of Appeals
    NO. 14-12-00821-CV
    CALABRIAN CORPORATION, Appellant
    V.
    ALLIANCE SPECIALTY CHEMICALS, INC., Appellee
    On Appeal from the 165th District Court
    Harris County, Texas
    Trial Court Cause No. 2011-71011
    MAJORITY OPINION
    In this interlocutory appeal, a Texas manufacturer challenges the trial court’s
    order granting a non-resident defendant’s special appearance. We reverse and
    remand because the non-resident defendant is collaterally estopped from
    relitigating personal jurisdiction.
    BACKGROUND
    Appellant/plaintiff Calabrian Corporation, a Delaware corporation with its
    principal place of business in Texas, is a producer of sulfur dioxide and sulfur
    derivatives used in a variety of products and industries. Calabrian entered into a
    License Agreement with Noxso Corporation in September 1995. The majority of
    the negotiations leading to the Agreement occurred in Texas. In the Agreement,
    Calabrian granted Noxso a license to use certain technical information and sulfur
    dioxide technology developed in Texas to operate and maintain a plant that Noxso
    planned to build in Tennessee. Noxso entered into a separate agreement with Olin
    Corporation under which Olin would operate the plant. As part of the License
    Agreement, Calabrian permitted Noxso to disclose to Olin, subject to certain
    requirements, sufficient technical information to allow satisfactory operation and
    maintenance of the plant.             Under the Agreement, Noxso had ongoing
    confidentiality obligations to Calabrian in Texas, and Noxso sent payments to
    Calabrian in Texas. Noxso’s plant, which was modeled on Calabrian’s Texas
    plant, was constructed in Tennessee using equipment and components fabricated in
    Texas.
    Two years later, in 1997, Noxso was forced into an involuntary bankruptcy
    proceeding. With the permission of the bankruptcy court, Noxso assigned its rights
    and obligations under the License Agreement to an affiliate of Republic Financial
    Corporation named ―RFC SO2, Inc.‖ Noxso also sold the Plant to RFC SO2, Inc.,
    which was later re-named Alliance Specialty Chemicals, Inc., a Delaware
    2
    corporation with its principal place of business in Tennessee. Alliance is one of
    the defendants below and the appellee in this interlocutory appeal.1
    In February 1998, Calabrian sued Republic and Alliance in state district
    court in Jefferson County (―the 1998 Case‖). Calabrian sought declaratory relief
    regarding the rights and obligations of the parties under the License Agreement,
    including declarations as to Alliance’s obligations to keep the technology
    confidential and to make disclosures and payments to Calabrian. The 1998 Case
    was removed to federal court, where Alliance filed a motion contesting personal
    jurisdiction under Federal Rule of Civil Procedure 12(b)(2). The federal district
    court denied this motion, and litigation proceeded with a final judgment rendered
    in March 2000.
    In November 2011, Calabrian filed this lawsuit against Alliance and Olin in
    state district court in Harris County (―the 2011 Case‖), seeking declaratory relief
    and asserting claims for breach of contract and misappropriation of trade secrets.
    Calabrian later added as a defendant its primary competitor, Chemtrade Logistics
    (US), Inc., which had purchased the shares of Alliance.2 Calabrian alleged, among
    other things, that Alliance violated the License Agreement by disclosing
    confidential information to Chemtrade and by refusing to transfer the plant to Olin
    ten years after construction was completed.
    1
    Alliance has judicially admitted that it was previously known as RFC SO2 and that its
    name was changed from RFC SO2, Inc. to Alliance. Apparently, this name change involved a
    merger or consolidation because the record reflects that RFC SO2, Inc. was a Wyoming
    corporation before the name change and a Delaware corporation after the name change. For ease
    of reference, we will refer to both RFC SO2, Inc. and Alliance Specialty Chemicals, Inc. as
    ―Alliance.‖
    2
    Neither Olin nor Chemtrade are parties to this interlocutory appeal.
    3
    Alliance filed a special appearance in the 2011 Case, asserting that the
    exercise of personal jurisdiction over it by a Texas court would violate due process
    because its only connection with Texas is as Noxso’s assignee under the License
    Agreement. Alliance argued that in the years since the 1998 Case, the law had
    changed such that a non-resident assignee of a contract is no longer subject to
    personal jurisdiction based on the forum contacts of the assignor.
    Calabrian opposed the special appearance, arguing among other things that
    the 1998 Case involved the same License Agreement, the same parties, and the
    same arguments related to personal jurisdiction such that Alliance is collaterally
    estopped from avoiding personal jurisdiction in Texas.               Calabrian attached
    documents from the 1998 Case in support of its arguments.
    Following a series of discovery disputes, the trial court heard and granted
    Alliance’s special appearance.          Calabrian filed this interlocutory appeal
    challenging the trial court’s order granting the special appearance and,
    alternatively, contending the trial court erred in denying its motion for a
    continuance of the hearing on the special appearance.
    ANALYSIS
    In its first issue, Calabrian asserts that the trial court erred in granting
    Alliance’s special appearance.       To resolve this appeal, we need only address
    Calabrian’s argument that Alliance is collaterally estopped from challenging the
    federal district court’s ruling that it is subject to personal jurisdiction in Texas.
    There are two principal categories of preclusion: (1) claim preclusion (also
    known as res judicata); and (2) issue preclusion (also known as collateral estoppel).
    Barr v. Resolution Trust Corp., 
    837 S.W.2d 627
    , 628 (Tex. 1992). These doctrines
    serve the vital functions of bringing litigation to an end, maintaining stability of
    4
    court decisions, avoiding inconsistent results, and promoting judicial economy. 
    Id. at 629;
    Jeanes v. Henderson, 
    688 S.W.2d 100
    , 105 (Tex. 1985). Claim preclusion
    and issue preclusion are affirmative defenses, and the party asserting either defense
    has the burden of pleading and proving its elements. In re H.E. Butt Grocery Co.,
    
    17 S.W.3d 360
    , 377 (Tex. App.—Houston [14th Dist.] 2000, orig. proceeding).
    Calabrian relies on the doctrine of collateral estoppel or issue preclusion,
    which prevents a party from relitigating an issue that it previously litigated and
    lost. See Quinney Elec., Inc. v. Kondos Entm’t, Inc., 
    988 S.W.2d 212
    , 213 (Tex.
    1999) (per curiam). Personal jurisdiction is an issue that a party can be precluded
    from relitigating. E.g., Corea v. Bilek, 
    362 S.W.3d 820
    , 825–26 (Tex. App.—
    Amarillo 2012, no pet.); Fretz v. Reynolds, No. 04-03-00854-CV, 
    2004 WL 2803201
    , at *1 (Tex. App.—San Antonio Dec. 8, 2004, pet. denied) (mem. op.);
    Nguyen v. Desai, 
    132 S.W.3d 115
    , 118–19 (Tex. App.—Houston [14th Dist.]
    2004, no pet.); see also Deckert v. Wachovia Student Fin. Servs., 
    963 F.2d 816
    ,
    818–19 & n.5 (5th Cir. 1992).
    To prevail on its collateral estoppel defense, Calabrian must establish the
    following: (1) the facts sought to be litigated in the second action were fully and
    fairly litigated in the first action; (2) the facts were essential to the judgment in the
    first action; and (3) the parties were cast as adversaries in the first action. See John
    G. & Marie Stella Kenedy Mem’l Found. v. Dewhurst, 
    90 S.W.3d 268
    , 288 (Tex.
    2002); Quanaim v. Frasco Rest. & Catering, 
    17 S.W.3d 30
    , 44 (Tex. App.—
    Houston [14th Dist.] 2000, pet. denied).3 If these elements are established, then
    3
    Our dissenting colleague argues we should apply multiple factors at the second step to
    determine whether the federal district court’s decision on personal jurisdiction was adequately deliberated
    and firm, and contends that Calabrian offered insufficient evidence of these factors. Post, at 5–6, 8–10.
    We disagree. In this case, as explained below, the record shows there was a final judgment. Accordingly,
    it would be improper to apply the factors relied upon by the dissent, which are designed to determine
    whether an adjudication that is not accompanied by a final judgment is nevertheless firm enough to be
    5
    Alliance is precluded from litigating the issue again. See 
    Barr, 837 S.W.2d at 628
    .
    Whether collateral estoppel applies is a question of law. See id.4
    Alliance does not dispute that Calabrian proved these elements, arguing
    instead that collateral estoppel does not apply because Texas law has changed. We
    address Alliance’s argument in Part II below. Our dissenting colleague argues,
    however, that Calabrian failed to prove the elements of its collateral estoppel
    defense. We disagree for the following reasons.
    I.     Alliance is collaterally estopped from relitigating the issue whether it is
    subject to personal jurisdiction in Texas on claims arising from the
    License Agreement.
    In responding to the special appearance, Calabrian attached the following
    documents relevant to the 1998 Case: Calabrian’s live pleading, Calabrian’s
    response to Alliance’s motion to dismiss for lack of personal jurisdiction, the
    federal district court’s order denying the motion to dismiss, and the court’s order
    denying Alliance’s motion for reconsideration. It also attached an affidavit stating
    that the federal district court entered a final judgment in the 1998 Case in March
    2000. These documents, and the remainder of the record in the 2011 Case, show
    as a matter of law that Calabrian established the three elements of its collateral
    estoppel defense.
    given issue-preclusive effect. See Restatement (Second) of Judgments § 13 & cmts. a, g (1982), cited in
    Van Dyke v. Boswell, O’Toole, Davis & Pickering, 
    697 S.W.2d 381
    , 385 (Tex. 1985); see also Mower v.
    Boyer, 
    811 S.W.2d 560
    , 562 (Tex. 1991) (holding interlocutory partial summary judgment did not satisfy
    factors).
    4
    Although the personal jurisdiction ruling in the 1998 Case was made by a federal court,
    the Texas Supreme Court has determined that federal law and Texas law are the same regarding
    collateral estoppel. Thus, we need not analyze this issue under federal precedent. See John G. &
    Marie Stella Kenedy Mem’l 
    Found., 90 S.W.3d at 288
    .
    6
    First, the documents from the 1998 Case show that the issue whether
    Alliance is subject to specific personal jurisdiction in Texas on claims arising from
    the License Agreement was fully and fairly litigated in the district court, which
    held that Alliance could be sued in Texas.        See 
    Corea, 362 S.W.3d at 825
    (characterizing ―personal jurisdiction‖ as ―the issue that was fully litigated in the
    previous action‖). The record also shows that the same issue was before the trial
    court in this 2011 Case: in responding to Alliance’s special appearance, Calabrian
    argued that Alliance is subject to specific personal jurisdiction in Texas on claims
    that likewise focus on the License Agreement. As Calabrian explained, although
    this case involves aspects of the License Agreement that were not ruled on in the
    1998 Case, both this case and the 1998 Case are governed by the same License
    Agreement and address the same jurisdictional facts regarding Alliance’s contacts
    with Texas in connection with the Agreement. Alliance does not dispute that
    Calabrian’s claims in both the 1998 Case and this case arise from the License
    Agreement.
    Second, the issue of personal jurisdiction over Alliance was essential to the
    judgment in the 1998 Case—which was entered in 2000 according to the
    affidavit—because a court may not render a judgment that binds a party over
    which it has no personal jurisdiction. Int’l Shoe Co. v. Washington, 
    326 U.S. 310
    ,
    319 (1945). Third, the documents from the 1998 Case show that Calabrian and
    Alliance were adversaries in that case.
    Our dissenting colleague disagrees as to the first element, contending that
    the issues of personal jurisdiction in the 1998 Case and this case are not identical
    because: (1) ―Calabrian is asserting different claims‖ in this case; and (2) ―the
    jurisdictional analysis of Alliance’s contacts with Texas takes place at a much later
    7
    point in time‖ in this case. Post, at 14. We conclude that neither consideration
    alters the jurisdictional analysis here.
    While Calabrian’s claims in this case are not identical to those in the 1998
    Case, Calabrian is not asserting a defense of claim preclusion.          Rather, it is
    asserting issue preclusion as to the court’s personal jurisdiction over Alliance. Of
    course, a plaintiff who brings multiple claims that involve different forum contacts
    must establish specific jurisdiction for each claim because the Due Process Clause
    prohibits the exercise of jurisdiction over any claim that does not arise out of or
    relate to the defendant’s forum contacts. Moncrief Oil Int’l, Inc. v. OAO Gazprom,
    No. 11-00195, 
    2013 WL 4608672
    , at *4 (Tex. Aug. 30, 2013). But ―a court need
    not assess contacts on a claim-by-claim basis if all claims arise from the same
    forum contacts.‖ 
    Id. Although Calabrian’s
    claims in the 1998 and 2011 Cases are not the same,
    they all involve the License Agreement. And in both cases, Calabrian has relied on
    the same Texas contacts as a basis for personal jurisdiction over Alliance: its
    contacts with Texas in connection with the Agreement. Whether those contacts
    support specific personal jurisdiction over Alliance in Texas was fully and fairly
    litigated in the 1998 Case. Accordingly, we conclude that the differences among
    the claims asserted in the two cases do not alter the specific jurisdiction analysis in
    a manner that renders collateral estoppel inapplicable.
    Regarding the lapse of time between the 1998 and 2011 Cases, we have
    recognized that ―a judgment in one suit will not operate as res judicata to a
    subsequent suit where, in the interval, the facts have changed, or new facts have
    occurred which may alter the legal rights or relations of the parties.‖ Hernandez v.
    Del Ray Chem. Int’l, Inc., 
    56 S.W.3d 112
    , 116 (Tex. App.—Houston [14th Dist.]
    8
    2001, no pet.); see also 
    Nguyen, 132 S.W.3d at 118
    –19.                          But neither party
    contends, and the record does not reflect, that the relevant jurisdictional facts
    regarding Alliance’s contacts with Texas in connection with the Agreement have
    changed in the intervening years.5 Accordingly, we hold that the district court’s
    ruling denying Alliance’s motion to dismiss for lack of personal jurisdiction in the
    1998 Case precludes relitigation of that issue in this case. See 
    Corea, 362 S.W.3d at 826
    (precluding relitigation of personal jurisdiction issue and rejecting
    contention that jurisdictional facts had changed because party opposing preclusion
    offered no proof of change).
    The dissent also argues that Calabrian failed to provide a record sufficient to
    establish each element of its collateral estoppel defense as a matter of law. We
    disagree. As the cases cited by the dissent show, courts typically require that the
    party advocating collateral estoppel introduce at least the pleadings and judgment
    from the prior case.6 The amount of evidence required to establish the defense will
    vary from case to case, however. The question is simply whether the record
    sufficiently notified the trial court of the issues decided in the prior case.7
    5
    The Restatement observes that the burden of establishing a change in facts sufficient to
    undermine a preclusion defense should fall on the party opposing the defense, at least in some
    cases. See Restatement (Second) of Judgments § 27 cmt. c & illus. 7; see also 
    Corea, 362 S.W.3d at 826
    (placing burden on party opposing preclusion). In other words, under the
    Restatement approach, a changed-facts argument operates like a plea in confession and
    avoidance of the preclusion defense. See Woods v. William M. Mercer, Inc., 
    769 S.W.2d 515
    ,
    517 (Tex. 1988) (explaining that a plea in confession and avoidance admits the truth of the facts
    alleged in support of a defense but alleges new matter that deprives those facts of their ordinary
    legal effect). Because our decision would be the same regardless of where the burden lies,
    however, we need not resolve that issue here.
    6
    E.g., Hudson v. City of Houston, No. 14-0300565-CV, 
    2005 WL 3995160
    , at *4 (Tex. App.—
    Houston [14th Dist.] Jan. 6, 2005, no pet.) (mem. op.); Cuellar v. City of San Antonio, 
    821 S.W.2d 250
    ,
    256 (Tex. App.—San Antonio 1991, writ denied).
    7
    See Bankers Home Bldg. & Loan Ass’n v. Wyatt, 
    162 S.W.2d 694
    , 695 (Tex. 1942); Tex.
    Capital Sec. Mgmt., Inc. v. Sandefer, 
    80 S.W.3d 260
    , 265 (Tex. App.—Texarkana 2002, pet. struck);
    9
    We conclude that the record did so here. As discussed above, Calabrian
    provided its live pleading, its briefing on personal jurisdiction, and the federal
    district court’s orders on jurisdiction from the 1998 Case. Calabrian did not
    include the judgment from the 1998 Case, but it did provide an affidavit stating
    that there was a final judgment. Each party cites and discusses this statement from
    the affidavit in the fact section of its appellate brief, and there is no evidence to the
    contrary, so we take the existence of the final judgment as true. See Tex. R. App.
    P. 38.1(g).
    The dissent (but not Alliance) faults Calabrian for failing to include in the
    record certain other documents from the 1998 Case, such as Alliance’s
    jurisdiction-related filings and the federal district court’s findings of fact and
    conclusions of law regarding jurisdiction. But there is no indication that the record
    we do have was insufficient to notify the trial court of the jurisdictional issue
    decided in the 1998 Case. Calabrian’s jurisdictional briefing in that case argued
    Alliance was subject to specific personal jurisdiction in Texas on claims arising
    from the License Agreement, and there is no evidence that the issue decided there
    was anything else.8 Nor has Alliance disputed the record’s accuracy or complained
    that it is insufficient to decide Calabrian’s collateral estoppel defense.9 On this
    Hearn v. Cox & Perkins Exploration, Inc., No. 14-98-01275-CV, 
    2000 WL 977372
    , at *3–4 (Tex. App.—
    Houston [14th Dist.] May 18, 2000, no pet.) (not designated for publication); Bass v. Champion Int’l
    Corp., 
    787 S.W.2d 208
    , 213–14 (Tex. App.—Beaumont 1990, no writ).
    8
    The dissent speculates that the federal district court may have found jurisdiction in the 1998
    Case because Alliance’s jurisdictional challenge was untimely, or that Alliance may have re-urged its
    motion for reconsideration of the court’s jurisdictional ruling. But there is no reason to suppose from the
    record that either of those things happened. If this sort of speculation were sufficient to defeat a collateral
    estoppel defense, then the party urging the defense could only hope to prevail by offering the complete
    record of the prior case as supporting evidence. Neither law nor logic compels such a wasteful practice.
    9
    See Whitemyer v. Omokaro, No. 05-01-00780-CV, 
    2002 WL 1981367
    , at *6 n.19 (Tex. App.—
    Dallas Aug. 29, 2002, pet. denied) (not designated for publication); Hearn, 
    2000 WL 977372
    , at *4.
    10
    record, therefore, we conclude that Calabrian established each element of its
    defense as a matter of law.
    II.   Alliance has not demonstrated a change in Texas law sufficient to avoid
    collateral estoppel.
    For its part, Alliance relies on the rule that preclusion is not a defense in a
    subsequent suit involving the same issue between the same parties ―if there has
    been a change in . . . the decisional law between the first judgment and the second
    suit.‖ Marino v. State Farm Fire & Cas. Ins. Co., 
    787 S.W.2d 948
    , 949–50 (Tex.
    1990) (holding res judicata did not bar assertion of cause of action arising after the
    first judgment).   The rationale for this rule is that a judgment cannot affect
    substantive rights and duties arising after that judgment. See id.; 
    Hernandez, 56 S.W.3d at 116
    ; see also Restatement (Second) of Judgments § 28(2)(b) & cmt. c
    (1982) (recognizing exception to general rule of issue preclusion when there is an
    ―intervening change in the applicable legal context‖ such that ―preclusion would
    result in a manifestly inequitable administration of the laws‖).          Given this
    rationale, one court has observed that ―Marino applies only if there is a change in
    the law . . . that creates substantive rights that did not exist until after the first
    judgment.‖ Besing v. Vanden Eykel, 
    878 S.W.2d 182
    , 184–85 (Tex. App.—Dallas
    1994, writ denied); see also Mroz v. U.S. Fire Ins. Co., 
    826 S.W.2d 729
    , 730 (Tex.
    App.—Houston [14th Dist.] 1992, writ denied) (applying exception where Texas
    recognized a new cause of action after the first judgment); Hilltop Baptist Temple,
    Inc. v. Williamson Cnty. Appraisal Dist., 
    995 S.W.2d 905
    , 909 (Tex. App.—Austin
    1999, pet. denied) (distinguishing Marino because ―Hilltop is not asserting a new
    claim or right that was created subsequent to [the first judgment]‖).
    Alliance asserts that an ―intervening change‖ in Texas decisional law has
    rendered the district court’s personal jurisdiction ruling in the 1998 Case
    11
    erroneous, making collateral estoppel inapplicable in this case.                     In particular,
    Alliance contends that the ―sole basis for personal jurisdiction‖ in the 1998 Case
    was Noxso’s contacts with Texas, and it points to two cases as ―new controlling
    decisional authority‖ repudiating the theory that these contacts can be imputed to
    Alliance as Noxso’s assignee: Old Kent Leasing Servs. Corp. v. McEwan, 
    38 S.W.3d 220
    , 231 (Tex. App.—Houston [14th Dist.] 2001, no pet.), and Magnolia
    Gas Co. v. Knight Equip. Mfg., 
    994 S.W.2d 684
    , 691–92 (Tex. App.—San Antonio
    1998, no pet.), overruled on other grounds by BMC Software Belgium, N.V. v.
    Marchand, 
    83 S.W.3d 789
    , 794 & n.1 (Tex. 2002).10
    Neither Old Kent nor Magnolia Gas demonstrate a change in decisional law
    sufficient to trigger the Marino exception to collateral estoppel.                        Pre-1998
    decisions established that the defendant’s forum contacts ―must have resulted from
    [its] purposeful conduct and not the unilateral activity of the plaintiff or others.‖
    Guardian Royal Exch. Assurance, Ltd. v. English China Clays, P.L.C., 
    815 S.W.2d 223
    , 227 (Tex. 1991); see also Helicopteros Nacionales de Colombia, S.A. v. Hall,
    
    466 U.S. 408
    , 417 (1984); Hanson v. Denckla, 
    357 U.S. 235
    , 253 (1958) (―The
    unilateral activity of those who claim some relationship with a nonresident
    defendant cannot satisfy the requirement of contact with the forum State.‖);
    10
    The record does not support Alliance’s assertion that Noxso’s imputed contacts were
    the sole basis for personal jurisdiction over Alliance in the 1998 Case. The one-sentence order
    from the federal district court, which denied Alliance’s motion to dismiss for lack of personal
    jurisdiction, does not specify the basis for its decision that personal jurisdiction exists. The order
    provides that the decision was based on ―findings of fact and conclusions of law‖ made at a
    hearing held on July 24, 1998, the same date the order was entered. The appellate record
    contains neither a transcript of the hearing held on that date nor findings of fact or conclusions of
    law relevant to the jurisdictional decision. Thus, contrary to Alliance’s contention that the
    federal court’s decision is ―wholly inconsistent‖ with Old Kent and Magnolia Gas, the record
    does not reflect how the court arrived at its decision. Moreover, although we need not reach the
    merits of the personal jurisdiction issue, we note that Calabrian has argued Alliance is subject to
    personal jurisdiction in Texas based on its own forum contacts arising out of the License
    Agreement.
    12
    Malaysia British Assurance, Ltd. v. El Paso Reyco, Inc., 
    830 S.W.2d 919
    , 921
    (Tex. 1992) (per curiam) (holding assignment did not strengthen claim of personal
    jurisdiction).   Although both Old Kent and Magnolia Gas recognized that an
    assignor’s contacts with a forum state could not be imputed to the assignee for
    purposes of personal jurisdiction, each did so based on these pre-1998 principles.
    See Old Kent Leasing Servs. 
    Corp., 38 S.W.3d at 231
    ; Magnolia Gas 
    Co., 994 S.W.2d at 691
    –92. Because Old Kent and Magnolia Gas simply applied existing
    law on personal jurisdiction, neither created new substantive rights or duties that
    did not exist at the time of the 1998 Case. Accordingly, neither case meets the
    standard discussed above for demonstrating a change in decisional law sufficient to
    warrant an exception to collateral estoppel.11
    Alliance also argues that it would be ―grossly unfair‖ if it were collaterally
    estopped from challenging jurisdiction, but it offers no reasons or legal authority to
    support its argument. We recognize that a collateral estoppel analysis does involve
    considerations of fairness that are not encompassed by the ―full and fair
    opportunity‖ inquiry. See Sysco Food Servs., Inc. v. Trapnell, 
    890 S.W.2d 796
    ,
    11
    In addition, both Old Kent and Magnolia Gas are factually distinguishable from this
    case. See Am. Type Culture Collection, Inc. v. Coleman, 
    83 S.W.3d 801
    , 810 (Tex. 2002)
    (noting that personal jurisdiction is assessed on a case-by-case basis). Neither case involved a
    long-term agreement with continuing obligations between a Texas company and a non-resident
    assignee. Cf. Burger King Corp. v. Rudzewicz, 
    471 U.S. 462
    , 478–82 (1985) (analyzing
    jurisdictional effect of long-term franchise contract with continuing obligations). In Old Kent,
    we concluded that an Illinois company that assumed an agreement to lease computer equipment
    to a California company could not be sued on the agreement in Texas; the fact that a Texas
    company that was not a party to the agreement had supplied the equipment was insufficient to
    support personal 
    jurisdiction. 38 S.W.3d at 231
    . And in Magnolia Gas, the court held that a
    Texas court lacked personal jurisdiction over nonresident defendants who had assumed the
    obligation to move an Oklahoma cryogenic gas plant owned by a Texas company to Arkansas.
    The court carefully considered all contacts with Texas (including those of the assignor who had
    originally contracted to move the plant) and concluded that they ―were entirely incidental and
    immaterial to the purpose of the contract and were not instigated by [the defendants], or their
    
    assignor.‖ 994 S.W.2d at 692
    .
    13
    804 (Tex. 1995). We do not consider the application of collateral estoppel in this
    case to be unfair, however, given that Alliance has defended litigation in Texas
    previously involving the same License Agreement and same parties. Accordingly,
    we hold that collateral estoppel applies in this case to bar Alliance’s challenge to
    personal jurisdiction.12
    CONCLUSION
    We reverse the trial court’s order granting Alliance’s special appearance and
    remand for further proceedings.
    /s/    J. Brett Busby
    Justice
    Panel consists of Chief Justice Frost and Justices Christopher and Busby (Frost,
    C.J., dissenting).
    12
    Because collateral estoppel disposes of the jurisdictional question, we do not reach
    Calabrian’s second issue, which challenges the trial court’s denial of its motion for continuance.
    14
    

Document Info

Docket Number: 14-12-00821-CV

Citation Numbers: 418 S.W.3d 154

Filed Date: 11/19/2013

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (29)

Diane Deckert v. Wachovia Student Financial Services, Inc. , 963 F.2d 816 ( 1992 )

International Shoe Co. v. Washington , 66 S. Ct. 154 ( 1945 )

Guardian Royal Exchange Assurance, Ltd. v. English China ... , 815 S.W.2d 223 ( 1991 )

Hanson v. Denckla , 78 S. Ct. 1228 ( 1958 )

Burger King Corp. v. Rudzewicz , 105 S. Ct. 2174 ( 1985 )

Helicopteros Nacionales De Colombia, S. A. v. Hall , 104 S. Ct. 1868 ( 1984 )

BMC Software Belgium, NV v. Marchand , 83 S.W.3d 789 ( 2002 )

Woods v. William M. Mercer, Inc. , 769 S.W.2d 515 ( 1988 )

John G. & Marie Stella Kenedy Memorial Foundation v. ... , 90 S.W.3d 268 ( 2002 )

Marino v. State Farm Fire & Casualty Insurance Co. , 787 S.W.2d 948 ( 1990 )

Malaysia British Assurance, SDN, BHD v. El Paso Reyco, Inc. , 830 S.W.2d 919 ( 1992 )

Jeanes v. Henderson , 688 S.W.2d 100 ( 1985 )

Bankers Home Bldg. Loan Assn. v. Wyatt , 139 Tex. 173 ( 1942 )

American Type Culture Collection, Inc. v. Coleman , 83 S.W.3d 801 ( 2002 )

Nguyen v. Desai , 132 S.W.3d 115 ( 2004 )

Barr v. Resolution Trust Corp. Ex Rel. Sunbelt Federal ... , 837 S.W.2d 627 ( 1992 )

Mower v. Boyer , 811 S.W.2d 560 ( 1991 )

Van Dyke v. Boswell, O'Toole, Davis & Pickering , 697 S.W.2d 381 ( 1985 )

Sysco Food Services, Inc. v. Trapnell , 890 S.W.2d 796 ( 1995 )

Quinney Electric, Inc. v. Kondos Entertainment, Inc. , 988 S.W.2d 212 ( 1999 )

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