SUE WALKER, Justice.
This is an interlocutory special appearance appeal. Appellant Moncrief Oil International, Inc. appeals the trial court's order granting the special appearances filed by Appellees OAO Gazprom (Gazprom); Gazprom Export, LLC; and Gazprom Marketing & Trading, Ltd.
The jurisdictional facts presented to the trial court were disputed. Essentially, Moncrief Oil, a Fort Worth, Texas-based independent oil and gas company, asserts that it reached an agreement in 2004 with Occidental Petroleum Corporation for a Texas-based joint venture to focus on the importation of liquefied natural gas (LNG) and the development of a regasification facility in Ingleside, Texas. Moncrief Oil alleges that in the course of its business, it developed confidential trade secret information relating to the marketing of Russian natural gas and LNG in the United States.
Appellees point out that Moncrief Oil had previously filed a lawsuit against them in federal court for breach of contract and negligent misrepresentation relating to Moncrief Oil's claimed interest in the Yuzhno-Russkoye Field, an oil field located in Russia. Judge Terry Means dismissed that lawsuit, concluding that "personal jurisdiction cannot constitutionally be exercised over the Gazprom Defendants."
Appellees filed special appearances, and the trial court granted them. Moncrief Oil perfected this interlocutory appeal.
The standard of review and the burdens of proof that we apply in reviewing a trial court's ruling on a special appearance are recited extensively in the case law. Under the Texas long-arm statute, the plaintiff has the initial burden to plead sufficient allegations to confer jurisdiction. Retamco Operating, Inc. v. Republic Drilling Co., 278 S.W.3d 333, 337 (Tex.2009). This minimal pleading requirement is satisfied by an allegation that the nonresident defendant is doing business in Texas. See Assurances Generales Banque Nationale v. Dhalla, 282 S.W.3d 688, 695 (Tex.App.-Dallas 2009, no pet.). The nonresident defendant has the burden of negating all bases of jurisdiction alleged in the plaintiff's petition. Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007); Am. Type Culture Collection, Inc. v. Coleman, 83 S.W.3d 801, 807 (Tex. 2002), cert. denied, 537 U.S. 1191, 123 S.Ct. 1271, 154 L.Ed.2d 1025 (2003).
In determining whether or not a defendant has negated all potential bases for jurisdiction, the trial court frequently must resolve questions of fact. See BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex.2002). And when the trial court does not make findings of fact and conclusions of law in support of its ruling on a defendant's special appearance, all facts necessary to support the ruling that are supported by the evidence are implied. See Retamco Operating, Inc., 278 S.W.3d at 337. These implied findings are not conclusive, however, when the appellate record includes the reporter's and clerk's records; in this situation, the implied findings may be challenged for legal and factual sufficiency in the appropriate appellate court. BMC Software Belg., N.V., 83 S.W.3d at 795.
We review a trial court's conclusions of law as a legal question. Id. The conclusion that personal jurisdiction exists over a defendant is a conclusion of law that we review de novo. Retamco Operating, Inc., 278 S.W.3d at 337.
The special appearance hearing conducted by the trial court here was nonevidentiary in the sense that no witnesses testified and no evidence was introduced at the hearing; counsel made Power Point presentations to the trial court.
Texas courts may assert in personam jurisdiction over a nonresident if (1) the Texas long-arm statute authorizes the exercise of jurisdiction, and (2) the exercise of jurisdiction is consistent with federal and state constitutional due-process guarantees. Moki Mac River Expeditions, 221 S.W.3d at 574.
The Texas long-arm statute sets out a nonexclusive list of activities that constitute doing business in Texas. See Tex. Civ. Prac. & Rem.Code Ann. § 17.042 (Vernon 2008); PHC-Minden, L.P. v. Kimberly-Clark Corp., 235 S.W.3d 163, 166 (Tex.2007); Guardian Royal Exch. Assurance, Ltd. v. English China Clays, P.L.C., 815 S.W.2d 223, 226 (Tex.1991). The broad language of section 17.042 extends Texas courts' personal jurisdiction "as far as the federal constitutional requirements of due process will permit." PHC-Minden, L.P., 235 S.W.3d at 166; Moki Mac River Expeditions, 221 S.W.3d at 575.
In addition to the long-arm statute, the exercise of in personam jurisdiction over a nonresident defendant must satisfy federal due process requirements. See Int'l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945); PHC-Minden L.P., 235 S.W.3d at 166; Moki Mac River Expeditions, 221 S.W.3d at 575. The exercise of personal jurisdiction over a nonresident defendant satisfies the due process requirements of the Fourteenth Amendment only when (a) the nonresident defendant has established minimum contacts with the forum state and (b) the exercise of jurisdiction comports with traditional notions of fair play and substantial justice. See Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475-76, 105 S.Ct. 2174, 2183-85, 85 L.Ed.2d 528 (1985); PHC-Minden, L.P., 235 S.W.3d at 166; Moki Mac River Expeditions, 221 S.W.3d at 575.
The focus of a due process, minimum contacts analysis is on the nonresident defendant's activities and expectations. Michiana Easy Livin' Country, Inc. v. Holten, 168 S.W.3d 777, 790 (Tex. 2005); Am. Type Culture Collection, Inc., 83 S.W.3d at 806. A nonresident defendant's contacts with a forum state can give rise to (a) general jurisdiction or (b) specific
General jurisdiction refers to personal jurisdiction over a nonresident defendant in a lawsuit in which the cause of action does not arise out of or relate to the nonresident defendant's contacts with the forum state. See, e.g., PHC-Minden, L.P., 235 S.W.3d at 168. General jurisdiction is present when the nonresident defendant's contacts in a forum state are continuous and systematic. Id. at 167-69. Usually, to be subject to general jurisdiction of the forum state, the nonresident defendant must be engaged in longstanding business there, such as marketing, shipping products, performing services, or maintaining one or more offices there. Id. at 168.
Specific jurisdiction refers to personal jurisdiction over a nonresident defendant in a lawsuit that arises out of or is related to the nonresident defendant's contacts with the forum state. Spir Star AG v. Kimich, 310 S.W.3d 868, 873 (Tex. 2010); Moki Mac River Expeditions, 221 S.W.3d at 576. When specific jurisdiction is asserted, the minimum contacts analysis focuses on the relationship between the nonresident defendant, the forum state, and the litigation. Moki Mac River Expeditions, 221 S.W.3d at 575-76; Guardian Royal Exch. Assurance, Ltd., 815 S.W.2d at 226. For a court to exercise specific jurisdiction over a nonresident defendant, two requirements must be met: (1) the nonresident defendant's contacts with the forum state must be purposeful; and (2) the cause of action must arise from or relate to those contacts. See Burger King Corp., 471 U.S. at 473-76, 105 S.Ct. at 2182-84; Spir Star AG, 310 S.W.3d at 873; Moki Mac River Expeditions, 221 S.W.3d at 579; BMC Software Belg., N.V., 83 S.W.3d at 796.
Purposeful contacts are key to a jurisdictional due process analysis. See Michiana Easy Livin' Country, Inc., 168 S.W.3d at 784; Guardian Royal Exch. Assurance, Ltd., 815 S.W.2d at 226-27. There are three parts to a purposeful availment inquiry: (1) only the nonresident defendant's contacts with the forum are relevant, not the unilateral activity of another party or a third person; (2) the contacts relied on must be purposeful rather than random, fortuitous, or attenuated; and (3) the nonresident defendant must seek some benefit, advantage, or profit by availing itself of the jurisdiction. See Moki Mac River Expeditions, 221 S.W.3d at 575; Michiana Easy Livin' Country, Inc., 168 S.W.3d at 784-85.
Specific jurisdiction is established only when the nonresident defendant's alleged liability arises from or is related to activity conducted within the forum. Moki Mac River Expeditions, 221 S.W.3d at 576; BMC Software Belg., N.V., 83 S.W.3d at 796. The "arises from or relates to" requirement lies at the heart of specific jurisdiction by defining the required nexus between the nonresident defendant, the litigation, and the forum state. Moki Mac River Expeditions, 221 S.W.3d at 579. In order for a nonresident defendant's contacts in a forum state to support an exercise of specific jurisdiction, there must be a substantial connection between those contacts and the operative facts of the litigation. Id. at 585.
Finally, in addition to the requirement of minimum contacts with the forum state, the exercise of personal jurisdiction
In determining whether the record before us establishes personal jurisdiction, we examine individually each Appellee's contacts with Texas and each of Moncrief Oil's claims against each Appellee. See, e.g., Kelly, 301 S.W.3d at 659-60 (analyzing claim for violation of Texas Trust Act and claim for fraud separately for jurisdictional purposes); Michiana Easy Livin' Country, Inc., 168 S.W.3d at 785 (explaining that only the defendant's contacts with the forum count, not the unilateral activity of another party or third person); see also Seiferth v. Helicopteros Atuneros, Inc., 472 F.3d 266, 274-75 (5th Cir.2006) (recognizing that specific jurisdiction is a claim-specific inquiry).
As to each Appellee, Moncrief Oil pleaded, "[Appellee] has done business in Texas (as defined in Texas Civil Practice & Remedies Code § 17.042). It is therefore subject to personal jurisdiction in this State." Moncrief Oil's live pleading then sets forth thirty-five paragraphs of factual statements, including allegations that during settlement negotiations in Fort Worth, Texas, relating to Moncrief Oil's federal lawsuit against Gazprom, Moncrief Oil shared "confidential information with Timothy Sutherland and Alexander Medvedev" (who were acting on behalf of Gazprom and Gazprom Export) based on representations by those individuals that they would keep the information confidential. Moncrief Oil alleged that the confidential information included "confidential details of Moncrief's joint venture with Occidental, in-depth market analysis of the North American midstream/pipeline market, and in-depth studies and assessments of existing and proposed re-gasification facilities located in North America and in the Gulf Coast area of the United States." Moncrief Oil further alleged that Gazprom scheduled a meeting with Occidental in California and threatened Occidental if it did not pressure Moncrief Oil to settle or end its federal litigation against Gazprom. And finally, Moncrief Oil alleged that Appellees used the confidential information obtained from Moncrief Oil to open their own LNG regasification facility in Houston, Texas, via an entity named GMT USA.
Based on these facts, Moncrief Oil pleaded causes of action for tortious interference with its Occidental joint venture, misappropriation of trade secrets, and conspiracy to tortiously interfere and to misappropriate trade secrets
The affidavits, deposition excerpts, and documentary evidence submitted to the trial court establish the following time line of Appellees' contacts with Moncrief Oil and with Texas. While the subject of the meetings and the conversations that occurred at the meetings are disputed, the fact that these contacts occurred is not disputed.
July 2004
2004 through early 2005
September 2004
September 22, 2004
June 7, 2005
October and November 2005
Three meetings occur:
February 2006
July 2006
April 3, 2008
Gazprom is a Russian company with its principal place of business in Russia. Gazprom's special appearance alleges that it is not a citizen nor a resident of Texas; does not maintain a registered agent in Texas; does not maintain a place of business in Texas; has no employees, servants, or agents in Texas; did not commit any statutory violation, breach of contract, or tort, in whole or in part, in Texas; has had no continuous or systematic contacts with Texas; and did not commit any acts that would put it on notice that it was subject to the jurisdiction of a Texas court. Gazprom's special appearance is verified by Krivorotov, Advisor to the Deputy Head of the Management Board of Gazprom.
As set forth above, Gazprom's contacts with Texas include extensive phone calls and emails to Moncrief Oil's Texas office concerning a proposed, but never consummated, business deal and meetings in October and November 2005 in Fort Worth and Houston, Texas, at which Richard Moncrief disclosed confidential information to Gazprom. Negotiating by phone and email with a single Texas resident about the possibility of doing business in Texas cannot itself constitute doing business in Texas for purposes of general jurisdiction. See, e.g., PHC-Minden L.P., 235 S.W.3d at 170-71 (holding contacts with Texas would not support general jurisdiction).
We overrule the portion of Moncrief Oil's second issue contending that general jurisdiction exists over Gazprom in Texas state courts.
We next address whether the Texas long-arm statute authorizes Texas jurisdiction over Moncrief Oil's claims against Gazprom for tortious interference with the Occidental joint venture and for misappropriation of trade secrets, whether—focusing on the relationship between Gazprom, Texas, and the litigation—Gazprom's contacts with Texas were purposeful and whether Moncrief Oil's alleged causes of action arise from or relate to those contacts. See Moki Mac River Expeditions, 221 S.W.3d at 579; BMC Software Belg., N.V., 83 S.W.3d at 796.
Concerning Moncrief Oil's tortious interference claim, the special appearance record conclusively establishes that any tortious interference with Moncrief Oil's Occidental joint venture that may have occurred happened in California. The meeting between Gazprom and Occidental's Todd Stevens at which Gazprom allegedly made threats that interfered with the business relationship existing between Occidental and Moncrief Oil occurred in California. Because the elements of this alleged tort purportedly occurred in California, not Texas, specific jurisdiction over this claim does not exist in Texas. See BMC Software Belg., N.V., 83 S.W.3d at 796-97 (holding specific jurisdiction did not exist in Texas for fraud and negligent misrepresentation claims when based on conversations and negotiations that occurred outside of Texas).
Moncrief Oil nonetheless points out that Gazprom's tortious interference with its Occidental joint venture was "directed toward" Texas and claims that it suffered damages in Texas. The Texas Supreme Court in Michiana Easy Livin' Country, Inc. rejected the "directed-a-tort-at-Texas" specific jurisdiction analysis. 168 S.W.3d at 790-92; see also Kelly, 301 S.W.3d at 661 (reversing court of appeals for applying directed-a-tort-at-Texas analysis and explaining, "we rejected the concept of directed-a-tort jurisdiction in Michiana."). The supreme court in Michiana Easy Livin' Country, Inc. noted that the directed-a-tort-at-Texas analysis shifted the focus from the relationship between the defendant, the forum, and the litigation to a focus on the plaintiff, the forum, and the litigation. 168 S.W.3d at 790. The supreme court noted that this analysis also confused the roles of judges and juries by equating the jurisdictional inquiry with the
The cases relied upon by Moncrief Oil in support of its directed-a-tort-at-Texas jurisdictional analysis were either decided before Michiana Easy Livin' Country, Inc. or are distinguishable on their facts. See, e.g., Retamco Operating, Inc., 278 S.W.3d at 333; see also Cent. Freight Lines Inc. v. APA Transp. Corp., 322 F.3d 376 (5th Cir.2003); Union Carbide Corp. v. UGI Corp., 731 F.2d 1186 (5th Cir.1984). Thus, we hold that the trial court properly granted Gazprom's special appearance concerning Moncrief Oil's tortious interference claim.
We overrule the portion of Moncrief Oil's second issue contending that the trial court possesses specific jurisdiction over Gazprom based on Moncrief Oil's tortious interference with a business relationship claim.
We next address whether specific jurisdiction exists over Gazprom concerning Moncrief Oil's misappropriation of trade secrets claim. The elements of misappropriation of trade secrets are (1) existence of a trade secret, (2) breach of a confidential relationship or improper discovery of a trade secret, (3) use of the trade secret, and (4) damages. IBP, Inc. v. Klumpe, 101 S.W.3d 461, 467 (Tex.App.-Amarillo 2001, pet. denied).
Gazprom claims that the information that Richard Moncrief disclosed at the meetings was not confidential and did not constitute trade secrets. But neither the trial court nor this court is permitted to determine the merits of Moncrief Oil's claims in making a jurisdictional determination. See Michiana Easy Livin' Country, Inc., 168 S.W.3d at 790-91. Moncrief Oil alleged in its petition and Richard Moncrief asserted in his affidavit that Moncrief Oil provided confidential trade secret information to Gazprom at various meetings with Gazprom, including the
Gazprom claims that it factually negated specific jurisdiction over Moncrief Oil's alleged misappropriation of trade secrets claim by proving that Moncrief Oil disclosed its alleged trade secret information to the U.S. Department of Energy and through Todd Stevens's testimony that a major oil company with the right connections could discover from public sources all of the information that Moncrief Oil claims constitutes trade secrets. These arguments by Gazprom are waiver arguments—that Moncrief Oil waived the allegedly secret nature of the information. Waiver is an affirmative defense. Tex.R. Civ. P. 94 (stating waiver is an affirmative defense); In re EPIC Holdings, Inc., 985 S.W.2d 41, 57 (Tex.1998) (orig. proceeding) ("Waiver is an affirmative defense."). An affirmative defense does not tend to rebut factual propositions asserted by a plaintiff, but rather it seeks to establish an independent reason why the plaintiff should not recover. Gorman v. Life Ins. Co. of N. Am., 811 S.W.2d 542, 546 (Tex.), cert. denied, 502 U.S. 824, 112 S.Ct. 88, 116 L.Ed.2d 60 (1991). Here, Gazprom claims that even if the information disclosed to it by Moncrief Oil does constitute trade secret information, Moncrief Oil nonetheless waived the privileged nature of the information because it disclosed the information to the U.S. Department of Energy and because the right inquiries to the right public entities could allegedly result in the discovery of the same information.
Moncrief Oil's pleading and Richard Moncrief's affidavit and deposition testimony allege that Gazprom "used" the trade secret information (the third element of Moncrief Oil's misappropriation of trade secrets cause of action) it obtained in Texas by setting up GMT USA in Houston,
Having determined that the Texas long-arm statute authorizes the trial court's exercise of jurisdiction over Gazprom concerning Moncrief Oil's misappropriation of trade secrets claim and that Gazprom has not factually negated Moncrief Oil's allegations of specific jurisdiction concerning this claim, we next address whether this exercise of jurisdiction by the trial court would be consistent with federal constitutional due-process guarantees. See Moki Mac River Expeditions, 221 S.W.3d at 574. As previously stated, the focus of a due process, minimum contacts analysis is on the nonresident defendant's activities and expectations. Michiana Easy Livin' Country, Inc., 168 S.W.3d at 790. There are three parts to a purposeful availment inquiry: (1) only the nonresident defendant's contacts with the forum are relevant, not the unilateral activity of another party or a third person; (2) the contacts relied on must be purposeful rather than random, fortuitous, or attenuated; and (3) the nonresident defendant must seek some benefit, advantage, or profit by availing itself of the jurisdiction. See Moki Mac River Expeditions, 221 S.W.3d at 575; Michiana Easy Livin' Country, Inc., 168 S.W.3d at 784-85.
Focusing on the relationship between Gazprom, Texas, and the litigation, we examine whether the contacts relied upon by Moncrief Oil are attributable to Gazprom, whether the contacts were purposeful, and whether Moncrief Oil's claim for misappropriation of trade secrets arises from or relates to those contacts. See Moki Mac River Expeditions, 221 S.W.3d at 579; BMC Software Belg., N.V., 83 S.W.3d at 796. As set forth above, the contacts Moncrief Oil alleges concerning its misappropriation of trade secrets claim are Gazprom's emails and phone calls to Moncrief Oil's Fort Worth, Texas, office and two trips by Gazprom to Texas for meetings with Moncrief Oil. Moncrief Oil alleges that confidential trade secrets were provided
Gazprom contends that its trips to Texas were for the purpose of discussing settlement of Moncrief Oil's federal lawsuit and thus were merely fortuitous and cannot as a matter of law be considered purposeful contacts with Texas.
Gazprom also argues that the alleged trade secret information disclosed by Moncrief Oil in Texas had been previously disclosed to Gazprom in Moscow and in Washington, D.C., and was only redisclosed unilaterally by Moncrief Oil in the Texas settlement conferences. Consequently, Gazprom argues that even if somehow a tort claim for misappropriation of trade secrets exists, no element of it initially occurred in Texas. We have located no authority for the proposition that in analyzing specific jurisdiction of a forum over a nonresident defendant for misappropriation of trade secrets, only the forum of the initial disclosure of trade secrets counts as a contact. The parties cite cases in which the initial disclosure of trade secret information did occur in the forum state, but these cases did not involve an allegation like Moncrief Oil's allegation here that the disclosure was ongoing "during the course of their ongoing discussions." See, e.g., Miller Yacht Sales,
Nonetheless, Gazprom is correct that its contacts with Texas must be purposeful and not merely random or fortuitous. See Michiana Easy Livin' Country, Inc., 168 S.W.3d at 784; Guardian Royal Exch. Assurance, Ltd., 815 S.W.2d at 226-27. Although we have rejected Gazprom's claims that its trips to Texas were fortuitous as a matter of law simply because settlement negotiations occurred in Texas and that its phone calls and emails to Texas were fortuitous as a matter of law simply because alleged trade secret information was repeated in Texas rather than initially disclosed in Texas, our rejection of these arguments that would render Gazprom's contacts fortuitous does not mean that there is no evidence or insufficient evidence that Gazprom's contacts were purposeful.
Gazprom argues that its contacts with Moncrief Oil were not purposeful because its communications with a single Texas resident that did not result in a venture, a contract, or any kind of business deal cannot constitute a purposeful contact with Texas. That is, Gazprom argues that negotiating to possibly do business with a single Texas resident and deciding not to do business with that resident cannot constitute doing business. Moncrief Oil counters that many courts have premised specific jurisdiction on a nonresident's contacts via phone and email when those contacts are combined with visits to the forum and when the plaintiff's claims arose from or related to those contacts. Moncrief Oil relies on Glencoe Capital Partners II, LP v. Gernsbacher, 269 S.W.3d 157, 165 (Tex.App.-Fort Worth 2008, no pet.), Fish v. Tandy Corp., 948 S.W.2d 886, 895 (Tex.App.-Fort Worth 1997, writ denied), and Citrin Holdings, LLC v. Minnis, 305 S.W.3d 269, 282-83 (Tex. App.-Houston [14th Dist.] 2009, no pet.).
The Texas Supreme Court in Michiana Easy Livin' Country, Inc. limited the viability of phone calls to a forum as constituting purposeful contacts with that forum. 168 S.W.3d at 791. The supreme court explained in Michiana Easy Livin' Country, Inc. that "changes in technology have made reliance on phone calls obsolete as proof of purposeful availment." Id. While Moncrief Oil is correct that courts have nonetheless continued in some circumstances to consider phone calls in a jurisdictional minimum contacts analysis, the facts of the cases cited by Moncrief Oil are distinguishable from the facts here for two main reasons. First, in Glencoe, Fish, and Citrin Holdings, the trial courts denied the nonresident defendants' special appearances. Because no findings of fact or conclusions of law were filed in Glencoe, Fish, or Citrin Holdings, the appellate courts in those cases implied all findings necessary to support the trial courts' denial of each nonresident's special appearance if such findings were supported by the record. But here, the trial court granted Appellees' special appearances; because no findings of fact or conclusions of law were filed, we must imply all fact findings that are supported by the record in favor of Appellees. Second, in Fish and Citrin Holdings, the nonresident defendants executed contracts with Texas residents, and in Glencoe, the nonresident defendants
Moncrief Oil contends in its reply brief that the facts of this case are strikingly similar to the facts in Quantum Catalitics, LLC v. Vantage Point Venture Partners, No. H-07-2619, 2008 WL 5245298, at *4 (S.D.Tex. Dec. 15, 2008). The plaintiff in Quantum Catalitics alleged misappropriation of trade secrets by a nonresident defendant. The plaintiff pleaded that the nonresident defendant had "feigned an interest in investing in TSI" but "actually contacted TSI `for the purpose of wrongfully acquiring Plaintiffs' Trade Secrets.'" Id. at *4. In holding that it possessed specific jurisdiction over the nonresident defendant, the trial court noted that the nonresident defendant "essentially concedes as much by not challenging personal jurisdiction with regard to the state law claims," which included the misappropriation of trade secrets claim. Id. The trial court noted that the nonresident defendant's request for summary judgment on the state law claims was "an implicit admission of the court's jurisdictional authority" and "also a waiver of Defendant's due-process objection to the court's assertion of personal jurisdiction." Id. at *4 n. 35. Because the nonresident defendant in Quantum Catalitics implicitly admitted that the trial court possessed jurisdiction over it for purposes of the misappropriation of trade secrets claim and also waived any due process objection to the trial court's assertion of personal jurisdiction over it, that case is distinguishable from the present case in which Appellees have not made such an admission or waiver.
Moncrief Oil points to the two meetings Gazprom attended in Texas as constituting contacts in addition to Gazprom's telephone and email contacts with Texas. The affidavits, exhibits, and deposition excerpts attached to the special appearances and responses filed with the trial court contain conflicting statements on whether the purpose of Gazprom's trips to Texas was primarily to discuss settlement of the federal lawsuit or was also for the dual purpose of furthering a scheme to obtain trade secrets from Moncrief Oil to utilize in the opening of GMT USA. If Gazprom traveled to Texas primarily for the purpose of settlement negotiations in the federal lawsuit, then given Gazprom's activities and expectations, the location of Texas as the place for the meeting was simply random
Gazprom also argues that it did not seek any benefit, advantage, or profit by twice meeting with Moncrief Oil in Texas. Gazprom argues that it did not enjoy any benefit by "merely exchanging communications concerning a proposed Texas-based joint venture that Gazprom refused to join." Because we have upheld the trial court's implied finding of fact that Gazprom's contacts with Texas were not purposeful as required under the second prong of the purposeful availment analysis, we need not reach this argument by Gazprom, challenging the third prong of the purposeful availment analysis.
We overrule the remaining portion of Moncrief Oil's second issue contending that the trial court possesses specific jurisdiction over Gazprom based on Moncrief Oil's misappropriation of trade secrets claim.
Gazprom Export is a subsidiary of Gazprom with the exclusive right to export Russian natural gas outside the Russian Federation. It is a Russian company with its principal place of business in Russia. Moncrief Oil pleaded the same causes of action, specific jurisdiction facts, and contacts with Texas concerning Gazprom Export that it asserted concerning Gazprom. Gazprom Export admits that Timothy Sutherland was acting on its behalf at the Texas meetings where Moncrief Oil alleges that it disclosed trade secrets. Thus, our specific jurisdiction analysis concerning Gazprom is the same for Gazprom Export, and we adopt it and incorporate it here. For the same reasons that we held the trial court did not possess specific jurisdiction over Gazprom for purposes of Moncrief Oil's tortious interference claim and Moncrief Oil's misappropriation of trade secrets claim, we likewise hold the same for Gazprom Export. We overrule Moncrief Oil's first issue.
Gazprom Marketing & Trading, Ltd. is a United Kingdom corporation that markets natural gas for the Gazprom group of companies. While generally only the defendant's contacts with the forum are relevant, not the unilateral activity of another
Texas law presumes that two separate corporations are indeed distinct entities. BMC Software Belg., N.V., 83 S.W.3d at 798. For a parent company and its subsidiary to be fused for jurisdictional purposes, the plaintiffs must prove the parent company controls the internal business operations and affairs of the subsidiary. PHC-Minden L.P., 235 S.W.3d at 175. The degree of control the parent company exercises must be greater than that normally associated with common ownership and directorship; the evidence must show that the two entities cease to be separate so that the corporate fiction should be disregarded to prevent fraud or injustice. Id.
Moncrief Oil bore the burden of proving its allegation that Gazprom Marketing & Trading, Ltd. is the alter ego of or is fused with GMT USA. See, e.g., Capital Tech. Info. Servs., Inc. v. Arias & Arias Consultores, 270 S.W.3d 741, 749 (Tex. App.-Dallas 2008, pet. denied) ("The party seeking to ascribe one corporation's actions to another by disregarding their distinct corporate entities must prove this allegation."); Ramirez v. Hariri, 165 S.W.3d 912, 915 (Tex.App.-Dallas 2005, no pet.) (same). To meet this burden, Moncrief Oil points to the deposition testimony of John Hattenberger, the president of GMT USA. Hattenberger testified that GMT USA is funded solely by Gazprom Marketing & Trading, Ltd.; that Gazprom Marketing & Trading, Ltd. pays all salaries, business expenses, and overhead for GMT USA; and that GMT USA is essentially an "asset-less" company comprised of some furniture, computers, and cash loaned to it by Gazprom Marketing & Trading, Ltd. Gazprom Marketing & Trading, Ltd. points out that Hattenberger also testified that Gazprom Marketing & Trading, Ltd. did not exercise day-to-day control over the operations of GMT USA and that Keith Martin of GMT USA testified that GMT USA is an independent entity. Gazprom Marketing & Trading, Ltd. also argues that to the extent it did provide financial aid to GMT USA, it did so only during the start-up operations of GMT USA. Gazprom Marketing & Trading, Ltd. alleges that GMT USA is now operating and generating its own revenues.
In determining whether Hattenberger's deposition testimony pointed to by Moncrief Oil satisfied its burden of rebutting the presumption that Gazprom Marketing & Trading, Ltd. and GMT USA are separate entities, we look to whether they observed corporate formalities. See PHC-Minden L.P., 235 S.W.3d at 175. That is, we consider whether GMT USA's books and Gazprom Marketing & Trading Ltd.'s books are kept separate and whether transactions between the two are represented by appropriate entries in their respective books in the same way as if the two were wholly independent corporations. See PHC-Minden L.P., 235 S.W.3d at 172 (quoting and discussing the Supreme Court case of Cannon Mfg. Co. v. Cudahy Packing Co., 267 U.S. 333, 335, 45 S.Ct. 250, 251, 69 L.Ed. 634 (1925), and its holding that, although the nonresident defendant had dominated its subsidiary, immediately and completely, and had exerted
The record before us contains no evidence of the corporate formalities existing between Gazprom Marketing & Trading, Ltd. and GMT USA. The facts pointed to by Moncrief Oil — that GMT USA was initially funded solely by Gazprom Marketing & Trading, Ltd.; that Gazprom Marketing & Trading, Ltd. paid all salaries, business expenses, and overhead for GMT USA; and that GMT USA was essentially an "asset-less" company comprised of some furniture, computers, and cash loaned to it by Gazprom Marketing & Trading, Ltd.— do not necessarily mean that these two entities have disregarded corporate formalities existing between two separate entities. See PHC-Minden L.P., 235 S.W.3d at 172 (discussing the importance of a complete disregard of corporate formalities in the determination of whether two entities are fused for jurisdictional purposes); accord Ramirez, 165 S.W.3d at 916-17 (holding that inadequate capitalization of corporation is not sufficient, in and of itself, to justify piercing the corporate veil and asserting personal jurisdiction over shareholders). In light of the lack of this type of evidence in the record, we hold that the trial court did not err by refusing to impute the contacts of GMT USA to Gazprom Marketing & Trading, Ltd.
We overrule Moncrief Oil's fourth issue.
Moncrief Oil claims, alternatively, in its fifth issue that the trial court abused its discretion by denying Moncrief Oil's motion to compel the depositions of Alexander Medvedev and Boris Ivanov. Appellees contend that Medvedev's and Ivanov's depositions are unnecessary because Moncrief Oil has had ample time to conduct jurisdictional discovery and has deposed six persons—including every individual making a special appearance affidavit for Appellees and a representative of each Appellee. Appellees point out that the record before this court is over 1,700 pages and argue that Moncrief Oil has failed to demonstrate that any additional testimony from these two men would be material to the jurisdictional issue before the court.
We review a trial court's decision to deny jurisdictional discovery under an abuse of discretion standard. See Barron v. Vanier, 190 S.W.3d 841, 847 (Tex. App.-Fort Worth 2006, no pet.); see also Lamar v. Poncon, 305 S.W.3d 130, 139 (Tex.App.-Houston [1st Dist.] 2009, pet. denied). In determining whether the denial of jurisdictional discovery constituted an abuse of discretion, we consider as nonexclusive
Moncrief Oil alleges that Medvedev's and Ivanov's depositions are material. Moncrief Oil contends that Medvedev initiated the Texas meetings with Moncrief Oil and "lulled Moncrief [Oil] into the false assurance that it was safe [for Moncrief Oil] to share the information [with him]." Moncrief Oil's motion to compel these depositions alleged that Medvedev would provide testimony that Ivanov and Sutherland were acting on behalf of Gazprom in the California meeting and that Sutherland was acting on behalf of Gazprom at the meeting in Fort Worth. Moncrief Oil's motion alleged that Ivanov would provide testimony regarding his meeting with Occidental, "including the threat he made to Occidental and his proposal to eliminate Moncrief Oil from its joint venture with Occidental." Moncrief Oil alleges in its appellate brief that Ivanov was "at the center of the events in California that flowed from the tortious acts in Texas, the combination of which ultimately culminated in the destruction of Moncrief Oil's Texas-based joint venture with Occidental."
But Appellees point out that the jurisdictional evidence before the trial court already establishes that Medvedev attended the Texas meetings, that he attended on behalf of Gazprom and Gazprom Export, and that Ivanov attended the California meeting at the direction of Medvedev and on behalf of Gazprom. Appellees likewise point out that Moncrief Oil deposed other individuals present at these meetings — including Sutherland, Stevens, and Olson — and that Richard Moncrief attended the Texas meetings.
We hold that the trial court did not abuse its discretion by refusing to compel Medvedev's and Ivanov's depositions. Moncrief Oil does not allege or contend that the depositions of these two men would lead to the discovery of additional contacts with Texas. Instead, as set forth above, Moncrief Oil contends that the depositions are material because they would show the intentional, tortious nature of Appellees' Texas contacts. Moncrief Oil's contentions in this regard are fully set forth in the record before us, and the trial court could reasonably have concluded that Medvedev's and Ivanov's testimony on these issues—for jurisdictional purposes — would simply be cumulative. See, e.g., BMC Software Belg., N.V., 83 S.W.3d at 800-01 (holding trial court did not abuse its discretion by denying motion for continuance to permit more discovery before special appearance hearing); In re Weir, 166 S.W.3d 861, 864 (Tex.App.-Beaumont 2005, orig. proceeding) (explaining that trial court possesses discretion to limit scope of discovery to protect against cumulative or duplicative discovery).
We therefore overrule Moncrief Oil's fifth issue.
Having overruled Moncrief Oil's four issues and having determined that we need not address Moncrief Oil's issue challenging the special appearance granted for OAO Gazprombank, we affirm the trial court's special appearance rulings.