Opinion by Justice Lang.
This interlocutory appeal was filed by Adam C. Leonard following the trial court's denial of his special appearance in a lawsuit filed against him by his former employer, Salinas Concrete, LP ("Salinas"). Specifically, Salinas asserted claims against Leonard for breach of fiduciary duties during and after his employment, breach of written and oral contracts, quantum meruit, and tortious interference with an existing business relationship.
In his sole issue on appeal, Leonard contends the trial court erred by concluding he had sufficient minimum contacts with the State of Texas to warrant the exercise of personal jurisdiction over him. We conclude the trial court has personal jurisdiction over Leonard as to Salinas's claim for breach of a written contract, but lacks personal jurisdiction over Leonard as to Salinas's other claims. We (1) affirm the trial court's order as to Salinas's claim for breach of a written contract; (2) reverse the trial court's order as to Salinas's other claims and render judgment granting Leonard's plea to the jurisdiction as to those claims and dismissing them for want of jurisdiction; and (3) remand this case to the trial court for further proceedings consistent with this opinion.
The parties do not dispute that Salinas is a Texas limited partnership headquartered in Plano, Texas, and Leonard is an individual and a nonresident of Texas. In its May 8, 2014 original petition, Salinas asserted in part (1) the trial court has jurisdiction over Leonard because Leonard "purposefully availed himself of the privilege of conducting activities in the state of Texas and established minimum contacts sufficient to confer jurisdiction over [him]"; (2) "the assumption of jurisdiction over [Leonard] will not offend traditional notions of fair play and substantial justice"; (3) Salinas would show "the cause of action arose from or relates to the contacts of [Leonard] to the state of Texas, thereby conferring specific jurisdiction with respect to [Leonard]"
Further, in a section of the original petition titled "Summary of Claims," Salinas stated as follows:
Salinas asserted six claims based on those alleged facts: (1) "Breach of Fiduciary Duties: Operation of Competing Business While Employed By Plaintiff,"
Attached to Salinas's original petition was a copy of a six-page "Standard Employment Agreement" that states it was entered into between Salinas and Leonard (the "Agreement"). The Agreement is signed by Leonard, but not by Salinas. Each page bears the handwritten notation "8-6-09" and Leonard's handwritten initials. Additionally, the Agreement (1) states in paragraph 1 that Leonard agrees to "render exclusive and full-time services" at "Company's offices located at 1300 10th Street Plano TX 75074 and at such other locations as the Company may request"; (2) states in paragraph 2.1 that the term of Leonard's employment "shall begin on the date hereof, and shall end on May __, 2009"; (3) states in paragraph 8.6 that it "shall be governed by and construed according to the laws of the State of Texas applicable to agreements to be wholly performed therein and is enforceable in Dallas County, Texas"; and (4) contains non-compete, non-solicitation, and confidentiality provisions.
On June 30, 2014, Leonard filed a special appearance in which he objected to the trial court's jurisdiction over him. Leonard contended he "does not, and at all times relevant herein, has not, conducted business within the state of Texas" and "has no minimum contacts with the state of Texas sufficient for a Texas court to assert jurisdiction over him." Further, Leonard asserted, in part,
Attached to Leonard's special appearance was an affidavit made by him.
In its response to Leonard's special appearance, Salinas contended in part (1) "the parties' employment relationship began in 2006, when Leonard initiated contact with [Salinas] by calling its president, Osiel Salinas, `to talk to him about a job' with the company"; (2) after being hired by Salinas, Leonard "regularly conducted business in the State of Texas, placing orders with a Texas supplier and maintaining frequent and regular communications with [Salinas's] office in Texas"; (3) Leonard visited Salinas's Texas office on at least two occasions during his employment, once "for the purpose of meeting his coworkers" and once for a "superintendent meeting"; (4) also, during his employment, Leonard visited Texas to attend Osiel Salinas's birthday party and, on another occasion, attended a college football game in
Additionally, Salinas asserted Leonard had not met his burden to demonstrate that the exercise of jurisdiction over him would be unjust. Specifically, Salinas argued in part
Attachments to Salinas's response included, in part, excerpts from an October 9, 2014 deposition of Leonard in this case.
The trial court denied Leonard's special appearance without stating a basis for its ruling. No findings of fact and conclusions of law were requested or filed. This interlocutory appeal timely followed. See TEX. CIV. PRAC. & REM.CODE ANN. § 51.014(a)(7) (West 2015).
The question of whether a court has personal jurisdiction over a nonresident defendant is a question of law we review de novo. Moncrief Oil Int'l, Inc. v. OAO Gazprom, 414 S.W.3d 142, 150 (Tex. 2013) (citing Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007)); Kelly v. Gen. Interior Constr., Inc., 301 S.W.3d 653, 657 (Tex.2010). "When, as here, the trial court does not issue findings of fact and conclusions of law, we imply all relevant facts necessary to support the judgment that are supported by evidence." Moncrief Oil, 414 S.W.3d at 150.
Texas courts may exercise personal 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." Id. (citing Moki Mac, 221 S.W.3d at 574). The Texas long-arm statute provides in part that "[i]n addition to other acts that may constitute doing business, a nonresident does business in this state if the nonresident: (1) contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state." TEX. CIV. PRAC. & REM.CODE ANN. § 17.042(1) (West 2015). "The broad `doing business' language in Texas's long-arm statute allows the trial court's jurisdiction to `reach as far as the federal constitutional requirements of due process will allow.'" Kelly, 301 S.W.3d at 657 (quoting Moki Mac, 221 S.W.3d at 575). Personal jurisdiction is consistent with due process when (1) the nonresident defendant has established minimum contacts with the forum state and (2) the exercise of jurisdiction comports with traditional notions of fair play and substantial justice. Id.
A defendant establishes minimum contacts with a state when it purposefully avails itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws. Id. (citing Retamco
A nonresident's contacts can give rise to general or specific personal jurisdiction. Id. at 150. When specific jurisdiction is alleged, we focus on the relationship among the defendant, the forum, and the litigation. Id. Specific jurisdiction exists only if the alleged liability arises out of or is related to the defendant's purposeful activity within the forum. Id. at 150, 156 (citing Moki Mac, 221 S.W.3d at 573). "[F]or a nonresident defendant's forum contacts to support an exercise of specific jurisdiction, there must be a substantial connection between those contacts and the operative facts of the litigation." Id. "[B]ut-for causation alone is insufficient." Id. at 157 (citing Moki Mac, 221 S.W.3d at 585). "The operative facts are those on which the trial will focus to prove the liability of the defendant who is challenging jurisdiction." Kaye/Bassman Int'l Corp. v. Dhanuka, 418 S.W.3d 352, 357 (Tex.App.-Dallas 2013, no pet.) (citing Moncrief Oil, 414 S.W.3d at 156, 157). We analyze specific jurisdiction on a claim-by-claim basis, unless we are shown that all claims arise from the same contacts with Texas. Moncrief Oil, 414 S.W.3d at 150-51.
In addition to minimum contacts, due process requires the exercise of personal jurisdiction to comply with traditional notions of fair play and substantial justice. Id. at 154 (citing Retamco, 278 S.W.3d at 338). "If 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." Id. at 154-55. We undertake this evaluation in light of the following factors, when appropriate: (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 interstate judicial system's interest in obtaining the most efficient resolution of controversies; and (5) the shared interest of the several states in furthering fundamental substantive social policies. Retamco, 278 S.W.3d at 341.
"Our special appearance jurisprudence dictates that the plaintiff and the defendant bear shifting burdens of proof in a challenge to personal jurisdiction." Kelly, 301 S.W.3d at 658; see also TEX.R. CIV. P. 120a. The plaintiff bears the initial burden to plead allegations sufficient to confer jurisdiction. Kelly, 301 S.W.3d at 658. "Once the plaintiff has pleaded sufficient jurisdictional allegations, the defendant filing a special appearance bears the burden to negate all bases of personal jurisdiction alleged by the plaintiff." Id. The defendant can negate jurisdiction on either a factual or legal basis. Id. A defendant
As described above, Leonard asserts only one issue on appeal, challenging the trial court's "holding" that he "had sufficient minimum contacts with the State of Texas to warrant the exercise of personal jurisdiction over [him]." However, because the record does not show all of Salinas's claims arise from the same alleged jurisdictional contacts, we analyze specific jurisdiction on a claim-by-claim basis. See Moncrief Oil, 414 S.W.3d at 150-51.
We begin with Salinas's claim for "Breach of Written Contract: Non-Compete and Non-Solicitation Covenant." Leonard asserts in his appellate brief (1) "[m]erely contracting with a Texas company does not necessarily constitute `purposeful availment' for jurisdictional purposes"; (2) "[w]hen a nonresident lives and works outside of Texas, employment `by a company with its principal place of business in Texas is not sufficient to establish the requisite minimum contacts with Texas'"; and (3) a choice of law provision is not sufficient to confer jurisdiction, nor does it mean the parties voluntarily agreed to submit to the jurisdiction of that state. Further, Leonard argues that even if the Agreement were enforceable,
The authorities cited by Leonard in support of his argument include several cases in which this Court concluded the requirements for personal jurisdiction were not met. See Internet Advert. Grp., Inc. v. Accudata, Inc., 301 S.W.3d 383 (Tex.App.-Dallas 2009, no pet.); Rushmore Inv. Advisors, Inc. v. Frey, 231 S.W.3d 524 (Tex. App.-Dallas 2007, no pet.); Gustafson v. Provider HealthNet Servs., Inc., 118 S.W.3d 479 (Tex.App.-Dallas 2003, no pet.).
Salinas asserts in part (1) "[o]f his own volition, [Leonard] reached out to the president of [Salinas] in Texas to ask for a job"; (2) "Leonard executed an employment contract with [Salinas], a Texas entity" and "mailed the contract to Texas"; (3) the contract "expressly provided that Texas law would control and that venue exists in Dallas County, Texas" and "expressly contemplated performance in Texas"; and (4) "[d]uring his employment, Leonard regularly contacted Texas residents for business purposes." Thus, Salinas argues, (1) Leonard "deliberately affiliated himself with the Texas company, and it was entirely foreseeable that litigation related to his employment would occur in Texas" and (2) Salinas's breach of written contract claim is "substantially connected" to "purposeful" contacts of Leonard with Texas.
Mere employment by a Texas company is not, alone, sufficient to establish minimum contacts to support personal jurisdiction. See, e.g., Gustafson, 118 S.W.3d at 484. Nor does entering into a contract with a Texas company or including a Texas choice-of-law provision in a contract necessarily establish the requisite minimum contacts in Texas. Id. However, a contract may establish sufficient minimum contacts when considered against a backdrop of "prior negotiations and contemplated future consequences, along with the terms of the contract and the parties' actual course of dealing[.]" Burger King Corp. v. Rudzewicz, 471 U.S. 462, 478-79, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). Further, "even in instances where a contract was signed in another state, an out-of-state company with no physical ties to Texas still has minimum contacts with Texas when it is clear the company purposefully directed its activities toward Texas." Retamco, 278 S.W.3d at 340; see also Citrin Holdings, LLC v. Minnis, 305 S.W.3d 269, 281 (Tex.App.-Houston [14th Dist.] 2009, no pet.) ("It is reasonable to subject a nonresident defendant to personal jurisdiction in Texas in connection with litigation arising from a contract specifically designed to benefit from the skills of a Texas resident who performs contractual obligations in Texas.").
The record does not show Leonard specifically addressed section 17.042(1) in the trial court, nor does he do so on appeal. See TEX. CIV. PRAC. & REM.CODE ANN. § 17.042(1) (nonresident does business in Texas if he "contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state"). Further, unlike the case before us, none of the cases cited by Leonard involve a nonresident initiating contact with a Texas company to inquire about employment and signing an employment agreement with provisions respecting performance and enforceability in Texas. See Internet Advert. Grp., 301 S.W.3d at 390 (alleged contacts did not demonstrate personal availment where nonresident did not reach out to Texas company, but rather was contacted by Texas company, and contract
Additionally, because specific jurisdiction is at issue, we must determine whether there is a substantial connection between Leonard's forum contacts described above and the "operative facts" of Salinas's breach of written contract claim. See Moki Mac, 221 S.W.3d at 585; see also Moncrief Oil, 414 S.W.3d at 150, 156. In doing so, we employ the "framework" established by the supreme court in Moki Mac. See Moncrief Oil, 414 S.W.3d at 156-57 (citing Moki Mac, 221 S.W.3d at 585). In Moki Mac, a Texas teenager, Andy, fell to his death in Arizona while on a hike supervised by a Utah-based company, Moki Mac River Expeditions. Moki Mac, 221 S.W.3d at 573. His parents, Charles and Betsy Drugg, filed suit against the company in Texas for wrongful death, maintaining the claim arose from misrepresentations in documents the company mailed to them in Texas as well as the company's other Texas contacts. Id. at 573, 576. The trial court denied Moki Mac's special appearance and the court of appeals affirmed on the basis of specific jurisdiction, concluding the Druggs' misrepresentation claim arose from, and related to, Moki Mac's purposeful contacts with Texas. Id. at 573. The supreme court disagreed. Id. The supreme court stated in part,
Id. at 585; see also Moncrief Oil, 414 S.W.3d at 156-57 (applying Moki Mac "framework" in determining whether "substantial connection" existed between defendant's alleged forum contacts and operative facts of litigation); Proctor v. Buell, 293 S.W.3d 924, 932 (Tex.App.-Dallas 2009, no pet.) (same).
As described above, Salinas asserted in its breach of written contract claim that Leonard breached "non-compete and non-solicitation covenants" in the Agreement by "engaging in a competing concrete foundation business and soliciting competing business from the Company's customers" during and after his employment with Salinas and "engaging in work for Salinas Concrete's largest customer after he, in 2013, had reaffirmed his commitment to comply with the non-compete and non-solicitation covenants." Although the record does not show that any of the work allegedly engaged in by Leonard's "competing
Further, as described above, due process requires the exercise of personal jurisdiction to comply with traditional notions of fair play and substantial justice. See Moncrief Oil, 414 S.W.3d at 150-51. In the trial court, Leonard's entire argument respecting this requirement was his assertion that the trial court's exercise of jurisdiction over him "would offend traditional notions of fair play and substantial justice and would violate defendant's due process rights." Additionally, on appeal, Leonard contends as follows:
In addition to its assertions in the trial court described above, Salinas argues on appeal (1) "Texas has a significant interest in providing a convenient forum in which its residents may seek redress for wrongs committed by nonresidents, especially where the parties have agreed that Texas law will govern the dispute, as they have here"; (2) any travel burden to Leonard is "marginal"; and (3) "[t]here are likely to be at least as many witnesses who reside in Texas as there are witnesses who reside in Louisiana."
Even assuming without deciding that Leonard's arguments asserted for the first time on appeal are to be considered by this Court, we cannot conclude Leonard has satisfied his burden to present "a compelling case that the presence of some consideration would render jurisdiction unreasonable." Shelter Mut. Ins. Co., 366 S.W.3d at 864; see also Retamco, 278 S.W.3d at 341 (describing five factors to be considered in evaluating compliance with notions of fair play and substantial justice). "In multi-state disputes, someone will always be inconvenienced, and this argument is frequently rejected as a basis for denying personal jurisdiction." Tabasso v. BearCom Grp., 407 S.W.3d 822, 828 (Tex. App.-Dallas 2013, no pet.); see also Moncrief Oil, 414 S.W.3d at 155 ("Distance
Salinas's remaining five claims are as follows: (1) "Breach of Fiduciary Duties: Operation of Competing Business While Employed By Plaintiff," (2) "Breach of Fiduciary Duty: Post-Employment Use of Plaintiff's Confidential Information," (3) "Breach of Oral Contract," (4) "Quantum Meruit," and (5) "Tortious Interference With Existing Business Relationship." According to Leonard, (1) even if it were true that he violated fiduciary duties owed to Salinas by operating a competing business while employed by Salinas, "that conduct would have occurred in Louisiana, not Texas" and "[Salinas] has presented no evidence ... that [Leonard's] breach of fiduciary duty is related to any activity in Texas"; (2) "[Salinas] has not alleged, and has offered no evidence, that Leonard solicited any customers in Texas or used Salinas's trade secrets to perform concrete work in Texas" and therefore "Leonard's alleged liability for post-employment use of confidential information does not arise from and is not related to activity conducted by Leonard within Texas"; (3) even if Salinas could prove the alleged oral contract exists, "it would be a Louisiana contract, negotiated and formed in Louisiana, and any breach would involve actions that occurred (or didn't occur) in Louisiana, not Texas"; and (4) the operative facts of Salinas's quantum meruit and tortious interference claims "occurred (if they occurred at all) in Louisiana, not Texas." Also, Leonard contends in his reply brief in this Court that "any argument that the plaintiff's claims would not have arisen `but for' Leonard's calling Osiel Salinas in 2007 and his signing of the alleged employment agreement, is foreclosed, and Texas law is clear that these contacts alone are clearly insufficient to support a finding of specific jurisdiction."
Salinas argues in part (1) the operative facts of all of its claims "arise directly out of Leonard's choice to reach out to Salinas Concrete to seek an employment relationship" and "are substantially connected to Leonard's purposeful solicitation of employment from the Texas company"; (2) "[p]ursuant to the parties' course of dealing and the contract he signed, [Leonard's] duties were required to be performed in Texas"; (3) Leonard "had regular substantial contacts with Texas throughout his employment"; (4) "[t]he underlying claim that Leonard wrongfully used confidential information and trade secrets is substantially connected to the fact that he received that information from Salinas Concrete's Texas office pursuant to the contract he signed, and he used it with knowledge that doing so would harm Salinas Concrete in Texas"; and (5) because "[p]art of the consideration for [the alleged oral agreement between the parties] was for Salinas Concrete to contact a Texas company and to arrange a supply agreement involving continuous and systematic economic activities for Leonard," the operative facts of Salinas's claim for breach of oral contract "are substantially connected to Leonard's contacts with Texas."
The record does not show that any of the five claims in question is specifically
Further, even assuming without deciding that Leonard's phone call to Salinas about employment, subsequent employment, and contact with Texas residents for business purposes during his employment established minimum contacts with Texas, our analysis leads us to conclude the relationship between those alleged contacts and the operative facts of the five claims in question is "too attenuated to satisfy specific jurisdiction's due-process concerns." Id. at 588; see Proctor, 293 S.W.3d at 932. Specifically, the operative facts of Salinas's claims for breach of fiduciary duties and tortious interference with a business relationship "concern principally" Leonard's use of confidential information and trade secrets in his work solely in Louisiana. See Moki Mac, 221 S.W.3d at 585; see also Moncrief Oil, 414 S.W.3d at 156-57; Proctor, 293 S.W.3d at 932. In addition, there is no evidence in this record that any confidential information or trade secrets were divulged or transmitted to Leonard in Texas. This is the opposite of Moncrief Oil where the delivery of alleged trade secrets on a disk to defendant Gazprom at a meeting in Houston was the jurisdictional connection to Texas that was substantially related to the focus at trial of the proof of Gazprom's liability for misappropriation of trade secrets. See Moncrief Oil, 414 S.W.3d at 153-54. As to Salinas's claims for breach of oral contract and quantum meruit, Salinas asserts Osiel Salinas's phone call from Louisiana to Suncoast's Houston office after Leonard's employment ended was made at Leonard's request and resulted in favorable pricing for Leonard with Suncoast. However, the operative facts of those claims "concern principally" Leonard's alleged failure to pay Salinas a fixed fee for certain jobs performed by Leonard in Louisiana and/or compensate Salinas for the "valuable service" it provided by helping Leonard secure favorable pricing for supplies used to perform jobs in Louisiana. See Moki Mac, 221 S.W.3d at 585; see also Moncrief Oil, 414 S.W.3d at 156-57; Proctor, 293 S.W.3d at 932.
In support of its argument that the operative facts of the five claims in question are "substantially connected" to contacts of Leonard with Texas, Salinas cites three cases that it contends involved contacts "directly analogous" to the alleged contacts of Leonard. See Tabasso, 407 S.W.3d at 822; Murray v. Epic Energy Res., Inc., 300 S.W.3d 461 (Tex.App.-Beaumont 2009, no pet.); Billingsley Parts & Equip., Inc. v. Vose, 881 S.W.2d 165 (Tex. App.-Houston [1st Dist.] 1994, writ denied). However, those cases are distinguishable.
Billingsley involved a lawsuit filed by a Texas corporation, Billingsley Parts and Equipment ("Billingsley"), against a former sales representative, Jean Vose. See 881 S.W.2d at 167. Vose placed a phone call from Illinois to Billingsley's Texas office to inquire about a certain product sold by Billingsley. Id. Subsequently, Billingsley sent a sales manager from Texas to Illinois to meet with Vose and show her
During her tenure with Billingsley, Vose placed orders by mail and by telephone calls to Billingsley's Texas office and was paid commissions by checks drawn on a Texas bank. Id. She did not go to Texas or make any sales in Texas. Id. Less than a year after signing the employment contract, Vose resigned and started her own business. Id. at 168. Billingsley sued Vose in Texas. Id.
The trial court sustained Vose's objection to personal jurisdiction and dismissed the lawsuit. Id. On appeal, Billingsley argued (1) "Vose purposely sought to profit from a transaction consummated in Texas"; (2) "by virtue of the contract, [Vose] had a substantial economic relationship with Texas"; and (3) "Vose had fair warning that she might be subject to suit in Texas because she initiated the contact with the Texas company." Id. The court of appeals reversed. Id. The court of appeals stated in part "Vose's only contacts with Texas were those related to the contract under litigation" and "[i]f Texas has jurisdiction over Vose, it is under the concept of specific jurisdiction, because this cause of action arises from Vose's contract of employment with Billingsley." Id. at 169. The court of appeals concluded Vose's contacts were sufficient to give Texas courts specific jurisdiction over her because (1) Vose made the initial contact with the Texas company; (2) Vose signed and mailed a written contract to Texas to be executed in Texas; (3) the contract provided that it was to be governed by Texas law and was performable in Texas; and (4) Vose sent orders to Texas and received and cashed checks drawn on a Texas bank. Id. at 169-70.
We note that Billingsley was decided more than a decade prior to the Texas Supreme Court's conclusion in Moki Mac that "for a nonresident defendant's forum contacts to support an exercise of specific jurisdiction, there must be a substantial connection between those contacts and the operative facts of the litigation." See Moki Mac, 221 S.W.3d at 585. Moreover, the appellate court in Billingsley did not specifically describe the claims asserted. See Billingsley, 881 S.W.2d at 169. Thus, it is not clear that Billingsley involved any claims other than breach of the written contract signed by Vose. Further, several of the contacts described by the court of appeals in Billingsley as supporting jurisdiction pertained specifically to the written contract. By contrast, Salinas's claim for breach of a written contract is not one of the claims in question in this part of our analysis. We cannot agree with Salinas that Billingsley is instructive as to Salinas's claims in question.
In Murray, a Texas employer, Epic Energy Resources, Inc. ("Epic"), sued a non-resident former employee, Patrick Murray, asserting claims for breach of non-disclosure and non-competition provisions in a written employment contract, misappropriation of trade secrets, breach of fiduciary duty, and tortious interference with existing and prospective contracts. See 300 S.W.3d at 465-66. The written employment contract between Epic and Murray contained a choice of law provision that
Following his termination, but prior to Epic filing suit, Murray demanded arbitration in Texas pursuant to the arbitration provision in the employment contract. Id. After the lawsuit was filed, Murray filed a special appearance. Id. at 466. Epic contended the trial court had specific jurisdiction over Murray because Murray (1) negotiated the terms of his employment with Epic's representatives in Texas; (2) entered into an employment agreement with a Texas resident; (3) agreed that Texas law governs the agreement; (4) traveled to Texas several times during his seven months of employment with Epic; (5) regularly reported to and worked under the direction of Epic employees in Epic's Texas office; and (6) demanded arbitration in Texas. Id.
The trial court denied Murray's special appearance and abated the pending arbitration proceedings between Murray and Epic. Id. at 468. Murray filed an interlocutory appeal, as well as a petition for writ of mandamus respecting the arbitration proceeding. Id. The court of appeals concluded Murray's pre-suit demand for arbitration did not constitute an appearance in the suit later filed by Epic, but Murray's numerous contacts with Texas required affirmance of the denial of Murray's special appearance. Id. at 470.
The opinion in Murray illustrates contacts with Texas that are unlike those in the case before us. See id. The court of appeals in Murray listed several contacts with Texas, including Murray's (1) entering into an employment agreement with a company located in Texas; (2) agreeing to terms that provided that Texas law would govern "disputes arising from the agreement" and that certain disputes pertaining to the agreement would be settled by arbitration in Montgomery County, Texas; and (3) traveling to Texas on several occasions during his employment to meet with clients or attend management meetings. Id.
In its analysis, the court of appeals (1) stated that the choice of law provision governing "disputes arising from the agreement" was a "significant factor," (2) considered the requirement for arbitration significant in that it was mentioned twice (once as to the fact that the arbitration provision would be governed by Texas law and again as to arbitration being required to take place in Montgomery County, Texas), and (3) noted that one of the purposes of Murray's several trips to Texas was "to meet with clients." Id. Of course, in the case before us, there is no arbitration provision, the choice of law provision does not address "disputes arising from the agreement," and there is nothing in the record showing visits by Leonard to Texas "to meet with clients." Murray is instructive, but distinguishable.
Finally, Tabasso involved a lawsuit filed by a Texas employer, BearCom Group, Inc. ("BearCom"), against a former employee, Michael Tabasso, a Pennsylvania resident. See 407 S.W.3d at 825. During his employment by BearCom, Tabasso was based out of Pennsylvania and was in charge of a sales region that did not include Texas. Id. As part of his employment, Tabasso sent and received shipments from Texas and visited Texas on several occasions for training and other
The claims pleaded by BearCom against Tabasso included breach of fiduciary duty, misappropriation of trade secrets and confidential information, violations of the Texas Theft Liability Act, conversion, tortious interference with contracts and business relations, and unfair competition. Id. at 827. Specifically, BearCom pleaded in part that Tabasso (1) was involved in all aspects of BearCom's business; (2) had extensive contact with BearCom's customers and virtually unlimited access to BearCom's confidential information; (3) frequently requested and received phone and radio equipment from BearCom in Texas; (4) wrongfully appropriated and converted some of that equipment along with BearCom's confidential information; (5) communicated with, contracted with, and sent product to a vendor service center in Texas; and (6) provided rental shipments to customers in Texas. Id. Additionally, BearCom produced evidence that included (1) email correspondence between Tabasso and Texas customers contracting for services and (2) contracts between Tabasso and Texas customers. Id. at 828.
Tabasso filed a special appearance, which was denied by the trial court. Id. at 826. The only evidence offered with that special appearance was an affidavit by Tabasso, which the trial court found "not credible in light of the record." Id. On appeal, this Court affirmed. Id. This Court stated in part (1) "[b]ecause the crux of the underlying litigation involves Tabasso's contacts with BearCom and BearCom's customers based in Texas, we conclude BearCom pleaded sufficient facts to bring Tabasso within the Texas longarm statute for [the claims brought by BearCom]" and (2) it then became Tabasso's obligation to negate jurisdiction, which he did not do. Id. at 827-28.
Unlike the case before us, Tabasso involved claims based on the defendant improperly providing services in Texas to customers located in Texas. We cannot agree with Salinas that Tabasso is instructive as to the case before us.
On this record, we conclude the Texas contacts of Leonard alleged by Salinas are not sufficiently related to the operative facts of Salinas's five claims in question to sustain the exercise of specific jurisdiction over Leonard as to those claims. See Moki Mac, 221 S.W.3d at 588. Therefore, we decide in favor of Leonard as to the portion of his issue challenging personal jurisdiction respecting Salinas's claims for (1) "Breach of Fiduciary Duties: Operation of Competing Business While Employed By Plaintiff," (2) "Breach of Fiduciary Duty: Post-Employment Use of Plaintiff's Confidential Information," (3) "Breach of Oral Contract," (4) "Quantum Meruit," and (5) "Tortious Interference With Existing Business Relationship."
We conclude the trial court properly denied Leonard's special appearance as to Salinas's claim for breach of a written contract, but erred by denying the special appearance as to Salinas's remaining claims. We decide Leonard's issue partly in his favor and partly against him.