American Refrigeration Company, Inc. v. Tranter, Inc.
02-15-00265-CV
| Tex. App. | Oct 13, 2016Background
- ARC, a Massachusetts corporation, contracted to install an ice-rink refrigeration system at Dartmouth College; REC (a Massachusetts designer) specified a Tranter heat exchanger.
- A Tranter heat exchanger was manufactured in Wichita County, Texas, shipped to RVS in Bryan, Texas, and then forwarded to New Hampshire; the system was installed in August 2011.
- The system failed in June 2012; Dartmouth alleged the exchanger was defective and demanded over $880,000 from Tranter, ARC, and RVS.
- Tranter sued ARC, RVS, and Dartmouth in Wichita County, Texas, seeking declaratory relief that Tranter was not liable and that no warranties existed; ARC filed a special appearance denying Texas personal jurisdiction.
- Evidence included ARC president Sirois’s affidavit denying Texas contacts and RVS president Jordan’s affidavit plus an order-acknowledgement and a record of 63 orders ARC allegedly placed with RVS from 2004–2015.
- The trial court denied ARC’s special appearance; the court of appeals reversed, holding Texas lacked personal jurisdiction over ARC and dismissed Tranter’s claims against ARC.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Texas has specific jurisdiction over ARC | Tranter: ARC contracted with RVS in Texas to purchase the heat exchanger, and performance in Texas ties the claim to Texas | ARC: ARC is Massachusetts-based, had no Texas operations or contacts with Tranter, and did not purposefully avail itself of Texas | No specific jurisdiction—ARC’s contacts (purchasing goods shipped F.O.B. Texas; payments) insufficient for minimum contacts |
| Whether Texas has general jurisdiction over ARC | Tranter: ARC’s repeated purchases (63 orders totaling ~$890,000) from RVS show continuous and systematic contacts | ARC: Regular vendor purchases alone do not establish continuous and systematic forum contacts; ARC lacks other Texas presence | No general jurisdiction—purchases from a Texas vendor do not alone support general jurisdiction |
Key Cases Cited
- Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569 (Tex. 2007) (describes plaintiff’s pleading burden and purposeful-availment framework)
- BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789 (Tex. 2002) (trial-court fact findings and standard for special-appearance review)
- Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777 (Tex. 2005) (nonresident status can satisfy defendant’s initial burden absent specific forum-directed acts)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985) (contract alone insufficient for jurisdiction without purposeful availment)
- Helicopteros Nacionales de Colombia v. Hall, 466 U.S. 408 (1984) (mere purchases from forum do not establish general jurisdiction)
- International Shoe Co. v. Washington, 326 U.S. 310 (1945) (minimum contacts and fair play due-process standard)
