24 F.4th 491
5th Cir.2022Background
- Danziger & De Llano LLP, a Texas law firm, alleges a fee‑sharing arrangement with Ohio firm Morgan Verkamp, LLC and its members after referring multiple qui tam matters.
- Danziger claims it referred relator Michael Epp in 2007 and agreed to split fees (33% Morgan Verkamp, 33% Danziger, 34% pro rata), but Morgan Verkamp later represented Epp without informing Danziger.
- Morgan Verkamp emailed a fee agreement to Epp (not copying Danziger), filed suit for Epp in Pennsylvania, and obtained over $5 million in fees; Danziger seeks ~$2,133,333 for its share.
- Danziger sued in the Southern District of Texas asserting fraud, unjust enrichment, tortious interference with prospective relations, and breach of contract; defendants moved to dismiss for lack of personal jurisdiction.
- The district court dismissed for lack of personal jurisdiction; Fifth Circuit reviewed de novo (facts undisputed) and affirmed dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Specific jurisdiction for intentional torts (fraud, unjust enrichment, tortious interference) | Morgan Verkamp’s nondisclosure and emails injured Danziger in Texas, so specific jurisdiction exists | Conduct occurred outside Texas; effects-only contacts insufficient; only a reply to an unsolicited email was directed at Texas | No jurisdiction — defendant’s conduct did not meaningfully connect it to Texas; single unsolicited reply insufficient (Walden/Sangha) |
| Specific jurisdiction for breach of contract claim | Fee‑split agreement and negotiations with a Texas firm establish contacts tied to formation/breach | Contract centered and performed outside Texas; defendant did not perform or agree to perform in Texas; communications alone insufficient | No jurisdiction — contacts related to contract formation/breach were insufficient (Trois, Moncrief) |
| Applicability of cases like Wien Air, Trois, Streber | Those precedents show communications into Texas can establish jurisdiction for tort/contract claims | Those cases involved numerous, initiated, or targeted communications and other forum‑based contacts absent here | Wien Air/Trois distinguishable — here contacts were far fewer and passive, so they do not support jurisdiction |
Key Cases Cited
- Walden v. Fiore, 571 U.S. 277 (2014) (defendant’s intentional conduct must connect the defendant to the forum; mere injury to a forum resident is insufficient)
- Calder v. Jones, 465 U.S. 783 (1984) (effects test: intentional conduct targeting the forum and causing harm there can support jurisdiction)
- Sangha v. Navig8 ShipManagement Priv. Ltd., 882 F.3d 96 (5th Cir. 2018) (applies Walden: emails that merely affect a forum resident do not establish specific jurisdiction)
- Wien Air Alaska, Inc. v. Brandt, 195 F.3d 208 (5th Cir. 1999) (communications into forum that contain fraudulent misrepresentations can constitute purposeful availment)
- Trois v. Apple Tree Auction Ctr., Inc., 882 F.3d 485 (5th Cir. 2018) (conference‑call misrepresentations insufficient where contract formation/performance occurred outside forum)
- Central Freight Lines Inc. v. APA Transportation Corp., 322 F.3d 376 (5th Cir. 2003) (purposeful outreach and negotiations aimed at long‑term association with Texas support jurisdiction)
- Moncrief Oil Int’l Inc. v. OAO Gazprom, 481 F.3d 309 (5th Cir. 2007) (contracting with a Texas resident alone does not establish minimum contacts absent purposeful availment)
- Electrosource, Inc. v. Horizon Battery Techs., Ltd., 176 F.3d 867 (5th Cir. 1999) (wide‑reaching contacts and contemplated in‑forum performance can support jurisdiction)
- Wilson v. Belin, 20 F.3d 644 (5th Cir. 1994) (one unsolicited, uninitiated communication is insufficient to confer jurisdiction)
