James W. Trenz and Terrane Associates, Inc. v. Peter Paul Petroleum Company and Posse Energy, Ltd.
388 S.W.3d 796
Tex. App.2012Background
- Trenz, a nonresident of Texas, owns Terrane Associates, a Delaware corporation with principal place of business outside Texas.
- ROC, a joint venture involving Trenz and Rupe Oil Company, operated Oklahoma wells for Peter Paul Petroleum and included a ten percent reversionary interest to ROC after payout.
- Oklahoma litigation resolved disputes, awarding Trenz and Rupe each a one-half share of the ten percent reversionary interest.
- Peter Paul filed a declaratory judgment in Texas about Trenz’s rights and obligations regarding the reversionary payout and a 1997 calculation agreement.
- Trenz filed a Rule 120a special appearance; the trial court overruled it, and Trenz appealed via interlocutory review.
- The court held Trenz waived his personal-jurisdiction challenge and that the local-action-doctrine argument fell outside the scope of the interlocutory appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Trenz waive personal jurisdiction challenge by noncompliant hearing sequence? | Trenz waived by obtaining non-jurisdictional hearings first. | Trenz complied with Rule 120a; implied denial of special appearance foreclosed waiver. | Waiver found; personal jurisdiction challenge overruled. |
| Whether the trial court’s subject-matter jurisdiction is affected by the local-action doctrine. | Local-action doctrine controls adjudication of out-of-state real-property interests in Texas. | Doctrine not jurisdictional; Texas in personam action not barred by doctrine; appeal scope limited. | Local-action-doctrine challenge is outside the scope of 51.014(a)(7) interlocutory review. |
| Whether Trenz’s local-action challenge falls within §51.014(a)(7) interlocutory review. | Issue is properly before court as challenge to personal jurisdiction. | Local-action challenge is not within the express scope of §51.014(a)(7). | Not within §51.014(a)(7); appeal limited to denial of the special appearance. |
| Does Rule 120a require strict compliance and preclude waiver when other motions are heard before ruling? | Strict compliance evidenced by timely hearing requests and ruling on jurisdiction. | Hearing on other motions before ruling on special appearance constitutes waiver. | Strict compliance required; waiver occurred due to prior non-jurisdictional hearings. |
Key Cases Cited
- Reata Const. Corp. v. City of Dallas, 197 S.W.3d 371 (Tex. 2006) (personal jurisdiction can be waived by general appearance or failure to object timely)
- First Oil PLC v. ATP Oil & Gas Corp., 264 S.W.3d 767 (Tex. App.—Houston [1st Dist.] 2008) (Rule 120a requires strict compliance; hearing sequence matters)
- Klingenschmitt v. Weinstein, 342 S.W.3d 131 (Tex. App.—Dallas 2011) (waiver by obtaining non-jurisdictional relief before ruling on special appearance)
- Milacron Inc. v. Performance Rail Tie, L.P., 262 S.W.3d 872 (Tex. App.—Texarkana 2008) (strict compliance with Rule 120a; pre-ruling hearings can cause waiver)
- Minucci v. Sogevalor, 14 S.W.3d 790 (Tex. App.—Houston [1st Dist.] 2000) (mere notice of hearing on related issues does not always waive special appearance)
- Silbaugh v. Ramirez, 126 S.W.3d 88 (Tex. App.—Houston [1st Dist.] 2002) (distinguishable; focus on whether motions were heard before ruling on special appearance)
- Dawson-Austin v. Austin, 968 S.W.2d 319 (Tex. 1998) (special-appearance timing and waiver considerations)
- Exito Elecs. Co. v. Trejo, 142 S.W.3d 302 (Tex. App.—Houston [1st Dist.] 2004) (defining general appearance under Rule 120a)
- Texas v. Smith, 219 S.W.2d 441 (Tex. 1949) (local-action considerations not applicable to this context)
